Class _Lt_5_6 Book: -A S -^ FEB i.4, 1903 D. of D, 57th Conc^ress, ) HOUSE OF REPKESENTATIVES. J Report 1st Sesslo7u- S \ No. 27-19. PURCHASE OF DANISH ISLANDS. July 1, 1902. — Eeferred to the Honpe Calendar and ordered to be printed. i\Ir. Dalzell. from the Select Committee on Purchase of the Danish West Indies, submitted the following- R E P R T : On March 27, 1902, Mr. Richardson, of Tennessee, brought to the attention of the House of Representatives a certain document which purported to be a secret report to the Danish Government bv one Capt. W. Christmas Dirckinck Holmfeld. of his services in endeavor- ing to bring- about the purchase bv the United States of the Danish West Indian Ishmds. In. this document allegations were made of the bribery and corruption of members of Congress. After a consideration of the matter by the House, as one of the high- est privilege, the Speaker, pursuant to a vote of the House, appointed a committee to examine into the truth of all the allegations and charges made by the said Walter Christmas in his secret and confidential report to the Danish Government as to the methods pursued and to be pursued ))y him and any of his assistants in the United States, and the contracts made or proposed, to be made by him or other persons acting in any way for him. or as assistants to him. for the purpose of, or which in any manner had for their object, the bribery of, or the attempted Inibery of, memliers of the United States Congress, or of the payment of any valuable consideration of an}- kind or character to them, or to any of them, to vote for or to assist in procuring the pro- posal, adoption, or ratification of said treaty of sale of the said islands as aforesaid. This committee had power to subpoena and examine witnesses under oath, and to send for records, papers, and all other evidence that may be necessary for a full and complete investigation of the subjects men- tioned. The committee so appointed has held a number of sessions and examined witnesses, and submits herewith the testimony taken, togetlier with the alleged Christmas report. At the hearings there was incidentally brought out a great deal of evidence connected with the subject, in its various phases, of the purchase of the Danish West Indian Islands not necessarily connected with the subject given in charge to the connnittee. So much of the evidence as does not relate directly to the duties of the committee under the terms of their appointment thev have eliminated as lumeces- sary for consideration in this report. The autlienticity of the Christmas report is vouched for by one Niels Grtin. a native Dane and a naturalized citizen of the United States, who translated the report into English and who asserts that it was acknowledged bv Christmas over his own signature in a Danish II PURCHASE OF DANISH ISLANDS. ■ ^S 3 newspaper. There is no question that Christmas made a report — intended to be secret — to the Danish ministry; but the report produced b}^ Gron, Christmas claims, in a letter addressed to the American minister at Copenhagen under date of April 8, 1902, to have been fal- sified. That letter is as follows: 9 Skjoldsgade O. , Copenhagen, April 8, 1902. His excellency the Ambassador for the United States in Copenhagen. Your Excellency: Nearly two months ago some Danish gentlemen engaged a Danish-born American citizen, named Niels tfron, to prevent the sale of the West Indian Islands. By foul means one of these gentlemen got hold of a confidential report of my doings in America and provided Gron with a copy of the same. I have reason to believe that Gron has falsified my report, and I am already able to state — from newspaper cablegrams — falsifications on following points: (1) I have never impressed the former prime minister, Hovring, with the idea that bribery was the way of getting the islands sold. I never wrote anything like this in my report. The fact is that Gron two years before my taking the matter up invented the whole 10 per cent commission theory, and declared that without spending this money fio sale was possible. h 2. Nowhere in my report have I given the name of any Congressman in connection with my personal promise of money. 3. I have never written that bankers I. and W. Seligman had guaranteed "certain contracts." I have, on the contrary, stated that these gentlemen declined^to do so. 4. I have never in any newspaper declared ^Nlr. Gron's copy of my report to be correct, for the simple reason that I have never seen any copy. j^ I do not understand how Congress can take up a matter like this without investi- gating about the informer, Niels Gron, and his so-called translation of a stolen docu- ment belonging to the Danish Government. After what I can judge, Mr. Gron has utterly falsified my re])ort. On the 19th of February I have, through Ritzaus Bureau, sent to all Danish news- papers a declaration by which I, under my oath, state that no members of Congress in Washington were interested, directly or indirectly, with my knowledge, in the sale of the islands. This declaration I deposited the next day in the Danish foreign office, demanding to have it forwarded to our ambassador in Washington. I sincereh' regret that the minister of foreign affairs declined to do so, and I do not understand his motives; the whole scandal might have been avoided. I hereby entreat your excellency to cable the contents of this letter to Secretary of State, Mr. Hay, and I offer to pay the cable expenses myself. I have the honor to remain, your excellency's most obedient, Walter Christmas. Waiving- any question as to the authenticity of the Christmas report, the committee, as the result of their investigation, find and report: That there is not the slightest semblance of evidence that any mem- ber of Congress, either directly or indirectly, was offered or received any bribe, or was paid any valuable consideration of any kind or char- acter to vote for or assist in procuring the proposal, adoption, or rati- fication of a treaty of sale of the Danish West Indian Islands to the United States. There is not the remotest ground from which to draw an inference or on which to base a conclusion that there was any cor- ruption or wrongdoing on the part of the public officials of the United States in connection with the negotiations for the purchase and sale of the Danish West Indian Islands. It is plain be^^ond peradventure that the briberv alleged in the report could have existed nowhere save in the imagination of Christ- mas, since the whole burden of his story is that he had no money. It is in evidence that he had to borrow in order to pay his passage home fi'om this country. According to the report, Cii Jstmas claims that the arrangement with PURCHASE OF DANISH ISLANDS. Ill his Government was that he was to get the American (jovernment to take the first step toward purchasino- the Danish ^^'est Indian Islands; that for his services in tlie event of success he was to receive lU per cent of the purchase price (estiniated at ^5<)0,(>0(»). Whether tliis be true or nor the fact appears to be tliat lie never received any mone}^ save a small and insigniticant sum of $1,()0(> prior to his leaving home, and consequently he never was in a position to bribe anyone. The report contains the statement that in a conversation with the Danish prime minister relative to Christmas's proposed mission the latter pointed out the necessity" for a large sum to bril)e American legislators: His excellency expressed himself with greater force than I wish to report — his abhorrence for the political situation in America, which made it necessary to offer money in order to bring a political action, like that of transferring the islands, to a successful termination, but that he had long ago discovered the necessity for making such a money sacriiice, and he was ready to grant it. Aside from the inherent improbabilit}^ of this statement, we have the denial of Christmas as to its having been made in the letter just quoted wherein he says: I have never impressed the former Prime Minister Hovring with the idea that bribery was the way of getting the islands sold. I never wrote anything like this in my report. The committee does not seek to justify its conclusions upon mere general statements, but will consider the charges of the report and the answers thereto in detail. The report contains the allegation that. Christmas had enlisted the services of Al)ner ^McKinle}^ brother of the late President, and of his partner, ]Mr. W. C. Brown; ""who,'' it said, "know^ most accu- rately all the winding paths through Congress, and are w^ell informed as to what members of Congress must be paid, as well as to the method which must be used to accomplish it." It further alleged that Christmas had contracts with them and others wdiich the banking- house of Seligman & Co., in New York, had conditionally agreed to guarantee. It furthermore said that these gentlemen had ""rendered Christmas excellent assistance."" * Abner Ak'Kinley appeared before the committee and testified under oath, as follows: Abner McKinley sworn and examined. By the Chairman: Q. Your place of residence is where?— A. New York City. Q. And your lousiness? — A. Lawyer. Q. Are you a brother of the late President McKinley? — A. I am. Q. Do you know Captain Christmas?— A. I met him once in a casual way. I live at the Manhattan Hotel, and I met him in a most casual wav in the lobby of the hotel. Q. Did you ever have a contract with him of any kind? — A. Never, of any kind or character. Q. Had you any connection with him in seeking to bring about the sale of the Danish West Indian Islands to the United States? — A. None, either directly or otherwise. Q. Did you ever bring that matter at his instance to the attention of the Presi- dent? — A. Never. I never talked to the President on the subject. Q. And the only relation j'ou ever had with this Captain Christmas is that which you have already described? — A. I may have met him a couple of times, but I met him in the public lobby of the Manhattan Hotel, where he was stopping. I do not recall who presented him to me and only the. rdinary courtesies of the day were extended. I never talked with him on any subject in relation to this inquiry. IV PURCHASE OF DANISH ISLANDS. Mr. W. C. Brown appeared before the committee and testilied as follows: WiLBCR C. Broavx, sworn and examined: By the Chairman: Q. What is your place of residence? — A. New York City. Q. What is your linsiness? — A. I am in a ninnber of lousinesses. I am president of the Lincoln Coal Company and connected with the White 3Ionntain Pajier Company and the International Fire Insurance Comyiany. Q. Do you know Cajitain Christmas? — A. I met him, I think, once at the >\Ian- hattan Hotel. Q. Under what circumstances? — A. I think he introduced himself to me. Q. Were you living at the ^Manhattan Hotel? — A. Yes, sir; I have lived there since the burning of tlie Windsor Hotel. Q. Was he stopping there at the time? — A. Yes, sir; he was stopping there. Q. Was that the extent of your acquaintance with Captain Christmas? — A. I never had any conversation with him except on one occasion, when he came and intro- duced himself as Captain Christmas. He stated I had doubtless heard of him through Mr. Carl-Fischer Hansen. Q. ]Mr. Hansen was an acquaintance of yours? — A. Yes, sir; I had known him a number of years. Q. How often did you have a conversation with Captain Christmas? — A. Never but the one time, when he came and introduced himself to me. Q. What was said in that conversation? — A. Nothing whatever. He introduced himself as Captain Christmas and made no reference whatever to his business. Q. Did you have any conversation with him then or at any other time about the purchase of the Danish West Indian Islands? — A. I ditl not. Q. Did you have any business arrangements with liim? — A. None whatever. Q. You had no relations with him except those you have just now indicated? — A. None of any character. TESTIMOXY OF MR. ISAAC X. SELICiMAN. Isaac N. SelutMax sworn and examined. By the Chairman: Q. Your place of residence is New York? — A. Yes, sir; New York. Q. You are a memlier of what lirm? — A. I am a memlier of the firm of J. &: W. Seligman & Co. Q. Their business is what? — A. Bankers. Q. How long have you been a member of that firm? — A. I have been a member of the firm since 1878, I think. Q. Do you know Captain Christmas? — A. Yes: I have met him a number of times in our ofhce. » Q. Will you state what particular relations you had with Captain Christmas? — A. Yes, sir; I 'will 1)6 glad to do so. If I recollect correctly it was some time in October or November, 1899, that he came to our office, introduced I forget by whom, and he stated to us that he was the representative of the Danish Government unofficially, as I recollect, in the matter of the sale of the West Indian islands to be made to the United States, and that he was substantially directed by his Government, also unofficially, to say to- it that the sale could take ]5lace on a fair basis (I think he mentioned four or five million dollars; I forget the basis), and that he was desirous of obtaining the instrumentality of reputalile bankers to undertake the transmission of the money on commission, etc., and asked us whether we would do it. We told him yes, that we woukl be very glad to do it. He then told ns that he was to receive, as I understood it, a commission of 10 per cent as commission in connection with the matter, and that he would give a banker's commission of 25 per cent com- mission for all work that we could do, and if I recollect correctly we should pay all commissions on the other side, exchange, transmission of money, etc. He made a fairly good impression. He then told us that Privatbanken was the bank in Den- mark in touch with the Government and that the moneys would be paid over through them to us, as I understood it. Without hearing anything for some time, in order to more clearly establish ~Sh\ Christmas and his entire arrangement, we then wrote to Privatbanken, Denmark, in reference to this entire business, and the letter which we received from them was not entirely satisfactory, was no confirmation whatever from the Government that INIr. Christmas was the agent or that moneys were to be paid so thereafter; we sub- PURCHASE OF DANISH ISLANDS. V stantially disuiit^sed tlie entire business from our minds. Tliat is substantially the entire connection we had with Mr. Christmas. * * » * * * * ;Mr. Cofsixs. He says in his report, on page 2-5, "Here I have been obliged to place my own person anil my i)ersonal property as security, and, besides, Seligmans have (who have absolute conlidence in me) placed their highly respected name as guarantv for my administration of the 10 per cent." The WiT.NEss' Tliat is unqualiiiedlv and wlioUv untrue, made out of the whole cloth. The report contained tlii.s allegation : I had * * * made the acquaintance of different members of Congress, for example, Senators Lodge, Depew, Clark, Bacon (the last two were Democrats); mem- bers of the House, Alexander, tJardner, and others. They all took a great interest in the acquirement of the islands and promised me their very best assistance. 1 got them to establish the price of 84,000,000, as the prime minister had desired. Each and every one of the parties thns named appeared ])efore the committee and g-ave the lie to the statement of the report, with the exception of Senator Clark, of Montana, who, however, stated to the chairman that he had never met Christmas, and had not, there- fore, as a matter of course, had any conversation with him on any- subject. Senator Lodge met Christmas two or three times, but it is unneces- sary to cite his testimony, since the report speaks of him as ''the most respected member of the Senate, and w^ho, of all the political persons I have met in America, is the only one that can not be bribed." The testimony of the other gentlemen, members of the Senate and House, mentioned in the report follows: STATEMEXT OF HON. CHAUNCEY M. DEPEW. The Chairmax. Senator, you were a member of the United States Senate during the last Congress? A. Yes, sir. Q. Do you know Captain Christmas? — A. I have no recollection of ever havhig met him.' I will state my belief is that I never did, but so many thousands and thousands of people come to see me in New York and here, I would not want to say I had not met him. Q. You do not ever recollect having any conversation with him al)out the purchase of the Danish West Indian Islands? — A. No, sir; I never had a conversation with anybody on that subject. 6. STATEMEXT OF HONORABLE A. O. BACOX. By the Chairmax: Q. You are a United States Senator from the State of Georgia? — A. Yes. Q. And you were United States Senator during the last Congress? — A. Yes, sir. I have been Senator since tke beginning of the Fifty-fourth Congress. Q. Do you know Captain Christmas? — A. I do not know how broad that question might be. I have seen him, but I do not know that I would know him by sight if I were to see him now; but 1 did see him, I recollect, twice in Washington. Q. He says that you, together with certain other Senators whom he named, took a great interest in the matter of the acquisition of the Danish \Vest Dulian Islands, and promised the very best assistance to him. Is there anything in that? — A. AVill you kindly read what he says. I did not know he mentioned my name except at one place wdiere he said he had formed my acquaintance. The Chair.max. On page 21 he says: "I had, as above mentioned, at last made the acquaintance of different members of Congress — for example. Senators Lodge, Depew, Clark, Bacon (the last two were Democrats); members of the House, Alex- ander, Gardner, and others. They all took a great interest in the acquireinent of the islands and promised me their very best assistance. I got them to establish the VI PURCHASE OF DANISH ISLANDS. price of $-4,000,000, as the prime minister had desired." "What have you to say in regard to that? — A. That is absolutely untrue so far as I am concerned. So far from that 1)eing the truth, I did not desire the Government to acquire the islands, and do not desire it now, and am very sorry for ^vhat appears to be the necessity for that fact. With the permission of the committee, I will tell all I know with reference to any personal communication between him and myself. Q. Certainly. — A. As I said in the beginning, 1 only remember to have seen him twice, each time in Washington. The first time was at a private house in this city at an afternoon reception where there were a number of callers, and he was pre- sented to me apparently in an entirely incidental way, just from the fact we hap- pened to l.ie standing near each other, and the person presenting him — I really do not remendjer who it was; it was some lady. However, I remember that he stated he was a captain in the Danish navy, and in the same connection, probably in the same sen- tence, said that he was here in the interest of the sale of the Danish West Indian Islands to the United States. I did not desire the acquisition of the islands, and consequejitly I made no re])ly to that statement at all. I did not encourage any con- versation in that line, and the only thing that jjassed between us was in the nature of the most commonplace civilities between strangers. Not a word was said either by him or Ijy me as to the Danish Islands, and in possibly less than a minute we were separated in a crowd, and I saw no more of him. The other time I saw him was equally as accidental, at a reception of 3Ir. ]McKinley, in the East Room at the AVhite House, where the crowd was, as is usual, thronging, and in a purely accidental way I was thrown near him, or he near me, I do not know which. His wife was with him at the time, I rememl^er, and I spoke to him and we had again some of the most commonplace civiUties without a word said in regard to Denmark or the West Indian Islands. If he had said anything about them I should have turned the subject, liecause I would not have desired to be rude to him, and if I had said anything at all expressing my own wish it would have been that I hoped he would fail in his mission. I use those words "fail in his mission" because I supposed at that time he was an officer in the Danish navy and was the accredited agent of the (-rovernment. STATEMENT OF MR. ALEXAXDEK, MEMBER OF CONGRESS FROM NEW YORK. Mr. Alexander. I never spoke to Mr. Christmas; I have never met Mr. Christ- mas; I never heard of }klr. Christmas until this report, published in the Record, was called to my attention in the newspapers of Buffalo, where I was last Friday. I never spoke to anyone in or out of Congress in regard to the Danish treaty, nor has anyone spoken to me in or out of Congress in regard to the Danish treaty, nor have I ever heard it discussed at any time or in any place by anyone until after the pub- lication of this alleged report. That is all I have to say. STATEMENT OF HON. JOHN J. GARDNER. By the Chairman : Q. 3Ir. Gardner, you are a member of Congress from New Jersey? — A. I am. Q. Do you know Captain Christmas? — A. I think I met Captain Christmas; I am not certain aliout it. Q. You read or heard read this alleged re])ort of his to the Danish Government? — A. I have looked over it. Q. You noticed what was said therein about yourself? — A. As I remember it now, I saw he says that he made the acquaintance of 3Ir. Gardner. Captain Christmas has not yet made my acquaintance in any sense there indicated. When I say I think I met him once I mean this: Somebody, whom I can not exactly recall now, came to the Labor Committee room one morning and asked to' present a lady and her hus- band. The lady was introduced with a long name, and my recollection is that the gentleman was simply introduced as her husband. He had very gallant manners, however, and seemed like a very fine gentleman. He laid his card ujion the table on going out, and it had a numlier of names on it. ami I recall somewhere in the middle, I think, occurred the name of Christmas. Afterwards, I think, he called one morning and asked the courtesy of a card to the gallery of the House. That is the extent of my acquaintance with Captain Christmas or his with me. Q. You notice that in his statement he says that at a certain time a sjieech was prepared to be delivered by you in connection with the Danish West Indian busi- ness. — A. I was going to come to that. I never had anybody prepare a speech on the subject for me to deliver. I never had any knowledge at any time that anybody was preparing a speech on the subject for me to deliver, and I never had any knowl- edge that I was expected to deliver one. PURCHASE OF DANISH ISLANDS. VII Q. And you were not preparing a speech yourself on that subject? — A. I was not preparing a speech on that su])ject. Q. You had no connection with ;\Ir. Christmas? — A. Xone in the woi'ld. Q. Mr. Gardner, vou introduced a 1)ill relative to the purchase of the West Indian Islands?— A. I did. ' Q. Was that at the instance of Mr. Christmas?— A. That was not at the instance of Mr. Christmas, nor could anyl)ody representing him have known anything al)out it in any way. From the foregoino- citations of the evideiu-e taken before the com- mittee it is manifest that the charges made in the Christmas report with respect to Senators and ]Members of Congress are wholly- untrue. Christmas, according to the report and as shown in the evidence, had contracts with several parties to assist him in his work. One of these was a young hiwyer in XewYork named Carl Fischer- Hansen, who was to act as counsel for Christmas and to receive §:^0,000, payable out of the latter's commissions when earned. Mr. Fischer- Hansen testifies that he never met or spoke to any member of Con- gress or Government official in connection with his retainei'. (See p. 77, testimony.) Another party with whom Christmas, according to the report and the evidence, had a contract for legal services was one Richard P. Evans, of Washington, who was to have ^50.000 for his services, pa3'able out of Christmas's commissions when earned. (See p. 87, testimony.) Mr. Evans testitied that he "did not come in contact personally with any members of Congress relative to this matter." He went to the committee room of the Committee on Foreign Atiairs to inqiiire about the Gardner ])ill. This was the extent of his services. Still another party with whom the report and evidence shows Christ- mas had a contract for services was a Mr. C. W. Knox, of Glenelg, Md., who was to receive $15,000 out of Christmas's commissions (see p. 101). Knox testifies that he '"never said anything on the subject to any meml)er of the House of Representatives.""' "That he talked to a num- ber of people, but does not remember any particular conversations; all of them were simply to ascertain the vicAvs of the persons with whom the}' were conducted, and nothing else.*' This is the party who the report says introduced Christmas to W. J. Bryan. Knox testifies that he never saw W. J. Bryan. There is no evidence that any of Christmas's assistants bribed or made anj' attempt to bribe any member of the United States Congress. or to use corrupt methods to bring al)out the purchase by the United States of the Danish West Indian Islands: 1)ut there is al)undant evidence to the contrary. Upon the whole, that there may be no doubt, misapprehen.sion. or misunderstanding about the matter, your committee, repeating in sub- stance what they have already said une([uivocally and emphatically. report that in connection with the negotiations for the purchase of ihe Danish We.st Indian Islands no member of the Congress of the United States was bril)ed or attempted to be bribed, nor did any member of Congress of the United States receive payment or promise of any valu- able consideration of any kind or character to vote for or to assist in procuring the proposal, adoption, or ratification of the treaty of sale of the Danish West Indian Islands to the United States, Attached hereto as an appendix is a full account of all hearings before the committee. '1 r APPENDIX. Select Committee ox Purchase of Danish Islands, House of Kepkesentative;?, March <29, 1002. The committee met ut 11 o'clock in the room of the Committee on F'oreign Affairs. Present: Mr. Dalzell, chuirman: Mr. Hitt, Mr. Cousins, Mr. McCall, Mr. Richardson, Mr. Dinsmore, Mr. Cowherd. The chairman hiid l)efore the committee the following- resolutions for the appointment of the committee: Remlved, That a select comaiittee of seven members of the House of Representa- tives be appointed by the Speaker whose duty it shall be to examine into the truth of all the allegations and charges made by the said Walter Christmas, agent and rep- resentative as aforesaid, in his said secret and confidential report to the Danish Gov- ernment as to the methods pursued and to be pursued by him and any of his assistants in the United States, and the contracts made or proposed to be made by him or other persons acting in any way for him, or as assistants to him, for the purpose of, or which in any manner had for their object, the bribery of, or the attempted bribery of, members of the United States Congress, or of the payment of any valuable consideration of an}^ kind or character to them, or to any of them, to vote for or to assist in procuring the proposal, adoption, or ratification of said treaty of sale of the said islands as aforesaid. Said committee shall have power to subpcena and examine ^vitnesses, under oath, and to send for records, papers, and all other evidence that may be necessary for a full and com])lete investigation of the subjects herein mentioned, and it shall be authorized to sit during the sessions of the House and to have such printing and binding done as it shall deem necessary. The committee shall make a full report to the House of the result of its investigation at as early a date as is practical^le. The expenses of the investigation shall be paid out of the contingent fund of the House of Representatives. The Speaker announced the appointment of Mr. Dalzell, Mr. Hitt, Mr. Cousins, Mr. McCall, Mr. Richardson, of Tennessee, Mr. Dinsmore, and Mr. Cowherd as oriembers of the said committee. Attest: A. JNIcDowell, Clerl; By Wm. J. Bkowxing, Chief Clerk. AFFIDAVIT OF NIELS GRON. District of Columbia, Washington City: Personal h' appeared before me, the undersigned, Niels Gron, and made oath in due form of law that he is a native of Denmark, but now a citizen of the United States; that he was in Copenhagen, Denmark, from the 7th day of December, 1901, to the loth da_v of February, 1902. That he arrived in the United States, returning from Dennuirk, on the 2«)th day of February, 1902, and came at once to Washington City; that he brought with him a copy of the special and confidential report made l)y Walter Christmas to the Danish Government of date October 1, 1900, less one page thereof, which is missing from the report; that a large part of said report has been published in many of the newspapers of Denmark, and that he himself translated said report into English and delivered a copy thereof to Hon. ,)ames D. Richard- son, M. C, within the last week; that he knows the said Walter 1 '•1 PUKCHASE OF DANISH ISLANDS. Christmas personally, and that said Christmas has admitted, in a statement over his own signature, which statement has been published in the newspapers of Copenhagen, that the cop}' of the report as pub- lished in the Danish papers is a correct cop}-. He further makes oath that he has faithfully translated extracts from Copenhagen newspapers commenting on said report as they appeared in said papers from about February 1, 1902, to a late date, and that he has also delivered said extracts, with the newspapers from which 'they were taken, to said Richardson. Niels Gron. Sworn to and subscribed before me this March 27, 1902. [l. s.] Aaron Russell, Notary PiMic. STATEMENT OF NIELS GRON. When early in February last the contents of Mr. Walter Christmas's secret report to the Danish Government, relative to the transfer of the Danish West India Islands to the United States, liecame public, a party comprising a large portion of Denmark's best and most influential men and highest interests, realizing that since Christmas had, in the fur- therance of the pending treaty, served liy direct authority hrst the Secretary of State of the United States and afterwards the Danish prime minister, Mr. Horring, it would be impossible to disassociate his efforts from the treaty or the methods set forth in his report from the official negotiation. And realizing, further, that if the present treaty was consummated and permitted to take effect Denmark would be obliged to stand before the world as having made use of and the United States as having accepted such negotiations as said Christmas sets forth and describes in the above-mentioned report; and since it was thought that that would place the people of the two nations in an unfavorable and regrettable light, I was requested by the party referred to to journey with all speed from Copenhagen to Washington and lay before the representa- tives of the people of the United States the facts touching certain parts of the negotiations, in order that any further steps taken by the United States toward causing the taking effect of the treaty in question might be done with a full knowledge of the situation. KiELS Gron. Washington, D. C, March '27, 1902. REPORT TO THE DANISH GOVERNMENT FROM CAPT. W. CHRIST- MAS, DIRCKINCK HOLMFELDT, OCTOBER 1, 1900. To the Danish Government: As early as Ma}^ 4, this year, I permitted mj'self to hand over to his excellenc}^ the prime minister a report of mj" work in the affair of the Danish West Indian Islands, while at the same time I re^quested that there might later be given me the opportunity of more fulh' explaining the case in person. Since in the meantime no such oppor- tunity has been afforded me by his excellency, there remains no other PURCHASE OF DANISH ISLANDS. 3 way opon to me than by a renewed request to attempt to secure the high Government's attention to this matter. 1 believe it necessary to express m3-self as explicitly as possible with regard to all the details, as I am anxious to give an accurate and complete picture of what has happened to me in this affair, an affair about which I dare believe it will be understood has been one of honor and for the highest good, in which, therefore, 1 believe I owe those men who have assisted me. no less than nn'self, as clear a presentation as possible of all the relations and conditions pertaining to it, without which it will be impossible for my efforts to receive fair judgment. INTRODUCTION. In order to explain how I, on the whole, came to interest myself in the sale of the West Indian Islands, let me briefly show how these islands, ever since my childhood, have plaj-ed a role in my life, and how circumstances have constantly kept my interest in them awake. My family's economical situation has been closely connected with our colonies in the West Indies. My grandfather, Admiral Christmas, was in his time a very wealthy man. He invested his whole fortune in plantations on St. Croix, which in the beginning gave him a large income. The liberation of the slaves gave him and the other planta- tion owners a severe injury, which he never got over. At his death he was ruined, and the State took over his plantations. No wonder, then, that my interest in the West Indian colonies was earh' aroused. As second lieutenant I sailed down there on board a koflardimand and remained on the islands about six months. I have since, both in men-of-war and privately, visited the islands seven times in the last ten years. I have seen how the plantation own- ers have become gradually impoverished, how one business firm after another has failed, and how shipping has been reduced. Often I have prepared plans for the betterment of the conditions on the islands. I have tried to establish a steamship connection between St. Thomas and St. Croix. I have worked out and sent to the Government a proposition for a more economical rule (or government) of the islands, and I have tried to start a compan}^ for the purpose of making use of the fertile soil on St. Johns by the help of Chinese coolies, but without success, since never have I met in this country an}- interest for the West Indian colonies. All have skeptically shrugged their shoulders whenever future possi])ilities for the distant islands were suggested. Without exception all have (at any rate heretofore) expressed the opinion that the islands' only future lay in annexation to the United States. By studying the old West Indian literature, especially that touching the Danish Islands, I saw that the English, in the beginning of the century, won the colonies and appear to have had the intention of uniting them to the English West Indies. It was the intention of the English to establish a naval station at St. Thomas, but changed this plan when they discovered the large harbor on the east side of the St. elohns. Two English ships were sent into Coral Bay, the whole harbor was carefully measured, and a chart made of it. Iii the English naval chart archives mav still be found the large chart showing what a splendid, deep, excellently protected, and clean harbor St. Johns has. especially adapted to a naval or war station, as batteries or forts can be placed on far-extending peninsulas and on Bock Island, which 4 PURCHASE OF DANISH ISLANDS. absolutely protects the entrance, I got the idea that that harbor could be made a new and important source of income to the colonies. I decided to attempt to get established a large and modern harbor, where nature had pointed out such a good place and such excellent condi- tions. I did not doubt but that good use could be made of such a harbor, since the "West Indies, as far as harbors are concerned, is the poorest archipelago in the whole world. THE HARBOR PROJECT AND ITS RESULT. In the fall of 1898 I went to the West Indies and examined the con- ditions on St. Johns. This island has but very few plantations, but the numerous ruins of large stone houses and mills which lie scattered between grassj' paths and shrubs remind one of former culture and the soil's fertility. There is to be found splendid grass plains for cattle and extensive woods containing valuable species of wood. I got a large amount of the island's land upon my hands, and returned to Copenhagen to secure money for my project of bu\"ing the land and using it and for putting the harbor in order for receiving ships. I worked upon that for several months; secured also a loan of money from different persons interested in my undertaking, but failed to secure enough capital to carry my plan through. I was then advised to seek capital in Germany, and that in a short time I succeeded in doing in Berlin. A syndicate was formed, and I went again to the West Indies, this time in order to study the conditions on the English and French islands and for the purpose of measuring and making a chart of the harbor on St. Johns. This I accomplished in the spring of 1899 and returned to Berlin with chart and plans. The German svndicate that in the meantime had established itself was "Die Kolonial und Handelsgesellschaft St. Jun," and had laid large plans for bringing the island in under the German sphere of interest by first buying up all the land and afterwards to pat the harbor in order for German commercial ships and men-of-war. The plan had been presented to authorities of the German navy, who seemed to look upon it with favor, for just as desirable as it was for German}'^ to secure a foothold in the West Indies, so impossible did it seem if they should proceed openly by offering Denmark to bu}" the islands, for it was known that America would never allow another European power to establish itself in the West Indies. On the other hand it seemed possible that Germany, through the indirect way, as proposed by the Company St. Jun, could make use of the newh' made harbor, and grad- ually, as time would pass, secure control over the harbor and over the whole island. I could have no scruples in working for that plan, since nothing could happen without the knowledge and consent of the Danish Gov- ernment. To a degree it would be necessary that the directions of such a harbor company should be Danish, and leave its seat in Denmark. The plan was, as already stated, adherence at the highest places, and it was attempted to get the Hamburg- American Line, which had about 60 steamers running^ in the West Indies, to take up the affair. That company's director, Mr. Ballin, had several conferences with the St. Jun Company director, Admiral Zirzou. Herr Ballin requested certain PUKCHASE OF DANISH ISLANDS. 5 gnai'anties of the Governmont, which it hesitated to give, and the neootiations proceeded very skiwly. On mv return from the West Indies the director^ of the •'Company St. Jun" asked me to go to Denmark to seek the Danish minister of finance, with a view of securing such concessions as to make the estab- lishment of the new har1)or possible. In June, 1899, I sought Herr Schlichtkrull. department chief in the ministry of finance, and later the minister of finance, Hovring. and presented to them 1)oth the plan, and at the same time explained to them how the situation had evolved itself. The minister was not disposed to give concessions or permission to establish a new harl)or, and he expressed as his opinion that the only thing which could be done for the West Indian Islands was to transfer them to America. Such a transfer would, in the opinion of the minister, be the final outcome. I informed the German syndicate of the result of ray interview with the minister of finance, and secured an agreement whereby I would be able to do as I might think best in the project of establishing the harbor in return for paying the syndicate a sum of monev. During the summer of 1899 I found out. quite bv chance, that a circle of men in this country, in connection with some Americans, had, in 1897, attempted to etfect a transfer of the West Indian colonies to America. That committee consisted of General Bahnson, Captain Bluhme, Redaktor Corstensen, Count Frijs, Folkethingsmand Christo- pher Hage, Fabrikejer Hagemann, Atatsraad Gustav Hansen, Hojes- teretsragf Octavius Hansen, and Radaktor Horup. The committee, through a native Dane, ]\Ir. Neils Gron, stood in touch with a number of American financiers, Mr. H. H. Rogers, Mr. Flint, etc. As already noted, the patriotic motive of this committee was to efi'ect the transfer of the West Indian Islands to the United States. It worked with the knowledge and full authority of the Danish minister of finance, and the minister had given his consent to let the committee dispose of 10 per cent of the sales price for furthering the project, since it was taken for granted that the political conditions in America were such that an affair like the sale of the islands could not be carried through without a substantial expenditure of money. Upon Mr. Hagemann's proposition, Mr. Neils Gron, in the name of the Danish committee, was to apply to Mr. H. H. Rogers for his assistance, and Mr. Rogers declared himself willing to put the matter through Congress on the condition that he be authorized to dispose of 10 per cent of the price. It was further arranged that the banking house of J. Pierpont Morgan in New York and Privatbanken in Copenhagen should represent the Danish Government. The first- named banking house should receive the sum from the American Treasury and deliver it to Privatbanken less 10 per cent, the commis- sion to be paid to America. The work of the committee came to noth- ing, because the breaking out of the Spanish- American war stopped negotiations, which were not resumed later. But the committee still existed, inasmuch as it had never dissolved itself formally, and its sub- connnittee, consisting of General Bahnsen. Herr Hagemann, and the chairman of the committee, Etatsraad Gustav Hansen, kept in con- stant touch with the American s^'ndicate through Mr. Neils Gron. This I discovered later, as when I went to America I thought the D PURCHASE OF DANISH ISLANDS. above-mer.tioned committee had long before given up the project of sale, and on the whole no longer exi.'