New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1892-12-25
PANAMA AND PACIFIC MALL
THE RAILROAD COMPANY ENJoINLD.
AN INJUNCTION TO RESTRAIN II FROM NN"'N'
4 CONTRACT WITH TIE GILLIAN
STT ANSlIp IINE

AN INJUNCTION TO RESTRAIN Il fhoN NN"''
4 CONTRACT WITH TIE GILLIAN
STEAMSHIP LINE.
1uoce 1n.raham Yesterday granted The pe'l'ion 0.
the Pacific Mail steamship Company 10Y y '
Injunction restraining the Panama Fal'i "" 'o'p"''
from making a contract with the C'N'"" .r
lima IN carry through freight TO ports on the i''O
Coast between Panama and Acapulco P'"1'"e
trial OF the case In the supreme Court Inc ca
attracted much attention, largely because the I"'"'
Vail steamship Company is q the la eeN' A"e 0d
lines and because ii was alleged tAai thr ".' my
NJ the Panama Railroad Company, when l. o""ci '''
controlled by foreigners. to the racih' 'i"-i
COMPANY involved danger TO American met
Central and south America and wa III NoI""' o.
the Monroe doctrine. a contract between 'h' i"'''.
pailrood Company and the Pacific Mail steamship
Chmpanv which grants to the steamship company ul'
rkbt to Issue through bills OF ladihe' WIZ 'NP''
February l. 1898 Falling 10 make IaN''Ao'V "'n''
with the steamship company for the rhe"" vi ''''
contract tie railroad company was auo"' u mao"
ARRANGEMENTS with the Gillian line 10 carry lrle", u
and from the ports between Panama ana A'AP."'''
wbau Temporary Injunction restraining thcm IIO"
making such an arrangement was gianted by jung
Truax In the supreme Court. The temporary o."
junction was granted November %, Just as '"'
Panama Railroad Company was about 10 ''o'' ~ Nv
carnations With the CHILEAN steamship Company
TIE motion to make the temporary inluncn'h
permancrt was argued few days later before 'uut'
Inr,aham Edward Lauterbaci. Ffanfhh bU''e'.
and George Hoadly appeared for Inc phi""n anu
rrodor,c r. Coudert opposed tho II ,uon on behA'i
~ tho defendant Judge lngTGham trD" TIE phP'''
md gave his decision Yesterday. The opinion Is 'N
haus,ive and discusses infinitely the salient p""'' III
tec casp A contract made in ls'- Dy 'h' wv"
pares In the suit Is made The basis OF t'' "rI"'
several years previous 10 lo12 u" fahain' i''' "'
C,,nnonv established a line Of steamers TO ran from
l,.fr
1872 the Panama Railroad Company sold 10 u" i"'i"'
,Iou steamship Company TIE steamships ana inc
hueiness together with all the rights ana prNi'E'''
and agreed never again y interest l'SoH IL '',
steamship line running between those pof'S' '"' ~
the privileges then enjoyed was 'he 'S'"'"e
through bills Of ladins fpr trans'suin"''ah "'1''
The contract which expires neNt feDr"irS ""'
supplementary agreement mace III io''. 800
prouortions In which each company NUM- '''
receipts from through freight. image H's'''''"
rc,,ns trat the expiration Of the spccai con ''
Ihri+od in duration TO fifteen years docs Ho' ""'''
,ho right Of the rncihc Mail steamship 0''"P'"A >
receive through bills Of ading ana uo'' hO' ''',''
+so porana railroad Company from lis agreement u
1879 not % interest itself in any Ane pna"E oV
tween the ports Of Panama and Acafu.c"' INV
tontiol facts in the case. Judge lneahan say - "''
a,,,od IN 1872 The Panama Railroad Company
"a 20 tho Pacific Mail steamship Company LOT
80, 900 in cash their "Ccniral American Llh''
ar rs specified in the contract. the s''''''",P '
,4ce conducted by ;hc said railroad upon me I',"'
ocean between the ports of Panama ana "'"P"'
,a tho intermediate ports with the steamships "'-
.hcrc;n and their outfit and appurienanc'S "'",' "
oshore and the good will Of tn" said Ou'lh'a9' -"
~, por,nnt function OF the business Was enc ''''-
~ through rails OF lsdins IN anou'r ci'"'' ~ 10"
contract the railroad company convey" 49,
VIII In tie service and the cailNI"s ""''
Panama and Acapulco together WIN I've -"
rronor,ios and privileges then enjoyed ana "-'''u
p.ver TO engage In any carrying trace Ue'"''' "'
por,s 4 monopoly OF the business was gave" T..
the Pacific Mail atcamsaip company """ -
be a violation of the contract II any o'"'r S'''''F
cornanv was allowed 10 carry through iie'Sh' ''
h.s. norris II the Panama Railroad COMPANY ca"
,o,, dolivor the merchandise which II carries "'''
,ho ,s,hruus destined for these Central America"
,o1s In other companies. il WOnld III ehcct u'A''"'
bx affirmative act the business ana goa VIII WIZ"
IL has sold TO the Plclfc Mail steamship 'oH,','
Il IL mt claimed that tho contract h lh'"i Dc '"e'
,,roh.n envs AVID there is reason 10 tclicNe "''
=, is The lclntiG by that contract bcoahe 'D''
orncr NJ the business with exclusive neh'H ''' Wv
ro. action q; H. hca lneIGel all The m@"sIN'' WIG"
"a. dsfenda3t had used 10 build u9 The business
IN. contract read IN any Other light IS m"ai'Hs'''
and the plan,in parted with t. money i'r h''i''"0
except the steamships. II Is tic goodwin "i ''c
buslness which tie plaintiff seeks u PROJECT ana IL
l. = clear violation q the contract for th' o'-e.4'"h
IN maize contracts with any competing Ln'. ne
provision for lguldatcd damages DOES hpl aPFH /" w.
sc. q, tbr defendants IN demanding ii7 F-ih ''''
he contract Eveey cOn.ldc alton v. goa lal, t'"
honesty. the Judge says. requires ,' .'',t,. .r
contract with tie CMlian steamship No"p''t ""''
after the case has bleA uled'