New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-01-12
EIFFELS STORY OF Fra I'D.
MORE SENSATIONAL EVIDENCE IN THE
PANAMA PROSECUTIONS
ALLEGED CONTRACTS FOR MACHINERY WHICH
YIELDED ENORMOUS PROFITS-FoNTANE'S
RELATIONS WITH THE PRES
PUBLIC OPINION AGAINST
CHARLES DE LESSFPS.

PUBLIC OPINION AGAINST
CHARLES DE LEsSFPs.
Paris. Jan. 1.-THE trial OF VI. Charles dc Lcsseps.
Marus Fontanc Baron Cottu and VI. Eiiel accnseu oi
completely in the Panama Canal frauds, vas continued
in the Court Of Appeals today. Interest In the pro-
ccedngs centred I'm the examination OF NJ Eifcl. the
contractor The question put TO him by the court re-
suited in lively fencing between the president ana
VI. Efcls lawyers, who raised objection after objection
to the nterrogatlons The legal sparrng occupied con-
siderable time and afforded amusement for thc
audience. Finally VI. Eifel admitted that he had
cashed checks for 100000 francs which had
ostcnsibly been drawn to pay for machinery, wlle
he had actually only expended 100000 francs ior
that purpose ~ Eel said further that he had given
1000 francs to VI. IIebrard to secure the con-
tracts with the company and 100000 francs to
Baron Reinach in order TO secure the latter's m
fuence In his favor vitl tho Government
II required considerable questioning to bring NJ
Flfel TO the admission that. besides the ".OOOooo
francs given to NJ Hebrard. and the 100000 francs
given TO Baron Renach 2OOOO 900 had been paid by him
10 certain contractor whose favor, Ike that OF
Hcbrard and Rcinach. was indispensable to success.
Presiding Judge Pertvier then asked
What did you do with the 100000 received BY
you are taking TO pieces md shipping 10 the sthmus
and there rcconstructng machinery which. matter
OF fact, You never even supplied TO this country "
Il kept that sum-" replied NJ. EGel "becausc IL
formed part OF my remuneration for the nsk was ui'
deral1ng."
But your contract provided that you receive 30
per cent TO he paid TO you within thirty days OF the
date OF sending the orders. Now you took ..7IjOOO
francs from the Forges ~ Chancrs dc Ia Mcditer
rance q percentage although the order was never
executed. DO you think that this sum belonged to
you'"
1T was not my fault ,that the order was not de-
livcred myself have often paid on contracts which
were executed. Besides. this contingency was
contemplated by the general conditions OF the trans
action
al consider such transaction void replied Judge
Perivier severely. since 1t the result OF an error
to call 1t nothing more The ProcurcurGeneral will
tell you more about this omorrow ana at the SUD
sequcnt slttings Of this court"
VI. Eifel qualcd vislbly under these words ana
the audience from their seats TO get better view
OF the manner In which he bore tho reproof
VI. Flory the Government accountant, who recently
examined the accounts Of the Canal Company. was
called o testify upon the conclusion Of NJ Enels ex
animation He stated that VI. Ei!el had been paid 69-
600 900 francs his contract and that he lad made
q profit OF 80 900 600 francs. l.
Long before the hour set for the opening Of the court
the room had been filled 10 lts utmost capacity with
crowd OF interested spectators The audience discussed
the evidence given NJ Charles dc Lesseps yesterday
and the general opinion seemed to be that he had not
betorcd his case by his statements regarding the trans
actions between himself and Baron Roinaoh. Lr'lc
confidence placed IN his declaration thh no had no
knowledge rs tue uses 10 which the large suDs oi
money no had LANDED to tho Daron were TO be put,
beyond the fact that tLey were to DC expended
for the Canal Company.
