The herald., 1893-02-16
BIG FIGURES CAME UP.
THE AMERICAN END OF THE PAM
ANA SCANDAL.
Jesge 5eligman Testif ss as to the Enor-
NOUS Sums Paid the Amer
lean Committee for zncon-
sequentisl Services.

New YORK, Feb. 15.-Big figures
came to the surface when the special
committee investigating the American
end of the Panama scandal heard the
testimony of Jesse Seligman of J. w.
Seligman & Co., one of the members OF
the American committee. He testified
that he first became permanently iden-
titled with the American committee in
March, 1881. His connection resulted
from the suggestion of the Paris house
OF the Seligman's in behalf OF Ferdinand
de Lssseps that the Saligmans should
act as members OF the American COM
mittee to protect the interests of the
canal and secure the neutrality of the
United States in relation to it. Similar
communications were sent to Drexel,
Morgan q Co. and Winslow, Lanier q
Co.
The Craftsmanship had been offered by
Seligman to General Grant, by author
ity of De Lssseps, with 8 salary OF $25,-
600 for bis lifetime. General Grant declin-
ing, the American committee suggested
Secretary OF the Navy Thompson. In
1880 he asked Thompson to become
chairman of the committee. Thomp-
son, when he had received the consent
of President Hayes, wrote that he
would accept.
"For our services we OF the American
committee were to receive 81 100000
stock" said Seligman, Ito be divided
among Drexel, Morgan & Co., Winslbw,
Lanier 4 Co. and Seligman & Co."
For what purpose ?" asked Colonel
Fellows.
"For the payment of salariea for our
services. This agreement was subse-
quently modified. De Lesseps formed
powerful banking syndicate abroad
and in this country, and allowed them 2
per cent on $500, 900 900 of the stock and
$500, 100000 OF the bonds of the canal
company. The members of the syndi-
cate In this country were the American
committee. This committee had 10
pacify the Panama Railroad company.
The opposition of Colombia had to be
resisted. The committee looked after
much of the purchases of material and
supplies, and gave great deal of time
to furthering the interests of the canal
in other ways"
"How much money was paid the
American committee altogether ?" asked
Colonel Fellows.
"Six million francs, one quarter OF
which was paid when the committee
was formed and the rest in six annual
instsllments. To each OF the banking
houses forming the committee there
was paid $400,000 After the acquisition
OF the Panama railroad the American
committee became direc tors. The con-
troversy with the Colombian govern
ment was compromised by the payment
of various sums at different times. The
American bankers of the canal company
were the Seligman company. In all
100000 was deposited with them to
the credit of the canal company"
When Congressman Patterson of Ten
nessee asked if any of the money was
left, Seligman laughed and said it was
all gone.
Patterson asked why Thompson was
selected for chairman, adding: "He was
not great financier, was he?''
Seligman also testified that $3.50, 900
had been on deposit to the credit of
Chairman Thompson, in addition to the
$40, ,000,0 ,000
"Will your books show how that
amount was expended?" said Patter-
son.
Seligman said they would, and prom
ised to produce them. The committee
adjourned to meet in Washington.