The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1905-04-26
..s.s..on 10 vniy Indirect.

ss~r0tsSn 10 OHty ibdiFCSts
THE government is not running and
does not expect to run a line between New
York and San Francisco, or between San
f. ancisco and New York. hence the re-
lation of its policy to continental
rates is only indirect. The policy of the
Panama Railroad company hereafter. in
view of it's ownership of the three ships
and the docks at Colon, and it's resulting
ability to exclude from New York and Co
lor business any other steamship line has
been to monopolize the trade between
New York and Panama on the one side.
while its arrangements for exclusive
through billing between New York and
San Francisco with the Pacific Mail
Steamship company, produced monopoly
for the Pacific mail trade on the other
side between Panama and san francisco
on the north. and monopoly for the
Chilean and Pacific Steamship companies
from Panama to the south SO far as the
action of the Panama Railroad company
can break up the monopolies, it is being
taken.
..The governments acquisition of the
railroad line was not primarily Tor the
purpose of affecting railroad or ocean
rates. trans-continental or otherwise. IL
was for the purpose of acquiring an m
strument absolutely indispensable TO the
ACCOMPLISHMENT of our purpose within
reasonable time. The incident that we
must hold the railroad under franchise
recurring us to do a commerclal business
is what imposes upon us the opilgatioh
n do what we can to make JUST rates
and prevent Discrimination, ana inns We
shall do. If this ameliorates cohul'io .s
T,,o sba1i he very glad If it does not,
IL will be in our power to do no more
Hard to Make Prediction.
.srbe effect of changes in rate and trace
conditions is 50 elusive that II Is haluiy
safe to make prediction as 10 the result
One should study the local cohui'io .'s
which nreVail at Panama, and at the
,,a,y norris between San Francisco, IN
Mexico and Central America, and should
estimate the exact observance OF our
coastwise laws, which prevents the inter
vention of foreign shipping in the traae
hv the isthmus between san Francisco
ard New york, before expressing am opln-
ion as to the effect OF the governments ,
oneration of the Panama railroad upon
the trade between our east anu west
coasts. An attempt has been mace here-
tofore to establish an American ille coi'i-
netting with the Pacific Mail line between
ran francisco and Panama. with the as
sistance of the Panama Railroad conf
n.rv II nroved to be disastrous laii-
IRE and was therefore followed by re-
newal of the discriminating contract
which Is TO terminate in July next. 1t is
nossible that the time is now ripe Tor
the establishment of American compeu-
lion with the Pacific Mail between san
FRANCISCO and Panama. Certainly the
government in operating the Panama rail-
road will do nothing to hinder 1t. Never
theless it is possible that the position OF
advantage that the Pacific Mail has with
resnect to Mexican and Central American
trade and its ownership of dock at Co
ion NAV enable II to establish lines on
both sides. which will do all the through
business and fix the rates without en-
loving any discrimination in its favor
Nv the Panama railroad IF so, the gov
eminent could not prevent this except by
running line from Panama to San Fran
cisco for the purpose. which 1T cannot
do.
"Mr. Shonts could hardly have been
correctly reported in the interview you
send me because he fully agrees with the
nolicv Of the government as I have out
lined it above.
SHOULD YOU have any criticisms to make
upon It. my dear Mr.. Hooker. 7 should
he glad to hear from Won. verv sincerely
yours VIM. Vt. TAFT.
'sNr James Hooker. chairman executive
committee the Receivers and Shippers
Association company Of Cincinnati.
"uInicn Trust building. Cincinnati. Q"