The morning call., 1893-03-03

tno isluinuS mas ever Deen granted or Dy
application secured, either to the Ameri-
can corporation or to any citizen of the
United States to the exclusion OF citizens Of
any other country. There was no ground.
so far as the evidence before the committee
goes, for the claimthat the Government Of
New Grenada or of the United. States of
Colombia ever guaranteed that the United
States should control transit or place any
limitation upon the legal rights Of the
shareholders In the railway company, or
any restriction as 10 the nationality of the
owners OF its stock.
The committee has done its utmost, in the
limited time befure it, to investigate the
charge that money had been expended to
prevent opposition TO the plans for the
building Of the canal. 1t has been unable,
thus far, to trace, directly or indirectly, the
expenditure of any money whatever in a
corrupt way to Influence the legislative or
executive action OF the United States Gov
ernmeDt. 1t may be that no investigation,
however prolonged, after this lapse of
time. could be efficient In making such q
discovery. even if such corrupt use Of
money had been made. But this is a sub
teet on which the committee does not de-
sire authoritatively to express its opinion
that further investigation would be entirely
fruitless
The report comments upon De Lesseps
visit the United States in 1879, and the re-
markable change of sentiment that resulted
when an American committee was APP
pointed 10 convey the impression that
American capital and sympathy were back
of the enterprise.
I The committee further says that :R. w.
Thompson became chairman of the Ameri-
can committee, and resigned his place in
the Cabinet Tbompson stated that he
notified the President aud that the Presi-
dent acquiesced in his resiguation-under
these circumstances, thus causing no sever
anee Of the per sonal friendly relations be-
tween them. Testimony was taken by the
committee showing that this acti0n.Gn the
part OF Secretary. THOMPSON was great
disappointment and surprise TO President
Hayes, and that he so expressed him
self 10 others. The committee finds
that Thompson for the next three or
four years was exceedingly Yigilapt in
watching legislation, and most active and
able IN his efforts and influence to POSTPONE
the consideration of any legislation tending
to work injury to the cause Of the Panama
Canal Company. So far as the testimony
goes 1t shows that Thompson did the work
OF the American committee, supervised
purchases Of supplies for the construction
of the canal and watched legislation.
The object of the contract between the
Pacific Mail Company and the Panama
Railroad Company was to maintain rates
above the level TO which they would fall if
free competition between the several
routes had been continued. II seems to be
certain thata very large. if not an abso.
lutely controlling interest in the stock and
directory OF the Pacific Mail Company is
owned by individuals and estates very
largely Interested In the stock and directory
of the transcontinontal roads; and it is
proven that the same individuals COMPOSING
the majority of the directory of the Pacific
Mail at that time composed the majority of
the directors. present at the meetingof the
Panama Railroad Companys directory at
which the contract between the Pacific
Mali and the railroad company on February
/, 1876 was ratified and executed. That
this system for fifteen years diminished
commerce between New York ana San.
Francisco across the isthmus is not denied.
It seems to the committee that this state OF
things cannot be beneficial to the general
interstate trade or commerce of the eoun-
try, nor can it see. that it is of any partl-
cular benefit 10 our trade with foreign
countries.
The commtte recommends that when
ever, under the provisions OF the mail sub
sldy act, the Postmast General shall enter
into contract with any line of vessels a
clause shall be inserted in the contract to
the effect thatlf the steamship line shall
enter into any combination or arrangement
with competing lines Of traffic, the result of
which is to diminish traffic or to raise or
maintain rates of freight on American com
meree, foreign or domestic, over what free
competition would affect, the contract nay
be terminated forthwith by the Postmaster
General
The committee regrets that, SO far as the
ownership of nearly all the stock goes, the
control of any American corporation, as is
the Panama railway, should be held in
foreign hands, and particularly in the
hands of the liqnidator or receiver of
another corporation. also foreign. appointed
by foreign authority and subject to foreig Ign
Judicial supervision.
The committee, in concluding, cannot re-
frain from calling attention to what seems
to be the obvious deduction from the facts
shown in the interest of the United. States.
The American peGple should absolutely con-
troll some outlet across the isthmus at some
point which shall be used for the benefit Of
American trade in general as an open and
continuous competitor, affording no oppor-
tunity for entanghng subsidies frour great
competing lines and no chance of falling
into the grasp of any mono opOly through
stock manipulation;
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