Evening star. [volume] (Washington, D.C.) 1854-1972, 1904-05-04
PAYMENT FOR CANAL
Morgan & Go. to Act as
French Company Agents.
DETAILS OF THE PLAN
ATTORNEY GENERAL KNOX RE-
PORTS TO PRESIDENT.
Money to Be Deposited at once-Exec-
utive Conference of Canal Com
mission Held Today.
DETAILS OF THE PLAN

Attorney General Knox had a conference
with the President this morning on the
manner of paying the $40,0O0,0O0 for the
| Panama canal, and submitted to the Presi-
dent the following statement covering the
| arrangements for the transfer of the
money:
May T. 1904.
The President:
l have the honor to report that I have
made arrangement with the new Pam
anna Canal Company and Morgan q Co.
whereby Morgan &, Co. have been desig-
mated agents to make the transfer of the
money due by the United States to the
canal company.
The $4,000 600 is to be deposited with
Morgan & Co. at once, upon the delivery
by the canal company to the United states
| of all the property included in the pur-
| chase SO that the deposit of $4,000, 600
with Morgan & Co. by the United States
| is accepted by the canal company as equiv
alent to. payment for the purposes OF
| delivery of the property to the United
States.
Owing to the fact that 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 entitled to the money
agreed that If Morgan & Co. would BIND
themselves to make the distribution or the
| funds delivery of the property need not
await actual payment.
Morgan & Co. will make the distribution
| as follows:
They will place 2O0O0OOO francs in the
Bank of France to the credit of Jean
Pierre Gautron, the lquidator OF the old
Panama Canal Company. This represents
| the value of the Panama railroad shares
| the title to which was not to pass to the
new company until the completion or tne
canal unless 20.000,000 francs were PAID
! therefor to the liqudator of the old com
Dany Five million francs Will De p3lu
| into the Bank of France to the credit of the
new Panama Canal Company, which, un-
| der the award of the arbitrators, is due TO
| the new company to reimburse it for the
| 5000, 600 francs paid in April, 1!Wo, for the
extension of the concession. OF the re-
mainder of the $40, 900 40 per cent there
Of is to be paid into the Bank OF france 10
| 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 interests accept our deposit
with Morgan & Co. as equivalent to pay
| ment 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, its representa-
tive upon the isthmus, with complete in
structions concerning the delivery of the
property. This department has cabled SINH
larly to Maj. Brooke, who was designated
by the honorable Secretary of War for that
purpose, to act for the government IN ac-
cepting delivery.
The canal companx has likewise placed at
the disposition of the United states the
personnel of it's organization upon the
isthmus for the purpose of temporary serv-
ice in the preservation of the works and
property pending the preparations by the
canal commission to undertake active oper-
ationS.
/ have notified the commission of the
situation, and nothing now remains to be
done except to take possession of the prop
erty and direct the deposit of the considera-
ton with Morgan & Co in accordance with
the terms of the contract.
Yours respectfully, P. C. KNOX,
Attorney General
Canal Commission Conference.
There was an informal executive confer
ence of the members of the isthmian canal
commission in their offices in The Evening
Star building today, at which a number OF
matters of interest were discussed.
1t had been intended to elect secretary,
but this action was not taken this morning.
1t was stated that no matters of interest to
the public were in shape to be given out.
The Arrangement made by Attorney Cen
eral Knox for the payment for the canal
was made known to the commission. That
body is debating the question as to how the
work shall be DONE whether by the COM
mission or by contract
Appointed Disbursing Agent.
The Treasury Department today an
nounces that Morgan & Co, have been ap-
pointed disbursing agents of the govern
ment, and not fiscal agents. Following law
and precedent, the treasury will require
Morgan & Co. to place with the treasurer
bonds worth $4O,OO0.GOO to cover the pay
ment of the money to that firm. When
Morgan & Co. have done this the $40, ,0O0,tN
will be paid to them and they can pro-
ceed with it's disbursement according to
arrangements that have been entered into.
Morgan & Co. will not have to buy the
bonds they put up as security. The treas
ury will not insist on United States bonds,
and Morgan & Co. can borrow a sufficient
amount of bonds, together with what they
own, to cover the amount placed with them
by the United States.