Daily Kennebec journal., 1908-12-11
ENOUGH HONESTY
LEFT TO APOLOGIZE?
VIM. n. Cromwell Makes Certain Papers
Charges About Panama Canal Pur-
chase Look Very Mean and Dirty.

taken the pains to have published the
above facts which l quote
Il again denounce the statement
wherever published or by whomsoever
made that there was a syndicate form
ed BY American citizens to purchase
the Panama canal and to sell it to the
United States as absolutely and un-
qualifiedly false and untrue The
AmC CricaniZation plan was an entirely
different matter. 1t was a project pro-
posed by the company to the rivers
and harbOrS committee of the House
and to President Mckinley on Feb. o.,
1899. and vas formally authorized by
the hoard Of directors Oct. 10. 1899 sub
ject to the necessary approval of
stockholders. The initial steps were
taken by me in october, November and
December, 1899, and a company formed
for the purpose under the laws of New
jersey for carrying out the instructions
of my client.
while the certificate of incorpora-
tion of the Panama Canal Co. Of
America was filed in New Jersey no
capital stock, except the nominal cap
ital of $4,000 set forth in the certificate
VI was ever lSSutu dIu
nothing further was ever done by that
company as the records in the Office
OF the secretary of state of New Jer-
sey will show. The project adopted by
the board of directors failed of ap-
nroval by the stockholders in Decem-
ber, 1899; the board of directors in con-
sequence resigned in a body, and the
plan then and there forever ended. The
period covered ly this project was less
thar three months: not :: dollar was
paid under it nor a transaction con-
Quoted by the New Jersey company
for the reason stated. The plan was
dead and abandoned over two years
before the company finally yielded to
the pressure of the American govern
ment to sell at $4o,00o,o00
''Now. with regard to the distribution
OF the $4o,000000, it has been made to
q - or" il newspaper comments that
t y" -~as some mystery connected
with the disposition of this money.
There is no mystery and never has
been. The fund in question paid into
the Bank of France by the United
States produced the net sum Of 206,-
100000 francs, the sum of 12S.600 900
francs being placed to the credit of
the liquidator of the old Panama Canal
Co. and 77.400000 francs being placed
to the credit of the new Panama Canal
Co. in liquidation. and by said bank
paid over to said lquidators, respec-
lively, pursuant to decision of arhi-
tration at Paris. Feb H. 1902. confirmed
by the Civil Tribunal of the Seine.
''To the statement that I did not
know what distribution of the fund had
Eeen made and that I was in no way
concerned or interested therein. That
statement by me was true. I had no
interest in the canal and it was none
Of my business personally or profess
sioralv who We're the stockholders or
bondholders of the company.
"Since the recent publications I have
made inquiries in Paris and am inform
ed that the distribution of these mon
eys is "a matter of public record; that
the amount received by the liquidator
of the old Panama Canal Co has been
distributed by him as an officer of the
court to the holders Of the obligations
of the old company; that these persons
appeared in person at the Office Of the
hquiJator to receipt for the moneys
paid to them: that they numbered 226.-
296, the largest number of individuals
probably ever appearing in persons up
on single business affair. and that
the average amount paid was S156 The
complete and detailed record of these
payments. together with the names
and receipts of every person to whom
payment was made and the amount of
such payment, is in the hands of the
liqudator at his offices at so Rue
Etienne Marcel. Paris, which is in
prominent and frequented part of the
city near the Bourse. easily found by
anyone desirous of doing so.
AS to the fund paid to the new
Panama Canal Co, that company at
the time of the sale of its property
to the United States went into liquida-
ton. and am likewise recently INFORM
ed that the distribution of it's assets
CONTINUED on Page Two.)