The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1893-03-04
THE PANAMA CASE.
Congressional Committee Makes
a Long Report.
AMERICANS WE'RE NOT CORRUPT,
Pacific Mail Deal venEilated-How Com
Should Have Interoceanic Canal.

WASHINGTON CRY, March 2.-The house
Panama investigating committee i'll its re-
port today finds that as far as the treaty
of 1916 with New Grenada was concerned,
and SO far as the concessions granted to
and the contracts made with the present
Panama railroad corporation are con-
cerned, there is no clear ground for the
assertion that there was ever any exclu-
sive right to cross the isthmus in the
terms granted or by implication Sc
cured either to an American corporation
or citizens of the United States to the ex-
clusion of the citizens Of any other coun-
try. There is no ground. so far as the
evidence before the committee goes, for
the clam that the government of New
Grenada or the United States of Colombia
ever guaranteed that the United States
shall control transit or place any limita-
ton on the legal rights of shareholders in
the railway company or restriction In the
nationality of its owners stock.
The committee has done its utmost in
the limited time before it to investigate the
charge that money was expended to pre-
vent opposition to the plans Of the canal.
1t has been unable thus far to trace, di-
rectly or indirectly, the expenditure of any
tuence legislative or executive action
by the United States government. 1t may
be that no investigation, however pro-
longed, after this lapse of time, could DE
efficient in making such discovery, even
if such corrupt use of money was made.
But this is a subject on which the COM
mittee does not desire authoritatively to
express its opinion. Further investiga-
ho otxy fryi
The report comments upon De Lesseps'
visit to the United States in 1879 and the
remarkable change of sentiment that re-
suited. An American committee was ap-
pointed to convey the impression that
American capital and sympathy were back
of the enterprise, and Il. w. Thompson
became secretary of the American COM
mittee and resigned his place in the cabi-
net. Thompson said he was notified that
the president had acquiesced in his resig-
nation, under these circumstances causing
no severance of personal friendly rela-
tons between them. Testimony was
taken by the committee showing that this
action on the part of Secretary Thompson
was great disappointment and surprise to
President Hayes, and he so expressed him.
self to others. The committee and Thomp-
son for the next three or four years were
exceedingly vigilant in watching legisla-
ton. aud were most active and able in
their efforts to influence and postpone
consideration of any legislation tending
to work injury to the cause Of the Panama
Canal Company. So far as the testimony
goes it shows that Thompson did the work
of the American committee, supervised
the purchases for the construction of the
canal. watched legislation, etc.
Referring to the Pacific Mail and Pan
anna railroad matters, the committee finds:
That the object of the contract between the
Pacific Mali Company and the Panama railroad
was to maintain rates above the level to which
they would fall if free competition between the
several routes was continued. It seems to be
certain that large, ii not absolutely CONTROL.
ing interest in the stock and directory OF the
Pacific Mail Company, owned by individuals
and estates, was largely interested In the stock
and directory of the trancontinental roads. and
ii was proved that the same individuals. COM
posing majority OF the directory Of the Pacific
Mail at that time, composed a majority
Of the directors present at the meeting
of the Panama Railroad Company's
directory at which this contract between the
Pacific Mail and the railroad company, on Feb
ruary l. 1878, was ratified aud executed. That
this system has FOR fifteen years been diminish
cisco across the isthmus il not denied. II seems
to the committee that this state OF things can
not be beneficial to the general interstate trade
or commerce of the country. nor can IL see that
1t is OF any particular benefit to our trade with
foreign countries. The committee recommends
that whenever, under the provisions of the mail
subsidy act, the postmaster general shall
enter into a contract with any line
of vessels a clause shall be inserted
in the contract to the effect that ii .
steamship line shall enter into any combination
arrangement with competing lines of trafiic
the result OF which is to diminish traffic or raise
or maintain rates OF freight on American CON-
merce, foreign or domestic, over what free COM
petition would effect, the contract may be ter
minated forthwith by the postmaster general.
The committee regrets, so far Is the ownership
of nearly all the stock goes. that the control OF
any American corporation, as the Panama rail-
way is, should tie held in foreign hands. par
ticulsrly in the hands of the liquidator and re-
cever OF another corporation. also foreign, APP
pointed by foreign authority and subject TO for
eign judicial supervision.
The committee, in conclusion, cannot
refrain from calling attention to what