Mr. Egan to Mr. Blaine.

No. 174.]

Sir: I have the honor to acknowledge receipt of your cable dispatch of the 17th instant, and after consultation with Mr. Turner, agent of the Central and South American Telegraph Company, I presented the solicitude of the company for permission to construct and operate a line from Valparaiso to Santiago and on to the Argentine frontier. This solicitude is regarded as a move for the purpose of depreciating the value of the Transandine telegraph line, which is about to be [Page 140] sold in a couple of weeks, and the stock of which is largely held here and in Valparaiso. On this account, but especially on account of the unwillingness of the Central and South American Company to open up direct communication with Valparaiso, in response to the earnest request of the Government, I have but little hope that the concession will be granted.

I have, etc.,

Patrick Egan.