Morning journal and courier., 1893-01-12
NEWS BY TELEGRAPH,
From All Quarters.
TEE FRENCH SCANDALS.
The Heavy Exactions of the
Newspapers.
GENERAL BUTLER'S SUDDEN DEATH.
Contracts Awarded for Two
Naval Vessels.
miners KILLED BY An EXPLOSION.
No Change in Mr.. BIaine's
Condition.
BRIBERY AND CORRUPTION,

BRIBERY AND CORRUPTION.
Continuation of the Panama Trial
How the Newspapers Secured Inn
meAse Sums-Members of the Lot
terry Loan Commission Examined.
PARIS, Jan. 1.-THE trial of M. Charles
de Lesseps, Marius Fontane, Baron Colt.
and M. Eiffel, accused of completely in the
Panama canal frauds, was continued in tn.
court of appeal to-day.
! When NJ. Perivier, the president of the
| court, and his colleagues entered the court
room silence prevailed and the scene wa.
one of unusual solemnity. They tool
their seats on the bench and the court was
declared open.
President Perivier at once proceeded to
| examine NJ. Fontane. In response to the
questions put to him N. Fontane said
that shortly after the formation of the
Panama Canal company he was placed in
charge of the company's business with the
press.
He detailed at length what his duties
we're, and gave much valuable information
regarding the bribery of newspapers to
prevent hostile attacks upon the company
and also to prevent the publication of mat
ter that would have shown the true condi-
ton of affairs on the 18th mus of Panama.
M. Fontsne stated that he bad held his
position as manager of the company g
press affairs until 1885, when the exsctions
of the newspapers became SO heavy that
he was compelled to abandon the post
Since that time he had been merely the
private secretary of M. de Lesseps.
In the course of his examination NJ. Fon-
tame stated that he had distributed to the
press only 60, 900 francs in drafts payable
to bearer.
Upon the conclusion of NJ. Fontane's ex-
animation Baron Cottu was called upon by
President Perivier to explain his connec-
ton with the bribery and corruption of
officials and others. Baron Cottu declared
that his duties as a director of the Panama
company were merely technical. He dealt
exclusively with the internal administra-
tive work of the company.
Interest in to-day's proceedings was CEN
tered in the examination of M. Eiffel, the
contractor. The questions put to him by
the court resulted in lively fencing between
the president and NJ. Eiffel's lawyers, who
raised objection after objection to the in
tsrrogstions. The legal sparring occupied
considerable time, and afforded amuse-
ment to the audience. Finally M. Effel
admitted that he had csshed checks for
100000 francs, which had ostensibly
been drawn to pay for machinery, while
he had actually expended only 1,500, 600
francs for that purpose. Responding to
further questions NJ. Eiffel enid he had
given 1900, 600 francs to M. Hebrard to
secure the contracts with the company and
1000, 900 francs to Baron de Reinach, in
order to secure the latter's influence in his
favor with the government. 1t required
considerable questioning to bring II. EIffel
to the admission that 1900, 600 francs had
also been paid by him to certain con-
tractor, whose favor WAS indispensable to
success. Judge Perivisr then asked:
"What did you do with the six millions
received by you for taking to pieces and
shipping to the isthmus and there recon-
structipg machinery which, az a matter of
fact, you never even supplied in this coun-
tryp
81 kept that sum-" replied the witness,
"because it formed part of my remunera-
ton for the rick was undertaking."
''Bnt your contract provided that you
receive 80 per cent. to be paid within thir
ty days of the date of sending the orders.
Now you took 1876, 900 francs from the
FORCES ct Chanter de Mediterranee as per
eentage, although the order was never ext.
ecuted. Do you think that this sum be :.
lopged to you"
sit was not my fault that the order was
not delivered. l, myself, have often paid
on contracts which were never executed.
Besides this contingency was contemplated
by the general conditions of the transac-
ton"
II consider such transaction void, re-
piled the judge, 'since 1t was the result of
an error, to call it nothing more The
about this tomorrow, and at the subse-
quent sittings of this court"
M. Eiffel quailed visibly under these
words.
NJ Fiory, the government accountant,
who recently examined the accounts of the
canal company, testified that NJ. Elfel had
been paid SO. 000, 900 francs on his oon-
tract, and that he made q profit of 33 ,000,-
600 francs.
The court then adjourned.
Attention has been called to the state
| ments of Provost Delsuny and NJ. de Lam
| arZelle before the Panama committee in re-
| lation to Charles de Leseeps.- M. Delauny
| said:
"A few years ago gentleman called or
me and said: N. de Lesseps made the Sue7
| canal alone. For the Panama canal he has
been obliged to recourse to the banking
establishments. He is ready to treat with
the press, the financial world and parlis
| ment, and to do all that Is necessary.
| received the person who made this com
munication pretty roughly, but I would
| rather not name him. The following daJ
| Charles de Lesseps came to see me and saie
1 had misunderstood what had been said
the previous day. With my friend NJ
Delamarzsle / formerly interpellatec
government on the affairs of the Panama
canal. On that occasion We saw Charles
de Lesseps, I prefer not to relate oul
coversation, but NJ. de Lamarzelle put It IL
writing Immediately"
| Whenever fresh stock of the company
WAS announced plumbers of people called
on the company ard offered assistance
Most of these were Jewr. NJ. de Lessep
added that there WAS nothing astonishing
in the profits made by the contractors
Their high charges could not be cut down
They ran great risks, 1t being impossible
for q man to remain in the country trav
ereed by the canal for more than thre
| years. ALI the contracts for work on tn
| canal had been examined by the competen
court and all but one had been approved
That one, the contract with NJ. Eiffel, hai
been -.1uced by 5000, 600 francs. NJ
Fife, had undertaken to erect embank
ments at 35 francs per cubic meter and
had been necessary to accept that price Il
order that the work might be carried O.
without delay. NJ Eiffel had performe
all that he had undertaken. Charles
Lesseps had concluded his statement to n
? Lamsrzelle with theswords: "If certai
| persons, certsin things arc attacked, th
success of the undertaking will be CON
promised and those who make these a
| lacks will contribute to the taking over {
the enter prise by the Americans. Thof
| who attack the Panama project are peop
| who wish to strike a blow at the Sue
canal"
The commission of inquiry appointed
: ! the chamber Of deputies to examine mi
the Panama scandal to day heard the test
| mony of the members of the lottery los
commission The evidence vent to sho
:, | beyond reasonable doubt that N. Sans L
roy was to great extent. If not complet
. ly, guilty of the charges made sgainst hin
Nm. Jolibois and Pelletan moved tn
the committee inquire into the contract
They declared that T,000, 900 francs hi
been virtually stolen. The motion "
l agreed to.
The Brooklyn and Iowa.
WASHINGTON, Jan. 11.-Secretary Ira
to-day awarded The contracts for construt
ing the armored cruiser Brooklyn and q
sea. going bsttle-ship Iowa to VILLA
Crsmp & Sons of Philadelphia, at their b
of 81, $50, 600 for the Brooklyn and So. OH
900 for the Iowa.