New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-03-01
PART II.
MARCH I, 1893.
PACIFIC MAILS CONTRACT.
TESTIMONY BEFORE THE HOUSE COM
MITTEE
r. HOUSTON AND EDWARD LAUTEEB\CU EX.
PLAIN THE RELATIONS WITH TIE
PANAMA RAILROAD

j.. Is.
PLAIN THE RELATIONS WITH THE
PANAMA RAILROAD.
Washington. Feb. 2s.-J. b. Houston, vice-prcsi-
dent of the Pacific Mail Steamship COMPANY tcs;i-
fed before the Panama Pacific Mail INVESTIGATING
Committee to-day with reference to the affairs Of
che Pacific Mail Steamship Company lie said that
before February |. 1898, when the contract be
tween the Pacific Mail Company and the Panama
Railroad Company expired, the officers of the
Pacific Mail Company went to the Panama Com
,anv's officers to make contract. Before
,he SIGNATURES were affixed notice was received
nv the Pacific Mail Company from the Trans
continental Association that the agreement by
which the association pail the company certain
amount per month would be discontinued. The
poc;6c Mail Company therefore could rot guar
ar,ee the Panama Company the monthly amour;
Il had previously paid. Notice then received
from fhe Panama Railroad Company declining To
regotate further with the Pacific Mail Company,
and notice was also received that the steamship
comnany would no longer he permitted to give
through bills of ladrg over the Panama Railroad
An Injunction was obtained against the Panama
COMPANY as to bills of ladirg Witness had dis
covered that the Panama Railroad was adver-
t;.inc in English papers for English freight and
English ships 10 run between New-lork and AS
pinwal A.,
Mr. Gcary asked witness how he reconcilcd the
agreement by which the railroads were allowed 10
fix rates over. the steamship route with tie "oV-
ernment's policy Of aiding the company IN oiuei
o. daveIon commerce. Mr.. Houston replied: :" Ry
the continuance of stable rates. for IT Is az
mted that steady rates are better for the shipper
49, ,,on ~ for the TRANSPORTER" and the contract
NTH the Transcontinental Association assured
s,oble rates The contract had resulted In cheap
rates 49,,
Mr. Houston said that the Pacific Mall Com
many received n subsidy of So 900 trip from New
Work 10 Aspinwall, and $4,000 trip Tor inc
west coast trip ..e.,
Mr. Geary-Do you think yourselves JustliN'a
in accepting that money which was pald Tor the
development of commerce, when you are III 'he
tran,,ontinental combination?
Mr. Fouston-I don't think it has anythlne
=. do With il The first clause of that act
stated il was for tho purpose OF deVelopihs 'ne
foreign trade of the United states. "h'h t''
hill passed there were two departures moh'h
afterwards. in order TO carry TIE h''iis' we LAW
10 increase departures 10 six per month"; ,n''N
the facts fully justify the pay We got. 'ilerc
has been a decided increase in trade between san
Francisco and the Central and Sou'h America"
coasts rs the result of the contract
of the Pacific Mail Steamship Company. traced
the history of the company and the Agreements
with the Transcontinental Association ana uie
oI;nnar sbips contending that the result was 10
hiring out of chaos business requiring the great
est order and good sense and to eStaoiish al"
maintain natural rates and throw business i"'o
is natural channels. lie said that the raha'h"
Railroad Company's stock was pufch"Se' ~
French CAPITALISTS 10 protect the cahai '"'o'
rr;se Tho Panama Railroad had an agreement
with the Colombian Government under WHICH,
after about S25, 600, 900 had been put INTO the
Panama Canal, the Colombian Government.
stopped work protest OF PRESIDENT rum VI
the Panama Railroad Company. The canal pro-
iectors then found themselves compelled 10 puS
the Panama Railroad stock at a high inquire u
secure the right TO continue WORK
Nr. Iauterbach told of the efforts he had mace
.;ro. tho brcak between the Panama Railroad
Comrarv and the Pacific Mail Company to nave
friordIv relations continued. The Panama KALI
,oad had passcd under French control, ana IL
w.s q ouo,tjon for consideration whether sncn
railroad AT an important stratc2lc pom. '"S Tha
he allowed TO continue a 1oTei.n con PParnad Com
go tLc Transcontinental Association ana ,i,e
Pacific Mail. he thought, beneficial TO thc p.op,e
=, california The Pacific Mail coulu continue
in business against the competition anu .noi, oon
Dive il ont of business made by III" uanSoJtn-
tinental railroads, if it were in unison WIN ,"r
panama Railroad, and Inc was willing TO rnf! ,I
at any time into fair business IL Mere
oharged local rats by the Panama Company
Mr. Drake nber Of the Exes tS,i;ied D1hr ni
C %, "io - nn,, had never made n direct reference
10 nhV Wf;,e @,mnanv II wanted the steamship
company to operate indeptmue inontipenta rail-
,oaas 0 and 1T this the Pacific Mail would not do.
Shppers had been led to believe that s%rnes
by The Tshmus was forty-day serTlec' wne, sers
Vice against fifteen or eighteen days by I'll" Ia
roads The object of the subsidy 70 the rac' no
Mail by the Transcontinental Assoca;io t,a mr
iim;nate the Pacific Mail factor IN trahsp1ii-
,a,i"n business Having ACCOMPLISHED tins; . .he
subsidy was now withdrawn. This closed inc
hearing