The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1908-12-18

| torney General Knox reported that
| satisfactory title could be obtained.
| Payment Of the purchase price was
| thereupon made to the new Panama
| Canal company in accordance with
! the act of congress and the property
| was conveyed by that company to the
| United States. 1t was no concern of
| the president or of any officer of the
| executive department to inquire as to
what the new Panama Canal company
! did with the money which it received.
Money Divided by French Court.
AS matter of fact the New Pan
| anna Canal company did distribute the
money between it's shareholders and
| the shareholders of the preceding
Panama Canal company in accordance
with the decree of a French court and
the records of the French court show
who were the shareholders who re-
ceived the money But that is no
concern of ours.
| call your attention to the accom-
panying statement as to the attempt
to form an American company in 1899
for the purpose of taking over the
property of the French company. This
attempt proved abortive. There was
no concealment in it's effort to put
through this plan, its complete failure
and abandonment being known to ev-
cry one. The important points set
forth in the accompanying papers
| and in the papers to which | have re-
| ferred you are as follows: The inves-
tigation of the history of physical con-
dition and existing value of the enter
prise by the congress, resulting in the
enactment of the law of 1902 authorz-
| Ing the president to acquire the prop
erty for the sum of $4,000, 900, upon
securing satisfactory title and there
upon to undertake the work of con-
struction; the failure of the Ameri-
canization Of the enterprise in 1899;
the transmission by me to. the con-
gresS from time to time of full in
formation and advice as to the rela-
tions of this government to transit
across the isthmus and under the
treaties; as to the negotiations and
! final acquisition of the title and later
rs to the progress and condition of
the work of construction; the previ-
Gus authorization of the sale to the
United States by the stockholders of
the new company and their subse
quent ratification; the examination
and approval of the title by Mr.
Knox; the arrangement for payment
! through ]. P. Morgan & Co as the
fiscal agents of this government, and
the payment accordingly at the Bank
of France upon proper official re-
ceipts to the liquidators acting under
the decree of the French court, the
French government and body having
jurisdiction in the matter; and, fl
nally, the subsequent apportionment
and distribution Of the fund to the
creditors and stockholders of the two
companies under that decree.
Knox Managed the Deal.
The canal transaction was actu-
ally carried through not by either the
secretary of state, Mr.. John Hay, or
the then secretary of war, Mr.. Elihu
Root, both of whom, however, were
cognizant of all the essential features,
but by the then attorney general, Mr..
p. G.. Knox, at present senator from
Pennsylvania. ] directed or approved
every action and am responsible for
all that was done in carrying out the
will of the congress and the provi-
sions of the law enacted by congress
after exhaustive examination and dis
cussiOn were scrupulously complied
with by the executive. While the
transaction was pending ] saw Mr..
Cromwell but two or three times and
my communications with him were
limited to the exchange of purely for
NAL courtesies. Secretary Hay occa-
sionally saw him in the same manner.
[ doubt whether Mr.. Root held any
conversation with him. The attorney
general saw him frequently, as he was
counsel for the Panama company, and
their communications were official as
representing the two sides. | enclose
copies of my correspondence with Mr..
William Dudley Foulke, who first
brought these scandalous stories to
my attention, and which Senator Knox
and Mr.. Cromwell, 10 whom / wrote
in response to the request of a gentle
man who wished to know about the
stockholders in the Panama Canal
company. The title to the Panama
canal properties was vested in the
new Panama Canal company of
France, which was the legal owner
thereof, and the old or so called De
Lesseps company had a large equity
therein. The title was not in a New
Jersey company nor any other Amer
lean company, nor did this govern
ment have any dealings with any
American company through the af-
fair The exact legal status, to the
most minute details, appears In the
exhaustive opinion of Attorney Gen
eral Knox, approving the title to be
given to the United States, which
clearly established that the only
party dealt with was the new Panama
Canal company of France with the
concurrence of the liuuidator of this