The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1902-10-28
The Company is Able to Give
us One.
THUS DECIDES Mr.. KNOX
r.. Decision is Arrived at After a thorough
and Exhaustive Investigation of the
Situation in Paris bv Russell
and Knox.
and Knox.
NV the Associated Press.)

washington, D. c., Oct. 25.-Attorney-
,-.,ts1 states should accept the offer of
r, New Panama Company, submitted
,-- snring. FOR the sale of the canal for
.p aGn. 900. it would receive, through the
,.rties in interest, a valid and unincum-
t.r.l title TO the property. The decision
mas arrived at after a thorough and ex-
b,-stiyc investigation of the situation in
p.rfs first by Special Attorney Charles
n. Russell and later by the Attorney
General himself. The Acknowledgement
..rnalIv submitted the opinion to Presi-
tnt Roosevelt today. 1t makes about
three hundred pages.
The history and nature of French com
,anies of the kind in question are ex-
Stained at length in the opinion. They
arr said to be altogether different from
1r corporati0ns. but to be easily un-
z.rsrood if looked upon as private part
r.rshfrs which is their essential charac-
-ar The opinion says they are in some
RESPECTS regulated by law, but that these
regulations do not change the essential
character eli the concerns as partnerships.
ea not establish any tie between them
and the government, or any obligations
from them to the government. and do not
forbid the exercise Of the liberty to dis
pose Of their property as freely as an
Individual dispOses of his. if no special
law forbids, and if he is solvent and
not under some particular contractual or
other like obligations to retain the prop
rr,v. The New Panama Company is
-.-~ -.1rr.N+ and fhApp - No low fo,
bidding it 10 sell.
The powers of the general meeting of
stockholders of that company are dis
ussed and it is held to have derived
from the partnership agreement ample
power 10 sell AS it is proposing to do
The liquidator of the old company,
when he turned over the assets to the
new company, stipulated for so per cent
Of the profits of the canal when finished
and his power to consent TO the sale
and give up his right to the 60 per cent
IS discussed in the light of the French
law concerning the winding up of such
gssocia;iors. and it is held that under
the general law OF France and the special
act Of 1898 concerning the liquidation of
his company he has full power to dis
pose of the assets of the concern. and
.+ d. --+ " ~CAASNA ~ IN Pkti VI
The 30 per cent which is a part of those
assets. 1t is held that the old com
rany is No- in bankruptcy. or in what is
similar Jo bankruptcy under French law,
hut is governed by the general law or
civil code which the special law of 1893
already referred to partially modified
That law requires the approval of the
civil tribunal of the Seine for all sales
or alterations of the assets, but does
not prevent such alterations. The tri-
tunal has approved the consent OF the
l~ilidat0r TO the sale, and on appeal by
a b0ndholder of the old company the
Court Of Appeals of Paris confirmed the
decision which held that under the spe-
oal law Of 1898 a legal representative
ot the bOndhOlders had been appointed
br the court TO represent them all, and
that that representative who has for
mally announced his consent to the sale
was the only one authorized by the spe-
@al law TO oppose the judgment of ap-
prevail on behalf of the bondholderS.
As TO the proposition that the United
States would be subject to the debts ant
claims Of the stockholders and bondhold-
frs and other creditors Of both OF the
companies, the opinion says:
AS q general proposition, it is no
perceived how there could be any Law
Or equity for subjecting a purchaser o
I'm article sold as assets OF a failing
Partnership (such as the old company
10 Oh" debts Of the partnership. If sucl
We're the law, there would be no pur'
faasars of such assets. and the creditor:
#o1I' receive no payment of their debt
Gilt o. he proceeds nor stockholders an!
aFIdaud Of a residue"
Nevertheless. the opinion ~eXhaustivel
'51slda rs all possible mortgages and oth
'T liens affecting the property itselr
i"al or PERSONAL. under French or Colon
l'an law, It says there have been mort
cages ana pledges OF personal property
fHd shows in detail what became OF them
rs To the proposition that the unite
H'atas cannot take title to the shares o
stock IF the Panama Railroad Company
q New York corporation, which IN
-aaama company proposes to sell VII
me canal property. the opinion holdS ina
.a" government can take and hold an
KIND Of property it may have need OF, |
" ma manner as an Individual can
mat it would hold its shares as an IN
"El.Dal would hold them.
as 70 the objection that Congress ma
authorized & purchase from the compan