The Montgomery advertiser., 1905-04-26
TAFT GIVES
 HIS OPINION Traffic Across the ISthmuS
 of Panama. POLICY OF GOVERNMENT Public Mind Has Been Con- fused in Matter. VIII Be No Discrimination Between steamship Companies But the Proposed Changes in Rates
 Are to Be Made.
 

|
 Washington. April 25.-secretary | Taft has rendered an opinion of great | importance to railroad interests re- | specting the policy of the government | respecting the existing monopoly in l traffic across the Isthmus of Panama and the fixing of rates over the Pan- anna Railroad as bearing on the exist. fnG rates on trans continental traffic | The publication of several interviews recently with the Secretary himself. | with President Shonts of the Canal | Commission and with Chief Engineer | Wallace hss led to much confusion in
 the public mind on these subjects and | the Secretary concluded to publish a | letter he has just written as the best l way of making known his own views 1 and purposes. In this letter he makes | if plain that there is to be no discrirni-
 nation whatever as between the sew
 erai steamship companies in handling 1 their business across the isthmus; that
 he does not anticipate any considers 1 able effect upon the trans-continental
 traffic arrangement of Panama railroad
 rates, but that this readjustment will | be had regardless of such effects. The l letter is as follows:
 April 24. 1905.
 My Dear Mir. Hooker: n
 q am in receipt of your letter ot
 April 21st and have read 1t with in | terest The policy of the government
 in managing the Panama railroad Il to charge such rates as will pay for tht
 carriage of the goods across the isths ! mus, a reasonable return on the invest.
 ment of the government and nothing
 more. It will permit no discrimina-
 ton against or in favor of any of tht connecting steamship lines. It may be | that this policy will affect the trans | 70 aia Cf | freight that can stand the isthmus trip | favorably for the shipper.
 To Have Little Effect.
 However. Mir. Wallace, our chief ens gineer and a railway manager of ex- l perience thinks that the proposed changes will not have much influence | on transcontinentaI rates because he l thinks that but a small proportion Of | that which goes to make up trans
 continental freight can be carried oy < the isthmuH The long trip and the ] fact that the merchandise carried is to be considerable period | in the tropics exclude the pos- l sibilty of carrying many kinds l 'srhe Panama Railroad Company
 owns three steamships which ply be-
 tween New York and Colon. We snail | make the rate upon the ships as low as possible, consistent with paying q l reasonable compensation for the car
 riage and the investments. We shall
 run them merely for the purpose or
 preventing a combination to raise tne
 rates for the delivery of material Tor
 the construction of the canal from the | United States to the Isthmus. The | government is not running and does | not expect to run a line between New York and San Francisco or between | San Francisco and New York. hence
 the relation of Its policy to transcon- | tinental Rates is only indirect. The 1 nolicv of the Panama Railroad Comr
 norv hereafter. in view of it's owner shin of the three ships and the docks | at Colon and its resulting ability to excIude from the New York and Colon business any other steamship line, has l been to monopolize the trade between | New York and Panama on the one side. while its arrangements for exclu-
 sive through billing between New York and San Francisco with the Pa- ciflc Mall steamship Company, pro- duced a monopoly for the Pacinc Mah trade on the other side between Fan
 anna and San Francisco on the mort and a monopoly for the Chlieah
 paciac Steamship Company from anna 10 the south. So far as the act
 of inc Panama Railroad Company
 hreak up the monqpolies, 1t IS be ik taken. - s | "rhe Government's acquisition or sne
 railway line was not primarily for the | n,,rnoge of affecting railway or ocean | ratss transcontInenta1 or otherwise.
 Ii was for the purpose of acquiring an 1 tnvtrnment with which to construct tne
 na,,aI. an instrument absolutely indts- norsahle to the accomplishment or our nurpose within reasonable tlne' 1ns | incident that we must hold the rah- road under A franchise requiring us 70 I faI noses upon us tho obligation to do whas
 we can to make just rates and prevent | discrimination and this we shall do. | Tf tbis ameliorates conditions we shah | he very glad. If it does not, 1t Will not | be in our power to do more,
 "The effect of changes in rate and
 trade conditions is so elusive that 1t
 ts hardlv safe to make prediction as to inc result One should study the l local conditions which prevail at Pan-
 anna and at the many ports between l san Francisco. in Mexico and Central | Anerica and should estimate the exact | operation of our coastwise laws, whlcn
 prevent the intervention of foreign l sbinping in the trade via the tsthmuS between San Francisco and New York before expressing an opinion as to the | e6ects 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 compet- ing with the Pacific Mall Line between San Francisco and Panama with the as- distance of the Panama Railroad Com-
 many, It proved to be disastrous | failure and was therefore followed by
 q renewal of the discriminating con- l tract which Is to terminate in July
 next.
 American Competition.
 tIt is possible that the time is now
 ripe for the establishment of Ameri- ! can competition with the Pacific mall l between Panama and San Francisco.
 Certainly the government in operating
 the Panama railroad will do nothing | to hinder 1t Nevertheiess 1t Is possi-
 bic that the position of advantage that
 tho Pacific mall has with respect to
 Mexican and Central American trade
 and its ownership of dock at Colon
 may enable it to establish lines on
 both sides which will do all the
 through business and fix the rates
 without enjoying any diserimluation
 in It's favor by the Panama Railroad