Bisbee daily review., 1904-05-28
Morgan Made Fortune
 On First Canal Deal
BANKING HOUSE RECEIVED $500 900 FOR USE OF ITS NAME AS AGENT OF THE FRENCH coMPANY-oETs SEC
 oNp FINGERS IN
 PANAMA PIE.

eppeton, who was in 1879 the first representative from this country at Panama and who subsequently be- came intimately associated with De Lesseps, the creator of the isthmian canal, told today how J. P Morgan & Co, (then Drexel, Morgan & Col made $s00,000 out of the old Panama Canal company Tt certainly does seem the irony of fate" said Captain Appleton today, that those who reap cd such a fine harvest out of my old friend De Lesseps' concern should again have an opportunity of feath- ering their nests. l naturally take it that J. P. Morgan & Go. have not ac- eepted the position of fiscal agents from merely patriotic motives.
 Tt seems to me that it would have been in good taste for the firm of ] F. Morgan & Co. before entering into negotiations with France for the pay ynent of the s40. .0e0. 900. to refund the sum of ss00,000 they received when she firm was Drexel. Morgan & Go.
 Half of this sum came from the transfer of the stock of the Panama Railroad company to the canal com pany and the other half from the pay ment of s50.000 a year for eight years to the firm for the use of its name as American agents Of the company.
 Morgan'sr House Keeps Out.
 Prom the time of the inception of the old Panama Canal company to the year 1889, the time of it's first col iapse-even the lottery bond could not prevent another collapse in 1S94-J- ?. Morgan & Co. received through it's Paris house, Drexel, Harjes & Co.,. this bonus of s50,00o year. 1 am sure it is not on record that the house ever sold a single share of stock in America for the French concern.
 From 1889 to 1903, in other words. not until the United States stepped in and declared that Panama should be a nation, Morgan's house held aloof from the canal company. When an attempt was made to put the concern on its feet again, in iS94. each direc- tor of the old company was asked to subscribe for s20,O00 worth of stock in the new company and each of the financial houses which had been paid for the use of their names was asked to subscribe to the new stock
 "J. P. Morgan & Co. did not sub scribe. The Morgan banking house. as far as l can find cut. was never heard of again in connection with Panama until few months age, when it appeared as the fiscal agents of the new republic of Panama.
 Others Lent Their Names.
 'The congressional committee which was appointed to investigate what was called the American end of the Panama Canal stated in its report that Drexel, Morgan & Co., J. W. Seligman & Co. and Winslow, Lanier & Co. had received. apparently for the loan of their names and nothing else. the immense sum of coco 900 francs, or s1.20o.00o.
 y. w. Seligman & Co. received the same sum as J. P. Morgan & Co. but they subscribed for 36, ,250 share in the Panama company in 1894. represent ing about s725.000
 When questioned today sSout the statements made by Captain Apple ton, Temple Bowdoin of J. Morgan & Go. said: These matters, if they ever happened at all, took place ten years ago, and have no recollection of them whatever. It is rather pc culiar that Captain Appleton should .alk of them now. 1 oo not under stand his purpose"