New-York tribune., 1908-12-16

the Seine. We had neither desire nor autholltS
to go behind this decree of this proper govern
mental body, as all the conflicting rights OF the
security holders OF both companies had been set
tied by the decree of said court by ratification
of the arbitration which resulted IN lhaI ui''-
sion
l wish to make as clear as possible, and as
emphatic as possible, the statement that we dlu
not have anything to do with the distribution
of dollar of the S40O00,000 we paid as re-
CARDS any stockhoder bondholder of the
French companies, save that we followed out
the award of the arbitrators appointed III az
cordance with the decree of the French c0 c0uIt
which had dealt with the subject IN a"dIuIAe
a certain proportion TO the old company ana
certain proportion the new company. any
question concerning the stockholders, bond
holders or other beneficiaries> of the proceeds
Of sale was purely question for the ClVh IIl1
bunal of the Seine, the French governments
body with which this nation had nothing what
TO do.
NO CONCERN WITH MR. CROMWELL
Under these circumstances there was not the
slightest need for Mr.. Cromwell TO give any m
formation on the subject of the companies Tor
which he had been counsel This government
has no concern with Mr.. Cromwelrs relation TO
these companies or either of them, or with the
amount of his professional compensation; 1t was
not the affair of this government to inquire
who were the security holders of the compa-
MES Nevertheless Mr.. Cromwell, OF ms own
accord. has eubmitted to me- together WIN n -, d
copy of his statement published on the 1lth
inst, and which l transmit herewith, Iull MS
of the stockholders of the New Panama Cahal
Company of France on January 10 lyUp mum
bering over six fhousand), and a list or an
stockholders who were present at SPeSSddoai
meeting Of the company held February % l9OZ'
Immediately after the cable offer Of the com
pany was made to the United States (January
Gil 1902 to accept the appraisement OF sfV'-
100000 made by the Isthmian Canal Commls-
sion and 20 sell for said sum the Panama
Canal, concessions. and other property. ana Ine
shares of the Panama Railroad Company. E1e
has also furnished il certned copy ol the
final report of the Qudator of the old com
pany. which filed on June 70 last ana 1or-
mally approved by the Civil Tribunal OF the
yEif1 q
pared and signed by said Hquldator as iate as
the oath ult. ] also transmit translation oI
the two resolutions with the vote upon them,
adopted at meeting of the stoekholoers OF tne
new company held April 23, 1904, FOR the
purpose of finally ratifying the sale.
All these documents l herewith transmit as
2 part of this message. It appears from them
that the creditors OF the old company NUMBER
226 oq6 parties who have received dividends
out of the funds in the hands of the liquidator,
who in his letter, states that in this present
month of December the second and last dls-
tribution to the creditors win be begun. and
that the average dividend heretofore paid to
each individual was 1S2 francs, or Sl9o NO
payment whatever was or will be made upon
the stock Of the old company, as 1t was worth
less from the day De Lesseps failed, and TINS
cuts out from consideration all misleading
statements regarding possible purchase 5I pI
ANYBODY Of the stock of the old Panama Canal
Company. 1t has not received, and viii not
receive. a penny. Even upon the bonded IN
debtedness the dividend, 7 am thus informed
viii amount. in the aggregate TO only a2ouL
10 per centum 1t likewise plainly appears
that this distribution by the hquidator of the
old. company has been openly conducted at MS
office in Paris No. so Rue Etienne Marcel,
where all the receipts, accounts, ana records
of his payments on file.
The New Panama Canal Company OF france
is in liquidation. As the accompanying papers
set forth. this lquidated company received as
its proportion Of the S4oOoOoo0 the sum OF
a. 100000 francs. and this amount was dls-
tributed by the liquidation in three payments
through four leading banks of Paris. covering
a period Of the last four years, and 10 share
|p1d 1YT17Ioe ahOUt 6Hkb Every step
of the transaction not only taken publicly,
hut was ContempOTaneOusly Herewith. adVer-
tised in the legal and financial papers OF
France. and the banks making the payments
took proper. receipts from all the parties TO
whom payments were made. as is customary
The capital of the New Panama Canal Com
pany Of France was 65,00000o francs and the
distribution thus made amounted to about l3O
francs on each share of 100 francs. No dfvi-
dends were paid during the ten years of the
conpsny's existence It therefore resulted that
the shareholders only recovered their original
investment with annual interest Of about
per cent.
which was concluded in June last, are on de-
poslt with the Credit LvOnnaise. Of Paris, as a
proper custodian Of the same, appointed upon
such Iiduidation. Recently a request was made
these payments but answer was made by the
custodians that they saw no proper reason for
granting such request by a stranger. and. In
aslnuch : there is not the slightest ground for
suspicion Of any bad faith in the transaction. il
hardly seems worth While TO make INe requests.
but If the Congress desires l have no doubt
that on the request of our Ambassador in Paris
the lists of individuals will be shown him
As a matter Of fact, there is nothing what
ever. in which this government is interested. TO
investigate about this transaction. So far as
4his 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 Of
ficiaIs.
The Congress took the action 1t did take after
the most minute and exhaustive examination
and discussion. and the Executive. carried out
the direction Of the Congress 10 the letter
Every act Of this government every act for
which this government had the slightest respon-
sibility. in pursuance OF the act of the
Congress here. and following out the decree of
the Civil Tribunal Of the Seine in France.
Furthermore through the entirely voluntary
get Of Mr.. Cromwell. I am able to present
TO you full information TO these actions in
France. with which this government did not
have any concern. and which set forth IN
the accompanying papers.
HOW PRICE WAS FIXED.
II may be well to recall that the New Panama
Canal Company Of France did not itself propose
or fix the figure S40,00O000 as the valuation Of
the canal and railroad properties. That sum
was first fixed by Isthmiau Canal Commits
sion in its reports 70 the Congress after two
years Of investigation and personal inspection
OF all the properties and work already done,
whereby the properties and the work done
in detail appraised at that their value
to the United States. The French company
steadily refused for over two years to make
any offer whatever in answer 10 the many writ
ten requests Of the Isthman Canal Commission:
and when its president did approach the ques-
ton of price it the basis Of St09 O00. 600
Later. under conditions not necessary now to
rehearse. the company by cable, accepted the
appraisement % $40.000.000 made by our com
mission. This government, therefore acquired
all the properties and concessions. both OF canal
and railroad. at its own valuation and price.
the Congress approving the price, and author
izing the expenditure Of the money, after the
most exhaustive examination and discussion.
] transmit herewith lists Of the documents in
the possession Of the Department of State, the
Department OF Justice and the Department of