The Fulton County news. [volume] (McConnellsburg, Pa.) 1899-current, 1904-05-11
LIVE WASHINGTON AFFAIRS.
We Now Own Panama Canal.

The President has received the fol-
lowing report from the Attorney Gen
eral on the Panama Canal transfer
Department of Justice, May a, 1904
The President:
Il have the honor to report that
have made an arrangement with the
new Panama Canal Company and
Morgan & Co. whereby Morgan & Co.
have been designated agents to make
the transfer OF the money due by the
United States to the canal company.
The S4o,ooo,o 600 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
cluded in the purchase. So that the
deposit of 100000 900 with Morgan &
Co. by the United States is accepted
by the canal company as equivalent
to a payment for the purpose of a
delivery OF the property to the United
States.
Owing to the fact that a part Of
this money is due TO the liquidator of
the old company under an arbitration
authorized and subsequently confirmed
by the French courts, all parties en-
titled to the money agreed that Nor
gan & Co. would bind themselves to
make the distribution of the funds
that delivery of the property need not
await actual Davinent
Morgan q Co. will make the dis
tribution as follows
The will place 100000 frances
in the Bank of France to the credit
of Jean Pierre Gautron, the liquidator
of the old Panama Canal Company.
This represents the value of the Pana-
ma Railroad shares, the title TO which
was not to pass " the new company
until the completion of the canal un-
less 2o,ooo,ooo frances were paid there
for to the liquidator OF the old com
pany. Five million frances will be
paid into the Bank OF France to the
credit of the new Panama Canal Com
pany, which, under the award OF the
arbitrators, is due to the new company
to reimburse 1T for the 5000, 600
frances paid in April, 1000, for the
extension OF the concession. OF the
remainder OF the $4o,ooo,ooo 30 per
cent. thereof is to be paid into the
Bank Of France to the credit of the
new company and 90 per cent. to the
credit of the liquidator of the old
company, as provided by the decree
of the French courts confirming the
award OF the arbitrators.
"As this arrangement was made
for the accommodation of the French
parties, all expenses incident thereto
are borne by them and the United
States is protected from all costs
whatever.
Stated concisely, the arrangement
is that the French interest accept our
deposit with Morgan & Co. as equiva
lent to payment for all purposes OF
delivery of the property"
The new Panama Canal Company
in liquidation has given a mandate or
power of attorney to Renaudin, their
representative upon the isthmus, with
complete instructions concerning the
delivery Of the property. This de-
partment has cabled similarly to
Major Brooke, who was designated
by the Honorable Secretary of War
for that purpose to- act for the gov
ernment in accepting delivery.
THE canal company has likewise
placed at the disposition OF the Uni
ted States the personnel OF its organi
zation upon the isthmus for the pur
pose Of temporary service in the pre-
servation OF the works and property
pending the preparations by the canal
commission to undertake active opera
tions.
IL have notified the commission of
the situation, and nothing now remains
to be done except TO take possession
of the property and direct the deposit
OF the consideration with Morgan &
Co, in accordance with the terms OF
the contract"
In connection with these payments
it is said It the Treasury Department
that Morgan & Co. will be designated
as dsbursirg agents OF the govern
ment and following the invariable rule
in such sases they will be required
to deposit $4,000, 900 in bonds as Sc
curity to the government. The pay
ment will be madt as soon as the
bonds have been received, which
probably will be in a day or two.
Consular Appointments.