Evening star., 1902-01-07


do not permit the company to transfer or
attempt to transfer its rights to foreign
government
Negotiations With Panama Company.
The commission entered into negotiations,
however, with the Panama Company to
ascertain, first, whether the company was
| willing to sell its right, property and un-
| finished work to the United States; second,
| whether the cornpany had the legal power
! to make such sale and to give the pur-
| chaser a perfect title, free from all incum-
| brances and the claims of the stockholders
! and creditors faf the old company; third,
for what sum in cash the company would
| sell it's rights, privileges, franchises and
property Of every description connected
with the construction of the canal. In
asking the president of the company for
a reply to4these queries, President Walker
| of the canal commission acknowledged that
the commission was well aware that the
| concession owned by the company prohibit
| ed sale or transfer to a foreign govern
| nnent and suggested that in the discussion
| of the subject the consent of Colombia
might be assumed. The correspondence
| with M. Huttn on these points was pro-
| longed and In the main unsatisfactory to
the commission, and it was not until Just
prior to the submission Of the commits
sion's report to Congress that an estimate
| of the companys property values were
submitted, stating the net figure at s109,-
IA, 800
Rights of the Old Company Involved.
| The commission says that an examination
of the title Of the present company to the
canal property under the laws of France
and Colombia has satisfied 1t that the new
| Panama Canal Company has the entire con-
| troll and management of the canal property,
lo{1
court to settle the affairs of the old COM
| pany contributed under the charter all the
privileges and property of that company to
the new organization, and in consideration
! of this contribution he will be entitled to
receive 60 per cent of the net income after
paying all expenses, charges and stipulated
| dividends to be distributed by him among
| the parties at interest.
| This right to share in the profits gives no
| right to the old stockholders to take any
part in the acts of the administration Of
| the new company. but the charter recog-
| nzes a continued interest of the old COM
| pany in the affairs of it's successor by con-
ferring upon the liquidator until the com
| pletion of the canal the power to appoint
commission of three members to inspect the
| progress of the work, the condition and
maintenance of the plant and buildings, as
well as the accounts relating to these diff
ferent objects, the expense of the commits
| sion to be borne by the new company.
1T will thus be manifest" says the COM
mission, that if an agreement be made for
the purchase Of the companys concession
| and property by the United States 1t must
| include some settlement of this right which
the French court has placed under the con-
| troll of the iquidator, and il a sale is eff
| fected the liquidator must unite in it under
the authority of the court from which Re
received his appointment"
The $4,000, 900 Estimate.
AS against the Panama Company's esti-
| mate of $109, 141 500 as the value of its
| plant. the commission estimated as follows:
Excavation already done. .s27, ,474 .O33
| Panama railroad stock, at par. 6,S5O 900
| Total ...........................$ $36 ABB 033
To this was added 10 per cent to cover
omissions, making the total valuation of
! the Panama canal $4O,OO0,OOO.
| General Features.
| In the general conclusions as to the rela-
! tive advantages Of the two routes, the
commission points out that while longer
| in itself, the Nicaragua route will offer a
shorter water course in the average of
oceanic travel. For the commerce in which
| the United States is most interested. that
! between our Pacific ports and Atlantic
| ports, European and American, the Mica
| ragua is shorter by about one day. The
| same advantage exists between our At
| lantic ports and the orient. For our gulf
| ports the advantage Of the Nicaragua
route is nearly two days. For commerce
! between North Atlantic ports and the west
| coast of South America the Panama route
/ Is shorterfby about two days, and between
| gulf ports and the west coast of South
! America the Panama saving is about one
| day.
The commission estimated the cost of the
! Nicaragua route at $1S9, ,S64, ,062 and the
| Panama route including the $4,000 600 for
| the work accomplished and property in
hand, at $1sa, 1885, ,35s.
BalancinE Minor Advantages.
| In the matter of maintenance the advan-
tage lies Hitheethe Panama route. the COM
! mission estimating that it will cost $2,-
| 100000 year to operate and maintain the
| Panama canal and So. 800, 900 for the Mica
ragua canal, owing to the greater length
| Of the latter.
The commission found that for all prac-
| tical purposes of canal operation the water
| supply features on both lines are satisfac-
tory.
The advantages in the design and con-
| struction of the dams along the canal are
/ in favor of the Nicaragua route, while the
I advantages as to natural harbor facilities
] lie with Panama.
| In convenience of working In construc-
| tion the advantages probably lie somewhat
/ with Nicaragua. owing to- the opportunity
for a greater distribution of force, while
| Panama route and its less amount will not
require so great force of laborers as or
| the Nicaragua route, hence the difficulties
| and delays involved in securing them will
be correspondingly diminished.
| The commission estimates that 1t viii be