Mr. Wharton to Mr. Egan.

No. 111.]

Sir: I append on the overleaf a copy of a telegram sent you on the 17th instant, permitting the use of your good offices in behalf of the application of the Central and South American Telegraph Company to establish and operate a telegraphic line between Valparaiso, Santiago, and the Argentine frontier.

At the same time I inclose for your information and files a copy of a letter from the president of that company, of the 2d instant, and of my reply of the 16th, touching the character of your intervention.

Agreeably to a telegraphic request from Mr. Scrymser of the 17th instant, I cabled you on that date as stated.

I am, etc.,

William F. Wharton,
Acting Secretary.
[Page 139]
[Inclosure in No. 111.]

Mr. Scrymser to Mr. Wharton.

Dear Sir: I have the honor to inquire if the State Department would, if it should be so decided by the directors of this company, telegraph to Gen. Egan, United States minister to Chile, requesting him to confer with the general manager of this company, now in Chile, and obtain for this company the right to establish, maintain, and operate a telegraph line between Valparaiso, Santiago, and the Argentine frontier. I ask this, because I have received to-day telegraphic advices that the combined English companies operating the cables between Europe, Brazil, and Argentina are negotiating for the purchase of the only land line between Valparaiso, Chile, and Buenos Ayres, Argentina—the Transandine Telegraph Company. The only obstacle to such purchase arises through the fact that owing to the disturbed condition of Chile the necessary number of shareholders can not be reached to give their consent, consequently the Transandine Telegraph Company is inviting sealed tenders for the purchase of its lines, to be opened July 15; and even then it is doubtful if the consents of a sufficient number of shareholders can be secured.

I have reason to believe—in fact know—that, the relations of Gen. Egan with the Chilean Government at the present time are such that the Chilean Government will gladly concede any reasonable permission that Gen. Egan might ask.

The State Department has always given its valuable aid in undertakings of this character, and I need not explain to one so well informed as yourself that if the English companies monopolize this important link American commerce will suffer, and the possibility of this, an American company, reaching Argentina and Brazil will be, to say the least, doubtful and difficult.

I am sure Gen. Egan will be only too glad to facilitate a matter of such vital importance to American interests.

Should you decide that the State Department can properly act in this matter, I will prepare a brief telegram explaining our requirements, to be sent by the State Department in code to Gen. Egan, the cost of which telegram this company will of course pay.

I remain, etc.,

James A. Scrymser,
President.