New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1875-04-07

Toa............... NEUTRALITY-SUSPICIOUS.. Sl,ll2OOO
George s. Scott. vice-President OF the Pacific Mail
Steamship Company. said that he had not been Officially
informed that the Panama Railroad Company had abro
gated their contract with the steamship company; and
It would be necessary before they could do That 30
days should be given. He thought that would
be a good thing for the Pacific Mail Steamship Company
II the contract was abrogated. He had no belIe'
that any opposition line OF steamships would be started
in his opinion the receipts would not pay the ex
penses OF the engineers. line might he run
via the Panama Railroad, connect IN England with
the coast OF South America for the purpose Of
curing trade 10th certainly could be either
TO New-YOrk San Francisco. TIE West Coast trade
not enough 20 support any single enterprise and he
thought that project would not be carried out end If at
tempted would prove failure. Even II rival steam
ship line started. he thought 1t might be for the
good or the Pacific Mail Steamship Company, As it
might give impetus business, incentive of some
kind being very much wanted at the present time. He
however had idea that such enterprise would be
started by the Panama Railroad Company.
j. G. Mccullough, Vice President OF the Panama Rail
road Company stated that tie aorog2ted contract in
question was made in November December 1874, at
time when the Pacific mail steamers route formed
continuous line, with the Panama Railroad. 10 China
and San Francisco There then two competing
systems Of Western travel and traffic the overland rail
roads aud the Pacific Mail and Panama com
bination Tbs contract between the lat
ter companies provided that the Panama
Taro d should receive share % per cent Of tho
receipts passengers and % cent OF the receipts
from freight San Francsco together with OF the
receipts the China trade When the revolution in
Pacific Mail took place, putting that Company under
the control of the MON Pacific Railroad, the Panama
Railroad longer in condition 10 receive It's share
freight and passengers under the contract, since,
under the circumstances, the Pacific Mall Company
would throw the traffic into the hands OF tue
overland roads Thus the old contract. binding
the interest of the two companies, was FOUND 10 nc
HI,f fhafp
Panama Company resolved that account to a0rcgate
there being provision in the contract authorizing
either party 10 annu il at Will The only reason for an
nuIng the contract Mr. Mccullough said. was because
the Panama Railroad Company thought it did not re-
It's legitimate proportion OF The Increased rates for
freight and passengers. In order 70 remedy THIS 1t
would necessary to make contract or arrange
meDt and this the Pacific Mail Company sad tleY were
perfectly willing do the only question having been
heretofore TO what fair and Legitimate proper
ton. .
The new contract Mr.. Mccullough said. might as well
be made with tho Pacific Mail Company as any other
The Panama Company were perfectly willing to remain
at harmony with the Pacific Mall Company SO long as
they received what they considered their legitimate
the increased rates The object OF annuinS the
contract not to IN opposition 10 the Pacific Mail
COMPANY, favor other company or individuals.
Panama Company ready to contract or arrange
any who will agree TO their terms Already they
received proposals. 10 put on steamers in extension
OF their line. One OF these propositions came FROM
private firm or large shipowLers in this city and the
other from London COMPANY. which Mr. Mccullough
believed had never run It's steamers 10 American waters
No negotiations looking 70 the acceptance OF these offers
had vet been entered into by the Panama Company.
The directors OF the Union Paclic Railroad Company
say they very much pleased with The condition
of affairs the rupture between the Panama and Pa
Pacific Railroads, instead Of the Isthmus here
tOtOre.