The morning call., 1893-03-12
WHOLLY TO BLAME
Pacific Mail Injured Conn :
merCe.
TAKE AWAY IT'S SUBSIDY.
That Is the Clear Duty of the POST
master-GeneraI Under the Con-
ditions Now Existing.
Special to THE MORNING CALL.

NEW YORK, March 1.-THE most wide
spread interest has prevailed respecting the
subjects of inquiry by the select committee
of Congress on the Panama canal, Pacific
Mail and Panama Railroad matter. and be-
cause of this William Nelson Cromwell,
counsel of the Panama Railroad, and who
represented the company at the investga-
tion, was seen to-day at the company's
Office on Wall street, on his return from
Washington. and asked for a copy OF the
full report. Cromwell said that as the docu-
ment was now Of public record and had
been printed by the Government Office be
would cheerfully furnish copy.
The report, which it is understood was
prepared by Congressman Storer of Ohio,
is an able document and furnished interest
ing reading.
Cromwell expressed great satisfaction
that after taking several hundred pages of
testimony and fully considering every
aspect of the case, the committee had
unanimously reported that there was no
clear ground for the assertion that any ex-
elusive right to cross the isthmus was ever
in terms or by implication secured to the
American corporation or 10 citizens of the
United States to the exclusion of citizens OF
any other country, and that the Govern
ment Of Colombia had never guaranteed
that the United States should control tran
sit or place any limitation on the rights of
shareholders in the railway company or
restrictions in the nationality of the owners
Of its stock. This eXplodes the contention
that citizens of the United States have
any peculiar or especial rights OF
the isthmus. and establishes the fact
that the Panama Railroad derived its
rights directly and entirely from the
Colombian Government under the conces-
sion of 1S46. Unfair statements have been
circulated in the press calculated to inflame
the American public against the ownership
Of any stock In the railroad company by
French interests. and it is a satisfaction,
therefore, 10 see the committee take more
sensible view of the subject and distinctly
decide that 1t fails to see that any law,
treaty, stipulation, contract or obligation
has been violated by the purchase of these
railroad shares by the Panama Canal Com
pany. or that as yet any discrimination has
been attempted against American commerce
or any injustice practiced thereon on ac-
count of such foreign ownership of the
stock.
Tie restrictions and injuries that Ameri-
can trade and commerce have sustained
have been laid Oh them by American citi-
Zens controlling various other American
corporations, and it is not a pleasing sub
ject to contemplate,
The committee further decides that the
culprit is the Pacific Mail, which it has been
discovered entered into collusiye agree
ment with the TranscOntinental Railroad
pool, and thus sold itself to that powerful
body for S1,OOO.0OO per annum. the terms Of
the agreement providing that the Trans
continental pool should absolutely dictate
rates and control the business of the Pacific
Mail, thereby diminishing traffic by way of
the isthmus and iniuring American COM
merce. This was done while some of these
Transcontinental railroads were receiving
vast bOuntes from the Government and
while the Pacific Mail was receiving di-
rect subsidy Of $3.50 600 from the national
treasury.
The committee practically reports that
these corporations, instead OF encouraging
and fostering commerce, as they are espe-
clally obligated to do. have. by such agree
ments, injured trade and violated the law,
and hereafter the Postmaster General should
forfeit any subsidy granted to any such line.
Respecting the Panama canal scandal the
committee concludes that it Is unable to
trace, directly or indirectly. the expend-
ture of any money whatever in a corrupt
way to influence the legislative or executive
action Of the United States Government.
AS there has been so much misstatement
on the subject it is gratifying 20 thus note
that the railroad company has been unani-
mously sustained upon every important
proposition, and is even more firmly estab-
lished in the confidence of the community as
an American corporation. 1t has not dis
eliminated against American interests or
daA 81.
cession, while the Pacific Mail seems to
have placed itself under the ban of the law
and TO have laid itself open to forfeiture of
cuheidfae