The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1908-12-09
LIGHT SHED ON
PANAMA CANAL
TRANSACTIONS
Continued from Page I.

Continued from Page !.
in 1889, years before Mr. CROMWELL
relations with President Roosevelt De-
gan As Mr.. Cromwell testi1ed peIore
the senate committee on FED 70. 1sVo'
We never had any connection WLsi tiie
so-called De Lesseps company Neilher
did the United States government con-
duct negotiations with the OLD frehch
Panama Canal company
What Mr. Cromwell did represent
was the New Panama Canal company
the American Panama Canal company
and the $5.O00.00O syndicate whlch ne
formed to finance the new companies
After Mr.. Cromwell had tesuned-l 90
not recall any contract Senator MOT
gan produced a contract reading iran
anna canal hearing, Vol. IL, page llto'l
'''Mr. William Nelson Cromwell IS eS-
clusively empowered under the formai
agreement with the directors OF the
Compagnie Nouvelle du Canal de rama
ma New Panama Canal company OF
Franco, to effect with the American
syndicate the Americanizatioh of the
Panama Canal company on the follow
ing basis
Incorporated in New Jersey.
THE basis on which Mr.. Cromwell
was exclusively empowered in this
contract was that an American Pana-
ma Canal company with capitaliZa-
ton of $50, 900. 900 preferred and $40, 000,-
600 common stock should be ordered to
take over the Panama canal conces-
sions and all other property belonging
to the New French Panama Canal COM
Pany, which had bought the same from
thehgld De --LeSseps company This
|eoTl kny was Incorporated in New 5efz
seq with dummy directors There was
also Incorporated in New Jersey with
dummy directors the Interoceanic Ca
nal company
Senator Morgan unearthed a copy of
the s5,000,000 syndicate agreement
which provided that the subscribers
should contract with William Nelson
Cromwell to pay in S5,OOO.O0O in cash
and to take their several allotments in
the enterprise.
Five million dollars was more than
ample to buy the majority of the old
Panama stock As the World said on
Oct 25:
e Mr.. Cromwell applied to the canal
situation the methods of American high
finance by which a syndicate takes over
the property of a bankrupt concern,
thep creates a holding company and a
disqualification. keeping the majority
CromweIl's Testimony.
Following that, to quote Mr. Crom-
wells testimony, in May, 1904, 1. rep
resenting the New Panama canal, and
Judges Day and Russell, representing
Attorney General Knox, consummated'
the transfer and sale to the United
States.
''AIr. Roosevelt says the government
paid this s4O,0oo,0OO direct TO the French
government
Mr.. Cromwell says that the United
States paid the money to ]. P. Morgan
& Co.
''Mr. Roosevelt says The French gov
eminent distributed the sum-
Mr. Cromwell testified as to how he
distributed 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 s45 600 :
GOO thus paid by the United States govern
nlent, 81, 100000 was paid to the Iiouidat-
or of the old Panama Canal company
under and in pursuance OF an agreement
entered into between the Iiquidator and
the new company. of the balance of
Sl5,O00OJ0 paid to the New Panama Canal
company, Sl2,0OO,0OO has already been dis
trlbuted among the stockholders and the
remainder is now being held awaiting
final distribution and payment
Senate Committee Hearing.
what follows is further eloquent tes-
timony taken by the senate committee:
Oc0OOO?' 90
a Mr.. Cromwell: Three million. yes.
Senator TaIaferro: Who holds that
money?
:. Mr.. Cromwell: The New Panama Ca
nal company in its treasury
And yet Mr. Roosevelt says that the
Tinted States a.
slightest knowledge as to the distribu-
ton or the $40.000,000, and that this was
the business of the French government
-, AS 10 Mt Roosevelt's statement that
there was no syndicate. he could have
read the syndicate subscription agree
ment, on page 1l50, Vol. II. of the tes-
timony before the committee on inter-
oceanic canals, If he had cared for the
truth
Panama Revolution.
THAT the United States government
was not dealing with the French govern
ment, or the hquidator appointed by
the french government or with Colon
hla, or with Panama, or with any one
else except William Nelson Cromwell and
MS associates is made still more plain
by the description of Senior J. Gabriel
Duque as to the Panama. revolution ana
as to the manner in which Mr. Cromwell
got S06D9.60o additional from, the lT-niteI
states treasury. Senior DuQue said:
MIR. Cromwell madea the revolution
he offered to make me president of the
new republic and to see me through if
would raise d small force of men and
declare secession from Colombia He
made promises that we should have the
help of his government. 1t was accom-
panied by liberal use of money. We
bought this general and that one, paying
5000 TO $1,000 per general The Colonf-
bian officers were all paid off and the
Colombian general who was sent to stop
the revolution was also bought Off
More Money for Cromwell.
Then Mr.. Cromwell having been
elected by the Panama republic as gen
eral counsel, and he and J. p. Morgan
having been appointed a fiscal commits
sion.' negotiated with President Roosevelt
by which the United States raid S10.oo0.-