Evening star., 1902-03-01
THE CANAL OUTLOOK
Congressional View of Co.
lombia's Action.
OF UTMOST IMPORTANCE
UNFRIENDLINESS MANIFESTED
AMONG THE FRENCH.
Declared That Good Title Cannot Be
Obtained-Views Of Senator Nor
gan and Mr. Hepburn.

The situation in relation to the Panama
canal, as developed at the meeting or the
| directors of that company, in Paris, yester-
day. Is regarded at the Capitol as of the
| utmost Importance in its bearing upon the
| canal problem now being considered by
| Congress. The situation is such that many
people here regard the possibility of this
| country securing the Panama canal route
! even if it should SO desire, as entirely out
| of the question. Besides the objections on
| the score Of engineering difficulties that
| advocates of the Ncaraguan route have to
| any attempt to build a canal at Panama
I there is the practical impossibility of get
| ting a title to the Panama route, even If 1t
should be willing to appropriate the forty
millions of dollars asked for the property
| Of the Panama company.
A Confused Situation.
Colombia having objected to the sale of
| the Panama property, the Panama Canal
Company is obliged to face the provisions
| of the concession under which it has prose-
| cuted it's work, and has secured such rights
| as it has enjoyed on the Isthmus of Pan
ANA. Continuing the work on the canal the
] Panama company can remain In possession
of it's canal route until the year 1910. 1t
makes no difference whether this work is
! prosecuted with few men or with large
| number of men. The fact that the work
| continues would it is confidently believed
| by those who are fully posted on the canal
problem, warrant the French government
in representing to Colombia that no act
should be attempted by that government to
| disposseSs the canal company until the con-
| cluSion of the ConceSSionary term is pro-
! nounced. On the other hand the stipula
! ton in the concession is such that the
| canal company itself cannot dispose of it's
| property to this government without the
| consent of Colombia.
] Even should Colombia and the canal COM
! pany come to an agreement for the DISPOSE
| tion of the property to the United States.
| result that is not likely in view of the posi-
| tion taken by the government of Colombia
| and by the attitude of the French people
! during the last few days the properly
could not be conveyed to this government
| This is so for the reason that the conces-
| sions which have been given the French
government have been acts of congress or
Colombia. and in order to nullify them
other acts of congress would have to be
passed. The present condition of tte%ee-
! lombian government is such that men who
| are we'll posted in diplomatic affairs de-
! clare that they do not know what the Co
| lOmbian government is today. 1t is entirely
prob ematical how long it will take in order
| to clear up the situation in Colombia SO
| that stable government will be recOgniZ1i
| to deal with. The entire situation is re-
garded as promising indefinite delay on
any proposition relating to the Panama
| canal, and only trouble is anticipated in
any attempt on the part of this government
| to straighten out the tangle that has been
| woven in every part of the problem.
| Attitude of the French.
But much more important than the action
! by the Colombian government in notifying
| the new Panama Canal Company of its
| opposition toward any proposition for the
| transfer of that canal property to the
| United States is the attitude assumed by
4 md oh
| men toward the suggestion for selling the
! canal property to this country. Senator
| Morgan, chairman of the committee on
| interoceanic canals when this suggested
purchase of the Panama canal property
| was first made objected to it on the ground
| that he was satisfied that 1t would result
| only in breeding bad feeling between the
! United States and France, and he did not
| believe that if the canal property could be
obtained for practically nothing that this
country would be justified in stirring up
| such animosity with people with whom
| it has always been on friendly terms in
order to obtain what some people might
| regard as bargain. The developments in
| France WITHIN the last few days are re-
garded as amply justifying this view of the
| situa ton. The French people are asking
| themselves why they should not build this
canal and reap whatever benefit is to be de-
| rived from it If it is good enough for the
| United States to take and build.
The report Of the isthmian canal COM
| mission Of the United States has produced
| profound impression on many French
| men. Its Endorsement Of the Panama
route as a practicable one Is strengthen
ing the old reports of French engineers to
| the same effect. On the other hand, Pres
! ident LOubet, as the advocate for the rights
| of 100000 Frenchmen who have put their
| money into this project, believes that no
| effort should be spared to allow them to
| get some benefit from the canal If that is
possible.
The situation is now such that if the ca
pa sold N q ITnita6
| these 100000 persons would be absolutely
| without benefit by the transaction.
Forced Into a Profitable Deal.
! It will be remembered that the organizers
| Of the new Panama Canal Company took
| stock in that company as compromise
| with the French court of the suits that
| were pending against them because of
| their connection with the old Panama canal
scandal, and in order to compromise these
! suits they subscribed sixty millions of
francs toward the new Panama companys S
stock. Under the terms of sale of the
property to the United States these same
| men would receive 100000 francs. which
would give them profit OF about 20 per,
cent on their investment.
This proposition is regarded as highly,
humorous If it were not connected with SO
sad a transaction as has been the entire
Panama canal business. 1t shows that men
who were practically forced into subscrib-'
ing to the stock Of the new Panama Canal
Company, and thereby were relieved from
| the effect of suits against them, would re-
ceive a handsome dividend of SO per cent
on their investment.
Colombia's Action.
] The action of the Colombian government
| is traced by some directly to the sugges-'
! tion that has been made In Congress, that
| II this government is to have a canal at
Panama at all it should secure it by means
of a concession from Colombia direct with
all the guarantees that this government
would require in order to thoroughly pro-
tect it's rights In the future and to keep
than to receive It from the hands of a COM
pany whose right to, give title to the
property Is at least questioned by SO many
high authorities and Is likely to produce