New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1892-11-27
THE PANAMA CONTROVERSY,
PACIFIC NAIL COMPANY'S POSITION.
EFFECT OF THE FRENCH RECEIVERS PoLIOY
ON THE ATLANTIC AND PACIFIC
COASTwISE TRADE.

ON THE ATLANTIC AND PACIFIC
CoAsTwIsE TRADE.
How complete the ruin OF the American coast.
wise trade between the Atlantic and the Pacific
will be in the event of the success Of the policy
adopted by VI. Monchcourt, the French receiver
Of the Panama Canal Company, can be seen
from a little study of the situation. Under the
terms of the treaty Of s46 between the United
States and the Republic of New-Granada, Ameri-
can citizens obtained the right to treat the
Isthmus of Panama, far transit privileges
were concerned, as American soil. and thereby
the business done by the Pacific Mail Steamship
Company, in connection with the Panama Rail-
road, between New-York and San Francisco has
been, to all intents and purposes, purely
domestic coastwise trade. Both companies were
American corporations, working under charters
obtained in the United States, and in the trans
shipment of goods across the Isthmus no question
of foreign customs regulations has been involved.
If, now VI. MonchcOurt, in following out his
policy is allowed to execute the contemplated
contract with the 'Compania sud Americana,
Cbilan corporation owned by British capitalists
and sailing its vessels under the Chillan nag, anu
if at the same time ne carries into elect the
terms of his notice to shippers that no through
bills of ladng will be issued TO the Pacific Mail
Steamship Company after February /, 1892, the
result is easy to see Deprived of its largest and
most profitable business, the Mexican and Central
American trade and of its ability TO give through
bills of lading any freight, the Pacific Nai ono
of the most important steamship lines flying the
American flag, win be driven from the seas. and
the whole coastwise trade between New-fork and
San Francisco will fall into foreign hands. For
eign corporations cannot, of course, avail them
selves of the privileges granted TO the United
| States by treaty, and the shippers will be the
| sufferers, owing 70 the complications that will
| naturally follow the forwarding Of freight by
| foreign lines through foreign territory between
| American ports
The policy would also Peem to be suicidal one
| for the Panama RAILROAD itself. For years the
| Pacific Mail Company has been in receipt OF an
annual subsidy of 100000 from the Iranscon-
tinental Railroad Association large part OF lhis
| has gone to the Panama Railroad. 1t would be
folly to suppose that foreign lines hereafter to be
| established between New-York and Colon, and
| Panama and San Francisco, handicapped as they
would be by customs regulations even though
heavily subsidized by their Governments, could
| make the returns to the Panama Railroad that
| the Pacific Mail has been able 10 make with Its
established business and peculiar transit priv
| eges Another phase Of the situation Is that the
Pacific Mail Company has contract, with ten
years still TO rum 10 carry the mails between New
| York and Colon, and San Francisco and Panama.
| This service would be largely il not altogether
| interrupted by the withdrawal of the companys
| fleet
NJ Monchicodrr docs not stop here, however, in
| his attempt 10 us, the Panama Railroad as an
| instrument for the destruction Of American COM
mcrcla interests, needless Of American treaty
rights, and in entire disregard Of the policy OF
| the United States Government set forth In
| tie Monroe Doctrine The Panama Railroad Com
pany under it's charter granted by the State or
| York has the double right 10 operate
railroad across the Isthmus of Panama and to run
steamship lines in connection Herewith. In 1872,
when the twentyycar contract was executed with
the Pacific Mail Company the former company
sold - the latter for 100000 the privileges In
cluded in the second part of the charter. The
transaction was not a lease or time contract,
but An absolute sale The money was pail for
tha " steamship service" then operated by the
Panama Railroad with all the rights and ap-
nurrcnancas thereto belonging, which included, as
described in the bill OF sale, thc steamers Transit
privileges and good will Of the road Now the
French receiver in violation of the terms OF tnat
instrument. has given formal notice that no more
through bills Of lading will be issued 10 th9
purchaser of those privileges, and has opened
negotiations with foreign corporation lot tl1'
transfer 10 il Of the transit privileges ana goou
will already sold 70 an American corporation;
w r. Grace, & Co are the agents in this city
Of the Compana Sud Americana, and General
John Newton, who was appointed Commissioner
of Public Works by Mr.. Grace when ne was
Mayor, is the nominal president OF the Panama
Railroad Mr. Grace profes>ed most remark
able ignorance of the whole matter when sen s:
Yesterday He said he believed that his firm
was the agent of the company. but that he really
didn't know much about il, and he called on one
of his assistants in the office TO tell what the line
was and whcra il ran. As 10 the ncgotlltlons, ne
had no doubt that they were being conducted
ly cable directly with the officers of the company
in Valparaiso. H..
The matter in its International phases mas
already received the attention of the President
and has been informally discussed with the mem'
bcrs OF the Cabinet.