The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1892-12-30
GREAT PANAMA SCANDAL.
Two Million Dollars Expended
in Briblng Americans.
WHAT BECAME OF THIS SUM.
A Corruption Fund Of Tremendous
Proportions.
DeLesseps' Visit to the United states Sew
eral Years Ago and What BE Accom-
piished in the Way of Further.
ing His Scheme.


NEW YORK, Dec. 29.-In a three col
umn article this morning the World
alleges that the Panama canal corruption
lists and thieves expended over g, GOO, GOO
IN orlolng American legislators. In brief,
the article says: ''There is an American
end to the Panama scandal. Two million
tive hundred thousand dollars was sent to
this country and no explanation has been
given OF what use was necessary or made
OF this vast sum. Bribery and corruption
were practised in the United States lust as
tiagrantly, though less in extent and in the
amount of money used. French specu-
iators obtained their rights from the
United States OF Colombia and purchased
the services of Ferdinand De Lesseps to
give their scheme eclat. The farce of the
canal congress- which met at Paris, May
10, 1879, was enacted, and in the face of
intelligent opposition packed the commit
tee on the selection of location, who chose
| he Panama route from sea to sea.
''Soon after the canal congress- dis
solved General e. A. Burnside, from
Rhode Island, introduced a resolution
on the subject in Congress. 1t
read: THAT the United States
views with serious disquietude any
attempt by European powers to es-
Jablish under their protection and domi-
nation snip canal across the Isthmus OF
Panama. General Burnside, in private
| conversation with friends, indicated that
he ioresaw an attempt would be made to
influence Congress, and he, as stated, in
troduced this antl-canal notice with the
intention of anticipating any work its
promoters might attempt at Washing
ton"
The article then reviewed the history of
the canal, with President Hayes message
declaring the canal should be built only
with the United States preponderating in
influence. De Lesseps and other French
men were then here. 1t was a staggerer
for them, but De Lesseps cabled his son
Charles to give the Paris newspapers
| statement that this message assured po-
lltical surety to the canal. To confirm
this idea in France, he had an American
committee appointed to look after the
neutrality question in connection with
the canal and to make Americans feel that
| their interests were being served.
| The American committee was not dis
posed to work for nothing, and De Les
seps agreed to make, when the company
was organized, six annual payments to
this American committee. The first was
3, 100, 600 francs; the year following 1 AGO.
0Oo francs, and subsequent payments of
Is 800, GOO francs year Tor five years.
| Thus was about g, sec, Goo provided by
the head of the Panama canal scheme to
influence the people of the United States
and their government. Here was a cor
ruption fund capable of accomplishing
great results. The organization of the
committee was negatived by New York
| bankers.
| The purpose was TO secure for chairman
distinguished American whose name
would inspire confidence and lend lustre
to the Panama project. The first chair
man suggested was General U. s. Grant.
! The position was rendered the distin-
guished citizen through the banking
house OF G. w. Seligman & Co., the an
nuaI compensation offered being $50, COO,
and the general was assured the duties
would be light. General Grant saw
through the Intentions of the committee
and declined.
Continuing the article says certain pub
/ lie officials in the American committee
received $4,000 year for their services,
and the corruption which followed the
organization of the American committee
and the income of the hard learned money
of the French subscribers to the canal
company is still fondly remembered at
! Washington by those who received some
| of the Doodle. certain newspaper in
| New York received q liberal subsidy to
favor the canal; two congressman were
| bribed; individuals who possessed infu-
enee were bribed and the money OF the
French peasantry ran like water at the
national capital.
An article in the Financial NetuS, Lon
don, described the situation as follows:
ssThe American syndicate is one OF the
most shameful corruption funds ever
recorded in the history of financial enter
prises. Imagine the expenditure Of
0ACO mn = Ae,rrv -
| might represent the company in America
and cooperate with it when requested.
To that fund is due the success which at
| tended De Lesseps to the then secretary OF
the navy of the United States to accept
the presidency of the syndicate, and no
respectable bankers should ever have
participated in that costly fraud upon the
shareholders of the Panama Canal COM
pany.
"tThese men are challenged to show that
they ever did anything for the company
Iexcep5 to lend their names so that in Eu-
lrope De Lesseps might say: America is
lali right The attitude Of Congress was
decidedly unfriendly when the COMMITTEES
was formed and the press then were quite
generally adverse to the canal under
French control. A change soon occur
red.
.tWhen De Lesseps returned to France
The announced that the United States ia
vored his project. He claimed he had re-
futed all scientific objections to the Pan
ANA plan and that Americans have now
recognized that the work to be undertaken
has no political bearing and is particu-
Iarlv for their own benefit And Count
DE lessons naively added, the "fun CO.
operation of great and powerful Ameri-
can banking houses shows the results OF
nv trip to the United States"
u.Nr rPDFRATyoE