Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1905-04-26
Monopoly of Traffic Across the
Isthmus of Panama No
Longer Tolerated
WILL BE NO DISCRIMINATION
All the Steamship Companies to be
Given Equal Opportunities to Ship
Across the lsthmus Secretary Taft
Writes a Letter Giving His Views
on the Question.

Writes Letter Giving Ills views
on the Question.
Washington, April 26. = Secretary
Taft has made a decision that is of
terests respecting the policy of the
government relative to the existing
monopoly of traffic across the isthmus
of Panama and the fixing Of rates over
the Panama railroad as bearing on the
existing rates on transcontinental trat-
fic. The publication of several inter
views recently with the secretary HIM
self, with President Shontz of the cam
al commission, and with Chief Engin-
lin the public mind on these subjects,
and the secretary concluded to pub
lish letter he has just written as the
best way of making known his own
views and purposes. In this letter he
makes it plain that there is to be no
| discrimination whatever between the
several steamship companies in hand
ling their business across the isthmus;
that he does not anticipate any con-
siderable effect upon the transconti-
mental traffic by the Encouragement of
Panama railroad rates, but that this
reimbursement will be had regardless OF
such effects. The letter is as follows:
april "a, 19O5-My Dear Mr.. Hook
err: 1 am in receipt Of your letter of
April 81 and have read it with inter-
est. The policy of the government In
managing the Panama railroad is to
charge such rates as will pay for the
carriage of the goods across the 18TH
mus a reasonable return on the in
vestment of the government and moth
ing more. 1t will permit no discrim-
nation against or in favor of any OF
the connecting steamship lines. 1t may
be that this policy will affect the
transcontinental rates as to those
classes of freight that can stand the
isthmus trip, fayorably for the ship
per. However, Mr.. Wallace, our chief
engineer and railroad manager of
experience, thinks that the proposed
changes will not have much influence
on transcontinental rates, because he
thinks that but a small proportion of
that which goes to make up transcon-
tinental freight can be carried by the
isthmus. The long trip and the fact
that the merchandise carried is to be
considerable period in the tropics
exclude the possibility of carrying
manv kinds.
90" Panama Railroad Company
owns three steamships, which play be-
q shall
make the rates upon these ships as
reasonable compensation for the
carriage and the investments. We
shall run them merely for the pur-
pose of preventing combination to
raise, the rates for the delivery of ma
terial for the construction of the canal
from the United States to the 18TH
mus.
Relation is Only Indirect.
"The government is not running and
doese not expect to run a line between
New York and San Francisco or be-
tween San Francisco and New York,
hence the relation of it's policy to trans
continental rates is only indirect. The
policy Of the Panama Railroad Com
pany heretofore, in view of the owner
ship of the three ships and the docks
at Colon and it's resulting ability to ex-
clude from New York and Colon bus
mess any other steamship line, has
been to monopolize the trade between
New York and Panama on the one side,
while it's arrangement for exclusive
thru billing between New York and
San Francisco with the Pacific Mail
Steamship Company produced mon
opoly for the Pacific Mail trade on the
other side between Panama and San
Francisco on the north and a monopoly
for the Gillian 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 for tn.
purpose of affecting railroad or ocean
rates, transcontinental or otherwise. 1t
was for the purpose Of acquiring an
instrument with which to construct
the canal, an instrument absolutely
indispensable to the accomplishment of
our purpose within reasonable time.
The incident that we must hold the
railroad under a franchise requiring
impose upon us the obligation to do
what we can to make just rates and
prevent discrimination, and this we
shall do. If this adjusts conditions
we shall be very glad. If it does not,
it will not be in our power to do more.
Can Make No Predictions.
"The effect of changes in rates and
trade conditions is so elusive that it is
hardly safe to make a prediction as to
the result One should study the local
conditions which prevail at Panama
and at the many ports between San
Francisco, in Mexico and Central Am
erica, and should estimate the exact
operation of our coastwise laws which
prevent the intervention of foreign
shipping in the trade via the isthmus
between San Francisco and New York.
before expressing an opinion as to the
effect Of the governments operation of
the Panama railroad upon the trade
between our east and west coasts. An
attempt has been made heretofore to
establish an American line competing
with the Pacific Mail Steamship Com
pany between San Francisco and Pam
ma Railway Company 1t proved to be
a disastrous failure and was therefore
followed by renewal of the discrim-
mating contract which is to terminate
in July next. It Is possible that the
time is now ripe for the establishment
,1-It Do.