The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1904-02-22
Calls Bunau- -VariIIa The Worst
of KnaVes,
CAN PROVE HIS ASSERTIONS
Panama Agent Made False Statements
and Received Pay for More
Than Double the Work
He Did.
BY wArrERsoN sTEALEy.


Washington. February 21.-(special1-
Senator Carmack of Tennessee, If oppor-
tunity is afforded him before the vote
is taken on the canal treaty, expects to
deliver a. speech on that subject with
special reference to the forty million dol
lars which this government is to pay
out of the United States treasury. In
discussing the matter the senator does
not mince words.
He declares that Vunau-varilla, the
minister from Panama, Is the very worst
of the knaves whose thieving operations
bankrupted the old Panama Canal COM
pany, and to prove it the senator has
official reports and documents from the
French courts. Senator Carmack points
out that in the beginning the French
peasantry chiefly raised the money, about
two hundred and eighty-iv million dol
lars, to start the canal scheme.
Expended In Bribery.
OF this amount one hundred and seven
ty million dollars was corruptly expended
in bribery of French newspapers eahi-
net ministers and members of the French
parliament. About one hundred and If
teen million dollars were nominally ex-
pended on the canal work, but about half
of this sum went into the pockets of
swindling contractors and others, and
| represented not a single days work on
the canal
Bunau- Varilla, Senator Carmack saws.
was among the worst of these contrac-
| tors. He refers to contract in which
Bunau, upon false statements made by
| him
the work done. When the old canal COM
pany failed as a result of the fraudulent
practices. the original investors had lost
all their money and refused to contribute
to the new company
In order to prevent a lapse of the con-
cession 1t was necessary to continue the
work on the canal and the French courts
compelled the contractors to nut I'm
tyelve million dollars to keep the con-
cession alive. or this amount the sena-
tor says Bunau-varilla's company nut up
something over four hundred thousand
dollars. Other dishonest contractors were
also compelled to disgorge or else sub
NIT to a revision OF their accounts, and
OF course they chose to pay the money
Agents Swarmed In WASHINGTON.
~NAhPeohyt Stld SENATOR 1ArmaCk
today. Then began an earnest campaign
with view to selling its property to this
government. Its agents and lobbyists
fairly swarmed In Washington to impress
upon congress and upon everybody the
superior advantages of the Panama ronts
II was Varilla who appeared In Wash
inston when the treaty with Colombia
was about to fall and who hastily con-
Guided a treaty with Panama.
~.
Inc activity of these thieving con-
tractors is explained by the fact" CON
tnued Senator carmack, "tbat tbev a1ono
are 10 derive any substantial benefits
from the $40000,000 payment we are To
make. It was arranged that 60 per cent
or Whatever should be obtained for the
canal should go to the stockholders of the
old company and 40 per cent to those
who had contributed capital to the new.
In other words, the honest investors
the peasantry and poor shop keepers OF
France Will get back $24 100000 OF tha
s2So,0OO, 900 stolen from them while Varilla
and his associates will get back $i6OoO0oO
for the s12.ooo.OO0 stealings they disgorged
to start the new company
Other Beneficaries.
There are other benehciaries of tbj.
| treaty. concluded Senator Carmack
who have not been without their influ-
ence I'm creating sentiment In its favor
One of the leading banks In New York.
the Capital City bank l believe saws In a
recent circular that large proportion Of
| the securities Of the Panama Canal COM
| pany have been purchased at low price
| by American speculators.
81 have heard what consider first
| rate authority that Mr. w. N. Cromwell,
the attorney of this company. is to re-
ceive per cent or about s2,0OO00O OF this
S40000.0OO. I should be glad to know
whether this is true and Mr. Cromwell
no doubt If he thinks 1t worth his whilo
can give me and the country the informa-
tion.
Could Not Earn Fee.
Then l should be glad to know what
legitimate service Mr.. Cromwell could
have performed In connection with this
business that would entlte him to such
an enormous fee. / impute no dishonest
motives to any man In the senate. I
even believe that senators have persuaded
their minds and consciences to assent to
the plainest and most fragrant violations
of the constitution and the law But
the very best Interpretation that can be
put upon undsputed facts cannot save
this transaction from scandal and dis
honor"