Audubon Republican. [volume] (Audubon, Iowa) 1894-1925, 1902-10-30
TITLE OFFERED
SAID TO Be VALID
opinion as to Panama Canal
Is Filed by Attorney
General Knox.
MADE CAREFUL EXAMINATION
Tho Attorney General Has Arrived at
the Conciusion Taat No Liability on
the Part of America 70 Stockholders
Would He Created.

washington, Oct. 27-Attorney
General Knox has decided that If the
United States should accept the offer
OF the new Panama Canal company
submitted last spring for the sale OF
the canal for $40.0O0,000, 1t would re.
ceive through the parties in interest
q valid and unincumbered title to the
property. This decision was arrived
at after thorough and exhaustive in.
yestigation of the situation in Paris,
first by special attorney, Charles w.
Russell, and later by the attorney gem,
era himself. The attorney general
formally submitted the opinion to Pres
ident Roosevelt yesterday. 1t makes
about 300 pages. The opinion first
gives resume of the history from the
beginning of the concessions In 1878,
the formation of the De Lesseps Com
pany, etc.
AS to the proposition that the United
States would be subject to the debts
and claims of the stockholders and
bondholders and other creditors of
both of the companies, the opinion
says:
las a general proposition 1t is not
perceived how there could be any law
or equity for subjecting a purchaser
of an article sold as assets of fail
ing partnership (such as the old com.
pany) to the debts of the partnership.
II such were the law, there would be
no purchasers of such assets, and the
creditors would receive no payment
OF their debts out of the proceeds nor
stockholders any dividends of a
residue"
Nevertheless the opinion exhaus-
lively considers all possible mort
cages and other liens affecting
the property itself real or personal,
under French or Colombian laws.
1t says there have been mortgages and
pledges of personal property, and
shows in detail what became OF them.
AS to the proposition that the United
States cannot take title to the shares
of stock of the Panama Railroad COM
pany. New York corporation, which
the Panama company propoposes to
sell with the canal property, the
opinion holds that the government can
take and hold any kind of property
1t may have need of. in the same man
ner as an individual can; that it could
hold the shares as an individual would
hold them. AS for the suggestion that
the United States at all events could
not destroy the railroad. it Is pointed
out that it was evidently not the in
tention of the French, If they built the
canal, to dispense with the railroad.
AS to the objection that congress
has authorized purchase from the
new company only and not from the
liquidators, the opinion says:
Certainly, in view of the condition
of the title as hereinbefore explained,
the purchase will be from the new
company, and the consent of the
Hquidator will be at most waiver of
rights as to property transferred to
the new company. But IL this were
otherwise it would be unreasonable to
treat the act Of congress forbidding
purchase from the new company in
which it would be necessary for
the old compan.' or the liquidator to
Join as vendor. This would be to de-
feat, not to ascertain the will Of con-
gress. What 1t wants Is title on
certain specified property. the owner
being supposed to be and being admit
teddy in part. the new company;
and 1t Is entirely justifable to buy
from the owner. although the princi-
pal ownership should be found not
to be in the new company. Whether
we believe II is In the new company
or the old company. so long as It
Is not out of both, seems to me
altogether immaterial. since both
Join in the proposed sale"
The opinion closes as follows:
For the reasons have given
am OF the opinion that the United
States would receive good, valid
and unincumbered title"
To the opinion are $50 printed
pages of exhibits in support of its
statamantg