Evening star. [volume] (Washington, D.C.) 1854-1972, 1901-04-06
THE PANAMA CANAL
Relations Toward Colombia and This
Country.
EFFORTS TO BLOCK LEGISLATION
Tactics of Opposition to Isthmian
Waterway.
OLD ATTACK IN NEW FORM


country. InlS Tune IL is announced tnat D.
Pierpont Morgan at the head of an infiuen-
tial syndicate of well-known business men
and politicians, is gong to buy the Pana-
ma canal from its French owners and COM
plete the work of opening this channel to
commerce without expense to the govern
ment of the United States.
Another Move of Antf-CanaI People.
Carefully analysed the story was ridicu-
lousy impossible, though the purpose in
publishing the same was made clearly ap-
parent. The story came from what might
be under ordinary circumstances. authentic
sources. 1t was but another move on the
Fart Of the anti-canal faction to confuse
the public mind and throw discredit upon
any effort of the canal advocates to secure
final consideration of such an enterprise
by the United States government In the
days of Mr.. Huntington the Pacific roads
were strong factor IN opposing the build
ing of waterway by this government.
The community of interests coterie of rail-
road financiers has taken up MIR. Hunting
tons fight and has become far more influ-
entail than even he was himself with all
his marvellous and concentrated energy.
The Panama canal corporation is fight
ing for it's life to prevent the conStruc-
ton of any canal by the United States.
Even alone this corporation has been able
to do much to delay action, but allied
with the opposition native to this country
it presents a formidable front to the enc
my. To give the impression TO the people
of the United States that the building OF
an iSthman canal was properly within
the domain of private capital and that in
these days of vast aggregations of money
it would be easy to obtain 500, 100000 for
such a conservative investment, was the
real purpose of this iurid tale. 1t was in
brief, but another broadside in a warfare
which has been in progress for many
years.
Leaving OF the engineers discussion Of
the merits of the Nicaragua and Panama
canal routes and allowing that they are
equally feasible, equally practical and can be
built for about the same amount of money,
1t is the complications which present them
selves in the diplomatic and legal field which
make the Panama enterprise so difficult of
assimilation by American energies. The
Panama canal people have insisted for
many years that their only purpose was to
build the canal originally contemplated,
and that they had no intention desire
of selling to the United States. Their fight
has been made against the construction of
other proposed canals which would mill
tate against raising money for their own
enterprise and possibly bring about two
waterways where one was sufficient.
Panama COmpany's Concession.
The diplomatic surroundings of the Pan
ANA canal are interesting, for under the
terms Of the concession granted by the
government Of the United States of Co
lombia the company possesses the exclu-
sive privilege of excavation. This conces-
sion continues for ninety-nine years from
the opening of the proposed canal, and at
the end of that time the government of
Colombia becomes the owner Of the water
way. The company was given right of
way 1912 feet wide and about forty-seven
miles, or the width of the isthmus in
length. In addition to this right of way
the Panama railroad land grant comprises
1,235,50O acres, with mining rights. While
this land really belongs to the railroad, the
canal company is so interested as to be it's
real proprietors.
AS a compensation for the rights and
privileges granted to the canal company
the Colombian government is entitled to
receive per cent of the gross revenue Of
the company for the first twenty-five years
after the opening Of the canal; from the
twenty-fifth year to the fiftieth year it is
to receive per cent, from the fiftieth year
to the seventy-ffth year Z per cent, and
from that time till the ninety ninth year,
when the canal becomes the property of
the Colombian government, per cent.
The interest of the Colombian govern
ment in the Panama canal has not been
entirely prospective, for, upon one pretext
or another, such as an extension of time
limits on franchises. so.called loans have
been extracted from the company by the
government to the amount Of several mil
lion dollars.
United States PrOtectOrate.
The United States is practically supreme
on the Isthmus of Panama by the treaty
of 1913, made with the Colombian govern
ment, then known as the government Of
New Granada. No matter who built the
Panama canal the United States would
practlcaily maintain a protectorate over
the territory through which it passed, I'M
less some change was effected under pres
ent treaty obligations. The treaty now in
force, besides making the usual stipula-
lions for no discrimination against Amer
lean goods or against American citizens
provides as follows:
To secure to themselves the constant
and tranquil enjoyment of these advan-
said advantages the United States
guarantees positively and eficaciously to
New Granada by the present stipulation
the perfect neutrality Of the before-men-
toned 1sthmus, with the view that the
free transit from one to the other sea may
not be interrupted embarrassed in any
future time while this treaty exists, and
in consequence the United States also
guarantees in the same manner the rights
Of sovereignty and property which New
Granada has and possesses over the said
territory.
Canal and Railway Company.
1t has been recently denied emphatically
that the Panama Canal Company had any
connection with the Panama Railroad
Company. This is not true, for the old
canal company, the railroad company and
the new canal company are inextricably
associated together. The s., 600, 900 francs
capital of the new Panama Canal Com
pany is divided into $50 900 shares Of 100
francs each, of which $4,000, representing
100000 francs, have been given to the
Colombian government, according to pre-
V1ous agreement. One-half of the capital
or the new company was paid in by or
gan1zers of the old company, and by GER
tain individuals sentenced by the French
courts to make restitution of money stolen
from the old company, by public subscrip-
tons, and from one or two other sources.
The capital bea s no interest and by the
terms of agreement with the old company
1t must be entirely devoted to the expenses
of the administration of the company to
the carrying on of the work of the canal
and in payment of $4,000, 600 to the old
company for the acquisition by the new
company of the Panama railroad in case
the completion of the canal Shall be found
impossible.
In consideration of this agreement to buy
the railroad in case the canal is not built
and an agreement to share half and half
the profits of the canal if it is built, the old
canal company transferred all it's right.
title and interest in the work on the 18th
mus to the new company and also a con-
trolling interest in the Panama railroad
Owners of the Railway.