Fergus County argus. [volume] (Lewistown, Mont.) 1886-1946, 1906-03-02
Interesting Statement Regarding Pur.
chase Of French Property by the
United States.
NOT PAID FOR HIS SERVICES
Cromwell Did Not Receive Penny
for His Work-A Tilt With
Morgan.

the sale Of the Panama canal prop
erty TO the United States. was begun
today by the senate committee on in
ter-oceanic canals Many of the ques.
lions asked Mr.. Cromwell related to
the interviews at the Manhattan no.
tel in New York regarding the resig-
nation of Mr. Wallace, when Mr.. Crom-
well. Secretary Taft and Mr. Wallace
were present. There were frequent
Tits between the witness and Senator
Morgan because the former was not
more specific in his answers to ques-
tions by the senator. It eliminated
dramatically at the close of the day,
when Mr.. Cromwell refused TO answer
various questions asked by the sena-
tor, and the latter declared he would
deal with the witness in the senate
when the facts regarding the resigna-
ton of Mr.. Wallace came out.
Mr. Cromwell replied with some
warmth that that was the only safe
place to do it,
Mr. Cromwell in his statement de
clared that every penny of the money
paid by the United States for the pur-
chase of Panama railroad stock and
for the French canal property had been
accounted for. He stated that he had
declined to accept the position of coun-
sci for the canal commission. and that
his activity had been largely upon the
inv, itot ion Of h. LIANT nd a
secretary of war. He said that his on.
ly financial interest on the isthmus
or in the republic of Panama, was a
personal investment in the capital
poratiOn of which he owned $51 800
cut of total capital of 1929 900. This
company Mr. Cromwell said was en-
gagged in supplying the city of Pan
anna with electric light, ice, and tele
phone service. 1t was local and pri
vate affair. and he was induced &c
take stock in the corporation in order
to assist local enterprise.
Never Received a Penny.
Another statement which Mr.. Crom
well made that attracted much inter
est was that in all his relation with
the government of the United States
and evn in the acquiring of the out
standing minority shares of the Pan
anna railroad for the United States
which was brought about through Mr.
Cromwell's activity and labor, not {
cent was received by him for his ser
vices. He stated that his final acts
were in the governments fights an(
every share of stock was now in the
treasury of the United States.
A feature of Mr. Cromwell's state
ment and upon which he was closely
questioned, was with reference to the
retirement of Chief Engineer Wallace
and the testimony which Mr.. Wallace
had given before the committee. He
said that the explanation which Mr.
Wallace gave the committee was rad
icaly different from that which he
gave at the time he retired, which was
that he had been offered q larger sal
airy; that his reasons given after the
Manhattan hotel interview made no
reference to Cromwell; that in letter
TO Chairman Shonts the day after the
interview no allusion was made to
Cromwell. Mr.. Cromwell quoted from
this letter in substantiatiOn of this.
Mr.. Cromwell also gave a letter ad-
dressed to him from Mr. Wallace, dat
ed at Panama May 26, 1905, saying
that his mind repeatedly turned tt
the words of advice and counsel which
received from you"
Later he refers to Mr.. Cromwell a.
the skilled and polished diplomat,
and, in closing, he says, Permit me
my dear Mr. Cromwell to lift my ha
to you"
Mr.. Cromwell stated that he was al
thorized to give an account of the dis
position of the $10,000,O0O paid to Par
anna, which was as follows:
Invested in New York real estate
$5,165,50O
Bonds of the Panama Railroad con
pany, $S34,432.
Cash on deposit with the New Yor
Trust company, $1,150,O00.
Cash on deposit with the Bankers
Trust company, New York, $3OO,00t
Cash on deposit with the above an
]. p. Morgan & Co, $71,2SO.
Cash on deposit in London wit
Compton National D'Escompte, 1892
$50.
Cash on deposit with bankers
Parma, $4,000.
Invested in the Banco Hipotycari
Panama, 100000.
Appropriated for public works /
the provinces in the republic, $1,62s
900.
Drafts by the republic on ]. P. Mo
gan & Co., $622,615.
Miscellaneous expenses, $50.
During this statement Senator Nc
gan interrupted several times to col
pei the witness to be specific. Tn
was particularly true when Mr.. Crol
we'll asserted that the reasons give
by Mr. Wallace for resigning his pc.
ton as chief engineer and a memb