Evening journal., 1902-10-27
CANAL TITLE
NOW PERFECT
Attorney-General Knox Sub
mits Favorable Report on
Panama Route
BRIEF SYNOPSIS OF THE OPINION

Washington. Oct. 2S.--Attorney Cen
eral Knox has decided that if the Unit
ed States should accept the offer of the
new Panama Canal Company, submit
ted last spring, for the sale of the canal
for $4,000, ,000 it would receive through
the parties in interest a valid and un-
incumbered title to the property. This
decision was arrived at after thor
ough and exhaustive investigation of
the situation in Paris, first by Special
Attorney Charles w. Russell and later
by Attorney General Knox himself.
The attorney general formally submit
ted the opinion to President Roosevelt
on Saturday. It.makes about 300 pages.
The following is a synopsis of the
opinion:
The attorney generals opinion to the
president on the title which the new
Panama Canal Company Of France OF
fers to the United States Of all its
rights and property on the Isthmus OF
Panama opens with a history of the
concession made by Colombia in 1878,
1890, e.. ne formation of the De Les
seps sa-na Canal Company OF
France. lie failure of this company in
1883, the transfer in 1894 of all its
rights to the present Panama Canal
Company of France by the liquidator
appointed by the French court to wind
up the affairs of the old company, and
of the laws passed by France concern
ing the liquidation of the old company.
The opinion then takes up the prin-
cipal objections which have been made
in this country to the title proposed
to be given to the United States. These
objections, it says. resolve themselves
into reasons in support of the follow
ing propositions:
1.-That the new Panama Canal
Company has not power to sell the
canal and railway property.
2.-That the liquidator of the old
Panama Canal Company has not power
to consent to such sale.
3.-That the French courts have mol
power to authorize the liquidator and
the new company, or either Of them, e
enter into the sale.
4.-That, at all events, the United
States would take the property as
trust fund subject to the total obliga
tions to the stockholders. the bond
holders and the other creditors Of bod
companies.
The history and natures of Frenci
companies of the kind in question ar
explained at length They are said q
be altogether different from our cor
porations, but to be easily understood
If looked upon as private partnerships
which is their essential character.
The opinion says that they are il
some respects regulated by law, bu
that these regulations do not chang
the essential character of the conces
sions as partnerships, do not establisl
any tie between them and the govern
ment or any obligations from them Z
the government and do not forbid IN
exercise of the liberty to dispose @
their property as freely as an individ
ual disposes of his If no special lay
forbids and If he is solvent and not un
der some particular contractual O
other like obligation to retain the proT
erty. The new Panama Canal Compan
is quite solvent, and there is no la'
forbidding it to sell.
The powers of the general meetin
Of stockholders of that company Al
discussed, and it is held to have derive
from the partnership agreement ampl
power to sell as it is proposing to do.
To the opinion are attached $50 page
of exhibits in support Of its state
statements.