The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1893-01-14
HOW THE DEAL WAS MADE.
An Agreement to Furnish Business
Broken i'm the Interest of Trans
continental Railroads.
Special to THE MORNING CALI

NEW YORK, Jan. 13-The Pacific Mail
Steamship Company has outgeneraled the
Frenchmen who controlled the Panama
Railway. according to the Worlds Wash
ington correspondent. In the course of a
three-eolumn article he says: Ever since
the failure of the great swindling canal
scheme the shrewd operators who comprise
the Pacific Mail Steamship Company have
viewed with apprehension the prospect OF
the future of the Panama Railroad. The
stock of the railroad has passed FROM
American control at very exorbitant prices
into the hands of the canal ring. The fran
chise of the railway gave it the exclusive
right of transportation across the isthmas,
and the canal people were powerless with
cut the possession of the property. The
failure OF the canal company left the rail-
road stock almost the only valuable asset,
and shares, numbering 65. 5.534 out OF total
OF 10000, secured by the canal people had
passed into the hands OF receiver
appointed in France. A Paris dispatch
gave out the terms of the holding Of the
63, 534 shares exactly as the receiver Of the
canal company desired the public to be-
lieve. 'Al the stock of the Panama Rail-
road, the receiver will say, if he is pressed.
is out of the control of this office, except
the equity of redemption The actual fact
is only 3d. 900 shares, held by Cheramy, are
in hook. as it were, for the benefit of the
unpaid canal contractors; the $1,000 held by
HYronimous and 1921 held by Boudet are
still practically unpledged and are at the
disposal of the canal receiver. HyroDmoES
was formerly treasurer of the canal COM
pany; Boudet was the late secretary. They
are in the employ of the receiver aud have
the Panama shares in their names simply
as a means of safety. The receiver is pro-
tecting the assets as long as possible.
protection which would be Investigated and
upset very quickly anywhere but in France.
where. until very recently. the energies Of
the Government have been directed to cover
everything adverse to the canal ring.
when the Pacific Mail formed IA pool
with The transeontinental railway lines 10
regulate freight traffic by the way OF the
isthmus, the Panama Railroad people were
placed in the position of complainants.
They objected to the comparatively small
cargoes of goods which the steamships
brought down from San Francisco and New
York. The Pacific Mail Company received
a large monthly subsidy from the railroads,
and often times the boats from New York
would arrive at Colon half.laden. with the
result of greatly diminishing the trans
portation OF the railroad.
1.-The pool was maintained until broken
by the withdrawal Of the Atchison Coa-
pany. At present the AtchisOn. and prob
ably the Northern Pacific. are out, but the
Huntington lines. the Gould interests and
Jim II IN of St. Paul are just as earnest in
the desire TO control the isthmus traffic as
formerly.
"A few months ago a representative II
The Pacific Mail went abroad TO commuui-
caie with Receiver MonchicouFt. The nts
den Of his business was that the Pac nc
Mail Wished controlling Interest Ia the
Panama Railroad. The shares held by
llYronim0us would he enough 20 secure
mai 8Tiiy Of TIE stock n tbe voting list The
receiver was in a uositioa where ihe eOn-
hiciing Interests Influenced him. IL tie
control Of the Panama Railroad passed
irnm the canal. tue latter wsuld be SO tne
railroads mercy Mouchicolri has been
hopefal all along % The Tenen % 81 the
franchise aud "a fainre work on an1 tho
com pleiiun Il the great ditch After much
discussion Monchicourt named price
for the stock which was not satisfactory Go
the dipl0matist from New York. lie was