The citizen. (Frederick City, Md.) 1895-1923, 1905-04-21
WASHINGTON.
Legislative and Gem
eral Topics from
the Capital.
April 10, 1895.

One of the severest tests to
which the present administration
has been, or will be, put will be
presented when the President re-
turns and receives the protests of
the trans-continental railway
companies which are up in arms
over the destruction of the monOpo-
ly they have long enjoyed as a re-
suit of the monopoly of the Pana-
ma Railway Company. Soon after
that railway was completed its
directors entered into an agree
ment whereby they bound them.
selves to transact business only
with certain steamship lin s,
notably the Pacific Mail Steam
ship Company on the West coast
and the Panama Steamship Com
pany on the East coast, which line
it controlled. In this way trans
porta;iOn by way Of the Isthmus
was insured from competitor and
a monopoly created which enabled
the tranS-continental railro a d
within the United States to main
tain the high rates they have
always charged, this conspiracy
in restraint of interstate com
merce" having been perfected by
the late Coils p. Huntington.
Asthe Panama Railroad was with
out the United States this Gov.
eminent was powerless to prose
cute it for maintaining a trust in
violation of the Sherman Law.
Now that the Panama Railroad
has passed to the ownership of
the United States it is proposed
to charge for transportation of
freight and passengers only the
actual cost of transportation plus
a fair rate of profit which shall be
converted into a sinking fund.
But the more important feature of
the Governments OwnerShi
promises TO be the acceptance of
freight and passengers from all
steamship and sailing lines which
now exist or which may be eStah
lished, regardless of what prices
they may charge for water trans
portation. This means, of course.
that he rates between American
ports and the I>thmuS will he
regulated by free aud fair compe
tiIlnn and they will inevitably he
materially lowered from the prices
maintained when monopoly
existed. 1t is estimated 10y the
railroad lohbiestS. who have al
ready come to Washington with
the hope ofprotecting their clients.
that the free competition of steam
ship companies and the Panama
! Railway will result in the lowering
of freight rates between New York
and San Francisco, via Panama.
from 50 ton, the rate now charg
ed. to 81 a ton. Passenger rates.
it is claimed, will be lowered from
Sl15 to S65. meals included OF
course the railroads will still COM
mand the situation where time is
a factor, but with freight which
demands no haste and with pass.
engerS who are willing to take
their time, the Panama route will
prove the tavorite uoleSS the rail
roads lower their rates to accord
with the new water rate. The
capacity of the Panama Railway
will also be limited but it has
been decided to double the track
which will somewhat offset that
factor.
The railway lObbiests maintain
that it will plunge their clients
into bankruptcy to meet these
rates. They do not say, however,
that this would be the case only
because of the extent to which the
railway stock has been watered.
Nevertheless. there will be strong
pressure brought to bear on the
President to take some step which
will save the pampered railways
from the effects of fair competi
tiOn and there is no doubt it will
require great moral strength on
The part of the President to resist.
If the President proves invulner.
able then the lObbiests will turn
their attention to Congress and it
is entirely possible that in that
quarter they may prove sue
ceSsful. If, however, the Presi.
dent and the Congress prove true
to the interests Of the people the
railways will doubtless be com.
PEELED materially TO lower their
trans continental transportation
rates.
The people of the United States
are not the only ones who have
suffered from the monopoly of the
trans Isthmian line, as is shown
by the protest of seven South
American Ministers who have
filed protest with the State De
partment against the renewal of
cotracts with South American
steamship lines which they claim
L.