St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1893-01-12
Haulers Of the Legal Seine in
the Panama Canal Frauds
Well Rewarded.
Damaging Admissions Made
by M. Eiffel, the Canal
Contractor.
He Received 6, 1000, 900 Francs.
Which He Used for Bril-
cry Purposes.
M. de Freyeinet Appears Be-
fore the Judge dim
struction.

OI0i lOn GS oNPSt AA"AA W. - Oti''N''>s
Baron Cottu and M. Eitfel, accused of
completely in the Panama canal frauds.
was continued in the court of appeals
today. President Perivier at once pre-
ceeded to examine NJ. Fontane. LII
response to the questions put to him M.
FOntane said that shortly after the
formation of the Panama Canal COM
pany he was placed in charge of the
company's business with the press. He
detailed at length what his dnties were
and gave much verbal information as
to the bribery of newspapers to pre-
vent hostile attacks upon the company,
and also to prevent the publication Of
matter that would have shown the true
condition of affairs Of the lsthmus of
Panama. Nj. Fontane stated that he
had held his position as manager OF the
company's press affairs until 1885, when
the eXactions of the newspapers became
so heavy that he was compelled to aban-
don the post. Since that time he had
been merely the private secretary OF NJ.
de Lesseps. In the course of his exam
NATION NJ Fontane stated that he had
distributed to the press only 10000
francs in drafts
Payable to Bearer.
Upon the conclusion of NJ. FOntane's
examination Baron Cottu was called
upon Dy President Pcrivieu to explain
his connection with the bribery and
corruption of officials and others. Baron
Cottu declared that his duties as a di-
rector of the Panama company were
merely technical. He dealt exclusively
with the international administrative
work OF the company.
Interest in today'S proceedings was
centered in the examination OF Nj.
Eitfel, the contractor. The questions
put to him by the court resulted in
lively fencing between the president
and M. EitfePs lawyers, who raised OBJ
lection after objection to the interroga-
lions. The legal sparring occupied con-
siderable time and afforded amusement
to the audience. Finally Nj. Eitfel ad-
mitted that he had cashed checks for
II, 900, 900 francs, which had OStenSibly
been drawn to pay for machinery, while
he had actually expended only 10000
francs for that purpose. Responding to
further questions, NJ. Eiffel said that he
had given 100000 francs to NJ. Heb
rard
To Secure the Contracts
with the company and 100000 francs
to Baron de Reinach, in order to secure
the atter'S influence in his favor with
the government. 1t required consider
able questioning to bring M. Eltfel to
the admission that besides 100000
francs given to NJ. Hebrard and 2,O00,-
600 francs given to Baron de Relnach,
1900, 200 had been paid by him to a GER
tain contractor whose favor, like that OF
Hebrard and Reinach. was indiSpenS-
able to success. Presiding Judge Peri
vieS asked:
"What did you do with the 100000
received by you for taking to pieces and
shipping to the isthmus and there re-
constructing the machinery which, as
matter OF fact, you never even supplied
in this cOuntry?'
Il kept that sum-" replied M. Eitfel,
tameiy, because it formed part OF my
remuneration for the risk L was under
taking"
But your contract provided that you
receive 80 per cent, to he paid to you
within thirty days of the sending The
orders. Now, you took ISIS, 900 francs.
from the FORCES at ChanterS de Mediter-
rance as percentage, although the or
der was never executed. Do you think
that this sum belonged to your"
Not His Fault.
''It was not my fault that the order
was not delivered. l myself have often
paid on contracts which were never
executed. Besides. this contingency was
contemplated by the general condition
of the transaction"
NJ consider such a transaction void"
replied Judge Perivier, severely, ''Since
it was the result OF all error, to call it
nothing more. The Oproceurer general
will tell you more about this thing
tomorrow, and at the subsequent sit
tingS Of this court"
NJ. Eltfel quailed visiDly under those
words, and the audience rose from their
seats to get better view OF the manner
i'll which he bore the reproof. NJ. Flor
rey, the government accountant, who
recently examined the accounts OF the
canal company, was called to testify
upon the conclusion of NJ. Eitfefs eX-
animation. He stated that NJ. Eiffel had
been paid so, 900, 600 francs on his con-
tract, and that he made Il profit of 49,
O00.C francs on 1t. at this point the
court adjourned.
Ese Freycinet Examined.
1t is reported that NJ. de Freycinet, ex-
minister OF war, and NJ. Floquet. eX-
president Of the chamber of deputies,
were examined by NJ. FranQueville,
judge Construction, today i'll connection
with the Panama charges. The two
statesmen were not under arrest or &C
cusatiOn, at least in name, but were
present as witnesses, although, of
course. liable to accusation should their
acknowledgements justify such action.
The commission OF inquiry appointed
by the chamber of deputies to examine
INTO the Panama scandal held meet
ing today ana heard the testimony OF
members of the lottery loan commits
sion. The evidence goes to show be-
You'd any reasonable doubt that NJ.
SanSa Leroy was to a great extent, if
not completely, guilty OF the charges
that have been maid against him. Nj.
Jolibbes and Pellatin moved that the
commission inquire into the contracts.
They declared that 1900 900 francs had
been virtually stolen. and light OH the
subject was necessary. This motion
was agreed to.