The citizen-Republican. (Scotland, Bon Homme County, S.D.) 1???-19??, 1904-05-05
UNCLE SAM PAYS
FOR HIS CANAL
Panama Company Gets $40.
900, 900 in Paris and
Turns Over Deed.
1T WILL TAKE MUCH COLE
expected That a Considerable Drain OF
the Yellow Metal Will Follow the
Remittance of Amounts to
Paris. .

washington, May 2.-Uncle Sam has
paid the $40, DOC, 900 to the new Panama
Canal company and the title to the
canal property rests with the United
states. The deeds are in the possess
sion OF Assistant Attorneys General
Day and Russell, who will leave Paris
Tor Washington IN a few days. The
money was paid to the canal company
on the authority of Attorney General
Knox by a French syndicate n a.
draft for the $40, 000, 900, drawn OF the
treasury, is now on its way to New
York.
This secret and unexpectedly speedy
action was taken by President Roose-
Velts order to prevent further delay in
the transfer through possible court
proceedings by the few dissatisfied
stockholders OF the Panama company.
The payment in exchange for the
deeds completed the deal in Paris and
1t is thought hat the transfer Of all
the canal company's property on the
isthmus took place today. Major Mar
brooke Of the engineers corps, who is
stationed at Colon. was Instructed by
cable to receive the property in the
name Of the United States. The rep
resentatlves Of the canal company on
the isthmus were ordered to turn it
over to him.
The $4,000. 900 will be paid to Panama
within a few days, probably not later
than Monday. n 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-
tion 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 OF the syndicate may send
over one Of Its members as q represent
otive to direct the exchange. When the
draft reaches Secretary Shaw 1t Will
not have to go through the ordinary
routine or be inquired into and passed
on by the auditor. The attorney gen
eral will advise that it be paid and
that will settle 1t. .
The S27, 500, 900 which has been accum-
ulated in the New York banks may
either be transferred to the credit Of
the s~yndicatc's agent, in which event
he will be given q warrant on the New
York subtreasury for the remaining
$12. 800, 600, or armed into the subtreas-
ury and the agent given a warrant for
the whole amount. The agent can then
eiLlieI snip tuS "llS!t SUI III BOiu "
Paris or arrange the transfer by ex-
change.
Tho Financial Arrangements.
Paris, May 2.-Final details of the
financial operations involved in the Pa
mama payment are almost concluded,
the expectation being that an agree
ment Will be reached today or tomor-
row. J. Pierpont Morgan is personally
directing the transaction and tndica-
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 s4o,o 900. 900 from the
United States to Europe will be made
so as not to disarrange 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 q strain at n one time. More
over It is pointed out that as the bulk
of the payment comes from the treas
ury without it's drawing on the banks.
there Will be nc undue strain on Che
Nnr1Gs NJ" .