New-York tribune., 1902-03-20
PANAMA CANAL RIGHTS.
TWO REPORTS FROM THE SENATE
COMMITTEE on CANAL.
MAJORITY HOLD THE FRENCH COMPANY's
TITLE INVALID-MINORITY CON
SIDER IT CLEAR.

SlDi-IN IL Nl@L@-AAN'
Washington March Ex-senator Morgan, from the
Committee Isthmian Canals, today presented TO
the Senate the majority and minority reports of
that committee on the question of the validity Of
the title Of the Panama Canal Company and
its right to transfer its property 10 the United
States for $40 coo 600 The objections of the majority
the title held by that company are based largely
on the relations of the canal company the gov
ernments OF France and Colombia, but many other
phases of the question discussed at length
Among these is the relation Of the shareholders
who subscribed $3.50 600 to the old Panama COM
pany, whose interests it held cannot be lightly
regarded On this point the report says:
The spectacle of the United States Congress au-
thorizng the President as the agent Of our govern
meht, 10 c0nduct q trade with such corporditttuL
Uhe new Panama compa ly) without consulting
Panama company asserts viii be "ntreiy new in
the history of nations and IT'S consequences cannon
agreeable relations with large and influential
body of the worthy people Of France. whose friend
ship for has been CHERISHED during the entire life
sacrifices for our ' country Wien this government
was IN me travail OF IT'S orth. ma 'eH, 1 me
the fact that men, who make this offer are chief
dred thousand Frenchmen OF S25o,oOO,0oo.
Speaking further Of the obligations of the new
company TO the old the majority say:
If Mr.. EteI and his associates get $40 100000 from
tered from the clam claims Of tneso dSfranded and de-
SPoned 30nd9oaerS ana stoskhoiqers by 1mT aeseq @
escape Justice in American courts and would he
to tho bondhoiders and 10 the stocks bearing inter
est before applying any Of 1t to the profits OF their
VIEWS OF THE MINORITY
The minority report which was prepared by Sen
ator Kittredge completely upholds the title Of the
new Panama company, will be seen from the fol
lowing extract which constitutes the opening para
graph:
The title Of the new Panama company TO It's con-
CCSSlOnS and other property from the facts
and documents which have been laid before the
SUBCOMMITTEE and is clear and free from any com
plicatons. For transfer of it's concessions to the
United States the consent of Colombia is requisite
but this consent has been given by the government
of that country as fully ii can nov be given In
States different concessions and different rights
must he obtained by treaty between this country
involve consent to the sale by the company of its
states such a treaty. Colombia has shown and de-
clared is readiness TO make. on every other point
transfer its property 10 the United States is per-
Ietuy '!tdI' livery INK IN thc CIlah OF us I'e ana
every step In the course ny which II became In n
position 70 sell its property free and clear is plain
1 and satisfactory.
The report then reviews the entire origin and his
tory of the Panama Canal Company and finds that
the affairs or the old company disposed OF by
a French court In straightforward way when tina I
company became nsolvcnt, and that the court had
n perfect right not only to appoint a hqudator, or
/ receiver. but to confer him done power
TO grant or contribute to any new company all or
part OF the corporate assets.
The various objections to the company s
title then considered and answered. The fol-
4 lowing explanation is made Of the reasons why
tho new company should desire 10 sell:
Under the title thus acquired the new company
took up the work and continued 1t until a large
part Of its capital had been expended. II would
. become necessary TO raise funds FOR the Compie-
zion OF the canal from the public. BY this time.
however, new danger menaced Il, in tho an
nouHc'd intention Of the United states 10 build an
l~thIui.u canal Investors could be induced TO fur
uisn money only by the prospect Of a profitable
return. But II the canal must compete with one
md n, uybi and
would disregard al question OF profit. tho chance
uf Il profitable return gone. II would not
complete the canal and therefore money
could not be raised 10 complete X. "A engineer
ing proposition the canal perfectly feasible.
and was attractive; as commercial proposition
! the certainty OF the competition Of the United
States made II impossible. except under the au-
spices Of governments which might for public
. reasons. acquire the canal. For the second time
IL became necessary to consider the means OF
saving som"t hing from this property. which must
Ic wholly lost II the canal were not completed.
Since IN" company could not raise the money 10
complete the canal. the only practicable course
to sell The property.