The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1894-05-13
HAVE SPLIT THE BLANKET.
Agreement of the Panama Railway
and the Pacific NIaiI Is or

and the Pacific Mail Is On.
New York, May 1.-THE understand
ing between the Panama Railroad COM
pany and the Pacific Mail Steamship
company by which the railroad charter
ed the ships of the steamship company
temporarily on this side and ran them
between Colon and this port under
name of the Columbia line is at an
end, and on June Is the railroad COM
pany will put on other steamers.
After the Panama canal went into
the hands of a liquidator, and the con-
tract between the Panama Railroad
company and the Pacific Mail company
expired the railroad company failed to
come to an agreement as to the re-
newal of the contract. The railroad
company having the only route of
communication seemed to hold the
key of the situation and determined to
put on line of steamers of its own on
the Atlantic side and to further the
formation of rival line to the Pa
cific 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 on the
east side, the Newport, City of Para,
and Columbia. An arrangement was
made with the Pacific Mail regarding
the line from Panama to San Francis
CO. This is a short line of the Pacific
Mail running from Panama
up to the west coast of Central
America, as far as Oeos, in Guatemala.
For this line the Pacific Mail company
claimed that it had a perpetual con-
tract with the Panama railroad. The
matter was taken into court and Judge
TruaX granted an injunction against
the railroad company pending deter
mination of the terms of contract. This
was in 1892. The short line is extreme
ly profitable.
The steamers Newport, City of Para,
and Columbia have been run by the
Columbia line at loss and on April
"a, the railroad company asked the Pa
cific Mail company for new arrange
ment. saying that as the Columbian
line had taken the steamers off the
hands of the Pacific Mail by chartering
them. it was thought a reduction ought
to be made in the price paid to the Pa
cific Mail. The Pacific Mail officers had
until May 10 to decide. The contract
expires on June Is. On Thursday word
was received from the Pacific Mail that
the terms proposed by the Panama rail-
road would be agreed to. Yesterday the
three old ships Of the defunct United
States and Brazil line-the Alliance,
Advance and Finance, were taken to
the dry docks at Erie paSln ana Work
was begun upon them to put them in
shape to go into commission. They
have been chartered by the Panama
Railroad company and will be put on
the Columbian line in the place of
the City of Para, Newport and Column
bia
Mr.. Drake, secretary of the Panama
Railroad company, said: st do not
know how the west coast arrangements
between our company and the Pacific
Mail company will be affected. I sup
pose it will continue for the present at
any rate. They would not be foolish
enough to bite off their own noses.
We received word from c. P. Hunt
ington yesterday that the Pacific Mail
would not make the new contract we
proposed, so today men went to work
to get ready the other steamers. I do
nov know what the Pacific Mail people
will do their ships, I am sure"