New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-01-14
PROBING PANAMA CONTRA CTS.
FORMER EMPLOYEES DESCRIBE ~ COURT
TIE RECKLESS SQUANDERlNG OF FUNDS.

CHARLES nr LrssPs SAYS THE "GhCLcISS'
EDITOR GOT 1000 FRANCS STRANGE ToR-
GETruLNEss OF PRESENT OFFICIALS OF
THE CANAL CoMPANY-M OBERNDoERE
FERs NEUTRALITY-SUSPICIOUS.
Frs on THE STAND.
trial to-day justified the advice given TO the
Parliamentary Commission of Inquiry by viscount
de villehois- Mareuil that they should devote
themselves to investigating the dishonest con-
tracts made 10y the Canal Company. Through
such contracts he said, the company had squan-
dercd sums compared with which the corruption
fund spent upon the press was trifc. Tho
testimony of Captain Fraysse and NJ. Etiennc
MARTIN t,lay corrohorated the Niscounts
statements.
Captain Frayssc after retiring from the Navy,
was sent to the Isthmus as Controer-General. lie
saw at once that success was impossible he said
to-day, and that money was being squandercd
rckcssly upon whose aim was 10 got as
much as possible without doing the work which
they had agreed to do lie became discouraged,
and returned to France soon after having arrived
at the Tsthmus. He had had many conversations
with Ferdinand de Lesscps in regard TO the sit
uation on the lsthmus, and had often told DE
Lcsscps that the difficulties encountered were
40 serious as 20 hinder the execution Of the
enterprise Captain Fraysse gave his testimony
in a monotone which he did not vary even
when describing the utter Eopelcssness Of the
whole canal enterprise and the ahominabe meth
ode practised by officials and contractors on the
Isthmus.
VI Etiennc Martin, once chief secretary of tho
Canal Company. described with gusto his eX-
perienccs while in Office and the scorn he felt
"a tbo1 . tbo no nishp
corruptncss of tl' contract system, he said. Of
ten made bin so indignant that he protested
20 the Board AZ their meetings against the scam
dalous abuses with which the whole canal work
was accomplished. Eventually he resigned rather
flan sign contracts for machinery and supplies
which French firms, whose bids. taken together,
were 2s.0o0,0o0 francs higher than the bids
Of English and Dutch firms. The directors had
declined 10 listen TO his protests against this
iniquitous barrain, and had left him the al
tentative Of signing or resirnirg his place so hc
resigned Everybody In the management Of the
company knew that this sort Of work being
done also that Baron Rcinach and other financial
agents were getting enormous commissions
Charles dc Lessrps was recalled to testify as
10 the checks payable 70 bearer issued by the
Panama Canal Company lie was white and
hageard his eyes were hloodshot and hr spoke
apparntly with difficulty. ne h'sita .! -
reatedly and often sank his voice that only
persons within few yards could hear his tcsti-
mony He explained that of about ,j0o.0 900 francs
in bons au portcur," 375,0 900 francs went TO
~ Baihaut. then Minister Of Public Works, and
600. 900 francs 20 Cornelius Herr. Tho rest Of
the moncy was distributed. in small amounts,
| among mary persons whose favor was indispcn-
| sable 10 the company.
In wrangle with Presiding Judge Pcrivicr, d.
IL ,f,
| TO bearer were given 10 Arthur Meyer. Editor Of
| the "Gaulois." Ring subsequently recalled. he
.,estifcd that the checks paid TO Meyer amounted
| 10 100000 francs.
| AZ his own request ". do Lesscps was allowed
| 70 make a statement in rebuttal Of Fticnnc Mar
| tins testimony. M. Martin knows me to- well. y
he said to say that | over did anything inimical
to the interests of the shareholders"
N. Martin defined. however, to modify with
| draw any OF his testimony
| NJ 1iyeronlmus, the Chief Accountant Of the
Panama Oaral Company, was questioned at length
| by President Periyier in regard TO the bons
| anonymes. NJ HycIonimus declared that he
thought the course followed in the matter Of thc~c
| checks was adopted in order TO keep the names Of
these who received them from the officials of the
company. Upon receiving this answer. Pre- -ident
Pcrivier remarked
when people are acting uprightly, their pro-
| ccedings are not surrounded with such mystery
| Further questions were put 70 the witness, but
| nc gave evasve answers, and ii was evident that
| he was determined TO say nothing that would com
| promise the company. He insisted that lie knew
| nothing OF the company's operations Though
| both President Pcrver and NJ. Tanon, the Pro-
| cureur-Gencral, piled him with questions. they
| failed 10 elicit information that would throw
| light on the methods pursued by the company
NJ. Landrobie, who examined the books of the
| Panama Canal Company in 1880. and wrote n
| pamphlet about them, gave his opinion that eXces-
sivc amounts were paid to contractors for the
work to he done. The compensation for cancclla-
ton Of contracts, also, had been cxorbant
| VI Rcynier, the Canal Company's cashier, made
statement as TO the expenses Of issues and loans.
Careful questioning as TO the names Of the vouchers
that he signed ELECTED only the reply: Il do not
! know
"who received the vouchers for 100000
| francs?r asked Judge Perivicr.
| Il do not know
| "You do rot know? That is strange. II seems
10 me I should have been more irquisitve if
had been in your place.
NJ Ioudart who succeeded VI. Rcyner on the
| stand is Cnief Clerk of the Sucz Canal Company
| He was ntruscd with part Of the press fund
| used by the Panama Company, but when under
examination to-day he pToicssed I'd nav" ioT2ot
ten the names of all the recipients, as well as the
amounts disburscd by him. judge Perivicr re-
| marked that he had peculiar memory.
NJ Obrrndocrfrer the banker who suggested the
plan of lottery loan, testified that as a member
Of the guarantee syndicate ne took shares TO the
nominal amount of 6,173,000 francs, paying for
| them francs 80 centimes each. His profits from
| this source 10000 francs. For suggest
| ing the Bottery scheme he had received about two
| million francs AS this had proved to be an en-
cellcnt operation he had never considered himself
as being overpaid.
"Was there any correspondence as to these