The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1893-01-12
Six Million Francs Pocketed by Himselfin One
Sum, on the Ground that 1t Was Remun.
GRAFTON for Risky Contract
Alleged to Have Been Psid 10000. 900
mall, 100000 of Which WasPrOit.
Another French Cabinet Minister Forced TO
Retire On Suspicion of Being Con-
nected with the Great Scandal.


The Panama Canal Contractor Seems to
Have Lined His Pockets with Money.
PARIS, Jan. lit Is reported that NJ.
Freycinet, ex-Minister of War, and NJ.
Fiouquet. ex-President of the Chamber of
Deputies, were examined by NJ. Franque-
vile to-day in connection with the Panama
charges. The two statesmen were not un-
der arrest or accusation. at least In name
but were present as witnesses. although,
0f course. liable to accusation should their
acknowledg gments Justify such action.
The trial of NJ. Charles de Lesseps.
Marius Fontaire, Baron Cottu end Nj.
Eiffel, accused of completely in the Panama
canal frauds, was continued in the Court
of Appeals to-day. The four prison ers sat
in the places occupied by them yesterday,
directly In front Of the magistrates
President Periver at once proceeded to ex-
anime NJ: Fontane. In response to
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 were, and gave much valuable in
formation regarding the bribery of news
papers to prevent hostile attacks upon the
company, and also to prevent the publlca-
ton of matter that would have shown the
true condition of affairs on the lsthmus OF
Panama. M. FOntaine stated that he had
held his position as manager of the cOmpa-
ny's press affairs until 1855, when the exac-
tions of the newspapers became so heavy
that he was mpelled to abandon the post.
Since that time he had been merely .he
private secretary of NJ. De Lesseps. he
stated that he had distributed to the press
only $4,000 francs In drafts payable TO
bearer.
Upon the conclusion of NJ. Fontaine's ex-
animation. Baron COttu was called upon
by President Periver to explain bis oonneo-
tion with the bribery and corruption OF Of
hcials and others. Baron COttu declared
that his duties as a director OF the Panama
company were merely technical. He dealt
exclusively with the internal admlniStra-
tive work of the company.
Interest In the proceedings OF the court
was centered in the examination OF Nj.
Eiffel, the contractor. The questions put
to him by the court resulted IN lively feDc-
ing between the President and NJ. EittePs
lawyers, who raised objection after Objec-
tion TO the interrOgations. The legal spar
ring occupied considerable time. and af-
forded amusement to the audience.
Finally NJ. Eitfel admitted that
he had cashed checks for twelve
million francs which had Ostensibly been
drawn to pay for machinery " b 6ste had
actually expended only 1,500,00O francs for
that purpose. Responding tesfprtksr lues
tIons M. Eiffel said that Ne hnt szaven
G,UO VI
contracts with the company, and 2,00.000
francs to Baron De Reinsch in order to Sc
cure the latter q influence in his favor with
the government. 1t required considerable
questioning to bring Nj. Eitfel TO the admis-
sion that. besides the 2000000 francs given
to NJ. Hebrard and the 2,000. 900 francs given
to Baron De Reinacb. 10000 had been
paid by HIM to a certain contractor. whose
favor, like that of Hebrard and Reinach.
was indispensable to him.
What did you do with the six millions TO-
ceived by you for taking TO pieces. ship
ping to the isthmus and there reconstruct
ing machinery which. as matter OF fact,
you never even supplied in this countryf"
Il kept that sum-" replied NJ. Eitfel
lamely. because il formed part of my re-
Immigration for the risk l was undertake
ing"
"But your contract provided that you re-
ceive 30 per cent, TO be paid to you within
thirty days Of the date of sanding the or
ders. Now. you took 2.S50.0C0 francs from
the FORCES ct Chanters de Mediterranee as
percentage although the order was never
executed. Doyou think that this sum be-
longed to your
1T was not my fault that the order was
not delivered. l my self have often paid on
contracts which were never Acknowledged.
Besides. thisc0ntingency was cOptem plated
by the general candidates of the trans.
action"
Il consider such transaction void" re-
piled Judge Periver severely. "since 1t
was the result OF an error to call it nothing
more. The prosecutor general Will tell you
more about this tomorrow and at the sub
seQuent sittngs of the court"
M. Eiifel quailed visibly under these
words and the audience rose from their
seats to get better view of the manner In
whicn he bore the reproof.
NJ. MOrrey, the government accountant,
who recently examined the accounts of the
canal company, was called to testify upon
~f ~.
He stated that NJ. Eiffel had been paid
60 600 600 francs on bis contract and thai ne
made q profit of 33. 600 francs on it. At
this point the court adjourned.