TIIE MORNING OREGONIAN, WEDNESDAY, DECEMBER 9. 1908.
ASKS
CONGRESS
TO INVESTIGATE
World Calls Upon Legislators
to Probe Panama Ca-
nal Scandal.
SAYS ROOSEVELT FALSIFIED
Kdlrorial Writer Hashes to Kescuc.
of Delran Miiltli and Alleges Tliat
President Made Deliberate
Misstatements of Facts.
NEW YORK. Dec. 8. The New York
World, to whlcli relKvan Smith, editor
of the Indianapolis News, referred In
his reply to president Roosevelt's at
tack upon Mm as the authority for the
artlrlo on the Panama Canal which ap
peared in his paper and called forth the
President's letter, says today:
"In view of President Koosevelfs de
liberate misstatements of fact In hi
scandalous personal attack upon Mr.
Delavan Smith, editor of the Indian
apolis News, the World calls upon the
Congress of the United States to make
immediately a fuil and Impartial inves
tigation of the entire Panama Canal
scandal.
"The investigation of 1906 by the
Senate committee on Interoceanlc ca
nals was blocked by the refusal of
William Nelson Cromwell to answer
the most pertinent questions of Senator
Morgan of Alabama. Since that time
nothing has been done, since after Sen
ator Morgan's death there was no suc
cessor to carry on his great work of
revealing the truth about Panama cor
ruption.
V1m Cot the .Money?
"The Indianapolis News said In the
editorial for which Mr. Roosevelt as
sails Mr. Smith:
' It has been charged that the United
States bought from American citizens
for $40,00".000 property that cost these
citizens only 112.000,000. There Is no
doubt that the Government paid $40,-
000,000 for the property. But who got
the money?
"President Roosevelt's reply to this
most proper question is for the most
pait a string of abusive and defama
tory epithets. But he also makes the
following statements as truthful in
formation to the American people:
The united States did not pay a
cent of the $40,000,000 to any American
citizen. The Government paid the $40.-
000.000 direct to the French Govern
ment, getting the receipt of the liqui
dator appointed by the French Govern
ment to receive the same.
There Was So Syndicate.
" "The United States Government has
not the slightest knowledge as to the par
ticular individuals among whom the
French government distributed the same.
" 'As far as I know there was no syn
dicate: there certainly was no syndicate
in the united States that, to my knowl
edge, had any dealings with the Govern
ment, directly or Indirectly.'
"To the best of the World's knowledge
each and all of these statements made
by Mr. Roosevelt and quoted above are
untrue, and Mr. Roosevelt must have
known they were untrue when he made
them.
"As to the detailed distribution of the
Panama loot, only one man knows it.
and that man is William Nelson Crom
well. The two men who were most In
Mr. Cromwell's confidence1 are Theodore
Roosevelt. President of the United States.
and Ellhu Root, formerly Secretary of
War and now Secretary of State. It was
they who aided Mr. Cromwell in consum
mating the Panama revolution, arranged
the terms of the purchase of the Panama
Canal, made the agreement to pay $40,-
0. 000 on the canal properties, and
additional $10,000,000 for a manufactured
Panama Republic, every penny of both
of which sums was paid by check on the
l nlted States Treasury to J. P. Morgan
Co. not to the French government, as
Roosevelt says, but to J. P. Morgan & Co.
Based oa Summary.
"The natural query of the Indianapolis
News as to "who got the money' was
based on the World's historical summary
of Mr. Cromwell's connection with the
Panama Canal. The inquiry was origin
ally me worlds, and the orld accepts
Mr. Roosevelt's challenge. If Congress
can have all the documents In the case.
as Mr. Roosevelt says, let Congress make
a complete investigation of the Panama
Canal affair, and In particular of William
elson Cromwells relation wtih the
French company, with Panama and with
the Crovernment of the United States.
Let Congress officially answer this ques
tion: vt no got the money "r
"The old French company organized by
Ferdinand de lesseps In 1ST9 fulled in
1K8. years before Mr. Cromwell's rela
tions with President Roosevelt began.
. As Mr. Cromwell testified before the Sen-
am commute on eoruary as, isos. "we
never had any connection with the so
called De Lesseps company. Neither did
the United States Government conduct
negotiations with the old French Panama
Canal Company."
