The Butte inter mountain., 1902-03-20
MAJORITY RAISE QUESTION OF
PANAMA TITLE.
MINORITY SAY 1T is GOOD
Senator Morgan Presented the Major
ity Report Which Strongly Favors
the Hepburn Bill Which Is the
Nicaragua Route.
(By Associated Press.)

| the majority and minority reports OF
that committee on the question of the
validity of the title to the new Panama
Canal company and its right to transfer
the Panama canal property to the United
States for 100000.
The objections of the majority to the
title held by that company are based
largely on the relations of the canal com
pany to the governments of France and
Colombia. but the committee also dis
eusses at length many other phases of
the question.
Among these Is the relation of the
shareholders who subscribed $500 600
to the old Panama company, whose in
| terests the report holds, cannot be light
| ly regarded on this point the report
says:
"The spectacle of the United States
congress authorizing the president as the
| agent of our government to conduct a
| trade with such a corporation (the new
| Panama Canal company without con-
sulting France as to the claims of indie
pendence 1t dhe new Panama Canal
company asserts, will be entirely new in
the history of the nations and It's conse-
quence cannot be lightly disregarded.
Among those is the serious danger of
| the United States being drawn into dis
agreeable relations with a large and in
| fiuential body % worthy people of
| France, whose friendship for us has been
cherished during the entire life of our
republic and had It's origin In magnani-
nous sacrifices for our country when
| this government was travail of Its birth.
Defrauded Thousands of French.
Unfortunately, the report of the 18TH
mian canal commission reveals the fact
! that the men who made this offer are
chief among those who defrauded these
six or eight hundred thousand French
men out of $3.50. 900, 000."
Speaking further of the obligations of
the new company to the old, the major
ity report says that If Mr.. Elffel and his
associates get $4,000 600 from the Amer
lean people II Is because they are shelter
ed from the claims of these defrauded
and despoied bondholders and stockhold-
ers by the alleged 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 stockbear-
ing interests before applying 1t to the
profits of their speculation.
The minority report, which was pre-
pared by Senator Kittredge, completely
npholds the title of the new Panama
company, as viii be seen from the fol-
lowing extracts which constitute its
opening paragraph:
The title OF the new Panama Canal
company to It's possessions concessions
and property appears from the facts
and documents which have been laid
before the subcommittee Is clear and
free from any complications.
THE transfer of its concessions to the
| United States by the government of
! Colombia Is not clear, but consent has
| been given by that country as fully as
! II can now be given. The purchase of
the canal by the United States of the
| different concessions and different
| rights must be obtained by treaty be-
tween this country and Colombia. and
such treaty would necessarily involve
assent to the sale by the company of
It's rights and property on the isthmus
to the United States. Such n treaty
Colombia has declared its readiness 10
make.
On every other point the right of
the new canal company to transfer its
property to the United States is clear
| Ever" link In the chain of its title and
every step in the course by which II
agrees TO sell It's property is free and
| clear"
The report then reviews the entire
| origin and history OF the Panama corn-
pafy and finds that the affairs of the
old company were disposed by a French
court In straightforward way when
that company became insoyent, and
that that court had a perfect right NOT
only to appoint liquidator or receiver
but to confer upon him, as was done
power ito grant or contribute to any
new company all or part of the corpo-
rate assets"
The various objections to the new COM
pany's titles are then considered and re-
piled to. The following explanation is
made of the reasons why the new COM
pany should desire to sell:
Why Company Would Sell.
Under the title thus acquired the rew
company took up the work and continued
until large part of it's capital had been
expended. 1t would become necessary to
raise funds for the completion of the
canal from the public BY this time. how
! ever, new danger menaced it i'm the am
| nounced intention of the United Stai es
| to build an isthman canal. Investors
could be induced to furnish money only
by the prospect of profitable return
| but II the canal must compete with one
| built and maintained by the government
| which could and would disregard al
| questions of profit, the chance of profit,
able return was gone.
1T would not pay to complete the cana
and therefore money could not be raised
to complete 1t. AS an engineering propo
sition the canal was perfectly feasibl,
and was attractive. AS a commercial
proposition, the certainty of the competi
ton with the United States made it un
certain unless with the authorization O
| the government which might, for publ
reasons, acquire the canal.
| "For the second time 1t became neces
sary to consider the means of sayin
something from this property whic
l would be lost If the canal were not con,