The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1893-01-14
Shareholders Deliberately Robbed by the Di-
rectors. Who Permitted the Grossest Con-
tract Frauds to Go Unchecked.
Little Doubt that De Lesseps and His
Associates Will Be Convicted.
Ex-Ninister Constans and Others Striving to
Implicate President Cernot- Horrible Crime
and Disaster Reported from China.
DISHONEST DIRECTORS.
Testimony That Shows How Panama Ca
Sharehoydara We're Robbed

O1ShONESI
Testimony That Shows How Panama Canal
Shareholders Were Robbed.
PARIS, Jan. 13.-There is no abatement
whatever in the interest excited by the de-
velopments in the Panama case that have
been brought to light by the skilIfnl qnes-
tioning of President Perivier, of the Court
of Appeal. before whom the accused are
being tried. To-day was the fourth day Of
the trial of NJ. Charles de Lesseps, Baron
Cottu and MN. Fontaine and Eitfel, and as
on the preceding days the courtroom was
crowded. A number Of witnesses were
called to show that at the time the rosy re-
ports were being made by the canal COM
psny the officials had full knowledge
that the reports were untrue and that
the difficulties that were brushed aside on
paper. as though they were nothing. were
known by De Lesseps and others to be in
srrmountable. The first witness to prove
this condition OF affairs was Captain
Frayze, who had acted in the capacity of
superintendent of the canal works. He
testified that he had had many conversa-
tIons with Ferdinand de Lesseps in regard
to how matters were proceeding on the
isthmus and that he had often told De Les
seps that the seriousness Of the difficulties
that were being met with were hindering
the execution of the enterprise.
The evidence to-day justified the advice
given to the parliamentary commission of
inquiry by Vicount De VilleboIs- Mareuil
that they should devote themselves to in
yestigating the dishonest contracts made
by the canal company. Through such con-
tracts he said. the company had squan-
dered sums compared with which the cor
ruption fund spent upon the press was
trlte. The testimony of Captain trayze
and NJ. Etienne- Martin corrOborated the
ViscOunts statements. Captain FrayZe,
after retiring from the navy. was sent TO
the isthmus as controller general. He saw
at once that success was impossible. be
said to-day, and that money was squan-
dered reoklessly upon men whose aim was
to get as much as possible without doing
the WORK they had agreed to do. He was
discouraged. and returned to France soon
after having arrived ut the isthmus
TOO ROTTEN FOR NJ. MARTIN.
NJ Etienne-Martin, once chief secretary of
the canal company. described with gusto
his experience while in Office and the scorn
he felt for the methods of the directors.
The unvarnlshed corruptness of the con-
tract system. he said. often rendered him
so indignant that be protested to the board,
at their meetings, against the scandalous
abuses with which the whole canal work
was honey ycombed. Eventually he resigned
rather than sign contracts for machinery
and supplies with French firms whose bids.
taken together, were %. .0OO. 600 francs b CHER
than the bids of English and Dutch firms.
The directors had declined to listen to his
protests against the lnlquItous bargain and
had left him the alternative of signing or
reeigning, so he resigned. Every body In
the management of the company knew that
this sort of work was being done; also. that
Baron De Reinach and other financial
agents were getting enormous commissions
Nj. Odellna, city councillor and stove
manufacturer, testified that he had re-
ceIved contracts from the Panama Canal
Company and had followed its course
closely, as he had been rather heavy
shareholder. He had been obliged to deal
with several agents In obtaining each con
tract. They all demanded or per cent.
commission for their good offices. This
rate was so exorbitant that he inferred the
company was being piundered and he.
therefore, sold all his Panama shares.
NJ. Landroble, who examined the books
of the Panama Canal Company in 1859 and
wrote a pamphlet about them. gave his
opinion that excessive amounts were paid
to contractors for work to be done. The
compensation for cancellation of contracts
also had been exorbItant. NJ. Retault. d
shareholder in the company. desired TO read
number of documents to show that the
newspapers and members OF the Chamber
of Deputies had deceived the public as 70
the real condition of the country though
they knew it was n swindle. but President
Perivler stopped HIM. saying that the court
wanted personal and hearsay evidence.
n. HyerOnimous, the chief accountant of
the Panama Canal Company. was ques-
toned at length by President Perivier in
regard to the bons anonymes. NJ. HyeronI-
nous declared that he thought the course
F-Il St,ar ffnr q 4, 49,
adopted in order to keep the names of those
who received them from the officials of the
company.
Upon receiving this answer President
Perivier remarked: when people are act
ing uprightly their proceedings are not
surrounded by such mystery"
HYERONIMoUS RATHER SECRETIvE.
Further questions were put to the wit
ness but he gave evasive answers, and 1t
was evident that he was determined to say
nothing that would compromise the COM
pany. He insisted that he knew nothing
of tho company's operations. Though both
President Perivier and ". Tanon. the pub
lie procureur. piled him with questions thoy
failed to elliott any information that would
throw light on the methods pursued by the
company.
NJ Reynier. the canal company's cashier
made statement as TO ex penses of issues
OF IO3OS. SuTtlul QUESTIONING as TO inc
names on the vouchers that he signed elic-
tied only the reply Il do not know"
''Who received the voucher for 500. 600
francs" asked Judge Perivler
IL do not know"
"You do not know2 That is strange. 1t
seems TO me that would have been more
inquistlve if l had been IN your place"
NJ. Boudard, who succeeded NJ. Reynler
on the stand, is chief clerk of the Suez
Canal Company. He was intrusted with
part Of the press fund used by the Panama
company, but. when under examination
to-day professed TO have forgotten the
names of all the recipients as well as the
amounts disbursed by him. Judge Peri
vier remarked that he had very peculiar
memory.
Charles de Lesseps was called TO testify
as TO the bonds payable to bearer issued by
the Panama Canal Company. He was
white and haggard. his eyes were blood
shot and he spoke apparently with diff
Guilty. as he hesitated repeatedly and often
sank his voice to that only persons within
q few yards could hear his testimony. He
explained that of some 00U francs in
bonds au portre. 375.t Oh francs went to VI.
Baihaut. then Minister of Public Works,
and G00.0O0 francs TO Cornelius Herr. The
rest of the money was distributed ia small
amounts among many persons whose favor
was indlspeu sable To the company.
NJ. Oberndortfer, the banker who sus-
gested the plan OF n lottery ./sstified that
as a member of the guarantee syndicate he
took shares TO the nominal amount of 6 49,
600 francs. paying for them francs and 80
crntimes each. His profits from this source