"What Mr. Cromwell did represent was
the new Panama Canal Company, the
American Panama Company, and the $5,
COd.OtO syndicate which he formed to
finance the new company. After Mr.
Cromwell had testified 'I do not recall
any contract," Senator Morgan produced
a contract reading 'Panama Canal hear
ing" (vol. II. p. 114):
Cromwell's testimony, "in May. 1904, I,
representing the New Panama Canal
Company, and Judges Day and Russell,
representing Attorney - General Knox,
consummatod' the transfer and sale to
the United States.
"Mr. Roosevelt says 'the Government
paid this $40,000,000 direct to the French
government."
"Mr. Cromwell says that the United
States paid the money to J. P. Morgan
& Co.
"Mr. Roosevelt says the French gov
ernment distributed the sum."
"Mr. Cromwell testified as to how he
distributed it.
"'Mr. Roosevelt talks of getting the re
ceipt of the liquidator appointed by the
French government to receive the same.
"Mr. Cromwell testified:
Explains Payments.
" "Of the $45,000,000 thus paid by the
United States Government. $25,000,000 was
paid to the liquidator of the old Panama
Canal Company under and in pursuance
of an agreement entered Into between the
liquidator and the new company. Of the
balance of $15,000,000 paid to the New
Panama Canal Company, $12,000,000 has
already been distributed -along the stock
holders and the remainder Is being held
awaiting; final distribution and payment.
"What follows is further eloquent tes
timony taken by the Senate committee:
" 'Senator Tallafero There Is $3,000,-
ooo r
"'Mr. Cromwell Three million; yes,
sir."
" 'Senator Tallafero Who holds that
money?"
" 'Mr. Cromwell The new Panama
Canal Company In its treasury."
"And yet Mr. Roosevelt says that 'the
United States Government has not the
slightest knowledge' as to the distribution
of the $40,000,000. and that this was the
business of the French government.'
As to Statement. ,
"As to Mr. Roosevelt's statement that
'there was no syndicate." he could have
read the syndicate subscription agree
ment on -page 1160, vol. 2. of the testi
mony before the committee on inter
oceanlc canals, if he had cared for the
truth.
"That the United States Oovemoment
was not dealing with 'the French gov
ernment' or 'the liquidator appointed by
the French government,' or with Colom
bia, or with Panama or any one else
except William Nelson Cromwell and his
associates, is made still more plain by
the description of Senor J. Gabriel
Duque as to the Panama revolution and
as to the manner in which Mr. Cromwell
got $10,000,000 additional from the United
States Treasury, senor mique saia:
" 'Mr. Cromwell made the revolution.
He offered to make me president of the
new republic and to see me through if 1
would raise a small force of men and
declare a secession from Colombia. He
made promises that we should have the
help of his government, it was accom
panied by a liberal use of money. We
bought this General and that one. paying
$3000 to $4000 per General. The Colom
bian officers were all paid off and the
Colombian General who was sent to stop
the revolution was also bought off.'
Cromwell Is Elected.
"Then Mr. Cromwell, having been elect
ed by the Panama Republic as general
counsel, and he and J. P. Morgan having
been appointed a 'ftecal commission," ne
gotiated with President Roosevelt ' by
which the United States paid $10,000,000
to the "fiscal commission" lor Mr. Crom
well's Panama Republic. Of this money
three-quarters Is still under the control
of the 'fiscal commission."
Why did the United states pay 40,-
000.000 for a bankrupt property whose con
trol could undoubtedly have been bought
In the open market for less than $4,000,-
000?
"Who were the Panama Canal Com
pany?
'Who bought up tne oongauone or tne
Old Panama Canal Company for a few
cents on the dollar?
Asks About Money.
Among whom was divided the $15,000.-
oon paid to the New Panama Canal Com
pany?
Whether L'ougias rcomnson, wno is
Mr. Roosevelt a brother-in-law, or any of
Mr. Taft's brothers, associated himself
with Mr. Cromwell In Panama exploita
tion or shared In these pronts are In
cidental to the main issue of letting In
the light.
Whether they did or did not, whether
all the pronts went Into William Nelson
Cromwell's hands, or whatever became of
them, the fact that Theodore Roosevelt,
as President of the United States, Issued
a public statement aoout sucn an impor
tant matter, full of flagrant untruths.
reeking with misstatements, challenging
line by line the testimony of William
Nelson Cromwell and the official record,
makes it Imperative that full publicity
come at once through the authority and
knowledge of Congress."
