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"Of course, you understand that we will not accept any requests from the proposed New Government, unless they are backed up by military force. But I advise you of this fully in case there may be interruption of communication between Panama and Colon.

(* Memorandum” cited in above letter.)

PANAMA RAILROAD COMPANY.

Monday, November 2, 1903.

Dear Mr. Prescott:---

Have just wired you that Nashville has been sighted. This, I presume settles the question. I have to suggest that New Government should address a communication to the Gen'l Supt., stating the facts that may have transpired up to the time when

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they may want to make any requests of ns. They should state the facts as to their assumption of authority of Government. They should give assurance that they will render absolute protection to the R. R. in its properties and its rights, the same

as secured to R. R. ('o, by contracts 1850 and 1867, Article 30, and elsewhere with Bogota Government. In consiilerat on of this action on part of Government, they will expect the R. R. Co. to comply with the provisions of Art. 19, and to furnish promptly all cars necessary for complying with the provisions of said article (19), to the new Government. They must notify the R. R. Co., that the new Government (hy whatever its name may be) has the military force necessary to enforce their requests, and it will be used for this purpose. And that such military force will be kept in readiness for service at all times. Government should uotify R. R. ('0. that they shall expect R. R. Co. to operate their trains regularly, and the Government will see to it that such movement of trains shall not be interfered with by other parties, or forces.

This is in a general way. See my letter even date accompanying this.

J. R. SHALER.

The junta replied to this as follows:--

" Panama, November 3, 1903.

To Superintendent of the Railroad ('ompany;

Colon.

We have to inform you that to-day at 6 p. m., a popular meeting took place in this city, by which the independence of the Department has been declared, and which will be called in the future the Republic of the Isthmus.

There has been named a junta of the provisional government composed of Señores José Augustin Arango, Federico Boyd and Tomas Arias, who in their official character communicate to you what has occurred, and likewise to inform you that as the 'Government de facto,' they are disposed to comply with all the obligations contained in the contracts made between the Republic of Colombia and the Railroad Company in

PENNSYLVANIA HOTEL.

EMPIRE, CANAL ZONE.

A. ROME, Proprietor,

ONLY HOTEL in Empire where TRAVELERS CAN OBTAIN STRICTLY FIRST-CLASS ACCOMMODATIONS. WITHIN EASY DISTANCE OF CANAL HEADQUARTERS, THE GREAT

CULEBRA (UT, AND OTHER POINTS OF INTEREST. Convenient to Panama Railroad Station. Rooms Large, Neat, Cool and Well Ventilated.

BATHS AND ALL MODERN SANITARY EQUIPMENT.

TRARII

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ONLY BOWLING ALLETS FOR PUBLIC USE IN THE ZONE.

PRICES REASONABLE.

1850 and 1867. In consequence we hope that you on your part will comply with Article 19, and other analogous points in the same contracts.

We have also to inform you that the new Government, in addition to the prestige with which it has been invested by all the citizens, has the military power sufficient for the protection of the property of the Railroad Company at any time that you may find it necessary to call upon us. We hope that the traffic between this city and the city of Colon will be maintained without any change, as in normal times, and the Government which we represent will in no case permit outside interference that will interrupt the traffic or the regularity of the trains.

We are,

Your obedient servants,

J. A. ARANGO,

FEDERICO Boyd,

TOMAS ARIAS."

Flag of the Republic Hoisted.

“ Yesterday morning, November 6th, at ten o'clock, the very interesting ceremony of hoisting the flag of the new Republic was performed at the Prefecture,” says the Colon Starlet of November 7th.

“All the foreign representatives, heads of the Panama Railroad, several officers of the United States forces, merchants, and a large number of other persons, both Colombians and foreigners were present to witness the exercises.”

“Before the flag was hoisted Señor Ocaña, VicePresident of the last Colombian Municipal Council, read a resolution which was passed at a meeting of the board on Thursday, signifying the adhesion of Colon to the Republic of Panama. Señor Melendez then addressed the meeting stating that the object that had brought them all together was of so transcendental a nature that no comment necessary. He then proceeded to read a printed speech addressed to the Isthmian Colonials and citizens respectively. The address closed with shouts of Viva el Isthmo, Viva la República de Panama.'. After this the new flag was brought out to be hoisted. The honor of performing this act was conferred on

was

MAJOR BLACK, OF THE UNITED STATES ARAIY.
As the new flag was run up for the first time

under a clear sky and Hung its folds to the breeze, the police force which had been drawn mp outside in the street, saluted, it, while shouts of : Viva, la República' were raised."

Just a Little Too Late.

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Panama Star & Herald:- Gen. Pompilio Gutierrez arrived at Colon on the 5th on the French steamer Canada. He had been nominated Governor of the Department of Panana and came to take charge of the position, accompanied by a large staff of officers. He was met by the

Monry
Columbian

Just a Little Too Late.

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hen agents of the revolutionary junta and shown that it was sailed and impossible for him to take any action, as the independence of Panama had become an assured fact. When offered the command of the battalion "Tiradores, as its superior

2 officer, he refused and stayed on board the steamer, ret turning with his staff to Colombia. It was ramored here that the revolutionary agents were fighting with a weapon of more potential force than the most modern arms, and that Gen. Gutierrez went away convinced of the uselessness of making any effort against them.

Star & Herald of November 19th:-Yesterday the French steamer Canada arrived at Colon with the Colombian commissioners on board, and with Gen. Reyes at their head. They were en route for the United States. A conference was held on board without results.

Gen. Reyes, who had been delegated full presidential powers to represent the Government of Colombia, asked Admiral Coghlan, the commander of the American naval forces on the Isthmus, to cable President Roosevelt that Colombia would not resort to any act of hostility towards the new Republic of Panama. In the evening the commissioners took a ride about Colon in company with the Panama Government delegation that had come over to meet them. They sailed for the States the next day.

How the News was Received at Bogotá.

Bogota is one of the most isolated cities in all South America, and it was not until the 8th of the month that the news of the secession reached there. The information was augmented by the report that the American fleet was

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