The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1904-05-05
CANAL
is TAKEN OVER
Work Now Under Direction Of
an Army Engineer.
REPORT TO THE PRESIDENT
MONEY TO BE DEPOSITED WITH
J. P. MORGAN.

> = , -
Panama. May 4.-The United =
= States canal commission today =
took formal possession of the ca .
= nal route and of the property Of .
= the Panama Canal company From =
2 today the canal work viii be >
= under the direction Of Major =
Mark Brooke. or the engineer ?
= corps of the United States army, =
q who represented the canal COM y
. mission at the ceremony of the
. transfer.
Immediately after the transfer y
= the United States nag was hoisted =
. over the legation and over the =
canal Offices in the cathedral
%+&%++%+*4+++++%%+%
Washington. May 4-The president
has received the following report from
the attorney general in the Panama
Canal transfer,
Department OF Justice, May g. 1904
The President i have the honor TO
report that / kaVe made am arrange
ment with The New Panama Canal
company and Morgan g. Co., whereby
Morgan & Co. have been designated
agents to make the transfer of the
money due by the United States TO the
canal company.
Equivalent to Payment.
"The S4o.00O.00O is to be deposited
with Morgan & co. at once, upon the
delivery by the canal company to the
United States Of all the property in-
GUIDED I'm the purchase. Therefore, the
deposit of 100000 with Morgan &
Co. by the United States is accepted
by the canal company 8s equivalent
80 q payment for the purpose of a de-
livery of the property 20 the United
6taJes.
owing to the fact that a part of
this money is due to the iqUidators of
The old company. under an arbitration
authorized and subsequently, confirmed
bv the French courts, all parties en-
titled TO the money agreed that if Nor
gan IL Co would bind themselves to
make the distribution OF tho fund, that
delivery of the property need not aWa-t
actual payment.
Plan of Distribution.
Morgan & Co. VIII make the disJri-
button as follows.
They viii place 10000 600 francs I'm
the Bank of France 10 the credit 90
Jean Pierre GaUUon. the lquidator of
The old Panama Canal company. This
represents the value of the Panama
Railroad shares the title to which Yves
not to pass TO the new company until
the completion of the canal unless 90
0yu,G-o francs were paid Jlerefor 90
tie lquidatQr of Che old company
Five million francs viii be paid into
the Bauk of France TO the credit off
the New Panama Canal company
which, under the award of the aTbj-
traitors, IS due to the new company JC
reimburse iL for the 1000 900 francs
paid in April. 1890, for the railroad COM
Cessi0n- OF the remainder Of the Sfn.-
Coo 600, 40 ger cent thereof IS To DE
paid into the Bank of France to tn
credit OF the new company. ana go per
cent 90 the credit of the ItauidauoT OF
Tie old company, as PROVIDED by The
decree of the French courts confirming
the award of the arbitratocs.
French Pay the Costs.
'As this arrangement was made fcI
the accommodation of the French par
ties, an expenses incident thereto 1rs
borne by them and the United States
s. protected from AN costs
"Ir is stated cOucisely this arrange
WeDt is that the French interests ac-
Cept our deposit with Morgan q Co
as equivalent 90 payment for all pur-
poses OF delivery Of the property.
"The New Panama Canal company
IN liquidation has given a mandate oil
power of attorney 90 Reudau5in, THEN
representative ON the istbmus witt
complete instructions concerning The
delivery of their property This de-
uartmellt has cabIed similarly TO Ma
Cor Brooke. who was designated by che
honorable secretary of war for thai
purpose. To act for the government ir
accepting delivery
1.-THE canal company has likewise
placed az the disposal of the United
States The personnel Of the organizes.
ti0H upon the isthmus for the purpose
or temporary service iu the UrcseTVa.
ton of the works and property pend
ing The preparations by The canal COM
mission TO undertake active opera
tinns.
Commission Notified.
"I have notified Che commission o
The. situation ANA nothing now remain.
rr fa done except f8 take possession
Of the property and direct the deposit
OF the consideration with Morgan q co
In accordance with the terms OF IA.
contract Yours, respectfully.
'P. G.. KNOX, Attorney General"
in connection with these payment.
So is said al the treasury department
--1.sal g. Cu. viii bee designated as
CisbUIsiue agents ot the government
and, following the rule iu such cases
they viii be required 10 deposit $40.
100000 Do bonds as security TO the gov
eminent. The payment viii De mad.
as soon as the bonds have been re-
cejYed, which probably VIII be in a da,
or tive