The evening times., 1902-07-11
AGREEMENT HAS BEEN REACHED
The Old Concern to Receive
Five-eighths, or
S24,5oo,ooo.
TERMS OF OLD CONTRACT
New Company viii Take the Remain
ing sI5,5oo, ,ooo-Attorney General
NOtifed-Mr. Cromwell Explains tha
Division-Is Confident Title Is Valid.

The $40. .60o, 900 the United States is to
pay for the Panama Canal is 10 be ai-
vided. sl5.5OO, 900 going to the new Paua-
ma Canal Company and sz4. SOC, 900, or
FIVE -eighths of the whole, to the re-
cefver OF the old company
An agreement to this effect has been
reached and notice fled with the Attor-
ney General among the other papers
relating to title. which have been put
on record by Mr. William Nelson Crom-
well. general counsel Of the canal COM
pany-
Mr. Cromwell was in conference with
Attorney General Knox this morning.
explaining matters relating to the title
He will go to Paris within q few days TO
meet Assistant Attorney General Rus
sell 10 make a practical examination
and study of all the title questions.
IN answer to a question as TO what
OF the old Panama Canal Company with
relation to the sale Of the canal to the
United States. Mr. Cromwell said:
old Co-7aay Has No Title.
"The seeuTi .ers OF the old COM
pany have ro or interest in the
property OF the Nsw Panama Canal Com
pany. All the property of the old com
pany was sold and conveyed by the
receiver of the old company, acting
under full authority Of the courts ap-
pointing him. TO the New Panama Canal
Company. which IS a private corpora
the government OF France, IS maragei
by new men. and IS based entirely on a
new capital Of 90 600 coo francs.
IN connection with this purchase by
the new company it contracted TO pay
the receiver OF the old company 90 per
cent of the net revenues which might
be derived from the operation OF the
canal after its construction and com
pletion by the new company. This rela-
lion is purely a matter OF contract and
does not affect the ownership or title Of
the new company. which was expressly
declared TO be absolute.
In FuIfllment of Contract.
The receiver has no lien upon or in
terest in the property Of the new COM
pany. He merely holds a contract with
the new company. Therefore the new
company can make valid sale to the
United States by It's own deed.
However. as a practical matter. and
to cover questions raised in the Con-
gress of the United States, and under
ny advice, the company has procured
the fuII consent OF the receiver TO the
sale to the United States. thus entirely
disposing OF that question
In addition and 10 show its fair
spirit. the company has come 10 q for
nal agreement with the receiver ADJUST
ing the construeturaI obligations of the
company in respect of this 60 per cent
agreement.
This agreement was reached through
an arbitrator about three months ago
and the receiver was formally author
lied by the court appointing him to
agree to such arbitration and comprom-
ise. OF course. the company acted under
It's own powers without any judicial pro-
ceedings because the new company Is
not in the courts nor under their iuris-
diction.
Result of q Compromise
The result of this compromise and
adjustment is that the stockholders Of
the new company will receive about S15.-
500 e04 and the receiver Of the CID COM
pany about $24,560, ,000 for which he viii
account to the security holders OF the
old company as is customary in all eases
Of receivership-
1T thus viii be seen that the so per
cent contract. about which SO rnueh was
said in Congress is absolutely and hap
PLY disposed of upon a basis not only
legal but highly creditable and honor
able TO the new company which con-
tents Itself simply with reimbursements
for the new capital of $4,000, ,0O0 fanes
with interest at not exceeding per cent
per annum. thus paying to the receiver
ship fve-eighths of the entire proceeds
of -he sale"
Title Is Valid, Says Cromwell.
Mr. Cromwell stated that he was en-
tirely confident that the title Of the
Panama Canal Company was valid and
its power TO transfer to the United
States complete. and that he had no
doubt this would be found to be the
case. by the Law officers OF the Govern
ment.
Referring to Attorney General Knox,
he said:
1T is a fortunate thing for this coun-
try that these questions are to be passed
upon by one of the most experiences
and distinguished corporation lawyers
Of the United States"