Evening star., 1902-01-20
ragua must be acquired and its acquisition
may prove expensive.
Question of Title.

Canal Company can make to purchaser
a valid title to the property formerly be-
longing to the old company, it's predecessor,
has been considered and answered in the
former reports OF the commission, but in
view of It's Importance in connection with
the present offer the results of the investi-
cations made viii be again presented.
The old company. in addition to its canal
property, acquired under concession from
the Colombian government, owned nearly
all of the shares of the Panama Railroad
Company By purchasing these 1t obtained
the road had been built. The latter conces-
sion will continue in force until 1865; the
canal concession Is to run for ninefy-nine
years from the day on which the canal
shall be opened to public service. and the
date for this in the concession. according 20
its latest extension. is October 81, 1910
When these periods expire the dlHerent
properties are to belong absolutely to Co
lombia, without compensation, and the gov
ernment is under no obligation to extend
either concession.
The canal company is absolutely prohib-
tied to cede or mortgage its rights under
any consideration whatever to any nation
or foreign government under penalty OF
forfeiture. The contract with the railroad
company contains like prohibition. and
declares further that the pain of forfeiture
Will be incurred by the mere act of at
ten pting to cede or transfer its privilege
to foreign government, and such an act
is declared absolutely null and Of no value
or effect.
But for the purpose of permitting the
new Panama Canal Company to enter upon
the negotiations which have resulted in the
present offer, Colombia has waived these
prohibitions and has authorized the com
pany to treat directly with the United
States. with view to the use and occupa-
tion of the territory of the former for canal
purposes If our government should select
the Panama route for an isthmian canal.
ftnr hn oil Ttil laH
was appointed by the French court to take
charge of its property and affairs. When
the new company was formed he was au-
thoriZed to contribute to 1t the rights,
privileges, plans, documents, plant and un-
finished work in his hands and under his
control. and in consideration of this grant,
he was to receive % per cent OF the net
profits of the enterprise after deducting all
expenses, charges and stipulated div1-
dends to be distributed by him among the
parties In interest.
11..s interest of the old company is still
under the protection of the liquidators~and
he must be a party to any arrangement
that may be entered into for sale and
conveyance of the property. and as he de-
riyes his authority from the tribunal that
appointed him his action requires the ap-
proval and confirmation of the court.
The papers before the commission show
that the liquidator has agreed to the propo-
sition and that he is acting under judicial
authority.
A
canal company and the liquidator requires
the approval of the government of Colom-
bia, because of the prohibition already re-
ferred to in the concessions and for the
further reason that the republic owns oO,oO0
shares of 100 francs each of the stock of
the company, full paid. of which it cannot
be deprived without it's consent.
New Concessions Necessary.
Such transfer of title thus approved
would give to the United States the same
right, title and interest in the premises that
the new Panama Canal Company now has,
but that would not be sufficient. The exist
ing concessions thus purchased would be
valuable only because their ownership by
the United States would remove the OBJ
Stacles in the way of negotiations between
the two governments for the occupation of
Colombian territory by the United States
for canal purposes; but these concessions
are unsatisfactory and insufficient and
new arrangement must be made If an 18TH
mian canal Is to be constructed by our gov
ernment across the Isthmus of Panama.
The grant must be not for a term of
years, but in perpetuity. and a strip of
territory from ocean TO ocean of sufficient
width must be placed under the control OF
the United States. In this strip the Unite ed
States must have the right TO enforce police
regulations, preserve order, protect prop
erty rights and exercise such other pow
ers as are appropriate and necessary. The
and canal companies and the Colombian
government must also be settled, and the
consideration to be paid by the United
States for the privileges and rights to be
exercised in the future must be agreed
upon free from all embarra ssment with ref
erence to past transactions
The commission has power to enter
upon negotiations for the arrangement OF
these matters; they belong to the treaty
making power. but the acceptance of the
terms offered by the new Panama Canal
Company should be conditioned upon their
satisfactory adjustment.
The advantages Of the two canal routes
have been Pestated according to the findings
OF the former report There has been no
change in the views OF the commission with
reference to any OF these conclusions then
reached; but the new proposition submitted
by the New Panama Canal Company makes
reduction of nearly S1U.vU0 900 in the cost
of canal across the Isthmus of Panama
according to the estimates contained in the
former report, and with this reduction a
canal can be there constructed for more
than $5O0,O0O less than through Nicaragua.
The unreasonable sum asked for the prop
erty and rights Of the New Panama Canal
Company when the commission reached it's
former conclusion overbalanced the ad-
vantages of that route, but now that the
estimates by the two routes have been
nearly equalized the commission can form
it's judgment by weighing the advantages
of each and determining which Is the more
practicable and feasible.
The Colombian Government
There Is, however, one important matter
which cannot enter into it's determination
but which may In the end control the ac-
tion of the United States. Reference is
made to the disposition of the government
whose territory is necessary for the con-
struction and operation of an isthmian ca
nal. 1t must be assumed by the commits
sion that Colombia will exercise the same
fairness and liberality if the Panama route
Is determined upon that have been expect
ed of Nicaragua and Costa Rica. should
the Nicaragua route be preferred
After considering the changed conditions
that now exist and all the facts and cir
cumstances upon which it's present judg-
ment must be based. the commission is of
opinion that the most practicable and fea-
sible route for isthmisn canal to be
under the control, management and own
ership Of the United States Is that known
as the Panama route.
We have the honor to be, sir, with great
respect, your obedient servants
J. G. WALKER
Rear Admiral, United States Navy.
President of Commission:
SAMUEL PASCO,
ALFRED NOBLE.
GEO. s. MORRISON,
PETER G. HAMS
Colonel, United States Corps of Engineers: