The Washington times., 1902-07-10
Attorney for III Panama
Company n Confer
ence With Hay,
RULING III FRENCH COURTS
Stockholders in Old Company without
Legal Rights to Interfere With the
Transfer to United States-COlombia
Takes Initial Steps.

ard Colombia for The construction of
the Pa1ama Canal were practically he
gun yesterday by Secretary Hay and
William Nielsen Cromwell. Of Eew YORK..
Of general counsel for the new Panama
Canal Company
There are very few points Of difference
between the two governments. and IL
appears 20 be certain that the treaty
viii lie sisred within a very short time.
me final draft is being drawn at the
State Department along the lines Of the
agreement entered into by Sccretary
Hay and the Colombian Minister in
April last. with some -no3iGcatiors
rade necessary by tho proyisicrs O. tie
Srconer amendmen, to the Panama
Canal act
!, is expected that the treaty viii 5e
ready to be presented to the Senate for
ratification when 1t assemblies next De
cember, and that actual work upon the
construction OF the canal may begin
early next year.
III. Cromwell at State Department
William y Cromwell, OF the firm OF
Sullivan & Cromwell, general counsel
OF the New Panama Canal Company. was
in conference with Secretary Hay at the
State Department yesterday morning for
nearly two hours describing the details
OF the treaty with Colombia. He says
that go per cent or the agreement" al
ready signed by Mr.. Concha, OF Colom-
hia. and Secretary Hay. and submitted to
Congress last May. win stand in the final
treaty.
Mr. Cromwell has received word that
the Colombian government has issued
? decree appointing a bipartisan com
mission. composed Of both conservative
ard liberals, 10 decide upon lhs limits
o. the several departments Of the co-n-
t-y and Of the districts from which The
members Of the Colombian congress are
to be eiected-in other words, to -adiz-
trict the country.
This is the first step toward bring
ing the congress together which is 10
ratify the canal treaty With the United
STA es. The treaty had TO lie adopted
10y both houses OF that cong.ess. bu.
OIL. majority vote is needed 70 rat
ify It.
incidentally the issuance OF This a.
cree is believed 10 mark the termination
OF the revolution that has been in prog-
ress for three years. one Of the do
mauds Of the Liberals having been that
thev should be given representation in
certain of the department..
This shows that Colombia is doing aii
in her power 10 facilitate the transfer
of the Panama Canal TO the United
i've Of f,. 1nT
said Mr.. Cromwell. Ard I want 70
say that President Roosevelt is dead In
earnest in pushing forward the work in
this country. Ee has concentrated al
Questions relating to title in the hands
OF tie attorney general. who is prose-
cutting his inquiry as rapidly as possi-
bic. and the diplomatic end is IN charge
of Secretary Hay, who is staying here
in the heat OF summer on this work
alone This does not look much Ike
delay
Satisfaction of an American.
"Of course ! am happy after spending
six years in presenting the advantages
of this canal that Congress hes finally
accepted it. but l am particularly hap
py as a citizen that the United States
has obtained the best canal"
s1caking OF the recent action OF the
Trench courts in the case Of Mr. Dona-
dieu who. as a stockholder Of the old
Panama Canal Company. sought 10 raise
oDieeticn TO tie transfer OF the prop
r-s ~ tho new company 10 the United
States. Mr. Cromwell said that the &C
tfon was brought by the new Panama
Canal Co<ipany Itself in order to settle
question as 10 title.
Old Panama Company Extinct.
Tho security holders Of The old Pan
ana Company have no interest or title
10 any property OF the new company.
said Mr. Cromwell. The title to that
property was in 1894 vested absolutely
in The new company through sale by
the l:auidator Of the old com any, CON
fruad hy the courts and made pursuant
10 q special law Tasaed by the French
Parliament in 1888 to cover this partiCu-
lar ease and 20 confer such special right.
The relation Of the security holGers
OF The old company 10 The new one Is
solely through i1eir own E4uidatiou.
Recently. however Mr. Donadieu raised
objection by judicial proceedings to the
consummatiol 6y the new Panama Canal
Company Of the transfer to the United
States. and the new COMPANY together
with the lCIidator. OCldly and SQuaEciN
met the question by bringing a writ oi
annulment against the objecting secur-
ity holder
Ruling of French Courts.
They presented all the legal ques-
tions involved in the transfer. thereby
exhibiting their confidence that no de
feet could be found in the proceedings.
This action came up for argument ta-~
days ago and on the third instance tre
tribunal Of the Seine a5fldred the OBJ
jections unwarrar. q. and grad she
decree Of annulment against tho credi-
tors. sustaining the action OF ne coma
pauy ard sentencing TIE crecfof TO pay
damages. as, hrsl, rlisc--Evous and
unwarranted proceeding.
This decree did Iot sCrrriE NE. be-
cause T. is absolutely In order With the
:hc views my drm have been presenting
to this Government. 1t hsl tho effect.
however. O. clearing the atmosphere OF
lot OF nlsunderstandiaGs and Of con
arming our opinion as % fle perfect va
Iidity Of the titl@ .l- United States IL
about TO secure
By. Cromwell said n addition that
the Iiouse OF Rep esentatives would not
be called upon 10 appropriate any money
GhjsE the Uni:Sd States would agree, in