^ted. When I decided to take up the question of a sale, I presented myself to Department (3hief Schlichtkrull and laid before him mj plans. Herr Schlichtkruil expressed it as his conviction that my plan would find recognition if it could be carried through, since it was cleai; to the Government that it was best to hand over the islands, and the depart- ment chief expressed besides that there would hardly be any difficulty in getting the right to dispose of the 10 per cent commission, as the previously mentioned committee had had, Departme'nt'ch'ief ihquired of the minister if he would receive me, and on the following da}^ I called on the prime minister. ■. "^ The minister assumed a very skeptical position 'toward my project, since, evidently, he did not believe that I could accomplish anything in America. What I speciall}^ desired was to get permission to dis- pose of the same amount of money as the committee three years before and to secure a statement as to:,the amount Ddnmark would be willing to accept for the West Indian Islands. • The prime minister assumed a very distant attitude as regards the first question, and said that if my plan succeeded could I (this expres- sion his excellency used) figure upon the same support as the commit- tee. His excellency expressed himself with greater force than I wish to report — his abhorrence for the political situation in America, which made it necessary to offer money in order to bring a political action, like that of transferring the islands, to a successful termination, but that he had long ago discovered the necessity for making such a money sacrifice, and he was ready to grant it. As to the amount desired for the islands, the minister did not wish to commit himself. He said: ""I can surely not then give you the islands in hands that would be quite contrary to all feelings of dignity." And later: " On the whole, it is not the idea to sell the islands. To that thought is His Majesty opposed. What could be done is to arrange a transfer on such conditions that we sustain no loss, but it must not appear that we sell." When I left the minister he said: I must honestly admit that I can not see how you can accomplish your project; but, of course I can not forbid you making the attempt, especially since the under- taking can become of value to the country. One can not cast away the private intui- tion which is necessary, especially here, when the Government can do nothing. It must constantly be remembered that what must be done is to get the American Gov- ernment to take the first step toward acquiring the islands. The Danish Government is absolutely ignorant of your journey and undertaking. From that conversation I considered myself at libert}'' to draw the following conclusion : (1) The Danish prime minister and minister of finance desires noth- ing better than the transfer of the islands on conditions fair to the inhabitants. (2) The minister considers it necessary and is willing to place a portion of the sales price to further negotiations in question at the disposition of "the private initiative." (3) "The minister will accept a sum of money for the islands which will cover all expenses, the colonial debt pension, etc., so that the country get out of the affair without loss." (4) That my object was to get the American Government to take PURCHASE OF DANISH ISLANDS. 7 the first step without havino- the Danish Government officially even suspect anything of my undertaking. I dare insist thiit my under- standing of the four points was correct, and I have strictly kept to them point for point, as the following will show. IVIY TRIP TO WASHINGTON. In October, 1899, I went to America via London. I had no con- nections there, and not as much as a letter of introduction, but I had a decided opinion as to how I should manage, and I had good cards on hand, (1) On President McKinley's platform in 1896, together with a few reforms of vital interest to the Union, was expressed the desire of securing the Danish West Indies Islands. The President and his fol- lowers, the Republicans, naturally, therefore, must consider the acquirement of our islands as being important, and therefore it would hardly become difiicult for me to interest the Government in Wash- ington in my plans. (2) I knew the sentiments of Americans against Germany and their anxiety as regards an attack upon the Monroe doctrine. I could clearly show that the idea of securing directly or indirectly the Danish Islands was not strange in influential circles in Germany. (3) I knew that the Americans desired to establish a strong naval harbor in the West Indian waters. On the independent Cuba that could not be done. Porto Rico does not own a single good harbor, but America had, nevertheless, chosen San Juan, in Porto Rico, as the best place, and had voted $3, 000,000 to improve the harbor. (That project was stopped after I had been in Washington.) St. Thomas harbor is neither large enough nor especialh^ suited for a naval station, whereas the harbor on the cast side of St. John complies with all the requirements of that harl)or. I made a chart, and I felt confident that just that harbor would open the eyes of the Americans to the value of our islands. All three suppositions proved themselves to be absolutel}^ correct. From among the manj^ thanking houses in New York I chose the firm of I. & W. Seligman as one of the most recognized and most respecteVl, and which at the same time stood in close touch with the Government. The house Seligman is there the American's Naval Department special financiers, and is often used by the Administration in Washington to handle large money transactions. I have never had occasion to regret that selection. Since it was necessary for me to secure an introduc- tion to President McKinley, Mr. Seligman secured me the same through a friend of the President, a wealthy shipbuilder of San Fran- cisco, Mr. Scott. Besides, I made the acquaintance of the President's brother, Mr. Abner McKinle3% who is a lawyer, and has a business in New York, together with a Colonel Brown. These two gentlemen are only very little respected, and their l>usiness, which specially consists in securing certain firms' contracts and concessions from the Government, is with out question anything but nice, but both Mr. Brown and Mr. Abner McKinley have the entree to the White House in Washington. They know most accurately all the winding paths through Congress, and are well informed as to what Memljers of Congress must ))e paid, as well as to the method which must be used to accomplish it. 8 PUECHASE OF DANISH ISLANDS. As the situation was, I could not be too particular in the choice of my assistants, and I must say that the g-entlemen, Mr. Brown and Ahner McKlnley, have rendered me excellent assistance. Ten days after my arrival in New York 1 was informed that Mr. Scott had secured me an introduction to the President, and that he awaited me. I went to Washington, and obtained an audience with the President, who received me most cordially. I informed him of the object of my visit, while I pointed to his platform of 1896, and expressed it as m}'^ personal conviction that the Danish Government would scarcel}' refuse to consider with favor a proposition from the Americans for the transfer of the islands on conditions which should prove fair to the inhabitants of the colonies. I made it clear that I acted entirely on my own responsibilit}", had no connection with the Danish Government, and told my motive was simply my own pecuniary interest in such a sale. The President admitted that he had always considered it natural and right that America should take over the islands, which, as he expi-essed himself, had for a long time been on the market. 1 made sure of that expression to remark that I had every reason to belive that the Danish King would never allow his colonies "" to be on the market;"" that His Majesty, on the other hand, found it out of harmony with the dignity of the country to sell any part of the land, but that it A^ould be of much economic advantage to the islands to get it under the large Repul)lic, and since His Majesty has only the good of his subjects at heart, do I feel sure that the King will not oppose any arrangement which will give to the Danish Islands such advantages as the natural harbor of the West Indian waters, the United States can oti'er them. The President closed the audience when there were announced six Indian chiefs. He requested me to seek Secretary Hay the following day and to discuss the matter further with him, and thanked me for the visit. The next morning I was received by Mr. Hay in the foreign minis- try. I had taken with me my large chart of the harlior of St. John, and a pamphlet I had written on the conditions in the \^^est Indies, the fertility of the islands, the harbor conditions, etc. — in short, all which could make the Americans desirous of bu3'ing the islands. Mr. Ha}", however, did not need much information. He appeared to know all regarding the islands; also that a Danish committee had sought to secure the Government's interest for the sale three 3'ears before. Mr. Ha}^ was well informed as regards the unfortunate pecuniary status of the islands, and asked why Denmark did not permit the colonies to export sugar duty free to the mother country. When I laid m}^ chart of St. John Harbor on the table, it at once caught his interest. He asked me why it was that Denmark had so far neglected so excellent a national harbor as not to even have it marked oli' b}- buoys, etc. I said that we had enough in St. Thomas Harbor which was quite good. Mr. Hay did not appear to take special interest in St. Thomas Harbor. He constantly returned to the harbor of St. John, and evi- dently believed my chart to be very unreliable. I showed him how much that harbor was thought of by others, and that if America did not care for it then it would interest Germany so much the 'more. That made a strong impression on Mr. Hay. He became actually very excited when he learned that a German company had contem- plated making use of the harbor and of bu3dng the whole island. Once PURCHASE OB^ DANISH ISLANDS. 9 he exclaimed: "Thev are trjang to sneak into the, West Indies, are they?" When I was through reading the papers showing the above, he re<[iu'stod that he might be permitted to keep them and my chart while he thought over the atl'air. He got nw address, and 1 went The next morning early 1 was called up to Mr. Hay. That time Admiral Bradford, Chief of the Navigation Department, was present. My chart la}^ on the writing- table, and both by Mr. Hay and Mr. Bradford I was cross-exammed for about an hour. It was evident that the interest in the Danish West Indian Islands was advancing. The next day I went to New York, where I remained until Novem- ber 20, on which day I received a written request to come to iNIr. Hay. Mr. Hay immediately told me that he had had investigations made both as regards the German company on St. John and my chart; that my representations had been proven correct; and that he would now take steps to begin negotiations with the Danish Government for secur- ing the Danish colonies. 1 asked him to i-emember that the Danish Government knew nothing of my visit to Washington, to which he replied that he could make no mistake as to my position, since I myself had declared not to possess credentials of any kind, but that Mr. Ha}" would highly appreciate it if I personally would accompany a trusted diplomat to Copenhagen and secure for him a secret meeting with the chief of the Danish Govern- ment. Admiral Bradford said: "I have sent in m}^ report of the Danish West Indian Islands, and especially over St. Johns Harbor. I can tell you that my report could not be more favorable to 3'our plans," and the Admiral followed me out in the hall and said: "I will let 3^ou know that I not only wish the islands for the Nav'}^, but I intend to demand them." On the 2Sth November I received two letters from Foi'eign Minister Hay, in one of which he informed me that he had written to the am- l)assador in London about my earl}^ arrival. The other was an intro- duction to the ambassador in London, Mr. Choate. I could first get away on the steamer sailing December 4, and as a friend of mine, Mr. AY. G. Pcdersen, had started on the 29th of Novem- ber, I delivered to him a primaiy report to the prime minister, at the same time requested him personally to inform the foreign minister, both of which he did. When I, on the 12th of December, announced myself to the Ameri- can ambassador in London, Mr. Choate had already received informa- tion as to my mission from Mr. Hay, who had given orders that the first secretary to the legation, Mr. White, should incognito go with me to Copenhagen and there confer with the Danish Government about the transfer of the islands. Mr. White's wife was in the mean- time ver3Mll, and he had gone south with her, but had not come farther than Dover, where he awaited a good crossing over the Channel. I decided immediately to go to Dover. Mr. Choate had received instruc- tions from Mr. Ha}' to keep secret, if possible, the conferences about the sale of the islands. Mr. Choate proposed that ]Mr. White should meet the Danish minister some place outside of Copenhagen, to which I replied that the minister himself must decide that, but that I would make the proposal. The pr()])(>sal, however, was not acce[)tcd. On the same day I arrived in London I went over to Dover, where I met H. Rep. 2749 2 10 PURCHASE OF DANISH ISLANDS. Mr. White. The next morning we went together to Paris, where we parted. White brought his wife to Bordighera and 1 went to Copenhagen. Mr, White l^ept me assured of his movements by telegraph, and on thei9th of December he arrived in Copenhagen. IN COPENHAGEN. In the forenoon of the 16th of December 1 arrived at Copenhagen. Dr. F. Hansen, son of Etatsraad G. Hansen, who had traveled with me from New York, where to some extent he assisted me as secretary dur- ing my activity for the sale of the islands, had arrived in Copenhagen two days before me. Mr. Hansen had, without my knowledge and desire, sought an audience with His Royal Highness the Crown Prince, in order to inform him of my arrival with an American diplomat. Dr. Hansen has concisely written some of his recollections about several personal happenings. I quote therefrom the following: As regards what has happened in America, I can add nothing above what Captain Christmas has already stated. I visited Mr. Hay in Washington one of the last days in November for the purpose of obtaining some papers, and he requested me spe- cially not to say anything aljout the affair to the American minister in Copenhagen. On the homeward journey I parted from Captain Christmas in London, since he went to Dover to meet Mr. White, and I went directly to Copenhagen. On my arrival here I immediately sought an audience with the Crown Prince, who at that time was Eegent during the King's ab.^ence. I told him exactly all that had hap- pened to us during our stay in America, about the United States Government's strong desire to get the matter through, and about Mr. White's early visit to Copen- hagen. His Royal Highness expressed his doubt as regards the possi])ility of bring- ing the matter to an early termination. It has several times failed just as it was almost completed. That it would not be safe to be too hopeful before the matter was entirely finished, although it would greatly please His Royal Highness if I should be proven right in my optimistic view, that Captain Christmas had actually been able to put the matter through. About a week after I was informed that (lehejmekomferentsraad Vedel to a pri- vate person (Generalinde Bruun f. Bluhme) had expressed his disapproval of the fact that I went about and told that I had something to do with the sale of the Dan- ish West Indian Islands. Since I knew that I was absolutely not guilty of any indiscretion, and that His Royal Highness the Crown Prince was the only one with whom I had discussed the affair, I sought Gehejmekomferentsraaden to get the mistake corrected, and on that occasion had a prolonged conversation with Gehejme- komferentsraaden. It appeared that he had actually entertained the idea as above expressed. He admitted, however, his mistake after hearing my presentation of the affair. Gehejmekomferentsraad Vedal apjieared in the beginning to feel strongly against the idea of having Captain Christmas having anything to do with the affair. It appeared, however, that His Excellency changed his mind slightly after I had more closely informed him of the circumstances, especially after he had heard of Christmas's rela- tion to the prime minister, Mr. Horring, and about the accomplished results, viz, Mr. White's visit to Copenhagen. So much for Dr. Hansen's report. Gehejmeraad Vedel had, however, as above said, expressed himself with indignation about my etforts in America to Generalinde Bruun, who evidently believed that I had taken the affair out of her son's (Kammerherre Brun, in Washington) hands, and at once wrote and told him the whole affair, which should have been kept secret. This was the reason for and the beginning of Mr. Brun's jealousy and enmity toward me, feelings which he, even in affairs of so great importance, could not control while I worked for the Danish Govern- ment in America. Two hours after my arrival in Copenhagen I presented myself to PURCHASE OF DANISH ISLANDS. 11 the prime minister in the treasury department. The minister received me very cordially and vvufs oToatly interested in hearinjr how the affair had evolved itself, and about Mr. White's expected arrival. The minister said. Well, thanlvH to God, that'the sale now can be brought about, I must compliment you for what you have accomplished. I had really not believed that it would have been possiljie for you. The minister would not agree to meet Mr. White either in Roskilde or in Malino. "1 can not see what is the use of all that secrecy. The mootiiio- must naturally take place here in the foreign ministry." Some time after his excellency asked what language I thought Mr. White could use. I answered that besides English I knew he could talk excellent French, which I had experienced in Paris. The minister replied: "It is too bad that of those two languages I am not at all familiar." I: "It is possible that Mr. White understands German." The minister: "German I understand quite well; that is, I can read, l)ut I lack entirely the practice in speaking it." Tlio minister ended up by proposing that the foreign minister, Mr. Kavn, should meet Mr. \Miite instead of himself. The prime minister asked me about the conditions. I informed him then how I had insisted upon both over for President McKinley and over for the foreign minister in Washington that the Danish Govern- ment would not in any way make a business out of the islands, and would only consent to a transfer on such terms that Denmark should not sustain a loss. I had said as my opinion that the sum would likely come up to about three and a half million dollars, but I said to the piime minister that the American Government would be sure to give more if it was demanded. The minister said: "We can hardly do it for less than -|4:,OOo,000," to which I replied that it would l)e suilicient to show Mr. White that, and the size of the sum would play an unim- })ortant part. I then touched upon the question of the commission and pointed out how I, in conformity with the minister's expressions to me before my departure, had allowed m3^self to make use of the same 10 per cent which the former committee had had a right to dispose of. 1 gave the minister frankly the information that I had promised, besides others, President McKinley's brother and his partner a certain sum. Besides, I had bound to me two press associations, one in Washington and one in New York, and that I had an understanding with the banking firm, I. & W. Scligman & Co., that they were to assist me, all, of course, upon the conditions that the sale of the islands took place. The minister expressed thtit he found the political conditions in America horril^Ie, but "that it had been known for a long time, and I can let you dispose of the 10 per cent, but not any more." His excel- lency asked me what I thought I would make out of the affair. I replied that it would hardly be very much. His excellency: "That you must certainh' try to arrange, for more than the 10 per cent I can not secure 3'ou, and it would be too l)ad if you should secure nothing for yourself." I: "If it should come short (for 10 per cent is not very much to use for such an undertaking), would it not be possible for your excellenc}' to secure me some from home?" His excellency: "That I can not guarantee you. I can only promise you to do my l)est in that way; but you know very well how narrow-minded are the peasant members of the Rigsdag." "^Fhe minister asked me if I was personally 12 PURCHASE OF DANISH ISLANDS. acquainted with the committee, and proposed that I should meet with the members of it. His excellency said: The committee will surely take the greatest interest in the undertaking. They are excellent people; especially Mr. Hagemann can be of great assistance. He is well acquainted with American conditions. It will be of- great assistance both to you and to me if the negotiations are supported by the committee. I promised to put myself in touch with the committee immediately. As one will see from the alcove, I had every reason to be satistied. The prime minister had on no point disavowed me. He had com})li- mented me for what I had accomplished; had expressed himself will- ing to nco-otiate with the American representative upon the same basis as was mentioned in Washington. The islands should not be sold, but transferred to America, on the condition that Denmark sustained no pecuniar}^ loss. The minister had given me right to dispose of 10 pov cent of the commission and had even promised to do his best to secure for me a commission besides what I could make out of the 10 per cent. Etiitsraad G. Hansen's son, Dr. Folmcr Hansen, applied in my name to his father, the committee's chairman, and requested a meeting. That was brought about the next evening, though only the subcom- mittee met, since several of the members ^vere absent from the city. The subcommittee consisted of the chairman, Etatsraad G. Hansen, General Bahnson, and Fabrikejer Hagemann. The chairman, and afterwards Mr. Hagemann, expressed themselves satistied with what I had accomplished, complimented me on that point, and afterwards we discussed what was further to be done. It was agreed upon that a new plan had been adopted for accomplishing the sale of the islands, brought forward by a new man, and based u]:)()n new chances — as, for example, the new harbor on St. John — but that the aim was the same as when the committee worked, as well as the means for accomplishing the result, viz, the 10 per cent commission. As regards that point, none of those present had entertained the slightest doubt, and that is best shown by the fact that the gentlemen unanimously advised me to efl'ect a relation with the American mem- bers of the syndicate, the gentlemen Gron and Rogers, in part for the purpose of giving over a proper portion of the commission to them. Not only would it ])e dangerous to secure those gentlemen's enmity, but their assistance would to a high degree further the undertaking. Espe- cially Mr. Gron had done a great deal of work for the sale of the islands before, and therefore had a right to consider himself entitled to a pecu- niary advantage. 1 felt convinced of the accuracy of all that, and wished nothing more than the opportunity of working together with Gron and Rogers. I promised to otier to them as much as was possi- ble of the 10 per cent. Later it will appear that I offered to them over half of the commis- sion—namely, 1200,000. Etatsraad H. Hansen ofl'ei'ed to give me a letter to Mr. Gron and Fabriker Hagemann and one to Mr. Rogers. We next discussed Mr. White's expected arrival and his conference with the foreign minister, and Mr. Hagemann then showed how impor- tant it was that the islands were admitted into the American tariff' union. I promised to talk with Mr. White concerning that. Of our conference that evening, as well as later, a report was made in the committee's journal b}^ Etatsraad G. Hansen personall3^ It will there- fore be easy to have contirmed if my statements are true. - PURCHASE OF DANISH ISLANDS. 13 On the evening of December 19 Mr. White arrived, and I drove him to the Hotel Phoenix, where during- his stay he was my guest. In order to remain as much as possible incognito, I gave his name as " Schwartchkopf , from Korlin." That ])recaution, however, was not worth much, since a couple of times daily he received telegrams under his right name from his wife at Bordighera. In the meantime he vis- ited no one here, not even the American minister. He was always in niy presence. The only on(\s who recognized him was Baron Reedtz Tliott and Baroness Reedtz Thott, who one day sat at the table next to us at the hotel. On the 20th took place the meeting at the foreign ministry, but before that Mr. AVhite came to my room and re(iuested instructions on diti'erent points that might b(^ brought up in the conference. I still hold a piece of paper, upon which he had written down three points, to which I added the (juestion of the tariff, unfortunately to no avail, since the foreign minister forgot entirely to mention it, and Mr. White did not feel himself under obligation to offer better conditions than .were demanded from the Danish side. For the sake of precaution I asked Mr. White how he intended to introduce the conversation, and he replied: "Why, of course, 1 will tell him that as Denmark wislies to get rid of the islands we might buy them at a reasona})le price." I tried to make him understand that that was the very worst thing he could say. and he promised to begin thus: " That the United States Government under the just inaugurated colonial-expansion policy, had discovered the advantages which America could secure from acquiring the Danish West Indian Islands, but that naturally the American Gov- ernment could not possibly under any circumstances intimate to Den- mark their possible willingness to buy them before secretly they had secured from the Danish Government the intimation that they were willing to part with their colonies." Mr. White assured me after the conference that he had used the very words I have said above, and added: " I never saw a man smile like the old fellow when I had given him just your words, so I think they were exactly what he wanted." I accompanied Mr. White to the foreign ministry and presented him to his excellency. Since I remained in the antechamber, I do not know what took place, except from Mr. White's report, and, since he was in a rather playful mood, I will not repeat his report, except in an abbreviated form. The minister had declared himself willing to negotiate with America about the transfer of the islands vipon such a basis that Denmark should receive enough to cover the colonial debt and the expenses to pensions, etc. To Mr. White's question as to the size of the sum, the minister replied that it would perhaps come to between $4,000,000 and $5,000,000. That gave the American later an opportunity play- fully to say, "The old fellow was not much of a business man. Why didn't he ask $4,000,000 or $5,000,000? Of course he can not expect us to give him moie than $4,000,000 after that." During the conference Kmhr. Krag was called, and he and Mr. White then went into the archives, where the necessary material from the minister of finance was to be obtained, so that Mr. White could take notes of the islands' budget, debts, pensions, Crown estates, etc. Under that adjournment of the conference, Minister Horring, 14 PUKCHASE OF DANISH ISLANDS. accompanied by Department Chef Schlicktkrull, came in to find out bow the meeting had resulted. Both appeared well satisfied when they later passed through the antechamber where I stood, and the minister said a couple of friendly words to me. After Mr. White came out from the archives he remained for a short time with the minister. The conference lasted about an hour. We then took a long walk together, during which Mr. White recounted to me the whole of the conversation with the minister and Mr. Krag. Mv. White was very well satisfied with the result of his journey, and he expressed it as his conviction that the islands before one yenv would be American. He said: "The price is not at all the question; but asyour Government won't make any bargain, why, of course, we don't wish to pay more than necessary. It is a very tine feeling (not to wish to sell the islands). We Americans are more in the business line, don't you know. We hardly understand those feelings." Mr. White departed that evening. When on the following evening 1 met with the subcommittee 1 informed them of Mr. White's report of the conference, and espe- cially that the tarifi' question had not all been discussed. Mr. Hage- mann was very angry about that, as well as the other gentlemen, and foiuid that it was absoluteh' a scandal that the most important point had been forgotten. He predicted that there would spring up a strong sentiment against the sale of the islands if the colonies did not get free trade with America, Mr. Hagemann was certainly right therein, for if the sugar from the islands could be sold on the American market without duty the propert}" there would rise in price 40 per cent. 1 offered then to telegraph Mr. White and request hiu] to add to his report to Mr. Hay in Washington the demand for free trade. That request was accepted. Mr. White answered by telegraph that the desire would be complied with. A letter to me from Mr. Hagemann of December 27, 1899, shows the importance he places on the question of free trade for West Indian Islands. He writes: "Thanks for the information as regards Mr. White's report. It was fortunate that the most important point of all was considered from the beginning." I have during my whole work in the affair of the West Indian Islands sought assistance and counsel from a lawyer to the supreme court, Mr. Salomon. It is therefore quite natural that I at the time, while I was constantly conferring with the prime minister (naturally keeping Mr. Salomon constantly informed of such conferences), should several times request Mr. Salomon in my stead to talk to the prime minister, to whom I had, with Mr. Salomon's consent, expressed the fact that he was my adviser. Mr. Salomon answered my request that he naturally would be ready to seek the prime minister in case he should express the desire to see him, but that without such expressed desire he could not trouble the minister by requesting a conversation. Howev^er, on the 27th of December a conversation took place between the prime minister and Fr. Salomon, since the latter, without any request from me, on that day sought the minister. I have requested Fr. Salomon himself to write down and present to the prime minister a report of their conversation and everything else known to him regarding my work for this afi'air. To this report, the contents of which are known, 1 take the privilege to call the high Government's attention. It was clear to the prime minister that it was necessary for me again PURCHASE OF DANISH ISLANDS. 15 to return to Amoiica; tliiit I, as it were, had all the threads in my hand, and knew the persons who should agitate during the couiing negotiations and acts in Congress. Besides that, Mr. White had urgently advised the foreign minister to let me complete what I had begun, since 1, as Mr. White expressed it, was persons gratissima in Washington. In the meantime I had used up all my personal means during my trips to West Indians and America. Since the Danish (Jovernment had now accepted all my plans touching the sale, and furthermore desired to make use of my assistance, it appeared to me reasonalile that the Gov- ernment should pay my journc3% or at least a part thereof. The prime minister was pcrfectl}^ willing to do this, but he had no funds from which to take the money. It was then arranged that Mr. Hagemann should advance me a sum of 0,000 kroner, against the guarant}- of the minister of finance. Tiiat sum should be regarded as an advance on what I should make out of the 10 per cent commission. Hagemann brought al)out that arrangement b}", together with Etatsraad G. Han- s(Mi, calling in the ministr}- of finance. Regarding that advance, Mr. Hagemann writes me on Deceml)er 29: "Etatsraad Hansen and 1 have just come from the prime minister, who, in accordance with 3"our statement yesterday, requested me to assist you by advancing an amount not exceeding 6,000 kroner, in the form of a letter of credit. That shall be done." It has always been clear to me that it would be dilfieult for the prime minister to make any written documents regarding the aflair, neither as regards credentials for authority nor guaranties for what by word of mouth was promised me, especially on so delicate a matter as the use of the 10 per cent. The prime minister's was naturall}^ suf- ficient. There was that possibility that the minister might die while the affair was in progress, but in that case I should have as witnesses to what was agreed upon such prominent men as Department Chef SchlicktkruU, Fr. Salomon, and the members of the subcommittee, and in case of a change of ministr}^ all were convinced that the prime minister would give his successors all the information necessary regard- ing the situation and those binding promises which were the basis for my work for the sale of the islands and upon which hung both ui}^ moral and pecuniar}^ existence. In the meantime there were two difficulties which had to be over- come, and in this the minister had to act personally. The minister in Washington, Mr. Brun, I have known from my childhood. He has always been an energetic and intelligent man, but reserved and peculiar; an extremeh" sensitive man about his own dig- nity. As soon as I heard Dr. Hansen's experience with Gehejmeraad Vedel and Generalinde Brun I knew that ^Minister Brun would be my enemy. I informed the prime minister of this and showed the great danger the whole affair would encounter if ]Mr. Brun began to intrigue against me in Washington. The prime minister recognized this, and decided to write a letter to Mr. Brun in order to make him assume the right position over for me. At the same time could that letter serve to clear another dirticuly, namely, to show the Danish Government's relation to the banker I had promised, and whom the Government's chief had accepted; l)ut the prime minister did not like to write directly to Seligman, and it was necessarj^ to find a means whereby the firm could receive some official recognition. The prime minister then promised me that in his letter to Mr. Brun 16 PUKCHASE OF DANISH ISLANDS. he would recognize Seligmans as the American bankers on whom 1 could depend, and who should receive the price of sale for Denmark, and afterwards send it to Priv^atbanken in Copenhagen with a 10 per cent discount. The prime minister requested from me a copy of my contracts with the firm of J. & W. Seligman & Co., and I sent the copy to the minister's private house in Tordenskjoldsgade. The prime minister's letter to the minister in Washington was sent. The con- tents I am not acquainted with, but the results I know. Mr. Brun worked with great energy against me. He was successful in ruining my position and my name in Washington. He refused to enter into relations with Seligmans, and thus I never got my bankers recogiaized. About that later. I shall only in this connection remark that the recognition of m}^ bankers was the basis for my whole efi'ort. 1 had no money above that which I should use personally, and to bribe poli- ticians and buy journalists on credit is naturally very difficult. At any rate, guaranties must be furnished. iBy recognizing my bankers the prime minister gave me the neces- sary pecuniary backing for the money ofters it was necessary for me to make in order to get the islands sold. This the minister recognized, and expressed it both to me and to my lawyer, Salomon. The Danish minister in Washington should have by word of mouth given the necessary recognition, but he refused it absolutely. There was one more affair to arrange before I started on my jour- ney. I had been dismissed from the service of the navy by a court- martial, and that fact could become ruinous to my efi:'orts if anybody should use that easily obtainable weapon against me in Washington and thereby make me impossible with the American Government. W^hen the prime minister had used my service and secured for me the means for the journey, since 1 had already had personal intercourse with the President and foreign minister of the United States, and since I was the one who had personally presented the American diplomat to the Danish foreign minister, it appeared to me in harmony with all the parties' interests that my position should be changed. I therefore applied in this connection, to the men about whom I know, that he both deserved and possessed the absolute confidence of the prime minister, viz, Mr. Hagemann. Mr. Hagemann realized that my desire was opportune, and promised to take up the affair, about the good result of which he had no doubt, but the good result did not come. Mr. Hagemann has since told me that he did all he could for me, but in the meantime the withdrawal of judgment against me was refused for the present, but intimated as a possibility in the event of the success of my mission. I should here remark that the minister of the navy, Pavn, at one time prevented me from resigning, since I pre- ferred that to dismissal by court-martial. Mr. Ravn said to my father, who gave in my resignation: "Your son can at the very highest only receive a couple of months in the fort, and that is nothing to speak of. Besides, if he sends in his resignation, he will not receive that recog- nition that is due him on account of his courageous work in Siam." In this matter Mr. Ravn prevented me from resigning, and I thought that I could expect from him that he would make use of this oppor- tunity to make good again the injustice which he had previously done. But I was mistaken. My dismissal by court-martial should continue to hang on me as a chain about my leg. Neither the foreign minister, Ravn, nor the prime minister wished to take up the affair, and what I PURCHASE OF DANISH ISLANDS. 