Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1902-10-27
Such is Attorney General KnOs's
Opinion
HISTORY OF CONCESSIONS.
o.,.,on Arrived nj After Thorough
.g,baustlve Investigation OF
The situation nj Paris

washington, oct' n.y.
80 has decided that II Inc
,rn,,ed states should accept the olter
~ the new Panama Canal company,
an,m,tted last spring, for the sale OF
49, canal for s4O,00OO 900, 1t would re-
enS through the parties In interest,"
liza and unIncumbered title 10 'he
nroperty. This decision was arrived at
a,ter a thorough and exhaustive ihVes-
,,rstlon OF tss situation at Paris hrst
i've speclal Attorney Charles W. Rus
san and later by the encouragement
,,nself The Encouragement iorinai-
=, s,hmltted the opinion TO President
ssavel, today 1t makes about "VV
pages. The following Is d syhop''''
OPINION IN BRIEF.
The attorney generals opinion to the
o,ssident on the title when the nc"
panama Canal company OF france o.
ters 10 the United states OF al lts
rtehts ana property on the isthmus OF
psnoma opens with a history OF me
a'ncssJons made by Colombia In 1915
,ScO etc the formation Of the DE Les
ssns panama Canal company OF France,
,he failure of this company In 1888, ana
,hs IN nsfer In 1894 of all its rights 10
,Se nresent Panama Canal company OF
vance by the liqudator appointed by
,he French court to wind up the az
taIra of the old company, and OF the
laws nassed by France concerning the
MouldatIon of the old company. The
onInion then takes up the objections
which have been made IN this country
IN the tile proposed to be given TO the
limited States These objections IL
saws resolve themselves into reasons
In support OF the following PROPOSE
tons c,,,oi
Frst--That the new Panama Canal
company has not power TO sell the canal
and railway property.
Second-That the liquidator Of the OLD
Panama Canal company has not power
10 consent TO such sale.
Thrd-That the French courts have
not power to authorize the liquidator
and the new company or either OF
them. to enter into the sale
Fourth-That. at all events. the
United States would take the property
as trust fund, subject to the total
obligations to the stockholders the
bondholders and the other creditors OF
both companies,
HISTORY OF FRENCH COMPANIES.
The history and nature Of French
companies Of the kind In question are
explained at length. They are said to
be altogether different from our corpo-
ratious but to be easily understood II
hooked upon as private partnerships,
which is their essential ,2aracter.
The opinion says that they are In
Yome respects regulated by law, but
that the regulations do not change the
essential character OF the concerns as
partnerships, do not establish any tie
between them and the government, or
any obligations from them to the gov
eminent, and do not forbid the exercise
Of the liberty to dispose Of their prop
erty as freely as an individual disposes
Of his, IL no special law forblds this II
he Is solvent and not under some par
ticular contract or other like obligatp on
10 retain the property. The new Pm
anna company Is quite solvent, and
there is no law forbidding It TO sell.
The powers Of the general meetings OF
stockholders Of that company are dis
oussed and II Is held to have derived
from the partnership agreement ample
power TO sell as It is proposing to do.
STIPULATION OF LIQUIDAToR.
The liQuidator Of the old company.
when he turned over the assets to the
new company, stipulated for 50 per cent
IA Of ha MI In
ished, and his power to consent to the
sale and give up his right 10 the 60 per
cent Is discussed I'm the light OF TIE
french law concerning the winding up
OF such associations, and IL Is held that
unier the general law OF France ard
the special act of 1893 concerning tire
nquldatolon Of this comply he has full
power to dispose of the assets Of the
concern and consequently to consent TO
Inc sale Of the 60 per cent which Is n
part OF those assets. Ii is held that
tht old compny is not in bankruptcy
Or In what is similar TO bankruptcy
under the French law, but Is governed
ny the general law or civil code, which
me special act OF 1898 already referred
10 partially mobiles. That law re-
Quires that approval OF the civil trib-
uhal OF the Seine for all sales or allen
eilons of the assets. but does not pre-
vent such alterations. That tribunal
nas approved the consent OF the liqui-
eator 10 the SALE and on appeal by
bondholder OF the old comapny. the
court OF appeals Of Paris confirmed, the
osc'sion, which held that under the
special law Of 1898 legal representa-
1--WE OF the bondholders had been ap-
pointed By the court TO represent them
sli ana that that representative, who
naa formally announced his consent to
,W sale was the only one authorized
" he special law TO oppose the judg-
Hent OF approval on behalf Of the
oonthoders
POWER OF FRENCH COURT.
The opinion next discusses the power
% me French court to declare a law OF
tna! Kind void, as unconstitutional, and
holas mat no French court or other
suhority has power TO declare any
tNneh statute void The opinion
taya, however that the French special
~ ought not to be declared void, and
y II Is to be criticised at all II is for
uVlng too tender OF the private rights
va remedies OF those interested and
fot sufficiently like bankruptcy Law.
as 10 the proposition that the United
snues would be subject to the debts
ano claims Of the stockholders and
vondholders and other creditors OF
says: 'p0
LIABILITY OF UNITED STATES.
rs general proposition II Is not per-
.eNed how there could be any law or
squlty for subjecting an article sold as
s .e,s OF a falling partnership (such as
Wv Ola company to the debts Of the
Partnership. II such were the Law,
Were would be no purchasers OF such
ssfeis, and the creditors would receive
~ payment OF their debts out Of the
Needs nor the stockholders any divi-
teha OF a residue. Nevertheless. the
slhion exclusively considers all pos.
e mortgages and other liens affect
me property itself, real or personal.
nuer French or Columbian law, II
tys there have been mortgages OF Pc.
Enai property and shows In detail
,rat mas become OF them. AS TO The
proposition that the United States can.
IOt TAKE fifla 20 the oha.ao % -t,,f.