The Montgomery advertiser., 1903-03-14
CLOSES HIS ARGUMENT Senator MOrgan'S Final Plea. MIR. .SPOONER WILL ANSWER Senator German Calls a Demo-
 cratic Caucus. Monday the Minority Members of the Upper House of Congress
 Will Assemble and Map
 Out Program.

Washington, March 1s.-The minutes after converting today the Senate went into executive session and as soon as the doors were closed, Senator Morgan began discussion of Attorney General Knox's opinion regarding the validity of the Panama canal property as given by the new Panama Canal Company.
 He attacked the opinion as defectivel in part. and especially in its failure to deal with the Jurisdiction of the French courts which have passed on tht Panama Company's title. Senator Morgan read at length from the speech he had pre- pared for publication. He charged that the French courts had overstepped their legitimate authority in assuming to dis pose of property situated in Columbia without reference to the rights retained by Columbia and the limitations and restrictions imposed by the Colombian Government on its agent. the Information al Interoceanic Canal Association.
 He contended that as Colombia never really had parted with the canal zone and as that country was guaranteed an annual income of s250oOo for the pro- posed canal that country was the ulti- mate sole beneficiary of the enterprise and the concessionary company the tenn porary recipient of the tolls of the canal for It's compensation or its indemnity"
 The Decree Invalid.
 He claimed therefore that the decree of the French court authorizing the sale to the United States was void besause of n n fnUa ntna nf ha y1vhfa nf CNlnuaAto He also contended that French legisla- ton attempting to validate the acts of the French courts was clearly without validi- ty.
 France cannot, The said, thus violate the rights of Colombia and the share holders. bondholders and general creditors of the Panama Canal Company without responsibility and cannot escape that responsibility by asserting that as a gov ernment she had nothing to do with the company"
 Then he asserted that if Colombia has become or shall become a party con- senting to all these proceedings or if she Is not such a party. she Is bound for every bond Issued by the old Panama Canal Company for all the other debts of that company contracted for, material furnished or work done for the canal
 up the QucHtlOH OL lne TcSpOHSl- bility of the United States in the matter of these debts Senator Morgan said:
 "A matter that Is of the deepest con- cern to the honor of the United States is that every stockholder of the old com pany Is bound to the creditors of that company by mutual, express agreement for sum equal to the face value of shares held by him for the payment of those debts"
 Extension of Concession.
 Discussing the efforts of the Panama Canal Company to secure an extension of its concession. Senator Morgan said this was accomplished in 1900 for the purpose of unloading the enterprise on the United States. This company" he said bought from the President of Colombia for b,00O,0O0 francs in French coin to be paid in Paris. prolongation of the exten- sion for six years from the Fist of Octo- Der, 1904 This proposed agreement was laid before the Congress of Colombia and was rejected. The construction and laws of Colombia required that such contracts should be confirmed by Congress, but the President of Colombia violated both the laws and the constitution and received the $1. 900. 900 in gold from the new Panama Canal Company. The House of Repre- sentatives thereupon voted that the of- flee of president of Colombia was vacant and dissolved"
 When Senator Morgan concluded. sena- tor Spooner took the floor, but did not proceed. He said. however. that he de- sired to go on tomorrow.
 It was then suggested that as the gen. eral agreement for vote on next Tues day included the printing of Senator Spooner's speech the official stenographer should be sworn and the agreement was extended so as to provide for the report ing of all the speeches to be made in the future on the treaty with the view of having them printed after the vote is taken Tuesday.
 Some of the stenographers were then called in and sworn to secrecy and all the remaining employees of the official reporters room will be required to submit to the oath tomorrow.
 Early in the day Senator German an- nounced his intention to call Democratic caucus for tomorrow. but when the Sem ate adjourned it was stated the caucus had been postponed until Monday.
 xxrYYT AnUOTTpN NEXT WEEK