Morning Oregonian., December 11, 1908, Page 9, Image 9

1
TITE MORNING OREGOXIAX, FRIDAY, DECEMBER 11. 1008.
T. II
CROMWELL TELLS
ABOUT CANAL SALE
Declares False All Charges
American Got Any Part
of Price.
ALL WENT TO FRENCHMEN
Quotes Article From World Showing
He Dented Charge During Cam
palgn Distribution of the
Money Is Pubic Record.
NEW YORK, Dec. 10. William Nelson
rromwell authorized today the following
statement:
JJy attention lias been called to a
statement Issued by the editor of the
Indianapolis News, in which he attempts
to reply to the charge mude by President
Roosevelt thar certain statements made
In the Indianapolis News, both before
and since the recent election, and re
lating; to the purchase of the Panama
Canal bj- the United States, were false
and untrue. The President said:
" "The News elves currency to the
charge that the United States bought
from American citizens for J4O.00O.0rt)
property that enst these citizens only
J12.OJO.000. The statement is false. The
United States did not pay a cent of tiie
40,000.010 to any American citizen,' etc..
News Hides Behind World.
'from the statement issued in reply
by the editor of the News I quote the
following:
' 'The only man who paid any attention
to them (that Is, the criticisms referred
to. etc.) was Mr. Charles P. Taft. who
did deny that lie was in any way re
lated to the affair. We had no word
from the President or Mr. Taft. The
other men, such as Cromwell and Mor
gan, who were believed to have full In
formation In regard to the business, said
nothing.' And he attempts to Justify the
publication of the false statement ap
pearing In his paper by saying that they
were based largely on statements of the
New York World. Criticisms which were
made over and over again during the
campaign were utterly ignored until to
day. Proves World Falsified.
"The reply of the editor of the News
furnishes another proof of the justice
of the President's characterization, for
in the very journal, under whose sheets It
now takes refuge, namely, In the New
York World of October 3, I!, appears
an explicit and unqualified denial by me
of the story referred to, in which I used
the following language:
We may expect during a heated politi
cal eontt all kinds of stories which are
not worthy of notice, but this one I wish to
denounce "in the strongr-st terms as a lying
fabrication without a shadow of the truth
In it. Neither I nor any one allied with
me. either directly or Indirectly, at any
time or in any place in America or abroad,
ever bought. so!d. dealt In or even made
a penny of profit oot of any stocks, bonds
or other securities of either the old Panama
i "anal Company or the New Panama Canal
I'ompanv. or ever received for the same a
nlnule dollar of -the t-tn.Ono.OOO paid by th
United States. T make this the most sweep
ing statement that lamtuHjte can convey.
"As everybody connected with the affair
knows. I abstained from receivina the 40.
noo.ooO In my own hands at Wathlnpton. or
New York aa the general counsel for the
company, and myself arranged for the pay
ment of the entire S4fMHM.t.oMl direct from
the Treasury of the t'nlted States through
the bankers of tho Government into the
Ttank of Kranre at Paris to tr-e credit of
the liquidators of the two companies. There
it remained subject to the order of the
liquidators until distriDUted by them to Mie
hundreds of thousands of beneficiaries, and
not one dollar of It ever came to me or
any one In any way connected with me. Of
course I do not refer to our regular com
pensation as counsel.
Told Senate About Payment.
"I wish to call attention to the fact that
on the first day of the hearing before the
committee on interoceanic canals of the
Senate of the United States in February,
1?06, I voluntarily made an eJcpliidt and
detailed statement showing how the 40,
nno.ooo whb paid by the United States
through Messrs. J. P. Morgan & Co.. as
their agents, to the Bank of France at
Paris, for account of the New Panama
Canal Company, and also explaining the
subsequent payment of the full amount
to the liquidators of the Old Panama
Canal Company, who In -turn distributed
the same to tlieir. respective stork and
bondholders. numbering hundreds of
thousands of persons.
"I further submitted to the Senate Com
mittee, with the permission of the Pan
ama government, a detailed statement of
the disposition of the Republic of Panama
of the- J1O.O00.00O paid by the United States
to Panama In 19"4. accounting for the pay
ment of the whole amount and showing
the investment and disposition by the
Panama government of every dollar.
American Company Died.
