New-York tribune., 1912-03-16
WOULD BAR CANAL To
RAILROAD-0WNED SHIPS
House Committee Adopts Drastic
Amendments to Panama
Bill.
AIMED AT GREAT INTERESTS
If Enacted Into Law Would Dl-
vorce Railroads from Steam
ship subsidiaries-stock
Control Prohibited.
From The Tribune Bureau.

Washington, March l5.-Recalling the
Panama Canal bill which was agreed
upon several days ago, the House Com
nittee on Interstate and Foreign Com
merce to-day added an amendment whlch
would deny the use Of the canal TO shlps
engaged IL the coastwiSe trade WHICH
are owned or controlled by railroads. the
amended bill further prohibits any rail-
road company or other common carrier
from holding stock in or controlling oy
lease or otherwise a water transporta-
ton line with which it does or may COM
pete
This provision. If enacted, means that
the railroads of the country must cut
loose from their steamship subsidiaries
Investments of millions by some OF the
largest railroads of the country would be
affected by the proposed legislation.
II is provided that the amendment
nrreed to to-day shall be inserted IN
place Of Section II, which stipulated that
no railroad-owned ship should use the
canal ~ such use is with the intent or
the effect Of preventing competition.
The amendment now inserted, follow
ing the lines Of measure introduced III
the House by Representative Covington
Yesterday, provides that it shall be un-
lawful "for any railroad company or
other common carrier subject to the act
TO regulate commerce to own, lease. oper-
ate, control or have any interest whatso-
nr othprUiSa-
directly or Indirectly, through any hold
ing company or in any other manner. In
any common carrier by water with which
said railroad or other common carrier
does or may compete for traffic"
A second provision is that any railroad
transporting freight and passengers in
connection with a water carrier from
foreign country shall, upon the request
of any water carrier engaged in the do
nestle or coastwise trade Of the United
States. provide similar connections and
through rates.
This provision. according to Chairman
Adamson, will put vessels engaged in
the coastwise trade of the United States
on an equal footing with steamship lines
and railroad owned steamships so far as
American coastwise trade is concerned.
Although the identical language is not
used. the practical effect of the latest
amendment to the Panama Canal bill
will be TO place an embargo on all ships
controlled by railroad influences, as was
FIRST demanded by Representative Know
land, a minority member of the COM
mittee.
The committee to-day took the Cow
ington bill, struck out Section II Of the
Panama Canal measure, and inserted the
Covington bill without material amend
ment. Representative Covington said
o-daY.
1.-The fight to keep railroad
ships out Of the Panama Canal resulted
because the Southern Pacific Railroad
controls the Pacific Mail Steamship Com
pany, using 1t to prevent competitive
water rates from the Pacific Coast. The
same conditions ! understand, prevail on
the Atlantic seaboard. The amendment
proposed would also break up the prac-
tice Of railroads in giving cheaper rail
rates on freight shipments from Europe
to inland points in the United States
than they accord to domestic freight de-
llvered to them by vessel"