Evening star., 1901-11-21

states within whose territory the two
routes lie authorizing the United States to
occupy It's territory for the construction
and operation of canal. When 1t has
been determined to undertake the work,
and the route has been selected, the con-
sent of Colombia. of Nicaragua and Cos
ia Rica, for such occupation must be OBJ
tanned before the Inauguration OF the enter
prise, and one or more conventions must
be entered into by the United States to Sc
cure the necessary privileges and author
ity.
The republics Of Nicaragua and Costa
Rica are untrammeled by any existing con-
cessions or treaty obligations, and are free
to grant to the United States the rights
necessary for the attainment OF these ends,
and in December, 1900, demonstrated their
willingness to have their territory SO oc-
cupied by the United States by executing
protocols by which it was agreed that they
would enter into negotiations to settle in
detail the plan and agreements necessary
to accomplish the construction and provide
for the ownership Of the proposed canal
whenever the President of the United
States is authorized by law to acquire the
necessary control and authority.
Colombia Has Made COncessiOns.
The government of Colombia. on the con-
trary, in whose territory the Panama route
lies, has granted concessions which belong
to, or are controlled by, the New Panama
Canal Company, and have many years to
run. These concessions, limited in time
and defective in other ways, would not be
adequate authority for the purposes OF the
United States, but While they exist Colom-
bia is not free to treat with this govern
ment. If the Panama route Is selected
these concessions must be removed in Or
der that the republics may enter into
treaty to enable the United States to ac-
quire the control upon the isthmus that
will be necessary and to fix the consadera-
ton.
An agreement with the Panama Canal
Company to surrender or transfer it's con-
cession must include a sale of its canal
property and unfinished work, and the COM
mission undertook, soon after Its organiza-
ton, to ascertain upon what terms this
could be accomplished. Much correspond
ence and many conferences followed, but
no proposition naming price was present
ed until the middle of October, 1901, and
after prolonged discussion it was submitted
to the commission in modified form, on
the 4th of November, to be included in its
report to the President. The itemized state
ment appears in an earlier chapter OF the
report.
Price Asked by Panama Company.
The total amount for which the company
offers to sell and transfer it's canal property
to the United States is s1O9, ,141 800. This,
added to the cost of completing the work,
makes the whole cost of a canal by the
>o.'e
by the Nicaragua route is s1S9, 1854 ,062, a
difference of $63, 3,510, 1876 in favor Of the
Nicaragua route. In each case there must
be added the cost of obtaining the use of
the territory to be occupied, and such other
privileges as may be necessary for the con-
struction and operation of the canal in
perpetuity. The compensation that the diff
ferent states will ask for granting these
privileges is now unknown
There are certain physical advantages,
such as a shorter canal line, more COM
plete knowledge of the country through
which it passes, and lower cost of mainten-
ance and operation in favor Of the Panama
route. but the price fixed by the Panama
Canal Company for sale of its property
and franchises Is SO unreasonable that its
acceptance cannot be recommended by this
commission.
After considering all the facts developed
by the Investigations made by the commits
sion, the actual situation as 1t now stands,
and having in view the terms offered by
the new Panama Canal Company, this COM
mission is of the opinion that 'the most
practicable and feasible route" for an 18TH
mian canal. to be under the control, man
agement and ownership of the United
States,' is that known as the Nicaragua