The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1923-09-21
j. 5. NAY SELL
TRADE RIGHTS
NPA|VA|NA
Gov. Morrow Explains Proposal
for Syndicate to Take Over
Merchandising.
BY GILMAN PARKER,
Cosmopolitan News Service.

NEW YORK. Sept. 81 Frankly
admitting that an American syndi.
cate plans to take over and oper.
ate the Governments wholesale
merchandising system In the Pan,
anna canal zone, Jay ]. Morrow,
governor Of the zone. and Charles
r. strotz. head of the syndicate. to
day warmly defended the scheme
and replied to the protest against
| 1t filed by the Republic OF Panama
with the War Department.
Turning over the Government -
Establishment to private interests, II
was charged In the protest, would
be q plain violation OF the existing
treaty between the United States
and Panama.
All charges made in connection
with the protests were denied By
Governor Morrow and Mr.. StrUtz
including the declaration that the
granting OF such concessions would
permit $4,000 Government employee
to be exploited, and that 1t wouIc
subject the merchant Of Panama
to an unfair competition.
Explained BY StrOtz.
Strotz also denied that j. p
Morgan q Co. or any Morgan mart
ner, have any connection with thu
scheme. Previous denials to tlat
same effect were made by three
Morgan partners through s repre-
sentative Of y. r. Morgan q Co.
among them Dwight w. Morrow. !
brother Of the canal zone exectI
tive. StrOtz declined to reveal flat
names OF the American t1f1aiYeai
men interested in the syndicate.
| Strotz asserted that Government
operation OF the whoIeaaIe avafern
had proved wholly uneconorlica]
and unsatisfactory, and cited ~ AZ
instance that the business from shiYor
passing through the canal had
dropped from more than $500 900
in 1921, to $36O, 900 for last wear.
| From other sources IN touch with
conditions on the Isthrnue ii was
reported that Panama IS eYldeayor.
ing to set up straw man, to b
used for bargaining purposes IA the
negotiations for q new treaty with
the United States. =
Governor Morrow gave CosmopoIi.
tan News Service a prepared state,
ment. as follows:
There are. no many false state.
ments In this report that II may he
lentirely denied. The following arr
the facts In the case:
year ago the Panama rail.
road company ADVERTISED the sale
Of Its wholesale business with q
view to getting away from the DIFF
fsculties attending governmental
handling of commercial business
Last january Mr.. Strotz submitted
the only bid. and his bid has been
used as q. basis to prepare b pro.
nnsed contract. It has been sub.
stanitally changed, every change he
Ing to the advantage of the Govern.
ment and OF the employees.
Weeks Is TO Decide.
1t may be stated that IL the con.
tract is made full value OF the prop.
erty will be received by the Panama
Railroad Company, and all employees
will be fully protected against any
increase in prices in the retail stores,
which we are to continue to operate
ourselves.
The interests Of the Republic Of
Panama are fully protected, since
we do not give the contractor any
rights which we are not now exercis.
Ing ourselves. The contractor will
receive no special rights to intro.
duce merchandise into the Republic
of Panama.
The question as to the expediency
OF disposing Of the business Is I'm.
der consideration by Secretary
Weeks, and it Is expected that q de-
cision will be announced within a
short time.