Whom NJ Pertvier, the President Of the Court, and
his colleagues entered the courtroom silence pre-
vailed and the scene was one OF unusual soicmn'y'
They took their seats the bench. and the oous was
declared open The four prisoners sat In the place
occuped BY them yesterday. directly In front Of the
MAGISTRATES President Pcnvier st once proceodcd 10
cxamine NJ FontAne.
In response TO the questions put TO him. N. fonnne
eaid that shortly after the formation OF tho Panama
Canal Company he placed In charge OF tho Com
panys business with the press Hc detailed at i"hGh
what his duties were, and gave much valuable IN
formation regarding the bribery Of newspapers TO pre-
vent hostile attacks upon the company. ana niso 10
prevent the publication OF matter that would nave
shown the true condition Of affairs the lsthrnns OF
Panama NJ Fontane stated that he had held his
pIacc as manager Of the company's prefs Affairs uhu
1888 when the exacons Of the newspapers became so
heavy that he wus compelled 10 abandon the post.
Since that time he had been merely the private Sc-
retary OF NJ. de Lcsseps lie had distributed To the
Dress he said, only 10000 francs In drafts payable
to bearer.
Upon the conclusion Of NJ Fonane's examination
Baron Cottu was called upon By President ferv'er
10 explain his connection with the bribery and cor
ruption OF officials and Others. Baron Cotu declared
that his duties u a director OF the Panama Company
were merely technical. He dealt exclusively with the
administrative
The court adjourned at the conclusion OF NJ Einers
examination.
In connection with the statements OF NJ Charles de
Iesscps at his trial in the Court Of Appeals atten'
ton has been called u the statements Of NJ Provost
de Launay and NJ. de Lamarzce before the Panama
Committee In relation I" NJ. Charles de LeSs,p'. VI.
dc Launay said
81 have studied the part played in the affairs OF
Panama by the press. Parliament and the banking
establishments few years ago man called on NE
and said ". de Lesscps made the sucz Cahni nj
alone. For the Panama Canal he has been oDnsea
TO have recourse to the banking establishments "e'
he Is ready 10 treat with the press, the hnahoai
word and Parliament and 10 do all that IS necessary
l received the person who made this communication
prcttv roughly but would rather not name MN
unless 1t Is Indispensable. The following dhy d.
Charles de Lesseps came to see me ana ohcred 10
Give me information. lie said | had misunderstood
what had been snld to me the previ"us day. In my
snecch referred TO NJ Bousscau's report; II Is
reousite TO eiucidatc that matter with my f1end
NJ de Lamnrzee formally interpellaed The Govern
mcnt on the affairs Of Panama. ON that occasion VIC
saw NJ Charles de Lesscps prefer not 10 rc'ae
TO YOU the conversation we had together bu' as NJ
de Lamnrzclle put II In Writing lmheo'"'ey "iocr-
ward, ne read II 10 you.'
NJ. de Lamarz, lie said he was told by ~ Charles
de Lcsseps thai whenever company issued ircsh
apital large sums OF money had to be eApehdeu OIL
the press financial concerns even mauc 10
newspapers "A monthly allowance. but In the case OF
the Panama Corip pany the journalists VINO hocKcu
10 It's Offices whenever fresh issue of cnIhal was
made received nothing. In spite Of this the expenses
Of the different issues reached considerable sum-
They did not. however amount to u per cent Inc
Board OF Directors VI. C. de Lcsscps Informed NJ de
LamnrzclIc allowed certain accounts and cd not
go into the question OF details. VI. dc Lessrps after
ward gave TO VI. dc Lamarzcl,c some cApihnntohss
regarding the called guarantee syndicate formed
By the various financial houses which took part III the
icsucs of new cnpuI THESE establishments. whose
co ooperiiiOn Indispensable. received large sums
without really guaranteeing ANYTHING. whenever
fresh Issue annouuccd numbers Of pcopl" called
ON the company aud offered their assistance ~
was not cnly bankers WHO made these oilers. D'i'
nil SORTS OF influential Persons who would praise or
decry the op ration according they received more