The Providence news. (Providence [R.I.]) 1891-1906, 1902-03-20
REPORTS ON
PANAMA CANAL.
Majority and Minority STATE
mants Presented TO Senate.
IN OPPOSITION To PURCHASE.
Majority Holds That New French Company
Cannot Transfer ANY Valid Title.
Minority Takes Different View.
IN OPPOSITION TO PURCHASE.

Washington, March Ex-senator Nor
gan, from the committee on isthmian
canals yesterday presented 20 the senate
the majority and minority reports of that
committee on the question Of the validity
OF the title OF the new Panama Canal
company and it's right 20 transfer the
Panama Canal property to the United
States for $iOoOO.Ooo
The objections OF the majority TO the
title held by that company are based
largely on the relations OF the canal
company TO the governments OF France
and Colombia but the committee also
discussed at length many other phases
OF the question Among these is the re-
lation of the shareholders who subscribed
$500 1000 600 to the old Panama company,
whose interests the report holds cannot
be lightly regarded. On this point the re-
port says:
"The spectacle OF the United States
congress authorizing the president as the
agent of our government TO conduct
trade with such "A corporation (the new
Panama company without consulting
france as 10 the claim Oh independence,
IL Cthe new Panama company asserts,
will be entirely new in the history of ma
tions and it's consequences cannot be
lightly disregarded.
unfortunately the report of the 18TH
mian Canal commission reveals the fact
that men who make this offer are chief
among those who defrauded these six
or eight hundred thousand Frenchmen of
$3.50, 900. 900
Speaking further OF the obligations OF
the new company to the old, the ma
jorty says
III Mr.. Eifel and his associates get
$40. 900 600 from the American people 1t
is well that they are sheltered from the
claims of these defrauded and despoled
bondhoders and stockholders by the al
legged despotism of French courts. They
would never escape justice in American
courts. and would be compelled TO account
for every dollar of the money TO the
bondholders and TO the stocks bearing
interest before applying any OF IL 10 the
profits OF their speculation"
The minority report, which was pre-
pared by Senator Kittredge, completely
| upholds the title of the new Panama
! company, as will be seen from the fol-
| lowing extract. which constitutes its
| opening paragraph
The title of the new Panama COM
| pany TO it's concessions and other prop
| erty appears from the facts and docu-
ments which have been laid before the
| subcommittee clear and free from any
complications. For a transfer of it's con-
| cessions to the United States the consent
OF Colombia is requisite, but this con-
sent has been given by the government
of that country as fully as 1t can now be
given.
"In case OF the purchase of the canal
by the United States, definite concessions
and definite rights must be obtained by
treaty between this country and Colom-
bia, and such treaty would necessarily
involve a consent to the sale by the com
pany OF its rights and property on the
isthmus TO the United States Such az
| treaty Colombia has shown and declared
It's readiness to make. ON every other
| point the right of the new Panama Canal
| company TO transfer its property TO the
United States is perfectly clear. Every
link in the chain of it's title and every step
| I'm the courts by which IL became in a
| position 10 sell its property free and clear
is plain and satisfactory"
The report then reviews the entire
origin and history OF the Panama Canal
! company, and finds that the affairs of
| the old company were disposed of by a
| French court I'm "A straightforward way
! when that company became insolvent,
I and that the court had a perfect right
| not only TO appoint "A liquidator or re-
| ceiver, but to confer upon him, as was
| done. power TO grant or contribute TO
any new company all or part of the cor
] porate assets"
| The various objections 10 the new COM
| pauy's title are then considered and re-
| piled TO. The following explanation Is
! made of the reasons why the new COM
| pany should desire TO sell:
Under the title thus acquired the new
! company took zip the work and continued
| il until large part OF it's capital had
| been expended.
III would become necessary to raise
| funds for the completion of the canal
! from the public. BY this time however.
! a new danger menaced a i'm the announced
| intention OF the United States 20 build
I an Isthmian canal Investors could be
| induced 20 furnish money only by the
| prospect OF a profitable return. But 81
| the canal must compete with one built
| and owned by government which could
I and would disregard all question OF profit.
I the chance OF a profitable return was
! gone IL would not pay to complete the
/ canal. and therefore money could not be
/ raised to complete g. As an engineering
I proposition. the canal was perfectly FEAST
I BILE and was attractive: as commercial
proposition the certainty OF the compile
! titiOn of the United States made IL i'm
| possible except under the auspices OF the
4 government which ought for public rea-
! sons. 90 acquire the canal. For the second
| time a became necessary 10 consider the
/ means of saving something from this
property. which must be wholly lost III
\ the canal were not completed Since the
/ company could not raise the money 60
complete the canal. the only practicable
course was to sell the property"
]