Evening star. [volume] (Washington, D.C.) 1854-1972, 1909-10-11
Charges of Corruption in
Panama Canal Purchase.
READING OF TESTIMONY
Statements of William N. Cromwell
Presented by Attorney Mcnamara.
AMOUNT OF FEES RECEIVED
Indianapolis Newspaper Alleged to
Have Made False and Slander-
GUS Accusations.

INDIANAPOLIS. October 11.-With the
purpose of showing that William Nelson
Cromwell. attorney for the old French
Panama canal companies. made to the
Morgan investigating committee OF the
United States Senate, an explicit state
ment of his relations in the transfer OF
the Canal Zone TO the United States. GER
tain parts Of his testimony were read IN
the United States court of this district
today by Stuart Mcnamara, attorney for
the Department Of Justice The reading
was in the hearing Of Delavan Smith and
Charles r. Williams. proprietors of the
Indianapolis News, charged with criminal
libel In having alleged in their news
papers that there was corruption in the
purchase Of the Canal Zone by this coun-
try.
= Statement to Committee.
Mr.. Mcnamara pointed out to the court
that Mr.. Cromwell stated to the COM
mittee that he had no interest in the
matter save as attorney: that he had then
received 100000 for his services. and
that he was in no haste to submit his
bill for further attorneys fees. Mr..
Cromwell added that ]. Pierpont Nor
gan told him his banking house had re-
collection of the $40, 100000 paid by the
United States to the French companies,
through the Bank of France at Paris.
Mr.. Mcnamara sought to impress upon
the court that Mr.. Cromwell had been
frank in his description OF his activity
and that he had denied In detail that
he had received cent from the govern
ment of Panama; that he owned securl-
ties in the Panama Canal Company. or
that he had received or expected to re-
mi
or any compensation other than an at
torney should have for his services.
Defendants in Court.
The. case was called again today be-
fore Judge Anderson of the United States
court Of this district. and Delavan Smith
and Charles r. Williams. proprietors of
the indianapolis News. asked for con-
= tinuance of their hearing to determine
whether or not they should be removed
to the District of Columbia for trial I'M
der an indictment of a federal grand
jury charging them with having GRIM
inally libeled Theodore Roosevelt, Charles
p. Taft, William Nelson Cromwell. Doug
las Robinson and others in having pub
lished articles alleging corruption In the
purchase of the Panama Canal Zone by
this country.
It was understood today that the gov
eminent would not produce other wit
tial hearing OF Messrs. Smith and Will
hams' case last June, but that Stuart
Mcnamara. special attorney Of the De-
partment of Justice. in charge Of the
proceedings In New York against the
publishers OF the New York World, would
make further argument.
Testimony Obtained in France.
Mr.. Mcnamara arrived last night from,
Washington. He spent a part Of the last
summer In Paris collecting evidence as to
the details Of the transfer Of the Panama
Canal Zone from the two old French
companies to the United States. It has
not been made known In what form this
evidence will be offered to the court, If it
Is offered at all.
Declines to Give Dates.
Mr.. Mcnamara continued to read from
the committees report as to Mr.. Crom-
wells refusal to make public the dates Of
an effort to "Americanize' the Panama
canal by forming, company to buy 1t
from the French owners. His reason for
this refusal was that the project failed,
that 1t never had vitality and that he
must decline. under an attorneys priv
ilege. to discuss publicly this business of
unnamed clients of his law office. Mr.
Cromwell maintained that this matter
had no connection whatever with the Anal
transfer Of the property to this country by
a newly designed method. All the testi-
mony alluded to by Mr.. Mcnamara was
taken by the Senate committee In Febru-
airy. 1906.
The report Of the isthmian canal COM
mission was taken up by Mr.. McNa-
mara, to show. he said, that the COM
mission all along had preferred the
Panama route to the Nicaragua route
and that the official valuation of the
Panama property was set at $4,000, 900.
Introduced to Refute Charge.
He produced this record. he said, to
refute the charge that the commission
ever had approved the selection OF the
Nicaragua route except that 1t consid-
cred the original price for the Panama
zone demanded by the French owners
(S109 .O0o.OOO) exorbitant. The Panama
route was at once recommended, he
said. when the price dropped to $4O.-
OOO. 900.
Mr.. Mcnamara turned witness, and
examined by Charles W. Miller United
States district attorney, testified that
he obtained copies Of the Indianapolis
News at the papers Office in Washing
ton. and that those papers contained
articles, one headed, ''Who Got the
Money" alleging that there was a
graft" Of millions OF dollars in the
transfer Of the Panama canal to this
country.
NO REASON TO FEEL UNEASY.