New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-05-12
PACIFIC MAIL is OUT.
ITS CONTRACT WITH THE PAN ANA RAIL
ROAD NOT TO BE RENEWED.
STEAMERS OF THE OLD BRAZIL LINE CHARTERED
BY THE COLUMBIAN IINE-ARKAN"h-
MENTs FOR WEST COAST TRAFFIC
NOT COMPLETE

NOT COMPLETED
The understanding between the Panama Railroad
Company and the Pacific Mail Steamship Company
NV which the railroad company chartered the ships
OF the steamship company on this side ana r".
them between Colon and this port under the name o.
the Columbian Line, is at an end ana on June -
the railroad company will put ON other steamers
After the Panama Canal went into the hands or a
lquidator. and the contract between the "i''
Railroad and the Pacific Mail expired, the rallroau
coupany and the steamship company failed to come
10 an agreement as to the renewal OF the contract
The railroad company having the only lsthhlaii
route OF communication seemed to hold the Key o.
the situation, and determined 10 put on Inc VI
steamers of its own on the Atlantic sl'e anu 4"
further the formation OF rival line to the Pdchc
Mail on the west coast. The result Of the whole
thing was the formation Of the Columbian Line
which chartered the steamers of the Pacific Mail Ga
this side-the Newport City of Para and Colombo
An ARRANGEMENT was made with the Pacific Mall re
garding the line from Panama TO san Francisco
There is a short line of the Pacific Mail runnnN
from Panama UP to the west coast Of Central
America. far Oeos, in Guatemala. fOr th'S
line the Pacific Mail Company claimed that 1t haH
a perpetual contract with the Panama Raiiroa"'
The matter was taken into the courts. and Judge
Truax granted Injunction against the raiiro"'
company pending a determination OF the terms
of the contract. This was In 1877 Inc snort HAe
is extremely profitable. T. A. Drake secretary
of the Panama Railroad Company, said yes'eI-
case until March. 1 believe we are now IN the
middle OF May" The steamers Newport CITY OF
Para and Colombia have been run by the Colunl-
bian Line at a loss and on April "a the rairoad
company asked the Pacific Mail Company LOT
new ARRANGEMENT. saying that. as the C9lumbah
Line had taken the steamers off the hands OF me
Pacific Mail by chartcring them, 1t was thougni
that reduction should be made in the prlce pal1
10 the Pacific Mail. The Pacific Mail ofnclas had
until May 10 to decide. The contract expires Oh
on Thursday word was received from the Pacific
Mail that the terms proposed by the Panama Ran
road would be agreed to. Yesterday morning the
three unsod ships of the defunct United states ana
Brazil Ilne-the Alliance, Advance ana FINANCE
were taken TO the drydocks az Erie Basin ana WORK
was begun upon them TO put them IN shape 10 20
into commission. They have been chartered by tie
Panama Railroad Company and Will be put on tne
Columbian Line in place of the CITY OF Para' New
port and Colombia.
Mr. Drake said yesterday: II do not Know now
the west coast arrangement between our company
and the Pacific Mail Will be effected suppose II
will continue for the present at any rate. lney
would not be foolish enough TO bite OF their own
noses. We received word from C +. Huntington
yesterday that the Pacific Mail would not make the
new contract proposed. so to-day men went 10
work to get ready the other steamers / 90 not
know what the Pacific Mail people Will do with their
ships am sure.
TROUBLE IN WESTERN FREIGHT RATES.
The decentralization in freight rates among the
roads leading westward from Chicago has led 10
earnest efforts to re-estabsh the Western Freight
Association. Conferences were held here yesterday