Omaha daily bee., 1908-12-11
CANAL CHARGE FALSE
William Nelson Cromwell N Hot
Reply to News and Wd
MONEY WAS PAID IN ICE
Distributed to Over Two + Z lred
Thousand Persons by Liquid r.
NO STOCK HELD IN UNITED STATES
Neither He Nor Associates Ever Held
Any Canal Securities.
DOES NOT KNOW MR.. ROBINSON
President-eIect Taft I'm Philippines
When Canal Was BOught-DetaiIs
Of Proposed Americaniza-
tiOn scheme.
Neither He Nor Associates Ever Held
Any Canal Securities.
DOES NOT KNOW MR., ROBINSON

NEW YORK. Dec. iO-Wunam Nelson
Cromwell today authorized the following
statement
My attention has been called to a state
ment issued by the editor OF the Indianap-
Oils News IN which he attempts to reply 10
the charge made by President Roosevelt
that certain statements made in the Indl-
annapolis News, both before and since the
recent election, and relating to the. pur-
chase Of the Panama canal by the United
States, were false and untrue.
The president said: THE News gives cur
rency TO the charge that the United States
bought from American citizens for $4,000
90 property that cost these citizens only
1V1yOS TitSS me ad staIenen1 ZEN Is t Ialse Inc me
S0,OC0,0OO to any American citizen" etc.
From the statement issued in reply by
the editor OF the News l quote the follow
"The only man who paid any attention
TO them chat Is the criticisms referred to,
etc) was Mr.. Charles p. Taft who did deny
that he was In any way related to the af-
or Mr. Taft The other men, such as Crom-
We'll and Morgan, who were believed TO have
full Information in regard TO the business
And ne attempts to justify the publication
OF the false statements appearing IN ms
largely on statements OF the New York
World. Criticisms which were made over
and over again during the campaign were
utterly ignored until today.
Emphatic Denial in October.
The reply of the editor of the News fur
n.shes another proof of the justice OF the
presldentS CharaCterizatiOnS, Tor IN the
very journal under whose sheets 1t now
takes refuge. namely In the New YORK
World of october 3, lgOs, appears an ex-
story referred TO and in which l used the
following language:
We may expect during a heated political
contest all kinds OF stories which are not
wo,ahy of notice, but this one l wish 10
denounce in the strongest terms as a lying
fabrication without a shadow OF truth in
It, Neither l nor any one allied with me,
either directly indirectly, at any time
or at any place in America or abroad, ever
bought. sold, dealt in or ever made penny
of profit out of any stocks, bonds or other
securities of either the old Panama Canal
company OF the new Panama Canal com
dollar of the $400O00O0 paid by the United
States I make this the most sweeping
statement that language can convey
As every body connected with the a1lalr
knows, abstained from receiving the $4O,-
eO0.Oee fn my own hands ~ Washington or
New York as the general counsel or the
company and myself arranged for the pay
ment Of the entire s4000O,000 direct from the
treasury OF the United States through the
bankers OF the government into the Bank
of France at Paris, to the credit OF the
liquidators of the two companies There
1t remained subject TO the order OF the the
liduidators until distributed by them 10 the
thousands of beneficiaries, and not one
dollar of 1t ever came 10 me or any one
in any way connected with me. vi eout otton 50,
/ do not refer to our regular compensation
as counsel
Money Paid to Bank of France
wish to call attention to the fact that
on the first day Of the hearings before % %the
cornuntttae on interoceanic canals or the
senate of the United States in February
1906 I voluntarily made an explicit ana De.
tailed statement showing now the sfyVOO,OySO sS
was paid by the United States through
Messrs ]. r. Morgan & Co. as their agents
to the Bank of France at Paris for accous
of the new Panama Canal company anS 10
the fuli amount TO the liqutdators OF the
new Panama Canal company and TO the
uouidators of the old Panama Canal COM
rsnl Who in turn distributed the same to
their respective stock and bond holders,
numbering thousands OF persons l IurtheI I,
submitted to the senate committee, VIII
The permission of the Panama government,
a detailed statement OF the disposition @ Dy
the Republic OF Panama OF ths SIOVCOVvo ~,
maid bv the United States to Panama In
is4. accounting for the payment OF the
whole amount and showing the investments
and disposition by the Panama government
smericnnI1ation scheme Fails.
On the same public inquiry l further
stated with reference to the proposed
AmerieanizS9Sn ION Saat OF the fsss hs ana the pro-
posed formation of syndicate Tor mat mat
purpose in that year that the proposed q
Stah Vas never contaminated either by sub
scrtptfon or by assent ana IL Is opsolete
ana an impraGtie1mpfie mp mfe or force of being,
did not exist and never has existed anu is
as dead as door nail. ..tor % ,hs
company which came to naught anu uh-
der which | acted as their counsel soiely'
rnittee is a public record and avail
able to the editors OF the News anu tne az,
terested in publishing the truth as they
We're 10 create a political sensation they
doubtless would have taken the pains y
have published the above facts which
again denounce the statement, wher-
mai there was a Syndicate formed by
American citizens to purchase the PANAMA
canal and to sell II TO the United states
as absolutely and unqualifiedly false and
untrue The Amertcanization plan was an
entirely different matter. II was Fro
rivers and harbors COMMITTEES OF the
house and to President Mckinley on Ed
i1sd nv the board OF directors October
10 1859 subject to the necessary ap-
proval OF stockholders. The initial steps
We're taken by me in october, Novembs
and December, 1899, and company
formed for the purpose under me laws
ing out the Instructions OF my client
While the certificate OF Incorporation ol
was filed in New Jersey no capital stocl
except the nominal capital OF S0,Oov Sc
forth in the certificate Of incorporation
was ever issued and nothing further va
ever done by that company, as the record
in the office Of the secretary ,t OF state otso o
adopted BY the board OF directors faile'
OF approval by the stockh olders in De
consequences resigned in a body, and tn
plan then and there forever ended.
The period covered by this project Wai
less than three months; not a dollar wal
paid in under II nor transaction con
Quoted BY the New Jersey company To-
the reason stated. The plan was deaS
and abandoned over two years before tn,
company finally yielded TO the pressure
OF the American government TO sell a
$4,000. 600
Money Widely Distributed.
Now with regard TO the distribution o
the $40 900 600, Il has been made to appea.
in newspaper comments that there wa
some mystery connected with the dispo
sition OF this money There was mys
terry and never has been. The fund Il
question paid into the Bank OF France b.
the United states produced the net sun
az so6 000Oo0 francs. l2S60o0O francs beinl
rlacad 10 the credit OF the llquldator o