Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-01-11
AFTER INFORM ALTON
SENATORS ANXIOUS FOR SECRE-
TARY TAFT's EXPLANATION.

The greatest interest is manifested in
the Senate in relation to the explanation
that will be given by Secretary Taft OF
the agreement made April - 1905 be-
tween the fsthTnian canal commission the
Panama Railroad Company, the republic
OF Panama and several banking concerns
as TO the manner in which a uniform rate
OF exchange was to be maintained on inc
silver coin of the republic of Panama
While this understanding between these
various interests is called an agreement
it is generally declared by senator's without
regard to party utilization that ii is in fact
a treaty between the United States and
the sovereign republic of Panama.
Although this treaty was entered into in
the form of a memorandum of agree
ment,' its existance did not become known
to the United States Senate until hearings
were held last December on the subject
of the Panama appropriations by the Sem
ate committee on appropriations.
This matter has been taken to the Senate
committee on finance by means of a reso-
luton offered in the Senate by by Bailey
and adopted recently by the Senate The
committee on finance will be required by
this resolution to ascertain the authority
that was invoked by representatives of the
United states government to conclude and
put into effect such an agreement Secre-
tary TAFT will be called upon in the near
future and he Will probably explain to the
committee the authority that he regarded
as authorizing such an action
Not only are senators surprised that this
treaty In fact, they are inclined to re-
gard 1t, was entered into, but they have
noted that Mr.. VIM. Nelson Cromwell in
that agreement treaty represented the
republic of Panama as its fiscal commits
sioner In the United States, and ii is also
understood that at the same time he In
part represented the Panama Railway Com
pany, and also that he had some sort of
connection, although the Senate is not en-
tirely clear what that connection WAS, with
the War Department.
The agreement is signed by Mr. Cromwell
for the republic of Panama, and Mr.. Shonts
for the isthmian canal commission. and by
Mr.. Shonts and Mr.. Drake for the Panama
Railroad Company.
A great many senator's are inclined to
think that Secretary Taft will declare this
this agreement was made perhaps In haste,
along with very many other agreements
and contracts, and that he simply over
looked the fact, which Ii is In their view.
that 1t amounts to a treaty between the
United States and another sovereign state
The effort of this agreement Is to make
the coin of the republic of Panama legal
tender in the canal zone, for the payment
of obligations of United States citizens and
in contracts entered into by the United
States government.
1t is pointed out that when 1t was desired
to give stability to the coin of the Philip
pine government the facts in the case were
sent to Congress and legislation was care
fully framed in order to accomplish in the
Philippines exactly what has been done by
this agreement in the republic of PAN
anna. 1t is plain, senators say, that every
reason for having Congress act in the Phil
ippines excited in Panama, and that the
only excuse for not having taken that
course that is suggested to many senator's
is that perhaps in the hurry Of business the
nature Of this agreement was not real
lied.