The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1893-02-16
GOLD FOR PANAMA.
Forty Millions Lodge
Here.
WHO RECEIVED THE MONEY.
Seligman Says His Books VIII Show
That and That He Will Pro-
duce the Books.
special to THE MORNING CALL

NEW YORK, Feb. 15.-Big figures came to
the surface to-day when the special COM
mittee investigating the American end OF
the Panama scandal heard the testimony OF
Jesse Selgman of j. w. Seligman 81 Co..
one of the member of the American COM
mittee He testified that he first became
permanently connected with the American
committee in March, 1881. His connection
resulted from suggestion of the Paris
house of Seligman, in behalf Of Ferdinand
de Lesseps. that the Seligmans should act
as members of the American committee to
protect the interests OF the canal and TO
secure the neutrality of the United States
in relation to it. Similar communications
were sent to Drexel, Morgan & Co. and to
Winsow, Laner & Co. The craftsmanship
had been offered by Seligman to General
Grant. by authority of De Lesseps. with a
salary Of $4,000 year for his lifetime.
General Grant declining, the American
committee suggested Thompson.
In regard to the compensation OF the COM
mittee. Seligman said that it was at first
among Drexel, Morgan & Co., Winslow
Lanier & Co. and Seligman & Co.
For what purpOse?" asked Colonel
Fellows.
For the payment of salaries and for our
services. This agreement was subse-
quentIy modified. De Lesseps formed a
powerful banking syndicate abroad and in
this country. and allowed the committee 2
per cent on 300.00o,000 of the stock and
100000. O0O of the bonds Of the canal COM
pany. The members OF the syndicate in
this country were the American committee
This committee had to pacify the Panama
Railroad Company. The opposition Of
Colombia had to be resisted. and the COM
mittee looked after much of the purchasing
Of material and supplies, and gave great
deal of time to furlhering the interests OF
the canal In other ways.
"How much money was paid to the
American committee aliogether% asked
Colonel Fellows.
six millions Of francs. one quarter Of
which was paid when the committee was
formed. and the rest In six annual install
ments. To each of the banking houses
forming the committee there was paid
100000"
After the acquisition of the Panama rail-
road the American committee became direc-
tJrs in that corporation. and the eontr0-
veEsy with the Co lombian Government was
compromised by the payment of various
sums at different times. The American
bankers Of the canal company were Selig-
man & Co.. and in all SAC. COO, 900 was de-
posted with them to the credit Of the canal
company.
When Congressman Patterson OF Tennes-
see asked if there was any of this money
left. Seligman laughed and said that 1t was
all gone.
Then Patterson asked why Thompson had
been selected for chairman, adding, "He
was not great finaneier, was ?"
NO." said SeligmaD, "but he was great
statesman"
Seligman also testified that 100000 had
been rlaced on deposit to the credit of
Chairman Thompson in addition to the
$4,000.
"Will your books show how that amount
was expendedP' asked Patterson.
Seligman said that they would, and prom
ised TO produce them. and the committee
then adjourned to meet in Washington.