St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1893-01-14
BEAT THE FRENCH MEN
Pacific Mail Company OutgeneraI
the Receiver OF the Panama
Canal Company.
Real Cause of the Delay Of the
Extension Of the Canal
Franchise.

New YORK, Jan. 13.-The Pacific
Mail Steamship company has outgen-
eraled the Frenchmen who controlled
the Panama railway, according to the
Worlds Washington correspondent. In
the course of a three-eOlumn article, he
says:
Ever since the failure of the great
SWindling canal scheme the shrewd
operators who comprise the Pacific Mail
Steamship company have viewed with
apprehension the prospect of the future
of the Panama railroad. The stock OF
the railroad had passed from American
control at very large prices into the
hands of the canal ring. The franchise
of the railway gave it exclusively the
right of transportation across the 18TH
mus, and the canal people were power
less without the possession OF the prop
erty. The failure OF the canal company
left the railroad stock almost the only
valuable asset.
when the Pacific Mail company
formed a pool with the transcontinental
railway lines to regulate the freight
traffic by way of the isthmuS, the Pana-
ma railroad people were placed in the
position of complainantS. They OBJ
jected to the comparatively small car
goes of goods which the steamships
brought down from San Francisco and
New York Tue Pacific Mail company
received large monthly subsidy from
the railroads, and OftentlmeS the boats
from New I DIRK would arrive at Colon
half-laden, with the result of greatly
diminishing transportation on the rail-
road. The pool was made until broken
by the withdrawal of the Atchison COM
a 10 RI
probably the Northern Pacific are out.
The Gould interests and jim Hill, Of
st. Paul, are just as earnest in their de-
sire to control isthmuS traffic as for
merry.
"A few months ago a representative
of the Pacific Mail went abroad to COM
municate with Receiver Monchicourt.
The burden of his business was that
the Pacific Mail wished a controlling
interest in the Panama railroad shares.
The receiver was in a position where
conflicting interests Influenced him. If
the control of the Panama railroad
passed from the canal the latter would
be at the railroads mercy. M. Monchl-
court has been hopeful all along of the
renewal of the franchise and OF future
work and the completion OF the great
ditch. After much discussion Nj. Mon
CulCOuIb HdluS Il JilCC AOl lA4O OLOOh
which was not satisfactory to the
diplomatlst from New York. He was
willing to give all the stock was worth,
| however.
The receiver would not change the
figures. In his final interview with NJ.
MOnchicOurt the agent Informed the
latter that he (MOnchicOurt) would
realize before long that the value at
tached to the stock was fictitious, also
that the receiver would be glad to sell
| on Pacific Mails terms in due season.
Ere the diplOmatist left Paris he set in
motion the machinery of depression,
the prospects of the canal scheme have
been growing beautifully less. The
friendly aid of President Harrison's
| government was invoked and obtained.
State papers we're drawn UP at the state
department, and the situation of canal
affairs in that republic was as follows:
| The canal interests, through NJ. MOnchi-
court, applied for renewal or a con-
| tinuarion of the franchise for the con-
structiOu of the big ditch, which was
forfeited because of the failure of the
company to fulfill its own part of the
agreement Secretary Foster informed
President NuneZ that it would be eX-
tremely distasteful to the United States
government if the franchise were con-
tinued. Bushnell, of Nebraska, bore
credentials giving him authority to
| speak for the secretary of state.
Although the official internositiOn Of
! the United STATES had been invoked, the
/ Pacific Mails interests deemed it eXpe-
/ dent to use a little private diplomacy OF
! its own. A representative was dis
1 patched to the isthmus with great dis
/ erection as to the arguments he should
use on President NuneZ. The success
of the combined efforts of the state de-
partment and of its agents became ap-
/ parent when a dispatch from Panama
/ "Wednesday announced that the Column
bian government had been shocked by
/ the exposure of the canal frauds in
/ Paris, and it mas deeme ed it wise to de-
! lay extending the canal franchises"