Mr. Vignaud to Mr. Hay.
Paris, May 2, 1904.
(Mr. Vignaud sends text of letters and substance of contract exchanged to-day by Messrs. Day and Russell.
Paris, April 28.
Mr. J. P. Morgan, Hotel Bristol, Paris.
Dear Sir: As representatives of the Government of the United States, having full power so to do, we have the honor to say that the Government desires to, and does hereby, appoint your firm, J. P. Morgan & Co., its agents, to see to and to effect the transfer and payment by the United States at the Bank of France, Paris, of the $40,000,000, constituting the price of the New Panama Canal Company’s property.
Upon delivery of the property by the latter company to the representatives of the United States, the Government will place such $40,000,000 with your firm as such agents, to be transferred and paid to the company, or upon its order to the liquidator of the old Panama Canal Company, at the Bank of France, in gold coin, or such other form as may be agreed upon between your firm and the company, as speedily as may be convenient.
It is understood that your firm will see to, and pay for, insurance, and take all other reasonable precautionary measures, and that it will charge the United States nothing, and pay no interest, and shall not be accountable for any profits made under agreements it may make with third parties. Please signify your acceptance.
Morgan’s answer addressed to us bearing same date:
We beg leave to acknowledge the receipt of your valued favor of this date, addressed to our senior, in behalf of the United States, and constituting us as fiscal agents of the United States for the purpose of and with the powers mentioned in your said communication. We accept said appointment, under the terms and powers indicated, and hereby express our complete accord with the understanding you state. We are, dear sirs,
Very truly, yours,