The Washington times., 1911-11-20
CANAL MENACED
BY F|NANC|ERS,
SAYS B. N. BAKER
Banker Tells of Their Hos
tility to Its Devel-
opment.

Continued from First Page.)
must be offered. I hope that one will
Wants Law Amended.
II believe the interstate commerce act
should be amended to. give the commits
sion full control of water, and water
rail- routes and rates; also, that a COM
peting railroad should be absolutely
prohibited owning stock in any steam
ship company operating in the canal
The Panama Steamship Company 8
powers could be by law enlarged so
that It could secure and operate great
coast-to-coast line, buying new vessels
for the traffic. This should be done un-
less some interest, strictly independent
of the railroads, bids on this contract
sions powers to control transcontinental
rates would be greatly strengthened,
the Panama Railroad and Steamship
Company being entirely owned by the
Mr.. Baker read to the commission the
restrictions imposed in the Postoffice
Department advertisement for bids.
showing how 1t was designed to keep
this contract absolutely away from any
company controlled by a transcont-
mental railroad.
II had planned a company of SIS, ,oOO.-
900 capital, to build about fifteen
eteamers," went on Mr.. Baker. THE
business, of course, has yet to be de-
veloped. but its prospects have been
a sreat business with South America
would be developed by transfer OF goods
et Panama and Colon to vessels plying
10 South American ports"
Senator Cummins opened up the
question as to the status in interna-
tional relations of the ports in the re-
public Of Panama Mr.. Bakers con-
~I kh,k ,t~t, sell ,rr1,
these ports. exchanging mail and
freight there, would not lose it's char
acter as 4 coasttng vessel. This was
also the decision Of the Attorney Gen.
Cummins Makes Inquiry.
Mr.. Cummins wanted to know more
about the failure to get money inter-
ested in Mr.. Bakers company THE
details" he said. 1T is reported
that You have been interfered with by
''It is difficult to prove anything"
replied ME-. Baker. I can find no
general discouragement."
If the railroads and financial powers
back OF them have done anything con-
to be able to enact measures to keep
them In proper bounds" said Mr.. Cum
minis.
Found Bankers Hostile.
IT have found nothing that could be
set down as violation Of law" replied
Mr.. Baker. 1T is largely a matter of
opinion. Bankers would all agree that
there will be big volume of low-grade
heavy freight. as lumber coal and iron,
for such a steamship line to carry; but
this Is the clas sof freight least desir-
able and profitable. to the railroads.
When, however, came to the proposal
citrus fruit and other high-ci freight
that Is profitable to the railroads, have
found the bankers generally disposed to
discourage me-"
Messrs. Potter and Flagler, of the
Florida East Coast Railroad. talked to
me of making Key West a port of call.
b. F. Yoakum, of the Frisco, also was
interested to develop traffice via New
Orleans. These interests seemed anx-
ious for the success of an Independent
steamship line, and / have Nven hoped
that the Frisco might be bidder on
this contract.
II have not talked with James ]. Hill
or. any of the trans continental roads.
Effort was made to interest the Georgia
Central and the Illinois Central, but
they are both controlled by trans-conti-
mental systems"
Mr.. Bakers Belief.
"Do you believe there has been effort
by the ans-contnental railroads to
prevent such project?'
'.The understanding is that the Pacific
Mail expects to build more ships and
is controlled by the Southern Pacific.
1t would, I assume, want to keep the
business In its own hands and also to
prevent the effective competition Of an
outside interest"
"If Independent companies do not en-
ter the business YOU believe the Gov
ernment-owend Panama Steamship
Company should be expanded to handle
II surely do. I expect to see very
fast boats in this trade, for the bust
ness that must be carried at high speed.
Ships of eleven knots are more profit
able freight carriers than those of six
teen; but the faster boats are neces-
sary for some perishable freights. These
must have large refrigeration space.
There is great advantage in carrying
citrus fruits by water, because they can
be delivered IN much better condition.
the present rate Is about $50 by rail
per ton. l would like to take a big
Contract for the same business by water
rough the canal at 81 ton.
No Ships Being Built.
4et so far as ! can learn, no ships
are anywhere being built in expec-
tation of the canals opening. The time
Is now none too long. The Panama
Steamship Company has six ships in the
trade now. / would equip ships with
good passenger facilities, expecting a
large business to develop. The ideal
size for this traffic will probably prove
a 6.000-ton vessel"
Mr.. Baker told how the Pacific Mail
Steamship Company was handled as a
complement to the transcontinental
railroads, with the purpose of keeping
. real competition out of the field.
t'The Pacific Mail never gave a di-
rect or fast service" he said, Its best
time was, I believe. thirty-two days
between San Francisco and New York.
whereas a direct service should do Ii
in fourteen to sixteen days.
Followed Competitors.
"The Pacific Mail always claimed that
a fast service-cutting out the local
stops up and down the west coast
would not pay. But within the last
year, Bates g. Chesebrough owning
the California and Atlantic Steamship
Company, have inaugurated such a
direct, fast service. Whereupon, the
Pacific Mail did the same thing, its
boat sailing the day before that OF It's
competitor. l learn that this has
proved very profitable, too.
s"At one time the Pacific Mail started
cutting rates, but the Government
OF hot hau ha 70 do