But, despite the rejection of the New Panama Canal Co.'s offer by the House, President Roosevelt again called the members of the Isthmian Canal Commission together to the White House, on the afternoon of January 16, and asked them to make a supplementary report in view of the offer in question. The commission met immediately and, on January 18, 1902, decided on the motion of Mr. Cromwell's friend, George S. Morison, that taking into consideration the changed conditions brought about by the offer of the company, the Panama route was preferable. There was a decided difference of opinion among the members and Prof. Haupt, Senator Pasco and two others were reluctant to abandon Nicaragua. President Roosevelt had made it quite clear to Admiral Walker that he expected the acceptance of the Panama Canal Co.'s offer. Noble and Pasco had given in, but Prof. Haupt stood out, and it was only when Admiral Walker had called Prof. Haupt out of the committee room and pleaded with him to sign the report, stating that the President demanded a unanimous report, that Haupt consented to put his name to it, and he stipulated his reasons in the minutes of the commission. Mr. HARRISON. Are you quoting now from the brief? Mr. HALL. No, sir. I am quoting from a statement made by Prof. Haupt. Mr. KENDALL. From what? Mr. HALL. From a statement made by Prof. Haupt. Mr. KENDALL. Are those minutes with Prof. Haupt's reservation printed in some place. Mr. HALL. I don't know, sir. But the original minutes of the Walker Commission must be in existence. Mr. KENDALL. That report has been returned of course? Mr. HALL. I do not know at all. I suppose the minutes are in existence in the State Department, but I have not been able to get them. I do not know that they have even been printed as a public docu ment. Mr. KENDALL. I understand you to say that Prof. Haupt made a statement there that Admiral Walker called him out of the committee room and told him that the President insisted upon a unanimous vote of the committee? Mr. HALL. Yes, sir; that was my statement. Mr. KENDALL. Where did you get that? I do not mean that offensively. I want to know where the document is that support your statement. Mr. HALL. The statement is on the authority of Prof. Haupt himself, who made it direct to a staff correspondent of The World. A BYSTANDER. Mr. Haupt published that statement in an article in one of the magazines after this whole thing was closed, over his own signature. Mr. HALL. I think Prof. Haupt is on record as to that. His reasons for signing the supplementary report and which he says are inserted at his request in the minutes of the Walker Commission, are printed, if my memory serves me right, in his article in the North American Review of July, 1902. Mr. GOODWIN. It is a valuable part of the record. Mr. KENDALL. I think it ought to be in the record. I think it is advisable to have the record rather than an abstract. Mr. HALL. Oh, undoubtedly. I will get a copy of the statement and put it in the record. The supplementary report of the Walker Commission, signed by all the members, was transmitted to Congress by President Roosevelt on January 20, 1901. Minister Silva having cabled his government the offer of the Panama Co. to sell to the United States for $40,000,000, it was decided at Bogota to send another minister, Dr. Jose Vicente Concha, to complete the negotiations. No reason for this change appears in the Colombian diplomatic correspondence, excepting Minister Silva's complaint that he lacked definite instructions and his statement that if his government did not repose sufficient confidence in him, he was entirely willing to resign. Dr. Silva was accused by his government of having exceeded his powers in authorizing the negotiations between the canal company and the United States. His successor, Dr. Concha, was a much different type of man and diplomat. In his official instructions, issued on January 22, 1902, Minister Concha was enjoined to obtain the final adoption of the Isthmus of Panama for the opening of the interoceanic canal on the best terms for Colombia, without affecting the integrity of its territory or its national sovereignty. He was also authorized to confer with the Washington diplomatic corps to obtain an international control of the Panama Canal and a guarantee of its neutrality by all the powers. Concha's instructions further read: If you obtain this international arrangement, you will proceed to denounce the treaty of 1846 with the United States. Concha's supplemental instructions, issued in Bogota January 27, 1902, required his exacting no less than $20,000,000 from the New Panama Canal Co. for Colombia's permission to transfer its concèssion for the following reasons: 1. Because Colombia's consent is essential, as without its consent the transfer would be void; and if made without its consent, the French company, in penalty, would lose its rights; 2. Because Colombia, by consenting to the transfer of the concession, would lose its expectation of acquiring the Panama Railroad at the expiration of the concession. This railroad was bought by the canal company for 93.000.000 francs ($18,600,000), and on the opening of the canal that would be lost; and 3. Because in the new contract it is proposed that Colombia should renounce the participation it is now entitled to in the future earnings of the canal, which may amount to $1,000,000 a year. This was the situation when Mr. Cromwell, through the intervention of Senator Hanna and others, was reinstated as general counsel on January 27, 1902, and resumed his lobbying in Washington. The news of his reinstatement was conveyed to Mr. Cromwell by Phillipe Bunau-Varilla, who was then in Washington with the following telegram: WASHINGTON, January 27, 