The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1893-02-15
NO FOREIGN SHIPS.
A Blow at the Proposed
Panama Route,
The Treasury Department Refuses the
New Navigation Company PERMITS
sion to Use Foreign Vessels.

great deal Of correspondence has been
going on for the last two weeks between
Collector of Customs Phelps and the Treas
ury Department IN Washington in regard
to allowing the North American Steamship
Company 10 use foreign ships to run be-
tween the port Of San Francisco and Pan
anna to carry freight for the new Panama
route.
On Monday a decisive answer was re-
ceived By Mr.. Phelps. 1t is as follows:
Regarding the application for permission 10
use foreign steamers as mentioned In your tele-
gam OF the 9Th inst. have been advised by the
Treasury Department that no authority OF law
exists for granting special permits allowing such
vessels 10 engage In the coasting trade OF the
United States Such permission should there
fore be denied by you A l.. SPAULDING,
Acting Secretary Treasury Department.
William /. Locke was shown copy of
the spatoh Yesterday by CALL reporter
and he said it was the first intimation be
had received that such decision had been
reached. He said that if there was no au-
thority of the law existing for granting
special permit for such vessels there was
probably q law which prohibited 1t aud the
decision would cut very little figure with
the company.
Vessels of American build suitable for
the trade are very scarce on the Pacflc
Coast" said MI Locke. land permission to
pany could start of In the trade with frst
class vessels, of which there are a number
OF foreign build in port ready for our use.
However, there are several American ships
Oh the coast in which we have options and
which would answer in a pinch until we
secure suitable vessels from the East or IN
til they could be built here.
"It would not be policy for me TO discuss
the merits of the case until the company
has been officially informed of the decision.
One thing is certain, however, that the
North American Navigation Company will
commence running on schedule time with
fTst-clsss accommodations for its patrons"
Captain William l.. Merry, when a copy
of the dispatch was handed him. said that
it was the first info rmation he had received
that such decision had been reached. He
refused to say anything about II until he
had been officially notified. 1T would not
be courtesy to Mr.. Phelps" he said. ''fOr
me to discuss the question at this time. and
Furthermore" he added, II am not at lib
erty 20 express the views of the company
until the directors have reached decision"
Alexander Center. general agent of the
Pacific Mail Steamship Company, said that
the decision was great blow to their oppO-
sition company. He said he understood it
was the intention of the North American
Navigation Company to put four steamers
on the route between San Francisco and
Panama, which would give them a fort
nightly service, and of course. he added.
that would be big thorn in our side. but
the action Of the Treasury Department puts
a stop to all tnat. They will now have to
secure American vessels, and ii is a pretty
hard thing to find suitable ones on this
coast at present or they will be forced to
build them, and that Will take long time"