The Ocala evening star., 1911-03-27
COMPETING WITH
THE PANAMA CANAL
The Tehuantepec Route and the Pan
American Railway.
Savannah Morning News)

finds as interesting a railroad situa- |
ton as there is in the world. The Te- |
huantepec route is owned by the Mex |
lean government. operated by an En- |
glish firm and managed by Americans. |
It is a competitor of the trans -conti- |
mental railroads TO the north and a |
bidder for business against the Pana- |
ma railroad to the south. In addition, |
Il will be a rival of the Panama canal |
when that is completed. Built on the |
line Of one of the three great trans |
isthmian highway projects, il has
given partial shape TO the dream of |
the great engineer, James B. Eads, |
who would have built here a trans |
isthmian ship railway. Anyone who |
has travelled across the watershed of |
the Isthmus Of Tehuantepec, and has |
seen the engine Of his train going due |
east, while the rear car is travelling /
due west. SO sharp are some of the |
curves. must marvel at the suggeS- |
ton that a ship railway might be |
built here.
The Tehuantepec Route is a 200 |
mile railroad, extending from the port |
Of Coatzacoalcos on the Atlantic TO |
Salina Cruz on the Pacific. At these |
two ports there are magnificent ter |
minal facilities. The ships of the Pa |
cifc unload their cargoes at Salina |
Cruz directly into freight cars, which |
carry them rapidly across the 18TH
mus to be loaded again into Atlantic
steamers waiting at Coatzacoalcos.
Nearly a million tons of freight are
handled annually by the Tehuantepec
Route A large proportion of it is
sugar from Hawaii. The American
Hawaiian line brings it to Salina
Cruz where it is transferred across
| the isthmus to be reloaded into yes
| sells of the same line for eastern ports.
There are half a dozen steamer lines
| from European and American ports,
| which bring cargoes to Coatzacoalcos,
en- route to Pacific ports. On the Pa
| cifc side as many more lines are in
| operation.
The history of the Tehuantepec
route is another fascinating chapter
in the story of Mexican progress
Years ago a railroad across the 18TH
mus was built. but it was such a poor
excuse that it soon became the pro-
verbal right of way and two lines of
rust. 1t was completed in 1894. but
was so inadequates that in 1896 the
Mexican Congress passed an act pro-
viding for the issuance of bonds for
the building of the new road and the
necessary port facilities. The con-
tracing firm, of which Sir Weetman
Pearson is the head, was assigned the
| task of rebuilding the road and con-
structing the necessary harbors and
docks.
| At the same time there was an
lagreement between the Mexican gov
eminent and the Pearson firm where
by they were to become equal part
ners in the operation of the system
for a term of years expiring in 1853.
Each partner was to put up s3,500,000
as it's share of the operating capital
and the Pearson firm is the operating
partner. 1t is under this agreement
that the route is being operated.
But no one would suspect on visit
ing the headquarters of the system at
Rincon Antonio. Nearly all the inhab-
itants of the town are Americans.
| That the Panaman canal will get
the bulk of through cargo now being
handled by the Tehuantepec route is
lgenerally conceded, and were there no
other business to take it's place the
loutlook here would be gloomy indeed.
But one of the notable things in con-
nectton with the canal is the belief
that it's completion will mean an
era of unbounded prosperity for the
west coast The same feeling pre-
our own Pacific states, and the whole
financial world shares it. This means
that millions of tons of new freight
will be created. Some of this will go
forward in full cargo shipments and
Ianother part of it will be made up of
isman consignments.
The management of the Tehuante-
pee route concede all the full cargo
n
they point out. ship will come down
the west coast with cargo made up
of shipments to New York, Liverpool
Hamburg and other points. This will
have to be transshipped somewhere,
and the Tehuantepec Route can per-
form that service more expeditiously
and as cheaply as the Panama canal
So they expect to get enough addi-
tional business to make up losses.
| The Tehuantepec Route affords
isaving of about 1900 miles between
the Atlantic and Pacific ports IN tenn
perate zone territory compared to
the canal. On ordinary steamers this
means four days. The rate across the
Isthmus of Tehuantepec is now be-
tween four and five dollars a ton.
This gives a good profit. The actual
cost Of handling the freight at the
rate which can be made when the
competition of the canal is encoun-
tered will have to include this amount
land the cost of hauling the freight be-
tween ports. If they can haul 1T as
cheaply as the average in the United
States, this expense will be avera ge
$40 per ton, making the total expense
1886 a ton. Add to this the reasonable
profit, and the resulting rate per ton
will be close TO 81 1t is thought that
the tonnage toll through the Panama
canal will be 81 per ton net reg
ister-that is, ship will be charged
for a full cargo whether she has it
aboard not. \ ship capable of car
rying 5000 tons of cargo would be
charged $4,000 for going through the
canal. even though she carried only
$500 tons At Tehuantepec the charge
would be only on the amount of cargo
actually handled. As il takes approx
imate1y two days to transfer a cargo.
the net gain of time over the Panama
route would be two days, or possibly
three, counting delays.
The most profitable business handled
by the Tehuantepec route is that Civ
en- it by the American Ha waiian
Steamship Company. whose vessels
formerly went around Cape Horn. The
lTahuantenec Railroad COmDany is a