The age-herald., 1902-03-20
Senator Morgan Submits Ma jOTiI Report of Committee'
REVIEWS $4O,OOO,OOO OFFER
Spectacle of President Dealing With the Corporation Without Consult Ing France Something New
 In History of Nations.

Washington, March 19.-Senator MOT gan, from the committee on isthmian canals, today presented to the Senate ma jority and minority reports of that com mittee on the question of the validity of the title of the new Panama Canal Com pany and it's right %SAsTansfer the Pan anna canal property to the United States for $4O,OOO,O0O The objections of the ma jority to the title held by that company are based largely on the relations of the canal company to the governments Of France and Colombia, but the commit tee also discussed at length many other phases of the question: Among these is the relation of the shareholders who sub- scribed $26O, 900 to the old Panama Com pany, whose interests, the report holds, cannot be lightly regarded. On this point the report says:
 "The spectacle of the United States Congress authorizing the President as the agent of our government to conduct a trade with such a corporation (the new Panama Company without consulting France as to the claim of independence it (the new Panama Canal Company as- serts, will be entirely new in the history of nations and its consequence cannot be lightly dlsregarded.
 Among these is the serious danger of the United States being drawn into dis agreeable relations with a large and in- fuential body of the worthy people of France, whose friendship for us has been cherished during the entire life of our re- public. The report of the isthmian canal commission reveals the fact that men who make this offer are chief among those who defrauded these six or eight hundred thousand Frenchmen of $26O. 100000"
 Speaking further of the obligations of the new company to the old, the majority says:
 Sheltered From Stockholders.
 If Mir Eiffel and his associates get $40,- 100000 from the American people, 1t is well tha+ they are sheltered from the claims of these defrauded and despoiled bond-h holders and stockholders by the all legged despotism of French courts"
 The minority report, which was pre- pared by Senator Kituedge, completely upholds the title of the new Panama Company and states further that the consent of Colombia for transfer of concessions to the United States has been given by the government of that country as fully as it can now be given. The report also says that Colombia has shown and declared its readiness to make by treaty new concessions, which would be necessary before the rights and property on the isthInus could be transferred to the United States.
 "On every other point" the report con- tinues, "the right of the new Panama Canal Company to transfer its property to the United States is perfectly clear. Every link in the chain of it's title and every step in the course by which 1t came into position to sell its property, free and clear, is plain and satisfactory"
 History of the Company.
 The report then reviews the origin and history of the Panama Canal Company and finds that the affairs of the other company were disposed of by a French court in straightforward way when that company became insolvent and that the court had a perfect right not only to ap- Doint a liquidator or receiver, but to con fer upon him. as was done, power to "grant or contribute to any new company all or part of the corporate assets"
 The various objections to the new com- pany's title are then considered and re- piled to. Then follows an explanation of why the new company should desire to sell in which 1t is stated that under it's title the new company took up the work and continued it until a large part of it's capital had been expended. When it be- came necessary to raise funds for the completion of the canal from the public. the announced intention of the United States to build an isthmian canal pre- vented any chance of a profitable return and money could not be raised to com- plete 1t.
 "As an engineering proposition, the re- port continues. "the canal was feasible and was attractive; as commercial proposition, the certainty of the competi- tion of the United States made it impos- sible, except under the auspices of gov ernments, which might for public req sons acquire the canal Thus, since the company could not raise the money to complete the canal, the only practicable course was to sell the property in order to prevent a total loss.'
 Canal Conference Held.
 San Jose, Costa Rica, March 19.-A con- ference concerning the relations between Costa Rica and the United States with regard to the proposed Nicaraguan canal was held here today between government officials and certain prominent citizens The Costa Rican Congress will meet in special session tomorrow.