Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1909-06-03
Government Wins Point
In Indiana oils Court.
Hearing in Panama Libel Pros
ecuiion Goes Over.
Court Aceedss 10 Governments
Plea for Extension Of Time.

took prominent part. over the merits
of the panama scandal" the govern
ment won point today in it's prosecution
of Charles r. Williams and Delavan
Smith, owners Of the Indianapolis News.
indicted by grand jury in the District
of Columbia on the charge of criminal
libel in publishing intimations that there
was enormous graft" in the purchase of
the Panama canal by the United States.
This was the second day of the hearing
before Judge Anderson in the United
States district court on the government
application for an order removing the de-
PENDANTS to the District of Columbia for
trial.
At the request of Federal Attorneys
Stuart Mcnamara and Charles w. Miller.
Judge Anderson continued the case until
Oct. Il to permit the prosecution to intro
duce as witnesses Frank II. Hitchcock.
former chairman of the Republican ma
tional committee; Norman E. Mack.
chairman of the Democratic national
committee: George B. CortelyOu. certain
members of the office staff of j. p. Nor
gan & Co.. and certain officers of the va
riolls departments of the government at
Washington.
The defence protested against d con-
tinuance. saying that the government
should have prepared by this time to sub
nit all its evidence. The court at first
seemed to approve. but on statement
by the opposing counsel as to what it was
expected to prove by the new witnesses.
the court decided to hear the further evil
dence.
Mr.. Mcnamara declared it was impos-
s;ble to anticipate the scope that the case
had taken. He purpOsed to prove by
Messrs. Hitchcock and Mack. he said.
that they both made public announce
mcnts that the 'story" offered to each of
them for consideration. that there was
corruption in the Panama transfer. was
"a fake" originated by blackmailers who
at first hoped to get money from William
Nelson Cromwell. but failed. The story
was published in the New York World
and the same journal printed Mr.. Crom-
wells denial Of it on Oct 8. Mr.. Nc
Namara said he expected to prove that
the defendants had knowledge of the de-
NAL when they prepared the editorial ar
ticles published later in the Indianapolis
News.
as to the relevancy of further evidence.
because he said he himself was Impress
| ed by the fact that Mr.. Cromwell refused
| to tell the Senate investigating committee
the names of his clients. who composed q
sy Indicate for 'Americanizing" the canal,
plan that was afterward abandoned.
The public might justly infer. the court
said that there was something wrong
somewhere in the transaction in which
| SAC, 900 of its money was expended.
Mcnamara combated the court on
| this point. saying that the fact that
Mr.. Cromwell subsequently declared
that no America received cent of
profit from the sale. and that other
prominent men and newspapers had
absolvcd Mr.. Cromwell. Charles p
| Taft. Douglas Robinson. and }. p. Nor
gan from suspicion of corruption in
| the matter should have caused the
| owners Of the Indianapolis News not
to publish the charges in the alleged
libellous manner in which it did pub
| fish them.
| Commenting on the Panama situa-
ton in general. Judge Anderson said
| he thought The public had right tc
question the conditions of the transfer
of the canal because of William Mel
son Cromwelrs course before the Sen
ate Investigating committee,
| This slO0Oo.00o.'' said the court
that was paid for the canal. was the
publiC's money. you must remember
A part Of il was my money. part of
| it was yours
| The governments attorneys then
said they wished to produce Messrs
| Hitchcock and Mack to prove that each
of them had announced that the
charges Of corruption in the Panama
transfer had been dsproved.
| Counsel stated that they expected t.
show that the Indianapolis News hat
possession If these facts when cditO
rails containing the allegations OF
fraudulent dealing in the matter by
Douglas Robinson. William Nelson
Cromwell. c. f. Taft. J. p. Morgan ant
others were published and this was
malicious libel
| Members of J. z. Morgan's staff were
| to he summoned. counsel stated, t
show the receipts the company gave t.
the United States for $40,000,O00 the
purchase price of the canal and thu
! receipts given by the Frencn capltal
lists for the payment for the securities
sold to the United States.
Counsel held that these two sets o.
receipts would show that no 'go-be
tween" received a cent of profit: tina
the teal was a clean piece of business
as Mr.. Cromwell told the Senate com
mittee after ne declined to reveal thu
names of the subscribers to a corpora
ton that previously had been planned
to "Americanize" the Panama cana
but mad been dissolved because thu
purchase seemed at that time imprac
ticable.
Il The attorney for the defence pro
testing that the government was use
lessly delaying the case. Mr.. McNa
mara said that it was at the instanc
of Delavan Smith that his trial wa
held in Indianapolis instead of Chi
!. cago Mr.. Winter retorted that MI
J Smith waited in Indianapolis for ar
| rest for four months after the indict
} inent and the government made n
move during that time.