17 anticipated happened. My enemies in America made use of this means to the fullest extent. Mr. Bnin started the startling news that the man who had gone between the American and Danish Governments had been kicked out of the Danish navy by a court-martial, both in the American foreign ministry and in the good society in Washington. Mr. Neils Gron took good care that the press got hold of the scandal and was delicately used. The day after Mr. White had been at the foreign ministry it was ])ublislied in the papers (from Danish journalists). It went over England to America, and therein' Mi". Rogers and Mr. Gron secured the information that the afl'air of the islands was again up. On the same day that I left Denmark Mr. Hagcmann received the following telegram from Mr. Rogers: March 1, 1900. Danish islands up again, with prospects of success if worked with proper parties. Would like authority to speak. H. H. Rogers. Mr. Hagemann sought me at the hotel and gave me copj' of tele- gram. Together we wrote an answer, which was as follows: March 1, 1900. The sale is in official channels. Hav'e protected your interests. Await arrival Captain Christmas, St. Paul, with introduction to you. Hagemann. On January 5, I received in London the following: Captain Christmas, Hotel Savoy, London. Following cable is sent: "Sale is in official channels. Await arrival Captain Christmas, St. Paul, with introduction to you. Hagemann." I loft Copenhagen on January 3 after I had had a farewell audience with the prime minister. The minister asked me to do all in my power to get the price up to $4,000,000; told me about his meeting with my lawyer, balomon, to whom he sent his thanks for the visit he (Salomon) had paid the minister; advised me with much cordiality to be sure to see that I got my share out of the 10 per cent, and said in conclusion: "God be with you, and do not forget to send frequent reports." No one who knows anything about the affair doubted that on my departure I had commission from the Danish prime minister to work for the sale of the islands, and that I had the right to dispose of 10 per cent of the sale price. I do not know whether from a legal point of view there is a difference between a verbal and a written authori- zation. Certainly from a moral point of view there can be none. There can be no difference between a man's verbal promise and his written one. The Supreme Court lawyer Salomon has clearly expressed himself to me as to his understanding of the relation between the prime minister and myself and as regards the authorization given me. The subcommittee also had no doubt on that point. ]Mr. Hagemann requests me that all money transactions in regard to the sale should go through Privatbanken, on the ground that that bank at a former time was interested through him. He would not make such a request to me if he did not know that I had it in my power to arrange the money matter as I might think best. And when Rogers later (see below) telegraphically requested sub- 18 PURCHASE OF DATHSH ISLANDS. committee to leave me "disinterest C/hristmas," the gentlemen replied: "This is impossible, since 'matter is officiall}^ in Christmas's hands.'" The subcommittee recognized thereby again the authorization I had received from the prime minister and called it "oihcial." IN AMERICA. On the same day that I arrived on the steamer St. Paul in New York I sent the two letters of introduction to Mr. Rogers and to Neils Gron. The first 1 met the day after in his office in the city. Mr. Rogers is a man of about 60, extremel}^ wealthy, but, in spite of his large for- tune of about $50,000,000, exceedingly desirous of making money. He is the most active member of the Standard Oil Couipan}", and is both hated and feared in the money world on account of his absolute inconsiderateness in his money operations, which yearly demands a great many offers, both on New York's and C -hicago's exchanges. Mr. Rogers was evidently dissatisiied ])ecause I had taken hold of the sale of the islands, and he repeated several times, "I wish to make money by this, and don't you forget it." 1 asked what sum he demanded for his assistance in the affair, but as to that he would not commit himself. He requested me to see Mr. Gron and further to negotiate with him. When 1 left he said, "Now, Mr. Christmas, I don't know if we come to an agreement or not; but, mind 3'ou, this island business will never pass through Congress with- out my consent. I am able to swing 26 votes in the Senate, and don't you forget it." I sought next Mr. Neils Gron. This man is a Dane by birth, and has gone through Harvard University. He leads a more mysterious existence than any man I know. He calls himself a journalist, but is not connected with any paper. Most people look upon him as a kind of secret agent, either in the service of the police or else in one or other company's service; but no one, in fact, knows anything about his means of existence or his efforts. Mr. Gron was absolutely unapproachable. He presented me the choice of securing him and Mr. Rogers as enemies, which, in his opinion, would make the sale impossible, or to give the whole over into his hands and depart for home. I should have nothing to do with disposing of the 10 per cent commission. The next day, however, he sought me and offered me |25,000 of the commission. This Avas an impossible condition, since I had already disposed of a much larger sum, and I answered him that more than half of the conmiission it was impossible for me to offer to Rogers and him. Gron refused that offer and prophesied that I would soon realize my error in not handing everything over in his hands. The next day he brought my wife a long article regarding the sale of the islands, which had the heading "Pretty woman in St. Thomas deal," and spoke of my wife in the most scandalous manner and expressed insinuations regarding the Danish King. I feel convinced that no other than Gron himself had inspired that article. No Ameri- can journalist could have known the special relations mentioned therein. The next day two large New York papers contained interviews with me. My expressions regarding the sales of the islands and the Danish King's position toward the sale were the height of indiscretion and PURCHASE OF DANISH ISLANDS. 19 lack of tact. In one of the interviews I told the reporter that Presi- dent McKinley's brother was to receive an enormous sum of money for bringing about the sale. I had had no interviews whatsoever and had not tallvcd to a reporter since I landed in America. I protested both verbally and in writing to the ditfercnt editors, but no attention was paid to m}'^ demands for a retraction. I do not hesitate to assort that these and all other false interviews and compromising articles originated from Mr. Gron, dii-ectly or indirectly, and thereby he l)ogan a fight against me which should last for over two months. Mr. Gron's use of the press absoluteh' aston- ished me. It was lirst later that 1 found out that Mr. Gron's means are often used in America and tliat, on the whole, it is placed at the disposition of him who has money enough to otier. It is ditlicult at home to judge of Americans, and especial!}^ American press conditions. I, at any rate, had never dreamed to what a degree the American press is for sale, both for political and other speculations and intrigues. Dui'ing my whole stay in America I fought constantly with Mr. Gron to get him to work with me, or at least to cease to oppose my etforts. Late in February I ottered him and Mr. Rogers 1200,000 if the sales price should be §^4,000. 000. He accepted this, but a Aveek later he broke his agreement and demanded more. During the last part of m v stay I was compelled to use strong means to compel him to ni}' side, and I succeeded in getting a binding contract between us. It was at that time too late to get the island question through Congress during the spring session, but it could be passed during the coming winter session. The contract provided that Gron and his friends should dispose of two- thirds and I of one-third of the commission. I was so much the more anxious to arrive at an understanding with Mr. Gron, as I was afraid that he could overthrow my work, and besides Mr. Gron had — I regret that I have to say — his veiy best assistant in the Danish minister, Mr. Brun, who at the same time was my worst enemy. As I have previously remarked, our minister in Washington, even before my arrival, worked against me. Mr. Brim was, through his mother, Generalinde Brun, already, before ni}^ departure from Copen- hagen, made acquainted with my work for the transfer of the islands, and that scarcely on a favorable basis for me. as Generalinde had, through Mr. Vedel, according to Dr. Hansen's report, got the impression that I was interfering with the minister's work, which, humorously enough, also seemed to be the minister's own impression. One could imagine that the minister, from principle, found it improper that unauthorized private persons should appear as politi- cians, but that was b}^ no means the case. Mr. Brun knew perfectly that! appeared with authorization from the prime minister, especially as he had received written information on that point from the prime minister, and he had at the same time for a long time been acquainted with the former conmiittee's work. Mr. Brun stood even in a very intimate relation to Mr. Neils Gron, whom I several tiuies met in the minister's home. Mr. Gron was always well informed what of interest had tidvcn place regarding the atl'air in Denmark, and he prided him- self upon his good relation to the minister — proud because he knew that I had nothing to pride myself upon in that connection. The minister did not feel hiinself in the slightest degree obliged to do anything for me because the Danish prime minister had commended 20 PURCHASE OF DANISH ISLANDS. me to his consideration, and he stated several times that, as he had no order from the prime minister, he could not undertake to assist me. The banker Seligman he would have nothing whatever to do with. Upon the minister's sympathy for Gron, w^hom he knew opposed me, and his antipathy for myself I shall not dwell any longer, but I must here express my indignation that Mr. Brun attempted to make me impossible in Washington. He used, in order to create distrust of me, that easily obtainable and unworthy weapon — my discharge from the navy — and it was made use of in the foreign ministry with mem- bers of Congress, with certain journalists, and in the circles of society where my wife had been well received. As I have previously related, during my former stay in America I had established relations with the President's brother, Mr. Abner McKinley, and his partner, Colonel Brown; besides I had bound to me two press associations in New York and Washington. These different connections brought me once more in touch with a number of Senators and Meml)ers of Congress. Congress, in the middle of Feljruary, was taken up with the Nicaragua Canal treaty and the extension of the fleets, and both of these atlairs had to ])e disposed of before the ques tion of the Danish Islands could be brought forward. I shall attempt, in setting forth my work in W^ashington, to keep close to the reports and letters which I, after agreement with the prime minister and the committee's chairman, Etatsraad Hansen, forwarded to them, and I use quotations from both reports in order to illustrate the progress of aflairs. January 18. Etatsraad Hansen, Wai^hingfoh : Mr. Rogers expressed that he, if he obtained that advantage from the sale which he thought due him, will be pleased to assist me. He requested me to arrange all with Gron, who represented him. I sent your letter to Gron, who lived at the Waldorf, and next had a meeting with him. I regret much to have to inform you that Gron's position taken over for me was absolutely antagonistic. Gron's opin- ion is that 1 have fooled him and ruined his dearest hope that he him- self should sell the islands. I had in the meantime substantial hope that I would be able to get Gron and Rogers over. Gron has in the meantime already began actively against me, as following will show, and he has openl}^ expressed that it was his and his party's intentions to overthrow the affair at present in order later to take it up afresh. I shall here remark that all that has appeared in American papers called interviews with me are lies from one end to the other. I have not allowed myself to be interviewed and will not. Since the papers, however, have been full of reports relating to me and the sale of the islands, and since it could hurt both myself and the affair, I requested the editor of the Washington Post (the Government organ) to publish a declaration from me. That clipping I inclose. The declaration came out early in order to satisfy the Danish minister here. I have had a conference with Mr. Haj'^, who received me very cor- dialh^ only he expressed regret that Mr. White's visit to Copenhagen had not remained a secret. He expressed himself very satisfactorily about America's desire to buy the islands. I suppose the question will be brought forward in about a fortnight, as soon as the debate over the Nicaragua Canal and the extension of the Navy is brought to a close. PURCHASE OF DANISH ISLANDS. 21 Papers of all colors have already expressed themselves in favor of the purchase of the islands, and as far as I have heard the Govern- ment has both in the Senate and House votes enoug-h to put the matter through. To-day I am to talk with Senator Depew and other members to whom I have letters of recommendation. In the same way I am to have a meeting with Admiral Dewey, whose influence is very large. I sent 3^esterday evening the following cablegram: ''Afl'air looks favorable. Christmas. " I had, as above mentioned, at last made the acquaintance of different members of Congress, for example, Senators Lodge, I)epew% Clark, Bacon (the last two were Democrats); members of the House, Alex- ander, Gardner, and others. They all took a great interest in the ac(|uirement of the islands and promised me their very l)est assist- ance. I got them to establish the price of 14,000,000, as the prime minister had desired. In the meantime I, through indiscretion from the foreign ministry, found out that Mr. Hay would only offer Denmark $3,500,000, and that it was therefore important as early as possible to get the sum placed at $4,000,000. Tn the last part of January I wrote to Etatsraad Hansen: "Since my last letter nothing official has taken place, but I have accomplished nmch underhand work. I have ))een at a couple of secret meetings in Congress, where the plan for future developments was agreed upon. A pair of the leading Senators and some members of the House were present, and the general opinion was that the acquirement of the West Indian Islands would not meet any serious opposition. It Avas the first intention that some Senators should privately suggest to the President that he should let Secretary Ha}^ apply to the Danish minister here and officially ask if Denmark avouIcI sell. The President, on the other hand, desired for political reasons that the affair should not come from the Administration to Congress, but the reverse. For that reason there is now being prepared a big speech, which on next Wednesday or Thursday is to be delivered by a member of Congress, Mr. Gardner, on which occasion the House will express its wish about buying the Danish islands for $4,000,000. That sum has been decided upon and, if the Government of Denmark insists upon it, will be appropriated. It is not impossible that Hay will attempt to screw down the price, ])ut the $4,000,000 can be considered sure. I have sent you the following telegram: "Four million dollars guaranteed," because I could not know how quickly requests would be made, and therefore you should know what sum you ought to insist upon. All appears, therefore, in a most hopeful manner, and if no personal interests intervene in the affair it w4ll go off' easily enough. In the meantime 1 am somewhat afraid of Mr. Rogers and Mr. Gron. I have even reasons to believe that the gentlemen have inten- tions of injuring me in Copenhagen, and especiall}^ to try to take the a flair out of my hands. 1 believe in the meantime that that will be impossible. Of course it is of little importance whether I personally l)ring the matter to a close or not, but if all the arrangements which I made for the furtherance of the matter are now overthrown would it possibly give occasion to a great scandal and litigation? I Avill, however, tr}^ to come to an understanding with Rogers and Gron, but they assimied, as already said, a very antagonistic position toward me. 1 hax e formerly on different occasions touched upon, and repeat here, 22 PURCHASE OF DANISH ISLANDS. that Rogers and Gron tried to persuade the committee to take the authority from me. The repl}^ was: "Impossible; matter officially in Christmas's hands." In Congress all seemed to go after desire, and on January 30 I was able to telegraph Etatsraad Hansen, "To-morrow the House will vote $4,000,000 for buying the islands." In the meantime, however, my friends in Congress changed the pio- gramme somewhat. Instead of the proposed great speech of Mr. Gardner, and the subsequent vote of the House, there was in the House brought forward a bill, the so-called Gardner bill of February 1. I telegraphed to Etatsraad Hansen February 2, 1900 — Rc'sume Gai-dner bill yesterday: "Z?e it enacted by the House and Senate of Congress assembled, That State Department is authorized to expend the sum not exceeding four millions in acquiring West Indian Islands, and that this act take effect immediately." As regards the significance of that bill, I have expressed myself in my report to the prime minister of the 5th and 2d. By this I have the honor to inform your excellency that all touching the West Indian Islands appears as promising as possible. I had the honor to forAvard to your excellency a copy of the Gardner bill after previously sending telegraphic resume of same to Etatsraad Hansen, This bill will pos- sibly not bring the affair to a direct conclusion, but it has established the price as $4,000,000, and that was its special mission, as Mr. flohn Ha}'^ had attempted to acquire the islands for three to three and a halt millions. All has now lieen prepared as well as it has lieen possible for me to do. The right people are interested in the affair and 1 have good reason to believe that negotiations will proceed rapidly in the near future if from Denmark's side no opposition arises. As 1 have previously permitted myself to express, Gardner's bill will not come to play a decisive part, since the Senate is the place where treaties are ratitied. The Senate Committee on Foreign Affairs, whose chairman is Senator Davis, will report the affair favorably and then it will immediately be sanctioned, but since it is the House which appropri- ates the money it is also of importance that this is considered. It will be seen from the above that I do not give too much impor- tance to the bill. My efforts have been in the direction of supporting the Danish prime minister in his attempt to get the price for the island set to $4,000,000, and to that end has the Gardner bill been of service. It was now my hope that the bill should be put through in the course of a few days, but that did not happen. There were now in Congress (as Mr. Lodge expresses it) "evil spirits at work," namely, Rogers and his friends. Senator Lodge, who is the most respected member of the Senate, and who, of all the political persons I have met in America, is the only one that can not be bribed, was my best assistant. It was he who discovered that Rogers was at work, agitating among his 26 Senators, whose votes he thought to be able to control. Mr. Lodge advised me to seek Mr. Hay,, and to inform him of all regarding my antagonistic position to Rogers and Gron. I had at that time offered Gron half of the commission, which sum he refused. Hence I felt that I had done all in my power to win him and friends, for if Gron had received the offered sum I would have nothing for myself; not even enough to cover my own debt. PURCHASE OF DANISH ISLANDS. 23 I was therefore so angry with Rogers and Gron that I decided to take no consideration whatever of them, and to follow the advice of Mr. Lodge. 1 worked out a statcinont, took all my papers, letters, and telegrams, and announced myself to Mr. Hay. Mr. Ihiy became confused, anno5^ed, and angry when 1 had told him what was in my mind. He was confused, because I, a foreigner, had secured such an unfortunate impression of the political conditions in Washington; annoyed because Mr. Lodge had sent me up into the foreign ministry, and angry, or, more correctly, enraged, against Rogers and ids people. To me he said: "Well, it may be tliat these 'trust ])e()))le' are very powerful, but I will show them that they do not yet rule the Adminis- tration of this country or its Congress." Now I felt no more of Gron's machinations, not even through articles in the pi'css. I could now work in peace for the sale of the islands, and use ni}' best efforts. I had one article after another pul)lished in different papers describ- ing the islands, and often illustrated with photographic drafts that I had with me. I point in that connection to my scrapbook, which con- tains several hiuidred clippings. I made the acquaintance of many members of Congress, and had now one, now another, either to dine or to supper at Hotel Raleigh, where I lived. It cost me much money, because Washington is one of the most expensive cities in the world — ■ especially the dinners in the hotels were expensive. It was not alone the members of Congress, but their private secretaries that I had to invite. I had as my especial assistants two men, C. W. Knox, who was an intimate friend of Senator Mark Hanna, and Richard P. Evans, a law3"er in Washington, who represented Mr. Gardner and his friends in tlie House. These took an active part in the personal agitation, since they talked with a large number of members of Congress and agitated for the purchase of the islands. I had contracts with them both, according to which they, and through them certain members of Congress, should have a share of ' the commission if the sale took place. But the two gentlemen's agita- tion expenses, etc., bills in restaurants and hotels I had to pay. In the middle of Januar}^ I had to procure more money from Den- mark, since the amount I had for my journey was entirely exhausted, and, again, before my departure for America I was compelled to have it replenished. In the meantime work proceeded rapidly in Washington, and 1 could count that the matter would have the majority both in the Senate and the House (also between the Democrats was a sentiment created for the acquirement of the islands). I was in the happiest frame of mind, since I believed that all the difficulties had at last been over- come, but just then began my very worst troubles. As already reported, Mr. i3run talked about my dismissal in such a manner that both Mr. Hay, Senator Lodge, and others came to know it. In different ways I noticed that cordialit}^ by which I had been received cooled. My two assistants, Evans and Knox, referred more frequently to the reports that were circulated, and Mr. Knox even sought the minister and had from his own mouth confirmed the fright- ful news that I had been discharged and disgraced from the Danish navy. One day Senator Lodge, in his private room at the Senate, asked me how the matter stood, and when I last had an audience with Mr. Hay he asked me the same question. I could not deny the fact that I had 24 PURCHASE OF DANISH ISLANDS. been dismissed in disgrace, and my efforts to ameliorate the situation had no effect. I had become a suspicious person and blackened, and soon my stay in Washington had become impossible for myself as well as for my wife. Both Mr. Hay and Senator Lodge advised me to take my departure, and I decided to do that and to live in New York, from where I could easily run over to Washington when my presence should be necessary. But a much worse danger threatened to bring me into the most painful situation. I had not yet secured the recognition of my bankers, I. & W. Seligman & Co., and I could no longer do without a guaranty for the sums of money I had been obliged to promise. My own finan- cial means were entirely exhausted; I was obliged to live as economic- ally as possible in New York; I could no longer offer money upon the Senators and Members of Congress, and was obliged to let Mr. Knox and Mr. Evans know that I was not able to pay their expenses. The two press associations, Abner McKinley and Brown, Evans, Knox, and others I had promised that their contracts should be guaranteed by the house of Seligman. To this the banking house had agreed as soon as it should in one way or other be recognized by the Danish Government. I had the prime minister's absolute promise of such a recognition. I had blind confidence in the promise, but it was not kept. Upon my presentation to the prime minister I received only this reply by telegram, which had no signature, but wliich 1 con- clude was from the minister. It stated: " Letter received, but incom- prehensible. Can not give you or S. any authority." I then studied out that possibly the prime minister would agree to permit a bank guaranty; and since Privatbanken, in Copenhagen, had requested me to ask Seligmans to send them the eventual amount of sale (in which connection Seligmans had written Privatbanken), it appeared to me reasonable that the minister would rather let Privat- banken take the affair in hand and give Seligmans the desired bank guaranty that the American banking house was accepted by the Dan- * ish Government. 1 wrote, then, February 25, 1900: Herr Direktor Larsen, Privatbanken, Copenhagen: I have, after agreement with you before my departure from Copenhagen, informed I. & W. Seligman & Co., New York City, who have been accei>ted by the minister of finance as financiers in the event of the sale of the Danish West Indian Islands to the United States, that Pri- vatbanken, from the Danish side, should handle the affair; and Seligmans have with pleasure agreed to that arrangement. Seligmans, in that connection, will, by the next post, send you a letter in which will be referred to the strange fact that the firm has not yet received the official con- firmation of the recognition from the minister of finance. I will therefore request from you, after conversation with the minister, to assure Seligmans that they have actually been accepted, in case a sale takes place. Seligmans at the same time wrote Privatbanken in order to get a recognition established, and received late in March reply from Direk- tor Larsen. In that letter the director gave the information that he, after conference with the minister, had received the impression that his excellency regarded your firm as bankers for the American Gov- ernment, but by no means as acting for the Danish Government. Seligmans gave me that letter, and I believe that from that moment they looked upon me with suspicion. Was it possible also to explain that I to that degree had been disavowed by the Danish prime minister? In the month of January my whole efforts had been based upon the PURCHASE OF DANISH ISLANDS. 25 clear understanding between myself and the prime minister that Selig- mans should be the recognized bankers of the Danish Government in the sale, and in March the minister declared to the Direktor of Privat- banken that Seligmans had actually nothing to do with the Danish Government. But even a greater surprise awaited -me. In order to get that for me so extremely important recognition of Scligmans brought about, 1 advised the counsel to the banking house to write to my adviser, the lawyer of the supreme court, Mr. Salomon, to whom I myself wrote on February 25, 1900. As I at one time explained to you, I had already before my return home in December disposed of a part of the 10 per cent, and had accepted the bankers, J. & W. Seligman & ('o., all upon the suppo- sition that the minister of finance approved both of my future admin- istration of the 10 per cent and of the bankers. As you know, the minister agreed to my proposition. As you will understand, I liave had great difficulty in giving actual guaranty for the commission 1 have promised. I myself have only the minister's word to depend on. That is naturally enough for me, but the Americans refused to accept that as good enough. Here I have been obliged to place my own person and my personal property as security, and, besides, Seligmans have, who have absolute confidence in me, placed their highly respected name as guaranty for my administration of the 10 per cent. The firm now think, as is natural, that the moment has come, under one form or another, to receive confirmation for the fact that the Danish Government actually will use it to finance an eventual sale of the islands. I have, therefore, advised the firm's legal counsel to put himself in touch with you with a view of securing a recognition. I take it for granted that the minister can not as yet give any official authority, and he has in that matter sent me a telegram, but the affair might be arranged in the same manner as when the minister gave me expense mone}'^, viz, through Privatbanken. Direktor Larsen requested me to see that Privatbanken got the business in hand, and I arrranged this with Seligmans. The sale of the islands will therefore be financed by J. & W. Seligman & Co. on this side of the Atlantic and by Privatl^anken on the other. In that connection, therefore, it would seem to me that Privatbanken could give the guaranty to Seligmans that they could consider themselves the Danish Government's bankers in the affair. It is very difficult with this "hide-and-seek" anxiety on the part of the minister. I must have the relation established before it is too late. Seligmans ought to have the guaranty that they run no risks in giving guaranties in connection with the 10 per cent, or it will end in their considering me a humbug, in whom they could have no confidence. Supreme Court Lawyer Salomon, on receipt of his letter, took steps to see the prime minister on my account. As regards the result of the attempt, I received the following telegram: March 13, 1900. Schlichtkrulls, principal, writes indignantly. He won't speak anybody directly or indirectly representing you. Give me explanation. Salomon. My answer back on the same day was: Only explanation, principal crazy. H. Rep. 2749 3 Christmas. 26 PUECHASE OF DANISH ISLANDS. I knew nothing else to answer, I was not only paralyzed from sur- prise, but entirely confounded by Mr. Salomon's telegram. I had to believe that there was either a mystery or mistalce. My brain could not contain the idea that the prime minister who three months ago secured me money for the journey, gave me instructions, had acceded to all my plans and propositions, had shown me the confidence of allowing me to administer as large a sum of money as a tenth of the sum to be paid for the Danish Islands, who, on my departure, had pressed my hand in a most cordial manner and wished me "God- speed" — that he now indignantly refused to talk to anyone who, directly or indirectly, represented me. And I knew that I had done nothing to which he could take excep- tion. I had offered the best of my ability for the affair. I had talked with several hundred persons, written innumerable articles in the paper, conferred, convinced, bribed, given dinners and suppers, used all my money, borrowed more, and again used it. But nevertheless this fact was sure : The prime minister would have nothing to do with anyone who represented Captain Christmas. When I later talked with Supreme Court Lawyer Salomon about the strange situation, he said about the following : When I had read the minister's letter I was obliged to believe that you had com- mitted one crime or another over there, or at least a scandal. I know not what to think. I had not done anything but to accomplish the work the minister had given me to do. The most remarkable is, however, that after my return, when I asked the prime minister wh}^ he had written such a letter, if he had anything to complain of regarding me, he answered "No." In the latter part of February I returned to New York. The affair stood well in Washington, and my only concern was that the Danish Government should sell the islands for less than $4,000,000. On the 19th of February I wrote Etatsraad Hansen : One of my assistants in "Washington, who has a position in the State Department, has informed me that a whole series of telegrams has passed between Mr. Hay ami the American minister in Copenhagen. It would seem, therefore, that an attemi^t has been made to reach an understanding as to the sum. I hope Denmark will not sell under $4,000,000, but rather would wait over the summer. The American Navy can not do without the harbor, and has demanded it of the Administration. It is quite possible that by waiting until the fall the price can be advanced a million. Senator Lodge thinks soon to have the affair ready in the Senate. It is there that 1 have found the greatest difficulty, since Mr. Rogers, Flindt, etc., had worked ener- getically to prevent the sale. The opposition, however, now seemed to be overcome, but I had an exceedingly difficult task and am most likely not through with it yet. As long as I was personally in Washington my different assistants waited with some patience on the promised guaranties for the contracts I had made with them and worked energetically, but when I had gone back to New York began to express them- selves impatiently, and I was requested again and again to let them know if the Gov- ernment had yet or would soon recognize Seligmans. They did not wish to work any longer upon the uncertainties. They were not accustomed to give credit in political matters, etc. In short, my helpers were beginning to go on a strike. 1 did not know what in the world to do, and Seligmans themselve began to have suspicion on account of that strange delay by the Danish minister of finance to recognize the firm, which had already shown considerable energy and done much work for the Danish Government. It was at that time, while I, as I have shown above, made such great efforts to get that recognition established with the lamentable result, I became at last so nervous and helpless in my position on account of PURCHASE OF DANISH ISLANDS. 27 the many complaints from Washington, and for fear that the whole affair should go to pio^'cs for lack of guaranties, that 1, in my distress, accepted help from a quarter where I greatly regretted to look for it. And here begins the most ])ainful part of my experience in America. I made Advocate Fischer-llansen my legal adviser and acc(>pted his help. I have ])een very sti'ongly criticised for that, but 1 tiiink the criticism should fall upon those who broke their agreement with me and compelled me to act as I did. Carl Fischer- Hansen, who is a Dane by birth, became a lawver in New York at a very early age, where he has a large law practice. He is a man of abilit}^, but suffers from the most pitiable vanity and desire to make himself observed. 1 consider him to be inconsiderate in the choice of means and quite imreliahle. He is married into a very wealthy family, through whom he has good connections, especially in the White House. On my first visit in New York T made Fischer- Hansen's acquaint- ance, and it was he who presented me to Messrs. Abner McKinley and Brown. As soon as he had heard of the island ({uestion he wished absolutely to play a part, but after he had committed a number of indiscretions 1 withdrew as much as possible from him. Through Mr. Abner McKinley, however, 1 stood always in a certain relation to him, and did not dare to break off' for fear that he should become my enemy. By and by, as the difficulties increased for me regarding getting my guarantor recognized, Mr. Fischer-Hansen l)ecame more and more generous in his offers, and the other side, Abner McKinley, pressed me •to accept him. About the last of February I was verj^ badly situated. I could no longer pay Evans and Knox cash. It was still necessary to work with the press, which cost much money. I wished to secure a large model of St. Thomas, which cost several hundred dollars, and should be exhibited in Washington for the purpose of interesting the members of Congress in the islands. Seligmans withdraw more and more, and my people in Washington threatened to lay down the work if I could procure no guaranties. Then came Fischer-Hansen to me one forenoon at the Hotel Manhat- tan, and offered his and his father-in-law's guaranty for the sums I had promised, until Seligmans should be recognized. He promised to pay for a model of St. Thomas referred to and also to furnish the running expenses in Washington and to the press. Whatever reluctance I might have had, I did not dare, difficult position, to refuse the offer. The only demands Fischer-Hansen made in return were that I to the Danish prime minister should acknowledge him as my legal counsel, to report to the minister his offer, and to promise to work to the end that he might receive a decoration, which was the aim of his ambition. Fischer-Hansen guaranteed, as promised, several contracts, and in return 1 reported to the prime minister that I had accepted Fischer- Hansen as my legal counsel in New York, and praised him, as was natural, for his generous offer, I refer in that relation to my report to the prime minister dated February 26, 1900. In the meantime a great struggle had sprung up in Congress which lasted for a long time. The fight was about the Porto Rico tariff, and the result of the contest played an important part, as the Danish West Lidian Islands' future might fare in the same way as Porto Rico. That island had up to the present been kept outside of the American tariff limit, and its economical situation was very bad. The President 28 PUEOHASE OF DANISH ISLANDS. desired to give Porto Rico free trade, the Democratic party also, but the large sugar trust company opposed it as harmful to the interests of the company. After a long time an agreement was arrived at upon a basis of 16 per^ cent tarijff, which compromise satisfied none of the parties. I had in the beginning of March a meeting with Mr. Bryan, the Democratic party's candidate to the Presidency. Mr. Br^^an had made a number of political speeches in the different large cities in America, and came also to Philadelphia. He agitated especially against McKin- ley's imperialistic policy, and I was afraid that he might oppose the purchase of the Danish West Indies. Mr, C. W. Knox obtained for me a meeting with Mr. Brj^an in a train between Baltimore and Phila- delphia. I had a ten minutes' conversation with him, and secured his assurance that he would not oppose the sale, Mr. Bryan considered the purchase of the islands as a military strategic necessity which had nothing whatever to do with polities. That evening, in a speech before the Philadelphia Democratic Club, Mr. Bryan confirmed his position as regards that question. He said he would always fight against imperialism and militarism, which he considered as synonymous; and said he could always sympathize with a peaceful extension, and especially a rounding ofl' of the Republic within our own waters, as that was specially to protect our own coasts and islands. Together with the discussions al)out the Porto Rico tar- iff' was the Nicaragua Canal treaty. Mr. Hay and the English ambas- sador, Pauucefote, had signed the treaty according to which the pro- posed Nicaragua Canal could not be fortified. That angered a large portion of the Americans, and there was a strong sentiment against Mr, Hay. I mention this question because, like the Porto Rico tariff, it touched the fate of the Danish Islands. While the Democrats demanded that the Nicaragua Canal should be fortified, the Republicans, with Sena- tor Lodge in the lead, insisted that that was not necessary, since the canal could be protected from the islands lying about, by establishing strong naval stations in the right places. Not one but many times came the advocates of the treaty back to this point, and showed how the canal could be protected on the west from some islands in the Pacific; on the east from the Danish Islands. I have in my scrapbook numerous arti- cles from the papers touching on this question, and it is quite remark- able to see how the American politicians already at that time looked upon the Danish Islands as the best place to establish American forti- fications. It would of course have been of great value to me to have been kept informed of what took place in Denmark regarding the island affair, but I never heard a word beyond a few scattered newspaper articles. In the beginning of March, however, I received a letter from Mr. Hagemann, and by reading that I first began to realize that opposition to the sale might be found in Denmark. I knew, however, that the Danish Government had formall}^ agreed to a transfer to the United States Government, and since I had received no command to stop my Avork I simply continued. I have never known what during that time took place in Denmark regarding the sale beyond what a few Congressmen told me. It is sure that the Danish Government would not have found any difficulty in putting the affair through, since in America, at least, no material opposition would have appeared. In Congress there was PURCHASE OF BANISH ISJ.ANDS. 29 a majority for obtaining the islands, Tho. Administration desired that extension of tho United States. The military department demanded outrij4-ht the islands as necessary for the country's security, and all the papers of any importance over the whole Union had (^\j)ress(Hl them- selves as favoring the atl'air. The only dangerous opponents, viz, Rogers and his friends, had ))(>en brought to silence. 1 dare here express, without in any way running the risk of being criticised for self-praise, that all of the favorable situation for the atfair, which, by the way, still exists, is the direct result of my own work, and it is far from that this work had been made easy for me, since, on the contrary, great oppositions had been placed in the way by the syndicate, by the Danish minister, yes, and not the least, by the Danish prime minister. It is therefore not without a feeling of bitterness that I, on the 13th of March, wrote the prime minister: With this I could terminate my communication, but I consider it my duty to add some remarks which will assist in giving your excellency a fair comprehension as to how my position has been over here since 1 last left Denmark. Your excellency did me the honor at one of our meetings to inform me that you had written a lengthy letter to the Danish minister in Washington; informed him as to the progress of the affair, and as to my early return to America. I had absolute reason to believe that tliat communication from your excellency should serve me as a sort of an official cre- dential, so that I not only would be able to count upon the assistance of the minister in the interest of the affair, but should also be in a position to give to my banker in New York a semiofficial confirmation that he had been accepted by the Danish Gov- ermnent, since such a confirmation should have taken place througli a personal meet- ing between the nunister and the chief of the house of I. & W. 8eligman & Co. As I have previously had the honor to inform your excellency, Mr. Brun would scarcely admit that he had received the letter referred to. He would only look upon me as a chance tourist. Nor has it in any way assisted me that Mr. Brun's concep- tion of me and my position was transjilanted to the foreign minister in Washington, where previously 1 have been treated with much regard and confidence. Mr. Brun's treatment of me has caused me an endless amount of worry and difficulty, which I shall not further elaliorate upon. It must be permitted, with all due consideration, that I express my surprise that I have thus been obliged without avail to seek assist- aTice in this important affair, which both your excellency and a large portion of the Danish people desire to have terminated as quickly as possible. It has now for nearly three years been clear both to your excellency and to the committee of the highest Danish patriots, which was formed for the inirpose of accomplishing the sale of the Danish AV'est Indian Islands, that such a political action could not be put through in America without paying a large sum of money. 