The evening world., 1908-12-15

OOuN upon securing a satisfactory titls
ana th"r'upou to UNDER AXE tho work
# construction. The failure OF tie Amer.
iCanIzi,icn II the enterprise IN l,tl. the
transmits on by me TO the Congress
from time to time Of full Information
and advice as 10 the relations OF This
lsthnus and under the treaties. as 10
/ the negotiations and fiual acquisition OF
! the title. ana later As To the progress
and condition OF tie work Of construc-
| hon; the previous authorization Of thf
/ sale to the United States by the stock
/ holders of the new company and their
subse GueNt ratification: the eXaminatio
and approval Of the tjtl" by Mr. Knox,
! the airanS ements for payment through
J. 7. Mor-an Co, as the tiscal agents
OF this Government. and the payment
proper Official receipts 20 the lqusdatOrs
acting under the decree OF the French
court. the French governmental body
having jurisdiction in the matter: and,
and distribution of the fund 10 the cred
iiorS and stockholders Of the two COM
pauieS under that decree.
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,
ever, were cognizant OF all the essen
tial features; but by the then Attor.
Senator from Pennsylvania. directed
or approved every action, and am re-
sponsible for all that was done in car
rying out the will Of the Congress-
and the provisions of the law, enacted
by Congress after exhaustive examina-
ton and discussion, were scrupu!onsly
complied with by the Executive. While
the transaction was pending I saw Mr..
Cromwc / but two or three times, and
my communications with him were
limited to the exchange Of purely for
NAL courtesios.
Secretary Hay occasionally saw him
in the same manner; l doubt whether
Ilr. Foot held any conversation with
him the Attorney-General saw him
frequently. rs he was counsel for the
Pal ana Company: their commun'ca-
tlous We're official. as representing the
t'tu sides. | inclose copies Of my cores
Fuulke who first brought these scandal
Gus stories TO my attention, and with
Senator Knox and Mr.. Cromwell. to
whom l wrote in response to the H.
quest OF gentleman who wished TO
know about the stockholders in the
Panama Canal Company.
The Vested Title.
'Tne title t. the Panama Canal prop
critics was vested in the New Panama
Canal Company of France, which was
the lesa! 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 nav" any ~eaIlnSS with any
American company throughout the
"The exact legal status, to the most
minute detail, appears in the ezhaus-
tive opinion of Attorney General Knox
approving the title to be given to the
United States, which clearly estab-
fishes that the only party dealt with
vac the New Panama Canal Company
CT France with the concurrence Of
the uqutdator of the old company and
not any American corporation or syn
d!cate.
"rhe action of tho United States
Government was, OF course, wholly un-
Influenced by, ana had nothing what
ever to dc with, any question as TO
who were, or who had been. the secur-
ity-hoIders of either the new or the
old company. Who such security
holders were was not our affair. II, as
a matter Of fact, the canal companies,
either or both, had been owned py
American citiZea1 or by citizens of any
other nationality, it would not have
altered in the slightest degree the &C.
ton taken by this Government. Our
concern waB to get the canal property
which vas owned by the French Com
pary, ard to see that :he title was
clear. Oar transactions were carried
on openly, and were published in de-
tail, and we dealt solely $50 far az the
interests OF the old Panama Company
were coEcerEed) with the Hquidator
appointed BY the proper French Gov.
tho Seine, and in accordance with the
decree Of this same tribunal, with the
Rev Panama Canal Company, which
also went into liquidation upon the
tranEactions were carried on openly,
and were published in detail.
Paid Through J. P. Morgan & Co.
The disglJItlon Of our payment Of
i40,m9iUJ follows the award Of ar5ltra-
tors -Iusen by the n"y company and
the Iqu.I4tur, authorized by me decree
~ This sane Civil TT 1unal Of tle Seine.
proportiona'e division between the new
ana Old com panes,
New York banking honEs of MeEErs. ].
p: Morgan Il Co. acting fscal agents
Of this Government, into the Bank Of
france IN Faris. The receipts and &C
show the payment of the money into
the Bank OF France and account for
the money being paid over to the iqui-
GATOR appointed by the Civil Tribunal
OF th9 5eine ana to the New Panama
casal Company Of France. the proper
ton OF the forty million dollars being
l2a,eOo,ooo francs TO the Equidator OF
the old company and 77,4oo,ocO francs
to the Kew. Panama Canal Company
Of France in liquidation, In these
payments we followed TO the letter
the decree OF the Governme ntal tri-
huHal OF France which had the author
lty TO MAKE sucn decree, the Ciyll
Tribunal Of the Seine. We had neither
desire nor authority 20 go behind this
decree Of this proper governmental
hody, az all tina conflicting rights OF
the Beogrity Inc lders Of both companies
haG Eecp Eet;led by the decree OF said
conrt ny ratification Of the arbitration
when rcLGlted in that division.
wish 10 maze as clear |g Orsiblc,
ana p" emphatic ms possible, ~" state
mcut t.at We I'D not have anything To-
do with tuc distribution 81 dollar Of
the NuwnnD We paid as regards any
stcCkholdcr or hordhulder Of the French
companies, save that We followed out
the award Of the arbitrator appointed
IN accordance y ith the decree Of the
French court which had dealt with the
subject In awarding a certain proper
ton 10 the old company ana certain
Proportion 20 tie new .lmpuI". ANY
question concerning the stockholders,
bundholders or other bcuchUiarIes Il the
proceeds II sale was unrol' ID quest lion
for tho 'iy.l Tribunal ~ {. 20 Seine. the
French Governmental body H.th which
Thu nation lad rotr.uE " A4teyer 10 do.
No ConSern Win Cromwell.
Uadss these cIrp1li4stauoss there was
not the slightest assa for Ns. Cromwell