PANAMA CANAL.

Dominion, Volume 5, Issue 1366, 17 February 1912, Page 17

PANAMA CANAL.

1 $ BILL TO BLOCK RAILWAY COM- ! PAN 170S' SHIPS. With a Bill before Congress proposing to orohibit anv railroad-controlled steam- i ship line from operating through the > Panama Uanal, and the announcement of the Pacific Mail Steamship Companj', part of the stuck of which is owned by t the Southern Pacific Railway, that it 1 intends to build four monster passenger liners for operation through the Canal, a situation has arisen (says the San Francisco "Chronicle" of January 17) which is interesting shipping men hero and throughout the country. ' The Bill in question "has the pronouno- , ed backing of President Taft. It has been introduced by Senator Bristow, and is similar to the Flint Bill Which was introduced at the last session. It prohibits railroad ownership or control of steamship lines operating 011 routes which aro competitive with the railroads, and provides that it shall be unlawful for tho railroad lines "to own, lease, operate, control, or have any interest whatsoever, by stock ownership or otherwise, either directly or indirectly, through any holding company, or in auy other man- j ner, in any common carrier by water with which said railroad does or may compete for traffic." . Just what the Pacific Mail Company would do about its plans to build four liners , for the Canal if tliis Bill is enacted is a subject that is provoking much discussion. "The traffic bureau of the Chamber of Commerce is strongly committed in its advocacy of this Bill, as is also tho President Df the 'United States," William R. Wheeler said recently. ' "There seems to be a good show of its parsing at this session of Congress, when several other measures relative to the Canal are to be considered. lam going to Washington next week, and shall certainly do everything in mv power to urge the enactment of this Bill. The principle is right, and there can be no denying that it is right. A strong fight will be made for it, and thero is a good, chance that it will pass." In shipping circles it is considered rather remarkable that the Pacific Mail should have announced an intention of buil/ling four magnificent liners 011 the evo of the discussion of this Bill in Congress. . One opinion that is expressed is that the piirpose is to urge as an argument against tho Bill the statement that it is _ aimed • at tho destruction of he American merchant marine, a 9 it would prohibit the construction and operation of the. liners in question. It is also suggested by those who aro anxious to keep tho Canal free from railroad influence that In the event of the defeat of this Bill it . might actually be the intention of tho Pacific Mail to build the liners on such magnificent lines that competition would be precluded, and after the monopoly was well established to raise the rato so that it would not be seriously competitive with the transcontinental passenger rates. In this case these ships would come under the classification of "commerce destroyers," to uso the language of one of the reports of the Traffic Bureau. Another theory which is advanced in the gossip on this snbjcct is that if the Bill should be enacted the Pacific Mail might attempt to change the ownership of the stock now held by the Southern Pacific. The careful wording of the Bill, however, might make it difficult to preserve, any railroad control in whatever form it should be attempted.