New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-02-16

YORK BANKS WITH THE CANAL
oh. Panama Investigating Committee Of Congress
,.or the testimony yesterday of Jesse seiglnan. OF
T. W scliCman d. CO., and J. Hood Wright. OF
80, Morgan q Co., representing two Of the three
,rltnr firms comprising the American committee
:, tho Panama Canal Company. Mr.. Adams, repre-
,,rc the house of Winsow, Lancr d Co., the
h,,d member Of the committee, was present, but was
vs., called TO the stand. Chairman Fellows announced
- ,alfpast !! O'Clock that The members Of his COM
,,,oe we're obliged to return TO Washington mt once
- occount OF pending legislation requiring their pres
" He said the committee would return In a few
sors and continue the inquiry. Congressman Powers
{, sick with erysipelas at his hotel. The other com.
n,ttecmen-C Congressman Patterson, Geary and oorer
s,e present at yesterdays hearing. with the chair
man.
Mr. Sccman testified that in July, 1880 he re-
o.ived from seligman FrercS. bankers IN Paris, on
half OF Ferdinand de Lesscps the suggestion that
. committee be formed In the Emitted states to pro-
,ct the interests OF the Panama Canal Company here,
rd 70 aid in irsllring the neutrality OF the company.
,rsr some prCliminary negotiations permanent
,0mmittee consisting of the banking houses before
rsnttoned was formed in March. 1881. As to the
azure of the duties to be discharged, they consisted
n the adjustment OF controversies between the Coom-
Man Government and the canal company and between
,bst company and the Panama Railroad Company,
as well as attending to many minor affairs In the way
~ upmoting the enterprise.
AMERICAN OPPOSITION.
Mr.. selisman said In reply TO questions that there
os undoubtedly feeling of opposition In the United
states 10 the construction OF the canal across the
1s.bmus by foreign capital and an apprehension
that the French Government might be supporting the
onerprse Which would be regarded a violation
q, the principles OF the Monroe doctrine. lie believed
the American people would have preferred 10 have
De Iesseps select the Nicaragua route. There was no
oueston that De LeSseps thought that a committee
q, representative here, identified With the canal
COMPANY would have the elect of creating more
favorable sentiment among the American people and
Of alaying apprehensions as to the possible Interior
motives underlying the enterprise.
Tie witness SAID that as personal friend OF Cen
er0l Grant he had offered behalf of De LesscpS
tho office of chairman of tho American committee 10
the ex President, al a salary OF S2oOoo per ahnnn
during the rest OF his life, but the offer was DECLINED
Tben Mr. Selgman addressed letter TO RichHM W.
Thompson, at that time secretary OF the Navy. lie
had been frequently brought into contact with Mr..
Thompson from the fact that seligman Brothers. of
Iondon spoadens Of J. d W. Selicnan Co..
in that city the financial agents of the Navy d. part
ment Mr.. Thompson was III the West when Mr.
segman addressed him, and replied that he could not
sooept the Office without consultation with President
HAYES a member OF whose Cabinet he was. sub
seouently he wrote Mr.. Seigman that he would ac-
Dept, and S1OTuy aler"diu he IeslsHo" MS oi"'c III
the Administration.
In March 1881 the permanent committee
ranized with Mr.. Thompson chairman at salary
OF e2<,oOO year. Mr.. DE Lesseps expressed pleas
ure At securing Mr.. Thonpsons services.
THE TERMS OF AGREEMENT.
Tho original proposition associated With the organ
ilaton of American committee was that it should
receive 81 800 OOOto be divided between the three
firms Later there modification of this plan.
Through seligman Freres, i'll Paris, IL WAS proposed
10 iesm q powerful group OF bankers and captihss
including American committee. These were TO
receive per cent upon $500, 100000 of bonds and
s9oe 900 600 OF stock which was TO be issued otter
by way of compensation At THIS point OF Mr. scig-
mans statement Chairman Fellows saic
"WeQ, Mr. Selgman, for these salaries or this COM
pensaton something was expected 10 be done, ana
would be glad If you would state just what you did
in the way Of protecting the interests OF the Panama
Canal Company"
Mr.. SeQgmsn replied: ain the first place we at
tended partly TO the purchasing of materials, pro-
Visions and machinery. In the next place great
many difficulties constantly arising. The Pan
ana Railroad Company at one time would not stop
At stations convenient to the canal company They
alleged that the canal company was trespassing on
their lands aud would not permit the work 10 pro-
ceed They professed to have certain grant from
the Government which in its terms prevented the con
strucoo of the canal All these things took time in
ton We had a great many controversies with the
Colombian Government IN relation to payments
Mr.. Selignan said that the purchasing of supplies
for on the Istlnus was for the first two years
largely entrusted 70 Mr. ColIe, and after that TO his
SUCCESSORS.
THE CRAPo RESOLUTION.
The witness said be had no RECOLLECTION of the So
called Crapo resolution, introduced in the XLVllth
Congress. lie he'd no knowledge OF counsel being
am pLoved fo aunerr before Committee Foreign
Affairs of the House OF Representatives. at is my
impression he said that all matters OF this KIND
were left To Mr.. Thompson" The witness was not
aware of any meeting Of the committee u authorize
the employment Of counsel for such purposes
"Are you aware Of any payments made for the ser
vices OF oounsell" asked
"My impression is there was"
o.-Do you know to whom1 Al think to Colonel
Ingersol. but do not know the amount paid,
o-Do you know Of the employment Of shelabarger
Wilson, Of Washinston' Any impression Is they were
employed as counsel in all litigation that might arise
o-Do you know Of any litigation pending in this
country to which the canal company was party Al
Go not.
Q.-Dopt you know, matter Of fact, that counsel
were employed solely for purpose Of opposing the Crpo
resolution and appearing before the Committee On Foreign
Affairs II. Congress? Al do not know.
o<0ut Of what fund were these sums paid' A'-out
Of the American committees fund
o.-You had certain fund sent TO ysu here. How
much did It amount Any impression is that during
eight years committee Getting 1t amounted to
about $3.50 600.
Mr. Seligman then explained that the salary OF
Mr. Thompson WAS not paid out Of the American
committee fund. but by drafts made directly on the
Panama Canal Company in Paris, through the house
81 seNgnan Freres The salary OF Mr. Colne-S3,o oo-
was paid out OF the American committee fund as
were the salaries Of his assistants the charges hr
Office rent Incidental expenses and the Hike There
was also paid he said from the same fund, Interest
On the bones and stock which were sold here
What amount Of compensation did the various
members Of the committee receiver" was asked.
"They received 5000 900 francs altogether OF
which one.fourth paid upon the formation OF the
company, being about 100000. and the lest was
paid In six annual instruments"
Tn. witness said that this sum Of 81 200 OO0-thc
equivalent Of GOOO 900 by the COM