The Mitchell capital. (Mitchell, Dakota [S.D.]) 1879-1918, 1904-05-06
UNCLE SAM PAYS
FOR his CANAL
Panama Company Gets $40.
600, 900 in Pari. and
Turns Over Deed.
1T WILL TAKE MUCH COLE
Expected That a Considerable Drain o.
the yellow Metal Will Follow the
Remittance Of Amounts to
Paris.

Washington. May 2.-Uncle Sam has
paid h $40. o00.o 0 to the new Panama
Canal company and the title to the
canal property rests with h United
States. The deeds are in the possess
Day and Russell, who will leave Paris
for Washington in a few days. The
money was paid to h canal company
on the authority of Attorney General
Knox by a French syndicate and a
draft for the $40. 600, 900. drawn on he
treasury, Is now on its way to New
York.
This secret and Unexpectedly speedy
action was taken by President Roose-
velt's order to prevent further delay in
h transfer through possible court
proceedings by the few dissatisfied
stockholders Of the Panama company.
The payment in exchange for he
deeds completed the deal in Paris and
1t is thought that the transfer Of ali
the canal company's property on the
isthmus took place today. Major Mar
stationed at Colon. was instructed by
cable to receive the property in he
name OF the United States. The rep
resentattves OF h canal company on
the isthmus were ordered to turn 1t
over to him.
The $40. 900, 900 will be paid to Panama
within a few days, probably not later
than Monday. and the deal will then
be completed.
May Drain America of Gold.
The presidents haste and the new ar
rangement, by which the New York
banks are shut out OF active participa-
ton in the transaction. are likely to
result in a heavier drain of gold than
has been anticipated. The draft Of the
Paris syndicate will specify to whom
the money Is to be paid.
Some New York bank may be named
as agent or the syndicate may send
over Of its members as a represent
attve to direct the exchange. When the
draft reaches Secretary Shaw 1t will
not nave to go through the ordinary
routine or be inquired into and passed
on by the auditor. The attorney gem
eral will advise that it De paid and
thai will settle it.
The s27,500. 900 which has been accum-
ulated In the New York banks may
either be transferred to the credit Of
the syndicatc's agent, in which event
he will be given a warrant On the New
York subtreasury for the remaining
S12. SOC. 900, or turned into the subtreas-
ury and the agent given a warrant for
the whole amount. The agent can then
either ship the whole sun in gold to
1-uylS-OI dIIdl6S l1S lsdl1SlGI ny SA-
change.
The Financial Arrangements.
Paris, May 2.-Final details of the
financial operations involved in the Pa
Eema payment are almost concluded,
the expectation being that an agree
ment will be reached today OF toner
row ]. Pierpont Morgan Is personally
directing the transaction and indica-
lions are that he and a number Of
American financiers Will consummate
the transfer of funds. 1t Is Nor
gan's Intention to admit some leading
Paris banks to a share In the trans
action, but the carrying out Of the
plan Will be essentially in American
hands. The Associated Press Is en-
abled to indicate from various sources
the main features Of the payment. as
follows:
The transfer of $4,000 900 from the
United States to Europe will be made
so as not to d%isarrange the money
market Of either country. For this
purpose the total will be divided into
a number Of smaller amounts. leaving
America at intervals and thus not caus-
ing a strain at any one time. More
over 1t is pointed out that as the bulk
Of the payment comes from the treas
ury without its drawing on the banks,
there will be no undue strain on the
Nanks