The Topeka state journal., 1902-01-21
two canals as follows:
Nicaragua, $1S9, ,S64, ,062; Panama

two canals as follows:
Nicaragua, $1S9, ,S64062; Panama,
s184, ,233, 1853.
Transfer would give title to all the
land now held by both the Panama
Canal company and the Panama Rail-
road company which covers nearly all
lands required for the construction Of
the canal. The land held by private
parties at Nicaragua must be acquired
and its acquisition may prove expen-
sive.
The question whether the new Pan
anna Canal company can make to a
purchaser valid title to the property
formerly belonging to the old company.
its predecessor, has been considered and
answered in former reports of the COM
mission, but in view of it's Importance
in connection with the present the re-
suits of the investigations made will be
again presented.
The old company, in addition to it's
canal property acquired under a conceS-
sion from the Colombian government
Panama Railway company. By pur-
chasing these it obtained control of
concessions under which the road had
been built. The latter concession will
continue in force until 1865, the canal
concession is to run for 80 years from
the day on which the canal shall be
opened to public service and the date
of this in the concession, according 10
it's latest extension, is October 81, 1910.
When these periods expire the differ
ent properties are to belong absolutely
to Colombia without compensation, and
the government is under no obligation
to extend either concession
The canal company is absolutely pro-
hibited to cede or mortgage its rights
under any consideration whatever to
any nation or foreign government un-
der penalty of forfeiture. The contract
with the railroad company contains a
like prohibition and declares further
that the pain of forfeiture will be in
CURED by the mere act of attempting
to cede or transfer it's privilege to a
foreign government and such an act is
declared absolutely null and of no val
ue or effect.
But for the purpose of permitting the
new Panama Canal company to enter
upon the negotiations which have re-
suited in the present offer, Colombia
has waived these prohibitions and has
authorized the company to treat direct
ly with the United States with a view
to the use and occupation of the treaty
of the former for canal purposes if our
government should select the Panama
route for an isthmian canal.
After the old company failed a Hqui-
dator 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 con-
tribute to it the rights, privileges, plans,
documents, plant and unfinished work
in his hands and under his control and
in consideration of this grant he was
to receive sixty per cent of the net
all expenses, charges, stipulated divi-
dends to be distributed by him among
the parties in interest.
The interest of the old company is
still under the protection of the liqui-
dator and he must be a party to any
arrangement that may be entered into
for sale and conveyance of the prop
erty and as he derives his authority
from the tribunal that appointed him.
his action requires the approval and
confirmation of the court.
The papers before the commission
show that the liquidator had agreed to
the proposition and that he is acting
under judicial authority.
A deed to the property executed by
the canal company and the liquidator
requires the approval of the government
of Colombia, because of the prohibition
already referred to in the concessions
and for the further reason that the
republics own $4,000 shares of 100 francs
each of the stock of the company, fully
paid of which it can not be deprived
without its consent.
Such a 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 it would not be
sufficient
chased would be valuable only because
their ownership by the United States
would remove the obstacles in the way
of negotiations between the two govern
ments for the occupation of Colombian
territory by the United States for the
canal purposes; but these concessions
are unsatisfactory and insufficient and
a new arrangement must be made If an
isthmian canal is to be constructed by
our government across the isthmus of
Panama.
The grant must not be for a term of
years, but in perpetuity, and a strip of
territory from ocean to ocean of suffi-
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