Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-03-29
EVERY SHARE SECURED
ALL BUT FIVE BOUGHT, AND
THOSE ARE PROMISED.
General Counsel Cromwell Tells Secre-
tary Taft Of the Successful Re-
suit Of His Efforts.

Of the 275 share of the stock of the Panama
Railway Company still outstanding. In
behalf Of the President Secretary Taft has
returned thanks for Mr.. Cromwells valu-
able offices in the matter, and regrets that
Mr.. Cromwell would not permit him to
hand him. as he might. reasonably do. q
substantial sum in compensation for his
services.
On His Own Responsibility.
In his letter to Secretary Taft Mr.. Crom-
we'll says:
Further to my report of the Sth instant,
and your reply of the same date. beg
leave to advise you of the considerations
and policy which determined me to pro-
coed upon my own responsibility to ac-
quire the balance of the outstanding ock
after l had exhausted the authority which
you had conferred upon NE.
Under your authorization of January 16
last had actively proceeded, and little by
little had secured from the holders in Eng
land France Italy and the United States
all but 275 shares by the time the offer
pired Counting the eight single shares
owned by the eight present and recent di-
rectors as already in friendly hands) AZ
though the results above mentioned had
been so greatly to improve and strength IN
the position of the United States, 1 realized
perhaps more than any other man the SUI
preme importance-indeed the absolute ne
to obtain absolute ownership of the Pan
anna Railroad Company and that quickly.
The Railroad Indispensable.
1.-The railroad is an indispensable factor
in the construction of the canal. and it. as
well as the steamship line. is necessary as
an instrument of canal construction, as well
as for the protection of the vast national
interests on the is:hnlus. The limitations
upon the management. owing to other stock
interests. would inevitably retard the work
Of construction and vastly increase the cost
or the canal, while probably leading 10
grave litigation.
THE railroad concession is of incalculable
value to the United States, and confers
rights which, in my opinion, are additional
by the Pharmaceutical States treaty. and
this concession is owned by the Panama
railroad.
Under the railroad concession it is pro-
Vlded that there shall not be undertaken
without the concurrence and consent of the
railroad company, the opening of any mari
time canal across the Isthmus of Panama
uniting the Atlantic and Pacific without
payment to the railroad company of an
equitable price for such privilege, and as
indemnification for the damages which the
railroad company may suffer by the rivalry
or competition of the canal. You will ap-
preciate the significance of this.
IF the operations of the railroad COM
pany were conducted especially in the in
| terests of the United States as the chief
stockholder, and not for the common in
terest of all stockholders alike. application
for injunction and receivership would be
made to the courts of the state of New
York by the legislature of which state the
charter of the company was granted.
Sentiment of Congress.
Both the Senate and House of Represen-
tatives have passed bills declaring that the
Panama railroad stock was necessary for
| the United States and providing for the
| condemnation of the same under the right
| of eminent domain; the bill passed by the
Senate also conferred authority upon the
President to purchase all outstanding
stock at such price he might deem adj
visable. These bills failed of enactment
through differences between the two houses
upon other points, and 1t tranSplred that
while both houses of Congress clearly evil
denced this purpose, they failed to execute
| 1t, and the President was deprived of the
powers which it would have conferred.
I Action of House Committee.
1.-THE subcommittee of the interstate and
| foreign commerce committee of the House
of Representatives. appointed under a reso-
luton of the House to inquire into the
plans and management of the Panama
Railroad Company, made exhaustive in
qulry and took Yolumnous testimony in
performance OF Its duties. On March } 1t
made its unanimous report, fully indorsing
the management as conspicuously able
progressive and businesslike. and added:
The committee is of the opinion that
the United States should secure ownership
of the entire stock of the Panama Rail-
road Company. For these and other con-
siderations which seemed to me of the
highest national concern, I felt impressed
with the patriotic duty to completely mas
ter the situation in interest of my govern
ment, regardless of the fact whether I was
reimbursed or not. The duty was before
me, and it seemed that 1 alone could deal
with it. Therefore I quickly. and by ex-
IRENE effort, succeeded in securing from
the various parties 270 out of the remain
Ing 215 shares. ard hold the contract of
the owner of the last five shares to de-
liver the same upon return from Europe.
All But Five Shares Owned.
1.-THE transactions concerning these 275
shares have all occurred since the ad-
journment Of Congress. have paid for 27O
of these shares to the several owners
thereof, whose receipts for the payments
1 hand you herewith, and will make pay
ment of the last five shares upon actual
delivery. All this has been done by me in
the spirit of a national duty and pride and
I, of course place the stock at the COM
mand of my government at its actual cost
to me.
LAS you know I have not permitted the
thought of compensation or profit to me to
be even entertained in the entire affair and
I now add that if the government finds that
there is any limitation upon it's power to
acquire the stock l will cheerfully carry Il
for the government, and subject to the same
conditions above mentioned together with
irrevocable proxy to the government to vote
thereon), until such time as any Legislation,
be obtained which the President may con-
slider desirable. Thus 1 have succeeded. my
dear Mr.. Secretary, in acquiring the entire
capital stock"
Secretary Taft Expresses Appreciation.
Secretary Taft today replied to Mr.. Crom
we'll follows:
81 beg to acknowledge receipt of your
letter of the 2Sth instant, explaining the
circumstances of the purchase by you of
the remaining 275 shares of stock of the
Panama Railroad Company, in addition to
the 12S shares you nave previously pur-
chased under authority of the President
and myself.
II have conferred with the President in re-
spect to his matter. and also with a num-
Der of prominent senators and representa-
tives. whose acquaintance with the situa-
ton made me feel their advice to be of es-
pecial value, and we all regard the nur
chase as of the utmost benefit to the gov
eminent, and feat which, but for your
assistance, would have been exceedingly
difficult to accomplish.
70 ha