The Owosso times. (Owosso, Mich.) 1897-1926, 1908-12-18
Special Presidential Message.
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N>.1AsoN AASm Pokp
by that company to the United States
II was no concern of the president OF
Of any officer of the executive depart
ment to inquire as to what the New
Panama Canal company did with the
money which 1t received. AS a mat
ter of fact, the New Panama Canal
company did distribute the money be
tween its shareholders and the share
holders of the preceding Panama
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.
Attempt to Form American Company
call your attention to the accom-
panying statement as to the attempt to
form an American company in 1893
for the purpose of taking over the
property of the French company. This
attempt proved abortive. There was
no conccalment in its effort to put
through this plan; its complete fail
ure and abandonment being known to
everyone. The important points set
forth in the accompanying papers and
in the papers to which have referred
you, are as follows:
The investigation of the history
physical condition and existing value OF
the enterprise by the congress, result
ing in the enactment of the law OF
1902 authorizing the president to &C.
Quire the property for the sum of $40,
100000 upon securing satisfactory
title and thereupon to undertake the
work of construction; the failure oil
the Americanization of the enterprise
in 1899; the transmission by me to the
congress from time to time of full in
formation and advice as to the rela
tons of this government to transit
treaties, as to the negotiations and
final acquisition of the title, and later
as to the progress and condition OF
the work of construction; the previous
authorization of the sale to the United
States by the stockholders of the new
company and their subsequent ratifica
tion the examination and approval OF
the title by Mr.. Knox; the arrange
ments for payment through j. p. Nor
gan & Co. as the fiscal agents of this
government, and the payment accord
ingly at the Bank of France upon
proper official receipts to the liq
uidators acting under the decree OF
the French court, the French govern
mental body having jurisdiction in the
matter; and finally the subsequent ap
portionment and distribution of the
fund to the creditors and stockholders
Of the two companies under that de
cree.
Approved Every Action.
The Panama canal transaction was
actually carried through not by either
Hay, or the then secretary Of war, Mr.
Elihu Root, both of whom, however
were cognizant of all the essential fea
lures; but by the then attorney gen
eral, Mr.. T. c. Knox, at present sena
tor from Pennsylvania. / directed OF
sible for all that was done in carry
ing out the will of the congress; and
the provisions of the law, enacted by
congress after exhaustive examination
and discussion were scrupulously com
piled with by the executive. While
the transaction was pending l 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 oc
casionally saw him, in the same man
ner. l doubt whether Mr.. Root held
any conversation with him. The at
torney general saw him frequently, as
he was counsel for the Panama com
pany; their communications were Of
fetal, 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 with Senator
Knox and Mr.. Cromwell, to whom
wrote in response to the request of a
gentleman who wished to know about
the stockholders in the Panama Canal
company.
The title to the Panama canal prop
critics 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 in any other American
company, nor did this government
have any dealings with an American
company throughout the affair.
Opinion Approving Title.
The exact legal status, to the most
minute details, appears in the ex.
aaustive opinion of Attorney General
Knox approving the title to be given