The record-union. [volume] (Sacramento, Calif.) 1891-1903, 1892-12-30

tlon OF the SubSlGy.
Special TO the REcoRD-UN1ox.
New YORK, Dec. 29.-In a three-coI-
umn article this morning the World
alleges that the Panama Canal corrup-
tionists and thieves expended over
S2,OC0,000 in bribing American Legisla-
lures. In briet, the article says:
There is an American end to the Pam
| anna scandal. Two million five hundred
thousand dollars We're sent to this coun-
try, and no explanation has been given
OF what use was necessary or made of
this vast sum. The bribery and cOrrup-
ton practiced in the United States were
just as tlaGrant, although less in extent
and in the amount Of money used.
Frances spectators 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 on May 10, 1879, was enacted, and
in face Of an intelligent opposition a
packed committee was selected on the
selection Of a location Of the Panama
route from sea to sea. Soon after the
Paris Canal Congress dissolved, General
A. +. Burnside, Senator from Rhode Is
| land, introduced a resolution on the sub
| ject IN Congress. 1t read:
That the United States view with
serious disquietude any attempt by the
| Powers Of Europe to establish, under
| their protection and domination, a ship
canal across the Isthmus Of Panama"
General Burnside, in private conver-
! satiOn with friends, indicated that he fore
saw that an attempt would be made to in
| huence Congress, and he has stated that
| ne introduced the anti-canal notice with
the intention Of anticipating any work
| its promoters might attempt at Washing
ton.
The article then reviews the history of
the canal, with President Hayes message
declaring that the canal be built only with
Cnited States as a preponderng intiu-
ence. De Lesseps and other FTenchmen
were then here. 1t was a staggerer tor
them, but De Lesseps called his son
Charles to give the Paris newspapers the
statement that this message assured the
political security OF the canal. 10 con-
frm this idea in France, he had an Ameri-
can committee appointed to look after the
neutrality question in connection with
| the canal. 10 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
organized, six annual payments To this
American committee. The first was d.
OOO,0OO francs, the year following !, 100000
francs, and subsequent payments of /,
200 francs year for hVe years. Thus
was about S2, 100000 provided by the head
of the Panama Canal scheme to influence
the people of the United States and their
Government. Here was a corruption
fund capable of accomplishing a great
result
The organization Of the committee was
negotiated by New York bankers. The
purpose was to secure for Chairman a
Distinguished American whose name
would inspire confidence and lend luster
to the Panama project.
The first Chairman suggested was Cen
eral 4. 5. Grant. The position was ten
dered the distinguished citizen through
the banking house Of q. w. Seligman q
Co. The annual compensation offered
was $1,000, and the General was assured
! that the duties would be light. General
! Grant was able to see through the iuten-
1 tions Of the committee and declined. The
| corruption which followed the organiza-
/ ton OF the American Committee and the
/ income Of hard-earned money Of French
subscribers TO the canal company are
/ still iondly remembered at Washington
/ by some of those who received some of
/ the Doodle. "A certain newspaper in New
! York received a liberal subsidy to favor
| the canal. Two congressman were
1 bribed, individuals who possessed infiu-
/ ence were bribed and the money OF the
/ French peasantry ran like water at tho
| National Capital.
Continuing, the article says that certain
| public officials in the American Commit
tee received 81, 900 year for their servi-
ces.
An article in the Financial Neirs Of
/ London described the situation as fol-
| lows:
| ''rhe American syndicate is one of the
most shameful corruption funds ever re-
/ corded in the history OF financial enter
prise. Imagine the expenditure of $780,
900 50 that a few men in New \ ork might
represent the conn any in America and
cooperate with it when requested. To
that fund is due the rebuff which attended
/ lie Lesscps' invitation to the then Secre-
tary 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 on
the shareholders Of the Panama Canal
Company. These mon are challenged to
/ show that they ever did anything tor the
/ company except lend their names, so that
| in Europe De Lesseps might say, Amer
4 lea is all right "
I The attitude Of Congress was decidedly
| untriendly when the committee was
I formed, and the press was quite generally
/ then adverse 10 the canal being under
/ French control. A change soon occurred.
/ When De Lesseps returned TO France he
announced that the / Dited States favored
\ the project. lie claimed that he had re-
/ fCted all scientific objections to the Pam
/ anna plan, and that Americans have now
recognized thas the work to be under
taken has no political bearing, and is par
ticularly for their own benefit" and
Count Dc Lesseps naively added, 'the
full cooperation OF great and powerful
American banking houses shows the re-
2 Grnl ft IN = 10 tn N