Evening star. [volume] (Washington, D.C.) 1854-1972, 1908-12-15

| the proper french governmental Uouy, Liz
civil tribunal of the Seine. and in &C
| cordance with the decree of this same
| tribunal. with the New Panama Cana
| Company. which also went into liquida'
| ton upon the sale to the United States
! All our transactions were carried or
| openly, and were published in detail.
| The distribution OF our payment oil
| 4o.O00.0O follows the award of arbt-
traitors chosen by the new company and
the liauidator. authorized by the decree
| of this same civil tribunal of the Seine
and providing for a determination of the
| proportionate division between the new
| and old companies. We paid the money
through the New York banking house OF
Messrs. J. P. Morgan Co. acting AS
fiscal agents of this government, into the
| Bank of France in Paris.
The receipts and accounts of our Treas
ury Depa rtment show the payment of the
| money into the Bank of France and &C
count for the money being paid over to
| tribunal of the Seine and to the New
| Panama Canal Company of France. the
proportion of the S4O.O0O,O0O being 12S.-
GOO 600 francs to the liquidator of the old
| Panama Canal Company of France in
| liquidation
| Decree Is Followed.
| In these payments we followed to the
| letter the decree of the governmental
| tribunal of France which had the au-
| thority to make such a decree. the civil
| tribunal OF the Seine. We had neither
| desire nor authority to go behind this
| decree of this proper governmental body
as all the conflicting rights of the Sc
| cur1ty holders of both companies had been
| settled by the decree of said court by
| ratification of the arbitration which re-
| suited In that division.
| l wish to NAL Ike as clear as possible, and
l
| that We did not have anything to do with
| the distribution of dollar of the $40
OO0OOO We paid as regards any stakeholder
| or bondholder of the French companies
save that we followed out the award of
! the arbftratOrs appointed in accordance
! with the decree of the French court which
| had dealt with the subject In awarding a
/ certain proportion to the old company and
certain proportion to the new company
Any question concerning the stockholders
| bondholders. or other beneffciaries of the
proceeds of sale was purely question for
| the civil tribunal of the Seine. the French
governmental 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 to these
companies. or either of them or with the
! amount of his professional compensation;
! it was not the affair of this government to
| inquire who we're the security holders OF
| the companies.
Nevertheless. Mr.. Cromwell. of his own
accord. has submitted to me. together
| with copy of his statement published on
the nth instant and which I transmit
herewith. full list of the stockholders of
the New Panama Canal Company OF
France on January Is. 1900 Numbering
over 5000. and a, list of all stockholders
who were present at special meeting of
the company held February 3d. 1902. inn
mediately after the cable offer of the COM
pany was made to the United States Jan-
uary OIL 1902, to accept the appraise-
ment of 100000 coo made by the isthman
canal commission, and to sell for said sum
the Panama canal, concessions, and other
property. and the shares of the Panama
Railroad Company. He has also fur
nished me a certified copy of the final re-
port of the liquidator of the old company.
which was filed on June % last and for
mally approved by the civil tribunal of
| the Seine, together with a summary ac-
count prepared and signed by said liqui-
dator as late as the Path ultimo.
| I also transmit a translation of the two
resolutions, with the vote upon them.
adopted at meeting Of the stockholders
| 1904 for the purpose of finally ratify1ne
| the sale.
Documents With Message.
! All these documents l herewith trans
| nit as a part Of this message. It ap-
pears from them that the creditors Of the
| old company number 1926 parties who
| have received dividends out of the funds
| in the hands of the liauidator. who. in his
| letter, states that in this present month
| of December the second and last distri-
| button to the creditors will be begun, and
! that the average dividend heretofore paid
| to each individual was 7S2 francs, OF $156.
No payment whatever was Or Will be
! made upon the stock of the old COM
pany as 1t was worthless from the day
De Lesseps failed, and this cuts out from
| consideration all misleading statements
| regarding a possible purchase by anybody
Of the stock of the old Panama Canal
Company. 1t has not received and will
| not receive a penny.
| Even upon the bonded Indebtedness the
| dividend, l am thus informed. will amount
| in the aggregate to only about 10 per
! centum. 1t likewise plainly appears that
| this distribution by the liquidat0r of the
| old company has been openly conducted
| at his Office in Paris. No. 80 Rue Etienne
| Marcel. where all receipts. accounts and
records of his payments are on file.
The New Panama Canal Company of
| France is in liquidation. AS the accom-
panying papers set forth, this liquidated
company received as it's proportion of the
$i0.O0.UO the sum OF U.4OO.HU francs,
! and this amount was distributed by the
| four leading banks of Paris. covering a
period of the past four years and to
/ shareholders numbering about GEO. Ev-
cry step of the transaction was not only
taken publicly. but was, contemporaries
/ ousiy Herewith. advertised 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 in
! such cases
| The capital Of the New Panama Canal
Company of France was 81. 600. 900 francs.
! and the distribution thus made amount ed
! to about 1870 francs on each share of 100
! francs. No dividends We're paid during
the ten years OF the company's existence.
! Ii therefore resulted that the shareholders
only recovered their original investment
! with annual interest OF about } per
cent.
| The accounts and records of this lioui-
are on deposit with the Credit Lyonnaise
J of Paris as a proper custodian of the
same appointed upon such liquidation
! Recently request made by a
private individual TO inspect he records
| of these payments but answer was made
by the custodians that they saw no proper
reason for granting such request by q
stranger, and, inasmuch as there is not
the slightest ground for suspicion OF any
! bad faith in the transaction. it hardly
seems worth while TO make the request
| but if the Congress desires. | have no
/ doubt that on the request OF our ambaS-
sador in Paris the lists of individuals will
be shown him.
Nothing to Investigate.