The morning call., 1893-01-26
AN UNWISE MOVE.
Mr.. Fellows Stirred Up
Some Hornets.
BUZZING ABOUT HIS EARS.
The Last Pacific Mail Bluff Likely to
Call Down More Than Was
Intended.
BUZZING ABOUT HIS EARS.
Special to THE MORNING CALL

WASHINGTON, Jan. 25.-Fellows' resolu-
tion to investigate the Panama canal and
the Panama Railroad has stirred up hOr
nets nest, which will result in great dis
comfort to the Pacific Mail Steamship Com
pany. There is no doubt but the latter
inspired Fellows TO introduce the resolu-
ton. Huntington and his men are very
much concerned about the contract made
between the Panama Railroad and the
North American Navigation Company. end
the Fellows resolution was sprung at this
time in order to affect North American
stock subscriptions in San Francisco and
elsewhere.
Frank S. Johnson of San Francisco; Z. l..
Oppenheim, secretary and treasurer OF the
Panama Railroad; Colonel Reves. the Pan
ANA agent. accompanied by William n.
Or mwell, the noted lawyer of New York
City. were at the Capitol this morning to
look after their interests
Frank S. johnson said TO the CALL
correspondents: 81 am here with Mr.. Crom-
well. attorney for the Panama road, and
some of the directors and officials. lt is
well that the position OF the Panama Rail-
way directors should be properly under
stood on the coast. The Panama Railroad
Company is here TO invite rather than dis
courage, Investigation. 1t is naturally de-
sired, however, that their affairs be sepa-
rated from those of the Panama Canal
Company. The former is entirely inde-
pendent as an American railway. 1t has
American directors, and is managed en-
tirely in New York. while the Panama
Canal Company Is a French corporation,
has French directors and is managed en-
tirey in France.
There is feeling here that the recent
proposed investigations are instigated by
Huntington and Gould interests and the
Pacific Mail. and are mere bluffs of the par
ties Offering them. They are doing so at
the end OF an expiring Congress and do not
mean business. Their move is merely in
tended TO influence opinion. We are here
to see that this investigation is held. and at
the same time propose that it shall include
the Pacific Mail Steamship Company. We
will carry the war into Africa"
The following resolution was to-day in
tr0duced in the House of REPRESENTATIVES
WHEREAS, In order to develop American mar
itime commerce between the Atlantic and Pa
cihc coasts OF the United states over the IsthmGs
OF Panama this Government pays to the Pacific
Mall Steamship Company 4 subsidy for carrying
It's malls, upon the understanding that said
steamship company would effectively and hon
eslly be devoted 10 the development OF such
traffic; and whereas. while receiving such sub.
sidy upon said understanding said Pacific Mall
Steamship Company entered Into colluslve con.
tracts with the Southern Pacific Railroad COM
pany aud other transc0nlinenlal railroads,
whereby It surrendered Itself and is business 10
the dlclation and control Of said railroad for
fixed annual price. by which suppression OF said
ocean traffic between the Atlantic and Pacific
cOas of the United States WIS purchased, and
producers, manufacturers aud merchants OF the
country were placed IL lie mercy OF the railroad
combinations; ana whereas, the vessels OF said
company feQueatly sal partially empty to
force the carriage Of merchandise by rail-; and
whereas, said steamship company. while as
sisted by GOyernmen aid, has by said unlawful
methods colluSvely diverted said traffic over tie
laud rOuie Instead Of by said ocean route; and
whereas. such acts are in violation OF said sub
sidy provision, constitute an unlawful and cor
rupt pool or combination Tor the suppression Of
American commerce and are contrary 10 public
policy; therefore be II
Resolved, That special committee Of seven be
appointed to investigate the contracts and rela-
tious between Tie Pacific Mail Steamship Com
pJny and the Southern Pacific Rail DAD Com.
pany, Transcontinen al Railroad Association and
other railroads, and 10 ascertain what contracts
or other cOllusiye Arrangements have been made
by said companies whereby traffic BY way OF
the lsthmus Of Panama has been suppressed or
diminished, and whether said steamship COM
pany has been practically absor bed by said all
road companies, and wherein business which 1t
was the cesIgn OF such Government subsidy to
foster has been diverted from the Isthmus of
Panama and the Panama Railroad Company 10
such ltanscOniineDtalr railroad, ana wherein such
acts are detrimental 10 the Interests OF American
maritime commerce aud OF producers manu-
iacturers and merchants Of the United States,
aud wherein such abuses should be suppressed
and such subsidy revosed, and wherein ;he de
velOpment Of ocean trsfic by way Of the Isthmus
OF Panama may be effectually assured.
Mr.. Johnson said further: at will be
seen from the above resolution that there is
no effort on the part OF the Panama road 10
escape the issue. They are ready here TO
meet it. The more their past action are In
vestgated the better their record will ap-
pear. l am in receipt OF some San Fran
cisco papers, in which Richard Gray conf
IDENTIFY discredits the Information contained
in the dispatches from New York concern
ing the North American contract with the
Panama road and declares 1t has never been
signed and never would be. / shall appre-
ciate his modification when he reads the
contract, which is now in San Francisco,
properly executed, giving us all the prefer
entail terms that We have claimed. In rail-
road circles there seems to be a persistent
Of the claim that we have no right
to an exclusive contract. The fact that the
Panama Railroad Company is located in
foreign country shows that the interstate
law has nothing 10 do with it.
The concessions the Panama road enjoys
from the Colombian Government are natu-
rally exclusive in their nature and there Is
ample power to convey an exclusive con-
tract. / see no necessity OF discussing the
legal aspect Of the matter further with the
press. i can only assure all the people of
the coast that We have had the ablest legal
opinions on this subject and are confident
of our ability to maintain our position from
first to last"
1t Is hoped that Congress will give this
matter more consideration than II did the
Bowers resolution of last session. 1t will
be remembered that President Houston of
the Pacific Mail Company visited Washing
ton and that the Bowers resolution was
pigeon-holed by the sub-co mmittee having
It in charge. johnson and his co-workers
say they will not allow the investigation of
the Pacific Mail to sumber, even if they are
obliged to remain here the balance Of the
session. 1t is expected that Houston will
again be on hand when he hears of the
presence here Of the Panama Railroad
people. When Attorney Cromwell appeared
before the Committee on Rules few days
ago, he offered to exhibit the contract made
between the Panama Railroad and the
North American Navigation Company, but
no desire was expressed to see IT, The
Panama people decline 10 allow the con-
nj To hnr mn l. nl,oi