Honolulu Republican, Volume IV, Number 504, 23 January 1902 — CANAL COMPANY QUESTIONED BY COMMITTEEMEN [ARTICLE]

CANAL COMPANY QUESTIONED BY COMMITTEEMEN

Principals Declare the Panama Offer Came Direct From Paris. M. LJSMPRE PIKED OH HICK Admits Ditcb Ultimately Reverts to the Colombia! Government. Mortgage ;n the Property in the Form of Bonds is Declared Heavy —Morgan Charges Company With Acting in Bad Faith —Canal For Years on Bargain Counter. WASHINGTON. Jan. 11.—M. Ed •)aril I.ampre. representing the Pana- ' ma Canal Company, appeared before the Senate Committee on Interoceanic Canals to-day in obedience to the summons of that committee to testify concerning the offer of his company to sell Its property and franchise- to •hi- United States. M. Jules Bouefve of the French Embassy also was present at the heating. The meeting was held behind closed doors, repre sentatives of the press being excludI ed. 1 M. I-arapre said his mission to the United Stati s had been to ascertain to whom the proposition-for the sale of the Fanaina property should he made. Having informed himself upon 1 this point, he had conferred with Admiral Walk r. chairman cf the Isthmian Canal Commission, as to rlr ' form of the offer. He then had cabled to his principals, the result being that the offir to s 11 for |4o.rto-).ort« had been made directly from Paris :,ni not by him. He said, however ' that it was his understanding that the proposal included both tne fran ' chises and thi- property of the Pan ‘ ama company, but not the money in its treasury, of which there is about - oft,0(h),000 francs. M. I.ampre was questioned especially concerning the titl of the present Panama company, several mem |» r,- of the committee expressing doubt as to whether those now claiming ownership had secured unquestionable title. He replied that they had made their purchase through tne liquidator of the old company and f hat the transfer was regular. Senator Morgan asked wha- the corporation had been organized for. and the witness replied that the pur s>os. was to build a canal. The Senator then asked whethi r any attempt tc sell the canal was not a proceeding in bad faith. M. I-ampiv main taini-d that it was not. He also said that the American Panama Canal Company had been organized in New Jersey for the purpose of disposing 'of the property in this country if possible. “As a matter of fact." said Mor gan. “you appeal* to hav* had the canal on the bargain counter ever I since the company was organized.” Th* fact was developed at the hearing that the bonded indebtedness of the old company was dOO.i'OO.oOO francs, and also that sine* the new company had come into control it bad paid 12.000.000 francs to the ! Colombian Government for cone -s sions. It was also shown that the ' lease f .rm that Governm nt was for ninety-nine ;•«.:* and at the end of that time the property would revert ‘ to Colombia. M. Houcfre wa.- ask-d only wh th•er th- proposition to sell the «*:• aal t tor $4O.O'«).(KK* had been made with he authority of the French Govern |m« nt. He replied in th» negativi saying that that Govt rnmeat had no connection whatever wita the traie-a-tii n.