Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-02-27
PRESSED BY MORGAN
Examination of w. N. Cromwell
Resumed.
NUMEROUS SHARP PASSAGES
Services of Witness to the New Canal
Company,
NUMEROUS SHARP PASSAGES
INVESTING PANAMA's MONEY
Senator Knox Objects to Questions
Referring to His Course as
Attorney General.

The examination of William Nelson Cron-
well was resumed today by the Senate COM
mittee on interoceanic canals. after brief
executive session to determine the scope of
the inquiry. Senator Morgan put into the
record a letter written by Mr.. Cromwell to
Mr.. Wallace, arranging for the interview
which took place at the Hotel Manhattan
in New York when Mr.. Wallace informed
Secretary Taft of his desire to resign his
position as chief engineer
Mr. Morgan took charge of the examna
ton, and demanded to know of Mr.. Crom-
well what payments had been made to him
from the new Panama Canal Company.
Mr.. Cromwell asserted that the informa-
ton demanded was of confidential char
acter and involved the relations OF counsel
and client.
Senator Morgan insisted. and many sharp
passages ensued. Finally Mr.. Cromwell
said that while he did not think IL any bust
ness of the senators making the inquiry. he
would state that the total payments made
to him would not exceed 100000. That was
all he had received out OF the $i0090,O00
paid by this government, but he added that
he had not rendered his account for serv
ices. He said he had plenty of money of
his own and had not had time to go TO
Paris to see the company. He declared
that this (meantng the hearing) was the
first vacation he had had in ten months.
He declared that there had been no under
standing as to the amount he was to re-
ceived. ~
Continuing, Mr. Cromwell said he did not
think the country could be interested in his
private relations counsel to the new
Panama canal company.
Il think 1t is said Mr.. Morgan.
You may monopolize the opinion of the
country, but l don't think you do replied
Mr.. Cromwell. and then, upon having re-
peated the question concerning funds he
had received from the French canal COM
pany. he declined emphatically, on the
ground that he would not divulge profess
sional secrets
Revised Statutes Read.
Thereupon Mr.. Morgan called for the Re-
vised Statutes and read the provision In re-
lation to protection of witnesses called be-
fore congressional committees. He asked
the witness if he persisted in his refusal
Mr.. Cromwell replied:
ut is beyond the purview of the commit
tee to make this inquiry and 1 decline to
answer"
Mr. Morgan said he reserved the right to
determine the materially of the question
and proceeded with the examination.
Reading questions which had been sub
mitted to him to be propounded Mr.. Nor
gan called upon the witness to state what
had been the gross sums received from
the old or new Panama Canal Company
since the payment to j. 7. Morgan & Co.
New York bankers, of the money involved
In the transfer OF the property to the United
States. from syndicates. from the United
States, the republic of Panama or from
any source whatsoever.
II thank you for that question" said Mr..
Cromwell. TT involves period since the
transfer of the property 10 the United
States"
II would be obliged to you if you would
forbear from complmenting me IN public"
said Mr.. Morgan.
Senator, l think better of you than you
do of me- said Mr.. Cromwell and this
provoked another outburst from the Ala
bama senator against the witness indulg
ing in compliments.
Mr.. Cromwell then said he had not re-
ceIved one dollar Of the forty millions paid
the new Panama Canal Company, but
would render his final bill in due course,
and that 1T win be substantial and will be
paid" He said he had not received from
the republic of Panama a single cent, and
had received no benefit directly or indi-
rectly, from the sale of the property; that
he had not been interested in the securities
of either the old or new company. and THAI
his whole relation to the new canal COM
pany was that of counsel, and that his sole
compensation had been as such He stated
that the answer was meant to include the
relations of Roger i. Farnum clerk in
his office.
After this reply had been made Mr.. Nor
gan asked the witness why he objected to
making a similar statement of his rela-
tons TO the canal company prior to the
transfer of the property. The witness said
he did not think it pertinent.
Suppose the committee decides that II is
PERTINENT asked Mr.. Morgan.
i adhere to the answer l have made |
replied Mr.. Cromwell.
Questioned concerning the manner in
which the 100000 had bNen paid, Mr.. Crom-
well said the payments were Small mat
ter of $4,000 or $4,000 a year" and that
the payments extended over several years.
Declined to Answer.
Asked what services he had rendered to
earn the $4,000, Mr.. Cromwell said that
professional secrets were involved In the
inquiry. and he should be compelled to de-
cline to reply.
Read that question" said Mr.. Morgan
to the stenographer. It will get an answer
If I can.
81 am unable to specify the services
said Mr.. Cromwell. las l said it approx
mated $4,000 or $4,000 a year. l called
upon the company for money as | needed
1t. My clients are satisfied"
Were the payments for professional
services only?' asked Mr.. Morgan.
For professional services. Office ex-
penSes and matters connected with their
business l remember L employed an en-
gineer-
What was his name?" interrupted the
senator.
"E L. CortheIl"
"Corthell. eh2 I have been expecting he
would break in here somewhere" said Mr.
Morgan.
HE is a very excellent engineer" began
the witness, but he was stopped by Mr. /
Morgan, who said sharply: I'VE are not
asking you for any eulogies on this man."
Investing Panama Money.
Continuing his inquiry. Mr.. Morgan asked |
the witness what money he had in his con- |
troll which belongs to the republic of Pan |
anna. Mr.. Cromwell made detailed state |
ment concerning his appointment as fiscal /,
commissioner for Panama, and the invest |
ment In New York securities of about |
S6000.000, which was set aside by the re-
public as trust fund.
Mr.. Morgan seeming to question the wis |
dom of the investment. Senator Knox asked /
Mr.. Cromwell il it were not true that the |
United States. feeling a deep interest in |
the future of the republic, had advised the |
investment of this money In securities equal |
to those authorized for investments Of saw |
ings banks under the laws of New York.
THAT Is absolutely true, said Mr.. Crom- /
well. 1T was you and the President of the /
United States who advised me to make this |
investment"
Il did not intend to bring out this fact
said Mr.. Knox.
Are you under bond as fiscal commits
sioner?" asked Mr.. Morgan.
1.-THE Panama republic does not feel 1t |
necessary to put me under bond. 1 hope |
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