The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1902-01-22

government uuQCI pCudtty VI
The contract with the railroad company
contains like prohibition and declares
further that the pain of forfeiture will
be incurred by the mere act of attempt
ing to cede or transfer its privileges to
Ia foreign government and such an act is
declared absolutely null and of no value
or effect, but for the purpose of per-
Knitting the new Panama Canal Com
pany to enter upon the negotiations
which have resulted in the present offer,
Colombia has waived these prohibitions
and has authorized the company to treat
Directly with the United States with a
view to the use and occupation OF the
territory of the former for canal pur-
poses if our government should select
the Panama route for an isthmian canal.
After the old company failed a
liquidator was appointed by the French
court to take charge of it's property and
affairs When the new company was
formed he was authorized to contribute
to it the rights, privileges, plans, docu-
ments. plant and unfinished work in the
hands and under his control, and in con-
sideration of this grant, he was to receive
sixty per cent. of the net profits of the
enterprise after deducting all expenses,
charges and stipulated dividends to be
distributed by him among the parties in
interest. This interest of the old COM
pany is still under the protection of the
,liuuidator and he must be party to any
arrangement that may be entered into
for a sale and conveyance of the proper
ty. and as he derives his authority from
the TRIBUNAL that appointed himIis action
he nud rnnfrmQt ion
of the court. The papers befre the COM
mission show that the liquidator has
agreed to the proposition, and that he is
acting under judicial authority.
A deed to the properly executed by
the canal company and the liquidator re-
quires the approval of the government
of Colombia because of the prohibition
already referred to In the concessions
and for the further reason that the re-
public owns $4,000 acres of 100 francs
each of the stock of the company fully
paid, of which it cannot be deprived
without it's consent. Such transfer of
title thus approved 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 sufficient. The exist
ing concessions thus purchased would
be valuable only because their owner
ship by the United States would remove
the obstacles in the way of negotiations
between the two governments for the oc-
cupation of Colombian territory by the
United States for canal purposes; but
these concessions are unsatisfactory and
insufficient and a new arrangement must
~ do N icfhnoian canal lS TO be
constructed by our government across
the Isthmus of Panama.
The grant must be not for a term of
years, but in perpetuity, and strip OF
territory from ocean to ocean OF suffl-
cient width must be placed under the
control of the United States. In this
strip the United States must have the
right to enforce police regulations, pre-
serve order, protect property rights and
exercise such other powers as are ap-
propriate and necessary. The business
relations between the railroad and canal
companies and the Colombian Govern
ment must also be settled.
The advantages of the two canal routes
have been restated according to the find
ings of the former report. There has
been no change in the views of the Com
mission with reference to any of these
conclusions then reached. But the new
proposition submitted by the new Panama
Canal Company makes a reduction OF
nearly seventy million dollars in the
cost Of a canal across the isthmus OF
Panama, according to the estimates cor
tanned in the former report.
The report concludes as follows
After considering the changed con-
ditions that now exist and all the facts
and circumstances upon which its pres
ent judgment must be based, the commits
sion is of the opinion that 1.-The most
practicable and feasible route for an
Isthmian Canal, to be under the control
management and ownership ofsthe United
States is that known as the Panama
route"
The report is signed by the entire COM
mission.
The State Department will now proceed
, to arrange protocol with Minister
Silva engaging Colombia to approve the
transfer of the franchise of the Panama
Company and to make any desirable eX-
tension of time, both in the allowance
for the completion of the canal and in
the life of the lease