Evening star., 1902-08-19
CHARGE Of BAD FAITH
Against Pacific Steam NaVi-
cation Company
MADE BY COLOMBIA
VIOLATED CONTRACT TO CARRY
GOVERNMENT TROOPS.
British Warships Sent to Uphold the
Company in It's Opposition
Situation is Serious
MADE BY COLOMBIA

PANAMA. Colombia. August 19-The
British cruiser PhaetOn, as cabled to the
Associated Press yesterday, left hurriedly
on Saturday and it was believed that she
had sailed for Buena Ventura in the de
partment of Cauca. Inquiries made by the
correspondent of the Associated Press re-
garding the warship's sailing show that
serious international complications may
arise at Buena Ventura where the Colom-
bian authorities have been endeavorfng to
compel the agents of the British steamer
Ecuador, owned by the Pacific Steam Navi-
cation Company of Liverpool, to transport
troops to the isthmus. 1t was at the re-
quest of the Pacific Steam Navigation Com
pany that the Phaeton left Panama for
Buena Ventura, where the Colombian gov
ernmeat has assembled 2C00 troops, under
General Velasco. intended to reinforce the
army in this vicinity The government Off
Cials at Buena Ventura threatened TO COM
pei the steamer Ecuador, which was at
that port, to transport the reinfOrcements
to Panama The agents of the line, how
ever. refused to embark the troops and ap-
pealed TO the company's representa- tive
here. who in turn placed the matter before
the British consul, with the result that the
Phaeton was sent to Buena Ventura to pro-
teCt British interests.
Government is Indignant.
The action of the Pacific Steam Naviga-
tion Company in refusing to transport the
troops has caused indignation in Colombian
government circles. A high official who
was interviewed on the subject said that
contract was made by the government in
1879 with the Pacific Steam Navigation
Company by which the government granted
many liberal concessions to the company.
such exemption from the tonnage and
other taxes imposed by the national govern
rh.4 4r- tJ,o
coal necessary for the COmpany's steamers
and any other exemptions and privileges
granted to other companies at any time.
The Colombian government, it was added,
has, since the contract was signed, paid
the Pacific Steam Navigation Company
over S2n.ao in subsidies, in consideration
OF which the company agreed to transport
Colombian civil md military employees.
prisoners, mails and soldiers at special
rates. There is no clause in the contract,
il was further asserted. providing that
during a revolutionary outbreak the obi
cation of the company to trar sport troops
ceased to be effective.
May Yield to Force
In conclusion, the high official of the
Colombian government referred to, said
that the present refusal of the Pacific
Steam Navigation Company to transport
Colombian troops here may be sustained
= by the presence of a British warship at
Buena Ventura, but nevertheless it is
clear violation of the contract between the
Colombian government and the steamship
company. made in good faith by the gov
srnmeut, which has faithfully adhered to
lis agreements
In government circles it is claimed that
The uon-aT-ivaI of the reinforcemen nts of
troops from Buena Ventura will p-OlOng the
revolution on the isthmus and cause un-
necessary blOOdshed. and that, consequent
ly, the government of Colombia has ground
10 claim damages from the Pacific Steam
Navigation Company. There is no doubt
that the government will bring suit against
the company An eminent lawyer has al
ready lefl Panama for Bogota, the capital,
to present ana sustain the governments
claim, which. according 10 the terms OF
the contract. must be decided by the CO.
lImbiau courts.