The Bamberg herald. [volume] (Bamberg, S.C.) 1891-1972, 1904-03-10
Flaw is Discovered in Canal
Deal With French Holders.
MORGAN GAVE WARNING
consunnmation Of Trade Will be DE-
Iayed Until Matter is straightened
out-Agent Cromwell Goes
to Paris.

Washington correspondent wires as
follows: Serious obstacles have pre-
sented themselves in the way Of com
pletion of the requirement, by this
government, Of the title to the proper
ty of the Panama Canal Company,
and, in consequence, it is announced
that there will be no transfer before
the latter part of this month.
The exact nature Of the trouble has
not been made clear by those respon-
sible for the negotiations, but Is seems
that when Attorney General Knox be-
gan looking into the claim Of William
Nelson Cromwell, who has represent
ed the company throughout, that he
was in a position to give title, he dis
covered that Mr.. Cromwells opinion
upon the property IS seriously defes-
tive, and, unless 1t is strengthened,
or unless some other arrangement n
made, it will not be possible for the
United States to secure the properly
for which an appropriation Of $40,
100000 has been made.
Senator Morgan Gave Warning.
In it's present shape, Attorney Cen
eral Knox is said to be satisfied that
the Cromwell alleged title would en-
tail upon this government an endless
series of claims from the French
stockholders in the old Panama com
pany, who have not parted with their
holdings to the new company repre-
sented by Mr.. Cromwell, and who.
further, has not given him or his com
pany an option upon their stocks.
During the progress Of the long de-t
bate upon the canal treaty it was fre-
quently charged by Senator Morgan
that Mr.. Cromwell could not give III
tie. The Alabama senator's charges
were not needed. Mr.. Cromwell had
given verbal assurances that 1t was
all right, and his word was taken By
the responsible officials Of the govern
ment. Now, the attorney general has
made the discovery that the Cromwell
claims are seriously defective.
Payment is Deferred.
In order to give Mr. Cromwell the
opportunity to go to Paris and
straighten things out, if be can, fur
ther negotiations have been deferred
to March 25th. Senator Morgan ;s
still positive that the desired quit
claim on the part of these >stockheld-
ers cannot be obtained, and Represen-
tativa Hepburn, chairman of the house
committee, is Of the opinion the $ie,-
100000 which are to go to Panama.
were about to be paid over to J. r. !.
Morgan & Co., fiscal agents for the
republic of Panama. Then the pzo-
ceedings were halted by the attorney
general.
This new situation, developing, as
it did, just as Panama was about TO
be paid it's s10,U00,000, and as this
government had announced its readi-
ness to pay s40,0O0.ooo to the French
company, has caused surprise and dis
appointment to the United states ofi-
cials.
This government took MIR. Crom-
well at his word and made preparaS
tions to pay both the canal company
and the new republic. It called In ~
per cent of the government money IN
national bank repositories, arranged
its financial affairs so that this great
sum could be paid without any dis
turbance to the money market and
announced itself ready to complete
the transaction.
While no one would say just exact
" what the hitch was, it was under
stood that certain suits against the
new Panama Canal Company have not
yet been cleared to the satisfaction of,
this government and the title cannot
yet be given.
Mr.. Cromwell denies that the delay
is serious, but admits he must go to
Paris to clear up the existing doubts