The sun. [volume] (New York [N.Y.]) 1833-1916, 1892-12-31
Are Americans Implicated In tho Pana.
ma Frauds?

It can DO only a question OF short time
when the investigating committee OF the
French Chamber OF Deputies, or the magis-
trates engaged In examining the acts OF
the directors OF the Panama Company. VIII
sharply scrutinize curious item In the &C.
counts submitted by the ofllclal liquidator
OF the bankrupt corporation. We reier TO
the item OF several millions OF dollars
charged to the so-called American Board, o
body made up Of citizens OF the United
States. ostensibly chosen for their sup
posed ability to promote the interests OF
the canal company.
The large sum OF money debited to the
American Bonrd has nothing to do with the
payments made to o firm OF American con-
tractors who constructed v section OF tho
Panama Canal. All the figures relating 10
that transaction are set forth In detail IN
the lquldator's report. Entirely distinct,
also, Is another transaction, the purchase
OF n controlling interest in the Panama
Railroad at a price nearly three times
greater than its market value. The Ques-
ton whether directors Of tho company
proflted as individuals by this remarkable
piece OF fina nciering Is likely to become the
subject Of a separate Inquiry.
These matters, wo repeat. although
highly interesting in themselves. must not
be con,ounded With the disbursement VI
several millions OF dollars by or on account
OF the so.called American Board OF Direct
ors. With regard to this disbursement the
official liQuidator has not yet been able to
produce q single voucher or explanation.
with the exception OF tho payment OF $780,
600 year to X. W. THOMPSON. Secretary OF
the Navy in the HAYES Administration.
who was made President OF the American
branch Of the Panama Canal Company.
Col. THOMPSON says. it seems. that no
money was spent for the purpose OF pro-
curing from Congress Legislation favorable
to the canal company. as no such legisla.
ton was needed. What we would like to
hear Col. THOMPSON say lie. whether any
money was spent to avert legislation UNI
favorable to the company. The resolutions
reported by o committee OF the House Of
Representatives in the session OF 80, to
the effect that the right OF the United
States to possess and control the Panama
Canal. by whomsoever constructed. should
be guaranteed would. had they been passed,
instantly have put stop to French sub
scriptions in the Panama securities and
would have saved hundreds OF thousands
Of poor investors from tho loss Of their hard
earned savings through extravaganza and
fraud Why were not those resolutions
passed: and II their failure to pass at once is
applicable OH technical grounds, why was
not the matter resumed and passed at the
next session?
Whether Col. THoMpsoN can answer this
question or not. he surely. as President Of
the American Board can throw some light
upon the ways in which the large sums
credited to the Board we're expended. Will
he pronounce false the statement which
appears on the books Of the company. that
several millions OF dollars were disbursed
by the Board over which he presided? II
the statement is true. was there not a
record kept Of the disbursements? II not.
why not? II there was record. Col.
THOMPSON in his official capacity must
know where it is. Any Information on
that point would just now be extremely
welcome to the French magistrates and the
investigating committee OF the Chamber OF
Deputies.
By communicating such information Col.
THOMPSON can at last do something toward
earning the magnificent salary Of $4,000.
which he consented to receive from the
funds contributed by poor and simple
minded Frenchmen to the most fraudulent
enterprise OF the nineteenth century.