Evening star., 1909-06-02
PUT OFF UNTIL FALL
Government Gets Continuance
on Panama Libel Case.
TO COME UP OCTOBER II
Proceedings in Federal Court in In
dianapolis.
PROSECUTION REQUEST DENIED
Application for Removal of De-
TO COME UP OCTOBER II
PROSECUTION REQUEST DENIED
Application for Removal of De-
PENDANTS to This City Refused.
To Be Heard on Merits

INDIANAPOLIS, June Frank Hitch
cock. chairman of the republican national
committee; Norman E. Mack, chairman OF
the democratic national committee; mem
bers of the office staff of j. Pierpont Nor
gan & Co. of New York. and certain Off
cials in the departments of the govern
ment at Washington are to be produced
as witnesses for the government in the
prosecution of Delavan Smith and
Charles II. Williams, owners of the In
dianapolis News charged with criminal
libel in publishing intimations that there
was an enormous graft in the purchase
OF the Panama canal by the United States
from the old French companies which
owned the property. The government at
torneys, after the indictment of Messrs.
Smith and Williams by a grand jury in
the District of Columbia, made applica-
ton to the United States court of this
district for their removal to the District
of Columbia for trial. This order the
court refused to make until it was salts
fled there was probable cause for the in
dictment for criminal libel. which, to be
complete. must contain the element of eX-
press malice.
Government Seeks Time.
Justice at Washington and United States
Attorney Miller of this district this morn
ing, at the opening of court, asked for a
continuance, saying that since the court
had decided to hear evidence on the mer-
its of the case the matter had taken a
wider scope than they were prepared for
The court demurred, saying counsel
should have anticipated his action and
should have been prepared. Commenting
on the Panama situation in general, Judge
Anderson said he thought the public had
a right to question the conditions of the
transfer of the canal because of William
Nelson Cromwelrs course before the Sen
ate investigating committee.
This forty millions of dollars" said
the court, "that was paid for the canal
was the public's money. you must re-
member. A part of it was my money,
part Of 1t was yours"
Contention of the Government.
The governments attorneys then said
they wished to produce Messrs. Hitch
cock and Mack to prove that each of them
had announced that the charges of cor
ruption in the Panama transfer had been
disproved.
Counsel stated that they expected to
show that the Indianapolis News had pos
session of these facts when editorials
containing the allegations of fraudulent
dealing in the matter by Douglas Robin
son, William Nelson Cromwell, c. F..
Taft, j. p. Morgan and others were
published, and that this was malicious
libel.
Members of j. P. MorSans staff were
to be summoned, counsel stated, to show
the receipts the company gave to the
United States for S4O,OOO.WO, the pur-
chase price of the canal, and the receipts
given by the French companies for the
payment for the securities sold to the
United States.
Counsel held that these two sets of re-
received cent of profit that the deal
was a clean piece of business, as Mr.
Cromwell told the Senate committee after
he had declined to reveal the names of
the subscribers to a corporation that
previously had been planned TO "Ameri-
canlZe the Panama canal, but had been
dissolved because the purchase seemed at
that time impracticable.
Claims of the Defense.
The attorney for the defense protesting
that The government was uselessly delay
ing the case. Mr. Mcnamara said it was
at the instance of Delavan Smith that
his trial was held in Indianapolis instead
of in Chicago.
Counsel for defense retorted that Mr.
Smith waited in indianapolis for arrest
for four months after the indictment and
the government made move during
that time.
Despite the protests of the defense
Judge Anderson consented to a continu-
ance. and the government will introduce
It's witnesses In court here October IL.