New-York tribune., 1908-12-16

when he has not one shadow ef justification OF
any sort or description for the charge ne @ nsS
made The Attorney General has under con
sideration the form in which the proCee""s0
against Mr.. Pulitzer shall be brought
Meanwhile I submit to you an M tie toFora
.asnvins papers so that you may have beIoIe
you complete information on the subject.
call your attention TO my coiriII,UllI Iso-,- o0
nv messages 10 the Congress OF January JH "
1892 March IL. 1908. December q 1919. Iaiu Jan
zrv j 1904 and December ID, lSVo III MI,ICtl
set forth at length the history of various phassS
OF the whole transaction recai your q.
1ention TO the report and opinion OF tne At
-so~nev General rendered TO me, dated OCTOBER
f25 1902 with the accompanying oocu ne
- exhfbsts call vour attention to the
l,eorrespondenca Of the officers and agents OF
the Panama Canal Company with the Fresioeht
and other officers Of the United States prInte3a
in senate Document No. "a. December 10. IsVz:
ialso 10 the COPY Of the official proceedings or
f4he New Panama Canal Company AT faIls oh
the 3oth of December 1908 together v. WIN n
report Of the Council OF Administration Vi 10
aronpRnv printed IN Senate Document NO. loo.
hJanuary 2S 1904: and to the copy OF the
general conveyance by the New fanaiid
Ss1aJ Companv 10 the United States, also
copies Of certain kilograms from the presi-
i,se5t Of the company making offer Of
sale and Attorney General EnoX's cablegranl
in response printed in Senate Document NO.
i2S5. March %. 1906 I call your attention
Furthermore 10 the exhaustive testimony re
corded in public document tSen. Doc No 4Vl,
5oth Cong. 2nd sess). which contains the
searching Investigation into the whole traTsae
tion made by the Congress for its information
and fully considered by the Congress before II
took action
PROVISIONS BY CONGRESS.
In the act approved June 2S. 1902, ITO provide
<or the construction of a canal connecting the
waters OF the Atlantic and Paclflc oceans lne
S-oneress provided follows:
That the President of the United States is
thereby authorized 10 acquire, for and on nehaII @
iof the United States. al cost not eNCSe~oll.s ~
FORTY millions Of dollars the rights, privileges
franchises concessions grants OF land' rlghl OF
way. unfinished work. plants and other properly;
.-sr,Z- ~ f~ranos on the Isthr7us of Panama and
;eeiI irs mans nlans drawings. records the
k1sthTnus Of Panama and in Paris. includlhs ali
the capital stock. not less however. uiaf siAlH
eight thousand eight hundred and siXty-three
shares Of the Panama Railroad Company. owned
by OF held for the Of said Canal COMPANY
provided q satisfactory title 10 el OF saiu PIoP
~rty can be obtained -,
d II therelpon became the duty OF the Presi-
is1ent. in execution of this statute; 70 Pp
the property specified from the New falldIis i
canal Company, Of France, provided ne couIt
obtain satisfactory title The Department OF
Justice instructed 10 examine the uue % aIl1
after such an examination Attorney General
Knox reported that satisfactory title could oe
obtained Payment Of the purchase price was
-t7e-elgr,or made 10 the New Panama Canal
S-oupanv. in accordance with the act OF IIle Coh-
,Eress and the property was conveyed by that
'cornpaDv TO the United States. II was no con
Germ OF the President or OF any oflcer OF Ihe
rexecutive department. 70 inquire as to what me
Kew Panama Canal Company did with the
i,ncney which il received. As matter OF IacI
i*he New Panama Canal Company did distribute
shareholders of the preceding Panama CanaI
rs~cu7pauv in accordance with the decree OF d
French court and the records Of the French
iVourt show who were the sharehoiders VINO re-
.eived the money; butiI Is no concern oI
5<urs. -;.
. 1 call your attention 10 the accompanying
5Statement as 70 the attempt TO form an Amerl-
can company in 1899 for the purpose OF taxing
over the property Of the French company 1HiS
;.rte,npt proyed abortiNe. There was no con-
icealnent in its effort 10 put through this plan;
SITS complete failure and abandonment being
The important points set forth in the accom-
panying papers, and in the papers 10 "hlch
have referred you, are as follows:
The investigation Of the history, phys
scal condsion and existing value Of the en-
5erprise by the Congress. resulting in the
enactment Of the law Of 19u2 authorizing Ife
President acquire the property for the sum
Of S4o600og0 upon securing q atisfactorE
title and thereupOn TO undertake the work OF
, construction. the failure of the Americaniza-
ton Of the enterprise in 1898; the TRANSMISSION
ny me 20 the Congress from time TO tlhle "I
<ilI information and advice to the relations
Of this government to transit across the 18TH
mus and under the treaties. to the negota-
1ions and final acquisition Of the title ana
later as - the progress ana cohdluoh OF Ile
work Of construction; the previous authorize
ton OF the sale TO the United states bE uie
stockholders OF the new company ana Ihei.
subsequent ratification: the examination ana
approval OF the title by MIR Knox: the ar
rsngements for payment through j 2 Morgan
& CO. as the fiscal agents Of this govern
Tnent. and the payment accordingly at the
Bank Of France upon proper official receipts
the liQuda1ors acting under the decree OF
the French court. the French governmental
body having Jurisdiction in the matter; and,
finally. the subsequent appOrtionment and dis
tribution OF the fund 10 the creditors and stock
holders Of the two companies under that decree.
The Panama Canal transaction was actually
carried through not hE either the then SeCre-
tary OF State NTr John Hay or the then Sec
retarL Of War. Mr.. Flihu Root both OF whom.
however we're coen1zanr Of al the essential
features: but by the then Attorney General.
Mr. P c. Knox. at present Senator from Penn
Evivania. ] directed approved every action.
responsible
carving out the viii Of the Congress. and the
provisions Of the law. enacted ny Congress after
exhaustive examination and discussion, were
scrupuiouslv complied with by the Executive.
Cromwell but two three times and my COM
-nunicstions with him limited 10 the
change or purely formal courtesies. Secretary
Eav occasionally saw him. in the same manner:
doubt whether Mr. Root held any conversation
with him. The Attorney General saw him fire.
gUently. he was counSe! for the Panama
COMPANY: their communications were official.
representing the two sides I inClOse copies
OF my correspondence with Mr William Dudley
stories TO my attention, and with Senator Knox
end MI Cromwell. 20 whom 7 wrote in
Fponse to the request Of a gentleman who wished
70 know about the stockholders in the Panama
Canal Company
THE NEW PANAMA COMPANY
The title 10 the Panama Canal properties was
vested in the New Panama Canal Company OF
France. which the legal owner thereof, and
the old so-called De Iesseps Company had
large equity therein The title not in a
New Jersey company nor in any other American
company. nor old this government have anv
dealings with any American company through
out the affair.
The exact legal status 10 the most minute de
tail. appears IN the exhaustive opinion of Attor-
given 10 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 iQuidatOr OF the old
American or