Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1902-07-11
FROM WASHINGTON
Correspondence of the Alexandria Gazette
Washington, ID. c., July II.

Correspondence of the Alexandria Gazette.l
Washington, d. c., July IL.
OF the forty million dollars the United
States is to pay for the Panama canal,
SO. 500, 600 will go to the New Panama
Canal Company, and S24, 500, 600, or
fve-eights of the whole, to the receiver
OF the old company. An agreement to
this effect has been reached and notice
thereof has been filed with the
Attorney General among the other
papers relating to title which have been
put on record By Mr.. William Nelson
Cromwell, general counsel of the canal
company. Mr.. Cromwell was in con-
ference with Attorney General Knox this
morning, explaining matters relating to
the title. He will go to Paris within
few days to meet Assistant Attorney
General Russell when he goes there to
make practical examination and study
of all questions relating to this subject
In answer to a question as to what was
the state of the security holders Of the
old Panama Canal Company with re-
latiOn to the sale Of the canal to the
United States, Mr. Cromwell said:
"The security holders of the old COM
pany have no title to or interest in the
property of the New Panama Canal
Company. All the property of the old
company was sold and conveyed by the
receiver of the old company
acting under full authority of the
courts appointing him to the
New Panama Canal Company which
is a private corporation having no
relation whatever with the government
of France, is managed by new
men and is based entirely on a new
capital of $4,000, 900 francs. In con-
nectiOn with this purchase by the new
company it contracted TO pay the re-
ceiver Of the old company 90 per cent.
of the net revenues which might be de-
rived from the operation of the canal af-
ter its construction and completion by
the new company. This relation is
purely matter of contract and does not
affect the ownership or title of the new
company which was expressly declared
to be absolute. The receiver has no
lien upon nor interest in the property
Of the new company. He merely holds
a contract with the new company.
Therefore the new company can make a
valid sale to the United States by its own
deed. However, as a practical matter,
and to cover questions raised in the Con-
gress of the United States, and under
my advice, the company has procured
the full consent of the receiver to the
sale to the United States, thus entirely
dispOsing of that question. In adj
dition and to show their fair spirit the
company has come to a formal agreement
with the receiver, compromising and
adjusting the contractural obligations of
the company in respect of this 80 per
cent. agreement. This agreement was
reached through an arbitrator about
three months ago and the receiver was
formally authorized by the court appoint
ing him to agree 20 such arbitration and
compromise. Of course, the company
acted under its own powers without any
judicial proceedings because the new
company is not in the courts nor under
their jurisdiction. The result of this
compromise and adjustment is that the
stockholders of the new company will
receive about 10, 500, 600 dollars and the
receiver of the old company about "a.
800, 900 dollars, for (which he will account
to the security holders of the old CON-
pany as is customary in all cases of re-
ownership. 1t thus will be seen that
me on per cent. contract, about which so
nuen was said in Congress, is absolutely
ana happily disposed of upon a basis not
only legal but highly creditable and hon
orable to the new COMPANY which con.
tents itself simply with reimbursement
for the new capital of 5000 0Oo tr.ncs
with interest at notexceeding 4 per cent
per annum, thus paying to the re.
ceivership fve-eights of the entire
proceeds Of the sale. Mr.. Crom- !
well stated that be was entirely |
confident that the title of the Panama
Canal Company was valid and its power