New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1906-02-27
CROMWELL ON PANAMA
NOT WORDS At HEARING.
Tells of WaIIace's Resignation. but
Refuses to 1nssoer some Questions.


,-guisu Nelson Cromwell who has figured
.,rrelv in connection with the sale of the Pan
ana Canal property TO the United States. was
,ee71r by the Senate Committee Interoceanio
,snals to-day. His testimony has been looked
.-u-srd 10 with much interest, and nearly all
she members Of the committee present.
senator Plat OF New-York appearing for the
srst tine since the hearings began. There were
many spectators Many OF the questions asked
AZ Cromwell related to the interview at the
manhattan Hotel in New-York regarding the
resignation Of Mr.. Wallace. when Secretary
Tsn. Mr.. Wallace and Mr.. Cromwell were pres
eri There were frequent tits between the wit
ass and Senator Morgan because the former
uss not more specific in his answers TO ques-
,ions by the Senator. There was a dramatic
s,ene at the close OF the day. when Mr.. Crom-
su refused 10 answer various questions asked
nv Senator Morgan. and the latter declared he
7-ould deal with the witness in the Senate when
she facts regarding the resignation OF Mr.. Wal
lace come out Mr.. Cromwell replied with some
warmth that that was the only safe place TO
do f."
EVERY PENNY ACCOUNTED FOR
M Cromwell in his statement declared that
every penny Of the money paid by the United
States government for the purchase OF Panama
Banroad stock and for the French Canal prop
rTN az
c,ined 10 accept the place Of counsel for the
,-sral Commission. and that his activity had
he, largely upon the invitation of the Presi-
dent and the Secretary OF War. He said that
,is only financial interest on the isthmus or in
the ReDublc OF Panama was a personal invest
,,en+ q the capital stock Of the Panama-Amer-
toan CORPORATION, Of which he owned Sol,SOO out
Of 2 total capital OF $4,000. This company.
M Cromwell said. engaged In supplying
the CITY Of Panama with electric light, Ice ana
,elepboue service. Il was a local and private
affair. End he was induced 10 take stock in the
CORPORATION IN order 10 assist a local enterprise
Another statement which Mr.. Cromwell made
that attracted much interest was that in all his
relations with the government Of the United
States and Panama, and even IN acquiring the
outstanding minority shares Of the Panama
Railroad for the United States. which was
brought about through Mr.. Cromwelrs activity
and labor not a cent was received by him for
his services. he said that his final account,
with the vouchers Of payment audited by the
department, was in the government files. and
every share OF stock was now IN the Treasury
OF the United States
WALLACE'S RETIREMENT.
A feature Of Ny. CromwelTs statement and
one on which he was closely questioned, was
with reference 10 the retirement Of Chief En-
Wallace had given before the committee. He
said that the explanation which Mr.. Wallace
gave the committee was radically different from
that which he gave when he retired, which was
that larger salary had been offered TO him:
that his reasons given after the Manhattan
Hotel interview made no reference TO Cromwell;
that IN letter 10 Chairman Shonts the day
after the interview. no allusion was made to
Cromwell MI Cromwell quoted from this let
Ter. IN which Mr. Wallace said:
The business proposition that have now under
and opens out such vide field for future prosperity
sa n de6 SGt f gy family age g0@ and T tO5e of
gard 10 il, have been absolutely a unit in urging
ne 70 form the new connection. There were
for the Secretary Of War and myself 70 discuss 1t
fee maj i C5f5 be fair 70 me secrefsry 70 Ter
the matter 90 until after he had left the coun-
that I would have had 10 let the opportunity go
BY II 4 had become necessary TO postpone it until
his return from the Philippines
NJ. Cromwell also gave a letter addressed to
him from MI Wallace. dated at Panama, May
%. 1906. saying that his mind repeatedly
turned 10 the words Of advice and counsel which
received from YOU; also that the more thought
ne gave the matter the more ] am impressed
with your words OF wisdom: that he was
more and more impressed with the wisdom IN
DERIVING the action Of the President and the Sec
rotary Of War, as well as with the wisdom Of
their 'privy council and the tactful manner in
which matters have been guided through the
troubled waters Of the sea Of complication which
has surrounded the situation" Later he refers
TO Mr. Cromwell as the skilled and polished
diplomat" and IN closing he says: Permit me.
my dear Ny Cromwell. TO lift my hat TO you"
Mr.. Cromwell said Mr.. Wallace told the COM
hlttee that his decision was reached while on
the voyage TO the isthmus IL May. but this letter
was written TWO days after his arrival there.
DEPOSITION OF THE 100000
Mr. Cromwell said that he was authorized to
give an account Of the disposition Of the S10-
"loJJ paid 70 Panama. which was as follows:
Invested IN New-York real estate, s. 165. 800;
bonds Of the Panama Railroad Company. SS34-
90; cash deposit with the Nev-York Trust
Company. Sl1J0ODO: cash on deposit with
Bankers Trust Company. New-York. $4,000;
oasn Oh deposit with the above and J. p. Morgan
d Co. $7l-2s0; cash on deposit IN London with
Compton National d'Escompte. $500 600. cash
on deposit with bankers at Panama, $50 900;
Invested In The Banco Hipotycario. Panama.
. S1oVJ5 appropriated for public works In the
provinces Of the republic. 81 625 900: drafts by
The republic on J. P. Morgan & Co. S622 615;
miscellaneous expenses. $50.
Senator Morgan interrupted this statement
several times 10 compel the witness TO be spe-
ciac This particularly true when Mr..
Cromwell asserted that the reasons given by
Mf Wallace for resigning his places as chief
engineer and as member OF the Isthmian Canal
Cor mission in testifying before the committee
were radically different from the reasons
pressed 10 the Secretary Of War. Dir. Cromwell
S@'a The account OF the interview at the Man
.'aiian Hotel in New-York. as given 10 the press
~ secretary Taft, was entirely correct. but he