Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1908-12-09
CANAL DEAL ISSUES JOINED
New York Newspaper Replies TO Lett
ter of President Roosevelt.

New York Newspaper Replies to Lett
ter of President Roosevelt.
NEW York; Dec. s-The New York
World. TO which Delavan Smith. editor Of
the Indianapolis News referred in his re-
ply TO President Roosevelts attack upon
him, as the authority for the article on the
Panama canal which appeared in his papers
and called forth the presidents letter, says
today:
''In view OF President Roosevelts delio-
crate misstatement OF fact in his scand-
alous personal attack upon Mr.. Delavan
Smith. editor OF the Indianapolis News.
the World calls upon the congress OF the
United States 10 make Immediately a full
and impartial investigation of the entire
Panama canal scandal
THE Investigation OF 1906 by the senate
committee Of the inter-oceanic canals was
blocked BY the refusal OF William Nelson
Cromwell to answer the most pertinent
- -rsus Of snator 10 gan " llbama-
Since that time nothing has been done
because after Senator Morganis death there
was no successor to carry on his great
work OF revealing the truth about Panama
corruption. s.ssk
Qnery That Brought Out Letter.
The Indianapolis News said in the edi-
torial for which Mr.. Roosevelt assails Mr..
Smith:
1T has been charged that the United
States bought from American citizens for
S4o.oO0eOo property that cost those citizens
only 100000 There is no doubt that the
government paid S4O.eOOO00 for the prop
erty But who got the money!
President Roosevelts reply 10 this most
proper question is for the most part a
stirring OF abusive and defamatory epithets.
But he also makes the following statements
as truthful information to the American
people:
The United States did not pay a cent
Of the y4O.OO0OOO to any American citizen.
The government paid the 100000 direct
TO the French government getting the re-
ceipt OF the liquidator appointed by the
French government TO receive the same
The United States government has not
the slightest knowledge as to the particular
individuals among whom the French gov
ernment distributed the same
so far as / know there was no syndi-
cate: there certainly was no syndicate in
the United States that to my knowledge
had any dealings with the government d.
rectly or indirectly"
world Returns Compliment.
TO the best of the Worlds knowledge
made by Mr.. Roosevelt and quoted above
are untrue and Mr. Roosevelt must have
known they were when he made them.
AS to the detailed distribution of the
Panama loot only one man knows IT ali.
And that man is William Nelson Cromwell
The two men who were most in Mr.. Crom-
wells confidence are Theodore Roosevelt
a president Of the United States and Elinu
Root. former secretary Of war and now
secretary Of state. Il vas they who aided
Mr.. Cromwell in communicating the Panama
revolution. arranged the terms Of the Pur-
chase OF the Panama canal. made the
agreement 10 pay $i0O00.oO0 on the cana
properties and an additional Slo.ooo.OOo for 9
manufactured Panama republic. every
penny of both OF which sums was paid BY
check on the United States treasury TO J.
p. Morgan s. Co.-not to the French gov
ernment, as Mr. Roosevelt says. but tC
j. p. Morgan 4 Co"
The World then goes extensively into
evidence brought out at the senate investI
CATION by Senator Morgan in 1896 and says
Mr.. Cromwell applied TO the canal situa-
ton the methods OF American high finance
by which a syndicate takes over the prop
erty OF a bankrupt concern. then creates I
holding company and q recapitalization
keeping the majority control in a syndieat'
truSteeshlp
II then continues:
Following that. to quote from Mr.. crom
wells testimony, In May, 1904. l. repre-
senting the new Panama canal. and judge
Day and Russell. representing Attornel
General Knox. eonsummated the transfe
and sale 10 the United States
Testimony OF, Cromwell.
MIR. Roosevelt saws the governmen
paid this s4OOooOOO direct 10 the Frenel
government
Mr.. Cromwell testified that the Unite'
States paid the money TO }. P. Morgan
co.
Mr.. Roosevelt says the French gov
eminent distributed the sum-
M Cromwell testified as 20 how h
distributed Il.
Mr.. Roosevelt talks OF getting the re
ceipt OF the hquidator appointed by III
French government 20 receive the same
Mr.. cromwell testified: "of the so.
Oo0Ooo thus paid by the United States gov
ernment. 81. 10000 was paid TO the liqui
dator of the old Panama Canal eompan.
"a In of