The morning call., 1893-01-21
CALLED ITS BLUFF.
No Hope Left for Pacific
Mail.
GENERAL NEWTON GRATIFIED
San Francisco Gets the Trade, ard the
Contracts Signed Leave Nothing
to Be Desired.

NEW YORK, Jan. 20.-General Newton,
president of the Panama Railroad, gave the
CALL correspondent a personal interview
this morning at bis office. After express
ing great pleasure at the completion of ne
gotIatons for the new Colombian line of
steamers, he said, with the utmost emphs-
sis: 81 want 1t said as plainly as possible
that the contract we have made with the
North American Navigation Company,
now that 1t has been completed, is
in nv opinion, perfect; and, / think,
gives the Navigation Company better terms
than we ought to give. 1t Is signed. sealed
and delivered, and Is as stout as the law can
make it. Two of the best lawyers in New
York City ave been employed drawing it
up, and have left no loophole by which any
court can break it. Frank S. johnson has
been persistent. patient nrgotiator. and |
can say with truth that he has literally woI-
ried the lives out of US. have been quoted
as saying that the opposition TO our ne
gotiatons and plans has been due 10 the
desperate efforts of the Pacific Mail people.
/. OF course. nothing can be traced directly to
tqem, but Pm sure all antagonistic action
proceeded from them. We have advices that
the Panama people a.e impatiently waiting
the announcement of the sailing Of our tlrst
steamer. There is the greatest interest in
the new project, and encouraging express
sions from prominent shipping merchants
meet Us on every hand here. The outlook
is in every way bright, and I'm thoroughly
pleased at the prospect"
Mr.. johnson was seen later. lie said:
Everything General Newton asserts about
the contract is true. There is nothing in
the contract that any act OF Congress can
touch. any court repeal, or any Judge enjon.
We lab0red fourteen days over this con-
tract day and night. The best legal talent
here was consulted, and every poSs bic con-
tingency was discussed and discounted. We
simply took the tide at the flood and secured
a contract that in other times and under
other conditions we could never have got
ten. General Newton and the directors of
the Panama road have met us resolutely
with the best of faith and have given us
every encouragement. Colonel Fellows
seems to be acting simply as the attorney of
the Pacific Mail In the bill introduced in
Congress intended IL possible to discourage
subscriptions 10 the North American Com
pany. Let me say in passing that | have
been invited to 20 to Washington by one OF
the Diplomatic representatives of Central
American Government to discuss the new
Pacific Mail subsidies which can be
withdrawn by the Central American Gov
ernments at thirty days notice, ana If
We can perform the. service with good
shiIs, this rich plum will fall TO us.
| want to highly compliment the CALL
and Bulletin on the fight they have made
in this matter. 1t has been magnificent.
General Newton has been so impressed by
their labors that he has ordered 500 copies
of THE CALL 10 be used as pamphlets on
the subject, for distribution among our
friends and Congress"
This mornings Wall-street Daily News
says: II the Pacific Mail Steamship Com
pany thought its game Of bluff would have
any effect, its directors must by this time
be thoroughly disabused Of any such idea.
The Panama Railroad has perfected its
arrangements, and before the termination
of the contract between the two companies.
made on the 1st prox.. the former will be
equipped with steamships on both sides of
the isthmus. That this is a serious matter
for the Pacific Mail Steamship Company
is plain. The company tried to cut down
The Panama roads, and now it not alone
loses the connection altogether. but is CON-
pletely at its mercy, as the road will. of
course, favor It's own new line in every
way. The Pacific Mail has already lost the
subsidy it got from transcontinentsl lines.
which saw no advantage In continuing the
payment, and it has also a new opposition
of clipper lines around Cape Horn. We
can see little hope for the Pacific Nail
Steamship Company under these condl-
tions. 1t has not even show of sympathy.
The transcontinental shippers have long
chafed under the subsidy. which absolutely
prevented any competition In rates and left
them at the mercy of railroads.