1992-10.20 a. m. CROMWELL (care Sullivan & Cromwell), 49 Wall Street, New York City. Your affair was settled this morning. Paris, according to my recommendation. which I had to renew yesterday with great force. Felicitations. RUNAU-VARILLA. To which Mr. Cromwell replied: PHILLIPE BUNAU-VARILLA, New Willard, Washington, D. C. NEW YORK, January 27, 1902. Many thanks for your kind message; when will confirmation be received by me? I return from Washington Friday filled with deep concern. Not an hour is to be lost, and I will prepare to act at once. Expect important movement in our favor this morning and will give you details. WM. NELSON CROMWELL. Mr. Cromwell's acceptance of the mission thus again intrusted to him and the cables of the company, as well as the acknowledgment of his acceptance, was confirmed by the following letter from the company: No. S. 3759.] PARIS, January 31, 1902. SIR: We have the honor to confirm the telegrams here below, one of which was sent to you direct, whereas the other, fuller and more explicit, was to be handed to you by Mr. Lampre, secretary general of our company: "JANUARY 29, 1902. "You will receive through Lampre, after translation, telegram reinstating you as general counsel of Compagnie Nouvelle and containing instructions.” "JANUARY 27, 1902. "You to be reinstated in your position as general counsel of Compagnie Nouvelle de Panama, rely on your cooperation to conclude matter sale of property; you better than anyone can show title Compagnie Nouvelle de Panama to property and incontestable right she has to sell them. But we require most expressly that no donations be made now or later, nor promises be made, to anyone whomsoever, which might find the Compagnie Nouvelle de Panama. We are convinced you share our sentiments on this point, but we wish it to be well understood between us. It is also understood that the settlement of former accounts and remuneration your future services will be determined sovereignly by the board of directors of Compagnie Nouvelle de Panama, and that no expenditure whatsoever is to be incurred without consent board directors of Compagnie Nouvelle de Panama.. Finally, it must be understood that you are to follow instructions of authorized agents of board of directors whoever they be. "As we say to you in these telegrams, we again intrust you with the functions of general counsel of the company in the United States. We rely on your hearty cooperation to bring to a successful issue, as promptly as possible, the offer we have made to the Government of the United States to cede to it, for the price of $40,000,000, the totality of our rights, property, and assets of whatever kind on the Isthmus of Panama, as well as the archives and plans in Paris. This offer, as you know, has recently been favorably reported on by the Isthmian Commission. The Panama route presents, as a matter of fact, in the eyes of every competent and impartial judge. inappreciable advantages over any other route. Therefore its opponents seem to focus their attacks (efforts) particularly on the legal question by trying to cast doubts on the validity and extent of the full and absolute title of ownership to the property which we offer to transfer to the buyer. "Better than anyone you are in a position to defeat this maneuver. Your perfect knowledge of the position of La Compagnie Nouvelle, since its formation, of the unreserved and unrestricted titles it received from the liquidator of the old company, himself acting by virtue of undeniable authority, will permit you easily to dispel every doubt and ally every fear, if really any serious doubts or fears are possible. If needs be, you will find us read to aid you in this task by sending you any records or documents, or by obtaining, with the least possible delay, from a general meeting of shareholders, any special powers of resolutions which may be deemed necessary. "Finally, we rely that you will know how to utilize your numerous connections and your legitimate influence to bring about the recognition of the superiority of the Panama Canal by all the prominent men whose intervention may be of use to you and who might still hold out against the proof-so complete and so convincing-set forth in the various reports of the Isthmian Commission. "But it must be clearly understood, and on this point we shall surely be in accord with you, that this result must be sought only by the most legitimate means; that is to say, that in no case could we recourse to methods as dangerous as they are unlawful which consist principally in gifts or promises, of whatsoever nature they may be, and that the reserve must scrupulously be observed by every person acting for us or in our name. "We also think that we are meeting your views in expressing the desire that you should leave to the board the settlement of all questions of remuneration, referring either to the past or to the future. The board, you may be sure, will know how to recognize in an equitable manner the services you will have rendered it. "It appears to us superfluous to mention that in all your moves you must be guided by the instructions we have given to our agents in Washington and, should occasion arise, confer with them. "We congratulate ourselves, sir, on the new connections which are to be established between you and the company, and in the hope that they may contribute to the success of our efforts, we beg you to accept the expression of our highest regard. "THE PRESIDENT OF THE BOARD OF DIRECTORS, “M. Bo.” Mr. HARRISON. From whom to, Mr. Cromwell? Mr. HALL. From Mr. Marius Bo, the president of the board of directors of the New Panama Canal Co. Mr. HARRISON. What date? Mr. HALL. January 31, 1902. P. S.