Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1904-05-05

DR.. Pierce. superintendent CT SANTA
ton work, were among those present
! From today the canal works will he
under the direction of Major Mark
Brooke, of the engineer corps Of the
U. S. army. who represented the canal
commission at the ceremony of the
| transfer.
| Immediately after the transfer the
| legation and over the canal offices in
| the Cathedral Plaza.
Washington. May 4.-The President
has received the following report from
cana! transfer:-
Department Of Justice, May 4, 1904
| The President:
II have the honor to report that
| have made an arrangement with the
| new Panama Canal Co. and Morgan
& Co., have been designated agents to
| make the transfer Of the money due by
the United States to the canal COM
pany.
THE $40, G0O,01O is to be deposited with
Morgan & CO., at once upon the deliv-
cry by the canal company to the United
States of all the property included in
| the purchase. so that the deposit of
s40,000.C(0 with Morgan & Co. by the
| United States is accepted by the canal
company as equivalent to a payment
| for the purposes of 4 delivery Of the
| property to the United States.
Owing to the fact that Il part of
| this money is due to the liuuidatOr of
| the old company under an arbitration
| authorized and subsequently confirmed
by the French courts, all parties en-
titled to the money agreed that ii Nor
| gan & co. would bind themselves to
make the distribution of the funds.
| that delivery of the property need not
await actual payment.
Morgan & Co. will make the dis
trihution is follows: They viii place
~. oct. 900 francs il the Bark of France
to the credit of Jean Pierre Gautron,
the liuuidator of the old Panama canal
Co This represents the value of the
Panama railroad shares, the title to
which was not to pass to the new
company until tho compile ton of the
canal unless 2o.0Co 0G0 francs were paid
| therefor to the liruidator of the old
t6ompany. Five Elillion francs Will be
| paid into the Bank Of France to the
credit of the new Panama Canal Co,
| which under the award Of the arbitra-
tors is due to the new company to re-
imLuI Sc it fer the 10000 coo francs paid
| in April. 1900. for the extension of the
| { onceSsion. nf the remainder of tho
| $40 900. 900, 40 per cent. thereof is to
be paid iEto the E:.nk OF France to the
credit of the new company and GO FER
! cent. to the credit of the liquidalor of
the old company, rs provided by the
decree of French courts confr,ning the
award OF the albitrators. AS this ar
arrangement was made for the accom-
mod,tiCn of the French parties, all ex-
iensrs incident thereto are borne by
hern. ana the United States is pro-
tcctei from all costs whatever.
| "Stlted conciscly the arrangement is
that the Frcnch interests accept our
! deposit. with Morgan 4. Co, as equiva-
lent to payment Cor all purposes Of de-
livery Of the property.
| THE new Panama Canal COMPANY.
in liquidation has given a mandate or
| power of attorney to Renaudin. their
| representative uDon the isthmus with
| complete instructions concerning the
| livery of the property. This department
has cablcd similarly to Major Brooke,
who was designated by the hOnora BILE
secretary of war for that purpose, to
| act for the government in accepting
delivery
| The canal company has likewise
placed at the disposition Of the United
| states. the personnel of it's organza-
| tiOn upon the isthmus for the purpose
| Of temporary service in the preserva-
ton OF the works and property pend
ing by the canal commission to under
take active operations.
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
| tine consideration with Morgan & Co,
| in accordance with the terms Of the
contract.
yours respectfully,
"P. c. KNOX. Attorney General"
In connection with these payments it
| is said at the treasury department that
Morgan & Co. will be designated as dis
tributing agents and following the in
variable rule in such cases they will be
required to denosit 40.0O0,OC0 in bonds
80 security to the government. The
payment will be made rs soon as the
bonds have been received which prob
| ably will be in a day or two.
Word reached the commission during
the day of the formal transfer OF the
| canal route. and of the Panama canal
| property. as told in the Associated
Press despatch from that city.
Next Tuesday. General George w.
| Davis, the governor of the canal zone,
will leave New York for Panama, ac-