The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1893-01-11
Millions of the Company's Money Given to
Baron De Reinach and Others. and II. .OO0,.
900 Francs Sent TO the United States.
Large Sum Presented to EY-Minister
Baihut, Because he Demanded a Bribe.
Another Upheavsl ir the French Cabinet,
Followed By Its Speedy ReOrganiza-
tiOn-M Riho: Still Prime Minister.
CHARLES DE LEssEPs' STORY.


Evidence in Court That Shows Panama
Canal Money Was Thrown Away.
PARIS, Jan. lO-M. Ferdinand De Les
seps, who is absent on account of the state
of his health. was included to-day as one
of the defendants. with MN. Charles De
Lesseps. Fontaine, Cottu and Eiffel ae-
oused of completely in the Panama canal
frauds. The trial was opened in the first
chamber of the Court of CausatIon. the
Court of Appeal is called. NJ. Perivier. pre-
siding. The space allotted to the audience
was thronged with distinguished people.
including many well known In French
finance, and number of promi-
nent persons from abroad were
also present Procureur-general Tanon
conducted the prosecution. The charges
were read setting forth that NJ. Ferdinand
Marie De Lesseps. Grand Cross of the Le-
gion of Honor; NJ. Charles Annie Marie De
Lesseps. late member of the Societe du
Canal Interoceaniaue De Panama; NJ.
Marlus Etienne FOntaine, NJ. Henri Louis
Felix Cottu and NJ. Alexandra Gustave
EIffel were accused of having conformity.
and during a lesser period than three years
before the last act Of prosecution in Paris,
"by employing fraudulent maneuvers to
induce q belief in the existence of
chimerical event and an imaginary credit.
dissipated sums derived from issues of loana
which had been obtained for specified
use and employment of having swindled
the whole or part of the fortune of others"
Then followed the mention of the clauses
Of the code referring to the case.
Advocate general Rau Is assisting 81.
Tanon in the prosecution. Maitres Bar
boux Waldeck- Rousseau and Du Butt are
among the counsel for the accused, Maitre
Barboux acting for both Ferdinand and
Charles De Lesseps. The name of Count
Ferdinand De Lesseps was called amid pro-
found silence. Alter O short pause ply
sician's certificate that Count De Lesseps
was physically unable to be present was
submitted to the court. The procureur-
general asked, nevertheless, that Judgment
by default be given, and tho court granted
this motion.
Charles de Lesseps was the first of the
defendant directors examined. He was
pale but self possessed, and answered all
questions with slow. painstaking precision.
de made long statement first as to the
organization of the Panama company with
his father; he acknowledged how he sold
his founders shares In the canal, but not
for the purpose of Dithdrawing his money
from tue enterprise. In every case Count
De Le3seps had turned such shares into
money merely that he might subscribe for q
new issue. On the whole Count De Lesseps
had invested much more money In the
Panama enterprise than he had with
drawn. Charles de Lesseps admitted that
his own founders shares had been bought
by his father for ZOO francs. which had
been used by his father IN subscribing for
subsequent issue.
MONEY SPENT IN AMERICA.
The prisoner was then questioned closely
as to the relations of the American Panama
committee to the company. He said that
Il, 900 600 francs had been placed at the dis
posal of the American committeeman and
had been used by them for the best inter-
ests of the company. When asked if the
sum was not rather large for the purpose
for which it was applied, Charles de Les
seps replied: Their assistance was valu-
able, and would have warranted the ex-
penditure of still larger amount" The
prosecuting counsel asked several questions
intended TO draw out admissions that the
feasibility of the canal plan was doubted
by the directors before the last loans were
applied for. Charles de Desseps replied
that NJ. Rousseau. a competent engineer,
who examined the works on the isthmus in
1886. expressed the convection, after his re-
turn TO France, that the canal could be
completed. provided that certain modltica-
tions of the original plan were made.
But Nj. Boyer and NJ. Taquet. both COM
petent engineers. declared that canal
with locks would cost from 200. 100000 TO
1,S00. .0O0. 600 franco" interpolsted the judge.
WAS not the public deceived by the with.
holding of this estimator
Our consulting committee Of works."
replied M. De Lesseps. gave an estimate
| of 6U0. .000000 francs for the completion Of
| the works. and these were, consequently,
| the only figures that we could publish
After Nj. De Lesseps had explained at
| some length the reasons OF the directors for
| iutrusting the work 20 certain contractors
| the presiding Judge questioned him as TO
the bogus petitions preseD ted to the Cham
| ber and the enormous payments MADE by
| the compeny to the syndicates which as
sisted. NJ. De Lesseps answered the ques-
% %t,ons as they were .eus put; and then made
| it, hard necessity compelled us to
resort to such means to insure the success
| of our plans. The millions given TO NJ.
I Obendeffer lthe banker who received p
| 000, 900 francs for giving the company tho
idea of O lottery loan, and putting the idea
| in practicel were In payment for his sug-
gestIon of q simple plan relative to the
bonds and constitution OF the Societc
| Civil. Ii hehooved us to humor such q great
banker. and even had great difficulty in
| limiting the sum as narrowly as did. We
always dIstributed.the money when fresh
issues were made. 80 that We might avoid
! creating enemies on the Bourse."
In response to questions as to the rela-
| tions between Baron De Reinach and the
Panama Canal Company. NJ. De Lessons
said: Like all great bankers Baron De
| keinecb was keen after proft. He was ex-
| ceptional however in his willingness to
| risk his cauital for the purpose of realizing
| the plan of the canal. He was the man
| who formed the first Societe Civil. with
| his own capital. assisted by the name of NJ.
| Bonaparte Wyse When gave Baron De
| Reinach the money told him to take out
| of nc whatever remuneration be chose
| This admission evoked loud murmurs OF
| surprise and disapproval from the crowd
| in the courtroom. and the judge repeated
| In a loud tone.
| SOME REMARKABLE ADMISSIONS.
"You gave the Baron De Reinach the
money and told him TO take ont OF il W that.
ever remuneration be chosei"
| Il did"
"You handed him millions. with permis-
sion to put as much as he wished in his
| own pocketW
Exactly. He first demanded 1900 900;
then 100000 francs. / refused TO grant
| these excessive demands. and persisted in
| my refusal despite mis- repeated tbreats"
| "Did you know TO what uses Baron De
| Reinach expected to put that part of the
money which he did not retain remuner-
atioDp
II did not know, and i did not wish to
| know exactly where he disbursed the money.
| / knew that the money WAS 70 be spent for