1 can, after my experience, absolutely confirm that conception as being right. Since no official representative of the Danish Government could undertake to adinin- ister the amount of money necessary for accomplishing the sale, a private jierson had to do it, and it became my task to accomplish that unpleasant and by no means easy task; but from difficult it became almost impossible for me, since I had neitlier cash money nor guaranties to offer the persons whom it was necessary to interest in the affair. I had, therefore, surely depended that I should have been able to use a bank( r as guarantor for the sums I had to offer in case the affair was accomplished, but in that regard I had not been backed up from home. That communication I was obliged to dictate to my wife while lying in bed ill from nervousnesss and provocation over the treatment which I had received from the prime minister. From private letters and newspaper articles from Denmark, and espe- cially after receiving the supreme court law3'^er Salomon's telegram, I understood that a sentiment against the sale of the islands was spring- ing up in Denmark; also that Horring's ministry would soon be dis- solved. I decided, therefore, to return home as soon as Privatbanken's reply to Seligman's should arrive, because upon that I based my last hope that the prime minister would keep his promise to recognize the banker. 30 PURCHASE OF BANISH ISLANDS. The reply arrived, as already stated, early in April, and with tliat my last hope was banished. The Danish Rigsdag would soon close, and in the American Congress the coming Presidential campaign had already begun to absorb all interest. Hence it was easily recognizable that the sale of the islands could not be terminated before the next Congress — that is, after the ttth of December, 1900. I liad already in several letters and reports, for example, in my letter to Etatsraad G. Hansen, on the 19th of February^ — expressed this eventuality, and 1 had even advised sooner to wait the summer over, as thereby it might be possible to increase the sum $1,000,000. Before I left America, however, it was of the highest importance that I should come to a dehnite understanding with Rogers and Gron, as I did not dare to leave the country with those two as enemies. I attempted, therefore, again to get Gron to agree to a compromise, but that was very difficult. He and Rogers evidently did not think there was any possibility that the sale of the islands would take place before the following session, and it was then their intention to manage with me out, so that they themselves, assisted by their friends in Copenhagen, could arrange the latter in accordance with their own interests. To that I was naturally opposed, since I had not only done a great and important work in the matter and sacrificed a large sum of money in trying to accomplish it, but 1 had also to consider other persons who had rendered me much assistance both in Congress and in the press, and those persons would without doubt, if they saw their demands neglected and their interests threatened, work just as strongl}^ against the affair as they had before for it. For al)out a fortnight 1 had worked in New York to the end of arriv- ing at a compromise, but I did not succeed. In the moiintime I was not able, from pecuniary reasons, to remain longer in New York. I was absolutely obliged to depart before I became so reduced that I should not be a])le to pay my passage home for my wife and myself. An attempt to secure money from Denmark through Mr. Hagemann failed. I could therefore see no other means, in my difficult position, than to compel Gron to compromise. My feelings toward him and Rogers were not of the kindest, since they had done me all the harm they could and had not been select in their choice of weapons. Before I did anything I sought Mr. Gron and informed him of my decision. These transactions with Gron and Rogers had to come to an end, and if they would not willingly accept my offer, which, in generosit}^, was much greater than the two gentlemen could expect or demand, then I would in one of New York's largest papers make public their opposition to me in the island affair, their misuse of the press, etc. ; in short, scandalize them to such a degree as they for months had tried to scandalize me. My offer to Gron consisted in that he and Rogers during their present session of Congress should have half of the commission, but if the islands first were sold during the coming winter session they could have two-thirds and I one-third of the commission. The day after Gron sent to me a refusal of the offer. I then went to the editor in chief of the World, Colonel Van- bentheisen, and made him acquainted with my difficult situation. He understood immediately and offered to assist me. I gave Mr. Van- bentheisen a short account of the whole affair of my relations with Rogers and Gron, handed over to him a number of letters, telegrams. Purchase of danirii islands. 31 and other documents, and made him promise that he would publish nothing without my permission. Advocate Fischer-Hansen was wit- ness to our conversation, which he, by the way, hinisell' had Ijroug-ht a})Out, since he personally knew Colonel Vanl)entheisen. My intention was not to have anything made public, since that would only produce scandal, without any way furthering the afi'air. I only wished to frighten Gron, and especially Rogers. I must here explain that no paper can make public an article giving names of persons without first presenting such an article's head points and assertions. In such a case the editor sends some one to the person and presents him a resume of the article's contents, and allows the person to protest against it if he wishes. Those press conditions had been explained to me bj^ Fischer-Hansen, and upon that 1 had built my hopes of being able to force Rogers to give in when he should see that there was danger that I would actuall}^ follow up my threats. Besides, I must explain that the World is especially feared by the large trust companies, which the paper fights with all its power as detrimental to the middle class. Mr. Rogers is, besides, the very blackest sheep in all the trusts, since he is the most inconsiderate oper- ator with the enormous fortune of the Standard Oil Compan3^ Mr. Vanbentheisen kept his promise, sent a reporter to Mr. Rogers, and afterwards to Mr. Gron, and the result was the desired one. The da}' after Gron, in his own and Rogers's name, signed a contract with me, after which half of the sum should fall to him and Rogers if the islands were sold during the present session, two-thirds if the sale took place during the coming wnnter session. As soon as the contract Avas signed, Mr. Fischer-Hansen secured me b'ack all my papers, letters, etc., from Colonel V., who kept his word and never made public a line of what I had given him in confidence. That afi'air was therefore, in my opinion, out of the world when I returned to Denmark, but imfortunately there awaited me an after- play. Al)out three weeks after my departure the paper. New York Times, published a long article against Rogers in connection with his relation to the sale of the islands. A part of that article has been published in the Politikan, and 1 have answered it. It was not clear to me from where the article originated and Avho had inspired it, I had left no material behind. In the begin- ning I thought that it was from the foreign minister, to break a possi- ble opposition in the Senate to the island sale. The minister of war held warlike speeches, in which he demanded the islands. Now he is believed to understand better, but what it is all about he can not be blamed more than the man who has fallen as an ofi'er for thieves and ban- dits. Gron has here in this countrj^ blamed Fischer-Hansen as the author. Before I left Fischer-Hansen desired to be liberated from some of the obligations he had given as guarantor of my contracts, and I com- plied with his desire, so much the more as I had never wished to make use of his help. I was only compelled to do so by circumstances, because I set the afi'air over all personal wishes and considerations. Those persons and press associations who previously were my assistants are still. I have reduced the different sums of which I am now the only guarantor in such a way that I can now manage to get along with a third of the connnission promised me. That I did in order to be able to give the gentlemen, Rogers and Gron, the large amount— two-thirds of the 10 per cent commission — which they demanded. 32 PUECHASE OF DANISH ISLANDS. After my return to Denmark I applied to the chief of department, SchlichtkruU, and requested him to inquire of the prime minister when I could secure an audience. The minister asked me to call the day after, and I met. I had not seen the minister since my departure from Denmark in January, and it was in a bitter frame of mind that I again entered the minister's reception room in the ministry of finance. 1 had in the meantime worked to such a degree that my nerves were almost ruined and my means entirely exhausted. I had not saved myself, but thrown my whole energy into the affair, which the minister had shown such a lively interest for. In return the minister had done nothing for me. He had broken his promises and agreements, even to such a degree that he had proven untrue to me, and had made it appear that I had made myself impossible for the minister's confidence. (See prime minister's letter to Salomon.) The audience terminated for both parties in a very unpleasant man- ner, and my bitterness and anger ran awa}'^ with me, and I reproached the minister for his failure to keep his word and remain loyal to me. The minister admitted that perhaps in his letter to Salomon he had expressed himself too strongly. When I asked him if he had had any- thing to reproach me for, he answered no. 1 permitted myself to make it clear to him how he, by refusing to back me up, had made it possible for Mr. Brun to drive me out of Washington; how I had there only worked according to the agreement between 'myself and the minister, but had been left in the lurch, had been made suspicious, and mocked; how the minister had been the fault of making my best friends in America, such as Seligmans and Senator Lodge, look upon me with suspicion; how I had been jeered at in Denmark, and called various names, etc., without the minister having done anything toward assisting me; on the contrary, he had betrayed me and disavowed me each time he found an opportunity. I asked the minister to think it all over, and requested urgently that he should secure for me satisfaction. His excellency had only this reply — that it was not in his power to give me any satisfaction; that he only had a couple more days to remain minister in. CONCLUSION. I have above given a detailed and accurate account of my work in the island affair. How that evolves itself in the future I do not know, but I permit myself here to establish the absolutely undeniable fact that it is I and my personal work that is the cause of the Americans' interest in the islands and their desire to buy them. [Here a page is lost.] Justice and to the enlightenment of all the relations upon which 1 base this desire is this: That I have permitted myself to trouble the high Government with this presentation of my work in the affair in question. With the highest obedience, W. Cheistmas Dieckinck Holmfeldt. Faeungaaed, October 1^ 1900. Upon motion of Mr. Cousins, the committee decided that hearings should be public. The committee then adjourned until Tuesday, AprU 1, at 10 o'clock a. m. PUEOHASE OF DANISH ISLANDS. 33 Select Committee on Purchase of Danish Islands, ILmse of R(^i'eily a week after that. Q. Go on, Mr. Gron, in your own Avay and tell us the history of this document and your connection with it. — A. When I told the gen- tlemen that I would have nothing whatever to do with opposing the transfer of the D;;nish Islands to the United States, I gave one reason, the fact that I had favored their sale, and therefore if I should turn around I could do no good, and would embarrass myself. In reply to that they brought the report and read it to me, and then they said to me, "Mr. Gron, j^ou are a citizen of the United States, are 3^ou not?" I said, "Yes." They said, "And you are a native Dane?" I said, "Yes." Then they said, "We put the responsibility on you, both as a citizen of the United States and as a Dane, if you now refuse after you have heard this report read, after you have heard how a man who was recognized both by the Secretary of State of the United States and by the Danish prime minister speaks of the Americans, and how he compromises Denmark, if 3'ou then refuse to act, you, as a citizen of the United States and an American, will have to take the responsibility." I told them that I would consider the matter and would give an answer that afternoon as to what I would do. They came to me that afternoon and I told them that if 1 w^as to act it would be absolutely necessary for me to make a public declaration in Denmark, that I con- sidered myself free from all of those with whom I had formerly stood in touch and in the future should consider m3^self at liberty to act according to the dictation of my own judgment. On the 9th da}' of February last I therefore came out in the largest conservative paper, the lai-gest liberal paper, the Politiken and the Nationaltidende. Mr. McC'all. Those papers are published in Copenhagen? A. Yes, sir; and here are copies of those papers [exhibiting]. By the Chairman: Q. Can you furnish the committee with translations of those arti- cles? — A. I can as soon as it is possible to have them translated. Q. So we can get the articles into the record? — A. Yes, sir. In the Nationaltidente it is rather a sensational declaration. I simpl}' said: Since I have just become acquainted with the report regarding the negotiationa in connection with the sale of the Danish West Indian Islands, dated the 1st of October, 36 PURCHASE OF DANISH ISLANDS. 1900, which Mr. W. Christmas Dirchinck Hohnfeldt sent to the Danish Government, I desire to make the following statement: Since I consider such treatment of an important affair as is described in the above- mentioned document to be in the highest degree injurious to Denmark, I must from this time on stand free and independent of all persons with whom I have heretofore been in touch in this matter, and to take whatever position my judgment may elect. Neils Gron. Copenhagen, February 9, 1902. Mr. Richardson, Now please translate the other one. A. It is the same declaration. By the Chairman: Q. Substantially the same? — A. Yes, sir. I then had a meeting again with some of those men and they asked me, " What shall we do ^ It is not possible that we as Danes can afford that the Americans should think that Denmark wishes to make use of such neootiations." They were all clear and satisfied on that point, and that we could not separate this report from the negotiations, because they said Christmas came here to Copenhagen with an American diplomat, and he claimed before them that he was recognized by the Secretary of State here, and that, in fact, when the minister refused him, to go into the conference with Mr. White, Christmas made every effort to get in on the claim that he was representing the Secretary" of State. Q. Who was it that told you that? — A. That was what we were discussing, and we were satisfied on that point. Q. But who gave you that information ? — A. The information that Christmas was not allowed to go into the foreign ministry with Mr. White, that Mr. Ravn refused him to go in and closed the door and left him standing out there when he took Mr. White in, was given to me by Gustav Hansen, a member of the upper house, from one of our most respected families, and the chairman of the committee to which Christmas refers so often in his report. When Mr. Christmas was refused at that conference he immediately went to Gustav Hansen in a rage and demanded that he had a right to be in that conference. Han- sen advised him to be quiet and to do nothing. Q. Please state if there was any reason given in this communication to you for that refusal? — A. There was no reason given. Q. Do you know whether there was any public reason? — A. I think there was no reason given. Q. Do you know of any reason? — A. I can know from that report; if I read the report, I should know. Q. Just state, if you know, how you know. — A. 1 have read Mr. Christmas's report in which it is stated that he was discharged with disgrace from the Danish navy. Q. That is where you get this information? — A. I have also been informed by many others that Christmas has been discharged from the Danish navy by court-martial. It was in that meeting that I made the declaration which I have stated here. In that meeting it was dis- cussed, and it was apparent to us that Mr. Christmas, the author of this report, had come to Denmark for the purpose of corrupting an American diplomat, for the purpose of taking the first official step in the negotiation of this present pending treaty; that after that he had been recognized by the Danish prime minister and sent back here to assist in the negotiations on this side. Therefore it was evident that PDRCHASE OF DANISH ISLANDS. 37 he had been recognized by the Secretary of State of America and the prime minister in Denmark, who had recommended this report even though all of us were satistied it was untrue. Even if we had been satisSed we had to recognize it was a Y)art of the negotiations, and they did not wish that Denmark should stand in that po.sition or that Ameri- cans should accept the negotiations, and they asked me if I would come over here to Washington and phice those facts before the I'eprescnta- tives of the American people, so that if they continued — this was before the ratitication of the treaty— to ratif}^ the treaty or to make the appropriation, they would then do so with a knowledge of the facts and we could feel to a degree that we were not responsible, and the Americans would have to take the responsibility themselves. Q. You left Denmark with the report in 3'our possession at what date?^ — A. On the 15th of Fel)ruary. Q. And 3^ou arrived in this country when? — A. On the 26th of February. Q. You can state whether there were publications in the papers in Denmark and what they were. — A. Under the claim that this is a true copy of Mr. Christmas's report, I would like to state that there are here [exhibiting] extracts from Danish papers which contain large portions of the report itself, and if there was a comparison made between these statements and the document it would be seen that it is the same document. That it is the right document and has been published there, we have an article written bj^ Mr. Christmas himself in the Politiken on the 11th day of Februar}^ Q. Signed by him?— A. Yes, sir; where he admits that it is the same document submitted to the Danish Government, which had l)een either stolen or given out by somebody, and that it is now being freely used for the purpose of making a scandal. I saw in the New York Herald of last Saturday or Sunda}^ morning an interview with Mr, Christmas in Copenhagen, in which he said the same thing — that it is his report which is being used. Q. You might prepare translations of the articles appearing in those papers that 3^ou have referred to at your leisure. You have seen the Congressional Record of last Thursda}', have you? — A. Yes, sir. Q. Containing translations of alleged articles in the Copenhagen papers? — A. Yes, sir. Q. And those were furnished to Mr. Richardson by you? — A. I have only glanced over the Record, but I heard Mr. Richardson read- ing from the gallery, and all the articles he read upon the floor of the House were furnished by me and translated by me. Q. So the articles that appeared in the Record last Thursday are the newspaper articles to which you refer now? — A. Yes, sir; the same that Mr. Richardson read on the floor. Q. Coming to this country on the 26th of Februar}^ as I understand, to whom did you first show Christmas's report? — A. After Mr. Christ- mas's report was translated the first one to whom I showed it — I came to AYashington and had an interview with General Grosvenor. Q. You did not show the report to any person in New York ? — A. I had it translated there in the office of a friend, and when I had it trans- lated it was naturally shown. Q. Did you show the report to any newspaper in New Y^'ork? — A. No, sir. 38 PURCHASE OF DAWISH ISLANDS. Q. You did not offer it for sale to any newspaper? — A. No, sir; 1 did not offer it for sale. Q. Did you not submit it to the New York World?— A. No; I did not submit it to the New York World. Q. Or to any other New York paper? — A. No; nor to any other New York paper. Q. By "paper" of course I mean the editor or reporter or some one connected with the j^ublication of the paper? — A. No; 1 did not sub- mit it to anyone connected with the publication of the paper. Q. Did you make the translation yourself ? — A. I did not care to have it go into anybody else's hands, and therefore I was compelled to sit down and translate every word myself. Q. You did not give a copy of it to any person in New York? — A. No, sir; there was a person who read a part of it, Mr. Christmas's lawyer; he read a part of the report, but the report was never out of my hands. Mr. KicHAEDSON. What is his name? A. Mr. Carl Fischer-Hansen. By the Chairman: Q. I understood you to say a little while ago that you had it trans- lated in New York, and therefore others had seen it Ijecause you had the translation made? — A. I can not use the typewriter, and therefore I was compelled to sit down and dictate it. Q. That is what you meant by having it translated? — A. Yes, sir; that is what I meant. 1 sat down and dictated it in the office of a friend, who permitted me to use his private stenographer. Q. Then, if I understand you, the first outside party who saw the report was General G rosvenor, of Ohio ? — A. The first outside party. Perhaps here I should say I came here with a Danish copy. Is Mr. Carl Fischer-Hansen considered an outside party? Q. Any i^erson outside of yourself, I mean? — A. I have already made the' statement that Mr. Carl Fischer-Hansen, who was the lawyer of Mr. Christmas and who is mentioned here, and who I know looked over some parts of the document in my presence, but he did not have it himself outside of my presence, inasmuch as the document s])oke about him. 1 mentioned a little while ago that 1 had the copy trans- lated in a friend's office and used his private stenographer. That gentleman is Mr. H. H. Rogers. He was informed of the contents of this report, but it was not submitted to him. It was not submitted to any reporter; simply Mr. Carl Fischer-Hansen saw a part of it, and Mr. H. H. Rogers, to whose private stenographer 1 dictated it, saw it also. Q. Mr. Rogers saw it also? — A. Yes, sir. Q. And it was in his office that 3'ou did the translating? — A. Yes, sir; because I did not want to got it done outside. I was afraid to go to anyone in New York; there was no one whom I could trust. 1 told Mr. Rogers, and he said: ''You can use my private stenographer and sit right there in the office." 1 went there three afternoons and dic- tated it. Q. You have told us of everybody in New York who had any con- nection with it prior to your coming to Washington — Mr. Hansen, the stenographer, and Mr. Rogers? — A. Who saw anything of the copy. No one saw the copy after it was translated in New York; in fact, the only person who saw the copy after it was translated was Mr. Rogers. PURCHASE OF DANISH ISLANDS. 39 Q. Now, as to your interview with General Grosvenor; can you fix the date? — A. I came down here on the 3d of March, in response to a telej^rain from General Grosvenor to Mr. Ko^ers that lie would be pleased to meet me. Q. Had you any correspondence with General Grosvenor in advance of tliat telegram? — A. I wanted an introduction to the rioht man in Washington wliomleould place that before, so that it could be phiccd before the Administration and if possible remain a secret, so it should not have to be pul)lished. On that point I beg- to state that before I left Copenhagen the committee there said, ""Shall we have all this cabled to America," and I said, "'No." That is what they ])r()posed to do. I told them "No;" that would simply cause a sensation and do no good. The only thing that should he done was that it should be laid before the right people in Washington <|uietly and let them see what it is, and then possil)ly stop the tn^aty (juietly. Then I told them, "I will go over, and I will endeavor (jiiietly to get some of the iniiuential members to lay the matter before the committee of the House and before the State Department, and perhaps we Avill not have to have it published at all." Q. Did you have communications with General Grosvenor prior to that telegram ? — A. Thereupon I told my friend that I would like to meet a gentleman in Washington, and Mr. Rogers said if I cared, he would introduce me to General Grosvenor, if he would receive me. Mr. Rogers wrote and asked General Grosvenor if he would receive me, and General Grosvenor replied by telegram thfit he would be pleased to. Q. That was the 3d of March?— A. The 3d of March, and I came down in response to that telegram, Q. Just tell us about 3'our interview with General Grosvenor. — A. I met General Grosvenor at 7 o'clock in the evening. I arrived at 6. 20, coming down on the Congressional Limited. I laid the matter before him. The General seemed quite indignant over the matter and said he did not propose that the money should be appropriated on such neg'otiations as those and that he meantthat very night to la}" the matter before a Republican caucus meeting or some memljers of that caucus and some members of the Appropriations Committee; that if there was any proposition now to appropriate that money, that $5,000,000, it should be immediately stopped until they could thoroughly investi- gate it. Q. Had General Grosvenor read this report? — A. He had just read extracts, just glanced over it, taking my word for the most of it. The General told me that he was leaving Washington that night and would come back possibl}^ the latter part of the week — this was on a Monday evening- — and that he would then telegraph for me, as soon as he came back, to come to him again. I told the General that my address was the Waldorf-Astoria, and I went back to New York the following day. Q. Did you leave the report with him? — A. I took it back with me because at that time it was not translated. I went back and had it translated. I forgot the fact that I went down to see General Gros- venor merely with the Danish report and went back to New York to have it translated. Q. I understood you to say that the report was translated in Mr. Rogers's ofiice before you came to Washington ? — A. 1 went first with 40 PURCHASE OF DANISH ISLANDS. the report and asked Mr. Rogers if he would introduce me, and he wrote to General Grosvenor, and General Grosvenor replied by tele- gram, and I went to Washington. Q. What was the date when you had the report translated in Mr. Rogers's office? — A. Immediately after I came ])ack from Washington. I came back on the 4th — the 5th, 6th, and 7th of March 1 had the report translated. I received a telegram from General Grosvenor on Thurs- day evening, which Avould be the 6th. Q. I understand now that General Grosvenor saw this report before it was translated^ — A. Yes, sir. Q. And he read extracts of it? — A. I read extracts of it to him. Q. vSo General Grosvenor saw it before Mr. Rogers, or Mr. Hansen, or the typewriter in New York? — A. Mr. Hansen had read extracts; he did not read the whole report. I had the report in Mr. Rogers's office, but he coidd not read it. General Grosvenor telegraphed me on the 6th that he was back. Q. What is the date of General Grosvenor's first telegram to you? Mr. Richardson. Here is the first telegram: H. H. EoGERS, 26 Broadway, New York, N. Y.: Letter received. Will gladly meet gentleman. Will be here all day Monday in any event, and possibly balance of week; but possibly may have to begone from Monday night. Telegraph if he will come Monday. C. H. Grosvenor. The Witness. That telegram was delayed two days on account of the wires being down, and was not received until March 3. I immedi- ately took the first train from New York and came to Washington, and met General Grosvenor that evening at 7 o'clock. Here is the second telegram, in which he tells me that he has come back. Q. What is the date of that telegram ? Mr. Richardson. March 6. I am here and shall be glad to see you. Please telegraph me ahead of your com- ing. C. H. Grosvenor. The Witness. Here is the next telegram: I think if you are here Monday morning with papers all ready, that will be better. C. H. Grosvenor. In reply to that, I answered: Will come immediately if you think best; otherwise will prepare papers and be in Washington Monday morning. When I arrived here Monday morning I saw the General at 9.30 or 10 o'clock. He took all the papers with him to the House and asked me to come that night at 5 o'clock to see him. When I came that night I had to wait until 6 o'clock, and when he came in he said: "I am very soriy to keep you waiting, but I have been delayed. I have gone all through the papers. They are very interesting, and I wish you would come back to-morrow morning at 9 o'clock and we will see what can be done." I met him at 9 o'clock and he said: "The first thing, before we do anything, we must show these to the Secretaiy of State, and I will go to the Secretary of State, Mr. Hay, this morning, and you meet me at the House a little after 12 o'clock and I will tell you what has been done." I came up here and met the General at the House, and the General said that "the Secretaiy of State was bus}^ with a Senator ])y appointment, and therefore I could not see him; but rUECHASE OF DANISH ISLANDS. 41 we agreed to meet to-morrow morning at 9.30 o'clock, and so if you will come up to-morrow at 12 o'clock I will tell you the result of my interview with the Secretary of State." Q. That was on March 8 and 9?— A. I think Monday was the 10th. The hrst time the General called on the Secretary of State was the 11th, and the day that General Grosvenor had the conference with the Secretary of State was at 9.30 o'clock on the 12th, I met the General here at the House and he said: " I have seen the Secretary of State and we had a long conference on this matter, and the Secretary said he would send me a reply this afternoon as to what he would do." He told me to call the next morning at 9 o'clock. On the morning of March 13th at 9 o'clock General Grosvenor told me "the Secretary of State sent me a note stating that he was going to leave town, to be back next Saturday, and would then give me an answer." On the fol- lowing Monday morning, the 17th of March, General Grosvenor again went to the Secretary of State, and I subsequently met him here at the House and the General said: "The Secretary has given his reply. It is this: 'I have read the whole report, and 1 believe that it is a gen- uine copy.'" Q. This is what General Grosvenor reported to you? — A. Yes, sir; as to what the Secretary said — "I think that this is a genuine copy." He said the Secretary of State had told him that he had informed the Danish Government that there was nothing to be paid here; that nobody was to receive any money, and I think the point was suggested to the Secretary of State by General Grosvenor that the State Depart- ment might state to the Danish Government that they should not ratify the treaty, because then the whole thing would not have to become public. On that point the Secretary said that after consider- ation he was satisfied that even if the State Department should inform the Danish Government that they should not ratify the treaty it would not, in his opinion, prevent this document from becoming public. "If publications have already been made in Denmark, and if there are several copies here, it is, in my opinion, sure to become public here." Therefore he considered that the State Department could not take any action in the matter. He. declared that he had not in any way committed himself to Christmas or had anything to do with nego- tiating this treaty with Christmas, and that he was not responsible; that Denmark had made a mistake, and to let them look after that. That is the reply I received from General Grosvenor. Then I asked General Grosvenor what was to be done. I pointed out to the General several times that I thought it was very important that this matter should be so placed before the public that it could not become a party matter— so that neither the Democrats nor the Republicans could make an}^ party issue out of it — and therefore I pointed out the importance of having it placed at the same time in important Republican and important Democratic journals, because it was necessary, as I had been sent here by a group in Denmark to lay this fact before the people, and therefore if the Secretary of State refused in any way to act and insisted on this treaty, that he was not at fault and that Con- gressmen had nothing to do with it; the people in Denmark differed very largely from the people of the United States, and if they insisted in going on regardless of this report, then the next step would be to make, it public. Q. Did you know at that time, Mr. Gron, that the treaty bad already H. Rep. 2749 4 42 PUKCHASE OF DANISH ISLANDS. been ratified b}^ the Senate ? — A. 1 learned that the day I passed through London — on the 18th of February. Q. So you knew before you came to this country that the United States Senate had ratified the treaty for the purchase of the islands? — A. 1 knew that; but I was under the apprehension that it was not possible for the State Department to take over those islands upon the ratification of that treaty; I thought it was necessary to secure an appropriation from the House. Q. But you knew that the treaty had been ratified before you came to this country? — A. Yes, sir; I heard that in London the day before I sailed on the Oceanic. Q. Did General Grosvenor return the report to you? — A. Yes, sir. Then I prepared a statement for the Associated Press and I showed it to Genera] Grosvenor for his approval, and he said it was all right, that he thought it should go in. I said to General Grosvenor, " Will you allow me to send the Associated Press's representative to you as a guaranty, as they do not know me?" He said, "Yes; you send them to me and I will speak to them." I told Mr. Crane, the repre- sentative of the Washington branch, if he would tell the Associated Press's representative to put that in and to go to General Grosvenor for confirmation it would be all right. The Associated Press's rep- resentative went to General Grosvenor and Mr. Crane came back to me, very much surprised, and said, "General Grosvenor says he does not know anything about it." Then I tried to secure admittance into a good many papers, but it was refused. I went first to the Republi- can papers, and then the Democratic papers took it up, and then two days before it came out at all it was already anticipated, from where I do not know. The Star made a publication two days before. Q. Can you give us the names of the newspapers that you submitted it to and that declined to take it? — A. I submitted it to a good many. I can not say how many declined as I have not looked through their files. My impression is, many of them. I was informed by the Asso- ciated Press representative, or rather b}^ Mr. Crane, the day after I submitted it, that they could not use it. Q. Was the report that you submitted to the newspapers the entire report, or was it an extract from it — your statement simply? — A. Extracts; just statements. Q. Made by you? — A. Yes, sir. Q. You can not give us the names of the various newspapers you submitted it to? — A. I am coming to that. I was introduced to a number of journalists in the gallery. Q. Could you give us the names of the papers that published what you gave them? — A. The Philadelphia North American, and I saw a statement in the Washington Times, though I myself did not submit it to the Times, and I do not know who did. The Post had an erro- neous statement, and I went to Mr. Bone and told him he was wrong and he made it right the next day. Q. Did you request General Grosvenor to introduce this matter in the House? — A. I did not request General Grosvenor to introduce the matter in the House. In fact, when I saw the General at that time I did not know the decision. I learned after that that the State Department decided that they were not going to submit the matter to the House at all; they were not going to allow the House to have an expression of opinion regarding it; that as soon as Denmark rati- PUKCHASE OF DANISH ISLANDS. 43 fied the treaty they would simply take over the islands, and they would hold the islands for six or twelve months and then come and appeal to the House for the money. Q. You have not answered my question, whether you asked General Grosvenor to submit this matter to the House. — A. I did not ask General Grosvenor to submit it to the House. When I got this infor- mation then I understood if I was going to wait until this bill came up for appropriation to get these facts before the American people I would have to wait six or twelve months. Q. I understand you did not ask General Grosvenor because you learned certain things. From whom did you learn those things, about the State Department and all that sort of business? — A. I think the State Department gave out something for publication from which 1 could draw that inference. Q. Where did you find that publication? — A. I think, if I remem- ber aright, there was a publication in the Star, possiblv on the evening of the 18th or 19th. Q. To the effect you have stated? — A. Other people might not have drawn that conclusion from it; I think I drew that conclusion. Q. After you left General Grosvenor did you then submit this mat- ter to any other member of Congress? — A. Then I went and sent in my card to Mr. Richardson, the leader of the opposition. Q. On what date was that? — A. That was on the 21st or 22d. Q. The 21st or 22d of March?— A._ Yes, sir. Q. Then tell us about your interview with Mr. Richardson. — A. In that brief interview with Mr. Richardson in the hall, outside of the House, I stated what the matter was and why I wanted to see him and 1 requested him to give me an interv^iew where I could come to him and l)ring the papers to submit to him, as I had none there. Mr. Rich- ardson made an appointment with me that evening at his home at 8 o'clock, and I went to his home at 8 o'clock and brought all the papers with me. I was introduced by Mr. Richardson to another member of the House, Mr. Underwood, and together with Mr. Richardson and Mr. Underwood I w^ent through the matter as well as I could; read them extracts from the report, read them copies of the papers in Den- mark, made it as short as possible to give them evidence of m}^ con- cern in the matter. Q. For what purpose? — A. In order to get the matter introduced in the House, so that 1 might get it before the American people. Q. This affidavit that accompanied the presentation of the case that day was drawn by whom? — A. That affidavit I signed in the presence of Mr. Underwood. Q. It was drawn by whom? — A. It was given to Mr. Underwood by Mr. Richardson. Q. But m}' question is who drew the affidavit? Mr. RiCHAEDSON. I wrote the affidavit, handed it to Mr. Under- wood, and he accompanied the witness to the notary public. Q. I would like to have you redeem your promise to give us the names of the parties you represent. — A. Here is a cable [exhibiting cablegram] that possibly will show you who the pai'ties are to some extent. Q. Do you represent the Danish Government? — A. No, sir. Q. Do you represent any official body of the Danish Government? — A. No, sir. 44 PUECHASE OF DANISH ISLANDS. Q. The parties that you represent, are they an organization or a corporation ?^A. No, sir. Q. Are the parties you represent private individuals?— A. Private individuals, who might possibty be called the "No-Sale Party." 