Evening star. [volume] (Washington, D.C.) 1854-1972, 1903-01-23
CANAL TREATY SIGNED
Secretary Hay Believes That
It Will Be Ratified.
PAYMENT TO COLOMBIA
BASED ON THE ACTUAL ANNUAL
REVENUES.
PAYMENT TO COLOMBIA
These Will Go to the United States
When This Government Assumes
Control Of the Isthmus.

The treaty between the United States and
Colombia for the construction of the Pana-
ma canal by the United States was signed
at Secretary Hays house late yesterday
afternoon, Mr.. Hay acting for the United
States and DR.. Herran, the charge daf-
faires of Colombia, who had been specially
given full powers to negotiate the treaty.
signing IN behalf of Colombia.
Annual Payment to Colombia.
The treaty just concluded is the same
treaty that was drawn up by this govern
ment several months ago with the single
exception Of the item Of annuity to be paid
to Colombia for the use of the right of way
for the canal. The amount of the annuity
Is a compromise between the 5000 Of
fered by Secretary Hay and the $65O,OOO
demanded by Colombia. Colombias price
was fixed upon what were asserted to be
the present returns from the Panama Rail-
road Company, port dues, etc, Whlch she
had no desire to see diminished. The
amount fixed in the treaty by way of COM
promise is not stated by the officials, and
persons who have had to do with the per-
fection Of the treaty, because of the sense
of courtesy due the United States Senate
1t is admitted to have been arrived at how
ever from a calculation of the exact re-
ceipts at present from traffic across the
isthmus. and therefore is regarded as only
fair to Colombia. At the same time, though
the amount is larger than was at first Of
fered. 1t is said that the Senate will un-
doubtedly accept the figure named when it
is made clear that to offer less would be to
deprive Colombia of an income she is now
actually receiving.
Besides, 1t Is pointed out that to have in
sisted upon driving too hard a bargain with
the Colombian minister here and the eXecu-
tive branch of the government in Bogota
hn We cd OF nttSlxr for ic
more than probable that the organization
of opposing forces led by Concha, late min
lister to Washington, would surely be able
to defeat ratification of the treaty in the
Colombian congress, a formality which is
as necessary to give effect to the treaty
Its ratification by the United States Senate.
Guessing at the Figures.
Under the arrangement between the Co.
lombian government and the Panama Canal
Company the former receives annually
$4,000 from the receipts of the railroad
at Panama, together with port charges, &c,
which will be taken over by the United
States. The representative of Colombia at
first cOntended for an immediate payment
OF sloUOOO and annual payments of $780,
$50 in perpetuity. Under the treaty as
signed the annual payment has been cut
down to less than 100000. Exactly what
the figure Is is not known to the best in
formed senators, but they are satisfied that
kept the amount below $500, ,O0O. The cash
payment has also been cut down far be-
low that contended for by Colombia. though
several millions of dollars will at once be
paid under the terms of the treaty to that
government.
Control of the Isthmus.
All other points than this one of money
compensation remain as they stood in the
original draft of the treaty, and are COM
pletely satisfactory to the United States
government. The United States will have
control of the canal practically in perpe-
tuity, required by the Spooner act; this
result having been attained by the adoption
of plan for a lease for one hundred years,
renewable at the pleasure of the United
States, and Colombia having nothing to say
about the extension. The matters of police
and judicial control are settled by a scheme
of joint action, although it is especially as
sured that no citizen of the United States
will be tried by any other than his own
courts Control of the waters of the ports
Of Colon and Panama is vested in the
United States just as far as may be neces-
sary for the complete operation of the canal
and 1t is assured that our eXtraterritorial
jurisdiction will be unquestioned as to wat
ers and streams pertaining to the canal.
All port dues on vessels passing through
the canal are to go to the United States.
by way of offset for the annuity payments.
Ratification is Expected
what has been done by Secretary Hay, hav-
ing advised with him at every step, with
the special purpose of arranging a treaty
that would be likely to command the neces-
sary two-thrds vote for ratification in the
Senate, so the Secretary's admitted belief
that the document signed yesterday will be
ratified here is significant.
Assuming that the Secretary's belief Is
well founded the next point of interest
% m ont Of fha r1oyx
by the Colombian congress. Mr.. Cromwell
the counsel for the Panama canal has been
making a special inquiry into that phase of
the matter, and he is assured that the
treaty Will be accepted and ratified. He
says that at this moment elections are 60
ing on in Colombia for members of the con-
gress. This is a special session, which will
meet probably in March. The call was is
sued for two purposes, the first to secure
legislation for complete rearrangement of
Colombias financial system and second to
act upon the canal treaty. The elections
will continue through February and for
about six weeks in all
There Is some doubt as to whether the
financial scheme can be arranged and the
treaty reached by congress before the first
or July, which is the date set by the Co
lomban constitution for the regular meet
ing OF congress, but according to Mr..
Cromwell that doubt would not affect the
future OF the treaty. which IL not disposed
OF at the special session would certainly
come up at the regular session. With a
view to safeguarding the treaty from fail
ure on account of dilatory action either in
Washington in Bogota the negotiators
have made the period of time allowed for
the exchange of ratifcatons long enough
to insure it against anything but deliber-
ateiy obstruct tactics.
Taken to Cabinet Meeting.
Secretary Hay took rough draught of
the treaty with him to the cabinet meeting
today. Contrary to the expectation enter
tained last night he was not able to SUBJ
NIT the document to the Senate today
The reason for the delay was the mechan-
1cal fmpossibility of making the necessary
print ey's copy" and preparing the neces-
sary letter of transmittal which will accom-
pany the treaty to the Senate. 1t may be
stated. by the way, that this letter of the
Presidents will be purely formal, and that
IL Will contain no argument at all for the
treaty, leaving the document to speak for
itself.
Mr.. Cromwor was the subject Of many
congratulations today over this successful
term. naiicn Of his work running through
MANI years He is confident that he has
overcome the worst obstacl and that the
hnal ratification Of the treaty il assured