Los Angeles herald., 1892-12-30
4 SCANDAL Of TWO CONTINENTS
Panama Canal Doodle Dis
pensed in America.
Over $2,OOO,00O Spent in Bribing
American Legislators.
How erdinand de Lesseps Overcame
Opposition to the Canal Scheme
In This Country-startliDg
Revelations.
Bv the Associated Press.

umn artlCle Cnl6 morning Luo WoIlu hi-
leges that the Panama canal corruption
lists and thieves expended over $4,000
600 in bribing American Legislators. In
brief. the article says:
'There's an American end to the Pan
anna scandal; $2,5O0,00O was sent TO
this country and no explanation
has been given of what use was neces-
sary or made of this vast sum. The
bribery and corruption practiced in the
United States is just az fragrant, al
though less in extent and in the amount
of money used. French spectators OBJ
tanned their rights from the United
States of Colombia and purchased the
services of Fei eidinand de Leseeps to give
their scheme eclat. The farce OF the
sscanal congress" which met at Paris
May 10, 1879, was enacted, and in the
face OF intelligent opposition the packed
committee on selection of location
chose the Panama route from sea to sea.
Soon after the ''Paris canal congress"
dissolved, Gen. A. Z. Burnside, senator
for Rhode Island, introduced a reeolu-
ton on the subject in congress. 1t
read: "Resolved, That the United States
views with serious diequietude any at
tempt by powers of Europe to establish
under their protection and domination
q ship canal across the isthmus of Pam
anna" General Burnside in private
conversation with friends indicated that
he foresaw that an attempt would be
made to influence congress, and he
stated he introduced his anti-canal
notice with the intention of anticipat-
ing any work its promoters might at
tempt at Washington.
The article then reviews the history
OF the canal, with President Hayes
message declaring the canal could be
built only with the United States pre-
ponderating in influence. Dc Lesseps
and other Frenchmen we're then here.
1t was staggerer for them, but De Les
seps cabled his son Charles to give to
Che Paris newspapers a statement
thst this message assured the
political security of the canal.
To confirm this idea in France,
he had an American committee ap-
pointed to look after the neutrality
question in connection with the canal,
and to make the Americans feel their
interests were being served. The
American committee was not disposed
to work for nothing and De Lesseps
agreed to make, when the company or
ganixed, six annual payments to this
committee. The first was 100 600
francs; the year following, 1,400, 900
francs; and subsequent payments of
1900, 900 francs q year for five years.
This was about 50, SOC. 900 provided by
the head of the Panama canal scheme
to influence the people of the United
States and their government.
Here was corruption fund capable of
accomplishing great results. The or
ganization of the committee was nego-
.tiated by New York bankers. Che pur-
pose was to secure for chairman dis
tinguished American, whose name
would inspire confidence and lend
lustre to the Panama project. The first
chairman suggested was Gen. U. s..
Grant. The position was rendered the
distinguished citizen through the bank
ing house Of E. W. Seligman & Co., the
annual compensation offered being
$25, 900, and the general was assured
that the duties would be light. Gem
eral Grant saw through the intentions
of the committee and declined.
Continuing, the article says certain
public officials in the American commit
tee received $26, 600 a year for their SER
vices. The corruption which followed
the organisation of the American COM
mittee, and the income of the bards
earned money of the French Subscribers
to the canal company, are still fondly
RENE mbered at Washington by those
who received some of the Doodle. A
certain newspaper in New York received
liberal subsidy to favor the canal.
Two congressman were bribed; indi-
viduals who possessed Influence were
bribed and the money of the French
peasantry ran like water at the national
capital.
An article in the Financial News of
London described the situation as fol-
lows The American syndicate has
shared one of the most shameful corrup-
tion funds ever recorded in the history
of financial enterprises. Imagine the
expenditure of $4S0, 900 60 that few
men in New York might represent the
company in America and cooperate
with it when requested. To that fund
is due the success which attended De
Lesseps' invitation 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 share
holders of the Panama Canal company.
These men are challenged to show they
ever did anything for the company, ex-
cept to lend their names so that in
Europe De Lesseps mightgsay: "Amer-
lea is all right" The attitude of con-
gress was decidedly unfriendly when the
committee was formed. and the press
was quite generally then adverse to the
canal under French control. A change
soon occurred. When QesLesseps re-
turned to France, he announced that
the United States favored his project.
He claimed that he had refuted all
scientific objections to the Panama
plan, and that "the Americans have
now recognised that the work to be
undertaken has no political bearing, and
is particularly for their own benefit -
and Count de Lesseps naively added
ssThe full cooperation OF the great
and powerful American banking houses
shows the results of my trip to the
United Etates."
Horrible Uxoricide.
Dies MONIES, Ia, Dec. 29.-Peter Sut-
ter, aged 30, murdered his wife Teresa,