1 might classify them into two groups. One group, those who do not wish the islands transferred to America under any circumstances, and the other group, those men who do not wish the islands transferred under present negotiations and who insist that this treat}^ should not he ratified on account of these negotiations and that a new treaty should be made. Here is a cable, dated March 5, which shows some of the men who belong to that party : Gron, Waldorf-Astoria, New York: Protest published to-day against sale unworthy negotiations treaty's disadvantage and obUging signers support enterprises developing islands between signatures strongest business men bankers land owners admirals generals president supreme court first bishop members parliament both parties when decision your side expected. Q. The class of men named there accurately represents 3'our prin- ciples? — A. Yes, sir. Mr. Richardson. This cablegram is signed " Vonjessen;" who is he? A. He is the constituted secretary of the No-Sale Party. Before I left I told them that I did not wish to go over simply to tear down if I can substitute nothing in return. "Can I sa,y there is a sufficient sentiment in Denmark that it is worth while to present to the American people a new proposition, so that we may have some- thing to substitute?" What was agreed upon by a large number can be found in this proposition: Instead of the present treaty Denmark should give America the island which has the harbor she wants, and that she should arrange with America never to sell the two islands to any other foreign coun- try, and instead of $5,OuO,000 she should not be offered money, but should receive from America actual tariff concessions for products from the island of St. Croix. I received a cable confirming that agreement. Here is a cable sent me, dated the 1st of March: Groen, Waldorf-Astoria, New York: While present agreement perhaps may fail — That is the one I have just mentioned — if proposed from your side be sure of acceptance, especially if smaller payment could be made — The idea was that we should not have any payment — for concessions, besides steamship lines to Central America guaranteed by three well- known gentlemen only if islands remain ours; am authorized express greatest sym- pathy for extended commercial cooperation with your country; three gentlemen's reference Landman's Bank. That means you can refer to the largest financial institution in Copenhagen. Mr. HiTT. Who signed that cablegram? A. The same man, Vonjessen. The statement has been published all over the country that I had asked the Danish Government for a commission, and that Christmas and I had both been refused; and that, therefore, I had come over here determined if I could not get anything Christmas should not. That PURCHASE OF DANISH ISLANDS. 45 puts the matter clearly down on a petty jealously between two men, because 1 could not get a commission. I wish to say that I have a letter, which I wrote twelve months ago, which shows that I never asked any commission and never have 1 been refused; on the contrary, I wrote twelve months ago that I wanted nothing. By the Chairman: Q. That letter was written to whom? — A. The chairman of the com- mittee which was first formed in Denmark for the purpose of trans- ferring the islands, in the fall of 1897, and to which Mr. Christmas referred in his report. Seabright, N. J., August 9, 1900. Dear Mr. Hansen: According to my promise made to you in Copenhagen on the 16th of last June, I have, since my return to the United States, consulted with Mr. H. H. Rogers and Mr. Charles R. Flint, and find that we all agree on this point, viz: That there is no longer in existence any agreement between us and the com- mittee which was formed in Copenhagen in the fall of 1897, with yourself as its chair- man, for the purpose of furthering the transfer of the Danish West Indian Islands to the United States. Furthermore, we all, Mr. Rogers, Mr. Flint, and myself, understand that in case the transfer should be made to-day that we would have no claim whatsoever on your committee or upon the Danish Government for compensation. With great esteem to you and every member of the committee, I am, very respectfully, Niels Gron. Mr. Etatsraad Gustav Hansen, Copenhagen. That brings me to the point where I was going to say that if there has been any injustice, it has been injustice to me; that I came at the request of these people; that I have never asked for a penny of com- mission, and that on the contrary I have said to them long ago that I would not have any commission, and so it can not be shown that the question now before the House has been brought by a man out of jeal- ously, but from the motive 1 have stated. Q. Was there in 1897 a project on foot for the sale of the Danish West Indian Islands? — A. Yes, sir. Q. Participated in by certain parties in Denmark and certain parties in this country? — A. Yes, sir. Q. To which you were also a part}'? — A. Yes, sir, Q. Who were the Danish parties? — A. In answer to that question, if you will allow me to submit an article that I published in the New York Times on the 18th of March, 1901, it will explain that whole question, both from the Danish and American points of view. Q. I will ask you this question, whether the parties named in this statement of Mr. Christmas's as a committee that was engaged in this project in 1897 are the correct parties [handing witness Mr. Christ- mas's statement]. — A. Yes, sir; with the exception that there are some typographical errors. For instance, there is an " O" instead of an "A." Q. Then on the other side, the American side, there was 5'ourself, Mr. H. H. Rogers, and Mr. Charles R. Flint? Any others?— A. No, sir. Q. Those were all? — A. Yes, sir; those were all. Q. Is it true, as stated in that statement of Mr. Christmas, that Mr. Rogers agreed to put the matter through Congress for 10 per cent of the purchase money?— A. No, sir. Q. Just explain what the scheme was. — A. There is a statement here in the New York Times from there [indicating] to there [indicating] 46 PTTECHASE OF DANISH ISLANDS. that it will not take long to read, and if you will allow that to be read it will explain the whole matter. The clerk read as follows: Early in January, 1897, in the foreign department at Copenhagen, Mr. Vedel, who ever since the Danish-German war in 1864 had been the practical head of Den- mark's foreign ministry, and myself discussed at length the question of transferring the Danish West Indian Islands to the United States. Both the advisability of and the method for accomplishing the object were considered. When I left the foreign ministry that afternoon Mr. Yedel went to the Folkething, (the lower house of the legislature) and there sought and found Captain Bluhme, chairman of the committee in the lower house which had charge of the West Indian affairs. Captain Bluhme called upon me that evening at the Hotel d'Angleterre, and urged me to interest myself in the transfer of the Danish Islands to the United States, stating his private opinion to be that the Danish Government would back me up in case I succeeded in raising the issue. I promised to ascertain the sentiment in the United States. The spring of 1897 I accordingly spent in the United States, principally in Washington. In October of the same year I again went to Copenhagen, believing that if Denmark would give the necessary authority it would be possible to effect the transfer. The question, however, of securing the authority was not easily solved. That there was a strong sentiment in favor of selling the islands was evident, but it was equally certain that both the King and the Government were determined that Den- mark should neither appear to take the initiative nor to become in any way officially committed to a sale until after the United States should have taken definite action, fearing lest the United States should repeat the humiliation of 1867. A representative committee, consisting of nine of Denmark's most powerful and influential men, was finally organized. The members of it were Gen. J. J. Bahnson, ex-minister of war; Count M. Krag-Juel-Vind-Frijs, Octavius Hansen, Gustave Han- sen, Capt. E. Bluhme, C. Hage, G. A. Hagerman, C. Carstensen, and V. Horup. It has been said — and I believe it — that it was the most powerful and most repre- sentative committee ever formed in Denmark. This committee, having once agreed upon a plan of procedure, had no difficulty in securing from the prime minister and the Government the desired authority, which it in turn delegated to me. Thus the committee, and not the Government, became responsible, yet the word of the committee was as good as that of the Government. It was recognized that the negotiations might extend over a long period of time and hence involve a large expenditure of money, and as it was difficult to secure a grant of a considerable sum of money from the Danish Government for that purpose, Count Frijs, at a meeting of the committee, proposed that in the event of a sale a percentage of the purchasing price should be paid to me and to those in America whom I should select as my assistants in return for paying all the expenses connected with the negotiations, including the banker, etc. It was agreed finally that to myself and my associates in America, whomsoever I should choose, 10 per cent of the purchasing price should be paid for furnishing and paying all expenses connected with the negotiations, which expenses, in the event of no sale, we were to suffer. The first and preliminary expenses, however, were to be paid by the committee in Denmark, from which I received a letter of credit for 5,000 kroner, or £275. Through the committee, therefore, I received authority from the Danish Govern- ment to form a committee in the United States, which was to secure an offer from the United States Government for the Danish West Indian Islands, which offer, provided the amount came within a certain specified limit, Denmark agreed to accept. It was entirely left to my judgment to decide who were to constitute the American committee. Mr. Hagerman, of the Copenhagen committee, suggested to me the name of his inti- mate friend, Mr. Henry H. Rogers, but, as I did not then know Mr. Rogers, or had never heard of him, I could say no more than that I should be pleased to take a card of introduction from Mr. Hagerman to Mr. Rogers. On January 9, 1898, I arrived in New York, and as I found Mr. Henry H. Rogers to be all Mr. Hagerman had said (and that was not a little), I was glad to secure his assistance, and requested him to become a member of the committee in the United States, which was to find out if the United States wanted to buy the Danish islands, and if so, to get the United States to make an offer. THE 10 PER CENT ARRANGEMENT. The negotiations were to be carried on between the Governments through the unofficial channels of the two committees. The American committee was to pay all PURCHASE OF DANISH ISLANDS. 47 expenses and costs on the condition that in the event of a sale it received 10 per cent of the price paid. Mr. Rogers told me that inasmuch as he believed the United States ought to possess the harbor of St. Thomas, as well as out of regard for his friend, Mr. Hagerman, he would do all he could to further the sale, and consented to become a member of the American committee. With Mr. Rogers and myself I associated Mr. Charles R. Flint. The American committee then stood Rogers, Flint, and Gron. Investigations were made, and it was found that the authorities in Washington were disposed to consider the matter favorably, and especially after the first shadow of war between the United States and Spain had apjieared upon the political horizon did the President and his Cabinet become interested in the matter. On March 23, at the State Department in Washington, I pointed out to Mr. John A. Kasson that since Secretary of State Seward offered $7,500,000 for the two islands (St. Thomas and St. John), that amount would be cheap now for the three islands, St. Croix included. Mr. Kasson, however, thought that if a smaller figure was asked there would be a better chance of carrying the matter through. I then told him that, though I had no ofiicial authority, I would nevertheless promise that if $5,000,000 were offered, Denmark would accept. On the following April 1,1898, Senator Lodge introduced a bill in the Senate to the effect that Congress appropri- ate $5,000,000 for the purchase of the islands. The negotiations were carried on entirely in unofficial channels, the Danish min- ister, Mr. Brun, having nothing whatever to do with the affair, though he told me afterwards that he had been informed by his Government of my mission. On the morning of March 25, 1898, Secretary Cornelius N. Bliss, of the Interior, telegraphed Mr. Rogers that the question of buying the Danish West Indian Islands would be brought up in the Cabinet on that day. I called a meeting, and at 2 o'clock p. m. Mr. Rogers, Mr. Flint, and I met at 26 Broadway. At 2.30 Secretary Long told us over the telephone that the matter had been favorably considered in the Cabinet and that the President had referred it to Mr. Kasson. At 4 o'clock on the same day Mr. Kasson over the telephone suggested that I ought to go to Denmark immediately and point out the necessity for quick action in order to have the transfer made before war with Spain was declared. I at once cabled to the committee in Denmark that I would sail the next morning on the Campania, and that if quick action became necessary while I was on the ocean, I had given Messrs. Rogers and Flint authority to act. On mj^ arrival at Queenstown I received the following cable in cipher from America: "The matter will go through if Dpnmark acts promptly." While I was on the ocean the negotiations had jarogressed rapidly. The price of $5,000,000 had been accepted by Denmark, and all seemed to point to a rapid and successful conclusion, when sud- denly Denmark called a halt. When I reached Copenhagen on April 6 war between the United States and Spain was imminent and Denmark then said that even if $20,000,000 was offered it would be impossible to accept it, as it would be a diplomatic discourtesy toward Spain. A cable was sent to the United States requesting that the affair be held in suspen- sion until hostilities should cease between the United States and Spain. On October 19, 1898, in Paris, the late Senator Cushman K. Davis, then on the Paris Peace Com- mission, in discussing the Danish Island question with me, said: ''The United States must and will have the harbor of St. Thomas.'' Senator Davis being the chairman of the Foreign Relations Committee in the Senate, I thought the statement very important, and on going to Denmark two days after, I did not fail to repeat it there. In November, 1898, 1 was again requested by the committee in Denmark to have the matter brought up in America, whenever the opportune moment should appear. On January 14, 1900, Mr. Christmas, formerly of the Danish navy, came with letters to Mr. Rogers and myself from members of the committee in Denmark, and requested that we, Mr. Rogers and myself, should cooperate with him in consummating the sale, but inasmuch as we did know Mr. Christmas, both Mr. Rogers and I declined to cooperate. On the 11th of April last, the day previous to his departure for Denmark, however, I consented to assume the authority which Mr. Christmas claimed to possess. These are the facts, beyond which I have nothing to say. Niels Gron. Q. That is a very satisfactory answer to the question. In 1900, when Mr. Christmas came to this country, was this American com- mittee still in existence and did they still have in view the bringing about of the purchase of the islands — that was October, 1899? — A. Mr. Chairman, as 1 have stated in this statement in the Times, 1 48 1>DRCHASE OF DANISH ISLANDS. think it was in November, 1898, 1 think I was in Stuttgart, I conferred with the committee from Denmark, and they requested, inasmuch as the hostilities had been settled between the United States and Spain, that I would again on my return find out if there was still a senti- ment for securing the islands. There was a doubt, since America had secured Porto Rico, whether they cared for the Danish Islands. I said I would. I came over here and found there was a doubt whether they cared for the West Indian Islands. I waited to see what would develop, and therefore practically did nothing. Thus it stood in that loose shape. I told them it was practically impossible to find out what they wanted to do, that they were still talking about Porto Rico. We had never actually dissolved ourselves and the committee in Copenhagen had never dissolved itself. Q. The matter remained in suspense? — A. Yes, sir. Q. In these negotiations that you have recited here the parties that you came into contact with were Secretary Bliss of the Interior Depart- ment, Secretarj^ Long of the Navy, Mr. and Kasson, special commis- sioner. Is there anybody else? — A. The only person I came in con- tact with was Mr. Kasson. Q. Personally? — A. Yes, sir. Q. You did not come in contact with any members of the Senate or House of Representatives? — A. The only man, Mr. Chairman, in Washington that I know of that I came in contact with was Mr. Kas- son. I came down to see Mr. Kasson and put those questions before Mr. Kasson and he promised to lay them before the Secretary of State. Q. As I understand Mr. Christmas, when you came to New York, claiming to have in charge the bringing about of the sale of the islands, he called on you? — A. Yes, sir. Q. And he called on Mr. Rogers? — A. Yes, sir. Q. That was in January, 1900, was it not? — A. January 14. Q. Nineteen hundred? — A. Yes, sir; 1900. Q. Mr. Christmas represents in this paper that you and Mr. Rogers were dissatisfied because the matter had been taken out of your hands and given into his hands, and that you would not come to any agree- ment with him? — A. Yes, sir. Q. Was there a proposition made that you should divide commis- sions? — A. Mr. Chairman, Mr. Christmas made a number of proposi- tions. Q, At that particular time ? — A. When Mr. Christmas came here. Here [exhibiting letter] is his letter to me, written the date he arrived, though he makes a mistake; it was not December 12, it was Decem- ber 14. He sent that letter to me at the Harvard Club, and it was brought to me at the Waldorf-Astoria, where I was staying, and I sent back word the very day he arrived — December 14 — by a messenger, that if he cared to see me I would be at the hotel at 9 o'clock that even- ing. He came down and he began to explain the whole thing and what he wanted to do. I had been down in Washington a few days before with Minister Brun, and Minister Brun had said to me, "I hear Christmas is coming over here," and said it would be very unfortunate to have him represent Denmark, and "I advise you to get hold of him as soon as he lands," because Brun knew how it happened and he referred to the fact that the Danish Government had discharged him. Mr. DiNSMORE. What is that? A. Just a letter from Mr. Christmas saying he is coming here, and PURCHASE OF DANISH ISLANDS. 49 stating he would leave to-morrow for Washington, and he would like to see me as soon as he could. By the Chairman: Q. Mr. Christmas states in his statement that at this interview at this time with you and Mr. Rogers, when you refused to come to terms, Mr. Rogers said: I don't know if we will come to an f^reement or not; but mind you, this island business will never pass through Congress without my consent. I am able to swing 26 votes in the Senate, and don't you forget it. Was there any such statement made? — A. I was never there when Mr. Rogers met Mr. Christmas. Q. Did you ever hear Mr. Rogers make such a statement? — A. I never heard Mr. Rogers make any statement like that or make any statement that he controlled an3^body in Congress. Q. Who is Mr. Rogers? — A. Mr. H. H. Rogers is a citizen of New York. Q. And a prominent Standard Oil Company man? — A. Yes, sir. Q. Who is Mr. Charles R. Flint?— A. Also a citizen of New York. Q. Largeh' engaged in the South American trade? — A. Yes, sir; largely engaged in the South American trade, I think. Q. Mr. Christmas says that you presented him the choice of securing you and Mr. Rogers as enemies, which, in his opinion, would make the sale impossible, or to give the whole over into your hands and go home, and that he should have nothing at all to do with this disposition of the 10 per cent commission. Was there any such proposition as that made? — A. If 1 may make a statement in n\j own way, I think I can answer that question better. Mr. Christmas came to me at the Waldorf and brought a letter from Mr. Gustave Hansen, and he made a strong presentation of what he was here to do and what he wanted to do. I took this letter and told him that I could answer absolutely nothing until the next afternoon at 4 o'clock. I then telephoned the editor of the New York Herald and asked him to send a reporter to the Manhattan Hotel to interview this man Christmas and to let me know what he said. The Herald sent up a reporter to interview him, and they sent the interview over to mj' hotel. I looked at it, and asked that no statement be made in the Herald. I wanted to find out what Christmas meant to do. If he meant to proceed on the basis of the New York Herald report or the basis here, we could have nothing to do with it. The next day when Mr. Christmas came to me and wanted my answer I told him that I had met him personally in Copenhagen, only for a few moments, the time I was going to Paris, and when he had come to me previously representing himself to be an agent for the Anker Marble Company, and under that pretense had tried to secure information from me regarding the negotiations concerning the sale of the islands, my answer was: ''Since I have only seen you person- ally in a railway station, representing that marble company, when you were over here trying to get into the State Department, I can not talk with 3'ou on this matter." That same day or the next day he came up to my room and was extremely angr}-. I was in bed, about 11 o'clock, and he slammed the door and went ofi' to Washington, and I went to Boston, and when I returned I got a letter from him saying he was sorry for the manner in which he left me. He says in his report tjiat he signed a contract with me by which 50 PURCHASE OF DANISH ISLANDS. we were to have two-thirds for Mr. Rogers and myself of the 10 per cent and he the other third. When he left for Denmark finally, in April, I did not have an}^ contract. He went to see my lawyer and signed over to me a power of attorney, that was in April, and six weeks afterwards I went to Denmark and investigated the matter and sent him a telegram that 1 would have nothing to do with it. In his report he says that there are twenty-six documents which he possesses. The only document he got from me is that telegram, which «aid that I could have nothing to do with it. Q. So, in point of fact, you never made any contract with Mr. Christmas?— A. I never made any contract with Mr. Christmas. Q. Either at the time of your first contract or afterwards? — A. Yes, sir. He signed over a power of attorney in which he claimed to be the representative of the Danish Government, but there is abso- lutely no contract, and I sent him a telegram that I could have nothing to do with it. Q. The report says that then the "next day Mr. Gron sought me and offered $25,000 of the commission." Is that true? — A. 1 never offered him $25,000. Q. Then the report says, when he refused that he offered to give half of the commission, and you refused? — A. Several times after he came back from Washington he tried to have us talk it over and made offers, and we refused. Q. You mean you and Mr. Rogers ? — A. Yes, sir. Mr. Rogers would not meet him any more. Q. Then he says that Mr. Rogers and the Danish minister and you all worked against him. Is there any truth in that statement? — A. We did nothing whatever. The only things I have said against Mr. Christmas is the statement here in the Times and m}'^ statement two months ago, which I have read from the Copenhagen papers. Mr. McCall. It is said in the report that he had two interviews with New York papers in which he made some indiscreet statements; and in one of the interviews he said that President McKinley's brother was to receive an enormous sum of money. He denies that he had those interviews, but says that they were originated by Mr. Gron. Do you know anything about those interviews being printed in the New York papers, alleging that President McKinley's brother was to receive an enormous sum; do you know anything about them 2 A. No, sir. By the Chairman: Q. Did they originate with you? — A. No, sir. Q. Did you have anything to do with them, directly or indirectly? — A. No, sir. By Mr. Hitt: Q. You spoke of having communicated with some representatives of newspapers when you were seeking to make public this paper. Did you offer it at that time to the New York Sun and the Cincinnati Enquirer? — A. It was offered, I think, to the New York Sun agency, the same as the press associations. Q. And did you also offer it to the Cincinnati Enquirer? — A. I do not think so. Q. Can you tell what is meant and what are the names of the press associations referred to in that report and in the resolution that were to be subsidized? — A. I do not know, sir, to what associations it refers. PURCHASE OF DANISH ISLANDS. 51 Q. You had no discussions with Mr. Christmas as to that means of securing- the money? — A. No, sir. Thereupon (at 12 o'clock m.) the committee took a recess, to meet at 1.30 o'clock p. m. AFTER RECESS. CONTINUATION OF TESTIMONY OF NIELS GRON. By Mr. Richardson: Q. Mr. Gron, do I understand you to say now that you have no pecuniary interest, one way or another, in the matter of the ratifi- cation of the pending treaty between these two countries, Denmark and the United States ? — A. Yes, sir; no pecuniary interest whatsoever. Q. Whether the treaty be rejected or confirmed you have no pecun- iary interest? — A. Not in the sHo-htest deg-ree, Q. Have you seen any letter from Mr. Christmas to anyone in the last few weeks on the subject of this report? — A. 1 saw a letter yes- terday in New York, written to Carl Fischer Hansen, Mr. Christmas's attorney, dated March 2, 1902. Q. Did Mr. Hansen show you that letter? — A. Yes, sir. Q. Did he enjoin upon you a,nj secrecy about that letter or its contents? — A. No, sir. I asked him if I might tell about it, and he said yes. Q. I want you to give the substance, if you can, of that letter, as to what Mr. Christmas said in reference to this report, if anything. — A. 1 can not state exactly, but so far as I can remember now this is approximately correct: It set forth the fact of the scandal made by this report. It stated that it was the report of the Danish Govern- ment that was being used, after having been procured from some- body, and that it made some reference to myself. He said, however, that this fact, through it all, had been fully established — that I had a commission from the Danish prime minister, Mr. Horring, and he added, "I shall come out of it all right pecuniarily, provided there is no more scandal." Q. That is the substance of his letter of the 2d of March, 1902?— A. Yes, sir. By the Chairman: Q. That is the letter of Mr. Carl Fischer Hansen ?— A. Yes, sir. By Mr. Richardson: Q. Do you know Mr. Christmas's handwriting? — A. I know Mr. Christmas's handwriting. Q. Wasthatletterin his handwriting? — A. It was in his handwriting. Q. Mr. Gron, in what year did you say you were naturalized? — A. In 1895. Q. I believe you said you graduated at Harvard? — A. I got a degree from Harvard tlniversity in 1894. Q. And you were a naturalized citizen of the United States in 1895 ? — A. I was a naturalized citizen in 1895. Q. Where were you naturalized? — A. At Boston. Q. And you are now a citizen of Massachusetts? — A. Yes, sir. Q. What did you do after you became naturalized as a citizen of the United States in 1895?— A. 1 think I left about three weeks after 52 PURCHASE OF DANISH ISLANDS. that for Scandinavia, where I continued my studies in international customs; at that time there was some trouble between Norway and Sweden. Then I attended the opening of the Kiel Canal, which was opened that year, and which was of interest to me from an interna- tional point of view. Then during the summer I went up into Nor- way, and returned to the United States in September, 1895. Q. Then what did you do ? — A. About one month after thai I siarted on a journey around the world, for the purpose cf continuing my studies in international customs. Since Mr. McCall is here, I may say that after my return from Norway and Sweden I was asked by the Twentieth Century Club of Boston to make a speech on that subject. I have had the honor of appearing three times before that club to speak upon international questions. Q. When did you return to the United States from that voyage? — A. After spending some time in China studying the Chinese-Japanese war; some time in Turkey stud3'ing the Roumanian question; some time in Egypt, and some two months at the Serbonue in Paris, I arrived in New York early in July, 1896, after an absence of eight months. Q. Then what did you do? — A. I went to Ohio, where I had the honor of being taken to Mr. McKinley's home in Canton and intro- duced to him. Then I came back to Washington and was appointed by Senator Mark Hanna to take charge of the Scandinavian department of the national committee, with headquarters in Chicago, and 1 went out to Chicago with Mr. Hanna to take charge of that department. Q. Went from where? — A. From New York. He asked me where I wanted to establish my headquarters. They had never had a Scandi- navian department before. 1 was with the national committee for about six weeks, and after that, during the last part of the campaign, I think I spoke in about six different States. Q. For what? — A. For the national Republican committee. I spoke in Connecticut, New York, Minnesota, Wisconsin, Iowa, Nebraska^ and Illinois. Q. That was during the campaign of 1896. Then what did you do after that campaign was over?— A. 1 went abroad in the latter part of November, after the campaign was over. For six weeks I was con- stantly speaking. My labors during those six weeks broke down my nervous system and 1 went to Denmark to recuperate. It was when I was there recuperating that this conversation began with the foreign minister of Denmark, when I was first telegraphed that these islands would be sold. Q. When did you next return to the United States? — A. I returned to the United States the following February or March, of 1897. Q. What did you then do? — A. I came here to Washington to try to get an office, and failed. Q. What place did you apply for? — A. I applied for the position of minister to Denmark or Siam. Q. Did you have any indorsements? — A. Yes, sir. Q. From whom?^ — A. Among others, I had an indorsement from Mr. McCall. I had one from Senator Hanna, and I may say that I also had one, of which I am proud, being a citizen of Massachusetts, from the two Senators from that State, Senator Hoar and Senator Lodge, and, besides that, I had the indorsement of the majority of the Republican members of Congress from jNIassachusetts. Senator Hoai accompanied me to the State Department and introduced me to the PURCHASE OF DANISH ISLANDS. 53 Secretary, and Senators Hoar and Lodge, in a joint statement to the President, thanked the President for having appointed Mr. Draper as ambassador to Italy, and that was followed up by a statement to the President that if, in the President's opinion, Massachusetts should deserve any more diplomatic positions, they begged ''to recommend the following three gentlemen," and 1 had the honor to be the first one recommended. Q. Have you with you a letter from Senator Hanna to Senators Hoar and Lodge '^ Mr. Chairman, I would like to have that letter put in to show Mr. Gron's standing. — A. (After making search.) It is here somewhere. Mr. Richardson. I think you showed it to me in that book you have before you; I am not positive. The Chairman. He can put it in when he finds it. Mr. Gron. Here it is. Mr. Richardson. It is a letter from Senator Hanna, dated March 12. 1897, to Senators Hoar and Lodge. I do not care to read it. The Chairman. Let it go in the record. The letter is as follows: Headquarters Republican National Committee, Glover Building, Washington, D. C, March 12, 1897. Dear Senators: I beg to advise you that Mr. Niels L. J. Gion, of Boston, a Scan- dinavian by birth, but a citizen of Massachusetts, was exceedingly useful and valuable in the campaign of 1896 and contributed efficient service. He organized the Scan- dinavian bureau at our Western headquarters and conducted it in a successful man- ner, and later on in the campaign entered the field and addressed his countrymen in Illinois, Wisconsin, Minnesota, South Dakota, Iowa, and Nebraska, and for this work in these States as a campaigner our speakers' bureau received numerous commen- dations. Realizing that there were large settlements of Scandinavians at Jamestown, N. Y., Bridgeport, and New Haven, he was requested to make a trip East, and was equally efficient in the East as he had been in the West. At Jamestown, N. Y., his work was especially valuable, for he spoke to Scandinavians from Ohio, Pennsylvania, and New York. You will pardon me. Senators, for this note, but I greatly desire to advise you of the good work done by this citizen of Massachusetts, and to remind you that the Scandinavian vote in tiie West was a potent factor in our victory, and to ]Mr. Gron due credit should be given. I am, etc., yours, very truly, M. A. Hanna, Chairman. Hon. George F. Hoar and Hon. Henry Cabot Lodge, United States Senate. Q. Did you have any letter from any other Senator — from Senator CuUom ? — A. I did have one from Senator Cullom. Q. Have you that letter ? — A. I have that letter. Mr. Richardson read the following letter from a scrapbook belonging to Mr. Gron: United States Senate, Washington, D. C. , April 5, 1897. Dear Mr. President: Mr. Niels L. J. Gron, of Boston, a Scandinavian by birth, is a candidate for appointment as minister to Siam. Mr. Grun is a thoroughly educated gentleman, is a graduate of Harvard, and in the campaigns of 1892 and 189(5 did very valuable service to the Republican party. I should think he was just the man to be sent to the country to which he wishes to be accredited, and I shall be pleased if he should secure the position indicated. Very truly, yours, S. M. CuLLOM. Hon. William McKinley, Executive Mansion. I take pleasure in concurring in the above recommendation. C. K. Davis. 54 PURCHASE OF DANISH ISLANDS. Q. That was Senator Cushman K, Davis, was it? — A. Yes, sir. Q. Did you canvass on behalf of the Republican party in the cam- paigns of 1892, 1896, and 1900?— A. Yes, sir. Q. In the national campaigns? — A. Yes, sir. Q. What are your politics? — A. I hope I am a Republican, as 1 canvassed for the Republican part3^ Q. State what are your politics. — A. I am a Republican. By Mr. Dinsmore: Q. Have you any knowledge whatever of any bribery or attempted bribery of any Senator or Representative in Congress or any other officer of the Government in connection with the negotiation of this treaty or in connection with any appropriation of money to complete such treaty? — A. None whatever. By Mr. Hitt: Q. Have you any knowledge of any bribery or attempted bribery of an3^one — whether in the House, the Senate, or anywhere else — to pro- cure the ratification of this treaty? — A. I have none whatsoever. Q. Have you any reason to believe that any man, either in the Senate or the House, was bribed or attempted to be bribed?— A. I have no reason whatever to believe that any man has been bribed. By the Chairman: Q. Is m}^ recollection right as to what you have alread}' testified, that the only person you ever saw was Mr. Kasson in connection with this proposition to bring about the sale of the Danish islands? — A. My recollection is that I saw no one in Washington in connection with this matter besides Mr, Kasson. Q. You referred to a telephonic message from Mr. Long, the Sec- retary of the Navy, and Mr. Bliss, Secretary of the Interior? — A. That is correct. Q. That is a correct statement, is it? — A. Yes, sir. It is correct that I only personally saw, in the State Department, Mr. Kasson; but I personally saw others during the time of the existence of the national committee. I may add, what I omitted in my former state- ment, that when I came to New York I saw Mr. Charles R. Flint; that I went to his house one evening and had a conversation with him about this matter. He did not see t'he translation of this report, but whether he saw the Danish part of it or not I do not remember. But I had a conversation with him about the matter. STATEMENT OF HON. B. F. ALEXANDER, M. C. The Chairman. You have read all or a portion of this alleged report of Mr. Christmas, published in the Record? Mr. Alexander. I have. The Chairman. And you have noticed your name mentioned therein ? Mr, Alexander. I have. The Chairman. And that is the reason you are before the committee this morning? Mr. Alexander, Yes, sir. The Chairman. You may proceed and make your statement. PURCHASE OF DANISH ISLANDS. 55 Mr. Alexander. I never spoke to Mr. Christmas; I have never met Mr. Christmas; I never heard of Mr. Christmas until this report, published in the Record, was called to my attention in the newspapers of Bufl'alo, where I was last Friday. I never spoke to anyone in or out of Congress in regard to the Danish treaty, nor hasan3^one spoken to me in or out of Congress in regard to the Danish treaty, nor have I ever heard it discussed at any time or in any place by anyone until after the publication of this alleged report. That is all I have to say. STATEMENT OF HON. CHARLES H. GROSVENOE, M. C. Mr. Grosvenor. Mr. Chairman, I received a letter, which I think I shall put into the record — it is not with me, but is at my room — from Mr. Rogers, of New York, with whom I had had a slight acquaintance, saving that he desired to introduce to me a gentleman in regard to a matter of considerable importance. The exact language of that letter I can not give, but I do recall that it did not sa}^ anything about what that matter of importance was. Inasnuich as I was about to leave Washington at that time, I telegraphed to Rogers. You have my telegrams ; they are all correct. The Chairman. Yes. Mr. Grosvenor. Before I went away I met Mr. Gron. I ma}" say now that I have had read to me the notes of Mr. Gron's testimony, and I think the dates of the various interviews he gives are all correct, and therefore I shall not try to refer specifically to the dates. When I first .saw any papers in his possession they were in the Danish lan- guage, and he read some ver}' brief extracts therefrom and made some additional statements. From that reading of the extracts and from the statements made bv him I understood that the charges in the document were direct charges of mone}^ having been paid for votes. Subsequent!}', however, 1 ascertained that it was not the intention of Mr. Gron to have me so understand, because he very shortly after- wards explained fully to me how indefinite the charges were. Then I asked him to take the paper and have it translated, so that I could read it. He did so, and I have no doubt that he brought it to me at the date he says he did. However, before I left Washington I went to Mr. Cannon and gave him a mere outline, and a very brief one, of the charges, and said to him that if it should come about that I should be gone longer from Washington than I then anticipated, and if any appropriation should be suggested during my absence to pay this $5,000,000 1 should be glad to have action deferred upon it until I returned to the city. I am sure that I said to Mr. Gron when he came to me that if it appeared that money had been paid for votes it would result in a repudiation of the whole transaction. That was at the time when I supposed that there were charges of actual bribery. At that time I had not only this long report, but I had a printed answer of the New York Journal in a case of some one (his name I think was Fischer-Hansen), plaintiff, against the New York Journal for libel. I never read that, however, further than to see that the subject-matter was about this same scandal. I have that paper yet. Mr. Gron submitted to me some other papers, and among others he 56 PURCHASE OF DANISH ISLANDS. read to me a number of ocean cablegrams that were in a foreign language. Finall}^ I told Mr. Gron that 1 should submit the whole matter to the Secretary of State. By that time I had formed my own estimate of the value — or, rather, the nonvalue — of the whole subject. Mr. Gron is exactly right in his statement that I made two different appU'-'rilijns before I secured the interview with the Secretary of State, and then I left the papers with Mr. Hay. He afterwards returned the papers to me, and I had another interview, in which he told me that there never was an}^ go-between from this Government to the Danish Government; that nobody had had any recognition as an attorney, or as agent, or as diplomatic intervener, or in any other character whatever; and that the State Department had made repre- sentations to the Danish Government, as I understood the Secretar}-^, to the effect that there was nobody entitled to an}^ pa}" from an}" source growing out of any relations that anyone had had to the negotiations. I want to say that I submitted this paper to Mr. Hay, stating at the same time fully my opinion as to the absurdity of the whole matter, but that I did so thinking perhaps that it was proper that he should know that the Danish Government had received a paper like that and had not informed this Government of the fact. But Mr. Hay said that the answer to that would be that this was an irresponsible person. Indeed, he stated he was worse than an irre- sponsible person in the estimation of that Government, and that it was a matter to which they could give no attention or consideration. Then Mr. Gron came to me and 1 gave him the substance of what Secretary Hay had stated to me, and returned his papers to him, with the exception that I took the privilege of retaining the answer of the New York Journal, to which 1 have referred, as I had not read it at that time, and felt a little interest to see what sort of a lawsuit could grow out of such an affair as this was. Then the gentleman brought to me a brief notice which he said he wanted to have published by the Associated Press, and, as I under- stood, he asked me if I would recommend him to the Associated Press if they called upon me. Mr. Howard Thompson did call upon me with a note from the manager, or somebody representing the Asso- ciated Press here, and asked me what I knew about this matter. I said "Nothing; there is nothing in it." That was my exact language, as Mr. Thompson will recollect. I supposed that what Mr. Gron wanted me to say was that he bore to me credentials of respectability. Nobody asked me anything about that, however, and, having gotten the whole thing out of my hands, and hoping that nobody else would agitate it, I did not care to repeat anything there was in it, and I consequently said there was nothing in it. I attfd tlidt in a good many instances. Mr. Gron said something to me to the effect that he hoped the matter would reach the public, if it did reach the public at all, through the action of some Republican. He mentioned that more than once. I finally told him that I did not believe that there was any Democrat who would bite at that. Mr. McCall. Any Democrat? Mr. Grosvenor. Any Democrat. I thought surely there would be o Republican willing to bite at it after I got through with it. I want it understood that Mr. Rogers, as I finally discovered, PURCHASE OF DANISH ISLANDS, 57 seemed to have the impression that he had been charged with having said that he owned some twenty-odd Senators Mr. McCall. Twenty-six Senators. Mr. Grosvenor. And he said that was an outrao-e; that he wanted to deny it. Mr. Gron gave ISIr. Rogers a clean bill of health on that by saying that Mr. Rogers had no interest in the percentage or any- thing else. I asked Mr. Gron very earnestly what his interest was in this whole matter — what he was trying to accomplish. I thought per- haps he wanted to have some claim upon the Danish Government for this percentage. But Mr. Gron told me he had no interest whatever in it, and in that connection exhibited to me a copy of the letter he had written to the Danish Government a year or two ago, perhaps longer, in which he disclaimed any claim upon that Government whatever. Before he told me that his hope wi'.s that something would happen to break off the negotiations for the transfer of the islands. I think, gentlemen, that is the extent of my knowledge upon this ;ubject. Do 3'ou wish to ask me anything; Mr. Gron? Mr. Grox. No, thank you. General. The last time I saw you, General, regarding your conversation with the Secretary of State, I understood that the Secretary had said that he had read that whole report, and that there was no doubt in his mind that' it was a genuine copy. Mr. Grosvenor. 