IS CHAMPION OF ItOOSEVELT
Star Replies to World Over Panama
Canal Money.
Empowered to Act.
" 'Mr. "William Nelson Cromwell Is ex
clusively empowered under the formal
agreement with the board of directors of
the Compagnie Nouvelle du Canal Pana
ma (New Panama Canal Company of
France) to effect with an American syn
dicate the Americanization of the Panama
Canal Company on the following basis.'
"The basis on which Mr. Cromwell was
exclusively empowered In this contract
was that an American Panama Canal
Company with a capitalization of $60,000.
t preferred and $45,000.oon common stock
should be organized to take over the Pan
ama t'annl concessions and all other
property belonging to the new French
Panama Canal Company, which had
bought the same from the old De Lesseps
company. This company was incorporat
ed in New Jersey with dummy directors.
There was also incorporated in New Jer
sey with dummy directors the Inter
Oceanlc canal Company.
".-natir Morgan unearthed a copy of
tiie lo.'O'.ono syndicate agreement, which
provided that t lie subscribers should con
tract with William Nelson Cromwell to
pay t3.vtl.0M) In cash and to take their
several allotments In the enterprise.
Jive Million Enough.
"Five million dollars was more than
ample to -buy the majority of the eld
Panama stock. As the World said on
October 25:
" 'Mr. Cromwell applied to the canal
situation the methods of American high
finance by which a syndicate takes over
the property of a bankrupt concern, then
creates a holding company and a recapi
talization, keeping the majority control
In a syndicate trusteeship."
"Following that, to quote from Mr.
CINCINNATI, Dec. 8. The Cincinnati
Times-Star, of which Charles P. Taft Is
editor and proprietor, today publishes the
following reply to the articles on the Pan
ama Canal which appeared in the Indian
apolis News and New York World:
'The New York World, the paper which
was responsible for most of the talk about
'the Panama Canal scandal during t.ie
recent campaign, says' this morning:
"Whether Douglas Robinson, who is Mr.
Roosevelt's brother-in-law, or any of Mr.
Taft's brothers associated himself with
Mr. Cromwell in Panama exploitation or
shared in the profits is Incidental to the
main issue of lettir? in the llgiit."
"This statement is Intentionally mis
leading. The Panama story was used In
the campaign for political reasons solely.
Tne one thing that gave It political value
In the eyes of those who used it was the
fact that the story as printed, carried the
names of a brother of the Republican
candidate for the Presidency an9 a broth
er-in-law of the President. The Infer
ence was plain enough. It was that Theo
dore Roosevelt and w. H. Taft had used
their influence as high officials of the
United States Government to help near
relatives in looting the Treasury at Wash
ington. That was the meat of the story.
If the names of Douglas Robinson and
C. P. Taft had not been included In it.
flimsy and absurd as it was. the lying
yarn would never have been used by the
World. But the World, the Indianapolis
News and other papers, for one reason or
another, wanted to defeat Mr. Taft and
discredit Mr. Roosevelt.
The World! is trying to dodge the Is
sue. It wants to be relieved or the re
sponsibility of trying to drag the names
of Mr. Robinson and Mr. Taft Into its
ade-to-order mess of scandal and Blfme.
"Both the World and the Indianapolis
News are crying, 'Let in the light.' We
thoroughly agree with them. But a little
time has passed and after the most des
perate efforts the cornered World and
News have produced all evidence they
can. An apoioKy wouia oe in ara-r irora
those newspapers.
In the meantime. Mr. Tart reserves the
right to take legal steps which possibly
have been made more desirable by the
events and insinuations or tne past n
hours.'"
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Portland's largest and
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.Framing a Specialty. '
MAIL. ORDERS PROMPTLY FILLED
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January Delineator, 15c
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$1.00
Our Great Annual Xmas Sale of Gloves
2 Trefousse Gloves 1.48 $1.75 Chamois Gloves $1.25 $4 Long Kid Gloves $2.49
Women's 3-clasp Delorme quality Trefousse Gloves
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Jtk
Children's Christmas Books, illustrated in color
Only once in a season do we hold a sale
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only exclusive tailored novelty suits
imported by any Portland store.