"On the same public inquiry I further
stated, with reference to the proposd
Americanization of the Panama Canal
Company In the year ISPS and the pro
posed formation of a syndicate for the
purpose in that year, that the proposed
plan never matured Into anything. It
wu never consummated, either by sub
scription or by assent, and It is obsolete
and an impracticable thing proved to
so. It has no life or force of be ire did
not exist and never has existed, and is as
dead as a doornail. That was a fruitless
suggestion of the company which came to
naught and under which I acted as their
counsel only.
"The testimony taken .by the Senate
committee Is a public record and was
available to the editors of the News and
World and. had either of them been as
Interested In publishing the truth aa they
were to create a possible sensation, they
doubtless would have taken the pains to
publish the above facts, which I quote.
Xo American Syndicate.
"I again denounce the statement, where
ever published or by whomsoever made,
that there was a syndicate formed by
American citizens to purchase the Panama
Canal and to sell it to the United States
as absolutely and unqualifiedly false and
untrue. The Americanization plan was an
entirely different matter. It was a proj
ect proposed by the company to the
rlvera and harbors committee of the
House and te President McKinley on
February 17, 1W, and was formally
authorized by the board of directors.
October 10. 1S99, subject to the necessary
approval of the stockholders. The initial
steps were taken by me in October, No
vember and December, 1SS9. and a com
pany formed for the purpose under the
laws of New Jersey for carrying out the
instructions of my clients.
"While the certificate of incorporation
of the Panama Canal Company of Amer
ica was filed In New Jersey, no capital
stock except the nominal capital of
set forth in the certificate of incorpora
tion was ever issued and nothing further
was ever dono by that company, as the
records in the office of the Secretary of
State of New Jersey will show.
French Rejected American Scheme.
"The project adopted by the board of
directors failed of approval by the stock
holders, in December, 1S50; the board of
directors, in consequence, resigned In a
body, and the plan then and forever
ended. The period covered by the proj
ect was less than three months; not a
dollar was paid in under it nor a trans
action conducted by the New Jersey com
pany for the reason stated. The plan was
dead end abandoned over two years be
fore the company finally yielded to the
pressure of the American Government to
sell at t40.000.000.
French Got Whole $40,000,000.
"Now, with regard to the distribution
of the J40.000.000. It has been made to ap
pear in newspaper comments that there
was some mystery connected with the
disposition of this money.
"There is no mystery and never has
been. The fund in question paid into the
Bank of France by the United States
produced the net sum of 208.000,000
francs. 128,000.000 franca being placed to
the credit of the liquidator of the old
Panama Canal Company and 77.400.000
francs being placed to the credit of the
new Panama Canal Company In liquida
tion and by said bank paid over to said
liquidators respectively, pursuant to a
decision of arbitration at Paris. February
11, 1M2. confirmed by the civil tribunal
of the Seine.
"To the Senate committee I stated that
I did not know what distribution of the
fund had been made and that I was in
no way concerned or interested thpreln.
That statement by me was true. I had
no pecuniary Interest in the canal and it
was none of my business, personally or
professionally, who were the stockholders
or bondholders of the company.
Public Record In Paris.
"Since tiie recent publications I have
made Inquiries In Paria and am informed
that the distribution of these monies is
a matter of public record: that the
THAT "INSULT" TO CONGRESS.
The following is the passage In the
President's message which has
aroused the anger of Congress:
"Last year an amendment was in
corporated In the measurs providing
for the Secret Service, which pro
vided that there should be no detail
from the Secret Service and no
transfer therefrom. It is not too
much to sar that this amendment
has been of benefit only, and could
be of benefit only, to the criminal
classes.
"The chief argument in favor of the
provision was that the Congressmen
did not themselves wish to be Inves
tigated by Secret Service men. Very
little of such investigation has been
dona In the past: but It la true that
the work of the Secret Service agents
was partly responsible for the In
dictment and conviction of a Senator
and a Congressman for land frauds
In Oregon. I do not believe that It
Is In the public Interest to protect
criminals in any branch of the public
service, and exactly aa we have
again and again during' the past
seven years prosecuted and convicted
such criminals who were 1n the ex
ecutive branch of the Government,
so in my belief we should be given
ample means to prosecute them If
found in the legislative branch. But
if this is not considered desirable a
special exception could be made In
the law prohibiting the use of the
8ecret Service force from Investi
gating members of the Congress."
amount received by the liquidator of the
old Panama Canal Company has been
distributed by bitn as an officer of the
court to the holders of the obligations
of the old company; that these persons
appeared in person at the office of the
liquidators, where their share was paid
them, being the largest number of per
sons ever appearing in person on a sin
gle business affair, and that the average
amount paid was $106. The complete
and detailed record of these payments,
together.- -with the names and receipts of
every person to whom payment was
made and the amount of such payment.
