The Marion daily mirror. (Marion, Ohio) 1892-1912, 1909-06-03
HAD CAUSE lT0
SCENT SCANDAL
Judge Iatimates Cromwells
Acts Suspicious.
LIBEL CASES CONTINUED

Given Until Oct. II to Secure A.
tendance Of Witnesses to Show
That Owners OF indianapolis News
Had Numerous Opportunities to
Learn Truth Of Graft Charges In
Connection With Canal. Purchase.
: Indianapolis. Ind, June 3.-After a
sharp controversy, In which tho court
took a prominent part, over the mer-
its of the so-called Panama scandal,'
the government won a point in Its
prosecution of Charles r. Williams
and Delevan Smith. owners of the In
dianapolis News, indicted by grand
jury in the District of Columbia on
the charge of criminal libel in pub.
fishing intimations that there was an
enormous graft" in the purchase of
the Panama canal by the United
States.
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. II next to permit the pros
ecution to introduce as witnesses
Frank II. Hitchcock, former chair.
man of the Republican national com
mittee; Norman Il. Mack, chairman
of the Democratic national commit
tee: George B. Cortelyou. certain
members Of the Office staff of J. Pier
pont Morgan & Company and certain
officials Of various departments Of the
government at Washington. The de-
fense protested against continu-
ance, saying the government should
have been prepared at this time to
submit all it's evidence, and the court
at first seemed to approve. but on a
statement OF the opposing counsel
as to what II was expected to prove
by the new Witnesses the court de.
cided TO hear tie further evidence.
MIR. Mcnamara declared It was i'm
possible to anticipate the wide scope
that the case had taken on. He pur'
posed to prove by Messrs. Hitchcock
and Mack. he said, that they both had
made public announcements that the
STORY" offered to both Of them. for a
consideration. that there was corrup'
tion In the Panama canal transfer
was o fake" originated by black
mailers. who at first hoped to gel
money from william Nelson Crom
WELL but failed. The story was pub
lished in the New York World, and
the same Journal printed Mr.. Crom
wells denial of It. on Oct. 3. Mr.
Mcnamara said he expected to prove
that the defendants had knowledge
of this denial when they prepared
their editorial article published late
in the Indianapolis News. by mem
bers OF ]. Pierpont Morgan's staff. he
said, he expected to prove that this
| $40, ,O0O,0 900 the United States paid fol
the Panama canal was. paid directly
to the two old French companies and
at once distributed to about 100000
holders OF their stock In France, anC
that no go-between got a cent o.
profit. The allegations OF American
corruption of the dead were not onl,
malicious. but absurd, he said.
Judge Anderson had expressed
doubt as to the relevancy of furthei
evidence for the reason, he said, tina
ne himself was impressed by the fac
that Mr.. Cromwell had refused to tel
the senate investigating committed
the names Of his clients. who com
posed syndicate for American
izing" the canal. plan that after
ward was abandoned. The public
might justly infer. the court. said
that there was something wroni
somewhere in the transaction II
which $40,000,000 Of its money wal
expended.
Mr.. Mcnamara combatted the cour
on this point. saying that the fac
that Mr.. Cromwell subsequently de
clared that no American received {
cent Of profit from the sale and tina
other prominent men and newspaper
had absolved MIR. Cromwell, Charlie,
r. Taft, Douglass Robinson and
Pierpont Morgan from suspicion o
corruption in the matter should hav'
caused the owners OF the indianapolis
News not TO publish the charges II
the alleged libelous manner In Whicl