The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1893-03-09
PANAMA ROTTENESS.
Charles De Lesseps Tells Very Sen
sational Story.
He duplicates a Number of officials Who
Blackmailed the Panama
Company.

PARIS, March SIN the aSsizes court
today the trial of De Lesseps and others
for corruption In connection with the
Panama bonds bill commenced. The large
crowd attested that the interest had not
tagged. Charles De Le5seps sketched
briefly his services, and told the story OF
how the moneys OF the companies were
expended to subsidize papers and induce
bankers to do business.
The Judge asked when had he paid $780,
600 francs TO Cornelius Herr.
De Lesseps responded: an. Herr came
and told US he had great influence with
the government. GIVE did not feel we
could afford to ignore or offend him, as he
we should come to grief, and financiers
said, Unless you pay money to all the
banks under the influence of Gerardine
you will have all the newspapers In Paris
against you.' We still held out against
such methods, newspapers attacked US
and we were finally driven to paying
out enormous sums right and left und en-
couraged by the government"
q Leave the government alone,' called
Judge Des Jardius sharply Slight ap-
/ plause and storm of protests from the
audience greeted the admonition. Judge
Des Jardins asked, elbow did you come
to be introduced to Baihut?"
IA friend of the minister of public
works told Fontaine that the minister
was ready to introduce the lottery loan
bill, but would require a certain large
sum to defray expenses. I advised NJ.
Fontaine not to deal with him. After
ward Fon tame saw Baihut who said he
was against the measure. When l
/ learned OF this l said to M. FOntaiDe,
We'll, send for this gentleman. That
gentleman was NJ. Blondin and he de-
manded for M. Baihut ], 100000 francs,
and 375, GOO paid down.
While the negotiations were pending an
ordnance officer came TO me and saying
NJ. DeFreycinet wanted to see me. went
to see him and he said: M. De Lesseps,
there is question of a suit against you to
be brought by Baron De Reinach- That
would be very annoying. See now how
you can settle the matter. As a result
OF my visit to DeFreycinet / raised
my offer to Baron De Reinach from two
to five million francs which he accepted.
subsequently NJ Floquet said to me,
"Why do you not pay that money %
Baron De Reinach7 Ill were you would
do so,'' and so advising me tC
accede to Reinach's demand, questioned
The bill was then introduced"
When questioned as to his dealings
with Baron De Reinach, De Lesseps said /:
q paid him large sums to meet the ex-
/ DOuCCC VI lDOQCs All 4uduO1l16 LILA
posed heavy demands on us.n As to the
relations with Wilten, the lobbyist, De
Lesseps said: ST had no direct dealings
with the man. He came to me with Reinach
as representative of Fioquet. They said
I could render M. FIoquet great service
by setting aside 300, 900 francs for the pur-
poses which he would indicate. Next day
met NJ. Floquet and he said if could
not make this sacrifice, his feelings
toward the company would not be changed
I thought it would not be prudent to re-
fuse to do such an honorable gentleman
the service Laughter
'FWhen the time for settlement came
Arton brought from NJ. Floquet a re-
quest in reference to payments to news
papers. As did not wish to give more
than 300, 600 francs, however, | declined
to do business in such q way. l told
Arton would send bonds marked in the
corner with d letter F. and when the
total soould reach 800, GOO. expenditures
on this account must cease.' Loud and
prolonged laughter.
"All this was before voting on the bill, -
asked the judge.
Certainly replied NJ. De Lesseps.
The trial then adjourned until to morrow.