The morning call., 1893-01-14
CONVICTION ASSURED.
The Panama Directors Will Be Found
GuiitV

PARIS, Jan. 13-Tbe Panama trial was
resumed this morning. A number of wit
DesseS were called to show the favorable
reports made by the canal company were
known to be untrue by the officials and the
insurmountable difficulties known to be so
by De Lesseps and others were brushed
aside. Captain FTaysbe, superintendent of
the canal works, said he frequently told
Ferdinand de Lesseps of the difficulties
that were hindering the enterprise.
Etienne Martin, once chief secretary of
the canal company, described his expert
ence while in Office and the scorn he felt for
the methods of the directors. The unyar-
nished corruption OF the contract system, he
said. often rendered him so indignant that
he protested to the board at lis meeting
against the scandalous abuses with which
the whole canal work was honeycomed.
Eventually he resigned rather than sign
contracts for machinery and supplies with
French firms. whose bids, taken together
were 2S.OO0O0O francs higher than the bids
of English and Dutch firms. Everybody in
the management of the company knew that
this sort Of work was being done, and knew
also that Baron de Reinach and other fnau-
cial agents were getting enormous commits
sjons.
NJ. Hyronimous. chief accountant, of the
Panama Canal Company, was questioned at
length by President Periver in regard to
the bons anonymes, but bis answers were
evasive. and he insisted that he knew moth
ing Of the company's operations.
NJ. Reynier, the canal cOmpany's cashier.
made statement as to the expenses of the
issues of loans. Careful questioning as 10
the names on the vouchers that he had
signed elected only the reply. II do not
know"
hi. Boudard, who had been intrusted with
part of the press fund used by the Panama
company, also had lapse Of memory.
Charles de Lesseps was called to testify
as to the bonds payable to bearer issued by
the Panama Canal Company. He was hag-
gard looking. his eyes were bloodshot, and
he spoke apparently with difficulty. He
explained the distribution of some 1,O00O 600
francs in the bons au porteur. OF this vast
sum, $4,000 francs went TO NJ. Baihut, then
Minister of Public Works. and 100000 francs
to Cornelius Herr. The rest of the money
was distributed in small amounts among
many persons whose favor was Indispensable
to the company.
NJ. Oberndorffer, a banker, testified as a
hCihUSA Vi biiC y u0iNotO thot hC
took shares to the nominal amount Of 6.175,-
= 600 francs. paying for them 2 francs and 30
confines each. His profits from this source
was eventually 100000 francs. For sug-
costing the lottery scheme he received some
100000 francs. AS this proved TO be an
excellent opportunity he never considered
himself oVerpaid. He said that he received
nothing for his work on the Bourse In the
company's interest.
NJ. Flory testified: "Charles de Lesseps
told me that be gave O5erndorffer large
sums to reward him for suggesting the
lottery plan and to prevent him from specu-
lating on the Bourse against the interests
Of the canal company"
Engineer Psch Of the Community Iron
Works said that the canal company was
struggling constantly against the most out
rageous demands OF contractors. Despite
the opinions Of the expert engineers the
company usually yielded to these demands.
NJ. Jolly, a Panama canal shareholder,
said that the newspaper attacks upon the
canal company decided him. In 1886. TO sell
his shares. He consulted with Count Fer