The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1893-03-03
PANAMA PACIFIC MAIL.
The House Investigating Com
mittee Submit Their Report.
MR.. THOMPSON is SCORCHED.
No Trace Found of Money Used tt
Corrupt Legislative Action.
Some of the Communications Made, j
Adopted BY Congress, VIII Prevent
the Formation of Combines By
Subsidized Companies.

WASHINGTON, March 2.-The House
Panama investigating committee in theil
report today finds that as far back as 184t
with New Greneda concerned and so fan
as concessions granted to and contracts
made with the present Panama railroad
corporation is concerned, there is no clear
ground for the assertion that any exclu-
sive right to cross the isthmus ever in the
terms granted, or by implication, secured
either to an American corporation or to g
citizen of the United States, to the ex-
cIusion of citizens ofany other country on
the ground. So far the evidence before
the committee goes for the claim that the
government of New Grenada or United
States of Columbia ever guaranteed that
the United States shall control transit OF
place any limitation on the legal right OF
stockholders in the railway company, or
restrictions in the nationality of its own
ers OF stock. The committee has done its
utmost in the limited time before it to in
vestigate the charge of money eXpendi-
ture IN opposition to the plans of the
canal. 1t has been unable to thus far
trace directly or indirectly the eXpendi-
ture OF any money whatever IN a corrupt
way to influence Legislative or executive
action of the United S. ates government.
1t may be that no Investigation, how
ever prolonged, after this lapse of time
could be efficient in making such discov-
cry, even If such corrupt use of money
was made, but this is a subject on which
the committee does not desire to authori-
lively express its opinion that further in
vestigation would be entirely fruitless.
The report comments upon De Lesseps'
visit to the United States in 1879 and the
remarkable change of sentiment that re-
suited in the American committee APP
pointed to convey the impression that
American capital and sympathy were
4 back of the enterprise, The committee
further says that r. w. Thompson be-
came secretary of the American commit
tee and resigned place in the cabinet
Mr.. Thompson stated that he notified the
president and the president acquiesced IN
his resignation, under these circumstances
causing no severance of the personal
friendly relations between them. Testi-
mony was taken by the committee show
ing that this action on the part of Secre-
tary Thompson was great disappoint-
ment and surprise to President Hayes
and he so expressed himself to others.
The committee find that Thompson for
the next three or four years was exceed
ingly vigilant in watching legislation and
was most active and able in his efforts
and influence to postpone consideration
OF any legislation tending to work injury
to the cause OF the Panama Canal COM
pany. So far as the testimony goes it
shows that Thompson did the work of the
American committee, supervised pur-
chases for the construction of the canal,
watched legislation, etc.
The object of the contract between the
Pacific Mail company and the Panama
Railroad company was to maintain rates
above the level to which they would fall
If free competition between the several
routes continued. 1t seems to be certain
that very large, if noGDhbsolutely con-
trolling interest in the stock and directory
of the Pacific Mail company owned by
individuals and estates very largely in
terested in the stock and directory of the
rans-continental roads was sold. and it
was proved that the same individuals
composing majority of the directory Of
the Pacific mail at that time composed a
majority OF the directors present at a
meeting of the Panama Railway COM
pany's directory at which the contract
between Pacific mail and the railroad
company, on February /, 1873, was rati-
fed and executed. That this system con-
tlnued for fifteen years, diminishing COM
MERGE between New York and San Fran
cisco across the isthmus, is not denied.
1t seems to the committee that this
state of things cannot be beneficial to the
general inter-state commerce of the coun-
try, nor can it see that it is of any par
ticular benefit to our trade with foreign
countries. The committee recommend
that whenever, under the provisions of
the mail subsidy act, the postmaster
general shall enter into contract with any
line of vessels, clause shall be inserted
in the contract to the effect that if the
steamship line shall enter into any COM
bination, or arrangement, with Compel
ing lines of traffic, the result of which
diminishes or is to diminish traffic. or
raise or maintain freight on American
commerce, foreign or domestic, over
what free competition would af-
feet, the contract may be ter
minated forthwith by the postmaster
general. The committee regrets that so
far as ownership, nearly all the stock
goes at control of any American corpora
ton as the Panama railway is, should be
held in foreign hands, particularly in the
hands OF iquidator or receiver, another
corporation also foreign, appointed by
foreign authority and subject to foreign
judicial supervision.
The committee in concluding, cannot
refrain from calling attention to what
seems to be the obvious deduction from
facts shown that it is to the interest OF
the United States that American people
should absolutely control some outlet
across the isthmus at some point which
shall be used for the benefit of American
trade in general as an open and continu-
GUS competitor, affording no opportunity
for entangling subsidies from great COM
peting lines or a chance of falling into
the grasp of any monopoly through
stock manipulation.
THE NAVAL DISPLAY.