Los Angeles herald., 1893-01-12
THE PANAMA TRIAL.
Examination of the Accused-M. Efffe
Damaging Admissions.

THE PANAMA TRIAL.
Examination of the Accused-M. Efffel' q
Damaging Admissions.
PARIS, Jan. 1.-The trial OF Charles
de Lesseps, Fontane, Cottu and Eiffel,
accused of completely in the Panama
canal frauds, was continued in the court
OF appeals today. Long before the hour
set for the opening of the court, the
room was filled to its utmost capacity
with crowd of interested spectators. to
most of whom the prisoners were we'll
known. The audience discussed the
evidence given by De Lesseps yesterday
and the general opinion seemed to be
that he had not bettered his case by his
statements regarding the transactions
between himself and the late Baron de
Reinach. Little confidence is placed in
his declaration that he had no knowl-
edge as to the uses to which the large
sums of money he handed the baron
were to be put, beyond the fact that
they were to be expended for the canal
company.
NJ. FONTANE EXAMINED.
When the court solemnly convened
President Perivier proceeded to examine
Fontane. who 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 duties we're,
and gave much valuable information
regarding the bribery of newspapers to
prevent hostile attacks upon the COM
pany and prevent the publication of
matter that would have shown the true
condition of affairs on the isthmus of
Panama. Fontane stated taat he had
held his position as manager of the COM
pany's press affairs until 1885, when the
exactions of the newspapers became 30
heavy that he was compelled to abandon
his position. Since that time he had
been merely private secretary of De
Lesseps. He had distributed to the
preas only 10000 francs in drafts pay
able to bearer.
NJ. ooTTu's TESTIMONY.
Upon the conclusion of Fontane's ex-
animation Baron Cottu was called upon
to explain his connection with the
bribery and corruption of officials and
others. Cottu declared that his duties
as director of the Panama company were
merely mechanical. He dealt exclusive
ly with the internal administration of
the work of the company.
NJ. KIFFEL's DAMAGING ADMISSIONS.
In the examination OF M. Eiffsl,
today, he admitted he had cashed
checks for Il, 100000 francs which were
ostensibly drawn 20 pay for machinery,
while he actually expended only 1,50O.-
0O0 francs for that purpose. He gave
100000 francs to M. Hebrard to secure
contracts with the company, and 2,000,-
600 to De Reinach to secure the latter's
influence in his favor with the govern
ment. Two millions was also paid by
him to certain contractor. whose
favor, like that of Hebrard and Reinach,
was Indispensable.
REMUNERATION FOR HIS RISKS.
All these admissions were made only
after severe course of questioning.
The presiding Judge then asked Eiffel
what he did with the 100000 francs
received by him for taking to pieces,
shipping to the isthmus and reconstruct
ing machinery which. as matter of
fact, he never even supplied in this
country. 81 kept that sum-" replied
Eiffel, lamely, 'because it formed part
of my remuneration for the risk was
undertaking."
"Your contract" said the Judge,
provided that you should receive 80
per cent to be paid within 80 days of the
date of sending the orders; now you
took 2,S75,000 franks from one firm as
percentage, although the order was
never executed"
Effel replied that it was not his fault
that the order was not executed. He
himself had often paid on contracts
which were never executed, besides
this contingency was contemplated by
the general condition of the transaction.
II consider such transactions void" I"
said the judge severely. "since it was
the result of error, to call it nothing
worse. The procureur-general will tell
you more about this tomorrow and at
subsequent sittings.''
Eiffel quailed visibly under these
words.
M. Florry, the government account
ant who examined the accounts of the
company, testified that Eiffel had been
paid $4,000, 600 francs on bis contract,
and made profit of $4,000, 600 francs
on it.