The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1911-06-05
Concessions Granted to Com
pany Planning Cross
lsthmus Line.
FEDERAL GUARDIANS
AT WORK ON PROBLEM
Would Safeguard Interests in Case
of War Without Impeding Re-
public's Development.
By JUDSoN C. wELLIvER.

That a German interest, which in the
event Of war might be very dangerous,
Is seeking a foothold in Panama, and
packing a project of railroad develop
ment in the Isthmian republic, is sus-
pected by some of the cautious army,
navy, and diplomatic people who have
anna canal
The government Of Panama las grant
60 concessions for the construction Of a
railroad. most of whose line would be
IN Panama, but minor section in Co.
tomoia. This concession gives sthe au-
thority to the Balboa and Pacific Es-
t tees company Ltd;, and grants such
rights that the AFFAIR has lately caused
considerable apprehension among the
American authorities on the isthmus
and in Washington.
Ihename of the conCessionaire corpo-
ration suggests English control but re-
Gently there has been intimatlon that
German interests were really back of 1t,
and that the British corporation was
part of plan to disguise the real pur-
pose.
Great Strategic Value.
Possibility that such a railroad might
prove of great military and strategic
value in operations in the canal region,
explains the concern of American au-
thorities.
Whether there will be intervention
from Washington, to make certain
that no rights will be given to the
disadvantage of this country, is yet
very uncertain question. Thus far
the. concesSionaireS have not done any
physical work on the development Of
their grant, and no immediate APP
prehension is entertained. The init
nation OF concealed German inter-
est back of the British corporation
mas come to Washington in such
form That 1t is being subjected to
some quiet investigation.
Originally the purpose of the new
railroad was understood to be en-
1lrely industrial. 1t was to be built
from the Pacific side of the Panama
G 5eTrItory. with the avowed purpose of
developing a mining property which
is now incapable of operation because
II has no transportation availabIe
ms looked perfectly innocent; but
q, rne cnarter also conveys the right, in
construct branches that may be neces-
sary.
Across Isthmus Line.
Nothing in the original plan sug-
gested purpose to build a line d.
rectly across the isthmus. But more
recently, under the authorization to !
construct branches, the syndicate has
lnolGated desire for branch" which |
lantic side. and which, if Operated in
connection with the line to a harhor
on the Pacific, would provide prac- |
tlcaIly a direct route across the Pen |
anna republic with a harbor at either
end. ot
The question whether such a line |
Woulo nave any particular military |
value, If in the control of a foreip9 |
ssynolcate. In time Of war, is the sub !
1ect OF much discussion among nee
pie who have been taken into The |
secret OF the Governments concern
one view is that such a road NIGH
pc used to get troops across the
nation; from the Atlantic side 70 ate
TACK the western terminus of Tho
canal; or from the Pacifc side 70
operate against the eastern terminal
q, AsaIlst TINS possibility. it is insisted
accrue from such transportation he.
cause IN event of war the United States
would take possession of such a rod |
~ !. tne Nery beginning, and make sure
OF the United States.
Might Be Competitor
At any rate, a new interest in the in
lernstional complications incident to .
American responsibilities in the canal
zone has been aroused by the discussion
Or this new problem. Tie connecting
railroad. in addition to the possibilities
Of military significance. might become a
competitor of the canal and the PAN
anna railroad, and cause some embar-
There is little doubt that the WASH
ington Government, under its treaties
with Panama, has full power to protect
Itself by vetoing or restricting any cor
session of this kind. But the problem
S not easy. Development of railroad |
facilities means development OF the
Panama republic. which is altogether
SO long as it involves no POS
,ibility of military menace.
This Government has no desire to do
anything but promote such develop
nent. To encourage this. and at the
anne time make sure that no foreign
,ower is putting over anything to the
,Ussible disadvantage of our military
md naval security in the isthmus, is
he question involved.