1 can not say that he used the words "genuine copy;" but I told the Secretary how, as I understood it, the report had gotten out. 1 have not stated here what Mr. Gron told me in that connection. Mr. Gron told me that each member of the Danish Govern- ment, as the matter stood at the time this report was made, had a copy of this report, and that shortly afterwards a new cabinet (as we would call it) came in, and each one of those gentlemen carried away his copy; and through that source this document came out. I told Mr. Hay that Mr. Gron told me that he would procure a certified copy of an official statement that this was a genuine paper; and Mr. Hay, I am quite sure, said to me that he had no doubt that that was true. Mr. Gron. I understood you to say. General, that the Secretary had said that he had informed the Danish Government that no one was to be paid. Mr. Grosvenor. That is correct. Mr. Gron. Furthermore, that the Secretary had been expecting, when you saw him the last time, that this report would be made public. Mr. Grosvenor. Mr. Hay said he had seen intimations in the Lon- don Times of the existence of some such report as this, and seemed to be entirely familiar with the fact that something of that kind had been hinted at in other papers, and said he was not surprised at it. Mr. Gron. I think 3'ou also told me that the Secretary said that he did not think, even if the State Department should act, that the Danish Government would take any position in regard to this matter that would prevent the publication of that report. Mr. Grosvenor. I do not think the Secretary said anything about the publication of the report. I think you misunderstood me. He said that any publication of this report or any action that might be taken here would have no effect, f^cause, so far as this Government was concerned, it had acted, and the treaty was to all intents and pur- poses ratified. H. Rep. 2749 5 * 58 PURCHASE OF DAlSriSH ISLANDS. Mr, Gron. I can not now see that there is any discrepancy between my statement and yours, though there may have been some misunder- standing between you and myself. Mr. Grosvenor. I am entirely satisfied with what you said. Mr. Gron. Thank yoo. Mr. Grosvenor. I have no disposition to criticise any of it. I only wanted to present more clearly that the reason why I telegraphed you to come over was because of these letters from Mr. Kogers which I had received, and about which I knew nothing until I saw you. The Chairman. Gentlemen, I have asked Mr. Brown, Mr. McKin- ley, and Mr. Hansen to come here on Thursday morning next at 10 o'clock, and if there be no objection the committee will stand adjourned until 10 o'clock next Thursday morning. Select Committee on Purchase of Danish Islands, House of Representatives^ Thursday^ April 3^ IdO'B. The Select Committee on the Purchase of the Danish Islands this day met, Hon. John Dalzell in the chair. TESTIMONY OF MR. ABNER M'KINLEY. Abner McKinley sworn and examined. By the Chairman: Q. Your place of residence is where? — A. New York City. Q. And your business? — A. Lawyer. Q. Are you a brother of the late President McKinley? — A. lam. Q. Do you know Captain Christmas? — A. I met him once in a casual way. I live at the Manhattan Hotel, and I met him in the most casual way in the lobby of the hotel. Q. Did you ever have a contract with him of any kind? — A. Never, of any kind or character. Q. Had you any connection with him in seeking to bring about the sale of the Danish West Indian Islands to the United States ? — A. None, either directly or otherwise. Q. Did you ever bring that matter at his instance to the attention of the President? — A. Never. I never talked to the President on the subject. Q. And the only relation you ever had with this Captain Christmas is that which you have already described? — A. I may have met him a couple of times, but I met him in the public lobby of the Manhattan Hotel, where he was stopping. I do not recall who presented him to me and only the ordinary courtesies of the day were extended. I nevei' talked with him on any subject in relation to this inquiry. By Mr. Richardson: Q. Who presented you to Mr. Christmas? — A. As I say, I do not recall who presented him or whether he presented himself to me. As I have said, I am living at the Manhattan Hotel, and daily men come up and introduce themselves to me. I do not recall whether he did that or some one introduced him. If some one introduced him, I should say it was Mr. Hansen; but I have no recollection. Q. I am going to ask the question if Mr. Carl Hansen did not pre- sent him. Did you have any conversation with Mr. Hansen about Mr. PURCHASE OF DANISH ISLANDS. 59 Christmas, as to what his business was? — A. Mr. Hansen came to my office Q, I mean, to ask you to meet Mr. Christmas? — A. Before I met Mr. Christmas Mr. Hansen came to me to my office and desired to retain me in this matter, and I said, "Mr. Hansen, I can not be retained; it is not a matter I care to have anything whatever to do with." Q. How long- was that before you met Captain Christmas? — A. Well, it might have been a week or it might have been three weeks; 1 do not recollect. The fact about it is it made no impression upon my mind whatever. Q. When you met Captain Christmas did you know that he was the man that Mr. Hansen had spoken to j'^ou about, and did you know Captain Christmas's business when you met him at the hotel? — A. Yes; I knew what Captain Christmas was here for, because Mr. Han- sen had told me at my office privately. I had no talk with Mr. Christmas on the subject of the West Indies or any other bufciness matter, simply greeting him for a moment when he came up and pre- sented himself and told me who he was, and we passed the time of day, and that was the end of it. Q. Did you ever have a talk with the bankers, Scligman & Co., or any member of that firm, in respect to this matter that Captain Christmas was interested in — the sale of the Danish West Indies? — A. No, sir. Q. You have had no conversation with any member of that firm? — A. I had no conversation with anybody in relation to Christmas or his business, except as I have said in relation to Hansen. The first intimation I had that Seligman had anything to do with it I read in the public press. STATEMENT OF HON. JOHN J. GARDNER. By the Chairman: Q. Mr. Gardner, j^ou are a member of Congress from New Jersey ?— A. I am. Q. Do you know Captain Christmas? — I think I met Captain Christ- mas; I am not certain about it, Q. You read or heard read this alleged report of his to the Danish Government? — A. I have looked over it. Q. You noticed what was said therein about yourself ? — A. As I remember it now, 1 saw he says that he made the acquaintance of Mr. Gardner. Captain Christmas has not yet made my acquaintance in any sense there indicated. When I say I think I met him once I mean this: Somebody, whom I can not exactly recall now, came to the Labor Committee room one morning and asked to present a lady and her husband. The lady was introduced with a long name, and my recollection is that the gentleman was simply introduced as her hus- band. He had very gallant manners, however, and seemed likea verj'^ fine gentleman. He laid his card upon the table on going out, and it had a number of names on it, and I recall somewhere in the middle, 1 think, occurred the name of Christmas. Afterwards, I think, he called one morning and asked the courtesy of a card to the gallery of the House. That is the extent of my acquaintance with Captain Christmas or his with me. 60 PURCHASE OF DANISH ISLANDa. Q. You notice that in his statement he says that at a certain time a speech was prepared to be delivered by you in connection with the Danish West Indian business. — A. I was going to come to that. I never liad anybody prepare a speech on the subject for me to deliver. I never had any knowledge at any time that anybody was preparing a spe ^ch on the subject for me to deliver, and 1 never had any knowledge that I was expected to deliver one. Q. And you were not preparing a speech yourself on that subject? — A. I was not preparing a speech on that subject. Q. You had no connection with Mr. Christmas? — A. None in the world. Q. Mr. Gardner, you introduced a bill relative to the purchase of the West Indian Islands?— A. I did. Q. Was that at the instance of Mr. Christmas? — A. That was not at the instance of Mr. Christmas, nor could anybody representing him have known anything about it in any way, and I will give you the facts about this, not to take up but a moment of time. Along in the fall, probably November, it occurred to me that in view of the build- ing of the Nicaraguan Canal, which I believed would come, and in view of this international race, so to express it, to get the control of the seas, and all that, that the Danish West Indies might be very desir- able to be secured by a great naval power, and we could not afford to let them have it. It crossed my mind to prepare a resolution on the subject, and on that I drew a preamble during that first week of the session of Congress. It then occurred to me that a resolution somehow was not the proper thing to introduce; that it would bring about a pushing of the Administration on the part of Congress, and the propo- sition to do so I did not like, so I laid it on my table and it was not introduced. I went home on the 9th day of December, and alighted from the train to find my boy, 15 years old, dead alongside the track. I paid very little attention to business down here for a considerable time, and when I came back I had not then and I have not yet up to this time spoken to any member of Congress on the subject of the bill. That is to dispose of the allegation that friends in Congress had changed the plan. I never spoke to any Senator on the subject except Senator Kean and Senator Sewall, and the outcome of such conversation was that the preamble, the declaration of the Monroe doctrine, that that subject could be obtained by attaching a bill pro- posing an appropriation with some low limit, and that would be regarded merely as a proposition from me through Congress to sa}' to the Administration: "If you buy the Danish West Indies at some time, here is the money to pay for them." Q. Then if I understand you, neither directly or indirectl}'', did you have any arrangement with Mr. Christmas or any acquaintanceship with him other than you have designated? — A. I had no acquaintance with Mr. Christmas other than 1 have designated. I had no connec- tion with him directly or indirectly, and he had no possible connec- tion with the preparation of the bill or the introduction of it. I notice one further thing in going over the report, that he mentions the name of a lawyer whom the report says was a representative of Mr. Gard- ner and his friends in Congress. I was never represented by any- body, and never had any connection with the lawver named. Q. That was Mr. Evans?— A. Yes, sir. ' . ^ Q. Do you know Mr. Evans? — A. I do not suppose I could iden Jfy PURCHASE OF DANISH ISLANDS. 61 him. He was here this morning^, and if I have an acquaintance with Mr. Evans it is to this extent, that some time in May or June follow- ing- the introduction of the bill, it was after the weather was getting warm, as I was coming out of Willard's Hotel one morning, the door- man handed me a card, and I am pretty clear it bore the name of Evans. 1 told him I was in a hurry, and we stepped out on the sidewalk and walked along for a ways, and he asked me if I thought any treaty for the purchase of the West Indies could be concluded at an early date, or words to that eHect, and 1 told him 1 knew nothing about it, and from what I read in the newspapers, there was some talk of it then, there was no prospect of it. Q. That is the extent of your acquaintance with Mr. Evans? — A. That is the extent of my acquaintance with Mr. Evans. By Mr, Richakdson: Q. Do you know anything about the International Press Associa- tion? — A. The International Press Association? Q. Or some such name. — A. I know some press association down here, but I do not know at this moment the name of it. Q. Were you a stocldiolder in it? — A. Yes, sir. Q. Do 3'ou know whether that press association or anybody repre- senting it had interviews with Captain Christmas? — A. I never heard of it; no, sir. I did not believe then and do not believe now there was any connection Q. You dp not remember the name of the association ? — A. I do not remember the name of the association. I do not remember the name of the gentleman now who represents it at the Capitol. That association, whether that is the name or not, represented here in Washington the Newark News, the leading paper, probably, of Newark, N. J.; the Trenton True American, the leading Democratic paper of my district, and I think some others. Q. You said that you did introduce a bill? — A. Yes, sir. Q. You introduced a bill. Do you remember the date of that introduction? — A. I do not remember the date of the introduction. Q. That will show for itself. Did you introduce but one bill? — A. I introduced but one bill. Q. That was in the Fifty-sixth Congress, last session, was it?— A. Yes; the last Congress. Q. Did you have any conversation with Mr. Hitt, in which he expressed regret that you had introduced the bill? — A. Afterwards, 3^es. Q. How early afterwards? — A. Mr. Hitt mentioned the subject to me. I do not know just when it was, but it strikes me it was pretty soon after the introduction. Q. It was the same bill we are discussing? — Q. That was the same bill. Mr. Cousins. This bill had been introduced before this gentleman called at your committee room whom you say may have been Christmas ? Mr. Gardner. Yes, sir. By Mr. Hitt: Q. Did you assent to the suggestion when I made it that it might be injudicious to have the bill acted upon or considered, and say that you had nothing but a general interest, having read about the question, and therefore had introduced it? — ^A. I did. 62 PURCHASE OF DANISH ISLANDS. Q. And when I pointed out the negotiations might be effected in a way that we would not anticipate, you said that was sufficient for you? — A. It was suggested that you file the bill and hold it, and 1 never asked you or any member of your committee to act upon it from then until now. By Mr. Richardson: Q. Up to that time $3,500,000 was all that had been offered? Mr. Gardner. I had no knowledge of that negotiation. The knowl- edge of the negotiation at that time came to me through Mr. Hitt, after the introduction of the bill. If I had any impression about it, it was that the price was much larger than was expressed in the bill, because in whatever I did about looking up the subject for the Gov- ernment of which I have spoken it strikes me that I ran across the fact that there had been previous negotiations and probabl}'- a treaty which put the price at $7,000,000, so I thought by fixing the amount at $4,000,000 I was getting fairly below anj^ price that had ever been considered. Q. Four millions was the amount stated in your biH?^A. "Four millions, or so much thereof as may be necessary," I think, is the phraseology of it. The preamble is all I wanted to introduce; I did not care anything about the bill. Q. The language is, "authorized to expend a sum not exceeding four millions of dollars?" — A. Well, whatever it may be. Q. That is the way it is stated in Christmas's report. TESTIMONY OF WILBUR C. BROWN. Wilbur C. Brown, sworn and examined: By the Chairman: Q. What is your place of residence ? — A. New York City. Q. What is your business? — A. I am in a number of businesses. 1 am president of the Lincoln Coal Company and connected with the White Mountain Paper Company and the International Fire Insurance Company. Q. Do you know Captain Christmas? — A. 1 met him, I think, once at the Manhattan Hotel. Q. Under what circumstances? — A. I think he introduced himself to me. Q. Were you living at the Manhattan Hotel? — A. Yes, sir; 1 have lived there since the burning of the Windsor Hotel. Q. Was he stopping there at the time? — A. Yes, sir; he was stop- ping there. Q. Was that the extent of your acquaintance with Captain Christ- mas? — A. I never had any conversation with him except on one occa- sion, when he came and introduced himself as Captain Christmas. He stated I had doubtless heard of him through Mr. Carl Fischer-Hansen. Q. Mr. Hansen was an acquaintance of yours? — A. Yes, sir; I had known him a number of years. Q. How often did you have a conversation with Captain Christmas ? — A. Never but the one time, when he came and introduced himself to me. Q. What was said in that conversation ? — A. Mothing whatever. He introduced himself as Captain Christmas and made no reference what- ever to his business. PUECHASE OF DANISH ISLANDS. 63 Q. Did you have any conversation with him then or at any other time about the purchase of the Danish West Indian Islands? — A. I did n©t. Q. Did you have any business arrangements with him? — A. None whatever. Q. You had no relations with him except those you have just now indicated? — A. None of any character. By Mr. Eichardson: Q. Mr. Hansen neither indorsed any contract nor guaranteed any contract between you and Captain Christmas? — A. No, sir. I had no contract with Mr, Christmas or Hanson or anyone regarding any- thing connected with the Danish West Indies. Mr. DiNSMORE. That is the only time you met Captain Christmas? The Witness. I used to see him in the hotel quite frequently when he would pass, and he would give a military salute, which I returned; but I never talked to him. STATEMENT OF HON. HENRY CABOT LODGE. By the Chairman: Q. Do you know Captain Christmas? — A. Shall I make a statement in regard to it? Q. Just go on and tell us what you know about this business. — A. Well, a year or two ago, I should say in 1900, Mr. Knox, whom I did not know, came to my committee room one da}" and introduced himself and Captain Christmas; he introduced himself first, and then introduced Captain Christmas. I ought to say, as is probably well known to the committee, that I have been for a long time very much interested in the matter of the Danish Islands and have introduced several resolutions looking toward their purchase, and reported one in 1898 for their purchase, from the Committee on Foreign Relations. Mr. Richardson. Do you remember at what price you reported it? Mr. Lodge. It was simply an authorization to buy; that is all. There was no price. It was an authorization to our Government to buy. We were very near war at that time, and the resolution, as 3^ou probably remember, was not acted upon. Captain Christmas said he had come to talk to me about the Danish Islands. He represented himself as the agent of the Danish Government and I told him I had nothing whatever to do with anything of that sort, that negotiations of that kind were wholly in the hands of the Executive, and the person he ought to see was the Secretary of State. He asked me if I would speak to the Secretar}' of State in regard to it, and I said I would. I spoke to the Secretary of the State, who, I think had either seen him before or heard from him, I am not sure which; but the Secretary of State said what I expected him to say and what I told Captain Christ- mas he would say — that he could have no dealings whatever with any unaccredited agent from the Danish Government; that if Captain Christ- mas had credentials from the Danish Government he had simply to produce them or come there with Mr. Brun, who was the Danish minister, and that if he had no credentials or did not come with Mr. Brun, that the Secretarj'^ of State did not wish to see him, and could by no possibility have dealings of any sort. I think the interview with the Secretary of State did not occupy ^4 PURCHASE OS' DANISH ISLANDS. three minutes, and he made exactly the statement I expected him to make. I told Captain Christmas that when be came bade to my com- mittee room, and I think he came once more to see me at my house and asked me if there was an}^ use in his remaining in Washington, and I told him not the slightest. That is the only knowledge I had of him at all. The Chairman. Those were the two interviews you had with him, one at your committee room and one at your house? Mr. Lodge. 1 will not be sure I did not see him three times. I remember the first time he came, and the time he came to ask whether there was any use of staying in Washington, and I told him that as far as I knew there was not the slightest. Q. Do you know of his having interviews with any other Senators or members of Congress ? — A, I do not. Q. He says hei'e in his statement, among other things, that the Gardner bill had been introduced in the House and did not go through, and you said to him that there were "evil spirits at work, namely, Rogers and his friends." Do you recall A. No; of course 1 made no such statement to him. In the first place, that is not the sort of language I am in the habit of using. 1 have no recollection of his saying anything about it. He undertook to show me, as I recollect, some attacks that had been made on him in some newspapers, to which I paid no attention. He may have mentioned Mr. Rogers in that con nection; I do not know. Of course all that statement in regard to Rogers and the 26 Senators, as far as I know, is a pure invention, and I do not remember anything about it; and I never have heard anything from him from that day to this until a week ago some newspaper cor- respondent told me tiiis statement had been hawked around among the newspaper offices and none of them had been willing to print it. Q. That is all you know about Captain Christmas in this connec- tion ? — A. That is the extent of my knowledge in regard to Captain Christmas. TESTIMONY OF MR. CARL FISCHER-HANSEN. Carl Fischer-Hansen, sworn and examined. By the Chair]\l\n: Q. Mr. Hansen, where do you reside? — A. No. 9 West Forty -sev- enth street. New York. Q. What is your business? — A. I am an attorney. Q. Are you acquainted with Captain Christmas ? — A. lam. Q. How long have you known him? — A. I will just make this state- ment: Captain Christmas has been over here three times. I met him the first time he was over here. I was invited by a friend in New York to come and meet Captain Christmas and his wife at a luncheon at the Lawj^ers' Club. That was in the summer of 1900 — in the early spring, I believe. He had just come with his wife from the West Indian Islands, and he stayed over in New York one or two days. I met him at luncheon that day, and the next day he left. Q. I wish you would go on and tell us in your own way your knowl- edge of Captain Christmas and what your relations with him have been. — A. I will be glad to do that. ^ Well, he left, I believe, the following day. The fact is I only saw him at that luncheon. Nothing PURCHASE OF DANISH ISLANDS, 65 was said about the islands or anything else. There were ladies and gentlemen there. However, it came out at the luncheon that I had written a book called American Laws, and he told me he would be glad to get a copy, and I sent to him at his hotel, I believe, a copy of that book. It must have been a couple of months after that I received from Denmark a novel written by him, with his dedication, whatever you may call it, on the front page. I read it, and I wrote him an answer thanking him for the book and expressing myself in regard to the story. About a month after that I received a letter from him, in which he said that he had a very important matter which he wanted somebody in New York City to represent him in; that it was a matter of international importance; that there was a great deal of money and a great deal of honor without much trouble for the right man. He said: " From everything 1 have heard of you in Denmark and America I believe you are just the man for that place, but I do not believe in writing, but I leave for New York in a few weeks, may be in a fort- night. I shall then come to your office and discuss the matter with you." Now, in the autumn one day Captain Christmas walked into mv office. Q. That is 1900?— A. That is 1900, yes; and told me he had just arrived and that he was stopping at the IVIanhattan Hotel, and that he wanted to see me regarding the matter he had written me about, and jokingly 1 said to him. "1 think I can guess what it is." I said: "It is pertaining to the West Indian Islands," and he said, "Yes, that's right." Well, he said, "I will tell 3'ou. Denmark is very anxious to sell, but by reason of the negotiations in 1867 that fell thronoh after Denmark had accepted the offer made by America, Denmark does not feel it could possibly offer those islands for sale again directly, but I have had an interview with Prime Minister Horring, and he told me that if I could bring about some overt act on the part of America — that is, make them take the first step — he would then appoint me as special agent for the sale." I said: "Well, it strikes me the proper way to conduct these negotiations would be through the Danish min- ister at Washington." Mr. DiNSMORE. Who would appoint you special agent; he or the prime minister? The Witness. Christmas told me the prime minister had told him that if he. Christmas, could bring about some offer or something, if he could make America take the initiative in the matter, he, Horring, would appoint Christmas Denmark's agent. By Mr. Richardson: Q. What time was that? — A. In the autumn of 1900. Q. Are you not mistaken about that? Was it not in 1899? — A. I may be, if you will pardon me. Q. I think 3'ou are mistaken in the date, that's all. — A. Yes; I beg pardon. It was 1899, because this report is written in 1900. The Chairman. It was October, 1899, Christmas came to the United States. Mr. Richardson. That is right. He is mistaken in the year. The Witness. Yes; I beg 3'our pardon; I am mistaken in the year. It was 1899. His first visit was in the spring of 1899, and the second visit I speak about now was in the autumn of 1899. I beg your pardon. 66 PURCHASE OF DANISH ISLANDS. Mr. Richardson. 1 did not want to interrupt you, but I wanted to get the dates correctly. The Witness. Then I said, "As a matter of fact, you have no cre- dentials." He said, "No; but 1 have Horring-'s assurances that if I can bring about some overt act on the part of America — if I can make them take the first step — Denmark will be willing to negotiate, and I (Christmas) will be made the Danish agent in the matter." I said, "Now, what do you want me to do?" "Well," he said, "about in this way: If you and 1 divide the work between us, 1 would," as he put it, ' ' take care of the Danish end, I would be Denmark's repre- sentative to receive anything that America might send there, and you, on the other hand, are to open the work here and see that America does make some offeror take the initiative." " Well," I said, "has anybody paid j^our trip over here? " At that time I knew Captain Christmas very slightly; in fact, I had only met him at luncheon. Pie said, "No, nobody. 1 paid my own expenses." He had a big lot of maps, and so on, and he told me of his knowledge of the islands, his surveys and researches in the Danish archives and the London archives, and he brought with him the entire literature pertaining to the West Indian Islands. "No," he said, "I have no official authority, but I am promised by the prime minister that if I can do what I am telling you now I could get it." I asked him then: "In case of a sale, what will be your compensation?" "Well," he said, "I do not know, but I know Denmark will pay lib- erally. It would depend, of course, upon the price America would pay." Well, I told him I would think it over, and the next day we met again. He came to my office. In the meantime I had seen Mr. AbnerMcKin- ley, who is a very intimate friend of mine — we meet daily — and I asked him if he would, in case the sale should be consummated or should be negotiated between Denmark and America, become associate counsel. 1 must say that Christmas said that if he got authority, if he made America take steps and would be made the agent of the Danish Govern- ment, the Danish Government would appoint me its official attorney. 1 asked Mr. McKinley if he would consent to be retained as one of the attorneys in that matter, and he told me: "No, Carl, you ought to know me well enough to know that I never permit myself to be retained in anything that pertains to the Government." " Well," I said, "that ends it." He said, "I will not permit myself to be retained," and gave this illustration: "The other day a man came over here and asked me to search a title for him, and he wanted to pa}^ a fee of $10,000, and incidentally wanted me to get an appointment for his son, and I told him never to come into the office again." I said, "This is per- fectly proper, because that is part of the platform upon which President McKinley was nominated and elected — the acquisition of the Danish West Indian Islands by purchase." He said that made no difference, and he would not have anything to do with it. I then spoke to Mr. Brown, who has just testified, and I told him the substance of the Christmas conversation. Colonel Brown was a very intimate friend of President McKinley. He got his title from being a colonel on Governor McKinley's staff when he was governor of Ohio. 1 asked him if he was going to Washington soon, and he said, "Yes." I said, "I wish j^ou would ask the President if they have any idea of buying the Danish West Indian Islands, because if they have all they have to do is to say so, and the islands are for sale; but they will not be offered by Denmark." Colonel Brown went to PURCHASE OP DANISH ISLANDS. 67 Washington the next day and spoke to President McKinley. Presi- dent McKinley had a long conversation with him, and was very much interested, and sent him over to Secretary Hay. When he came to Secretary' Hay's olhce, he told him he had been sent to have a conver- sation with him. He had a lengthy conversation with Secrctarj^ Hay about it. He returned to New York and told me that America did intend to buy those islands. Then I told Captain Christmas that I would accept his proposition, and he said, " Now, so far as compensa- tion i;s concerned " 1 said, ••' I do not want a single cent," 1 put it this way: "I will get my dinner whether the islands are sold or not, for lam a Dane — that is, I am an American citizen, but 1 was born a Dane — and naturally it would be a very nice thing for me to be attorney." All 1 wanted him to do was to guarantee me that if he gained his end Denmark would appoint me as its attorney in these negotiations. He said he surely would. Then he went to Washington, where he had an interview with President McKinley, and President McKinley sent him to Secretary Hay, and he had a very lengthy interview with Secre- tary Hay, the result of which was Secretary Hay sent him to Admiral Bradford and told him to work together with Admiral Bradford in going over the maps and charts, etc., and Admiral Bradford was to report to Secretary Hnj. Christmas did as he was told, and a few days afterwards came to New York. First he wrote me a letter in which he thanked me for what I had done, etc., and was very jubilant, and a few days after he came to New York and told me as the result of his trip to Washington he had seen the President and he had been himself to Secretary Hay, and Secretary Hay had shown an interest in the matter and sent him to Admiral Bradford, and Admiral Brad- ford had sent in a favorable report, and Secretar}'^ Hay had ordered him to leave for Denmark forthwith, telling him that he would send instructions to Secretary White, of the American legation in London, by mail forthwith, and he was to accompan}' him to Copenhagen. You must remember I did not hear this conversation. The Chairman. This was related to you afterwards? Mr. HiTT. Have j^ou that letter — you say that is in the letter from him? The Witness. No. He said this to me when he returned from Washington — when he returned to New York. This was Thursday. He then made preparations to sail the coming Saturday, and he was very jubilant, very happy, and he considered it was nearly all done. This was Thursday, and on Friday I came up to the Manhattan Hotel and I met Christmas in the lobby and he looked ver}" despond- ent. 1 said: "What is the matter?" "Oh," he said, "It is all oil"; it is all off." I said: "What is all off?" "Well," he said, " I have just received a letter from Secretary Hay in which he tells me he can have no negotiations with me because I have no credentials. He tells me not to go to London and not to meet White, and the whole thing is off." I said: "This is a very sudden change, I think." "Yes," he replied, "1 am disgusted," and so forth and so on. Friday night he and his wife spent the evening at my house until about 1 o'clock, and on Saturday morning I went down to see him oft' on the steamer, and I never saw a more despondent face in my life than he had on — almost tears in his ej^es — and he sailed. I never had a line from him from Denmark, and I had every reason to believe he lied to me, and it was about the middle of December when 68 PUECHASE OF DANISH ISLANDS. I was walking- from my — I should say in this connection that he had also told me that on a trip over here he had met on the steamer, din- ing at the same table with him, a son-in-law of Mr. Seligman, of New York, a gentleman by the name of Wasserman, and that he had unfolded ail his plans to him," and in the course of it he had made an agreement with him whereby if anything came of the sale Seligman Brothers were to be the bankers, and the money was to be paid by the American Gov- ernment over to them, and they were to have a commission on it and certain honors from Denmark. He was in the habit of promising everybody knighthood, and I believe all the Seligmans were to be knighted. 1 will now go back. He sailed, and I heard nothing from him, not even a line of thanks for the courtesies in our own house, and I was led to believe he had lied to me. In fact, I never believed that Mr. Hay would do one thing at one time and the next moment he would do the contrary. So one morning in December I was walking from my house down to my office on Fifth avenue, and as I came to about Forty -seventh street a gentleman said: " Hello, Mr. Fischer- Hansen," and I turned around and I saw a gentleman whom 1 knew by sight, because he lived in the summer time where I lived — Elberon, N. J. It was Mr. Seligman, and he approached me and introduced himself and said: "I know we have some mutual interests, and I just want to ask if you have heard from Captain Christmas lately." I said no, that I had not heard at all. He said: "Things are getting along finely, are they not?" and I said "Yes;" and then 1 said: "Have you heard from him?" "Yes," he said; "I have had numerous cables, and I have had a letter that he and White are doing fine work in Den- mark and the whole thing will be soon settled. They are now going- through the archives. Mr. Christmas sails for America in January," and he named the steamer. By Mr. Hitt: Q. Who was this? — A. Mr. Seligman. Q. What is his first name? — A. If you know any of the Seligman names 1 can tell you which one. I know him very well now, but 1 do not remember his first name. I will get the name later. He told me then what steamer Christmas was sailing on. I said nothing. I did not let him understand 1 knew nothing, and that everything I did know I had learned from him, and I watched for the steamer, and in Jaiuiary this steamer arrived. I expected that Christmas would call at my office. I should say first Colonel Brown spoke to President McKinley and told President Mc- Kinley Captain Christmas was vouched for by Fischer-Hansen. I enjoyed the honor of President McKinley's friendship, and I stood sponsor for Christmas with the President; so when I had this conver- sation with Seligman I went to Washington and I told President Mc- Kinley I would not be responsible for him any longer, and I would have nothing to do with him, and I would not act for him any longer. By Mr. Richardson: Q. What date was that?— A. That was, I believe, a couple of days before Christmas. I remember Mrs. McKinley was coming to New York; she had knit a pair of small slippers, and she came to New York to buv Christmas presents. It was in 1899. Q. "It was a few days before Christmas ?— A. Yes, a few days before Christmas. The President said he was sorry I had been taken in. PURCHASE OF DANISH ISLANDS. 69 Well, I told him that I was sorry myself, but that I just felt it my duty to tell him I could not be responsible for Captain Christmas any longer. So when this steamer arrived Christmas did not call at my office. I waited a whole day and finally 1 wrote a letter to his hotel. I found he had registered at the Manhattan Hotel, and I asked him to please call and see me that day. He called me up by telephone and told me he would be at m}^ office at 2 o'clock that day. He came to my office at 2 o'clock and said: "Now, I just want to tell you this: I am the representative of the Danish Government. The Danish Gov- ernment has forbidden me to have anything to do with any private individual or anybody whatsoever" Q. This is January, 1900?— A. This was in January, 1000— "and whatever service j^ou may have rendered I shall settle with you pri- vately, but as far as having any connection with the West Indies sale now I am unable to have an^^thing to do with private individuals, and if anybody tries to operate against the sale I have strict orders to report them to the Government immediately." I said: "I wish you success," and that is all. He told me he would call again the follow- ing day, but he did not. (At this point the witness's testimony was suspended in order to hear a statement from Senator Lodge.) The Chairman. Now you may resume your narrative. Mr. Fischer-Hansen. 1 should say in connection with my trip to see the President, when I told him I would no longer stand responsible for Christmas, two days afterwards the President asked Colonel Brown if he had anything to do with Captain Christmas, and Colonel Brown said, "Not in the least;" and he said, "I do not want you to have any- thing to do with him," and Colonel Brown came and told me that. Q. Did you have any subsequent dealings with Captain Christmas ? — A. Yes. Q. Go on and tell us about them. — A. He did not call. Then I saw the next day in the New York Times that he had gone to Washing- ton, and prior to leaving on the night train he had made a state- ment that there was a certain Danish-American in New York City who was trying to check the negotiations between Denmark and America about the sale. When I came to my office I saw a gentleman whom I knew, and asked him if he had seen what that interview stated, and he said, " Yes." He said: "It does not mean you, but it means a fel- low by the name of Gron, and didn't I know that there was a scheme on foot between Gron and Rogers and some people to get into this deal." I said I never heard of that. He said: "That means Gron," and that ended that. A few days afterwards he told me for the first time that there had been prior negotiations, and Christmas had closed with them, Avhich I knew nothing about. Then Christmas went to Washington, and I saw nothing and heard nothing of him until one day I received this tele- gram. It appears he came down and found all the doors closed and nobody would have anything to do with him. He stayed quite a while, and then he sent this telegram to me: Washington, January 12. To Fischer-Hansen, 51 Broaci^street, New York: Can you come here? Wish speak with you. Christmas. 