The Birmingham age-herald., 1906-02-27
Dramatic Moment Arises When He Insists on Cromwell
 Answering His Questions
MEN FACE EACH OTHER WITH
 FACES HIGHLY FLUSHED
Witness Tells the Senator That the Floor of the Senate Is the Only Safe Place for Morgan
 to Deal With
 Him.

Washington. February 26.-The exani-
 nation of William Nelson Cromwell, who has figured largely in connection with the | sale of the Panama canal property to the United States. was begun by the Senate committee on interoceanc canals today. His testimony has been looked forward to with much interest, and nearly all
 the members of the committee were pres-
 ent. There were many spectators. Many
 of the questions asked MT Cromwell re-
 lated to the interview at the Manhattan
 hotel in New York regarding the resigna- l ton of MT. Wallace when Secretary Taft, Mir Wallace and Mir. Cromwell were present. There were frequent tits be- 1 tween the witness and Senator Morgan. because the former was not more spe- 1 cihc in his answers to questions by the | Senator It eliminated dramatically at
 the close of the day when MT Crom-
 well refused to answer various questions
 asked by the senator, and the latter de-
 elared he would deal with the witness
 in the Senate, when the facts regarding
 the resignation of Mir. Wallace. came out.
 Cromwell Replies With Warmth.
 Mir. Cromwell replied with some warmth
 that that was the only safe place to
 do It."
 Mir. Cromwell in his statement. declared
 that every penny of the money paid by l the United States government for the purchase 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- 1 sel for the canal commission, and that
 his activity had been largely upon the invitation of the President and the Sec- retary of War He said that his only 1 financial interest on the isthmus, or In
 the republic of Panama was a personal investment in the capital stock of the l Panama American corporation, of which 1 he owned $5,s0O out of total capitalza- | ton of s229O00. This company, Mir Crom- well said, was engaged in supplying the
 city of Panama with electric light. ice
 and telephone service. It was a local
 and private affair and he was induced to take stock in the corporation in order to
 assist a local enterprise. Not Cent for SerNtceS. Another statement which Mir Crom- well made that attracted much interest
 was that in all his relations with the 1 government of Panama, and even in the
 acquisition of the outstanding minority
 shares of the Phnama railway for the
 United States. which was brought about through Mr. cromwells activity and la | bor. not a cent was received by him for his services. He stated that his final ac- count with the vouchers of payment aud- tied by the government department, was | in the governments files, and every share of stock was now in the treasury of the United States.
 A feature of Mir. 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 MT. Wallace had given before the committee He said that the explanation which MT. Wallace gave the committee was radically diff ferent from that which he gave at tho time he retired, which was that he had been offered larger salary: that hls reasons given after the Manhattan hotel interview made no reference to Crom- Well that in a letter to Chairman ShontS the day after the interview, no alluson
 was made to Cromwell. Mir. Cromwell quoted from this letter in which MT. Wallace said:
 Quotes From Wallace's Letter. \ "The business proposition that 1 have now under consideration Is of such an important character and opens out such a wide field for future prosperity to me, that 1 cannot possibly see how 1 would be justified in declining it. My family and those of my friends with whom have consulted have been a practical
 unit in urging me 10 form the new con nection.
 There were so many sides to this mat ter that 1 thought it best for the seere- tary of war and myself to discuss 1t in all it's features at length. l also did not ~el that lt would be fair to the secre- tary to let the matter go over until after he had left the country.
 "On the other hand the situation was | such that would have had to let the op- portunity go by if 1t should become nec- l essary to postpone it until his return from | the Philippines"
 Mr. Cromwell gave a letter addressed | to him from Mir Wallace. dated at Pan- | ana. May 26. 1905, saying that his mind | repeatedly turned to the words of advice | and counsel which I have received from | you" also that the more thought he gave the matter "the more 1 am im- pressed with your words of wisdom" Later he refers to MT. Cromwell as the skilled and polished diplomat and in closing he says:
 Permit me. my dear MT. Cromwell to lift my hat to you.
 Mir. Cromwell said Mir. Wallace told the committee that his decision was arrived at while on the voyage to the isthmus in May but this letter was written two days after his arrival there.
 Accounts for the s1o,oooooo. Mir Cromwell stated that he was au- thorized to give an account of the dis (cointInued on Eighth Paas.l