The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1909-10-11
LIBEL CASE RESUMED.
DeIavan Smith and C. r.. williams APP
pear for Trial.

indianapolis, Oct. 11.-with the
son Cromwell, attorney for the old
French Panama canal companies,
made to the Morgan investigating
| committee of the United States senate,
| an explicit statement of his relations
| in the transfer of the canal zone to the
| United States, certain parts of his
testimony were read in the United
States court of this district today by
Stuart Mcnamara. attorney for the de-
| partment of justice, in the hearing of
| Delavan Smith and Charles r. Will
| liams, proprietors of the Indianapolis
| News, charged with criminal libel In
having alleged in their newspaper that
| there was corruption in the purchase
of the canal zone by this country.
Mr.. Mcnamara pointed out to the
court that Mr.. Cromwell assured the
committee he had no interest in the
matter, save as attorney, that he had
then received 100000 for his services
and that he was in 40 haste to submit
| his bill for further attorneys fees.
Mr.. Cromwell added that J. Pier
pont Morgan told him his banking
house had received only $4,000 for
it's services in the collection of the
s40,000,000 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
tail that he had received a cent from
the government of Panama, that he
owned securities in the Panama Canal
company; or that he had received or
expected to receive any commission as
fiscal agent or any compensation 9TH
er than an attorney should have for
his services.
Reads From Report.
Mr.. Mcnamara proceeded to read
from the committees report as to Mr..
CromwelTs refusal to make public the
dates of an effort to "Americanize"
the Panama canal by forming a COM
pany to buy it from the French own
ers.
His reasons for this refusal was that
the project failed and that he must
decline under an attorneys privilege
to discuss publicly this business of I'M
named clients of his law office. Mr..
Cromwell maintained that this matter
had no connection whatever with the
final transfer of the property.
All the testimony alluded to by Mr..
Mcnamara was taken by the senate
committee in February, 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 Pan
anna to the Nicaragua route and that
the official valuation of the Panama
property was set at $40.0000O0. He pro-
duced this record, he said, to refute the
charge that the commission ever had
approved the selection of the Nicaragua
route except that it considered the or
iginal price for the Panama zone, de-
manded by the french owners $IUS'VVV'-
900 exorbitant-
The Panama route was at once rec
he said. when the price
dropped to 100000
Mr. Namara turned witness, and ex-
amined b. Charles w. Miller. United
States district attorney, testified that he
obtained copies of the Indianapolis
News at the newspaper office in Wash,
lrgton and that these papers contain 4ea
money!" alleging that there was |!
graft of millions in the transfer of
the Panama canal to this country.
Newspaper Men Enter Denial.
Indianapolis, Oct. 1.-THE Panama
Libel case" was called again today be-
States court of this district, and Della
van Smith and Charles r. Williams,
of the Indianapolis News
for a continuation of their
hearing to determine whether or not
they should be removed to the District
Of Columbia for trial under an 1ndlct-
ment Of a federal grand jury charging
them with having criminally hbeled
Theodore Roosevelt. Charles p. Tart,
William Nelson Cromwell. Douglas
Robinson and others in having publish
I'd articles alleging corruption in the
purchase of the Panama canal zone by
his country
1t was understood today that the
government would not now produce
other witnesses than were examined at
The partial hearing of Messrs. Smith
and Williams case last June, but that
Stuart Mcnamara special attorney of
the department of justice, would make
further argument.
Mr.. Mcnamara arrived last night
from Washington. He spent part of
the last summer in Paris collecting evil
lence as to the details of the transfer
Of the Panama canal zone from the two
Did French companies to the United
States. 1t has not been made known in
what form this evidence will be offered
to the court if it is offered at all.
1t is the contention of the government
that the transfer of the Panama prop
erty from the two French companies
proper and legitimate way through the
banking house of J. p. Morgan & Co.,
Ind William Nelson Cromwell, as at
-orney for the companies; that it was
publicly made known that the stories
IF an enormous graft" in the deal
emanated from persons seeking to
olackmail. and that the publishers of
he Indianapolis News reprinted the
'umors maliciously.
Messrs Smith and Williams have en-
cred denial of intent to libel in print
ng the current charges and editorially
investigation and they resist
'emoval to the District of Columbia for
rial under the Indictment.