The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1905-04-26
FAIR Rates.
Aim Of Government i'm Panama
Railroad Management.
VIII Be No Discrimination in
Favor Of Anybody.
TAFT WRITES LETTER.
Sets Forth His Views Regarding
the Federal Policy.
Looks for Nos eriOus COnse-
qUences to Other Lines.
TAFT WRITES LETTER.

Washington, April 26.-Secretary Taft
has made a decision that is of the
greatest Importance to railroad interests
respecting the policy of the govern
ment relative to the existing monopoly
Of traffic across the isthmus of Panama
and the fixing of rates over the Pana-
ma railroad as bearing on the existing
rates on transcontinental traffic The
publication of several interviews re-
Gently with Secretary Taft, MIR. Shonts
and Chief Engineer Wallace has led to
much confusion in the public mind on
these subjects and the secretary con
cluded to publish a 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 as
between the seven steamship companies
in handling the business across the 18th
mus that he does not anticipate any
considerable effect upon tTanscOn-
tinental traffic from Encouragement of
Panama railroad rates, but that this re-
adjustment viii be had regardless of
such effect. The letter follows:
The policy of the government in
managing the canal 7s1ilrOad is to
charge such rates as viii pay for the
carriage of the goods across the 18th
mus, reaSOna bic return on the invest
ment of the government and nothing
more. 1t viii permit no discrimination
against or in favor of any Of the con-
meeting steamships. 1t may be that this
policy viii affect the transcOntinental
rates on those classes of freight that
can stand the isthmus trip. However,
AGr. Wallace, our chief engineer and a
railway man Of experience thinks that
the changes viii not have much in
nuence on transcontinentaI rates, be-
cause he thinks tha5 but small pro-
portion OF that which goes to make up
the transContinental freight can be car
Eied by the isthmus.
To Prevent Combinations.
1.-THE Panama railroad owns three
steamships. which ply between New
York and Colon We shall make the
rate upon these ships as low as pos
sible consistent with paying a reason
able compensation for the carriage
and the investment We shall run
them merely for the purpose of pre-
venting a combination to raise the
rates from the United States to the
in the construction of the canal
THE government is not running
and does not expect to run a line be-
tween New York and San Francisco
or between San Francisco and New
Y ork- The policy Of the Panama
Railroad company heretofore. in view
of its ownership of three ships and
the docks at Colon and its resulting
ability to exclude from the New York
and Colon business any other steam
ship line has been to mOnopolize the
trade between New York and Panama
on the one side. While its arrangement
3or exclusive through billing between
New York and San Francisco with the
Pacific Mail Steamship company pro-
duced monopoly for the Pacific mail
on the other side between Panama
and San Francisco on the north and
a monopoly for the Chilean and Pa
cifc Steamship company from Pan
anna to the south. So far as the &C
ton of the Panama Railroad company
can break up the monopoly, it is be
ing taken.
The Governments Purpose.
''The governments acquisition of
the line was not primarily for the pur-
pose of affecting railway or ocean
rates, transcOntinental or otherwise
1t was for the purpose of acquiring ar
instrument with which to construct