The Washington times., 1904-05-22
GOVERNMENT PAYS
THE CANAL MONEY
Deal With Commissioners
Is Anticipated.
WARRANT IN BANKERS HANDS
Two Motives Assigned for the Sudden
Change Of Plan-May Avoid
Litigation.

When the honorable commissioners ap-
pointed BY the honorable congress OF
Panama TO receive the 9.000, 900 balance
payment to that country for the canal
rights, arrive In New York next wed
nesday, they viii find their work "a!
done for them In advance, and their
office a sinecure-uniess, indeed, they
consider 1t a farce.
When. some weeks since. the sum Of
81, 00o,C0O was paid J. p. Morgan < Co.,
fiscal agents for the Panama govern
ment, it was announced that this was
a special accommodation. and that the
remaining 100000 would not be paid
until the arrival of the proper accredited
authorities from Panama.
Friday, with great secrecy. and with
no explanation, this large balance was
paid in precisely the same manner as the
first 100000, the check reading to the
Republic OF Panama, J. I. Morgan &
Co, fiscal agents" This check was
handed TO George w. Perkins, the pert
ner Of j. p Morgan. who took II with
him to New York.
Sudden Change Of Plans.
Whatever the reason for this sudden
alteration of plans. the result is GER
tainly that the obligation of the United
States to Panama has been discharged,
as Morgan & Co We're appointed
fiscal agents. not for the first minor
transfer. but for the whole transaction.
and their receipt for the remaining
So. 900. 900 relieves the United States from
further responsibility in the matter. so
that we now stand square with every
interest involved IN the canal PROPOSE
ton. except a claim from the Panama
Canal Company for wages paid to carry
on the work while the negotiations were
pending.
The only explanation vouchsafed for
this sudden change Of front. and this
unexpected settlement after numerous
tween the President. the Attorney Gener-
al. Acting Secretary Of State LOOMS, and
Admiral Walker, president of the Canal
Commission, is that the United States
decided that its title would be better
and the field of operations on the 18TH
mus cleared without delay. If full pay
ment be made to Panama.
Two Apparent Motives.
1t has been unoficially learned. how
ever. that there were at least two i'm
polling motives for the sudden payment
/ One Is that certain citizens of Panama,
or perhaps agents Of the Panama gov
eminent, had contemplated making de-
mands on the United States which. at
least. would involve tedious litigation
II was not thought that these contem-
/ plated claims We're to be made in good
] faith, and by paying Morgan & Co. now
/ the title is perfected. and work can
progress while such suits are pending,
/ II they should be pressed
| The other reason. and one which OBJ
| tains considerable credence, is that Nor
/ gan Co. need the money
/ 1t is known that this firm. during and
/ prior to the revolution, loaned large
/ sums Of money to the embryonic state.
/ and. Of course. charged at least a living
/ rate OF interest. II IS inttmated that
/ this claim. and that Morgan 81 Co
/ had some fears that IL Panama
/ got hold of the remainder, the firm
might whistle for its share for q long
time.
Bankers Have Advantage.
! 1t is assumed that Mr. Perkins, acting
for the firm, was able to convince the
Administration of the business OF it,,
! claim. and. as its right TO act for the
| Republic is unquestioned, and It's receipt
/ gives a clear title. it was decided TO
place the money in its hands, and allow
/ it, with the advantage of possession. to
! arrange its own terms with the Panama
| commissioners when they arrive.
| 1t Is pointed out that this method will
in no wise operate to thwart the plan
for placing Panama on a gold basis.
/ which IL is understood is one OF the
missions with which the commission is
| charged. The check, or Treasury war
/ rant. has not been cashed, and the CON-
| missioners may elect to take their share
! whatever Il may be- in United States
! bonds, which will enable them to estab-
/ lish a national bank, which would al
once place them on gold basis, after
| which an ARRANGEMENT could be made &c
! use United States coinage, as well as
| currency, a plan which would be great
! ~ to the advantage of this country, In
/ view of the large transactions II will
have in the isthmus for many years To