The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-01-25
THE CANAL TREATY WITH
COLOMBIA.

COLOMBIA.
The conclusion of a treaty between the
United States and Colombia relative to the
construction of an isthmian canal marks an
important stage in the prosecution of the
work. The negotiation has been pending
several months, during which time its out
come was doubtful. 1t was rendered neces-
sary by the fact that if the United States
purchased the properties and rights of the
French Panama Canal Company it would
not obtain the right of sovereign control
of the strip of territory through which
the route passes. Last spring the Colon-
bian minister at Washington. in a letter
to Rear Admiral Walker. president of the
Isthmian Canal Commission. stated that
the United States would have actual, but
not sovereign control over the strip of
territory, for which it must pay an annual
rental 20 compensate for certain losses
caused by the sale of the unfinished canal
to the United States He stated that CO.
lombia would lease the land but that trans
fer of its sovereignty was forbidden by the
constitution. To cover this point and the
amount of annual rental, it was necessary
to negotiate a treaty. The negotiation con-
tinued during all of last summer, it being
understood that Colombia was making un-
reasonable demands. both as to control of
the canal and rental. AS the original con-
cessions to the Panama Canal will expire
in 1904, it was thought the Colombian gov
eminent desired that the treaty should
lapse. so that it might itself dig the canal.
or sell new concession. All difficulties
seem to have been removed, however, and
a treaty has been signed covering the fol-
lowing points:
The United States agrees to make a cash
payment OF $lOOOO.O0O in gold to the Colon
bian government and after the expiration
or nine years to pay rental OF $4,000
year.
for the canal and for canal purposes is
practically made perpetual, the provision
on this point being that the first lease shall
be for 100 years and renewable thereafter
in terms of 100 years at the pleasure of the
United States.
The strip is to be about six miles in width,
and over this territory the United States
is given police and sanitary Jurisdiction,
although 1T is explicitly specified that CO.
lombia does not surrender sovereignty over
1t.
The United States is to have the privilege
of free importat ton of vessels and material
to be used in the construction of the canal.
1t is also given the right TO improve,
and protect harbors at both the Atlantic
and Pacific ends of the canal The grant
is made exclusive to the United States and
no taxes or rentals are to be charged in
addition to the gross sums of $40, 900 cash
and $25O.0O0 annually.
At the beginning of the negotiation the
United States offered to pay an annual
s650.Ooo. The amount agreed upon. s25O.OOO,
is a fair compromise, and in consideration
OF a cash payment of $10,0O0.000 the annual
rental is not to begin for nine years. The
question of sovereignty is settled by Colom-
bia agreeing to lease the canal route and
strip of land six miles wide for 100 years.
with the privilege to the United States Of
renewing it perpetually for 1Oo-year periods.
The treaty is negotiated under the act of
Congress of June IS. 1902, which authorized
the President to acquire all the rights and
property of the Panama Canal Company
at a cost not to exceed SAC, OOO, 900. and to
acquire a right of way from Colombia, fail
ing which he was authorized to adopt the
| Nicaragua route. The negotiation of the
| present treaty settles the question of routes.
! The act of Congress appropriated sl0,0O0.Ooo
| for immediate use in closing the transac-
ton, and authorized a further appropriation
| of $135, OO0, 600 in case the Panama route
should be adopted. This appropriation will
| be in addition to the s40.0O0,0O0 authorized
to be paid the Panama Canal Company
| for which a separate appropriation was
made. The act also authorized the Presi-
| dent to appoint an Isthmian Canal Com
| mission of seven members, and to detail
or employ competent engineers to act with
the commission in constructing and COM
pleting the canal. 1t will be seen, therefore,
| that the conclusion of the treaty with CO.
lombia opens the way for the prompt be-
| ginning and steady prosecution of the work.
Some may think that a cash payment Of
100000 and a perpetual annual rental Of
$4,000 is large sum for the United States
TO pay. but it must be remembered that
this covers the absolute ownership and con-
| troll of the canal with the right to fix and
collect tolls. and also the right to port
/ dues on all vessels passing through the
/ canal. The revenues from the canal will
| doubtless be more than sufficient to cover
operating expenses and the annual rental.
| The Suez canal, with its enlargement and
| improvements. cost about 100000. o0o In
1915 the British government purchased
shares amounting to s2O.OOO.OOO. which in
1900 were worth slS2, 100000. The receipts
of the canal in 1899 were slS,26S,OOO and its
| expenses were sl2.OesOOo. leaving a profit of
Sc. 100000 This profit has been exceeded
in some years. The Suez canal pays regu-
| lar dividends and there is reason to believe
that the Panama canal will. Aside from
the question of profit it will be of immense
| value to the United States, commercial and
strategic. and will revolutionize water COM
! munication between the Eastern States and
the Pacific coast and with our far Eastern
possessions.