70 PURCHASE OF DANISH ISLANDS. So I came to Washington, and he told me that he was sort of stranded; that nobody would have anything to do with him; that Mr. Lodge would not see him, and that Mr. Hay and the Danish minister would not see him, and that President McKinley would not see him; and he had been told by Senator Lodge, for heaven's sake to get out of town. I said: "What do you want me to do?" He said: "I want you to open these doors again." I said: "Thank you. Captain Christ- mas, I have had enough dealings with you. I will have nothing more to do with you." I went back to New York. He remained behind, and a few days after The Chairman. What day? The Witness. In the meantime 1 learned from Denmark that he did represent Denmark and when he came to Denmark he made so much impression upon Horring that he did give him credentials and appointed him special agent for this sale, and Horring had told him to go to America after White's visit, and put himself at the service of the Government here and to bring with him all the papers, etc., so when he sent for me to come to Washington 1 went down and I told him 1 would have nothing to do with him anymore, and I told him plainl}'^ why, and he apologized to me and said: "If you knew the situation you would not blame me. I have put everything in these islands and it means a great deal to me," and so forth and so on. Mr. DiNSMORE. You had learned prior to this interview with him that he had been made the official representative of the Danish Gov- ernment? The Witness. Yes, sir; I learned that from authentic sources in Denmark. As a matter of fact, he did represent Denmark, while he did not before. So I said I would have nothing to do with him cer- tainly. A few days afterwards I received a telephone to please come to the Manhattan Hotel in New York to see Captain Christmas, who was lying dangerously ill at the hotel. I went up to the hotel in New York and saw him. He was in bed. His wife was in there, and he then told me: " I will just tell you, Mr. Hansen, you will have to come in here and help me." I said: "I can not help you, and I will have nothing more to do with you." He said: " You can not afford to put yourself in that position." I said: " What can I do, in the first place, and in the second place, have you given me any reason to trust you?" "Well," he said, "let bygones be bygones, and I promise I will do so on and so on." I said positively I would have nothing more to do with him, and I went home. In the afternoon I was sent for again, and he then asked me again if I would not come in and act as attorney for him. I said: "I will not, but I will tell you what I will do. You are now the authorized agent of the Danish Government. If you will appoint me attorney to the Danish Government and notify the Danish Government now of your having done so, and write the letter, and permit me to mail that letter, I will come in and ^ct as attorney for the Danish Government." He said he was perfect^ willing. I made an appointment to meet him again the next day at his hotel, and he had then written a letter to Prime Minister Horring, in which he announced to Horring that he had appointed me, and he gave me that letter, in fact he sent it to my office. It was copied in my copy book, a copy of which is here, and I mailed it myself. Then he told me he had been taken very sick in Washington, and that a bill called the Gardner bill had been intro- PUECHASE OF DANISH ISLANDS. 71 duced by Mr. Gardner, and that it was time for somebody to be there to deliver arguments and to explain the maps and entries from the archives of Denmark, and so forth and so on; but by reason of con- stant illness he had found it necessary to employ a former United States Congressman by the name of Richard F. E\ans, and Richard P. Evans was to take charge of the matter and stand in his shoes while he was sick in New York. He said: " You know I have no monej^ so I have made this arrange- ment with Evans. I am to receive 10 per cent commission on the sale, and I made this arrangement with Evans to pay $50,000 in case the sale is consummated this session. Now, Evans says he is willing to do it on a contingent fee, but he saj^s I am a stranger to him, and that I am a foreigner, and that the newspapers have spoken anything but prettily about me, so 1 want to have somebody guarantee that amount to him. Now," he said, " I expected the Seligmans would do that, but they have refused. Now, if you will act as guarantor on the contract I will appreciate it, and you can see the position I am in. The bill has been introduced, and it is in the Committee on Foreign Affairs, and has been reported favorably from there, and it is now before the Finance Committee, and I expect it will be reported from the Finance Committee next week." I did not know matters had gone as far as they had, and I said: "Yes, if you will assign to me 150,000 out of \'our commission I will guarantee this contract of Mr. Evans." He said, "All right," and he did it, and called Mr. Evans up b}- telephone then and there, and Mr. Evans said he would want to inquire into my standing first and know my financial responsibility, and the next day I think he replied by telephone that it was perfectl}'^ satisfactory. That afternoon Christmas sent me this contract entered into with Evans, which I indorsed. I sent my secretary to Washington to deliver that contract to Evans. Q. You indorsed it?— A. 1 went on the contract as the guarantor for that amount in case the islands were sold during that sitting of Con- gress. The contract is here; a copy of all the papers is here. I then waited for about a week or so and 1 saw nothing about any bill having been reported from the finance committee, and I heard nothing about any argument having been delivered, so I said to Christmas that I thought I had better go to Washington and see for myself, and I would look up Mr. Evans. I looked up INIr. Evans, and 1 came to a room where there were a number of desks and a dozen names on the door, and a little man who was sitting at a desk who had no private office said he was Evans. In writing to him I had called him "hon- orable" because persons had told me he was a former Congressman. I do not mean to say anything against the man, but he did not look anything more honorable than most insurance agents do. I mentioned something about it and finally I sent a telegram from the Ebbitt House to Christmas to come to Washington immediately, and he answered: " Why should I come; 3"ou are there?" I then sent another telegram, "Come immediately. If I did not want you 1 would not have sent for you," and he came, and I told him in substance that I did not believe he desired to keep the services of Mr. Evans, and if he did I should insist upon getting that contract back — well, I had my reasons, and I did not think I cared to have any contract of that kind with Mr. Evans. Mr. Evans in my conversation with him showed absolute ignorance of the Danish islands affair, and I I 2 PUKCHASE OF DANISH I5LA>'DS. faQed to see how he could deliver an intelligent argument. He hardly knew where they were. The result of that was that Captain Christmas and I went to Mr. Evans and Christmas reproached Evans, and Evans denied it all. and they had a heated argument on the stairway and Evans refused to give up the contract. Well. I told Evans that 1 con- sidered the contract canceled so far as i was conc-emed. and 1 went back to }^ ew York with Christmas. A few days afterwards Christmas wrote him this letter By ^Ir. DcfSMOBi:: Q. To whom ! — ^A. To Evans. This is a copy of the letter: MAXHAiTAy Hotel. Xet»- Yokk, Marvk S6, 1900. BiCHAED P. EtaXS. 110-5 F Stmt XW., Wa.*hmgion. D. C Deab Sis: Although it is hardily necesary for me to add anything to what I have alnea^iy =aid to yoa in my ojnvei^ation with you on last Sarariay in the presence ..- :^_ ^ __, .. _- „.. ..uced in Gii.-- . -.- . . C'Tiigresanan Gardner. 1: . ze purchase of the West Tthjiati IsLm-ls. _ me farther that yoa were one of the leading spirite in the AsEOciated Presi>. and that as the coontry d^nanded the islands, yoa wmdd p^mit yoarboreaa to express that s^itiment. As the basis of aH this yoa sccoeeied ii: '-• from me a ccmtzaet not to speak the moneys that y oar c-ici-conspirar: IS oa-r _ ay from me at Tarioas tim^ Oi coarse my plain duty towar»i yoa W'._- ^ ^ -ivJ only to lepadiate my ocmtzact with yoa, bat to proceed agscn^ you criminally. I d«;» the nrst now. or ratl^r aMnn my verbal repodiatioii to yoa of last Saturday, the latter I am prevented frcan dsxag by reason c^ the fart that 1 leave for Europe in the course of a few davs. W. CeEISTKAS r^TECSiyCS; HOUCTELD. Witness: Cabl Fi5"siar. Q. Is that a copy of the original ? — A. Yes. sir. Q. Where did you get this f — A. At the Manhattan HoteL Q. Christmas gave it to you f — A. Yes. sir. Q. At what time f — A. At the time he wrote it. He wrote two. and mailed one and gave me that. This is dated ""Manhattan Hotel. 2rtth of >larch. li>X»." I also found on that same trip that no bill had been introduced before the Committee on Foreign Affairs or the Finance Committee, and that there had only been introduced the Grardner bilL That ended that. By Mr. Eichardso?*: Q. TMs paper is in Christmas*? own handwriting? — A. les. sir: that is Captain Christmas's handwriting. He remained in Xew York, and when I made this contract that when I was attorney for the Danish Government I was to have f20.00C>for my services, not wishing to have PURCHASE OF DANISH ISLANDS. 73 any dealings with Evans, although I personally did not know him, at the same time I did not wish to deal with him, I retained an attorney in New York who was thoroughly familiar with the question of the Danish archives and can read papers written in Danish. Q. Who is he? — A. Mr. Reymert. I gave him half of my contract, and another half went to Mr. Condict. Q. Where is he — in New York? — A. Yes, sir; Silas A. Condict. By the Chairman: Q. Was there anything more done after that? — A. After that noth- ing more was done. He finally went home. Q. Well, now, what services did you render? — A. I rendered no services but those I have spoken of to you. Q. What services were you to render for this fee? — A. For the $20,000? 1 was to render services in connection with the sale. He had several bound documents and maps and charts, copies from the archives that I was to translate, and 1 was to go down and deliver these arguments and make explanations in general. He was sent over by the Danish Government, as he termed it, to put himself at the service of Secretary Hay. Q. What do you mean — before whom? — A. Before these different committees. Q. Committees of Congress? — A. Well, I do not know what com- mittees he had in mind. He said it would be necessary to have trans- lations made, and there was a good deal of literature on the subject that he had with him that had come from the Danish archives, and England as well. By Mr. Hitt: Q. What wore the arguments to support?— A. Not exactly argu- ments, but explanations. Q. For whom and for what, to ol>tain what? — A. As I understood it from him, I had never had anything to do with Government deal- ings before Q. You were employed to do a work, and you stated it was to make arguments. Where? — A. He explained to me that he understood that the bill was introduced, and the one who introduced the bill would be invited to explain matters before the committees, and as he did not speak English very well he wanted some one to do so. The Chairman. This was to be before committees of Congress in support of the bill for the purchase of the islands ? The Witness. Here is one illustration: He said: "Now, I hold the harbor of St. John is preferable to the harbor of St. Thomas," and he gave all the reasons from the maps and charts. He said that this was one reason why those islands are so valuable. Mr. Hitt. It was to argue that before committees of the House that that fee of $20,000 was paid? The Witness. No; I was not to have a fee of $20,000. I was to have nothing; I was not to have a cent. By the Chairman: Q. I understood you to say that he made a contract with you as counsel to pay you a fee of $20,000? — A. But on the condition that I was then to have the right to employ whom I should like and pay them, because H. Rep. 2749 6 74 PURCHASE OF DANISH ISLANDS. Q. Employ them to do what? — A. To make these explanations. Mr. HiTT. To appear before committees and argue in behalf of some proposition? The Witness. Not to argue, but to explain the proposition, explain the history of the islands, the localities of the harbors, etc. Christ- mas had spent months there in surveying. By the Chairman: Q. You employed two other counsel, Mr. Reymert and Mr. Con- diet? — A. Yes, sir. Q. Were they Danes? — A. Mr. Reymert is a Norwegian, but the Norwegian and Danish language is the same. Q. What did you employ those gentlemen to do? — A. To do that work, because I have never appeared before any committees before. Q. Did either you or these gentlemen appear before committees of Congress? — A. No; because Christmas had been informed that there were no committees. He said then that the bill had already been in the Committee on Foreign Affairs and it was now in the Finance Committee. Q. Did either you or these gentlemen have any dealings with mem- bers of Congress relative to this matter? — A. Nothing. I have never seen anybody. By Mr. Hitt: Q. Had you reason to believe you were supposed to be a man so familiar with Washington and its affairs that 3^ou were worth $20,000 for your services, and did not learn whether there was such a bill in a committee either in the House or Senate? — A. I beg 3'our pardon; he came from Washington with this statement that he not only made to us, but made to his Government, that bills were now in the commit- tee. There was talk about his fee was to })e $500,000, so while $20,000 was a big fee for two lawyers to make arguments, it was nothing in comparison with what he was to receive. By Mr. Richardson: Q. Was he to receive $500,000?— A. He told me the Danish Gov- ernment was to pay 10 per cent for doing what he was doing. Q. What was that? — A. For inducing America to take the first step in sending White to Denmark. That was the beginning of the nego- tiations from his point of view; in fact, from the Danish point of view itself. By the Chairman: Q. Did you have with Captain Christmas at any time any cash trans- actions; did you get money from him? — A. No, sir; I never got a cent. Q. Have you advanced money to him? — A. On the afternoon that he left New York for Denmark the last time he asked me if I would not loan him $800, because his remittance from Denmark had not come and he was to leave the next morning. It was 12 o'clock at night, and I gave him my check for $800, which was cashed at the Manhattan Hotel, and he left the next morning. Mr. Richardson. That is what date? The Witness. The last time he left for Denmark. The Chairman. That is the only cash transaction you had with him? The Witness. That is the only cash transaction I had with him. PURCHASE OF DANISH ISLANDS. 75 When I went to Washington, I paid my own trip. He borrowed $800 from me, and 1 had his receipt. He told me he was in a terrible dilemma; that his remittances had not come, and he had to pay his hotel bill, and that he would certainly refund it to me as soon as he got back to Denmark. By Mr. Hitt: Q. Have you that receipt still? — A. Yes, sir; that is all I have. Q. And the book of fiction? — A. And the book of fiction. By the Chairman: Q. And the |800?— A. No; not the 1800. I am sorry to say he has that. Q. You guaranteed this contract for Evans? — A. Yes, sir. Q. Did 3'ou guarantee any other contract? — A. No, sir; that's all. Q. Do you know from Captain Christmas's conversations of any other parW in Washington with whom he had dealings outside of Evans? — A. Yes; 1 do. Q. Who? — A. He told me that he had had dealings, and when he refers in that letter to scamps and swindlers he referred to two differ- ent parties. He told me that he saw that it was impossible for him to sell the islands directly, so he was now going to do it indirectly. He said that one day he was sitting at the table with his wife, dining, and at the table next there sat an elderly lady and a gentleman about 25 or 30 and a little girl, and that this little girl came over and kissed Mrs. Christmas, and an acquaintance was started in this way, and after dinner they were introduced. He said that the gentleman was Mr. Knox and Mrs. Knox, and Christmas immediately told him that he had some islands for sale. Knox immediately told him that that was a very small matter; he could take care of that ver}^ comfortably; that he knew a man who knew Senator Hanna — who was on friendly terms with Senator Hanna — and was to be made second secretary to some legation when some vacancy should occur, so Mr. Knox was to have |50,000, Christmas told me, for his services. He did get a little cash — I think he went out and cashed a five-dollar check for Mr. Knox — and one day became and said he wanted $i200, as he wanted to have a new roof put on his stable, and Christmas did not have $200, and I believe that that ended their connection. Q. That is two— Mr. Evans and Mr. Knox. Who else?— A. Then there was a gentleman whom Captain Christmas, I was told, met in a saloon. His name was Nelken G. Walberg. Christmas told him he had some islands for sale, and Mr. Walberg told him that was just in his line; that, in the first place, he controlled a certain news bureau, was a man of great influence, and Christmas that day let him have $40. By Mr. Dinsimore: Q. Ma}' I ask you right at this point whether or not this informa- tion was conveved to you by Christmas before or after the agreement for the $20,000?— A. This was after my agreement for $20,000. My agreement for $20,000 was before I saw Evans or knew anything about these people, and when I came down and saw that none of these things that Christmas had said had taken place, no bills had been reported, etc. Q. But you did let him have $800 after these transactions? — A. Yes; on the night he left. 76 PUROHASB OF DANISH ISLANDS. Mr. Richardson. That was after these other transactions ? The Witness. Yes, sir; at night, at 12 o'clock. He left for Den- mark the next morning. By the Chairman: Q. Were there any other parties than those three you learned he had dealings with? — A. No, sir; it was this man Nelken Walberg who introduced him to Evans and Evans and Christmas had an interview on the stairway about his getting money out of Christmas to go to Evans, and Evans disclaimed having received a cent of it. Q. Then you do not know, from your conversations with Christmas and your intimacy with him, of any parties in Washington with whom he had dealings except those three parties? — A. Not at all. Q. Evans, Knox, and Walberg? — A. Not at all. I never saw Mr. Walberg or Mr.' Knox. I only saw Mr. Evans after the contract was signed. By Mr. Hitt: Q. Was there any payment of money by Christmas to Walberg? — A. Christmas claimed Q. That is the way he subsidized the American press? — A. Yes. Mr. Christmas tells me he gave him $40 one day, and another day $25, and another day $15. Walberg told him this money was to go for cer- tain purposes, to gain the good will of Mr. Evans, who was one of the most influential men in Washington, and Evans, on the day I went with Christmas to Washington, disclaimed that he had ever received a cent of it. Q. Did he get any money for that purpose and say afterwards he had applied it to subsidizing the press? — A. No; his only connection with the press was his connection with Walberg. Q. Was he the press? — A. 1 know nothing about him. I do not know who he is. Q. Was he with the International Press Association; was that on his card? — A. I do not know. I never saw him or his card. He told me this Mr. Walberg had a seat where the reporters sit in the House of Representatives, I believe. By Mr. Richardson: Q. Mr. Hansen, what is the date of the contract made between Evans and Captain Christmas? — A. March 12, 1900. Q. Did you not meet Evans then? — A. No, sir; I did not. • Q. When was that contract signed? — A. Christmas had it in his possession and it was signed by me in my ofiice, and a man from my office was sent to Washington to deliver it to Evans, and returned with one copy for me signed by Evans. I did not see Evans until at least a week and a half after. Q. It was a week and a half after you made the guaranty before you met Evans? — A. 1 never met him or saw him before. I made it on the understanding I was their special attorney, etc. Q. What was the date of that guaranty of the payment of the $50,000 to Evans? — A. That is in the same contract, the 12th of March. Q. And that was signed in New York City ? — A. Yes, sir. Q. In what place? — A. It was signed at my office, 55 Liberty street, New York, by me, and my man took it and went to Washing- ton and delivered it to Evans, and Evans signed on the same day. PDK0HA9E OF DANISH ISLANDS. 77 Q. Had Christmas signed it when you signed it? — A. Yes, sir. Q. And Evans? — A. No; he had not. He signed after I did. Q. Did Evans sign it in New York? — A. No, sir; he signed it in the District of Columbia. Q. He had not signed it when you guaranteed it? — A. No; he had not signed when I guaranteed it. Then a man from mv office went down and delivered it to Evans, and Evans kept one co})v and signed the other, and ni}" man brought the other one back. It was about a week or a week and a half when I went down to Washington and saw Evans for the first time. Q. Where is I\Ir. Reymert? — A. He is here. Q. What was your contract with Mr. Reymert? — A. It was to take the place of Evans with me. Q. He had a contract for 150,000 ?^A. No, sir; $10,000. Q. And you guaranteed the contract? — A. He had my own contract; 1 had a contract for $20,000 and he had a half of that. Q. Whatis the date of that contract?— A. The 21st of March, 1900. Q. Have }^ou a copy of it here? — A. Yes, sir, Q. Will you read it? — A. You mean my contract w th Christmas or m,y contract with Mr. Reymert? Q. I want both. This agreement, entered into this 26th day of February, 1900, between Capt. W. v. Christmas Dirckinck-Holmfeld, of the Manhattan Hotel, city, county, and State of New York, party of the tirst part, and Carl Fischer-Hansen, of 55 Liberty street, city, county, and State of New York, party of the second part, witnesseth: Tliat in consideration of the sura of one dollar each to the other in hand paid, receipt whereof is hereby acknowledged, they agree as follows: Party of the tirst part, as representative of the Danish Government in this country for the sale of the Danish West Indian Islands, St. Thomas, St. Cruiz, and St. John, to the United States of America, to employ, and hereby does employ, party of the second part to act as his counsel and attorney in said matter from date of this con- tract until said sale shall have been completed, and to pay party of the second part for such services the sum of twenty thousand ($20,000) dollars cash. Said $20,000 to be paid out of whatever commissions party of the first part shall receive from the Danish Government for his services to them in the negotiations of said sale, immedi- ately upon the receipt by party of the first part of such commission. Said payment of $20,000 by party of the first part to party of the second part to be inclusive of and to cover all disbursements and expenses defrayed by party of the second part in this matter, excepting such cash money as may have been loaned by party of the second part to party of the first part; such loans to be excepted fiom this contract and to be repaid according to whatever private understanding there may be between the parties regarding them. Party of the second part, in consideration of above, to give whatever legal services said matter may need, and which it is in his power to give, and in every way to assist and aid in the successful outcome of the negotiations for the sale of said Danish Islands to the United States Government and to pay his own disbursements as the case proceeds. It is further agreed between the parties to this contract that if said sale should not be consummated during the present Congress, but party of the first part should be retained by Denmark to continue negotiations in the future after this Congress shall have ended, then and in that event this contract shall continue binding upon botli parties thereto. It is further agreed, that if negotiations should be terminated without the above- named sale having been consummated, party of the second part is to have no claim upon party of the first part for whatever disbursements or expenses he may have suf- fered in connection with said negotiations, except as herein provided for with regard to personal loans; but such disbursements to be borne by party of the second part alone. Whereunto we have set our hands and seals this 26th day of February, 1900. W. v. Christmas Dirckinck-Holmfeld. [l. s.] Caul Fischer-Hansen. [l. s.] Witness: Edwabd Hewbtt. 78 PURCHASE OF DANISH ISLANDS. Q. What is the date of that contract with Mr. Reymert? — A. This is not a contract. This is an affidavit of Mr. Reymert. Q. Will you read the affidavit? Borough of Manhattan, dty, County, and State of New York, ss: August Reymert, of No. 31 Pine street, city, county, and State of New York, being duly sworn, deposes and says: I am an attorney and counsellor at law, having practiced as such in the city of New York for upwards of twenty -six years. I am acquainted with Carl Fischer- Hansen, esq., and also with Capt. Christmas Dirckinok-Hohnfeld. I became ac- quainted with the latter through his introduction by Mr. Fiseher-Hansen. I was requested by Captain Christmas to become one of the attorneys in the matter of the sale of the Danish West Indian Islands to the United States Government, in which he claimed to represent the Danish Government. I was to have for my services as attorney the fee of $5,000 in case the negotiations should come to a suc- cessful close during the present session of the then sitting Congress. I told Captain Christmas that as he had not shown me any credentials to the effect that he did rej)- resent the Danish Government, and as he was personally unknown to me, I would only accept his proposition if Mr. Fiseher-Hansen, who I knew well, would go surety for the $5,000. Mr. Fiseher-Hansen agreed to do this, and a contract was entered into between Captain Christmas and myself in which Mr. Fischer-Hansi-n appeared as surety, and Mr. Fiseher-Hansen besides gave me personally his note as collateral for the sum of $5,000. The contract was dated and sealed on the 21st day of March, 1900, and expired on the day of June, 1900, the date of the dissolution of Congress. On the same day I entered into a contract with Mr. Fiseher-Hansen, according to which he was to pay me the sum of $10,000 for services rendered in case the Danish West Indian Islands should be sold to the United States Government during the then sitting session of Congress. Mr. Fiseher-Hansen gave me as security his per- sonal note for $10,000. I again repeat that I would never have entered into this contract except for the fact that Mr. Fiseher-Hansen went on it as surety and indemnified me by putting up his personal note as collateral for the full amount. August Reymert. Sworn to before me this 24th day of December, 1900. [seal.] Alfred E. Smith, Notary Public, Westchester Co. (Certificate filed in New York County.) Borough of Manhattan, City, County, and State of New York, s.s-.- I, Carl George Weaver, 57 West 124 st.. New York City, hereby certify that I have compared the above copy with the original instrument and that I found the same to be a correct copy. C. Geo. Weaver. Sworn to before me this 31st day of Dec, 1900. James J. Thornley, Jr., Notary Public, Kings County, N. Y. (Certificate filed in New York County.) The Chairman. What was the occasion of his making that affidavit? The Witness. Because when Christmas came from Denmark the last time he denied to the Danish Government that I had ever had any connection or rendered any service, and it was to substantiate the claim to the Danish Government that I got it, so as to make it part of my report. This is a copy of the report I sent to the Danish minister in Washington, Mr. Brun, a statement of my connection with the matter, a copy of all the docitments in the matter, and this is for the committee. Mr. DiNSMORE. What is the date of that affidavit? The Witness. The date of this affidavit is the 2J:th of December, 1900. By Mr. Richardson: Q. Did you have any further contract with Mr. Reymert than that? — PURCHASE OF DANISH ISLANDS. 79 A. Well, Mr. Reymert did have a contract, which contract this affi- davit Q. What was that contract? — A. That was to the eflfect stated in this affidavit. The contract has been lost, and I merely wanted an affidavit from Reymert to the eflfect that the contract was lost, so that Christmas could not deny the fact. Q. Did Mr. Reymert come to Washington to do anything in con- nection with the matter? — A. My best recollection is that he was here once. Q. What time was that? — A. This was at the time Christmas had told me and him that a bill had been introduced by Mr. Gardner, and that this bill had passed through the Committee on Foreign Affairs and was now in the Finance Committee, and Rej^mert disputed that, and we went to Washington to convince ourselves whether there was any such bill introduced or not. We found, while there had been a bill introduced, no such bill had ever been in the two conmiittees. Q. Do you know of any other contract that Mr. Reymert had with Christmas? — A. No; he did not have any other. Q. In March, 1900, were you the attorney of the Danish Govern- ment in the matter of these negotiations? — A. What date, please? Q. March, 1900?— A. Yes. Q. You were their attorney ? — A. Yes. Q. You describe j^ourself as attorney in the Evans contract. — A. Yes, sir; before that contract was executed Christmas had appointed me and had notilied his Government he had appointed me as attorney. Q. Did you write the contract for Evans? — A. No; Evans had written that himself. I simply signed it. It was written by Evans, and Christmas had it in his possession. Q. Did Christmas tell you what Evans was to do or anyone else was to do for him in the matter of the sale? — A. He simply said that he had been taken sick and was ill and he had had numerous conversa- tions with Senator Lodge and other Senators who wanted information on the subject; and as he was sick and therefore unable to be at his post, he had found it necessary to delegate those duties to Mr. Evans. He told me he had daily interviews with Mr. Lodge and diflCerent Senators and different Congressmen. Q. Where did Christmas say the money was to come from with which to pay Evans the $50,000? — A. That was — Christmas had a con- tract with Prime Minister Horring that he was to receive 10 per cent on the sale. Q. Was that contract in writing, or do you know ? — A. I know that contract existed, and it is the understanding in Denmark that that is the fact. Q. That contract is not controverted ? — A. No, sir; never has been. Q. And he was to have $500,000 if the sale was consummated? — A. Yes; and I got a letter from Christmas the other day in which he tells me he will get it. Q. What is the date of that letter? — A. The date of that letter is March 2 of this year. It is not translated, but I can read it to you if you would like. Q. I wish you would read it, and state whether or not Captain Christ- mas says that the report which is being printed in the Danish papers, if there is such a report, and what we purport to have here is his report to the Danish Government. — A. It is. 80 PURCHASE OF DANISH ISLANDS. Q. Now, will you please read that letter? Copenhagen, March 2, 1902. Dear Fischer-Hansen: Now the sale of the islands is so nearly concluded that there is not the slightest reason to believe that it will not go through, but the oppo- nents of the sale have developed good activity and have used means exceedingly mean. Among other things, they have gotten hold of an official report which I wrote in 1900, after the cabinet change in Denmark, and they made all the scandal out of it they possibly could. Nils Gron has himself cabled long quotations of this report to the American newspapers. As a set-off, I have furnished a declaration offering to substantiate same, with an affidavit that no member of the Congress in Washington, either of the House or Senate, is in the least interested in the sale of the islands. I do not believe that these machinations will do much harm beyond some scandal at home, and Gron is being taken by everybody at his true value. I am sorry to say during this campaign I have been sick and for three weeks I have been in bed, and only to-day have I been able to be up for a few moments, and I use the opportunity to address this to you. During the last whole newspaper controversy one thing has been established beyond a doubt, namely, that at one time I did possess the mandate from Prime Minis- ter Horring and this has formerly been doubted by most people, and I have an excellent prospect of coming out of this affair from a pecuniary point of view all right if only we will have no more scandal. I presume that you and I stand in the same relationship as we did when I was last in America, and I shall act on that pre- sumption. Will you kindly tell me what chances I have if I should desire to pro- ceed legally to sue the newspapers in America that have insulted me, and how best to proceed? Is it necessary to deposit big amounts of money, and who will underfcvke the matter for me? When the islands are sold I will publish a statement in the Dan- ish and American newspapers. Will you kindly represent me with this and also with the translations. I shall soon write you again. Very truly, yours. Q. Now, that is dated March 2 last? — A. Yes, sir. Then I have other letters, in which he speaks of interviews with the prime minister, and all that. Q, The report referred to in that letter, is that the report that has been published here? — A. I presume so. Q. Is there any doubt about that being the official report to his Government? — A. Not the slightest. Q. And a contract, you say, was certainly made between him and the prime minister of Denmark by which he was to receive $500,000 for the sale of the islands ? — A. Not $500,000, because he had authority to sell the islands for less than 15,000,000. Q. He was to receive 10 per cent of the purchase price? — A. Yes. Q. He was to have that much himself? — A. Yes. Q. That contract is still in existence? — A. Oh, yes. He says it is. The point is this, that if the sale that is about to be consummated between Denmark and America is the direct result of Secretary White's coming to Denmark, then Christmas is legally entitled to his commis- sion. Q. And that is what you understand to be the case ? — A. I under- stand so; that is my understanding. Q. From the information you have from Denmark and from all other sources, that is your understanding? — A. Yes; from the point of view of a lawyer that is my opinion too. Q. That the sale of the islands if made now would be made in pur- suance of steps taken by Secretary White when he went from the London legation to Denmark? — A. Christmas did what he was hired to do. He was hired Q. Who? — A. Christmas — to do whatever he could to open negotia- tions. Now, by coming back to Denmark with Secretary White and by Denmark opening negotiations at that time with White, 1 give it PURCHASE OF DANISH ISLANDS. 81 as my opinion he is absolutely entitled to his commission if the sale about to be consummated is the result of that opening. Q. Did you see any communication from Mr. Hay, Secretary of State, at any time to Captain Christmas? — A. No. Q. Did you ever have any conversation with the Secretary of State on the subject? — A. Never. I did with the President, but not with Secretary Hay. Q. I understand about that. Now about the contract you executed with Evans and the g-uaranties. Did I understand you to say that j'ou understood the contract to be that this money was to be paid out of the ^500,000 that Christmas got? -A. Yes, certainly. Q. Did you have any contract with Christmas to guarantee the pay- ment of any other person than Mr. Evans and Reymert? — A. No, sir. By Mr. Dinsmore: Q. What about Condict? — A. That was in the same contract. Q. They are partners? — A, No, they are not partners. They are both intimate friends of mine. Q. Their names do not both appear in this contract. — A. But each one had one. Q. That is, another one like that? — A. Yes. I did not want it said in Denmark that 1 had received a contract to receive a cent of money, and I did not want to receive any. I even wanted to pay my own expenses, if there were any, and I did it. By Mr. Richardson: Q. Did you see any communication whatever from the State Depart- ment introducing Captain Christmas to anyone in the London legation or in Copenhagen? — A. He told me that Secretary Hay had told him he had written instructions to White and that Christmas was to pro- ceed immediately. That is all I know. Q. Did you see any communication, is what I asked you? — A. No; I did not see any. Q. Do you know whether or not Captain Christmas made any report prior to this one of the 1st of October, 1900? In other words, about May, 1900? — A. Captain Christmas sent a report to the Danish min- ister every week; sometimes twice a week. He cabled over very fre- quently, and he received replies. Q. Did you see any of those reports? — A. Yes, sir. Q. What one did you see? — A. 1 saw one in which he said how he was getting along, and discussed the matter with Horring. I believe there are copies of two reports in here. Q. Did you meet Mr. Knox at all? — A. No, sir; I never saw him. The only man I ever saw was Evans when I went down to Washing- ton, as I have said. Q. I believe I understood you to say that you never had met Evans until you came to Washington? — A. Yes; until two weeks after Q. Two weeks after you guaranteed the contract? — A, Yes; then I came down with Mr. Reymert to find out a good many things, whether any such bill had ever been introduced, and if such bill was in the Com- mittee on Foreign Affairs and Finance Committee. By Mr. Hitt: Q. Then what did you ascertain? — A. I ascertained there was a bill introduced by Congressman Gardner, and that the bill had never been 82 PURCHASE OF DANISH ISLANDS. heard of since. I took my own impression of Mr. Evans and acted accordingly. Q. From all your knowledge, direct and indirect, have you an}'^ rea- son to believe any member of the House of Representatives or any member of the Senate have received any bribe or valuable considera- tion of any kind in connection with the transfer of the Danish Islands ? — A. I am positive that no member ever did, or was so approached. Q. Or any person employed officially in the Government service? — A, No, sir; I do not. Q. Or anybody not employed in the Government service? — A. No, sir; not directly or indirectly. Q. Or an}^ person anywhere in this country or elsewhere? — A. Not in this country or elsewhere, and I think I am safe in stating under oath that the only member of the Senate that Mr. Christmas ever saw was Senator Lodge, and he told him to get out of town. I will say this as my opinion, I do not believe there is a word of truth in it, or a word of truth in the statement of Christmas, of Mr. Rodgers's boast about owning so many Senators. Q, Have you seen the original of this report of Captain Christmas? — A. I have neither seen the original nor copies of it. All I have seen is what I have seen in the newspapers. By Mr. Dinsmore: Q. Did Captain Christmas ever suggest to you at any time the desira- bility or necessity of the use of any money to persuade Congressional support? — A. I will tell you what he did say. When he came over he told me that it was the general impression in Denmark that the reason why the islands were not sold in 1867, when both Denmark and America had agreed upon the transaction, was because there had not been bribe money enough to go around and Denmark refused to bribe certain Senators, and therefore when he made overtures to Horring to go over and try to induce the Americans to take the first step he explained to Horring it was necessary for him to get a big commission because that was the way they did business in America, and I told him he was a darned fool. Q. When did he tell you that? — A. The very first time when he came in my office, and I told him if he wanted to make sure of not selling the islands all he would have to do would be to start on those theories. By Mr. Richardson: Q. What theory did you have when you signed the guarantee of the contract for $50,000 to go to Mr. Evans — that he was worth that much in the negotiations? — A. On this theory, that Captain Christmas was sick in bed, and told me this was the most critical period of all; that he had been working so hard in explaining maps and things to these committees that as a result of that he was taken sick, and now in order not to delay the matter, it was necessary for him to have a man in his shoes down here to do that, and he had found this man in Mr. Evans. Q. Did you believe when you made that contract that Mr. Evans could honestly earn $50,000 here in the manner he suggested? — A. He said here in this report Q. Answer that question. I want to know what you thought about it. Did you believe when you executed that contract that Mr, Evans could earn the $50,000? — A. I thought tJtis, in view of the fact that: PURCHASE OF DANISH ISLANDS. 