Los Angeles herald. [microfilm reel] (Los Angeles [Calif.]) 1900-1911, 1908-12-16

at present senator from Pennsylvania.
Accepts Responsibility
81 directed or approved every action and am
responsible for all that was done in carrying
out the will of congress; and the provisions
Of the law enacted by congress after exhaust
i've examination and discussion were scrupu-
lously complied with by the executive
while the transaction pending l saw
Mr. Cromwell but two or three times, and my
communications with him were limited to the
exchange of purely formal oouTtesies.
Secretary Hay saw him occasionally in the
same manneri but doubt whether Mr.. Root
had any conversation with him.
1.-THE attorney general saw him frequently,
as he was counsel for the Panama canal com
pany, and their communications were official,
as representing the two Sides"
The action of the government he says, was
wholly uninhueneed by any question OF who
were or who were not stockholders, either in
the new the old company.
III as a matter OF fact" he explains, "the
canal company. either or both, had been owned
by American citizens or by citizens OF any
other nationality, It would not have altered In
the slightest degree the action taken by the
our concern was to get the canal property
which was owned by the French company, and
to see that the title was clear
Transactions Public
our transactions were carried on openly
and published in detail, and we dealt
solely $50 far the interests OF the old Pan
anna Canal company were concerned with the
liquidator appointed by the proper French gov
ernmental body-the civil tribunal Of the
Seine-and il was the decree Of this same
tribunal with the New Panama Canal COM
pany, which also went into liquidation in the
sale to the United States. All transactions
carried on openly and were published in
detail"
The president states that the money was
pand through the New York banking house of
j. Pierpont Morgan & Co. acting as financial
agents of this government, into the Bank OF
France. In Paris.
IN these payments he says, I'VE followed
to the letter the decree Of the government tri-
bunal OF France, which had the authority to
make such a decree-the civil tribunal OF the
Seine. We had neither desire nor authority
to go behind the decree of this proper govern
mental body all the conflicting rights Of the
security holders of both companies had been
settled by the decree Of the said court and by
ratification of the arbitration which resulted
in that division.
Il wish to make as clear as possible and as
emphatic as possible the statement that we did
not have anything to do with the distribution
OF a dollar Of the $40, 900 900 we paid regards
any stockholders or bondholders of the French
capitalists, that we followed out the
award OF the arbitrator appointed in accord
ance with the decree Of the French court which
had dealt with the subject in awarding GER
tain proportion to the old company and GER
tain proportion to the new company.
Question of Civil Tribunal
ANY question concerning the stockholders,
bond holders other benehciaries OF the pro-
the civil tribunal Of the Seine.
Under these circumstances there was not
the slightest need for Mr.. Cromwell to give any
Information on the subject Of the companies
for which he had been counsel.
This government has no concern with Mr.
Cromwells relation to these companies or
with either of them with the amount OF his
personal compensation 1t was not the affair
of this government to inquire to who were
the security holders Of the company.
Nevertheless, Mr. Cromwell. Of his own ae-
has guhmittad together with
copy Of his statement published December II
Of this year (Which I transmit herewith full
list of the stockholders OF the new Panama
Canal company of France on January To- lSOO,
Numbering 6000 He also has submitted
a list Of all stockholders who were present at
a special meeting Of the company February ~
1902, Immediately after the cable offer of the
company made to the United States Janu-
airy gil, 1902, to accept the appraisement Of
$40. 900. 900 made by the Isthmian canal commits
sion, and to sell for said sum the Panama
canal concessions, and other property, and
the shares of the Panama Railroad company"
Will Make No Payment
Referring to accompanying documents, the
president says no payment Will be made upon
the stock of the old Panama Canal company.
and he is Informed the payment of the bonded
indebtedness will be but 10 per cent.
about 6OOO shareholders of the new Panama
company will receive payments and they VIII
recover their original investments with annual
interest of about per cent.
The accounts and records Of this liquidation,
which was concluded in June last" he said,
ARE on deposit with the Credit Lyonnaise Of
Paris, a proper custodian Of the same, ap-
pointed upon such liquidation.
Recently a request was made by private
Individual to inspect the records of these pay
ments, but answer made by the custo-
dams that they saw no proper reason for grant
ing such request by stranger, and mas
much as there is not the slightest ground for
suspicion of any bad faith in the transaction,
it hardly seems worth while to make the re-
quest; but If the congress desires l have no
doubt that on the request of our ambassador
in Paris the list of individuals will be shown
him.
las a matter of fact there is nothing what
ever-in which this government is interested
to investigate about this transaction. So far
as this government is concerned every step Of
the slightest importance has been made public
by its executive and every step taken in
France has there been made public by the
proper officials"