The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1905-07-11

one of the principal reasons for UNDER
taking this great enterprise. II the United
states Is justified in expending a large
amount of money for the construction Of
a canal for the benefit of commerce. then
1t is justified. pending the construction of
the canal, in operating this railroad for
the same purpose. And since It is neces-
should be improved so as to enable 1t to
handle commerce in the most efficient
manner.
II is estimated by the engineers that
II Will be from ten to fifteen years be-
fore the canal can be opened for use
and in the meantime the railroad must
perform. In so far as a railroad can. the
commercial functions Of the canal The
operation of this railroad is no more in
competition with private enterprise than
the construction and operation of the
canal are in competition with private en-
terprise; and IL products can be trans
ported between the Atlantic and Pacific
coasts at less cost by this line than by
any other, then commerce should receive
the benefit of this route.
Steamship Connection.
Heretofore the Panama railroad has
formed its steamship connections with a
view wholly to the financial interests of
that corporation. 1t therefore entered into
a
company with view of making what it
considered the most profitable traffic al
lance ON the Pacific coast. On the At
lantic side 1t has maintained for its own
steamships monopoly of business between
the United States and Colon, evidently
because it thought this would be the
most profitable policy for its stockholders.
1t Is the common opinion, however, that
Ii traffic had been invited from compett-
steamship or sir ba
railroad properly equipped and its facili-
ties improved and enlarged, 1t would have
handled a much larger and more profit
able business.
1t appears that over 100000 tons of Ha-
waiian sugar are unloaded annually from
ships at San Francisco and transported
across the continent to Galveston by rail-
road, and reshpped by the steamer to
New York. If proper facilities existed
on the isthmus for handling this freight
1t certainly would be cheaper to ship it
Greet from Hawaii to Panama, and from
there to New York.
Transcontinental railroad schedule rates
plainly show that heavy shipments could
be made from the gulf ports to the Pacific
coast, and that thousands of tons of
canned fruit and other products of the
Pacific coast could be shipped to the At
lantic seaboard cheaper by Panama than
across the continent by rail.
Disposition of Steamships.
The question as to what should be done
with the steamships is more perplexing
that what policy should be pursued in
the management of the railroad; but it
must be borne in mind that the govern
ment will have "A very large amount of
Its own freight to transport TO the 18TH
mus during the next ten years. If it
should sell the ships and discontinue the
taH hx-
have to depend upon private enterprise
Tor its freight passenger and mail SER
vice, and in this era of combinations, it
would not be difficult for steamships to
enter into an agreement and charge ex-
cessive rates. 1t has been suggested in
this connection. that the government
should make a contract at special rates
for canal business; but the character of
the freight. the amount required and
time when 1t will have to be transported
are problematical, and it is not practicable
to anticipate this business with sufficient
accuracy to enable steamship lines to
bid intelligently or to Justify the gov
eminent in now making a contract for
t. transportation.
The commercial cities on the gulf are
exceedingly anxious to have regular
steamship service between gulf ports and
Colon. and it clearly appears that not
only the interests of commerce, but those
OF the government require the establish
ment of such a service. very large
tonnage of the products of the Mississ-
ippi valley will be used as supplies in
the construction of the canal. and 1t is
cheaper 70 move such products by way
OF the gulf ports than via New York. An
| effort should. therefore, be made to In
duce some American company to estab-
Fish line of freight and passenger steam
ers between gulf ports and Colon.
American Shipo.
| Mr. R. P. Schwerin vice president and
| general manager of the Pacific Mail
steamship company. states that the oper-
alton of an American steamship line Is
much more expensive than that or
! me under foreign flag, the dinerence