The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1893-03-09
DE LESSEPS ON THE STAND
Another Chapter of the Panama Canal
Scandal Recited in Court
The Witness Admitted Having Corrupted
Legislators. but Called 1t ExtortiOn-
Sharply Questioned by the Judge.


day was begun the trial of De Lesseps and
others for corruption in connection with
the Panama bonds bill After settlement
of some preliminaries between counsel. the
presiding Judge proceeded to examine
Charles de Lesseps In replying to the
questions of Judge Desjardines. Charles
de Lesseps sketched briefly his duties in
the Panama Canal Company. He man.
aged most Of the business connected with
tho advertising and tho guarantees syndi-
Gates. he said. He was employed for these
purposes by his father. As secretary gon-
eral he had given regular reports OF the
company's proceedings to his father.
"ln 1885 you asked the government to
introduce in the Chamber bill authoriz-
ing an issue of lottery bonds" said Judge
Desjardines Why did you then pay 100000
francs to Cornelius Herr"
M Herr came to my father and me and
told us that he had great influence with
the government" replied M; De Lesseps.
but We did not feel that we could at
ford to ignore or offend hlm-he was
too powerful. 1t was better to have
him for an ally instead Of our enemy.
oeived as q friend of M. Jules Grevy's fam
lily. was then convinced that here was q
man we must reckon with"
Your duty as "a man of honor was to show
such fellow the door," interpolated Judge
Desjardipes.
But we could not make an enemy of the
sleeping partner In La Justice" replied M.
DE Lesseps. IF We appealed to the law
We should have come to grief. The
tnanclers sald.. unless you pay money
to all the banks you will have
all the newspapers In Paris against
you.' We still held out against such meth.
ods; the newspapers attacked Us and we
were finally driven to paying out enormous
by the government"
leave the government alone." called
Judge Desjardines, sharply. Slight ap-
plause and storm of protests from the
representing III. De Lesseps for havlng
paid so much money belonging to subscrib-
ers to Cornelius n. Herr, without q shadow
of justification" Judge Desjardines asked,
How did you come to be introduced to NJ.
Baihautf"
"A frend.o of the Minister of Works told NJ.
ontane that the minister was ready to in
troduce the lottery loan bill, but would
require certain large sum to
detray the expenses. We feared that NJ.
Fontane's informant was only pretending
that he came from the government" re-
sumed NJ. De Lesseps. "and so l advised M.
tontane not to deal with him. Afterward
Nj. FOntane saw III. Baihat. who said he
was against the measure. When i learned
of this l said 10 NJ. Fontaine, Well. send
for this gentleman, then"
'4Ou remember giving that orderf" asked
the Judge.
II never denied it. The gentleman was
NJ. Blondin. He demanded for NJ. Balhaut
100000 francs, and SO. 900 were paid down.
The bill was then introduced"
Then the fact of corruption is estab-
lished," said the Judge.
1t was eXtortIon," protested M. De
Lesseps. M Baihaut told me that he had
been charged by the Cabinet with the task
OF studying the Panama canal matter. and
that the introduction of the bill depended
entirely upon him."
When questioned as to his dealings with
Baron DE Reinach. nj. De Lesseps said: II
paid him large sums TO meet the expenses
OF the ISSUE. ALI the inanciers imposed
heavy demands upon us. Reinach was one
OF them. offered him o part worth 2, ,000. 900
francs In the underwriting syndicate, but
was obliged to raise the offer TO 5,00O,000
he demanded 100000. even 12,000.000.
M. Herr. who bad enormous infia-
exceedingly exaoting. / refused to
give such an exOrbitant amount, although
he protested that he would be lost man
and the whole enterprise would be upset If
persisted In my refusal. While these ne
gotiatioDs were pending an ordin-
ance officer came to me to say that De
treycinet wished to see me. | went
to see him and he said: M. De Lesseps,
there is question of suit against you to
be brought by Baron De Reinach. That
would DO very annoying. See now how you
can settle the matter / explained to NJ.
De FreycInet that the question was one of
extOrtiOn by Herr and Rlnach, who were
trying to make me pay debts not my own.
As result OF my visit to NJ. de Frey cinet.
l raised my offer to Baron De Reinach
from 100000 to 5000, 900 francs, which
he accepted. Subsequently M. Flouquet
said to me. why do YOU not pay that
money to Baron De Reinsch; if / were you
i would do SO and so-advising me to ac-
cede to Reinach's demand"