The morning call., 1894-05-13
OUT OF THE WAY.
Pacific Mail Dealt a Hard
Blow.
NO MORE THROUGH TRADE.
New York Business Controlled bv
the Panama Road.
HAS ITS OWN STEAMERS NOW.
1t Will Carry Freight at Living
Rates for San Francisco
Merchants.
HAS IT'S OWN STEAMERS NOW.

NEW YORK. Nav 12.-The understand
ing between the Pan anna Railroad Com,
pany ana the Pacific Mail Steamship
Company. by which the railroad company
chartered the ships of the steamship CON-
pany temporarily On this side and ran
them between Colon and this port under
the name of the Columbia line. Is at an
end, ana on June Is the railroad company
will put on other steamers.
After the Panama canal went into the
hands of liquidator. and the contract be-
tween the Panama Railroad Company and
the Pacific Mail Company expired, the
railroad company and the steamship COM
pany failed to come to an agreement as tC
the renewal Of the contract.
The railroad company having the only
isthmian route of communication seemed
to hold the key Of the situation and deter
mined to put on a line of steamers of It's
own on the Atlantic side and to further
the formation of a rival line to the Pacific
Mail on the west coast. The result of the
whole thing was the formation of the Co
lumbar line, which chartered the steam
ers Of the Pacific Mail on This side-the
Newport, City of Para and Columbia.
An arrangement was made with the Pa
cife Mail regarding way business on the
line from Panama north. This is short
line of the Pacific Mail running from Pan
ANA up the west coast OF Central Amer
lea as far as Ocos, in Guatemala. For this
line the Pacific Mail Company claimed that
it had perpetual contract with the Pan
ANA railroad. The Natter was taken into
court and Judge Truax granted an iniunc-
4t1,a Il 1fr,r-
a termination of the terms of the contract.
This was in 1892. The short line is ex-
tremely profitable.
The steamers Newport, City of Para
and Colum bia have been run by the Co
lumbian line at q loss, and on April a the
railroad company asked the Pacific Mail
Company for a new arrangement, saving
that as the Columbian line had taken the
steamers off the hands of the Pacific Mail
by chartering them it was thought that
reduction ought TO be made in the price
paid 10 the Pacific Mail. The Pacific Ma
oficerR had until May 10 to decide. The
con tract expires on June 10
On Thursday word was received from
the Pacific Mail that the terms proposed
by the Panama Railroad would not 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 drydocks at Erin Basin
and work was begun upon them to put
them in shape to go into commission.
They have been chartered by the Pan
ANA Railroad and will be put on the
Columbian line in place of the City of
Para, Newport and Columbia.
Mr.. Drake, secretary of the Panama
Railroad, said:'I do not know how the
west coast arrangement between our COM
pauy ana the Pacific Mail Company will
be effected. suppose 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 G. P.
Huntington yesterday that the Pacific
Mail would not make the new contract we
proposed. so to-day men went to work to
get ready the other steamers. l do not
know what the Pacific Mail people will do
with their ships, / am sure"