Is in the hands of the liquidator at No.
50 Rue Etienne Marcol, Paris, which Is
in a prominent and frequented part of
the city near the Bourse, easily found by
any one desirous of doing bo.
Payment to New French Company.
"As to the fund paid to the New Pan
ama Canal Company that company at
tho time of the sale of its property to
the United States went into liquidation,
and I am likewise recently Informed that
the distribution of Its assets among its
shareholders was made through four
leading banks of Paris, the Credit Lyon
nais, Societe Generale. Comptoir Na
tion d'Escompte de Paris and Credit In
dustrial et Commerclcl, in three separate
payments (July 15. 19.M; February 3.
1908. and June 15, 190S), covering a period
of four years, and was completed in
June, 1908. This liquidation took place
at the regular offices of the company,
19 Rue Louis le Grand. Paris, readily
found by anybody who honestly sought
to find them. S'he facts concerning the
liquidation are a matter of public re
port to the shareholders of the company
(this company had no bond issues) and
were the subject of official publications
from time to time covering a period of
four years in the official papers under
direction of the courts. The amouat so
paid to the shareholders of the New
Panama Canal Company, as I am in
formed by the liquidators. Is approxi
mately 129.78 francs on each share of the
par value of 100 francs, that Is. they
merely received back only the capital
originally Invested, with interest less
than 3 per cent per annum. I am in
formed by the liquidators that the share
holders to whom distribution was made
numbered 67t!.
Xo American Held Stock.
"Neither I nor my law firm nor any one
connected with oie. ever owned, directly
or Indirectly, any share of stock in the
new Panama Canal Company or any of
the obligations or securities of the old
Panama Canal Company, nor ever
bought or sold any shares or securities
of either one of said companies, nor
were directly or indirectly interested In
them.
"I am also positive that not a man in
public life in America, In or out of Con
gress, eyer had the least pecuniary in
terest In the Panama Canal.
"I do not know and never have known
of any American citizen who has ever
dealt in shares of the new Panama Ca
nal Company or the shares or bonds of
the old company.
C. P. Taft and Robinson Not Involved
"A further instance of tho unwarrant
ed attitude of the Indianapolis News and
of other journals repeating the state
ments, is furnished with respect to Mr.
C. P. Taft and Mr. Douglas Robinson. In
the same issue of the World (October
3. 1908). I said:
" 'The mention of the names of Mr.
Taft and Mr. Douglas Robinson is an
other evidence that this is a fake story.
No member of the Taft family or Mr.
Douglas Robinson ever had the remotest
connection with the Panama Canal mat
ters, directly or indirectly, and I never
saw one of them on this subject before
the United States acquired the canal. 1
never saw Mr. Douglas Robinson in my
life. The names of Caesar and Napoleon
might as well have been used, for it
could not be more impossible. All this,
except the dragging in of new names,
was threshed out before the United States
Senate committee by the late Senator
Morgan.
NECAKNEY
16, 1908, the price will be advanced to"$125.00 per lot, and this price will stand but about 60 days. e f(
3d in making this $50.00 advance, two reasons for same being; First, a recent survey of the I . K. & Kauw
.$50.00. and perhaps $150.00, by buying before the 16th' of the present month
We feel
ay
Prpspnt nricps of all 50x100 lots is $75.00 each. On and after December
.... 1 . . ... . a a. 3 ii . : c: - j
jubilant on beins able to maKe Wis announcement, ana are i.uuy jusimuu iu mating una ?-ju.uu nuvamc, mi jvuo a. .--v- cnna. ,,-Bter Hreotlv
no been marlp. brinein-V this road directly upon the Peninsula and within a stone's throw of this property. Second, a water company is now forming to bring pure spring atr re"'-v
down Necaruev Boulevard onto tnis property, dt ine time transportation uy ran gem mere, mu can save
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f.BABRlIIT. II. C. WTtm.--.dC. V. Rg. Owners, Joins Nccarney City on thesoatb: is a.beautirul sand beach ievel and, aa far as fitness X!rrn.d0nri.ti"n.H,"!i ""onirlind for
111 aireULlUllE IS Utlicxi. ocauii&iii aiiu iicxtw "xj x . . . .. u. x. x. .x... - , . , , . . , j .... i . ..I. .
