The Birmingham age-herald., 1912-03-10
PANAMA CANAL POLICY CHANGED Railroads Will Be Given
 Equal Rights
 BE NO COMPETITION
Competitive Freight Rates Expected by Shippers East and West May
 Now Amount to Nothing. Cause of the Change
By JONATHAN WINFIELD

Once more the usefulness or the rdhe
 ma canal as a competitive freight pro moter is believed to be in danger py the shippers of the east ana west coasts II is now feared that the trans continental railroads will before they lat ,,n ooptrol the traffic through tho canal and will prevent relief to the people who ship freight between the .nroducinC centers of the east and to the markets of the west
 This alarm has been caused by the recent action of the administration in advocating a policy which grants the railroads all rights in connection with the canal that Independent steamship lines may enjoy.
 For long time the reverse of this policy governed the administration. President Taft in one message and In half dozen speeches declared that it would be a calamity for the trans-con- l tinental railroads to gain control of the | canal. He pointed out with great force that the people of the country had eX- pended or would eXpend before they get | through s400,000, 900 for this waterway and that the people should have any benefit which might accrue as result.
 More important than the facility which the canal might afford the United States navy, the President pointed out, should be the reduction in freight rates from coast to coast. Independent steamship lines would force these rates down by operating steamers through the canal at a lower cost per ton per mile than the railroads could operate | overland
 Following this idea the President rec | commended to Congress legislation that | would prevent any railroad from own ing, controlling or influencing any | steamship line which might use the | canal, This was exactly what the ship | pers east and west wanted. It Is ex- | aetly what Ihe commercial interests | generally had argued for from the be- | ginning of tb canal construction.
 Tben the Postmaster General, when | he advertisedsforbids for the transpor- l tation of ocean mails through the canal | stipulated plainly and pointedly that no | steamer line which might be in any way | lcenttoled byFthe railroads need apply | for this business. . This was buswanother indication of | the attitude of the administration in | this regard. 14 7<
 NOW, however, a decided CndnRe mas come over the administration. The | whole canal policy has been changed. A | few days ago Secretary of War Henry | L. Stimson appeared before the Senate committee on aiinteroceahic canals nd told the senators that the President wanted 10 withdraw all former recom- mendations as to the railroads using the canal He said the President be. lleved that these carriers should be given the right to use the waterways and use it as freely as could steamship lines operated Independently.
 Going further, the Secretary explained this change of front. He said that the administration after more complete study of the conditions presented by | lthe canal, had decided that all traffic | through the waterway should be placed | under the control of the interstate com merce commission and, therefore, the | ra ilroads should be permitted to use the | canal, under such restrictions as to rates as might be imposed by the com mission. I1 |
 This proposition, the shippers say, ap- pears very good on it's face but in real | 5ty, they contend, it does not guarantee | competition and, therefore, it fails to give the business interests any relief l from the domination of the trans con | tinenal railroads.
 Also, it is pointed out that, in order | to give the commission supervision over | the canal. it is necessary to place all | coastwise shipping under the commis | Sion. This might prove unfortunate, ac- cording to the representatives of the | Shippers. and might destroy what water | competition now existing between ports | on the east. west and gulf coasts of the | United States.
 Attorney General Wickersham, in an | opinion, has held that the canal can be | regarded as a part of the United States | ch J.raif h< 1aI ooastwise business. That removes all | doubt on one point, but it does not re- l move the doubt as to the advisability of | extending the authority of the commis- | sion to coastwise steamship lines do- | ing strictly port to port business
 Since the commission was created the | coastwise steamer lines, backed by shin | pers' organizations. have opposed all | schemes to place them under the suner- vision of the interstate commerce com | mission. It has been argued from the | ssart that such line was in no way on l tue same basis as are railroads. They do | not have the right of eminent domain | hey do not enjoy franchise and while | they may be engaged in interstate com | merce. they are not in the same class as -Arail lines operating between the states l
 To place coastwise shipping under the | control of the commission would, it IS ,eared destroy all competition which | hese lines now afford. The force or this argument has been recognized | heretofore and the lines In the port to | port trade have been left free of all | government supervision.
 The big railroads are all supporting | Inc plan of the President to throw the | .anal open to all interests and have es- .ablished Hobbies Tn Washington to fur her the schemes. The shippers have l ilso sent representatives to the capital 70 fight the proposition and before canal 1 cgislation Is enacted a warm contro- | rersy will undoubtedly develop
 More important to the shippers they | Iay than the matter of tolls for use of | he canal, is the railroad phase of the | ,ituation. For the most part the com | nercial organizations regard the oues- | ion of the railroads using the canal as | ,losed. They were using their influence n favor of free passage. of their steam l IT lines until Secretary Stimson threw a | 'omb into their camp by stating the | administrations view.
 Both houses of Congress are now en- | ,aged in studying the commercial ;s- ues which the near opening of the anal have raised. This waterway is | low looked upon having a greater | caring upon the industrial life of the | country than any other development in | he history of transportation problems f the nation.
 
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