Evening star., 1901-11-23
Bill to Await Action on Certain
Treaties.
REAL STATUS CT PANAMA. PROJECT
Why the Nicaragua Route Will
Be Preferred.
DEFINITE ACTION EXPECTED

The fact that canal bill will probably
not be introduced in the first days of the
coming Congress Will not be an Indication
of a lessening of interest on the part of
the advocates of the canal 1t will simply
mean that the trainers of the bill that
will he pushed vigorously will be waiting
until the treaties with Great Britain and
those that will be negotiated with Sicara-
qua and Costa Rica are disposed of so
that the bill can be made to conform to
the provisions they will carry.
Advocates of an isthman canal do not
regard the proposals that have come from
the Panama Canal Company sincere or
likely to lead to anything except pretext
for delay. They entertain that belief for
two reasons:
In the first place they are satisfied that
those who now control the Panama Canal
Company are enjoying too good thing to
wish to surrender it, and in the second place
they do not believe 1t would be possible to
secure a valid title to the Panama canal
property, even were they willing to pay the
price of S16O,0OO,OOO, which has been asked
for 1t.
Real Status of Panama Canal.
The real status of the Panama canal is
not generally known. After the first canal
company had spent s250,O0O.OOO in an en-
deavor to build a sea level canal the whole
in a bankruptcy proceeding. The court
turned the management of the property
over to new company that was formed
with an ostensible capital of S1000O,OOo.
This new company was in the nature of a
receivership, and the S13,OO0,OOO of assets
of the old concern were turned over to it.
1t empowered to build a canal at
Panama with locks and proceeded to move
in that direction 1t acquired the Panama
Railroad Company, which is most Valu-
Ill ~ i- IAnln rnI hot
this railroad, with its enormous income,
makes plain today reasons why the Panama
Canal Company will be found to be really
working to maintain the status quo on the
subject of the canal whether it is to be by
the Panama or Nicaragua route
The distinguished Frenchmen who form
the Panama Canal Company are practically
receivers for that enterprise and they have
a free hand in conducting its affairs. If
they have bankrupt canal, they at the
same time have a railroad of only forty-six
miles in length that is perhaps the most
valuable piece of railroad property of that
length and carrying capacity in the world.
There has always been good deal of mys-
terry about its relations with the transcon-
tinental railroads of this country and of
Canada. 1t unquestionably enjoys a large
tncome.
Could Not Convey Title.
If the new Panama company, practically
the receivers, were to sell the canal they
would be disposing of their occupations and
at the same time they could not convey
title to it, because there are the enormous
number of 100000 stockholders of the old
company, whose rights are as much alive
today, so far as the ownership of the canal
Is concerned, as they ever were, and the
French courts would have to act in order to
perfect the title In other words were Con-
gress to decide to buy the canal for the
price put upon 1t by the new company con-
trolling 1t Its next proceeding would be to
go into the French courts in order to find
q way for dealing with the myriad of stock
holders But the proposition that has been
made for the United States government to
become stockhOlder in New Jersey cor
poration in the cor s~ol cf the canal is re-
garded as absurd by many of the advocates
OF an iSthnian canal
Advocates of a canal do not have anv con-
fderce in the idea that the new canal com
pany wants to dispose of its property and
they are convinced that the transcontinen-
tai railroads, not only now, but have al
ways. Systematically worked TO defeat the
building of any canal across the American
tsthmus TO become a competitor for freight
passing between the Atlantic and Pacific
oceans.
The Nicaraguan Route,
because OF these reasons the friends of
an isthmian canal are not diverted from
the idea of building the canal by the Mic
eraguan route. The report of the canal
commission, showing the building of this
cdhA 10 De cheaper by the Nicaraguan
than by the Panama route, notwithstand-
Ing the large amount of money spent at the
latter place, serves to confirm them in
their opinion
II Is understood that treaties between this
country and Nicaragua and Costa Rica for
the building of the Nicaraguan canal are
under consideration and will be pushed for
ward as rapidly as possible as soon as the
Hay-Pauncefote treaty Is disposed of When
all or these treaties have been ratified the
friends of the canal will modify the Hem
ourn Dill. which passed the House in the
last session. to conform TO the provisions of
these treaties. There are other details of
1ne oiIl that also may be changed The
hepnurn Dill gave the Secretary of War au-
thorlty to act in the building of the canal
put the new bill may place further restriC-
tions on his powers in carrying the work
Forward The friends of the canal feel very
hopeful that they will pass their bill in
the coming Congress. As in the last Con-
gress II Will probably be first passed
through the House. and an effort will be
made to get 1t to the Senate before the