Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-06-12
NOT SEEKING FREIGHT
Panama Road Handling All the
Business That Comes.
WHARvEs CONSTRUCTED.
Handicapped, of Course, by Operations
on the Canal.
WHAT CHAIRMAN sH0NTS SAYS
Docks at the Pacific Terminus Delay
ed-No Congestion Of Traffic
Improving the Facilities.
WHAT CHAIRMAN sHoNTs SAYS
BY WILLIAM E. cuRrfs.

BY WILLIAM e. CURTIS.
Written for The Star and the Chicago Record.
Herald.
Chairman Shonts of the Panama canal
commission says they do not expect to hus-
tie for business for the Panama road while
the canal is under construction. but VIII
handle all the freight that Is offered to
| them, and are willing to compete with the
Tehuantepec road on even terms. He was
very much interested in the, description OF
the splendid facilities that have been pro-
vided by the Mexican government Tor
handling freight at Coatzacoalces ana at
Salna Cruz as described in these columns
and frankly wished that they mad similar
warehouses and machinery on the isthmus
The conditions on the fsthmus, however, ne
said, are not half as bad as they have been
represented, and are improving all the
time The complaints about delay In NOV
ing freight and the alleged congestion OF
cargoes intended for California were not
due to any defects in the terminal facilities
or In the hauling capacity of the Panama
road, but to lack of cooperation among
the people who responsible
II have just been to the fsthmus WIN
Mr. Schwerin, vice president and general
manager OF the Pacific Mail steamship
Company" said Mr.. Shonts. and we nave
gone over the situation together In a most
harmonious and satisfactory manner. l do
not think there will be any further criti-
cism from Mr.. Schwerin or from anybody
else as to the traffic on the fsthmus mere
after. / am positive that there will be no
further trouble.
Handling the Freight offered.
I'VE are not afraid of the Tehuantepec
railroad taking our business away from
u.s." continued Mr.. Shonts. but we are not
going to make any special effort to keep
It, We will go right along handling the
goods as fast as they come to us and
building the canal at the same time. or
course, we could handle the freight a
great deal easier IL we were not building
canal, but we will try to do both In the
most satisfactory manner. We are not IN
competition with any nation or any road
We are not seeking business, but merely
taking care of what comes to us, and
are trying to give ii the same service that
1t would receive from private corpora
ton.
1--WE have reduced rates between New
York and Panama about one-half since the
acquisition of the property. and have also
reduced the local rates, but have not gone
further than meeting the competitic~ es-
taDlshed by other lines. 1t is not our policy
to cut rates to get business. The policy
of the railroad is to make it's freight
charges only high enough to cover operating
expenses. to meet fixed charges and to allow
reasonable profit The fixed charges in
cIude a payment to the Colombian govern
ment of $250.000 per annum, or more than
5000 per mile. which used to be con-
sidered fair gross earnings for western
road. The through rates to San Francisco
and to points on the west coast have not
been disturbed They remain the same as
they were previously, and to San Francisco
are from 30 to 30 per cent lower than the
transcontinentaI rates. which are made over
aalrS Strtlpt ad
freigh hts"
Annual Payment.
What is the payment Of s2J0.000 to the
Colombian government"
"a contract between the United States of
Colombia and the Panama Railroad Com
pany, dated July 5. 1861" said Mr.. Shonts,
| provides for an annual payment by the
| railroad company by way of rental for the
privileges therein granted of S230,000 Ameri-
| can gold for ninety-nine years from August
| 16, 1857. $4,000 of which was to be paid
| annually during the twenty years (after-
ward indefinitely extendeD TO the govern
ment of the state of Panama. By treaty
| between the republic of Panama and the
United States government. exchanged at
Washington. February 20. 1904. the $4,000
due from the Panama Railroad Company
became payable to the United States gov
eminent. The annual payment falling due
in 1905 was made to the United States.
Also under the terms THIS treaty the
s225, 600 will be payable to the United
States government after March Z, 1903.
The United States government, under the
terms of the treaty, is obliged to pay to
the republic OF Panama s250OG0 per year
beginning nine years after the date of the
exchange of the ratification February %.
| 1901 which sum 1t will. receive annually
I from the Panama Railroad Company.
Roads Condition When Acquired.
THE Panama railroad was acquired by
| the government as part of the purchase
price of the concession. 1t Is an instru-
ment necessary for the proper construction
| of the canal. If 1t had not been In exist
| ence, road would have had to be built.
| In order to supply the needs. 1t Is the
| most important instrument We have; with
out 1t we could not get rid of the dirt and
! could not haul the necessary machinery,
| materials and supplies, When we went to
| the isthmus we found the road doing a
/ small commercial business. amounting to
about 10000 tons OF freight per annum,
chiefly between New York and Europe on
| the one hand and California and the west
coast of Mexico, Central and South America
on the other. About II per cent of the
| tonnage was between New York and Gait
| York and other Pacific coast points, and
| about 10 per cent between Europe and
| California and other Pacific coast points.
| There was no traffic between Europe and
i ASH OF DelWeeu Lie OnltSu SlateS ana
Asia.
| This tonnage was handled over lgle
1 track railroad. The roadbed was In fairly
good condition. The track was laid with
| light rails and suitable terminal facilities
had never been provided for It, No money
| had been spent on the power or equipment
| for many years. Ii these facilities had
| been in good condition (which they were
noD they would have been scarcely ade-
/ quate. even for the small business that
was handled The location of the docks
| at Colon was such that 1t was impossible
| to create economical terminals there. All
the facilities were old-fashioned and
| limited to what was barely sufficient for
| the vessels that were In the habit of going
/ there. When an extra vessel carne there
| was no accommodation for 1t and 1t had "a
! lie outside. The harbor was exposed to
| 'northers. SO that in case OF Storm the
ships had to leave their wharves and to go
| to sea for protection. II they had re-
| mained they would. hasn been dashed to
| pieces against the wharves. On several oc-
| casions ships have been sunk at their
moorings by being crushed against the
docks
| ION the Pacific side there was single
steel pier. which we found too fraH In Its
| construction to stand the heavy cars and
engines that we bought to carry our traffic,
| and was only long enough to accommodate
/ three small vessels. This, OF itself. was
| only very recent improvement. Formerly,
and until four or five years re-. all FREIGHT