The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1906-06-18
RAILROAD NEWS.
Panama Line viii Be a Rival
for General Business.
1t Is Prepared to Handle All
Business Offered.
om Cx,T1rY TT
DOES NOT SEEK IT.
But viii Compete with TehuaR-
tepee Line on Even Terms.
Gossip and Matters Of Interest
in Railroad Circles.

Writing to the Chicago Record-Her-
aid from Washington. William e Cur
lis states that Chairman Shonts Of the
Panama canal commission says lhsy
do not expect to hustle for business 1or
the Panama road while the canal IS
under construction. but viii handle all
the freight that is offered to them ana
are willing to compete with the Ie-
hauntepec road on even terms. He was
mach interested in the description OF
the splendid facilities that have been
provided by the Mexican government
for handling freight at Coatzacoaleos
and at Salina Cruz, as described in these
columns, and frankly wished that they
had similar warehouses and machinery
in the fsthmus. The conditions on the
isthmus. however he said. are not halI
as bad as they have been represented
and are improving all the time. The
complaint about delay in moving
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 10 a lack of Co
operation among the people who are
responsible
II have Just been to the isthmus with
Mr.. Schwerin, vice president and gen
eral manager of the Pacific Mail Steam
ship company, said MI ShOntS, ana
we have gone over the situa ton tOgeth-
er in a most harmonious and satlsfac-
tory manner / do not think there will
be any further criticism from MI
Schwerin or from anybody else as to the
traffic on the isthmus hereafter 1 am
positive that there viii be no further
trouble.
we are not afraid of the Tehuante-
pee railroad taking our business away
from US" continued Mr.. Shonts. but
we are not going to make any special
effort to keep it. We viii go right along
handling the goods as fast as they come
to us and building the canal at the
same time. OF course we could handle
the freight a good deal easier if we
were not building canal but we win
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 try
ing to give it the same service that il
would receive from private corpora
tion.
we have reduced the 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 meet
ing the competition established by 9TH
er lines 1t is not our policy to cut
rates to get business. The policy of
the railroad is to make its freight
charges only high enough to cover OPP
Grating expenses, to meet. fixed charges,
and to allow a reasonable profit. The
fixed charges include a payment to the
Colombian government of $3.50, 600 per
annum. or more than $1,000 per mile.
which used to be considered 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 Fran
cisco, are from 20 to 30 per cent lower
than the transcontinental rates. which
are made over tracks constructed for
hauling heavy freights"