Fergus County argus. [volume] (Lewistown, Mont.) 1886-1946, 1904-05-11
CANAL PAYMENT ARRANGED.
Morgan Accompany Are Agreed Upon
as Agent of French Company.


Washington. May 5.-The president
has received the following report from
the attorney general on the Panama
canal transfer:
The Department Of Justice, May 1
The President. | have the honor
TO report that | have made an ar.
rangement with the new Panama Ca.
nal company and Morgan a. Co.,
whereby Morgan a. Co. have been des.
ignaled agents TO make the transfer
OF the money due by the United States
to the canal company.
The S40,0O0,000 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. Therefore,
the deposit of $40.0OO,0O0 with Nor.
gan & Co. by the United States is ac-
cepted by the canal company as equiv
alent 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 liquidators
of the old company, under an arbitra.
tion authorized and subsequently con
firmed by the French courts. all par.
ties entitled to the money agreed that
II Morgan & Co. would bind them.
selves to make the distribution of the
fund, that delivery of the property
need not await actual payment.
Morgan 4 Co. will make the dis
tribution as follows:
They will place 20.000,000 francs
in the Bank of France to the credit
OF Jean Pierre Gautron, the liquida-
tor OF the old Panama Canal com
pany.
Panama railroad shares, the title TO
which was not to pass TO the new
company until the completion OF the
canal unless 20,000,000 francs were
paid therefor to the liquidator of the
old company. Five million francs
will be paid into the Bank OF France
to the credit OF the new Panama Ca.
nal company which, under the award
OF the arbitrators, is due the new
company to reimburse 1t for 5,00O,0 600
francs paid in April, 1900. for the
railroad concession. OF the remain.
der of the $4O,O0O,O0O 40 per cent
thereof is to be paid into the Bank
of France TO the credit OF the new
company and 60 per cent to the cred
II of the liquidators Of the old com
pany, as provided for by the decree
of the French parties, all expenses in
cident thereto are borne by them and
the United States Is protected from
all costs.
1T is stated concisely this arrange
ment is that the French interests ac'
cept our deposit with the Morgan
company as equivalent 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 Rendaudin. their
representative on the isthmus. with
complete instructions concerning the
delivery Of the property. This de-
partment has cabled similarly to Ma.
jor Brooke, who was designated by
the honorable secretary of war for
that purpose, to act for the govern
ment In accepting delivery.
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 corporation with Morgan Il Co
in accordance with the terms of the
contract. Yours respectfully,
up. G. KNOX. Attorney General"
In connection with these payments
II is said at the treasury department
that Morgan a. Co. will be designated
as disbursing agents of the govern
ment and following the rule In such
cases they will be required to deposit
sac, 100000 in bonds as security to the
government. The payment will be
made as soon as the bonds have been
received, which probably will be in a
day or two.