Grant County herald. [volume] (Lancaster, Wis.) 1850-1968, 1908-12-23

of any officer of the executive depart.
ment TO inquire as to what the New
Panama Canal company did with the
money which it 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.
l call your attention to the accom-.
panying statement as to the attempt to
form an American company in 1899
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 existir gvalue of
the enterprise by the congress, result.
ing in the enactment of the law of
1902 authorizing the president to ac-
quire the property for the sum of $40.
100000 upon securing a satisfactory
title and thereupon to undertake the
work of construction; the failure Of
the American ization of the enterprise
III 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
across the isthmus and under the
treaties, as to the negotiations ard
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.
ton; the examination and approval OF
the title by Mr.. Knox; the arrange.
ments fer payment through ]. 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
the then secretary of state, Mr.. John
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.. F. c. Knox, at present sena-
tor from Pennsylvania. l directed or
every action, and am respon
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 courtcsies. 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.
1 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, aud 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.
Cpinicn Approving Title.
The exact legal status, to the most
minute details, appears in the ex.
haustive opinion of Attorney General
Knox approving the title to be given
to the United States, which clearly es-
tablishes that the only party dealt
with was the New Panama Canal com
pany of France with the concurrence
of the liqUidator of the old company
and not any American corporation or
syndicate. The action of the United
States government was, of course,
wholly uninfluenced by, and had
nothing whatever to do with, any