New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1892-11-29
PANAMA AND PACIFIC MAIL.
THE RAILROADS. SIDE OF THE CASE.
3: :, DRAKE TELLS WHY THE NOTICE ABOUT

T. !, DRAKE TELLS wnY THE NOTICE ABOUT
ruporGu BILLS Or LADING WAS -SSVED.
The recent action taken by the Pacific Mall Steam
ship COMPANY obtain an Injunction IN the supreme
Cc,,t restraining the Panama Railroad COmplny from
making 4 contract with tn Clilan steamship Inc
and the notice served by the railroad that after FEB
runrr ! 1893 no through bils % adins would BE- re
ce,ved from thc Pacific Mall steamship Company, hnVe
created great deal Of interest In shipping cT''s'
and fear. have been expressed that This ac1on WON"
be a severe bow 10 American coa-twis- trade
f. A. Drake one Of the directors Of the Panama
Railroad Company aud lis assistant secretary anu
treasurer Yesterday defended the course Of the rail-
road and mad, the following statements concerning
the controversy:
.Th. general business contract between the Panama
Railroad Company and the Pacifc Mail steamship
Company expires on February |, 1903 THIS coh'r"o'
was made In l-7'. and the present board OF directors
found II In force when they took Office. and are III u"
wise responsible FOR lts provisions For many months
past negotiations have been IN progress between 'he
two companies for ID" pnrpo'" OF establishing '"e
articles Of u new agreement Several forms VI ne"
contract had Teen discussed and sevrralN SCI asiue'
wlen was at length proposed by the Officers VI INC
steamship company that new agreement shomil pc
made ,usod upon substituted rates without guarantee
The meaning of ih- that The two companies shoniu
share In the amounts received for freight '"h'P""
over the lsthmu, ana carried Jointly bi them III Ger.
! tain definite proportions. Thu arrangement WON"
have been acceptable to the railroad company u any
guarantee Of good faith had lcen offered by the steam
ship company a, required by the representatives,
Of The railroad int this guarantee was refused, ana
hi, constitutes the whole OF the difficulty between u"
steamship company aud the railroad company
The necessity for The requirement becomes APP
/ parent when look over certain contract 'AN'ng
~ the tine between 'hr Pacific Mall steamship Com
paily aud he TIansconincnlJl Association OF Ran
roads, the steamship company WIS ub>ldzrd bl
the railroads forming that a,sOcation and ia"
object Of III" agreement existing between ia" trihhlp
company and that a. ocilton to keep down. with
IN a certain limit the amount 81 freight between New
York and Francisco, n VIII appear plainly rom
the following extracts from IA" agreement i'"l'.
The Pacific Mai steamship Company permitted Tia"
railroad syndicate 10 IN the rates at which through
freight between New York and francisco. ana all
passengers. sha; b. Transported 10y The vessel from
the port Of New York the port Of Francisco. ana
from tie port Of Francisco TO the port 81 New
York The agreement also provides that ONLY sn'h
passengers and such freight be- obtained under
rates fixed by said party Of the nr, part Ohc Trans
continental Association shall b" transferred from New
York 20 Francisco. and from san franci co TO
New York That there may be- no further question
a. 10 bearing Of these extracts. quot" further
The provision that the syndicate OF nroGdS shall hay"
entire and exclusive control Of all the through buI
hess Of III said steamship company between NewNork
freight or passcnger- shall BE- taken except ~ price,
10 lee HS,d ly thr party Of the first part ana 10y lt'
consent
1T IS uncertain whether or not The TanSc'niin"n
tai Association has been dissolved. Lni on" ihlng J.
certain i,t The southern Pacific Railroad one Of ia"
members Of That association. Is most Interested Ia ih'
case
Alarming rImor. tha; The Monror Doctrine j.
nssaii,d ha,~ been In motion and the rights ~
the Iuii.d state, Government ar" questioned. ana I"
is said rhat tie transit route the ISihur> l. 10
b.. used for tAe b,nrf Of foreign gov'rum"nt Nr.
Mouchlcourf tac receiver o. o." Panama Canal ""
pnny. b, credited with being Office u 'h" French
Government. ana b. T. charged will having taken
mes .ur.. 10 drlv. away American commcrc" from ~"
l-hmu, route.
Mr. Monchleourt l. not officer oi the French
Government and the French Government ga nothing
whatever To- % Win ihe case. Tn MAJORITY 81 IT,"
railroad stock D. ga hand o. French c'"ns. hav
ing been honestly puroha."i isom American c'"n'
Il, the canal company of high figure. Tie bonds
of railroad company hANr 10 BE- redeemed ana IN
i-rrsi paid them, aud stock Obtained at c''' "i
about 800 certainty deserves di tid"ud now ana then
After the c.argr- OF 10" railroad are paid 'Er
would remain about PEI cent n dividend on each
share Of stock That /, small remuneration.
The lmmedlai- occasion all thi, disturhaucr was
m. notification 'ion The railroad orc" 10 le Pacific
Mail steamship Company Of the Withdrawal u O."
privilege - through l, OF adius sp-cn'd III various
NJ par'. agreements. TO which the Panama Railroad
Company. The Padhc Mai steamship Company ana
.oni. oih"r steamship lir,. scr" pariIr- Thee
agreements simply pIoViurd 0n ih"r iHrr for nor'
fo b.. given TWO month. sA months prior To ~"
revocation OF ihr agreement. Ihi> notice, 70 must
lr. remarked had righ 10 gsv" ANY lime. ~ IN
odliAry matte 81 bnslu'>s t' documents h"uI-'lv"s
iirni ,hny ih, nodr Of revocation
Mr. Munchicour had nothing Ia DO Win The
resolution fu hr-a, OH guItlOus with ~" uOit"
Of the REVOCATION OF the billa VI lIdng. nIs b'"n
charged. Thrsi acts were done hy the board 0i I'll
rector. 81 No." railroad company. consisting 81 thirteen
members. on!y Of whom iulrigu born.
FOR month, pat thr Panama Railroad COMPANY
has boon IN negotiation 20 obtain American steamers
on a ln- b,t New York ana Colon. md i ready
~ cute: hi.in,-- relations and through hill, 81
lndlns WIKI American coast liz" STEAMERS between
san Fiancl-rJ and Panama. excepting the Pacific
Mail steamship Company TIA" miliOad company,
owing 10 II contract made Tor the benefit o. spectators
in ls72 Which /. now bror. The couri- nuds Itself
unable ia mnuguratr liur 81 it, own ihrrr. The
railroad company IS doing all tat Il ran do 70 rsinh
li~' American line, between New ! orb ana san Fran.
cl.cp free from all ahliaon with the transcontincnlI
railroad routes. FOR tho purpose ~ ircuS the bushes,
between New YoT, and san Francisco. which IN u"
past has been hampcrrd hy r.,triCilnna and 10
insure 4 development ot lafg" trade, which II eE-
poet, 10 o-iald~'" I'd between tine ca~i and W"si
cOa~i- OF America