The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1893-01-11
He Tells the Story of the Great
Panama Scandal.
WHERE THE MONEY WENT.
Millions Given the Man Who Suggested
the Lottery Scheme.
The Minister of Public Works Received a
Large sum-Payments to DeRein-
ach We're Made in Install
ments-The Details.

PARIS, Jan. 10.-The ministry has Just
resigned owing TO differences in the cabi-
net over the arrest yesterday of Minis
ter of Public works Baihut and other mat
tiers. People throng the streets and the
greatest excitement prevails. The police
are out in force dispensing the crowds.
President Carnot has charged Ribot with
the duty of forming new cabinet. 1t is
openly charged that Ribot and Carnot
were not in earnest in the Panama prose-
cutions and have no intention of bringing
the bribe-takers to trial, and that the
prosecution of De Lssseps, Fontane, Cottu
and Eiffel will be nothing more than q
farce; it is also charged that efforts are
being made to postpone the exposure of
certain guilty parties until the law OF pre-
scription has taken effect.
1t is understood Ribot will retain the
Office of premier, but will exchange the
ministry Of foreign affairs for the minis
try OF the interior. 1t is also reported
that Loubet, minister of the interior, and
Freycinet, minister of war, will probably
be found in the reconstructed cabinet.
Ferdinand DeLesseps, although absent
on account OF the state OF his health, is
included today as one Of the defendants
with Charles DeLesseps, Fontane, Cottu
and Eiffel accused OF completely in the
Panama canal frauds.
The trial opened in the first chamber of
the court of cessation as the court Of ap-
peals was called, Pe=ivier presiding and
Procureur-GeneraI Tanon conducted the
prosecution.
Advocate General Pau is assisting Ia
non in the prosecution. Maitres Bar
boux. Waldeck, Rosseau and Dubuit are
among the counsel for the accused.
Maitre Barbour is acting for both Fer
dinand and Charles DeLesseps.
Although the resignation OF the minis
try caused widespread excitement there
was no attempt at disorder Order is pre-
vailing throughout the city and is no
doubt due to the fact that the lawless eIe-
ment well knows that any disturbances
vii be put down with strong hand by
the military.
The recess of the chamber of deputies
ended today and the house resumed its
slttlngs. After the usual formalities of
opening were complied with Floquet was
presented for reelection to the presi-
dency of the chamber. This evoked
somewhat unexpected and vehement op-
position, and Floquet withdrew his can
dldacy. The Republican group then nom
mated M. Casimer Perier, and ne was
elected by majority of 155.
During the proceedings in the chamber
group of thirteen men, prociaiming
themselves anarchists, gathered in front
OF the building and. refusing to move on
when ordered by the police, were ar
rested.
The new cabinet as arranged by Ribot
is: Ribot, premier and minister of the
interior; Develle, foreign affairs; Tirard,
finance; BOuTgoyes, justice; Loizillon,
war; Boudeau, colonies and marine; Du-
puy, instruction; Yiger agriculture;
Siegfried, commerce; Viette, public
works.
The name OF Count Ferdinand DeLes-
seps was called with profound silence.
After a short pause the physicians GER
tificate that the count was physically I'M
able TO be present was submitted TO the
court. The procurer general asked,
nevertheless, that judgment by default be
given and the court granted the motion.
Charles DeLesseps made q long state
ment as to the organization of the Pam
anna company. His father, he acknowl-
edged, had sold his founders share IN the
canal, but not for the purpose of with
drawing his money from the enterprise,
as in every case Count DeLesseps turned
such shares into money merely that he
might subscribe for new issue. On the
whole Count DeLesseps had invested
much more money in the enterprise than
he had Withdrawn.
The prisoner was then questioned
closely as to the relations of the Ameri-
can Panama committee to the company.
Ee said Il, 600, COO francs were placed at the
disposal of the American committeeman
and used by them for the best interests of
the company. When asked if this sum
was not large for the purpose for which it
was applied, he replied: s'Their assist
ance was valuable, and they would have
arranged the expenditure of still larger
amount. -
The prosecuting counsel then 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. De
Lesseps replied that NJ. Roussea, a COM
petent engineer, who examined the works
on the isthmus in 1885, expressed the con-
vietion that the canal could be completed,
provided certain notifications IN the
original plan be made.
But Boyer and Jacquet, both compe-
tent engineers, declared the canal with
locks would cost from 200, 600. 600 to
1, 500, 600, 600 francs, interpolated the pre-
siding judge. Our consulting committee
OF works replied to that, said De Lesseps,
and gave an estimate of 600, 900, 900 francs
Tor completion of the works, and these,
consequently, were the only figures we
could publish. The court then adjourned.
AfterTecess the presiding judge ques-
toned De Lesseps as to the bogus petit
enormous payments made by the com
pany to syndicates, which assisted in
floating the loans. De Lesseps answered:
! ''Much as L regretted 1t, hard necessity
compelled us to resort to such means TO
ensure the success of our plans. Millions
were given an Obendoerffer banker, who
received 1000, coo francs for giving the
company the idea of the lottery loan. In
payment of his suggestion of this simple
plan it behooved us to humor such a
great BANKER. and even had difficulty in
limiting the sum narrowly as l did.
''Like all great bankers Baron De
Reinach was keen after profit. He was
exceptional, however, in his willingness
to risk his capital for the purpose of rea-
lizing upon the plan OF the canal. He
was the man who formed the first society
civile 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 1T whatever remu-
neration ne chose.''
of surprise and disappointment and the
presiding judge said: ssYou handed him
4 millions with the permission to put as
much as he wanted in his own pocket7''
EXACTLY, he first demanded 10, GOO, COO.
! then Il, 600, 900 francs. I refused to grant
his excessive demands and persisted in my
refusal despite his repeated threats .
+ De Lesseps was asked to explain what be-
came of 275, 600 francs in bonds payable
to bearer which were not accounted for
in the company's books. He eVaded the
question by referring to the bonds Au
PORTER as the company's secret service
funds, but when pressed by the council
he referred to the payment OF some 600, 600