The Montgomery advertiser., 1903-01-24
TERMS OF CANAL TREATY $1O,OOO, ,OOOin Lump Sum for COlOmbj RENTAL $250 70 A YEAR United s, Sto Control Strip
 of Lana Across IsthmuS. Colombia VIII Retain Sovereignty,
 But Police and Sanitary Juris- diction is Vested in America.
 Other Conditions.

Washington, Jan. 3.-Today's meeting of the cabinet was one of the most i'm portant held in several weeks. Subjects Of great moment were discussed fully, the session continuing for two hours. All the members of the cabinet were present Secretary Hay leaving his home for the first time in several days to attend the meeting. He presented a draft of the Panama canal treaty signed last evening and both the President and his associates in the cabinet expressed satisfaction with the results achieved through the long and difficult negotiations.
 The treaty is Identical with that drawn by this government several months ago and at that time submitted to the Co., lombian government with the single ex- ception of the amount of annuity to be paid Colombia for the right of way of the canal. This government proposed an annuity of $lOo.o0o while Colombia de- manded $6o00Ol The Colombian govern ments demand was based, 1t Is stated, upon the ascertained returns from the Panama railroad company in port dues. etc., which Colombia did not desire to have reduced.
 Question of Rental.
 During the several months of negotia- 1lons Colombia agreed to all points in the treaty proposed by the United States with the exception of the annuity. That has been the point of difference for many weeks and at one time 1t threatened to bleak off negotiations entirely. Secre- tary Hay communicated directly with the Colombian government intimatinR that some agreement must be reached soon, as the United States desired to enter on the construction of the canal if 1t were to be constructed by the Panama route. For several days active efforts have been making to secure an agreament but not until yesterday were they successful The Colombian government through Dr. Her ran, the Charge d'Affaires here, agreed to accept an annuity of $250oOO. This was entirely satisfactory to the President and Secretary Hay and while 1t is a larger amount than was offered at first it is be- lived by administration officials that the Senate undoubtedly will accept the figures named in the treaty particularly as it is clear that lesser amount would deprive Colombia of income which she Is now &C., tually receiving.
 Control of the Strip.
 All points other than this one of none tary compensation remain as they stood in the original draft of the treaty and are completely satisfactory to the United States government. The matters of police and judicial control Is settled by a scheme of joint action although 1t especially is assured that no citizen of the United States will be tried by another 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 necessary for the complete operation of the canal and it is assured that our extra territorial jurisdiction will be unques- tioned as to waters and streams pertain ing to the canal. All port duty on yes sels passing the canal are to go to the United Sttaes by way of offset for the an- nuity payments.
 It was not Secretary Hays intention to transmit the signed treaty to the Senate today but after the President and the cabinet discussed 1t the conclusion was reached that It would be advisable to send it to the Senate at the earliest pos sible moment. The formal letter of trans initial. therefore, was prepared at once and late this afternoon the treaty was sent to the Senate. The President and members of the cabinet are confident that the treaty will be ratified at e req sonably early date without encountering serious opposition