The Washington times., 1913-08-25
PANAMA RAILROADS FUTURE.


New York charter, granted in l849, has remark
able charter, giving it many powers that il would
nowadays be difficult to get for such corporation
1t is for instance authorized to conduct steamship
lines in connection with its railroad.
When this corporation formed it was a
domestic concern doing business in foreign country
Ii was entirely owned by private individuals. Today
its shares are entirely owned by the United States
Government, and therefore the United States owns
the Panama railroad, the concessions that Colombia
made to that company, and the steamship line that
the company operates. But being a corporation in
form, it do many things that the Government,
directly, could not do without important changes Of
the laws. Therefore the railway company has been
made most convenient and useful instrument in
the construction of the canal.
With the canal approaching completion, the ques-
ton has been raised whether the corporation ought
to be continued should be dissolved and its prop
erty turned directly to the Government, so as
to be under the same administration, in every re-
spect, as the canal itself. The directors of the
corporation have decided to continue its existence
keep the railroad nomnally separate entity in
stead of directly a Government property, ard to
continue operating the steamships. Further steps
have been taken to make the steamship line a
larger factor in handling commercial business be-
tween the States and the canal zone, with the
purpose of making it check on rates and guar
antee against combination by the other lines.
Under the authority vested in it by Congress, the
railway company is believed to have power to de-
te1mine these questions for ITSELF at least until Con-
gress shall indicate contrary desires as to its future
1t is hardly conceivable that Congress will care to
interfere with the present status. The corporate
organization is ideal for practical business purposes;
while there can hardly be serious difference of
opinion about the desrabiliy of continuing to
operate the railroad utility, in competition
with the canal. That the steamship line should be
continued is not open to serious debate.
Without doubt the Panama railway will be a very
real competitor of the canal In time, solid cargoes
of wares will be brought to the Atlantic terminus
of the canal in big ships to be distributed in small
vessels up and down the west coast to Hawaii and
even the far East. There will be a tremendous
business in bulk-breaking and transshippng. 1t
will be found cheaper in many cases to unload these
goods at the Atlantic terminus of the ditch send
them by rail across to the Pacific side, and reload
them smaller boats, than to pay tolls through the
canal not only on the freight but the boat well.
This is an aspect of canal operation not yet fully
even those who have the best under
standing of it can only conjecture to the proper
ton of goods that will move in this way There are
people, indeed, who have believed that the CONNER
cial purpose of the canal could have been served
very we'll by properly constructed railway alone.
The example of the Tehuantepec road has been
pointed to by these proof of the possibilities of
such transportation. Of course, it would have
omitted consideration of the military and naval
phases Of the case.