The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1893-01-14
CLAUDE DUAL METHODS.
How the Panama Canal Company
Was Held Up.
WHERE THE MONEY WENT.
Millions for Simply Suggesting the
Lottery Scheme.
obernOrffer Appears to Have Got Away
with the Biggest Part of the Doodle,
with Herr Close Second
Details of the Trial.

PARIS, Jan. 13.-The Panama trial was
resumed this morning A number of
witnesses called to show that the favor
able reports made by the canal company
were knwn to be untrue by officials. and
the insurmountable difficulties known to
to be so by De Lesseps and Others were
brushed aside. Captain Fraysse, super
intendent OF the canal works, said he
frequently told Ferdinand De Lesseps of
the difficulties that were hindering the
enterprise.
Eitenne Martin, one chief secretary of
the canal company, described bis expe
r1ence while in Office and the scOrn he felt
| Tor the methods of the directors. The
unvarnished corruptness OF the contract
system, he said, often rendered him so in
dlgnant that ne protested to the board at
q meeting against the scandalous abuses
with which the whole canal work was
honey-combed. Eventually be resigned
rather tnan to sign contracts for machin-
| cry and supplies with French firms whose
| bids, taken together, were Is. 600, GOO
francs higher than the bids of English
and Dutch firms. Everybody in the man
agement OF the company knew this sort
OF work was being done, as also Baron
de Reinach an other financial agents who
We're getting enormous commissions.
M. Hyronimus, chief accountant of the
Panama Canal company, was questioned
at length by President Peryier in regard
to Mons. Arene, but his answer was
evasive and he insisted that he knew
nothing of the company's operations.
Nj. Reynier, the Canal company CASH
Ter, made statement of the expenses,
issues and loans. Careful inquiry as to
the names on the vouchers that he signed
elected only 81 do not know NJ.
Boudart, entrusted with the press funds
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 company. He was white
and haggard, his eyes bloodshOt and he
spoke apparently with difficulty. He
explained that OF some one million francs
in Bons Au Porte, 30, 600 went to M.
Baihut, then minister of the public
works, and 600, 600 francs to Cornelius
Herr. The rest of the money was dis
trlbuted in small amounts among many
persons whose favor was Indispensable
to the company.
NJ. Oberndorffer, banker, testified that
as member OF the guarantee syndicate
he took shares to the nominal amount of
6 ,170, COO francs, paying for them francs
and 90 centimes each. His profits from
this source were eventually 200, 900 francs.
cei7ed some 1000, coo francs. AS this
proved to be an excellent operation, he
never considered himself Overpaid. He
said he received nothing for his work on
the bourse in the company's interest.
M. tlory testified; s'Charles De Les
seps told me he gave Oberndorffer large
sums to reward him for suggesting the
lottery plan and prevent him from specu-
lating in the bourse against the interests
of the canal company.
Engineer Pisch, of the Commentary
Iron works, said the canal company was
struggling constantly against the most
outrageous demands of contractors. De-
spite the opinions of expert engineers, the
company usually yielded to the demands.
NJ. Jolly, Panama canal shareholder.
said the newspaper attacks on 5he canal
company decided him, in 1885, to sell his
shares. He consulted with Count Ferdi-
nand De Lesseps, who dissuaded him from
doing SO, declaring the attacks emanated
from an English source which was not
worthy of credence.
Senator Guichard, president of the Suez
Canal company, gave testimony eulogistic
both OF Count De Lesseps and his son
Charles.
Charles De Lesseps was recalled and
testified that checks paid Arthur Meyer,
editor OF the GduldiS, amounted to 100, 900
francs. De Lesseps was allowed to make
a statement in rebnttal OF Eitenne Mar
TIM testimony. I'M. Martin knows me
too we'll, - he said, 'sto. say that l ever
did anything inimical to the interests
of the shareholders. M. Martin de-
clined, however, to modify or withdraw
any of his testimony.
The evidence SO far in the trial is re-
garded as assuring conviction. The re-
port that NJ Elory, government account
ant, contends that the responsibility for
the Panama frauds and deception rests
upon the whole board of Panama di-
rectors, because having squandered the
share capital they concealed the real stu
alton by false statements in order to OBJ
tain subscriptions and protect their own
interests.
10 connection with the charge that
President Carnot was well aware of the
connection of men in high places with
the Panama frauds, attention is called to
a statement of Comte Ca1arelli to the
effect that Yves Guiot told him, when
minister, that he one day saw Constans
show members Of the cabinet coun-
ell a large packet OF documents
destined for the president. That the
packet, according to Yves Guiot, con-
tanned the names of persons, not all who
were deputies, who were receiving money
from the Panama funds. Carnot's enc
mics allege that he was keeping back evil
dence against the guilty men in order to
hold it over them when the time for cleo
ton should come, and thereby compel
them to support him for reelection.
M. Pierre Denis, a faithful follower and
defender of General Boulanger to the
last, has some curious revelations to
make about the Panama scanda Is. He
intends to publish them. One extract
from the record throws light on the pro-
ceedings at q cabinet council when ROus-
seau's report or the canal was read.
The utmost secrecy was preserved about
It. Before opening it the ministers
were made Rshers, who brought in lamps
after all wdre gone and locked the doors
carefully behind them The search was
made under the tables, aud finally all
present gave promises 10 keep the report
q thorough secret. Nevertheless, mis-
leading extracts from the report were
published.
KNET 1T WAS COMING.