The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1904-04-02
SENATOR MORGAN
SMELLS A WRONG
He Finds a Secret Obligation
in Kittredge'S Panama
Canal Bill.

WASHINGTON, D. c., April l.
Senator Kittredge today reported from
the senate committee on interoceanic
canals the bills which he introduced
from the same committee yesterday.
An agreement to report the bill IA
Vorably had been reported by the COM
mlttee at the conclusion of it's meet
ing yesterday and the report today
was merely formality
Senator Morgan, who recently in
troduced bill to have the canal zone
declared a military reservation to be
governed by the laws Of the United
States for the government of such
reservations, presented a minority re-
port advocating the passage of the
bill. He takes up a clause Of the
Kittredge bill which provides for the
payment OF $4,000, 600 to Panama, de-
pendent on the acquisition Of the prop
erty of the Panama Canal company,
and finds in this provision a question
as to the right of the United States to
pay any money to Panama until the
canal property is in the hands of the
United States. He says the bill at
tempts to repeal the closing para
graph of section % of the Hay
Vanilla treaty and to enact the
meet some secret or hidden obligation
to the Panama canal company.
Senator Morgan submits that the
Panama Canal company is not a party
to the Hay-Vari1la treaty and that by
acquiring the title to the zone the
over the property. The report is de-
voted in large part to a criticism of
the Kittredge bill.
Ready for the Big Payment.
A considerable part of today's ses-
sion of the cabinet was devoted to a
discussion of the Panama canal Sat
lsfaction was expressed that the French
court had made it possible for the
United States to close negotiations with
the Panama Canal company for the
transfer of its property and conces-
slons to this country A meeting Of the
stockholders OF the canal company has
been called for April %. At that time
the final action will be taken by the
company in the transfer Of the canal
property to the United States. When
the legal technicalities have been COM
piled with on the part of the company
to the satisfaction Of this government
the United States will be in a posi-
ton to pay over to the company the
$40,000,000 for the canal property. At
the same time $4,000, 900 will be paid
to the Republic of Panama.
Of the necessary amount $4,000 900
are on deposit in New York subject
to the order of Secretary Shaw. The
remaining $20,000,000 will be paid out
of the current funds Of the treasury.
While the receipts of the government
each month are now exceeding the ex-
penditures, it is possible that Secre-
tary Shaw may issue an additional call
upon the na tional bank repositories in
order that the treasury may meet the
payment of the $4,000, 600 without
drawing too heavily upon the funds
now in the treasury. 1t is desirable,
in the view of the treasury officials
that working balance Of about $50,-
100000 be kept in the treasury. The
amount now on hand is nearly $50 ,000.-
600, and by the end Of this month will
approximate $60,O00,O0O. To retain
$50,000,000 in the treasury therefore, it
may be deemed necessary to call on
the government repositories for some
thing like $10,000,000.