The age-herald., 1902-01-21
THREE VESSELS SUNK
 AND GEN. ALBAN KILLED
 IN BATTLE OFF PANAMA

States will make the estimated cost of two canals as follows:
 Nicaragua ,O62, Panama s1S4, 2SS,- 35s
 The transfer would give title to all the land now held by both the Panama Canal Company and the Panama Railroad Com pany which covers nearly all the lands required for the construction of the ca nal. The land held by private individuals at Nicaragua must be acquired. and its acquisition may prove expensive.
 As to whether the new Panama Canal Company can make to a purchaser a valid title, the report says that while the eaEal company is absolutely prohibited to cede or mortgage it's rights to any na- ton or foreign government under penalty of forfeiture, Colombia has, in order to permit the new Panama Canal Company to enter upon the negotiations which have resulted in the present offer. waived the prohibitions and authorized the company to treat directly with the Unit ed States.
 A deed to the property requires the ap- proval of the government of Colombia because of the prohibition referred to in the concessions and because the republic owns 50,O00 shares of 100 francs each of the stock of the company, full paid. where it cannot be deprived without its consent.
 
 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 suffi- cient The existing concessions thus pur- chased would be valuable only because their ownership by the United States would remove the obstacles in the way of negotiations between the two govern ments for the occupation of Colombian hx+ Tat. purposes; but these concessions are un- satisfactory and insufficient and new arrangement must be made if an isth- milan canal is to be constructed by our government across the Isthmus of Pan anna.
 The grant must not be for 99 years as at present the canal to then revert to Colombia but in perpetuity and a strip of territory from ocean to ocean of suf- ficient width must be placed under the control of the United States. The busi- ness relations between the railroad and canal companies and the Colombian gov ernme ent 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. The new proposition submitted by the new Panama canal company makes a re- duction of nearly S70000,00O in the cost of
  It must be assumed by the commission. however, that Colombia will exercise the same fairness and liberalty if the Pana- ma route is determined upon that have been expected of Nicaragua and Costa Rica should the Nicaragua route be pre- ferred.
 The report concludes as follows:
 After considering the changed condi- tions that now exist and all the facts and circumstances upon which it's pres ent judgment must be based the com mission is of the opinion that most prac- ticable and feasible route for an isth- milan canal to be under the control and management and ownership of the Uni ted States is that known as the Pana- ma route.
 The report is signed by the entire com mission.
 The state department will not proceed to arrange a prot ocol with Minister Silva engaging Colombia to approve the trans fer of the franchise of the Panama com pany and to make and desirable exten- sions of time both in the allowance for the completion of the canal and in the life of the lease.
 Will Not Be Abandoned.
 Washington, January 20.-Representa- tive Hepburn of Iowa, author of the Nic- aragua canal bill. which passed the house says the report of the Isthmian canal commission in favor of the Panama route does not change the legislative status of the canal bill. Undoubtedly the re- port will influence individual opinion,' said MT. Hepburn, but 1t will not lead to any abandonment of effort in behalf of the Nicaragua route by the friends of that measure"