New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1892-11-26
A MENACE TO THE NATION.
FRENCH INFLUENCE ON THE IsTHdUs.
THE COURTS ASKED TO PROTECT THE PACIFIC
MAIL STEAMSHIP COMPANY FROM THE
PANAMA RAILROAD CON-
pANY's RECEIVER.

pANY'S RECEIVER.
The Pacific Mail Steamship Company, through
its attorney, Edward Lauterbach applied yester-
day TO Judge 1ruax in Supreme Court, Chambers,
for an Injunction restraining the Panama Rail-
road Company from executing a contemplated
contract with the Chilian steamship line now
plying between Panama and Calao. The con-
tract in question would give certain distinct
advantages in favor of the Chilian line in the
event of their extending their service from points
below Panama to points above, as far north as
Acapulco. which the Pacific Mail Company be-
eves TO be in violation OF it's contract rights
with the railroad company temporary iniunc-
ton was granted, rcturnable before the same
court on Tuesday next.
This application and the recent action OF the
railroad company in serving notice on
shippers that on and after February l.
1893, no through bills of lading from
the Atlantic TO the Pacific would be accepted
from the American representatives OF the COM
pany, and that all traffic arrangements nov exist
ing between the railroad and the Pacific Mail
Steamship Company would then be terminated,
call attention 10 subject OF vast importance 10
the American people, and one that bids fair to
become the subject Of international complications.
The Panama Railroad Company is corporation
organized and chartered under the laws OF the
State of New-York The road was built by Ameri-
can capital and has always been nominally under
American management but some years ago
majority of the stock Of The road acquired
by the Panama Canal Company, French corpora
tion which has since controlled its policy.
AN ANOMALOUS SITUATION.
When the great crash Of the Panama Canal
Companv came. and that corporation went into
the hands of a receiver the railroad was left as
the most valuable, and in fact almost the only,
asset Under the French law NJ Monchicourt, the
receiver and judicial liqudator, is an officer OF
the French Government 80 that the anomalous
situation is now presented Of an American rail-
road, built under special treaty by American
enterprise and capital for the benefit OF American
trade, being practically owned and operated by
foreign Government and used by that Govern
ment for the injury of American commerce and the
obteration Of American rights
The condi ions under which the Panama Kali
road was built and the grounds upon which the
Pacific Mail Steamship Company claims its right
to restrain the French receiver from taking such
action as would give the control of the coastwise
trade on both the Atlantic and Pacific to foreign
steamship lines, at the same time driving from
the seas the Pacific Mail, almost the only great
steamship line that flies the American flag, are
briefly as follows: By the Treaty of ls46 be-
tween the United States and the Republic Of New
Granada now the United States OF Colombia, the
absolute neutrality of the Isthmus of Panama and
the right of assuming protcctorate over 1t were
guaranteed 70 the United States Government. At
the same time all facilities and privileges FOR the
Use of the isthmus and it's ports and roadways
were conceded to American citizens and 10 Ameri-
can shipping thus placing the people of the United
States and their merchant marine on an absolute
equality With the citizens of New-Granada.
These provisions were considered necessary before
the railroad should be built in order 10 preserve in
| tact the principles of the Monroe Doctrine The
care which was taken in framing the treaty and
drawing the charter of the road shows the i'm.
portance which the Government attached TO those
principles 1t is also apparent that in securing
the peculiar privileges granted under the treaty
the UiNed States Government Intended TO uso
them rs an instrumentality for building up and
controlling American commerce. There %
further provision in the treaty that no canal or
other method of transit across the isthmus should
be constructed without the consent of the rail-
road company.
MOST VALUABLE APPURTENANCE.
When, in 1872, the Pacific Mail Steamship
Company and tho Panama Railroad Company
entered into the contract now about to expire the
railroad company was the owner of several lines
Of steamers plying between Panama and the Pacific
ports of Central and South America. The steam
ship company pur rased these lines, together with
the good will Of the road and all the rights
arpurtenant TO the trade, Of which one Of tho
most valuable was the issue of through bills OF
lading
The control of the railroad secured by the
canal company because of the treaty provision
by which the consent of the road was necessary
before a charter for the building of the canal
could be granted. This consent was obtained by
the purchase of the road which went into tho
hands of the French corporation without any
effective protest being made on the ground OF
an Infringement Of American rights under tie
treaty of $40, and since then American interests
have been ignored in its management, while
French interests have been gradually coming to
tho front, until now the property is actually IN
the hands of the French Government Under the
policy adopted by NJ Monchicourt. not only docs
a further violation of American treaty rights
seem likely, but an attempt is being made to
deprive the Pacific Mail Steamship Company Of
the property rights which they claim theirs
under the contract of s72. This is to be ac
complshcd by the refusal of the railroad TO issue
any moro through bills Of lading. and the transfer
Of the GOOD will of the road, far as it affects
business on the Pacific. TO a foreign steamship
line owned by English capital and flying the
Chilian flag
DISASTER IS THREATENED
II the French receiver is successful in his
ATTEMPT the ruin OF the American shipping trade
will he almost complete. The Pacific Mail Steam
ship Company is about the only line doing an
important business. which flies the Stars and
Stripes II has operated for many years four
coasting lircs with the Isthmus Of Panama az
a centre II now has three steamers q month
running each way between Ncw-Yorz and Colon;
two each way between Panama ard San Fran
cisco: one each way between Ianama and Aca-
pnlco: and always one. and during the coffee
season two and sometimes three, each way be-
tween the western ports OF Costa Rica Honduras,
Salvador and Guatemala. Both the San Fran
cisco and Acapulco steamers call at tie chief
IL. A