nthar TliA Vli'W from 1
vaV-ht'lna -and boating- cannot be surpassed, while fish of all kinds abound in its waters, and crabs and clams are too numerous to mention; ana auring iue uun ,u. ' ' i "V
n? .hisf feathered fowl are Its placid bosom; and the hills back of this resort and across the bay abound with wild game of allTcinds. and tne small streams emptying into
?L bav and ocean about this resort are falriy alive with the Justly-famous mountain trout. In fact, the many things that make it a pleasure to spend your vacation at a ceriain place are , all
'..b.a."" nri tnrn r.i- facts will make this nronerty very desirable, and especially the fact that this resort is and will always remain the closest beach resort to Portland,
will make this property become very valuable. Cail ior prices of Seabright lots,
7? TT"
T"-V TP i -l "I TT ?7
M
BAY
LAND C
O
Room 3, Chamber of
Commerce and
O 1000 Williams Ave.
ed and it is expected that they will be
finished and ready for occupancy by the
first of March. The Oddfellows will have
one of the handsomest lodae buildings In
this section of the state.
TO IMPROVE WIRE SERVICE
"Western Union Promises Direct Aberdeen-Portia
ntl Line.
ABERDEEN. Wash.. Dec. 10. (Special.)
General Superintendent of Construction
W. S. Eckclshaw, of tiie Western Union
Telegraph Company, wlio is in Aberdeen
today, announced that direct communica
tion with Portland is to be arranged im
mediately with a special new wire, and
that duplex service will be provided.
It Is believed thnt the Western Union
Company is looking for bier transactions
on Grays Harbor. The company promises
a night office here after January 1 and
an increased day service-- force.
MAKE SENSATIONAL ARREST
the "blind," and when he discovered the
officers, made a break for liberty.
The officers drew their guns, but as the
depot platform was crowded with people,
they could not shoot. There was a gen
eral rushlnjr for cover and the alleged
burglar was finally cornered in the round
house by the Miarshal.
Musical Recital.
A musical recital will be held in the
Westminister Presbyterian Church. East
Tenth and Wcidlcr streets, tonight. Cavl
Prntorf will bo the organist and John
Claire Montcith soloist. Tho handsoma
new organ just installed will be uwd.
All will be welcome. There will be no
Hia rrres.
Three Pendleton Officers Required
to Capture Robber Suspect.
PENDLETON, Or., Dec. 10. (Special.)
Sheriff TaVlor. Deputy Sheriff Wilson and
Chief of Police Gurdane made a sensa
tional arrest of a 'burglar suspect at the
O. R. & N. depot Just aa the west-bound
passenger pulled In ait noon. The man,
V. K. Hayes, alias Jack De-Forest, Is
wanted at Baker City and the officers
tverp. waiting for him. Hayes rode in on
Brick Building for Milton.
MUTTON, Or.. Dec. 10. (Special.) The
new I. O. O. F. Temple and First Na
tlonal Bank buildings are now well start-
PIANO B
mm--
EED-FRENCH
ARGAINS
Q A few slashing
big discounts
to show piano
buyers where
real piano bar
gains are to be
found.
9 The pianos are
all standard in
struments and yet we quote
them far less than cheap pianos
are usually sold for.
SINGER Two years used, not damaged in the least $160.00
KINGSBURY Large size $175.00
WILLARD- Hardly a mar on it $190.00
CHICKERING Owner in California and has ordered us t0
sell at a big sacrifice for quick money , Sj52oO.OO
SCHUBERT Had just enough use to make the tone mel
low and sweet; $450.00 style $2JM).00
SOHMER Ebony case. We do not carry this piano regu
larly; agents for Sohmer get $450.00 for this style $315.00
EVERETT An exquisitely finished piano; tone A-l; re
tails at $500.00 $330.00
COMBINATION PLAYER-PIANO Latest style and thor
oughly guaranteed; has been used less than a year; retail
price ?650.00 $375.00
OUTSIDE PLAYER A Cecilian In perfect working or
der; $30.00 worth of music goes with it $130.00
Monthly payments, from $6.00 to $10.00. You may see these in
struments in the evening. Store open nights.
Reed-French Piano Mfg. Co.
SIXTH AND BURNSIDE STREETS
Store Open Evenings.
We haven't Cut our
prices we are always
low enough on every
thing. Trade with
me. unless you have
money to burn.
Economy, good goods
and STAPLES the
Jeweler, at once.
v i7U " -::-y. ?;f
Yrh T'7
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