New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1892-03-08
PACIFIC NAIL AND PANAMA.
WILL THE RAILROAD RUN STEAMERS?
RUMoRS ABOUT THE RELATIONS BETWEEN THE
TWO CoMPANIES-wHAT is SAID
on BOTH SIDE

on BOTH SIDES.
1t will he nearly year before the present con
tract of the Pacific Mail Steamship Company with
the Panama Railroad Company expires, but ru
mOrs are already life of what will be done when
that contract expires The Pacific Mail Company
now pays so, 900 month 10 the Panama Rail
road for the transportation Of its through freight
across the isthmus. the company used to pay
$4,000 a month before the present contract was
made.
The stock of the Panama Railroad is owned by
a Paris syndicate representing the Panama Canal
Company. The stock Is said TO be all hypothe-
Gated, but the hypOthecatiO ion does not carry the
power of voting the Paris stockholders can
ma Ike the terms by which the freight of the Pacific
Mail is carried from Colon TO Panama. in
two or three months the subject OF the new con
tract will come up for consideration by the rail
road company. 1t is reported that the company
intends TO ask the Pacific Mail to renew the con-
tract at the old price of $4,000 "A month, and
that if the Pacific Mail people refuse the rail
road viii put on line of steamers of its own
from Colon 70 York, and one up the west coast
from Panama.
The Panama Railroad is an American corpora
ton. and its officers ,re of necessity Americans.
The vast majority Of the stock WAS bought by
tie Panama Canal Company, lie alse the raj rold
company had right of way across the isthmus
and il was necessary TO secure the permission of
the railroad company Ia build the canal. The
stock was sold by tie American holders at con-
sidcraby over 200.
j. b. Houston vice-presdcnt Of the Pacific
Nail Company. said yesterday: Il have heard
Of no intention of the Panama Railroad to put
its own lines of steamers il the Pacific Mail
did not come to its terms when the present con-
tract expires, nor do | believe such q plan
feasible. Our company has the perpetual
privilege of running steamers mp the west coast.
When put steamers there We bought
tie steamers that the Panama Railroad was send
ing up the west coast, and made perpetual agree
ment that the railroad company should not run
steamers in opposition under u penalty OF Sl0, 900
lOr each steamer. ANY rival line which might be
put on between Colon and New-Yorl, would not
pay. We have the Government mail carrying
contracts and contracts with the Central Amer
lean Republics | believe it would be cheaper
for us not to have contract with the Panama
Railroad, and send freight across the Isthmus
at tie local freight rates than it is TO pay the
money we do Tie $4,000 we pay each
month is only for one class of freight. We pay
the Panama Railroad in all about $4,000 a
month. However, We have not vet been threatened
by the railroad company with the starting of a
rival steamship line or an advance on the amount
we are now paving per month Such stories are
started to affect stocks.
Ernest L. Oppenheim, secretary and treasure:
of the Panama Railroad Company, said: =" The
matter has only been talked over in cursory
way definite plans have been decided upon
and will not be for at least two months. NO
proposition OF any kind has been made 10 the
Pacific Mail regarding renewal of It's contract.
which will not expire until next February. There
is nothing TO be said until the matter has been
considered by our company. which will not be
for At least t-vD months. As tn the Pacific Mall
having a perpetual right to run steamers up the
west coast as against the Panama Railroad Com
pany under forfeit OF $4,000 for each steamer
we send out all l eay is that the directors
of this company know Of no such contract II
Z existS