The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1904-04-11
FIRST CANAL Commission
COMPLIED WITH THE LAW
Treasury Department Knows How
the Million-Dollar Fund Was
DiSbursed.
EVIDENCE IN RECORDS

Special 70 the indianapolis Journal.
WASHINGTON, April 10.-An official OF
the Treasury Department who is in posi-
ton to know the facts asserts that an err
roneous impression is likely to be given
the public by the reports circulated re-
garding the expenditures of the first Pan
anna Canal Commission as result of pub
lished comments upon the testimony given
by Admiral Walker before the House COM
mittee on interstate commerce. ut is
true" said the official. that million dol
lars was expended upon vouchers signed
by Admiral Walker and that no reoprt was
made TO Congress. yet there is abundant
evidence in the department. records and in
the report made to the President, to whom
by direction of the law such report to
be made. showing just what the money
was expended for"
An examination of the matter in the de-
partment shows that the comments made
by Admiral Walker in his testimony did not
do the subject justice. While it is regarded
as essential that the present Congress in
making laws to govern the new canal COM
mission shall be precise and detail lust
how the money shall be expended 1t is I'M
fair TO say that safeguards were not
thrown around the expenditures of the
81 070,0 600 disbursed by the first commission
Admiral Walker admitted before the com
mittee that the money had been expended
In defraying the expenses of the first COM
mission, and he asserted that the vouchers
for each expenditure on file in the
Treasury Department This is the fact. 1t
appears that under the conditions sur
sion, which were made necessary from the
fact that the commission was intended to
be merely an investigating body, to report
regarding the feasibility of proposed routes
much of its work had to be secretly done.
The commission appointed a number of
diSburslng agents, who made acquisitions
upon the fund of the commission which
was set apart in the treasury, and requisi-
tionS were made through the State De-
partment. The money was not paid to the
disbursing officers direct. The practice was
that the accounts of the disbursing officers
were sent to the auditor of the State De-
partment, accompanied by receipted bills
showing for what purpose each expenditure
was made. When the account was duly
audited a warrant was drawn in favor OF
the person 10 whom the bill was due, and
In this manner accurate account was kept
of each item of expenditure, and the work
OF the disbursing officers was merely TO see
that the accounts were properly kept and
receipted bills for each item of expendi-
ture presented for audit.
The impression was not given in the
meager testimony by Admiral Walker be-
fore the House committee that the COM
mission had been lavish or unwise in its
expenditures, but the question raised
whether full and detailed reports had been
made showing how the money had beer
spent and Admiral Walker was asked by
the committee whether it would not be wise
in framing legislation 10 govern the ex.
penditures of hundreds of millions in the
construction of the Panama canal to pro-
vide for more detailed reports regarding
the mourning of bills and the paying out
of money. 1t was shown by the testimony
that the members of the first commission
with the exception of Admiral Walker, who
was its executive head, knew very little
about the accounts. This is explained BY
the department as a natural result from
the fact that the greater part of the ex.
penditures of the con~lission were for sal.
| aries and expenses or the commissioners
themselves during the long period of the
| investigation into the merits of the various
/ canal routes.