Daily Kennebec journal., 1908-12-16

" considered by the Congress pelore "
In the Act approved June %, 1902. '"ro
provide for the construction Of canal canal
connecting the waters. Of the Atlantic
and Pacific oceans" the Congress pro-
VII THAT It the President of the United
States is hereby authorized to acquire,
for and on behalf of the United States, at
dollars, the rights, privileges, franchises,
concessions. grants Of land, I1ght OF way,
unfinished work. plants, and other prop
nam maine and nature. owned ~ the New
Panama Canal Company, of France, on
the Isthmus Of Panama, and all ITS maps
Of Panama and in Paris. including all
the capital stock, not less. however, than
sixty-eight thousand eight hundred ana
sRares ewned by or hed for
use of said Canal Company, provided a
satisfactory title to all of said property
can be obtained 49,.
President, in execution of this statute, 70
purchase the property specified IRON the
New Panama Canal Company. OF France,
title The Department Of Justice was IN
structed to examine the title, and after
such an examination Attorney-Gen .,tia
Knox reported that satisfaftfhLs af thse n,'re 1re
chase price was thereupon made to the
New Panama Canal Company, in ac-
cordancc with the act of the Congress. :
and the property was conveyed ny tnat
company to the United States. 1t was
no concern of the President, or OF any
officer of the Executive Department; TO
al Company did with the money which 1t
received As q matter of fact the New
Panama Canal Company did distribute
the it's it's Pana
ma Canal Company In accordance with
the decree of French court. and the rec
ords of the French court show who were
the shareholders who received the money;
but that is no concern of ours
l call your attention to the accompany
ing statement as to the attempt to form
French company. This attempt proved
abortive. There was no concealment IN
its t to put tn
known to everyone.
The important POINTS set forth in the
accompanying papers, ana IN the papers
lows:
The investigation Of the history. physi-
cal condition, and existing value o1 tne
the enactment of the lazy. of 1902 author
iZing the President to acquire the properly
for the sum of OO0 upon securing
satisfactory title and thereupon to un- IN
dertake the work of construction; the
failure of the Americanization of the en-
terprse in 1899; the transmission by me TO
the Congress from time TO IN t1mf fbe Oh ,e1al aHl
tions of this Government to transit across
the Isthmus and under the treaties. as TO
the negotiations and final acquisition OF
condition of the work. OF constructor,
the previous authorization OF the sale 70 70
the United States by the .stockholders OF
the new company and their subsequent
ratification; the examination and APP
proval of the title by Mr.. Knox; the ar
rangements for payment through j. r. r:
hn
Of tits Government. and the payment ac-
cordingly at the Bank of France upon a
proper OFFICIAL receipts to the M liquldatorbs onnb
court the French governmental body
having jurisdiction in the matter; and,
finally, the subsequent apporilonment
tors tors and and stockholders Of the two, COM
panies under that decree
The Panama Canal transaction was ,e ac-
tnally carried through not BY 1a,, eitner t1r .ne
or the then Secretary of War. Mr. Elhu
Root both of whom. however, were cog.
infant of all the essential 1eaturesi oE'
hy the then Attorney General, MI. r. =.
Knox, ct present Senator from Pennsyl-
vania l directed or approved every ac-
ton, and am responsible for ali tnat @ va, was
sress: and the provisions of the law, en-
acted bv Congress after exhaustive ex-
animation and discussion, were scrupu-
lousy compiled With by the nendne saw
NJ Cromwell but two or three times. and
nv COMMUNICATIONS witt. him were limit,
ed to the exchange e Cav pupeiy h1sn
saw him, in the same manner, douD'
whether Mr.. Root held any conversa'
ton with hir,. The. Attorney-Genera saw N
Panama Company; their communications
we're official. as representing the twe
sides. I enclose, conies Of ,Ia my CONES corres'
Who first brought these scandalous stories
| TO INV attention, and with Senator knoA
and Mr Cromwell. to whom l wrote II
| response to, the request OF a fehtletf,latl nntl
holders in the Panama Canal COMPANY.
The title to the Panama Canal prop
critics was vested in in the ,e"h Mew panat ian the
| legal owner thereof: and the old or SO So
| called De Lesseps Company had a large
| equity therein. The title was not N
| American company. nor did this Govern
| ment have any dealings with any Am
erican company throughout the affair:
ute detail, appears in the exhaustive opin
ION of Attorney General Knox approving
| tine title to be given to the United states
which clearly estabshtfhs as the tSa New 'a Panama ana
| canal COMPANY of France with the con.
currencc of the liquidator of the ole
| company and not any American GU {"
| ton or syndicate.
| The action of the United States Govern.
| ment was, of course, wholly unlnf1uencet
Nv. and had nothing whatever to do WITH
| anv question as to who were, or who mac
been, the security-holders of either the
| new or the old company. Who such e.: Sc e.
| curity- holders were was not our an alr
If, as a matter of fact. the Canal com
| panies, either or both, had been oWnet
| bv American citizens or by citizens OF
any other nationality, it would not hav'
| altered in the slightest degree the ac
| ton Of this Government. Our concefi
| was to get the canal property which wa!
| owned by the French Company. and Il
| see that the title was clear. Our transac
| tions were carried on openly. and were
| published in detail. and We dealt solely
| $50 far as the interest of the old Pana
| ma Company We're concerned) with tn
liquidator appointed by, the prope. pp.
| French governmental body. the Civi
Tribunal of the Seine. and in accordarc,,
| with the decree of this same tribunal
| with the New Panama Canal Company
which also went into liquidation upon th
| sale to the United States. All our, tran
sactons were carried on openly, and wer
published in detail
| The. distribution of our payment of $40,
| ooo non follows the award of arbitrator
chosen by the new. company and tn
| .,,.natol, authorized by. the decree
| this same Civil Tribunal of the Seine
| and providing for q determination OF TN
| proportionate division between the new
and old companies. We paid the none.
.'ron~h tho New York banking house. o