Today we place on sale the remain
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we offer about forty-five handsome
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Regular $38 Suits 21.50
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14 More Shopping Days to Xmas.
The Children's Long
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The Orphant Annie Book
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illustrated. $1.5.'.
The Arabian Nights
50 full-page illustrations in
color, by Dulac, $5.00.
The Muffin Shop
Full-pare colored illustra
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Dream Blocks
Pictures in color bv Jessie
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Alice's Adventures in
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Peter- Newell illustration,
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My Busy Days
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The Runaway Boy
Hv Rilev, illustrated .in col
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Riley Child Verse
Bv James Whitcomb Riley.
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When Good Fellows Get
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Toasts, witty dayinjrs, clever
, verse, V9c.
Peter Pan
Snecial illustrated edition by
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Ingoldsby Legends
Special illustrated edition by
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In eolor l,nibM "Tulm From
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CH GIVES
ii
ROASTS
Unmercifully Flays Gallagher,
Wilson and Fusey.
Discuss Panama Trip.
WASHINGTON. Dee. . At the first
meetlnsr of the House committee on inter
state and foreign commerce today, a prop
osition for a visit to the Panama canal
Zone bv the entire commute before the
end of the Christmas holidays was dis
cussed. A subcommittee was appointed
to ascertain whether suitable arrange
ments could ba made. Representative
Hepburn, of Iowa. Is chairman.
One of the greatest lesthn belts in the
world recently was completed t a Vhlla
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lonit by five wide, and reiuirod SOU hides
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SAYS EVIDENCE PERJURED
Ulssects Testimony of Former Su
pervisor and Tells Jury It Sliould
Be Corroborated To Jury
Late Wednesday.
SAX FRANCISCO, Dec. 8. In an ad
dress covering more than six hours
Henry Ach, attorney for Abraham Ruef.
grilled James S. Gallagher. Andrew M.
Wilson and John L. Furey, ex-sup?rvi-sors
who testified in regard to the bribery
charge against Ruef. He denounced Gal
lagher's testimony as "fillful. deliberate
perjury." Mr. Arch's speech was a literal
dissection of the testimony of each of the
prosecution's witnesses. Ruefs case will
go to the Jury Wednesday afternoon.
Special Agent William J. Burns did not
escape the wrath of Mr. Arch, who eald
In his connection, "away with detectives
who assassinate character." Air. Arch
also referred to Mr. Burns as the "cre
ator of testimony."
Failed to Produce Krldence.
Mr. Ach said that the prosecution had
failed to produce any evidence besides
the testimony of Gallagher. Wilson and
Furey to .connect Ruef with the offer
of money, and stated further that the
Jury was bound to demand additional
and corroborative evidence or return a
verdict of rot guilty.
In . his reference to the testimony of
Latham, the chauffeur later indicted for
perjury in connection with his evidence
during the trial. Mr. Ach charged di
rectly that Latham had refused to avail
himself of the privilege of not testifying
and had repudiated the testimony given
previously under the direction of Mr.
Byrns.
Mr. Ach concluded without preroration
.after he had been reminded by the court
that hte time was drawing to a close.
After a recess Thomas L. Dozier. of the
defense, began the closing address at the
evening session.
TURNS DOWN RESOLUTION
Governor Hughes Itefuses to Ap
point Investigating Commission.
ALBANY, X. y., Dec. 8. Governor
Hughes has sent a rply to the resolution
recently adopted by the Chamber of
Commerce of New York City asking for
the appointment of a commission of citi
zens to investigate the conditions sur
rounding the life Insurance companies of
New York State and report to the Incom
ing Legislature, in which he says It does
not seem advisable to appoint sucli a
commission at the present time. He says,
however, that he will give consideration
to any particular amendment of the law
that may be suggested.
Times from Teheran says the National
ists at Meshada, a holy city of North
eastern Persia, have routed the garri
son and seized the Government offices.
Fresh disturbances are reported at
Hamadan, 165 miles from Teheran, Ker
manshah and Talisu.
- z n- ' "f -
f y J ' '
PUT GARRISON TO ROUT
Nationalists Score Victory at Mesha
da and Capture All Officers.
LONDON, Dec. S. A dispatch to the
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