The record-union., 1893-03-03
Special to the REcoRD-UN1ox.

Special to the REcoRD-UNIoy.
WASHINGTON. March 1.-The House
Panama Investigating Committee, in its
report to-day, finds that as far as the
treaty of lS4S with New Grenada is con-
cerned, and so far as the concessions
granted to the contracts made with the
present Panama Railroad corporation is
concerned, there is no clear ground for
The assertion that any exclusive right to
cross the isthmus was ever in the terms
granted or by implication secured, either
10 an American corporation or a citizen
OF the United States, to the exclusion of
citizens of any other country. There is
no ground, so far as the evidence before
the committee goes, for the claim that the
Government of New Grenada or the
United States of Colombia ever guaran-
iced that the United States should con-
trol the transit or place any limitation on
the legal rights of shareholders in the
railway company or restriction in the
nationality of its owners of stock.
The committee has done its utmost
IN the limited time before it to investi-
gate the charge that money was ex-
pended to prevent opposition to the plans
OF the canal. 1t has been unable thus far
to trace directly or indirectly the ex-
penditure of any money whatever in a
corrupt way to influence legislative or
executive action by the United States
Government. 1t may be that no invest
igation, however prolonged, after this
lapse of time, could be efficient in making
such discovery, even if such corrupt
of hr,r
subject on which the committee does not
desire authoritatively to express its opin-
ion, further investigation would be
Ruthless"
The report comments upon De Lesseps'
visit to the United States in 1879 and the
remarkable change of sentiment that re-
suited. The American committee was
appointed to convey the impression that
American capital and sympathy was back
of the enterprise.
The committee further say that r. W.
Thompson became Secretary of the
American committee, and resigned his
place in the Cabinet. Thompson stated
that he notified the President, and the
President acquiesced in his resignation
under these circumstances, causing no
severance of the personal friendly rela-
lions between them. Testimony was
taken by the committee showing this ac-
ton on the part of Secretary Thompson
to be great disappointment and surprise
to President Hayes, and he so expressed
himself to others. The committee finds
Thompson for the next three or four
years exceedingly vigilant in watching
legislation, and most active and able in
his efforts and influence to postpone con-
sideration 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 work
the American committee; supervised the
purchases 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 not absolutely the con-
trolling interest in the stock and di-
rectory of the Pacific Mail Company was
owned by individuals and estates very
largely interested in the stock and di-
rectory of the transcontinental roads, and
it was proven that the same individuals
composing the majority of the directory
of the Pacific Mail at that time composed
q majority of the directors present at the
meeting of the Panama Railway Com
pany's directory, at which the contract
between the Pacific Mail and the railroad
company, February l, 1878, was ratified
and executed. That this system for fif-
teen years was diminishing commerce be-
TWEEN New York and San Francisco across
the isthmus was not denied.
SIT seems to the committee that this
state of things cannot be beneficial to the
general interstate trade or commerce of
the country, nor can it see it is of any
particular benefit to our trade with for
eign countries.
1.-The committee recommends that
whenever, under the provisions of the
Mail Subsidy Act, the Postmaster Gem
eral shall enter into contract with any
line of vessels, clause shall be inserted
in the contract to the effect that if a
steamship line shall enter into any com
bination or arrangement with competing
lines of traffic, the result of which is to
diminish traffic or maintain rates of
freight on American commerce, foreign
or domestic, over what free competition
would effect, the contract may be termi-
mated forthwith by the Postmaster-Gen-
eral.
THE committee regrets that SO far as
the ownership of nearly all the stock
goes, control of any American cor
poration. as the Panama Railway is,
should be held in foreign hands, particu-
larly in the hands of liquidator or re-
ceiver of another corporation, also for
eign, appointed by foreign authority and
subject to foreign judicial supervision.
1.-THE committee, in concluding, cannot
refrain from calling attention to what
seems to be an obvious deduction from
the facts shown i'll the interest of the
United States. The 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 competing
lines. or the chance of falling into the
grasp of any monopoly through stock
manipulation"
CONGRESSIONAL.