-We beg to acknowledge receipt of your telegram received to-day, which we have translated as follows: "I acknowledge receipt of your cable of 27th reinstating me as counsel of the company, as well as of your other cable communicating to me by Secretary Lampre. I am happy to renew our former connections immediately, and in accordance with the general terms of your cablegrams I have drawn up a general plan of campaign; seeing that no agreement has yet been reached between Colombia and United States, and in view of the erroneous interpretation of our titles, I have inspired a new bill, adopting our project and leaving to the decision of the President all questions relating to titles and to the new treaty to be concluded with Colombia, with discretionary power to choose the other route, if the President is not successful in obtaining a satisfactory title and treaty for our route. I am working to have this bill passed in both houses. My next step will be to obtain from Colombia definite and satisfactory conditions for the treaty with our Government; in the contrary event the whole matter will be jeopardized, and the Senate would probably follow the House in favoring the other route. This capital question has brought Silva to understand the situation and to have conferences with the most important personages." Mr. Cromwell had been keeping busy all the time he was officially disconnected with the canal company's affairs. On the very day Mr. Cromwell received notice of his reinstatement, Senator Scott, of West Virginia, introduced a joint resolution to appropriate $15,000 and create a special board to investigate the practicability of the Darien Canal route. Whether it was intended as an aid to Mr. Cromwell or was not, the Scott resolution served to divert attention from Nicaragua, and on the very next day, January 28, 1902, Mr. Spooner, of Wisconsin, submitted an amendment intended to be proposed by him to the Nicaragua bill, which had passed the House, and it was ordered printed. This amendment, substituting the Panama for the Nicaragua route, was the basis of the Spooner law under which the Panama Canal is being built. Senator Spooner protested in the Senate June 12, 1902, that he not only wrote the amendment that bore his name, but devised it. Nevertheless, in a telegram which reached the French Canal Co. on January 31, 1902, Mr. Cromwell said: I have formulated a general plan of campaign. 串 I have inspired a new bill which adopts our project and which sends to the President for decision all questions relative to titles and to the new treaty to be concluded with Columbia. * * I am working to have this bill passed by the two Chambers. My next step will be to obtain from Colombia precise and satisfactory conditions for the treaty with our Government. In his brief Mr. Cromwell says: At the time when the company had shown, in the preceding spring, its willingness to sell to the United States under certain conditions, we had planned with this end in view, the introduction of a bill in Congress authorzing the building of the Panama Canal by the United States. This bill had been the subject of conferences between us and several eminent statesmen. So, at this critical moment we reverted this idea and had long conferences with Senator Hanna and Senator Spoonor, whom we urged to act in this direction, and these conferences resulted in Senator Spooner preparing and introducing in the Senate a bill for the adoption of the Panama route project and the acquisition of the properties of the Panama Canal Co. for $40,000,000 on the following conditions: (1) That the President should obtain, within a reasonable time, a satisfactory title to all the properties of the company; and (2) that he should obtain, by treaty from the Republic of Colombia, the enjoyment of the necessary right and authority; and that if he did not succeed he should adopt the Nicaragua Canal and obtain, by treaty with Nicaragua and Costa Rica, the territory and rights necessary to its construction. Mr. Cromwell now set about to prevent the Nicaragua bills, which had been passed by the House a few days previously, from being immediately and favorably reported to the Senate, as Senator Morgan, who had a majority in his committee, was going to do, to bring about a treaty between the United States and Colombia and to procure that the consent of Colombia to a cession by the company be included in this treaty. To obtain the acceptance by Congress of the company's offer and render this offer binding by the ratification of its shareholders, which was essential. Senator Morgan had brought before his committee much evidence to show that the commission had been illogical in its reports, and that one of its members (Prof. Haupt) had, so to speak, been compelled to sign the report. Mr. Cromwell thereupon determined to widen the committee's field of inquiry in order to embrace the subject of Panama. He persuaded Senator Hanna and other members of the commiitee to make no report until they had heard all the members of the commission in support of their last report, the hearing of which evidence would directly bring out the advantages of the Panama project and the reaffirmation of the recommendations they had made in favor of the company's offer. Senator Hanna insisted on this course being followed, and all the members of the commission were summoned before the committee by Senator Hanna and testified at length. Mr. Cromwell, who had conferred with the members of the commission and informed himself in detail as to their individual opinions, prepared for the use of Senator Hanna and his colleague, Šenator Kittredge, a series of questions to bring out facts favorable to Panama during the deposition of each of the members of the commission. This procedure also served to gain time to obtain the |