Daily Kennebec journal., 1908-12-09
uPoN THE PRESIDENT.
! tContinued from Page one.)


tion Of the Panama Canal CO. on the
following basis
1.-The basis on which Mr. Cromwell
was exclusively empowered in this
contract, was that an American Pan
anna Canal Co. with a capitalization of
sec. 900 preferred and $45 100000 COM
mon, should be organized to take over
the Panama canal concessions and all
other property belonging to the new
French Panama Canal Co., which had
bought the same from the old De Les
seps GO. This company was incorporat-
ed in. New Jersey with dummy direc-
tGrs. There was also Incorporated in
New Jersey with dummy directors the
Inter-oceanic Canal Co.
Senator Morgan unearthed copy
of the Ss:OO0.06Ug syndicate agreement
which provided that the subscribers
should -contract 9Wifh William, Nelson
Cromwell to,'pay inc '$5,eoo, 900 in cash
and to take their several allotments in
the enterprise. .sr
Five million dollars was more than
ample to buy the majority Of the other
Panama stock. AS the World said on
Oct. 25:
"'Mr. Cromwell applied to the canal
situation the methods Of American high
finance by which a syndicate takes
rt;' the property of a bankrupt con-
'":n, then creates a holding company
ana a capitalization, keeping the ma
jority control, in a syndicate trustee
ship
Following that, to quote from Mr..
CromwelIs testimony, In May, 1904, T.,
representing the New Panama Canal
Co.. and Judges Day and Russell, repre-
s.enting Atty. Gen. Knox, consuminat-
ed the transfer and sale to the United
States
Mr.. Roosevelt says, The govern
ment paid this s4OO0O,O00 direct to the
French government. ....
Mr.. Cromwell testified that the
United States paid the money to j.
p. Morgan & Co.
~ ';Mr. Roosevelt says, The French
government distributed the sum-
81 Mr. Cromwell testified as to how he dis
t1ibutsd IT.. ,,--
"Mr. Roosevelt talks of getting the re-
ceipt Of the liquidator appointed by the
French government to receive the same
Mr.. Cromwell testified: OF the $4,000
600 thus paid by the United States govern
ment. $250e0.000 was paid to the ljquidator
of the old Panama Canal Co under and
In pursuance of an agreement entered in
to between the liquidator and the new
company. = OF the balance of
SIS, 10000 paid to the new Panama Canal
Co. 900 have already been distrib-
uted among its stockholders, and the re-
mainder is now being held awaiting final
distribution and payment
What follows Is further eloquent tes-
irpn t.,1yn hx,t
Senator Taliafelro-'There is $1,000
co.,
''Mr. Cromwell-'Three million; yes
sir
Senator Taliaferro-'Wko holds that
money"
'Mr. Cromwell-'The New Panama Ca
nal Co. in its treasury
And yet Mr.. Roosevelt says that the
United States government has not the
slightest knowledge as to the distribution
OF the 50, 0.0O0 and that this was the
business OF the French government
''As to Mr. Roosevelt's statement that
there was no syndicate he could have
read the syndicate subscription agree
ment on Page 1150. Vol II, of the testi-
mony. before the committee on inter-
oceanic canals-if he had cared for the
truth
THAT the United States government
was not dealing with the French gov
ernment' or the liquidator appointed by
the French government or with Colom-
bia or with Panama, or with anyone else
except William Nelson Cromwell. and his
associates is made Still more plain by the
description Of Senior J. Gabriel Duque as
to the Panama revolution and as to the
manner In which Mr.. Cromwell got slO,-
O00.oO additional from the United States
treasury. Senior Duque said:
Mr.. Cromwell made the revolution
He offered to make me President of the
new republic and to see me through if
would raise a small force of men and de-
clare a secession from Colombia. He
made promises that we should have the
help Of his COVER nment-it was accom-
panied by. q liberal use of money We
bought, this general and that one, paying
5000 to $4,000 per general. The Colom-
biaD officers were all paid off and the CO.
lomhian general who was sent to stop
the revolution was also bought off
Then Mr. Cromwell. having been elect
ed, BY the Panama republic as general
counsel and ne and J. Pierpont Morgan
having been appointed fiscal commits
sion,' negotiated with President Roose-
welt by which the United States paid
$1O.00.o00 more to the fiscal commission
for Mr.. Cromwells Panama republic. OF
this money, three-quarters is still under
the control Of the fiscal commission
'Why did the United States pay s4O,-
ooo.o0o for a bankrupt property whose con-
troll could undoubtedly have been bought
in the open market for less than $4,000
OO0"
WHO bought up the obligations of the
old Panama Canal Co. for few cents
on the dollar?
Among whom was divided the $l5OOO,-
600 paid to the new Panama Canal Co?
whether Douglas Robinson. who is Mr.
Rcosevelts brother-n-law, or any of Mr.
Taft's brothers associated himself with
Mr. Cromwell in Panama exploitation or
shared ins thtse spr1fta is, incidental to
the main issue or 'iettfns IN the light
whether they did or did not. whether
all Me profits MfY mtg MI Nelson
Cromwelis ,kandk SFywbate yer became of
them. the fact tEat Theodore Roosevelt
as President of the United States issues