The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1892-11-30
THE PANAMA RAILWAY ROW.


THE PANAMA RAILWAY ROW.
Secretary Elkins Suggests that General New
ton Should Resign One of His Offices.
SPECIAL to the Indianapolis Journal
WASHINGTON, Nov. 29.-Secretary Elkins,
In his official capacity. promises TO become
@ conspicuous figure IL the Panama railway
proceedings. whereby American interests
are so seriously jeopardized. Secretary
Elkins's attention was the other day d.
rected to the fact that Gen. John Newton.
who is president of the Panama Railroad
Company. is a major-general on the retired
list of the United States army. The Pan
ANA Railroad Company was organized un-
der the laws of New York and given q char
ter which guaranteed that the enterprise
should always be controlled by American
stockholders. The company passed almost
entirely into French hands, but General
Newton has remained as president and has
regularly drawn both the salaries OF a re-
tired United States army officer and OF the
president OF a railroad company winch only
awaited the expiration Of its contract obi
cations to immediately attack American
interests. AS soon as Secretary Elkinss
attention was drawn to this state of af-
fairs be recognized that General Newton
was occupying q commercial position in
consistent with the spirit of his military
position and inimical to the interests OF
the American government. under whose
flag he is still enrolled, since officers of the
retired list are considered by the War De-
partment as being still in the service of the
country. 1t is stated that Secretary
Elkins, In view OF General New
toms anomalous position. has addressed
hIm o letter In which, after direct
Ing his attention TO the inconsistency
of his two salaried offices. he suggests TO
him. by animation. at least, the Droprlety
of resigning one position or the other.
ThQra - 0naidarah ia INDIGNATION hare
over the action of General Newton. espe-
cially since the American stockholders OF
the Panama railway have been misled IN
their dealings and the government has
been so grossly treated. and if he does not
get out of bis place voluntarily ii is likely
that precipitate action will put him out of
the army. Congress Is almost sure TO take
the Panama question in hand and deal
with il vigorously from an American stand
point.
What a Director Of the COMPANY Says.
NEW YORK. Nov. 29.-The recent action
taken by the Pacific Mail Steamship Com
pany to obtain an injunction in the
Supreme Court restraining the Panama
Railroad Company from making q contract
with another steamship line. and the
notice served by the railroad that after
Feb. !. 1895, no through bills of Iading
would be received from the Pacific Mail
Steamship Company, have created q great
deal of interest in shipping circles and
fears "a been expressed that this action
would be O severe blow to American coast
wise trade.
E. A. Drake, Q director Of the Panama
Railroad Company, says: lit is uncertain
whether or not the Transcontinental Asso-
citation has been dissolved, but one thing
ls certain. that the Southern Pacific rail-
road, one of the members of that associs-
bon, is most interested in this case. Alarm
Ing rumors that the Monroe doctrine is as
sailed have been set in motion and the
rights of the United States government
are questioned. and it 10 said that the tran
SIT route over the lsthmus Is to be used Tor
the benefit of q foreign government. Mr.
Monchicourt, the receiver of the Panama
Canal Company. is credited with being an
oficer of the French government. and he
is charged with having taken measures to
drive away American from the
officer of the French government. and
the French government has nothing what
ever to do with the case. The majority or
the railroad stock 10 in the hands of French
citizens. having been honestly purchased
from American citizens by the canal COM
pany at q high figure. The bonds of the
railroad company have to be redeemed and
interest paid on them, and stock obtained
- - 1OoN "a oOCab ~ othAJ V q
dividend now and then. After the fixed
charges of the railroad are paid there
would remain about 3 per cent. as a divid-
End on each share of stock. That is q
small remuneration.
1.-The immediate occasion of all this dis
fnrbance was the notification from the
railroad office to the Pacific Mail Steam
ship Company of the withdrawal OF the
privilege of true bills of lsding specified in
various tripartite agreements, to which the
Panama Railroad Company. the Pacific
Mail Steamship Company and some other
Bhip lines were parties. These agreements
Bimply provided on their face for n notice
TO be given two months or six months
prlor TO the revocation of the agreement.
The notice. lt must be remarked. we had q
right to give any time az an ordinary mat
ter OF business. the documents themselves
furnishing the mode of revocation. MI.
Monchicourt had nothing to do with the
resolution to break off negotiations or with
the notice of the revocation of the bills
Of lading, as has been charged. These
acts were done by the board of directors
Of the railroad company, consisting
Of thirteen members, only two OF
whom were foreign born. For months past
the Panama Railroad Company has been
In negotiation TO obtain American steam
srs on a line between New York and Colon
Ind is ready to enter into business reia-
lions and Issue through bills of lsding with
American coast-line steamers between San
Francisco and Panama. excepting the Pa
cihc Mail Steamship Company. The rail-
road ompan owing to q contract made
for the benefit of spectators In 1872, which
now before the courts. finds itself unable
10 inaugurate a line of its own there. The
railroad company IL doing all il can to es-
tablish American lines between New York
md San Francisco, free from all utilization
with the transcontinental railroad routes.
for the purpose of freeing the business Of
New York and San Francisco, which in the
past has been so hampered by restrictions
and TO insure q development of a large
2adA ~hInh ~ nv 0af - a nafn ahn1
between the east and west coasts of Amer
lea"
PERMANENT BUREAU ADVOCATED.