The free lance. (Fredericksburg, Va.) 1885-1926, 1908-12-19
eelred the money. but that Is I'D CON

ceived the money, but that Is no con-
Germ Of ours.
call your attention to the accom-
panying statement as TO the attempt
10 form an American company In 1893
for the purpose Of taking over tne
property of the French company. Inns
attempt proved abortive. There was
no concealment In It's effort 70 put
through this plan, its complete taiiure
and abandonment being known 10 eV-
cry one.
The important points set torth III
the accompanying papers and IN Tue
papers to which l have referred you
are as follows:
The investigation Of the history,
physical condition and existing value
of the enterprise by the congress, re-
sulting In the enactment of the law OF
1902 authorizing the president to &c
ouire the property for the sum OF S4o'
100000 upon securing satisfactory
title and thereupon to undertake Inc
work of construction; the failure "
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'
tions Of this government to transit
across the isthmus and under the
treaties, as to the negotiations ana
final acquisition Of the title ana la'et
as to the progress and condition OF lhf
? work of construction; the previous au'
thorization Of the sale TO the United
States by the stockholders OF the new
company and their subsequent raiincA'
ton; the examination and approval OF
the title by Mr.. Knox; the arrangements
for payment through J. 7. Morgan y
Co. as the fiscal agents Qf TINS gov
ernnent and the payment accordinsly
at the Bank Of France upon proper ON
cial receipts to the liquidators acting
under the decree Of the French coust'
the French governmental body having
Jurisdiction in the matter, and. tpaliy,
the subsequent apportionment and DIS
tribution of the fund TO the creditors
and stockholders Of the two companies
under that decree.
q. ~ Am Responsible"
The Panama canal transaction was
actually carried through not by either
the then secretary OF state, MIR. John
Hay. or the then secretary Of war, Mr.
EHhu Root both OF whom, however
were cognizant Of all the essential
features, but by the then attorney gen
eral, Mr.. p. C. Knox, at present sena-
tor from Pennsylvania. ] directed or
approved every action and am respon-
slble for all that was done In carrying
out the Will Of the congress. and the
provisions Of the law. enacted by con
gress after exhaustive examination
and discussion, were scrupulously com
piled with by the executive. While
the transaction Was pending J saw Mr..
Cromwell but two or three times, ead
my communications with him were
limited to the exchange Of purely
formal courteses. Secretary Hay o.
casionally saw him IN the same man
ner. | doubt whether Mir. 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
Official as representing the iiSo sides
I inclose copies Of Isrf correspondence
with slr. - ~tfiiliam Dudley Foulke, who
inst brought these scandalOus stories
to my attention, and with Senator
Knox and Mr.. Cromwell, 10 whom J
wrote iii 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 proper
ties 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 n New Jersey
company nor In any other American
company, nor did this government have
any dealings with any American com
pany throughout the affair.
The exact legal statue, TO the most
minute detail, appears in the exhaus-
dive opinion Of Attorney General Knox
approving the title 10 be given TO the
United States, which clearly estab-
fishes that the only party dealt with
was the New Panama Canal Company
of France with the concurrence of the
llouidator Of the old company and not
any American corporation or syndicate
Transactions Carried on Openly.
The action Of the United States gov
eminent was, Of course, wholly unin-
fiuenced by and had nothing what
ever TO do with any question as to
who were or VINO nau Deen me securi-
ty holders Of either the new or old
company. Who such security holders
were was not our affair. If, as mat
ter Of fact, the canal companies,
either or both, had been owned by
American citizens or by citizens Of
any other nationality, it would not
have altered in the slightest degree
the action taken by this government.
Our concern was to get the canal
property which was owned by the
French company and to see that the
title was clear. Our transactions
were carried on openly and were pub
lished In detail, and we dealt solely
(ro for % tho interests of the old
Panama company were concerned
with the liquidator appointed by the
proper French governmental body, the
civil tribunal of the Seine, and. in
accordance with the decree Of this
same tribunal, with the new Panama
Canal company, which also went into
liquidation upon the sale to the United
States. All our transactions were
carried on openly and were published
In detail.
The distribution of our payment Of
$40, 0000 900 follows the award Of arbi-
traitors chosen by the new company
and the liquidator, authorized by the
decree of this same civil tribunal Of
the Seine and providing for a deter
mination Of the proportionate division
between the new and old companies.
We paid the money through the New
York banking house Of Messrs. ]. +.
Morgan & Co., acting as fiscal agents
of this government. into the Bank Of
IoARRV TIM LARGEST AND MOST CCk