The morning call., 1893-02-07
CLEANS OF TRUTH.
Beginning the Panama
Inquiry.
SOME MONEY FROM FRANCE.
MIR. Colne Spent Ii, but He IS Afflicted
With Most Grievous Lapses OF
Memory.
SOME MONEY FROM FRANCE.
Special 10 THE MORNING CALL

TO this country in 1881. He said that the
American committee was composed of the
representatives Of J. w. Seligman & Co.,
Winslow, Lanier & Co. and Drexel, Morgan
& Co.. and was organized tor the purpose
Of taxing care Of the interests of the canal
company In the United States and to look
alter loans and subscriptions ana the puT-
chase Of machinery and supplies. Its presi-
dent was r. w. Thompson. ex-Secretary Of
Ihs Navy.
After March, 1887. the witness took charge
of matters relating to the Panama Railroad
Company aud TO the business of soliciting
Ioans During the time be vas in charge OF
the purchasing department he was also the
disbursing agent of the company in New
York.
BE obtained money for the payment of
bills from Seligman & Co., who held the de-
pests OF the Panama Canal Company,
which company is French corporation.
while The railroad company is chartered by
the State of New York.
what relationship have the two?"
asked the chairman Of the committee, land
how came it that you wsre appointed by
the Panama Canal Company and had charge
Of the affairs Of the Panama Railroad Com
pany?"
81 suppose you are aware" replied the
witness, that the Panama Canal Company
Is he owner of part of the stock of the
Panama Railroad Company? The build ing
of the canal at Panama was necessarily
mixed uD with the affairs Of the Panama
Railroad Company. We we're 'go-betweeus'
between the American committee and the
Panama Canal Company"
Mr.. Colne stated that the capital stock Of
the Panama Railroad Company was 10000
shares, Of which 6s. .534 shares we're owned
bF the Panama Canal Company. The re-
naming shares were owned principally in
the United States. He did not know by
whom.
"Was it necessary in the organization of
the American committee" the chairman
asked. THAT its officers should be stock
holders?"
''Yes, sir. They acquired stock from the
home company to the extent of few
shares. Mr.. Thompson had something like
ten shares, think. This stock was acquired
by the Panama Canal Company in 1851
subsequent TO the organization Of The Amer
team committee"
The witness further stated that subscrip-
lions were solicited in connection with the
loans solicited in France, but that little sue
cess attended these efforts ia this country.
He could not state the amount of the loans
obtained in France prior to the formation Of
the American committee.
The chairman suggested that perhaps
more pointed inquiry might refresh his
recollections, ana asked if it were not fact
that some Of these loans were absolute fail
ures, upon the ground that the American
Government would not permit the acquisi-
tIon of the Isthmus Of Dsrien by a foreign
corporation.
Mr.. COlne could not say upon what
grounds He had only heard a rumor to
that effect. 1t was the impression OF the
witness that the organization Of the Amer
lean committee contributed greatly to the
success of the loans in France. he remem-
bered the Grape resolution in the House of
Representatives and the Burnside TesOlu-
tIon in the Senate, but did not know Of any
steps taken by the American committee in
reference to either OF the Congressional in
vestgations. He recalled that the books OF
the company had been called for during
those investigations. As disbursing agent
of the committee. witness affirmed that he
disbursed s., 900, COO The fund sent 10 the
isthmus was independent of the fund en-
pl0yed by the American committee. The
former was in charge of persons supervis-
Ing the work at Panama. Mr.. Thompson
put IN an appearance only three or four
times a year. His salary was $4,000. aud
he received his pay monthly.
The American committee" said Mr..
Colne, was organized for the purpose
OF preYe ntiDg a conflict of interest between
the French Government and the American
Government and also with view of pur-
chasing such machinery as it was believed
could be best purchased in this country"
He could not state what salaries were
paid Drexel, Morgan & Co. and Sellgman &
Co.
About the time of this investigation
under the Crapo resolution" asked Mr..
Geary, "did you know Of any attorneys who
appeared before the committee here%
Yes, sir"
"Who paid themP" asked the Calfor-
niau.
"The American committee"
"Was Mr. Ingersoll one of themT
Eyes, sir"
The witness had ne vouchers In refer
ence to that matter. The attorneys were
MessTs. Shellabarger & Wilson and R. G.
IBgers0ll. Mr.. Louderback was not one of
the attorneys at that time, nor was Mr..
Evarts or Mr.. Choate. Mr.. Colne would
not say that no moneys were expended in
the United States on behalf of the canal
company except such as he had paid out.
He drew the checks on j. w. Selgman e.
Co. and handled all the money. He did not
know how much money had been sent to
parties representing the American commit
tee The Thompson salary was paid by
Seligman & Co. Witness could not tell
whether attorneys fees appear on the
books or not Sometimes Seligman
& Co. would let contracts and
employ people. Witness transacted all
his business through the American CON-
mittee. He testified that orders were re-
ceived from the home company to purchase
the STOCK Of the railroad company. The
canal company was impossible without the
railroad company. The negotiations for the
purchase were all had with Mr.. Park, the
president. Witness thought that the rail
road stock might be a little less than $40.
Mr. Colne said he was authorized TO draw
on Sehgman & Co. by the American CON-
mittee. An estimate was made Of how
much money was required, and when that
was ascertained credits were opened with
Seligman 81 Co. and checked against. At
one time there was a credit account with
Seligusn & Co. of 100000. This account
was in the name of the american COM
mittee." He received authority to sign all
checks as secretary OF tie american COM
mittee." but knew nothing whatever of
deposits that had been made. His salary
was $1,000 He knew OF no moneys being
paid to attorneys other than Shellabarger
and Wilson and Colonel Ingersoll. The
latter received 5000; Shellabarger aud VIII
son received $500.
"What were they employed to do?"
queried Mr. Patterson.
II do not know" replied the witness
''Where did they render their services to
the committee9"
"As far as / know they were employed
b,y NJ Thon,nson Ruf do mt knoW anv-