Evening star., 1902-01-07

| government"
! The Panama Railroad.
| The situation to Panama is radically
/ different There exists, first, a contract
| between the Colombian government and
! the Panama Railroad Company entered
| into in 1S49, after a French company or
ganized for the same purpose, had failed.
| In its present form the contract entities
| the company to the use and possession of
the railroad, the telegraph between Colon
| and Panama, the buildings, warehouses and
| wharves belonging to the road, and, nj gen
era1, all the dependencies and other works
| now in its possession necessary to the
| service and development of the enterprise
| for a period of ninety-nfne years from Au
| gust 16, 1867 At the expiration of this
term the government enters into absolute
ownership of all the rights of the COIN
| pany and immediate possession of the prop
! erty. The republic is bound to grant no
| privilege during this term to any other
company or person to open any other rail-
| road on the isthmus, nor without the con-
sent of the company to open or work any
| maritime canal there to the west of a
| line drawn from Cape Tfburon on the At
! lantic to Point Garachine the Pacific
nor to establish any such connection f.
SELF But the company cannot oppose the
construction of a canal except directly
! along the route of it's road, and the con-
sent required is only to enable 1t to eX
act equitable price for the privilege and
as indemnification for the damages 1t may
suffer by the completion of the canal. 1t
is stipulated that the company shall for
felt its privilege should it cede or transfer
its rights to any foreign government.
Thus it appears that the canal situation
is complicated by the railroad concession,
the Colombian government being absolute
owner of the railroad line and equipment
in 1866, should other agreement be
made meanwhile with the joint consent of
the Panama Railroad and Canal Companies
and the Colombian government.
The Canal Concession.
AS to the canal itself, according to the
agreement now existing between Colombia
and the canal company, the work must be
finished October a. 1910. According to this
contract the Colombian government is en-
titled to share in the gross income of the
canal from all sources on an increasing
scale of per cent at first to 8 per cent
from the seventy-siXth year after its open
ing to the termination of the privileges in
ninety-nine years. Four-fifths of these
amounts are to go to the republic and one
fifth to the state through whose territory
the canal may pass, the share of the repub
lie being guaranteed to be no less than
$25O,OOO year. Thus it appears that both
the railroad and the canal concessions now
held by the Panama company-the canal
and railroad companies being practically
identical-are on a ninety-nine-year basis,
that for the railroad company expiring, Of
course, sooner than that for the canal
company, inasmuch as the canal has not
been completed and the privilege term not
commencing until the completion of the
canal so that if the United States should
succeed to the rights of both the canal and
railroad companies under existing condi-
tions the Colombian government would in
1866 become absolute possessor of the rail-
road property and at some future time
2809, under the present contract-the abso-
lutte possessor Of the canal itself.
No Obstacles in Nicaragua.
1T appears says the commission, that
no existing treaties with Nicaragua, Costa
Rica or Colombia give to the United States
the right to occupy the territory of any of
these republics for the purpose of con-
structing and operating a maritime canal.
The concessions and grants heretofore
made by these republics to and with cor
porations, associations and individuals
thoriZing them to establish and maintain a
communication across their territory from
ocean to ocean, whether by land or water,
in terms exclude the right of the conces-
sionaires and grantees to transfer them to
foreign government. The purchase, there
fore, by the United States of any such
concession grant would be Intellectual
unless it would be accomplished with the
consent of the republic by which the privi-
leges were granted, and the terms upon
which such consent will be given must be
arranged by diplomatic negotiations.
1T also appears that the only prior obl-
cations to corporations, associations or in
dividuals, in the way of a direct agree
acquire authority from Nicaragua and
Costa Rica to use their territory for the
construction of a canal, to be under its
control management and ownership have
been eliminated by the forfeiture and term-
nation of the contracts with the maritime
canal company of Nicaragua and the Inter-
oceanic Canal Company, and if these for
FIXTURES are final there are no private rights
In the way of continuing at an appropriate
time negotiations with these two republics
to acquire the consent and authority nee
essary for the accomplishment of this pur-
pose"
Cost of Governmental Grants.
! The commission discusses the question of
| probable cost Of obtaining the necessary
| grants from the republics involved finding
| no better basis of consideration as to the
| Nicaragua canal than the latest contract
| made by Nicaragua with the Eyre-Cragin
| Company in 1898. Under this contract Mic
| aragua was to receive per cent of the
| company's stock, fulI-paid and non-asses-
| sable. not less than So coo, 900 in par value
| For 1919 years from the day of opening to
universal traffic the met profits of the canal
| were to belong to the stockholders; for 90
! years following the stockholders were to
| receive accumulative annual dividends of
| 10 per cent and of any balance remaining
| the company was to pay half to the re-
| public and half to the stockholders; after
this period the net profits were to be divid-
I ed equally between the government and the
| stockholders. The company was granted
certain important privileges Incidental to
| the canal maintenance, such as banking
rights. police rights and the right to pur-
J chase two and one-half million acres of ma
| tional land for 81 900 600 The commission
| says: Taking all these privileges into
| consideration this is by far the most liberal
| contract that has been made by Nicaragua
In connection with this subject, and 1t is
| of special significance, because it is the
| most recent in date and is the latest ex-
preston and act of the government from
| which an inference can be drawn as to the
value that would be set upon such a con-
cession or grant that would authorize the
| United States to construct, manage and
| operate a maritime canal through the ter
| ritory of the republic"
New Arrangement for Panama Neces-
! sary.
Referring again to the limitations govern
! ing the Panama Canal Company's contract
| with Colombia, the commission says:
This being the situation, 1t was manifest
| that, even if the privileges of the companies
| could be purchased by and transferred to
| the United States, they were incumbered
| with charges and conditions that would not
| permit this government to exercise all the
| rights of complete ownership over canal