The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1893-01-12
.EIFFELPI7 UPON THU RACK.
His Story About the Frauds in
the Panama Canal.
FoNTAINE ON THE STAND
The Rotten Condition of the Company
Fully Shown.
Money Flowed Like Water Through q
sieve-Enormous Sums Paid Out for
Influence of Certain Persons
Eifeps Profit in the Deal.

PARIS, Jan. 1.-THE trial of Charles
De Lesseps, Fontaine, Cottu and Eiffel.
accused OF completely in the Panams
canal frauds, was continued in the court
OF appeals today. Long before the houl
set for opening the court the room was
filled to the utmost capacity with a Grove
of interested spectators, to most of whom
the prisoners were well known. The
audience discussed the evidence given by
De Lesseps yesterday and the general
opinion seemed to be that he had not bet
tered his case by his statements regard
ing the transactions between himself and
the late Baron De Reinach. Little conf
dence is placed in his declaration that he
had no knowledge as to the uses to which
the large sums of money he handed Baron
De Reinach were to be put, beyond the
fact that they were to be expended for the
canal company.
! When court solemnly convened Presi-
dent Perivier proceeded to examine Fon-
tame, who said shortly after the forma-
tion OF the Panama Canal company he
was placed in charge OF the company s
| length what his duties were, and gave
much valuable information regarding the
bribery of newspapers to prevent hostile
attacks upon the company and prevent
publication of matter that would have
shown the true condition OF affairs on the
Isthmus of Panama. Fontaine stated that
he held his position as manager of the
company's affairs until 1885, when the
exactions OF newspapers became SO heavy
Io, lfNr,l
sition. Since that time he had been
merely private secretary of De Lesseps.
He had distributed to the press only co.
600 francs, in drafts payable to bearer.
Upon the conclusion OF Fontaine's ex-
animation, Baron Cottu was called upon
to explain his connection with the bribery
and corruption OF officials and others.
Cottu declared his duties as director OF
the Panama company were merely me-
chanical. He dealt exclusively with the
internal administrative work of the COM
pany.
In the examination of NJ. Eiffel today
he admitted he had cashed checks Tor
u Zoo, 900 francs which were ostensibly
drawn to pay for machinery while he ac-
tually expended 1900, 600 francs for the
purpose. He gave 1000, 900 francs to NJ.
Hebrad to secure contracts with the COM
pany and 2 ,0O0, 900 to De Reinach to Sc
cure the latter S influence in his favor
with the government. Two millions
were also paid by him TO a certain con-
tractor TO whose favor, like that of He
brad and Reinach, was indispensable.
All these admissions were made only after
a severe course of questioning.
The presiding Judge then asked Eiffel
what ne did with the 100000 francs re-
ceived by him for taking the piers and
shipping them to the Isthmus and recon-
structing machinery which as matter OF
fact he had never even supplied in this
country.
II kept that sum- replied Eiffel,
remuneration tor the risk l was under
taklng.''
"Your contract said the judge, "pro-
vided that you were to receive so per
cent, to be paid within thirty days OF
sending orders. Now you took 2S5, 0GO
francs from one firm as a percentage, al
though the order was never executed"
Eiffel replied that it was not his fault
that the order was not executed; besides
this contingency was contemplated by the
general condition of the transaction.
~ consider such transaction void !"
said the judge severely, ''since it was a
result OF error, to call it nothing worse.
The prosecutor general will tell you more
about this tomorrow, and at subsequent
sittings." Eiffel quailed visibly under
these words.
M. Florry, government accountant,
who examined the accounts of the COM
pany, testified that Eiffel had been paid
So, 900, 900 francs on his contract and made
profit of SO, 000,0 600 francs on it.
Deputy Hubbard announces his inten-
ton to request the ministry to take steps
20 hasten the next general election. The
ministers decided to agree to the urgency
of Hubbard S request and Interpolation
and make the reply practically minis
terial declaration. According to semi
official statement issued tonight NJ.
Baihut, when he was minister Of public
works in 1886, submitted to his colleagues
in the ministry a mutilated version of
Engineer Rousseau's report on the Pan
anna canal project. Rousseau, it is now
known, condemned the whole enterprise.
1t is reported that NJ. De Freycinet, ex-
minister of war and M. Flouquet ex-
president of the chamber of deputies were
examined by Magistrate Franqueville.
They of course are not under arrest or ac-
cused. With reference to the statement
of Charles De Lesseps attention has been
called to the statements of provost De
Launy and M. De Lamarzelle. The latter
said he was told by Charles De Lesseps
that whenever a company issued fresh
capital large sums of money had to be ex-
pended on the press. Some financial con-
Germs even made newspapers a monthly
allowance, but in the case of the Panama
company Journalists who focked to it's
Office whenever fresh issue was made
received nothing. In spite OF this the ex-
penses of different issues. reached con-
siderable sum. They did not, however,
amount to 6 per cent.
Various financial houses who formed a
So called guarantee syndicate and whose
cooperation was Indispensable received
large sums without really guaranteeing
anything. Whenever fresh issue was
announced numbers of people called on
the company and offered assistance.
Most of these were Jews. 1t was not
only bankers who made these offers but
all sorts of influential persons who
would praise or decry operations, as they
received more or less money. De Les5eps
added that there were nothing astonish-
ing in the large profits made by contrac-
tors. Their high charges could not be
cut down. They ran great risks.
De Lesseps concluded his statement
with the words: "If certain persons, or
certain things are attacked. the success
of the undertaking will be compromised
and those who make those attacks will
contribute to the taking over of the en-
terprise by Americans. Those who at
tack the Panama project are people who
wish to strike blow at the Suez canal. -
Rreakiug I'm a stock Farm