The Forest Republican. [volume] (Tionesta, Pa.) 1869-1952, 1909-10-13
PANAMA LIBEL CASE
Continuation Of Hearing Against
Smith and Williams.

at Former Hearing That Correction
Of New York World Was Sent to In.
dianapoIis News but He Later
Found That Denial Of Cromwell
Was Printed In Edition Of World
That Was Not Sent to indianapolis.
indianapolis, Oct. 12.--The hearing OF
the libel case against Delavan Smith
and Charles c. Williams, both Of
whom are under indictment at Wash
lngton In connection with others for
structures on the Panama canal pur-
chase, was resumed before Judge An
lerson of the federal court Stuart
Mcnamara. chief counsel for the gov
ernment, had charge of the case.
Irving G. Sauter, government secret
service man, was the only witness in
troduced by the government He tes-
titled that he had visited the Office Of
the indianapolis News, in Washington,
and that he had seen copies of the
News on sale in Washington hotels.
Sauter was not cross-examined.
Documentary Evidence.
Mr.. Mcnamara said he would in
troduce documentary evidence and be-
gan by reading portions of the testi.
mony given by William Nelson Crom-
well before the senate investigating
committee in 1906, when the senate
was investigating the transaction by
which the United States obtained the
Panama canal property from Colon
bia.
Mr. Mcnamara read from report
of the Isthmian canal commission the
appraisement of the Panama canal
property for the purpose Of reaching a
purchase figure for the United States
to pay for the property. These figures
showed the total appraisement was
$40,000,O00. A further statement was
that the canal company had spent
$1O9, 800 on the property.
Mr.. Mcnamara introduced in evil
dence an article published in the In
dianapolis News an Oct. 36 under a
heading, "The Canal Deal" and an
other published on Dec. 10 under a
heading "WhO Got the Money!"
These were articles set out in the in
dictment. Mr.. Mcnamara asked Mr..
Winter, the attorney for the defense,
to admit that copies of the Indianapo-
lis News containing the alleged libel
Gus articles had been circulated in the
District OF Columbia. Mr., Winter re-
fused.
Mr.. Mcnamara said that when he
was here for the former hearing, he
believed the denial made by William
Nelson Cromwell and published in the
New York World on Oct. 6, 1908, was
printed in the edition which was sent
to the indianapolis News, but that
since then he had found that the de-
nial was published in the second edl-
tion of the World, and that the second
edition is not sent to the News.
Mcnamara Argues For Government.
No further testimony was offered,
the government resting its case. The
defense announced that it had nothing
more to offer. Arguments we're then
begun, Mr.. Mcnamara making the
first argument for the government.
He took up iirst the question of
whether there was probable cause for
belief that the defendants committed
the crime alleged in the Indictment.
He reviewed a number of facts in the
case and pointed out that Mr.. Smith
had read the Panama canal article
complained Of in the New York
World in New York and that he
clipped out the story, filed 1t with
telegraph company to be telegraphed
to the indianapolis News. Mr.. Will
Jams, he said, testified that he did not
write the alleged libelous articles, but
that they all came to MIN for ap-
proval before being published in the
News. This, Mr.. Mcnamara said,
showed the connection Of Mr.. Williams
with the articles in question.
Mr.. Mcnamara said the testimony
showed that none of the parties had
tried to verify the rumors and the
charges made in the Panama canal
matter, but that they had gone ahead
and published them without investi-
cation.
Mr.. Mcnamara contended that the
position of the News in this matter
was that when a man was charged
with graft and crime and had made
denial of the charge, he should be re-
garded guilty until he proved his in.
nocence. He said Charles p. Taft
denied the charge that had been made
against him In relation to the Pana.
ma canal deal and yet the News said
Mr.. Taft had not produced any evi.
ience to support his denial Mr. Nc
Namara read all the articles set out
In the indictment to show, he said,
that the libel was continuous, running
through the News for several days He
knew that the records of the Panama
leal were all accessible in the govern
ment OFF, in Washington and that
the defendants could have investigat-
ed the charges before publishing the
alleged libelous articles If they had
cared to make sure of their facts.
Temporary Removal Of Duty.
Mexico City, Oct. 12,-The temper.
lrN rnnlnLll ~ III. .IItL.- ~. .a..n En-