The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1893-02-16
TRUST INVESTIGATIONS.
Banker Seligman of New York Test.
fles in the Panama Matter.
He Tells What the Committee Received
in Salaries and How the Fund Was
Otherwise Disposed OF.

NEW YORK, Feb. 15.-Big figures came
to the surface when the special committee
investigating the American end of the
Panama scandal heard the testimony of
Jesse Seligman of j. w. Seligman & Co.. ),
one OF the members of the American COM
mittee. He testified that he first became
permanently connected with the Ameri-
can committee in March, 1881. His con-
nection resulted from suggestion of the
Paris house of Seligman in behalf OF Fer
dinand De Lesseps that the Seligmans
should act as members of the American
committee to protect the interests of the
canal and secure neutrality of the United
States in relation to it. Similar commu-
nications were sent to Drexel, Morgan &
Co. and Winslow, Lanier & Co. The
Craftsmanship had been offered by Selig-
man to General Grant by authority of De
Lesseps, with salary of $4,000 for his
lifetime. General Grant declining, the
American committee suggested Richard
Thompson.
In regard to compensation of the COM
mission Mr.. Seligman said it waa first
agreed that 81, 800, 900 was to be divided
among Drexel, Morgan q Co., Winslow,
Lanier & Co. and Seligman & Co.
''For what purpose?' asked Colonel
Fellows.
ssFor payment of salaries for our SER
vices. This agreement was subsequently
modified as DeLesseps formed powerful
banking syndicate abroad and in this
country and allowed them per cent. on
$500, 900, 900 of stock and 5000, 900, 600 of
bonds of the canal company. The mem
bers of the syndicate in this country were
the American committee. This committee
had to pacify the Panama Railroad COM
pany. The opposition of Colombia had
TO be resisted. The cammittee looked
after much of the purchases of material
and supplies and gave great deal of time
to furthering the interests Of the canal in
other ways
GLOW much money was paid the
! American committee altogether?'' asked
Colonel Fellows.
'iSix million francs, one quarter of
which was paid when the committee was
| formed and the rest in six annual install
ments.- To each of the banking houses
forming the American committee there
was paid $4O0, 200. After the acquisition
of the Panama railroad the American
committee became directors. The con-
troversy with the Colombian government
was compromised by the payment of var
| ious sums at different times. The Ameri-
can bankers of the canal company were
Seligman and company. In all $40, 900, :
600 were deposited with them to the credit
of the canal company
When Congressman Patterson of Ten
nessee asked if any of this money was left
Mr.. Seligman laughed and said it was all
gone.
Mr.. Patterson asked why Thompson
was selected for chairman, adding "He
was not great financies, was he?''
NO." said Seligman, ''but he was q
great statesman
Seligman also testified that $3.50, 900 had
been on deposit to the credit of Chairman
Thompson in addition to the $40, 900 600.
"Will your books show how that
amount was expended" said Mr.. Patter-
son.
Mr.. Sellgman said they would and
promised to produce them. The commit
tee then adjourned to meet in Washing
| ton.