The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1902-10-28

Washington, October 25.- Attorney
General Knox has decided that IL the
United States should ACCEPT the offer
submitted last spring. for the sale OF
the canal for $40, ,000, 900 it would re-
ceive through the parties in interest, q
valid and unincumbered title to the
property. This decision was arrived at
after a thorough and exnaustible inves-
tigation of the situation in Paris. first
by special attorney Charles ". Russell
and later by the attorney general him
self. The attorney general formally
submitted the opinion to President
Roosevelt today 1t makes about three
hundred pages.
The history and nature of French
companies of the kind IN question are
explained at length in the opinion.
They are said to be different from our
corporations. but to be easily under
stood If looked upon rs private part
nershiD which is their essential char
acter
The new Panama company is quite
solvent and there is no law forbidding
it to sell. The powers Of the general
meeting of stockholders of that COM
pany are discussed and it Is held to
have derived from the partnership
agreement, ample power to sell as it is
proposing to do.
| AS to the proposition that the Uni
| ted States would be subject tc the debts
| and claims of the stockholders and
| bond-holders and other creditors OF
| both of the companies, the opinion says:
| LAS general proposition it Is not
| perceived how there could be any law
| or equity subjecting purchaser of an
| article sold as assets OF a falling part
| nershiD (such as the old company to
| the debts of the partnersh p. If such
| were the law. there would be no pur-
| chasers of such assets. and the credi-
tors would receive no payment Of their
| debts out of the proceeds nor stock
| holders any dividend OF a residue"
| Nevertheless the opinion Exhaustive
| ly considers all possible mortgages and
| other liens affecting the property itself.
| real or personal. under French or Co
| lombian law. 1t says there have been
mortgages and pledges of personal
| property, and shows in detail what be-
came Of them. AS to the prouosition
that the United States cannot take title
to the shares Of the stock Of the Pan
anna company, a New York corporation
| which the Panama company proposes
| to sell with the canal property, the
| opinion holds that the government can
take and hold any kind of property IL
| may have need or, IN the same manner
as an individual can that it would hold
| it's shares as an individual would hold
| them.
AS to the objection tnat congress has
authorized a purchase from the new
company only and not from the liqui-
dator, the opinion says:
Certainly in view Of the condition
of the title as hereinbefore explained
tue purchase will not pe from the new
| company and the consent OF the hqui-
| dator viii be at most a waiver of rights
as to the property transferred to the
new company. but il this were other
wise, it would be unreasonable to trea,
the act of congress as f0rhidding a pur.
chase from the new company. In which
: it would be necessary Tor the old com
| pany or iquidator To join az vendor
This would be to defeat. not to ascertain
the will Of congress. What II wants 4.
a good title from the owner Of certain
specified property the owner Icing sup
posed to be. and being admittedly fl
part, the new company: and IL Is en-
! tirely justifiable 10 buy from the owner
although the principal ownership shoul,
= be found to be in the new company
3 The opinion closes as follows:
' For the reasons / have gwen / an
) Of opinion that the United States woul
: receive a good, valid and unencumbere.
/ title