The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1893-01-11

advice his father had undertaken the con-
struetion of the Panama canal. The "resl-
dent reproached the witness for having
misled the public by announcing that Her
sent and Gouvrenx had undertaken TO con-
struct the canal for 512, ,000. goo francs. To
this De Lesseps replied that The arrange
ment with Hersent and Gouvreux was not
exactly a contract of that kind. 1t was
rather sought to arrange price per meter
than fix the total Of cubic meters to be
eXcavated.
Charles de Lesseps made long state
ment as to the organization of the Panama
company. His father. he acknowledged,
had sold his founders shares in the canal.
but not for the purpose of Withdrawing
money from the enterprise. In every case
Count de LeSseps had turned such
shares into money merely that he might
subscribe for the new issue. On the whole,
Count de Lesseps had invested more
money in the enterprise than he had with
drawn.
The prisoner was then questioned closely
as to the relations of the American Panama
committee to the company. He said that
100000 francs had been placed at the dis
poSal of the American committee aud used
by it for the best interests of the COM
pany.
When asked il this sum was not large for
the purpose for which it was applied, he
said. Their assistance was valuable. and
they could have arranged for the eXpeudi-
ture of a still larger sum-"
The prosecuting counsel asked several ques-
tions intended to draw out that the feasibil-
ity Of the canal plan was doubted by the
directors before the last loan had been ap-
piled for. De Lesseps replied that Nj.
Rousseau, a competent engineer who
examined the works on the isthmus in 1856,
bad expressed the conviction that the canal
could be completed, provided certain modi-
fcationS in the original plan were made
But Boyer and Jacquet. both competent
engineers, had declared that canal with
locks would cost from 1900, 600, 600 to 1.S00.-
COG, 0o0 francs" interpolated the presiding
Judge.
"Our consulting committee Of works."
replied NJ. de Lesseps, gave an estimate of
600 100000 for the completion Of the works,
aud these were the only figures we could
publish"
The court then took recess. After recess
the presiding Judge questioned De Lesseps
as TO the bogus petitions presented TO the
Chamber and the enormous payments made
by the company to the syndicate which as
sisted in floating the loans. De Lesseps an
swered:
Much as l regretted it, hard necessity
compelled Us to resort TO such means to in
sure the success of our plans. Millions were
given TO Ohendoeffer, the banker, who re-
ceiyed 1900, 600 francs for giving the COM
pany the idea Of lottery loan in payment
for his suggestion of the simple plan. 1t
beh0oved US to humor such great banker
and l even had difficulty in limiting the
sum as narrowly as ] did. Like
AL great bankers, the Baron de
Reinach was keen after profit. He was ex-
eeptional. however, in his willingness to risk
his capital for the purpose Of realizing the
plan of the canal. He is the man who
formed the first societe civiIe with his own
capital, assisted by the name of NJ. Bona
parts Wyse. When l gave Baron de
Reinach money told him to take out of it
whatever remuneration he chose"
This admission evoked loud murmers of
surprise and disapproval. and the presiding
Judge said: You handed him millions
with the permission to Put as much as he
wished in his own pocket"
Exactly He first demanded 15,000 900.
then Il, COO coo francs. l refused to grant
his excessive demands and persisted in my
refusal in spite of his repeated threats"
De Lesseps was asked to explain what
became of 275.0OO francs in bonds payable
to bearer which were not accounted for in
the eOmpsny books. He evaded the ques-
ton by referring to tile bonds au porteur as
ha -
pressed by counsel be referred to the pay
ment of some 6C0oOO francs to Cornelius
Herr. with whom the company could not
possibly afford TO fall out After third
question as to the recipient of the 275. eco
francs, he said. after painful silence:
"When the lottery bill was laid on the
table, Baihut asked for 1000. coo francs. to
be paid him in instaIlments, between the
introduction and the adoption Of the bill.
OF this sum 275,000 francs were paid TO
Baihut. Then the bill was Withdrawn and
nothing more was paid"
De Lesseps paused for moment after
giving this damaging testimony against the
ex-Minister of Public Works. Nobody
spoke or stirred. He looked fxedly at the
Judges, and added: "Oaly when the knife
was put to my throat did pay this money.
was Ike man giving up his watch TO a
highwayman."
At the end of his testimony the court ad-
journed and the prisoners were removed to
the conciergerie.
It's reported this evening that the exam
iniug magistrate has decided. on the ground
Of insufficient evidence not to prosecute
Deputies Rouvier, Roche. Arene. Proust
and Dugue de la Fauconnerie and Senators
Grevy, Theyeney. Deves. Renaut ana
ReraL The proceedings against all except
the Panama directors. Sans Leroy and
Baibut, it is expected, will be stopped