The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-01-21
SENT TO CONGRESS.
INCLUDED FROM FIRST PACED

CONCLUDED FROM FIRST PAGE)
view of its Importance in connection with
the present offer, the results of the invesu
cations made will De again presented. The
cid company, in addition TO its canal prop
erty, acquired under a concession from the
Colombian government owned nearly all or
the shares of the Panama Railroad Com
pany. By purchasing these it obtained
control of the concessions under which the
road had been built The latter concession
will continue in force until 1856: the canal
concession is TO run for ninety-nine years
from the day on which the canal shall be
opened to public service, and the date for
latest extension, is Oct 81, 1910. When
these periods expire the different properties
TO belong absolutely to Colombia with
out compensation, and the government is
under no obligation to extend either con-
eession.
The canal company is absolutely pro-
hibited 10 cede or mortgage its rights I'M
der any consideration whatever to any
tiOn or foreign government under penalty
of forfeiture. The contract with the rail-
road company contains a like prohibition
and declares further that the pain Of for
feiture will be incurred by the mere act of
attempting 10 cede or transfer its privilege
to a foreign government, and such an act
is declared absolutely null and of no value
or effect.
PROHIBITIONS WAIVED.
But for the purpose of permitting the
new Panama canal company to enter upon
the negotiations which have resulted in the
present offer Colombia has waived these
prohibitions and has authorized the com
pany TO treat directly with the United
States with a view to the United States
purchase and occupation of the territory of
the former for canal purposes if our gov
eminent should select the Panama route
for an isthmian canal. After the old COM
pany failed liquidator was appointed by
the French court TO take charge of its
property and affairs. When the new COM
contribute TO it the rights, provisions,
plans, docks, plant and unfinished work in
his hands and under his control, and in
consideration of this grant he was to re-
eeiVe 90 per cent. Of the net profits of the
enterprise after deducting all expenses,
charges and stipulated dividends to be dis
trlbuted by him among the parties In inter-
est This interest of the old company is
stlll under the protection of the liquidator,
and he must be party to any arrangement
mat may be entered into for a sale and
conveyance of the property, and. as he de-
rives his authority from the tribunal that
appointed him. his action requires the ap-
prevail and confirmation of the court. The
papers before the commission show that
the liGuidator had agreed TO the PROPOSE
ton and that he is acting under judicial
authority.
A deed to the property executed by the
quires the approval of the government of
Colombia. because of the prohibition al
reedy referred TO in the concessions and
for the further reason that the republic
owns $4,000 shares Of 100 francs each, of the
stock of the company full paid, of which it
cannot be deprived without its consent
such transfer of title thus approved
would give 10 the United States the same
right, title and interest in the premises that
the new Panama Canal Company now has,
hut that would not be sufficient The ex-
listing concessions thus purchased would be
hpC3nSp
the United States would remove the OBJ
stacle in the way of negotiations between
the two governments for the occupation of
Colombian territory by the United States
for canal purposes but these concessions
are unsatisfactory and insufficient and new
arrangement must be made if an isthmian
canal Is TO be constructed by our govern
ment across the isthmus of Panama.
WHAT is NEEDED.
1.-THE grant must be not for a term of
years, but in perpetutity and a strip of
territory from ocean to ocean of sufficient
width must be placed under the control of
the United States. In this strip the United
States must have the right to enforce police
regulations, preserve order, protect prop
crty rights and exercise such other powers
as are appropriate and necessary. The bust
ness relations between the railroad and
canal companies and the Colombian govern
nent must also be settled. and the consid-
the privileges and rights to be exercised in
the future must be agreed upon free from
all embarrassment with reference to past
transactions.
THE commission has no power to enter
upon negotiations for the arrangement of
these matters; they belong to the treaty
making power, but the acceptance OF the
terms offered by the new Panama Canal
Company should be conditioned upon their
satisfactory adjustment.
The advantages of the two canal routes
how haa
ings of the former report There has been
no change in the views of the commission
with reference to any of these conclusions
then reached; but the new proposition sub
mitted by the new Panama Canal Com
pany makes a reduction of nearly $4,000, 900
in the cost of the canal across the Isthmus
of Panama, according to the estimates con-
tanned in the former report
There is, however, one important matter
which cannot enter into its determination,
but which may in the end control the
action of the United States. Reference is
made to the disposition of the govern
ment whose territory is necessary for the
construction and operation of an isthmian
canal. 1t must be assumed by the COM
mission that Colombia will exercise the
same fairness and liberality if the Panama
route is determined upon, that have been
expected of Nicaragua and Costa Rica,
should the Nicaragua route be preferred.
The report concludes as follows: After
considering the changed conditions that
now exist and ali the facts and circum-
must be based, the commission is of opinion
that the most practicable and feasible
route for an isthInian canal, to be under
the control, management and ownership
of the United States is that known as the
Panama route"
The report is signed by the entire COM
mission, as follows: j. @. Walker, rear adj
miral, United States navy, president of the
commission Samuel Pasco, Alfred Noble,
George S. Morrison, Peter c. Hams, colonel
United States corps of engineers; William
~ IL N
United States corps of engineers; Lewis NJ.
Haupt, Emory r. Johnson.
The State Department will now proceed
to arrange a protocol with Minister Silva
engaging Colombia to approve the trans
fer of the franchise of the Panama Com
pany and TO make any desirable extensions
of time both in the allowance for the COM
pletion of the canal and in the life of the
lease.