The free lance. (Fredericksburg, Va.) 1885-1926, 1908-12-19


cdhnts OF our treasury department
show the payment Of the money into
the Bank of France and account for
the money being paid over to the liqui-
dator appointed by the clvIl tribunal Of
the Seine and to the New Panama
Canal Company Of France. the proper
ton OF the S40OoO000 being 12s,G00,
600 francs to the liQuidator Of the old
company and 77,400,0O0 francs to the
New Panama Canal Company OF
France In liquidation. In these pay
ments we followed TO the letter the
decree Of the governmental tribunal OF
France which had the authority to
make such a decree. the civil tribunal
Of the Seine. We had neither desire
nor authority to 60 behind this decree
OF this proper governmental body, as
all the conflicting rights Of the secu-
rity holders Of both companies had
been settled by the decree OF SAID
court by ratification Of the arbitra-
ton which resulted In that division.
Did Net Distribute a Dollar.
I wish 10 make as clear as possible
and as emphatic as possible the state
ment that we did not have anything to
10 with the distribution of a dollar OF
the $l0.0O0,000 we paid as regards any
stakeholder or bOndholder OF the
French companies, save that we fol
lowed out the award Of the arbitrators
appointed In accordance with the de-
cree Of the French court which had
dealt with the subject In awarding n
certain proportion to the old company
ann o Gertal4 proportion to the new
company. Any question foncernjdg
the stockholders, bondholders or o(her
benefciarles Of the proceeds Of sale
~as purely a question for the civil tri-
bunal OF the sein0. The French govern
mental body. with which this nation
had nothing whatever to do
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.. Cromwell's relation
10 these companies or elthe' Of them
or with the amount Of his professional
compensation. IL was not the AFFAIR
Of this government to Inquire who were
the security holders OF the companies.
Nevertheless Mr.. Cromwell Of his own
accord has submitted TO me. together
with ascopy OF his statement published
on the nth inst and which | transmit
herewith. a full list of the stockholders
Of the New Panama Canal ComNany of
France on Jan. u, 1900 numbering
over G.000l. and list Of all stockhod-
ers who were present AT a special meet.
ing of the company held Feb. y, l!O2.
immediately after the cable offer OF
the company was MADE ~ tho piItQd
States Jan. eli, 1902 to accom- the
appraisement Of $i0000,000 maze bS
the Isthmlan canal commission End to
sell for said sum the ranamaf canal
concessions and other property and the
shares Of tho Panama Railroad com
pany.
lie has also furnished me a certified
copy Of the fine ;ree,y,Ss rrtt- Of the Iqul-
dator-cT' the old company. which was
iled on June % last aud formally ap-
proved by the civil tribunal OF the
Seine together with a summary ac-
count prepared and signed by said
llquidator as late as the oath ult
Old company's Stock Worthless.
| also transmit IA translation Of the
two resolutions, with the vote upon
them, adopted at meeting OF the
stockholders Of the new company held
an April %, 1904, for the purpose Of
finally ratifying the sale.
All these documents herewith
transmit as a part Of this message. Ii
appears from them that the creditors
OF the old company number 226.296
parties who have received dividends
out Of the funds in the hands OF the
liquidator. who i'm his letter states that
In this present month Of December the
second and last distribution TO the
creditors will be begun and that the
average dividend heretofore paid TO
each individual was 7S2 francs, or Sl56
No payment whatever was or will be
made upon the stock Of the old com
pany. as It was worthless from the
day De Lesseps failed, and this cuts
cut from consideration all misleading
statements regarding a possible pur-
chase by anybody Of the stock OF the
old Panama Canal company. 1t has
not received and will not receive q
penny. Even upon the bonded lndebt-
edness the dividend, am thus inform
cd. will amount In the aggregate to
| only about 10 per centrum. AZ likewise
plainly appears that this distribution
by the liquidator Of the old company
has been openly conducted at his Of
fee In Paris. No. 30 Rue Etlenne Mar
eel. where all the receipts. accounts
and records Of his payments are on
| file
The New Panama Canal Company Of
France Is In liquidation. As the ac-
companying papers set forth, this
liauidated company received as its
proportion Of the $4O,OOO,0OO the sum
of 77.4OO.OOO francs, and this amount
was distributed by the. liquidation IN
three payments through four leading
banks Of Paris, covering period Of
the past four years. and to sharehold
ers numbering about 5000. Every
step Of the transaction was not only
taken publicly. but was contempora-
neously Herewith advertised In the
legal and financial papers Of France
and the banks making the payments
look proper receipts from all the
parties to whom payments were made,
as Is customary In such cases.
The capital Of the New Panama Ca
nal Company Of France was 65,0000OO
francs. and the distribution thus
made amounted to about 100 francs on
each share of 100 francs. No divi
dends were paid during the ten years
Of the company's existence. 1t there
fore resulted that the shareholders
only recovered their original invest
ment with annual interest of about 3
per cent.
The accounts and records Of this
liquidation. which was concluded In
June last, are on deposit with the cred.