The Montgomery advertiser., 1909-06-03
LIBEL HEARING
IS CONTINUED
Hitchcock and Mack to
Testify.
CASE TAKES SUDDEN TURN
Pierpont Morgan's Office Staff to
Be Subpoenaed.
Judge Ander.on Says The Public
Had q Right to Question con-
dition Of Transfer of The
Panama Canal.

indianapolis. Ind. June 2.--After a
sharp controversy in which the court
took a prominent part, over the merits
or the so-called Panama scandal" the
| Government won q point today in its
prosecution of Charles r. Williams and
Delavan Smith, owners OF The Indian
| apolis News. indicted by grand jury
in the District of Columbia on the
charge of criminal libel in publishing
intimations that there was an enor-
nous graft" in the purchase of the
Panama Canal by the United States.
This was the second day of the hear
Ing before Judge Anderson. in the
| United states Court OF this district on
the governments application for an
order removing the defendants to the
| District Of Columbia for trial.
At the request Of the United States
attorneys. Stuart McNamara of the
Department OF Justice at Washington.
| and Charles w, Miller OF this district.
Judge Anderson continued the case
until Oct. IL next, to permit the prose-
cution to introduce as witnesses Frank
H. Hitchcock. former chairman of the
Republican National. Committee; Nos-
man e. Mack, chairman of the Demo-
cratic National Committee; George Cor
| telyou. certain members OF the office
stan Of J. Pierpont Morgan & Co.. and
certain officials OF various departments
Of the Government at Washington.
Defense Protested.
The defense protested against q con-
tinuance, saying the Government should
have been prepared at this time to sub
NIT all it's evidence and the court at
nrst seemed to approve. but on state
ment of the opposing counsel as 10
what It was expected to prove by the
r+tfn "a decided TO
hear the further evidence.
Mr. Mcnamara declared 1t was I'M
possible to anticipate the wide SCOPE
that the case had taken on. He pro-
posed to proye by Messrs Hitchcock
and Mack. he said. that they both had
made public announcement that the
| story" offered to both Of them TOR
q consideration, that there was cor
ruption In the Panama transfer. was
e lake originated ~ biackmaiiers.
who a firat hoped to get money from
/ william Nelson Cromwell, but failed
The story was 4ubiisheds In xk.e s1sew
| YORK world and the same Journal
printed Mr.. Croniweil'b denial OF Il on
Oct. 3. Mr.. MeNamara said he expect
ed to prove that the defendants had
knowledge of this denial when they
printed their editorial articles pub
lished In The Indianauolis News, BY
members OF J. Pierpont Morgans stan,
he said he expected to prove that the
$40. 600, 900 the United States paid for
the Panama Canal was paid directly
10 the two old French companies and
at once distributed to about 100000
holders Of their stock In France, ana
that no go-between got a cent OF pront
The allegations OF American corrup-
ton in the case are not only malicious.
but absurd, he said.
Judge Anderson had expressed doubt
as to the relevancy OF further evidence
for the reason. he said, that he himseIt
was impressed by the fact that MT
Cromwell had refused to tell the SEN
ate investigating committee the names
OF his clients who composed synol-
cate for "Americanizing' the canal
plan that afterwards was abandoned.
The public might justly infer. the court
said. that there was something wrong
somewhere in the transaction In wnieh
sac. 10000 OF it's money was expended
The Public's Money.
"This forty million OF dollars sah
the court. that was paid for thA
canal was the public's money You
must remember. A part OF 1t was my
money: q part Of It was yours
Mr.. Mcnamara combatted the court
ON this point, saying that the fact that
Mr. Cromwell subsequently declared
that NO American received a cent of
nrofit from the sale and that promi-
nent men and newspapers had aosolved
Mr. cromwell, Charles p. Taft, Doug
less robinson and ]. Pierpont Morgan,
fro,n suspicion OF corruption In the
rnsttar should have caused the owners
40 The indianapolis News not to pub
Iisb the charges in the alleged ltbelous
manner in which It did publish them.