The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1893-01-14
Conclusive Evidence Against
Panama Canal Boodlers:
DeLEssEPs A PiTiAeLE OBJECT.
Ex-Officials Tell HOw Contractors and
Swindlers Robbed the Company.
Radicals Trying Hard to Implicats
President Carnot-Bafhut likely tn
Assist Them-Aristocrats Hopeful of
Restoration of Orleans Family.

PARIS, Jan. 13.-The Panama trial was
resumed this morning. A number of wit
nesses were called to show that favorable
reports made by the canal company were
known to be untrue by officials and that
lnsurmountabie difficulties. kno,sn to be
such by De Lesseps and others, were
brushed aside. Capt Fravsz. sueerintend-
ent OF the canal works. said he frequently
told Ferdinand de Lesseps Of the diff
culties that were hindering the enterprise.
Etlenne Martin, once chief secretary of
the canal company. described his ex-
perIence while in Office, and The scorn he
felt for the methods of the directors. The
unvarnished corruptness of the contract
system. he said, often rendered him so in
d'gnant that he protested to the board at a
meeting against the scandalous abuses
with which the whole canal work was
honeycombed. Eventually he resigned
rather than sign contracts for machinery
and supplies with. French FIRMS whose
bids, taken together, were SO, Geo. 600 francs
higher than the bids Of English asyd Dutch
firms. Every body in the management of
the company knew this sort of work was
being done, also that Baron Reinach and
other financial agents were getting enorm-
Gus commissions.
NJ. Hyeronius, chief accountant of the
Panama Canal Company, was questioned
at length by Presiding Magistrate, Peril
vier in regard to ''bons anon me" but his
answers were evasive, and he insisted that
he knew nothing Of the company.s opera
tions.
NJ. Reynier. the canal company's cashier,
made a statement as to the expenses Of
issues of loans. Careful questioning as 10
the names on the vouchers that he signed
ELECTED only the reply. ~ do not know"
NJ. Boudard, intrusted with part of
the press fund used by the Panama COM
pany, also had lapse OF memory.
Charles De Lesseps was called to testify
as to bonds payable TO bearer issued by
the Panama company. He was wfiite and
haggard, his eyes were bioodshot and he
spoke apparently with difficulty: He ex-
planned that of some 100000 francs in
bons du porteur 49, 900 went 10 II. l,aihut,
then minister OF public works, and 600, 900
francs 10 Cornelius Herr. The resi- of the
money was distributed in small amounts
among many persons whose favor was in
dlspensable to the company.
NJ. Obernorfter, a banker, testified that
as member OF the guarantee syndicate he
took shares to the nominal amount of
$4,000 francs, paying for them francs
and 90 centlmes each. His profits from
this source we've eventually 2GO GOO francs.
For suggesting the lottery scheme he re-
ceived some 1900, 600 francs. As this
proved to be an excellent operation he
never considered himself overpaiCi. He
said ha rpnaiUo4 Co. .~lr
the bourse in the company's interese.
NJ. Fory testified: Charles lie Lessons
told me he gave Obernorffer large sums to
reward him for suggesting the lottery
plan and to prevent him speculating in
the bourse against the interests of the
canal company"
Engineer Pisch, of the Ommenterv Iron
Works. said the canal company was
struggling constantly against the most
outrageous demands of contractors. De-
spite the opinion of expert engineers the
company usually yielded to the demand
NJ. Jolly, a Panama canal shareh older,
said the newspaper attacks upon the canal
company decided him in 1856 to sell his
shares. He consulted with Count Ferdi-
nand de Lesseps. who dlssuaded him from
doing SO. declaring that the attacks ema-
mated from an English source whlcfa was
not worthy of credence.
Senator Guichard, president of the Suez
Canal Company. gave testimony e1logistic
of both Count de Lesseps and his son.
Charles de Lesseps was recalled and
testified that the checks paid Arthur
Meyer, editor of the GdulOis, amounted to
1000 francs. NJ. de Lesseps was allowed
to make a statement in rebuttal of Mar
tins testimony. Martin knows NE too
WELL" be said, "to say ever did anv.
thing inimical to the interests OF the
shareholders. Martin declined, however,
10 modify or withdraw any of lis testi-
mony.
The evidence so far in is regarded ss as
suring convictions. The report OF NJ.
Florick, government accountant, contends
that the responsibility for the Paaama
frauds and deceptions rests uron the
whoe board OF Panama directors. be-
cause having squandered share os the
capital, they concealed the real situation
by false statements, in order TO obtain
subscriptions and protect their own in
terests.
The gravest rumors are aloat With re-
gard 10 the president. Several depates
vino have been most earnest in rusning
the Panama investigation declare that
they will not rest until Carnot is forced TO
resign. The strength OF the case against
the president depends upon the cresiihllity
ot BIjhut. ex-minister Of public wdrks,
and Carnot's friends claim that no faith
whatever should ne attached to Bait=ut's
4 scl0sures: that he is malignant against
Carnotfor not having protected him from
prosecution and wishes to drag the
prt-;dent down with him. On the
other hand. it is pointed on, bv
the enemies of Carnot that Ba!lsut's
charges agree with the facts IS known and
;lat Charles de Iesscps would prorably
corroborate Raihut if permitted 10 reeeal
nj he could reveal. The enemies Of Gar.
rot argue that the trial of the two De
tcsseps has been hastened TO brjn1 tsem
within the grasp Of Carnot ana keep tE!em
silent a 10 any connection OF the head
OF the state with Panama affairs. Tlev
argue, also. that Bourgeois has net lzaen
as earnest as he might have .zeen
i'll bringing the truth ~ lisht.
and that the opposition OF BOur~gois
to the arrest of Baihut was really
based upon his fear that Baihut might ac.
cu.e his former fellow minister. Carnot
In the meantime President Ca-not .re-
serves q serene temper and seems iiri Ger
ent 10 the assaults upon him. The assa1lts
are not confined 10 himself: The rad sais
condemn Nine. CaFnot FOR spentInz so
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