Evening star. [volume] (Washington, D.C.) 1854-1972, 1911-02-19
Hawaiian Steamship Company
Alleges Discrimination.
PANAMA RAIL WAY CHARGES
Secretary Dickinson Hopes to Reach
a Satisfactory Adjustment.
DIFFICULTIES THAT ARE MET
Canal Commission Demands That
First Consideration Be Given
to It's Business.

Secretary Dickinson has written tc
President Taft promising to exert him.
self to the utmost in reaching an adj
justment of the Panama railroad situa-
ton. A conference soon will be held, the
Secretary reports, and he hopes that i,
may result in a solution satisfactory TO
all concerned.
Mr.. Dickinson relates the particulars
regarding the augmentation of business
via the canal since the increase in the
division OF receipts to the steamship
companies was granted. He also tells of
the vigorous protests made by the Ha-
waiian Steamship Company. That COM
pany denies all alleged combinations
with the transcontinental lines, it does
all reports of being subsidized by the
Mexican government.
1t contends for rates across the isthmus
which will not discriminate against it,
as the present rates are alleged to do.
Some Points in the Problem.
Stating the desire of the California and
Atlantic Steamship Company to maintain
II it's vessels on the Atlantic, Secretary
Dickinson points out some of the difficult
ties which confront the government, as
follows:
a question, therefore. to be determined
is whether the Panama Railroad Company
should encourage competition with It's own
steamers. and thus run the imminent fisk
of running light both ways. and thereby
ii mourning loss, and increasing the loss
now incurred in this business by hauling
the freight at less than cost across the
isthmus.
THE minimum of 23 1-3 per cent to the
Il Panama railroad haul is eXacted OH all
fnyn Inns
business. 1t possibly is the least rate
that would probably cover all the cost
of the service and from commercial
standpoint is probably the least rate that
should be charged for q service across the
isthmus. If we are to reduce the differ
entail to the Pacific co-carrier from 20 to
60 per cent it is question whether al
the same time we should Increase TO the
coastwise traffic the charge by the rail-
road company from 1872 per cent to 23ila
per cent.
This to the California-Atlantic Steam
ship Company and the Pacific Mail Com.
pany would amount to a decrease or II
per cent for the Pacific haul, which with
the 10 sper cent for the railroad haul
would make a total of 20 per cent. Such
decrease to these companies mghl
drive one or both out of competition ane
thereby make the government open to the
charge of playing into the hands of the
transcontinental railroads by taking away
from the people of both coasts the present
protection against eXOrbitant rates.
Virtual Cutting of Rates.
Mr.. Dickinson also says:
1T is alleged and I believe that con-
cessions have been made both by the Cali
fornia- Atlantic Steamship Company and
the Pacific Mail steamships to get bust
ness. which amounts to cutting rates. and
that this 30 per cent division has enabled
them to do this.
"It is alleged that the American
Hawaiian Steamship Company has for.
merly cut rates in competition with the
Panama Railroad Company, and may dc
SO again. A freight war on this business
may he started, which would be unfortu
mate in view of the short time it vii
take to complete the canal
Notwithstanding the increased CONNER.
cial demands on the railroad, the cana
commission is demanding that fist con-
sideration be given to it's business. The
railroad finds itself unable to meet al
demands without more rolling stock and
additional docks. In view of the fact that
the canal will soon supplant the road
the management is unwilling to supply
these. Mr.. Dickinson states this fact
but makes no recommendation.