83 Christmas was to receive $500,000, that $50,000 was not such a very great contingent fee. Q. You believed when you guaranteed that that he honestly could earn $50,000?— A. Yes, sir; I did. Q. What did you think he would do to earn the $50,000?— A. The same as Christmas had been doing. Christmas told me that he had been spending mornings, noons, and nights in conversation with the Committee on Foreign Affairs and the Finance Committee, that he had been taken sick and there were lots of things to be explained yet on the subject, as for instance, on the subject of the harbor of St. John. Q. For that kind of work j^ou believed he could honestly earn $50,000?— A. Yes, sir. Q. Was the $20,000 you spoke of on the other contract in addition to the $50,000?— A. No. That was afterwards, knowing the $50,000 was repudiated. Q. The $20,000 contract was made afterwards? — A. After the $50,000 one had been repudiated. Q. Evans had never given up the contract? — A. No; but we had served notice on him that we considered the contract void. Q. For what reason? — A. For having been obtained under false pretenses. Q. He never did surrender his contract, did he? — A. No; but that was immaterial so long as he was repudiated. We could not make Evans give it up. Thereupon the committee took a recess until 3 p. m. AFTERNOON SESSION. TESTIMONY OF MELVILLE E. STONE. Melville E. Stone, being Urst duly sworn, testified as follows: By the Chairman: Q. Please give your name in full and your place of residence. — A. Melville E. Stone. I live in New York. I am general manager of the Associated Press. Q. You have supervision of all press matters connected with the business of the Associated Press? — A. Yes, sir. Q. You have a knowledge of the various contracts that are made from time to time?^ — A. Yes, sir. Q, They come under your supervision? — A. No contract can be made without its coming under my supervision. Q. Do you know Captain Christmas? — A. I never met him; never saw him. My onl}^ knowledge of him is the general gossip that has appeared in the newspapers. Q. Did you know of his having made a contract with the Associated Press?— A. Of what kind? Q. Relative to the sale of the Danish West Indian Islands? — A. I certainly never did. Q. You never did, so far as it came under your observation ? — A. He never could have made a contract with the Associated Press without its coming under my observation. Q. There is nobody here in Washington authorized to make such a contract without consultation with you? — A. That would be utterly absurd. 84 PURCHASE OF DANISH ISLANDS. Q. You are prepared to say that he never did have such arrange- ment or contract? — A. Certainly. Q. Who is the representative here in Washington of the Associated Press? — A. Mr. Charles A. Boynton. Q. That is all, unless you desire to make a statement. — A. I desire to protest against the dragging of the Associated Press into this busi- ness; I think it is very impudent. I have a communication that came in our service to-day that may interest you, bearing on this matter. Q. What is it? — A. It is an official note that was issued by the Danish Government to-day, formally announcing that the Danish ministry has had no connection with Captain Christmas. The latter applied for an audience, but the premier. Dr. Deuntzer, refused to see him. The premier also refused to receive a copy of Christmas's report on the subject of the negotiations for the sale of the Danish West Indies. Q. That came by cable? — A. Yes, sir. Q. Is that addressed to any person, or is it a news item? — A. It is a news item. Q. Sent out by the Associated Press? — A. Yes, sir; and for its authenticity I will personally vouch. Q. Does this cable come from a representative of your associa- tion? — A. Yes, sir. Q. In Copenhagen? — A. Yes, sir. By Mr. Richardson: Q, This is an official note issued to-day formally announcing that the Danish ministry has had no connection with Christmas, that the latter applied for an audience, but the premier, Dr. Deuntzer, refused to see him. The premier also refused to receive a copy of Christmas's report on the subject of the negotiations for the sale of the Danish West Indies. Do you know anything about when any such refusal was made? — A. That is all the knowledge I have. Q. All the knowledge you have is in this statement? — A. Yes, sir. Q. You do not know whether they have heretofore received the report or not? — A. That comes from our own people in Copenhagen and is authorized by the Danish Government. Q. It comes through the Associated Press in Copenhagen? — A. Yes, sir. TESTIMONY OF AUGUST REYMERT. August Reymert, being first duly sworn, testified as follows: By the Chairman: Q. Please give the reporter your name in full and the business in which 3'ou are engaged. — A. August Reymert, residing in New York City, where I have been a lawyer for a great many years. Q. You are still practicing law there? — A. Yes, sir. Q. Do you know Captain Christmas? — A. A person calling himself Christmas called upon me about two years ago and said that he repre- sented the Danish Government and had charge of the sale of the Dan- ish Islands, etc., and he wanted to retain my services. He said he was aware that I had practiced law among the Scandinavians and had a good many legal matters between the Scandinavian courts and the PURCHASE OF DANISH ISLANDS. 85 New York courts and the courts in this country for a great many years, and that I was familiar with the Danish languag-e. I asked him the character of the services that he desired me to render. He then thrust a contract upon me, and said he desired mo to hold myself In readiness to do whatever legal work was neces.sary, or that miuht be required in the future. I have held myself in readiness ever since, never performed any work, and never saw him from that day to this. Q. You did not receive any fee? — A. None whatever. Q. And you did not render any services? — A. None whatever. Q. Did he detail the character of the services he wanted you to render? — A. He did not; he simply said all legal matters which might possibly arise. I thought the man was half crazy. I suggested that he ought to take in Greenland and Iceland for a summer resort, l)ut he did not seem to take to that. Q. There were no transactions with any members of Congress, Senators or Representatives, so far as you were concerned, in coimec- tion with this business?— A. None whatever, Q. Do you know of any such transactions between Christmas and members of Congress? — A. I never heard of any. Q. You have told us all the connection you have had with the mat- ter? — A. Yes, sir. By Mr. Hitt: Q. Do you know of anybody else outside of Congress, in public life or in private life, having anything to do with it for a consideration of money? — A. Not a,nj more than I knew him to be acquainted with Carl Fischer-Hansen. Q. Do you know what his relations were? — A. 1 do not know. By Mr. Richardson: Q. How long have you been practicing law in New York City? — A. Twenty -six or twenty-seven years. Q. What branches of law do you practice in? — A. General litigated matters. Q. General practice ? — A. General practice; yes, sir. Q. Have you ever had any experience in practicing before the departments? — A. Never. Q. Did you come down to Washington after you were retained in this case?— A. I had occasion to visit Washington once. Q. In connection with this business?— A. No; but 1 did see Mr. Evans, called to see him, casually passing by his oflice, to learn from him what there was in this thing, if anything at all. Q. You have heard Mr. Hansen's testimony about a $10,000 contract with you? — A. Yes, sir; that is a mistake, it was $5,000. Q. You made a contract for |5,000? — A. Yes, sir. Q. Was that contract made with Mr. Hansen or Mr. Christmas? — A. Mr. Christmas. Q. You made a $5,000 contract to represent him? — A. Yes, sir. Q. You say you thought he was half crazy ? — A. I got the impression that it was all visionary, Q. But yet with twenty-five years' practice you made the contract ? — A. It was thrust upon me. Q, He forced you to make the contract? — A. I did not prepare the contract. 86 PUECHASE OF DANISH ISLANDS. Q. Who prepared it? — A. He came with it prepared. Q. Did Mr. Hansen prepare it?— A. I do not know, but 1 presumed that a lawyer had prepared it. Q. It was a properly prepared contract ?^ — A. Yes, sir. Q. Was it read here by Mr. Hansen this morning? — A. I do not remember. Q. Have you the contract here? — A. No, sir. Q. What did the contract obligate you to do? — A. To hold myself in readiness to render all services which might be required, services in a general vague way, and it struck me at the time as being a very peculiar contract. Q. And still you signed it? — A. I did. Q. Did Mr. Hansen guarantee it? — A. 1 do not remember whether he did or not. Q. Who else signed it besides yourself and Mr. Christmas? — A. No one else. Q. Did you make any other contract with him except that? — A. That is all. Q. Did he call to see you any more? — A. No, sir. Q. Did you ever make a contract like that with any other gentle- man? — A. I never did; it was a very novel thing. Q, Did you agree to come to Washington City on that matter? — A. Whenever called upon to do so. Q. What to do? — A. Indeed 1 do not know. Q. And \'et, with twenty-five years' practice, you made a contract of that kind ? — A. To hold myself in readiness and render legal service. Q. When was the $5,000 to be paid? — A. When he should even- tually get his commission from Denmark for selling the islands. Q. He was to get a commission of 10 per cent ? — A. He did not say. Q. But 3^our money was to come out of his commission ? — A. Yes, sir; for any legal services called upon to render, and my contract would expire with the then pending Congress, so it died shortly after- wards. Q. You say you have not that contract? — A. I have not; it probably went into the wastebasket. TESTIMONY OF RICHARD P. EVANS. Richard P. Evans, being first duly sworn, testified as follows: By the Chairman: Q. Please give your full name. — A. Richard P. Evans. Q. Your place of residence? — A. Washington, D. C. Q. And what is your business? — A. Attorney at law. Q. How long have you been an attorney here? — A. Between twenty-five and thirty years. Q. Do you have a general practice? — A. Yes, sir; a general practice; mostly departmental. Q. You are acquainted with Captain Christmas? — A. I have met him several times. Q. When did you meet him first, and where? — A. In this city, in February, 1900. Q. What were the circumstances of your meeting? — A. I was requested to meet him; I received a telephone message to meet him at a gentleman's office. PURCHASE OF DANISH ISLANDS. 87 Q. At whose office? — A. At a gentleman's office. Q. Whose office was it? — A. 1 think a party by the ntime of Wal- beurg, Q. Where was it? — A. On New York avenue, near Fourteenth street. Q. What was his business? — A. A newspaper man, a translator and French teacher. He had been a client of mine in other matters. Q. You went to his office at telephonic request? — A. 1 went to his office the first time in response to a telephone message. Q, You there met Captain Christmas ? — A. Not at that time. I was delayed, and Captain Christmas, I was told, had been there, but had left and would meet me later. Q. Did 3"ou know for what purpose you had been summoned? — A. 1 did not at the time. Q. Did you meet Captain Christmas later? — A. I met him later, 1 think that same day. Q. Go on and tell us in your own way what resulted. — A. Captain Christmas told me that he had been advised to secure my services in a matter which he had here and that he was willing to pay good com- pensation for them, and it developed that it was this Danish Island matter, and I made a contract with him, as I W'Ould with anybody, to render legal service in the matter. Q. It was a written contract? — A. Yes sir. Q. Have you a copy of it? — A. I have. Q. Have you a copy of it here with you? — A. I find that I have brought the wrong paper. This really is the contract 1 made with Captain Christmas at the time, which was to have been guaranteed by Seligman & Bro., of New York. This contract was not carried into effect, and by mistake I brought this one. The one 1 made was sinnilar to this entirely, word for word, but it was guaranteed by Carl Fischer- Han sen. Q. This paper you have here embodies the terms of the contract you subsequently made? — A. My recollection is that it was copied word for word [reading]: This memorandum of agreement made at Washington, D. C, tlie twenty-third day of February, A. D. 1900, by and between Captain W. v. Christmas Dirckinck-Hohu- feld, of Copenhagen, Denmark, and Kichard P. Evans, attorney and counsellor at law, of Washington, D. C. — Witnesseth, that the said Captain W. v. Christmas Dirckinck-Holmfeld has retained the legal services of the said Richard P. Evans, attorney and counsellor at law, in matters pertaining to the purchase by the United States from the Kingdom of Denmark of the Danish West India Islands, and has agreed to pay to the said Richard P. Evans for his said legal services hereinafter described, rendered and to be rendered in the matter of said purchase, the fee and compensation of fifty thou- sand ($50,000) dollars in United States money, contingent upon the consummation of said purchase as far as the United States is concerned, by the enactment into law by the Congress, approved by the President of the United"States, of a treaty or bill carrying an appropriation of money, acceptable in amount to the said Government of Denmark, exceeding three million five hundred thousand (^'o, 500, 000) for the pur- chase of said Danish West India Islands, and in event of the said purchase being consummated by payment of an amount acceptable to the said Government of Den- mark of three million five hundred thousand ($3,500,000) dollars or less, then said Captain W. v. Christmas Dirckinck-Holmfeld agrees to pay to the said Richard P. Evans the sum of forty thousand ($40,000) dollars as his full fee and compensation for his said services. Provided, That said law shall be enacted before the adjournment of the present session of the present United States Congress; otherwise this agreement is void and of no effect. And he agrees that the payment of said fee and compensation shall be made through 88 PURCHASE OF DANISH ISLANDS. the bankinp: firm of J. & W. Seligman & Co., of New York, and that they will become surety for its payment. And further witnesseth, that the said Richard P. Evans, attorney and counsellor at law, has entered upon the said services and has agreed to perform said legal services faithfully and with dispatch for the prompt accompUshment of said purchase; and that he will prepare and present facts, briefs, arguments, and necessary documents and data to the committees of Congress, and others, in the furtherance of said purchase, for the said fee and compensation of fifty thousand ($50,000) dollars, or said alternative fee of forty thousand (|40,000) dollars, as herein-before stipulated, contingent upon the consummation of the purchase of said Danish islands by the United States under a treaty or law enacted by the present session of the present Congress of the United States and to do any and all other acts as an attorney at law necessary in the accom- plislnnentof said purchase, before the Congress, the Executive Departments and the courts, without any other or further com])ensation or fee whatever for any of said services than as hereinbefore stipulated and set forth. The foregoing considered, it is hereby agreed and stipulated by and between the parties hereto that the said fee of $50,000, or alternative fee of $40,000, shall be due and payaVjle to the said Richard P. Evans upon the approval by the President of the United States of an act of the present session of the present Congress, appropriating the money necessary for said purchase, acceptable to the said Government of Den- mark and not otherwise. In witness whereof we have hereunto set our hands and seals the day and date hereinbefore stated in duplicate. Mr. Richardson. That is signed by whom ? A. The contract which went into effect was signed by Captain Christmas and myself. By the Chairman: Q. And guaranteed by whom? — A. The guaranty here was to be b}^ J. & W. Seligman and Company, but he failed to secure them as sureties, and I consented subsequently to the substitution of Carl Fischer-Hansen, of the city of New York. By Mr. Richardson: Q. I have here what purports to be a copy of the contract with Mr. Hansen as guaranty, and I wish you would look at it and say if it is a copy of the contract, because it is of a date subsequent to this one. — A. (After examining paper.) According to my best recollection that is the contract, word for word. Q. What is the date?— A. The 12th day of March, 1900. By the Chairman: Q. Mr. Evans, what did you understand were the services to bi rendered by you? — A. Precisely as stated in the contract, legal serv ices that I might be called upon to perform; ordinary services, sucfe as an attorney renders in the departments and in Congress. Q. Did these services contemplate the payment of any money by you to any party in consideration of influence or votes? — A. Not at all, sir. That is, I want to limit that remark not to anybody in Con- gress or the departmental service. Q. Or to any person outside of Congress?— A. Of course, in such matters I would naturally have to get the assistance of other parties. I did not expect to do all the work myself, and for such assistance ] would expect to pay. Q. You do not refer, then, to Government oflficials? — A. Not at all. Q. You refer to parties to assist you in the legitimate work contem- plated by that contract? — A. That is right. Q. Did you render such services? — A. I rendered such services as 1 could under the conditions. Mr. Christmas promised to place in my hands quite a number of papers, charts, and one thing another relating PUECHASE OF DANISH ISLANDS. 89 to the islands, and facts and figures relative to their prospective value, etc., hut he did not do so. And so what services I rendered were very hirgcly based upon what Captain Christmas said and what he prepared, and of course my efforts were hampered. Q. Can vou tell us what services you did render pursuant to the contract? — A. Well, I can not say. This would be hearsay. I came here, I think, to this committee room once or twice and inquired as to the condition of the Gardner bill and the prospect of its being brought up, and I went to Mr. Gardner some two or three times in regard to the bill. The bill was introduced before I had any connection with or any knowledge of this matter at all, and then I had other gentlemen who were to report to me things which they said they had done or other people had done. By Mr. Hitt: Q. Whom did you see at this committee room? — A. That I can not state. I rather think there were two gentlemen the first time I came here, whose names I did not know, and one man, the clerk. The second time there were several in the room, and 1 simply asked the clerk as to the condition of the bill. Q. Who were the persons in the room? — A. I did not know anyone of them. Q. Did you know the clerks? — A. No, sir. Q. You do not know his name? — A. I do not. Q. Nor the name of any person in the room ? — A. I do not. By the Chaieman: Q. Did you have any conversation with the parties in the committee room? — A. I simply asked whether any action had been taken with respect to the bill, and whether there had been any meeting of the com- mittee to consider the matter. They informed me, in fact, each time, that the bill was pigeon-holed and that there was very little prospect of its coming up. By Mr. Hitt: Q. Did the clerk tell you that? — A. I will not say the clerk; some young man told me that. Q. It was not a member of the committee? — No, sir; unless he was very young; personally I did not know him. By the Chairman: Q. Outside of Mr. Gardner and the gentlemen that you met in this committee room, did you come in contact with any members of Con- gress? — A. Not personally. Q. You did not come in contact personally with any members of Congress relative to this matter? — A. No, sir. Q. You never offered to any member of Congress — Senate or House — any consideration for their influences or services in connec- tion with this matter of the Danish islands? — A. No, sir; I did not. In my practice of twenty -five or more years, when I have had fre- quent occasion to come here, I have never known it to be done; cer- tainly not in my experience. Q. Outside of Mr. Gardner and such members as you may have met here, you had no consultation with other members relative to the Danish islands? — A. Personally, I did not. Q. Then, do you know of any consideration being offered to any H. Rep. 2749 7 90 PURCHASE OF DANISH ISLANDS. parties, whether members of Congress or otherwise, for their influ- ence in bringing about the purchase of the Danish islands? — A. 1 do not know of any. Q. Have you reason to believe that there was any? — A. The only information I had on that point was given me by Captain Christmas. In conversations with him he made a number of statements, but I know nothing about it myself. Q. Did you believe the statements to be true? — A. I can not say I did. Q. What were the statements? — A. Would that be competent? Q. Everything is competent here. — A. Well, Captain Christmas mentioned a number of names of parties with whom he made contracts or had given promises based upon the purchase of these islands by the Government. Q. Were they officials? — A. None of them were officials, to the best of my recollection. Q. Any member of Congress, members of the Senate or House? — A. None whatever. Q. Outside parties? — A. Outside parties; yes, sir. Q. Did you have any connection at all with Mr. Gardner; any agree- ment or contract? — A. Not at all. Q. Mr. Gardner's bill had been introduced before you took hold of this matter? — A. Yes, sir; about a month before. Q. It was not introduced at your instance? — A. Not at my instance; no, sir. Q. Who was aiding you, if anybody, Mr, Evans, in prosecuting this work? — A. There were two gentlemen — Capt. M. E. Dunlap and Allen G. Rutherford. Both of those gentlemen are now deceased. Q. What was their particular duty? — A. Captain Dunlap was engaged principally, I believe, in practice before the State Department, and Mr. Rutherford was at the time clerk of the court of appeals of Maryland, and had formerly been the third auditor for the Treasury Department. They were to feel the pulse of sentiment among gen- tlemen who might have to pass on this matter. Q. Did they report to you from time to time? — A. They did. Q. They were employed by you? — A. They were associated with me in the matter. Q. Employed by whom? — A. By myself. Q. Did you have any money from Captain Christmas? — A. Not one cent in any way. Q. At any time? — A. At any time. Q. And did Captain Christmas undertake to repudiate this contract with you at a time subsequent to this date? — A. He did, Q. Do you recollect at what time that was? — A. My recollection is that it was in the latter part of May or the 1st of June of that year. Q. The same year? — A. Yes, sir, Q. So that it was probably three months after the contract had been entered into? — A. About that time. Q. In what way did he undertake to repudiate the contract? — A. He and Carl Fischer-Hansen both came on to Washington and wanted me to surrender the contract. Q. Did he write you a letter also ? — A. I do not recollect that he did, Mr, HiTT. Did you report to him the services you had rendered in employing these gentlemen to feel the pulse of people? A, 1 reported the services, but not the names. PURCHASE OF DANISH ISLANDS. 91 By the Chairman: Q. Do 3^ou know C. W. Knox? — A. I have met the gentleman. Q. Wa.s he associated with you in this business? — A. Not with me. I did not know he was in it at all until about the time of the end of the session, or very close to that; perhaps shortly after the session closed. He called upon me and introduced himself. By Mr. Richardson: Q. What did he say? — A. He introduced himself as having been employed by Captain Christmas in the matter and said that he also had a contract with Captain Christmas for services. Q. How much? — A. 1 think it was $15,000, and an alternative $10,000. His contract lapped over the entire Congress. Mine was limited to the first session of that Congress. That is my recollection of it. By Mr. Dinsmore: Q. Did you see that contract with Knox? — A. Mr. Knox showed me a paper purporting to be the contract. Q. Properly signed ? — A. Yes, sir. By the Chairman: Q. Mr. Christmas in his report speaks of you as a lawyer in Wash- ington who represented Mr. Gardner and his friends in the House. If I understand you rightly, that is not true? — A. That is not true; abso- lutely untrue. Q. He also says that he had a contract with you and with Mr. Knox, "according to which they, and through them certain members of Con- gress, should have a share of the commission if the sale took place." — A. I had no such contract. The only contract that 1 have had with Mr. Christmas, either verbally or otherwise, was the one 1 read here. By Mr. Richardson: Q. What is the difference, if any, between the contract you have read, which you say Seligman & Co., in the first instance, were to guar- antee, and the one which you say Mr. Carl Fischer Hansen did guar- antee? — A. They are substantially the same. If not word for word, there is no difference in the terms. Q. Mr. Carl Fischer Hansen, then, did guarantee your $50,000 con- tract with Mr. Christmas?— A. He did. Q. And that guarantee is dated March 12; that is, the same date as the contract? — A. Yes, sir. Q. You were there when that contract was made ? — A. I was in Washington. Q. Was not the latter contract made in New York?— A. It may be dated in New York. It was in duplicate, and Mr. Stern came over from New York, and the duplicates, to the best of my recollection, were signed by myself and witnessed and then taken by him to New York, and then one of them returned to me after the signatures there had been completed. Q. And you have the original of that contract, signed by yourself and Captain Christmas, now? — A. I have. I thought I had it with me here, but made a mistake in the paper which I brought. Q. Was this copy that you looked at a moment ago in this transcript an exact copy of the original ? — A. To the best of my recollection, it is, word for word. Q. You prepared this ? — A. I drew it myself. 92 PURCHASE OF DANISH ISLANDS. Q. And 3'^ou prepared this copy in your testimony in a lawsuit in the case of Carl Fischer-Hansen, plaintiff, v. The Morning Journal Association; you testified in that case? — A. Yes, sir; and read that contract. Q. Which is here? — A. Yes, sir. Q. You say it was three months after, or about three months before, Mr. Hansen asked you to repudiate the contract? — ^A. To the best of my recollection, it was. Q. It was not in two weeks? — A. No, sir. Q. Did he come to see you in a few weeks afterwards? — A. Yes, sir; he was on two or three times — twice, I know. My recollection is he was here three times. Q. Did he call on you when he came over here the first time? — A. Yes, sir. Q. How early was that after this contract was made? — A. That was within two or three weeks. Q. Did he call at your office? — A. He called at my house and office. Q. At your residence? — A. Yes, sir. He came out to my house at night, and when he called there I was out. Q. How many consultations did you have with him at that time? — A. 1 think two or three. Q. In your office? — A. In my office. Q. Did he find any fault with you in any way? — A. Not on that occasion. Q. Did he find any fault with you for not doing any work or any- thing of that kind — on account of inefficiency? — A. Not on that occasion. Q. When was the first complaint, if any? — A. 1 think the first time was on his second visit. Q. How long was that after the contract? — A. About a month. Q. Did you get a letter from Mr. Hansen, dated the 12th of March, 1900? I do not want to mislead you. I am willing for you to look at this and say whether it is a copy or not of a letter from Mr. Hansen, dated the 12th of March, 1900. I will read the letter. It is as follows: New York, March 1"2, 1900. Hon. Richard P. Evans, Counselor at Law, UOS F Street Northioest, Washington, D. C. My Dear Sir: Pursuant to our conversation over the telephone this mornino;, I hereby send you the papers requested by you, having substituted my name for that of Seligman and having made one or two minor changes therein. Will you kindly return to me the unsigned contract when you shall have signed it and keep the one signed by Capt. Christmas W. D. V. Holmfeld? Hoping the matter may soon come to a successful conclusion, and hoping to see you ere long, believe me to be, Yours, very truly, Carl Fischer-Hansen. A. To the best of my recollection, I received that message. Q. How many times did you see Mr. Hansen after making the con- tract? — A. To the best of my recollection it was three times. Q. What did he state to you as to his relations to the sale of the West Indian islands?— A. He represented tome that he represented the Danish Government as an attorney, and his relations to me were simply that of surety on the contract. Q. Is he a man of wealth ? — ^^A, He is so reported to be. Q. You understood that he acted as the legal adviser to the Danish Government? — A. I did. PITROHASE OF DANISH ISLANDS. 93 Q. You understood it from him? — A. From him and from Captain Christmas also. Q. State whether or not, in addition to the times that you saw him here or elsewhere, if ,you had frequent telephonic communication with him between here and New York. — A. Frequent. Q. How many conversations? — A. Somewhere from half a dozen to a dozen. Q. What did Mr. Hansen come to see you about in his subsequent visits to Washington City?— A. He inquired as to the progress of the matter. He seemed to be concerned over his liability under the contract. Q. Was Captain Christmas ever with him when he came to see you; and if so, how many times? — A. I think each time; I am quite certain he was twice. Q. Did you make any reports to Mr. Hansen of what you were doing? — A. Both to Mr. Hansen and to Captain Christmas. Q. What is the last letter you had from Mr. Hansen in reference to this purchase? — A. I really can not give the date. Q. Did Mr. Hansen ask you to surrender your contract with him? — A. He did. Q. What did you tell him? — A. First I agreed to do it, and then, thinking the matter over, thought perhaps best for my own protec- tion not to do so. 1 subsequently gave him a certified copy of it — I think a photographic copy. Q. Was there any breaking of pleasant relations between you and Mr. Hansen at any time? — A. We had some pretty warm words, and he and Captain Christmas both seemed to regard the matter as a des- perate Inll that might be collected if desperate efforts were made. Q. Did you have any controversy with him or Captain Christmas or this newspaper-bureau man in your hall in front of your door at any time ?— A. I recollect some words that Mr. Hansen and I had down- stairs. He spoke about the security, and I told him I was satistied, that I had had .some investigation made as to his property holdings; and he got very hot over it, and we had some words about it. Q. About the property? — A. He was angry because I had made investigation as to his liabilities. Q. Is that the only thing you had any controversy with him about, or any disagreeable words, unpleasant words? Was there anything else involved? — A. They both took exception to m}" opinion that the Gardnei" bill would not be brought up and that the matter would have to be left entirely to diplomatic channels. In other words, I told them it was very desperate, and so far as getting it through that session of Congress the introduction of the Gardner bill had been a mistake; and they were very angry over it. Q. In this deposition which you gave in the lawsuit I find this ques- tion asked: Did you have any conversation with him [Mr. Hansen] between those parties relative to the connection of Mr. H. H. Rogers and Mr. Charles R. Flint, of New York, and their connection with the same enterprise? You said: "No, sir." Is that true? — A. To the best of my recol- lection I had no conversation with Mr. Hansen as to that. Q, Then you were asked: Did you have any conversation with Captain Christmas in the presence of Mr. Hansen in regard to any of these gentlemen and their connection with this enter- prise? 94 PURCHASE OF DANISH ISLANDS. And you answered: Captain Christmas on several occasions spoke to me relative to those parties, stat- ing that he thought they were endeavoring to break up the deal. A. That is true. Q. And in the same deposition this question was asked you: Did you talk with members of the House of Representatives about this matter? And you answered: That I decline to state. Then you were asked: Did you talk with any of the members of the United States Senate in regard to the matter? And you answered: That I decline to state. Did you make that declination at the time in this deposition ? — A. I did. Q. Then you were asked : Did Captain Christmas tell you in the presence of Mr. Hensen how much he, Cap- tain Christmas, was to receive out of the purchase price, if the sale of the islands was consummated. Your answer was: I never had any conversation with Captain Christmas in Mr. Hansen's presence or anyone else on that subject. I never mentioned it. That is correct? — A. That is correct, Q. Did Mr. Hansen tell you how much he was to receive of the purchase price in case the sale was consummated? — A. I do not know. 1 did not think he was going into a matter of that kind as surety with- out some consideration. Q. But you do not know what it was? — A. No, sir. Q, This contract with you states accurately your case, that you were to get $50,000 as a contingent fee, and you were not to get any part unless the treaty was ratitied and the money paid during the first session of the Fifty-sixth Congress? — A. Yes, sir. Q. Mr, Dalzell asked you about Knox. I would be glad to have you tell us all that Mr, Knox told you about his connection with the case? — A. He told me that he had seen in some newspaper publication that I was connected with the matter, that he also had a contract, and that his contract extended over until the next session. Q. That would be the short session? — A. Yes, sir; the short session of the last Congress. I told him that he was in a more fortunate posi- tion than I was as my contract would terminate at the expiration of the present session. My recollection now is that it was some little while before the expiration of that session of Congress, but I know that we talked over the prospects of getting anything done, and I was pretty well sick of the job at that time after my experience with Captain Christmas, and I told him that so far as 1 was concerned the matter was dead. Q. Your contract had expired? — A. Had expired with that session. Q. What did he say he was to get? — A. He showed me a contract he had, which, to the best of my recollection, provided that he was to receive$15,000, if the matter was consummated during that session, and $10,000 if consummated during the Congress; but I am not absolutely positive as to that. PURCHASE OF DANISH ISLANDS. 95 Q. Is that all the conversation you had with Mr. Knox on the sub- ject of what he was to get? — A. That is all Mr. Knox told me he was to get. Q. Has he since that time told you he was to get any more? — A. We have met since then, but he has not varied that statement. Q. Did he make any statement about getting an}'^ further or addi- tional sum in any other conversation with you? — A. No; he made no statement that he would get anything other than that. Q. Or that he was to get any additional part of the |500,000, the fee that Christmas was to get? — A. No, sir. Q. Where is he? — A. He was in my office a day or two ago. The Chairman. Mr. Knox is in Maryland, and he is coming here whenever we send for him. By Mr. Richardson: Q. Do you know Mr. Knox's home? — A. It is in Maryland, but I do not know the place. Q. Did you know him before you were employed by Captain Christmas? — A. No, sir; I never heard of him before; I never heard of him. Q. Have you stated, Mr. Evans, all of your agreement with Captain Christmas as to the services you were to render for the $50,000 contin- gent fee? — A. Simply what is stated in the agreement and any other such services set forth in there. There was certainly no element of bribery connected with it in any way. Q. You said in this deposition here that you declined to give the fact as to whether you had talked to Senators or Members. Why did you decline to give the names in that deposition or the fact that you had talked with them? — A. Because I did not think it was information properly called for. By Mr. Hitt: Q. Had you in fact talked with any member of Congress? — A. Only as I have testified to here. The Chairman. He said Mr. Gardner and such members as he might have met in this room. By Mr. Hitt: Q. And you did not know whether the persons you met in this room were members of Congress or not? — A. I did not. Q. Is there anyone in the room now who was here then? — A. I do not recognize anyone, sir. By Mr. Richardson: Q. Who was this newspaper man who telephoned you to come see him ? — A. His name was W alberg. Q. Was there an incorporated company in which he was interested, a news company, and if so, what was it called? — A. The International Press News Association. Q. Where was it chartered ? — A. In this District. Q. Did you get the charter? — A. I did. Q. What was the stock in the company? — A. My present recollec- tion is that it was first |5,000, and then that amount was subsequently increased. Q. Were you a stockholder in the company? — A. I was. Q. Were you a corporator, one of the corporators ? — A. I was. 96 PURCHASE OF DANISH ISLANDS. Q. Who else were corporators? — A. 1 can not recall the names now. Q. At whose instance did you get that charter? — A. Captain Wal- berg. Q. Who was president of that company? — A. That I can not say; they had my name as president once or twice. Q. Can you name any other gentleman who was president? — A. No; I can not. Q. Was Mr. Gardner a stockholder in the company ? — A. I have no knowledge of that. Q. Was the stock all subscribed? — A. I think not. Q. Was any of it paid in? — A. I know there was a good deal of it paid in. Q. The headquarters were in this city? — A. Yes, sir. Q. But 3'^ou can not tell an3^one else who was president of the com- pany except yourself? — A. I can not say positively. Q. Was there any contract between that company and Captain Christmas in reference to the purchase of the islands? — A. None whatever to my knowledge. Q. He states in his report, or alleged report, to the Danish Govern- ment that he bound to him some press association in Washington City. Do you know whether that is the press association he was speaking of or whether he meant some other press association ? — A. I do not know; I think probably that is the one he refers to. Q. How extensive was that association — I mean what papers belonged to it? — A. At one time quite a number of papers. Q. How many? — A. I think something like a dozen or more. Q. Where were those papers located — can you tell? — A. I can not recall distinctly, but I know there were several. I think they had one or two in Massachusetts, in New York, and in Pennsylvania, and they furnished what they called stories in the larger papers quite frequently. Q. Did that association agree to advocate the purchase of the Dan- ish Islands? — A. There was no agreement of that kind. Q. Did they do it? Were the papers that were members of that association or controlled by it in any way controlled in their editorials or otherwise in regard to the purchase of the islands? — A. I think quite a number of articles were sent out by the association. Q. Did they take all such articles that came to them for publica- tion ? — A. Not always. They took some of the stuff sent out. Q. Where is this prime mover in that enterprise? — A. I do not know; I should like to find him. Q. You do not know where he is? He is not in Washington? — A. Not to my knowledge, and has not been here for a year or more. Q. 1 will ask you, Mr. Evans, if in any conversation with Mr. Christ- mas while he was here he said or do you know of his seeing any one con- nected with the Government either in the State Department or any other department of the Government? — A. Yes; on two occasions he left my office to go to the State Department and on returning he told me he had been there. Q. What tipie was that? — A. That was on two occasions of his visits; the first and second visits, as I recollect. Q. Did he have any paper, writing, or anything from the Secretary of State or any officer of the Department that you know of? — A. 1 saw nothins: of the kind. PURCHASE OF DANISH ISLANDS. 97 Q. When Mr. Hansen asked \^ou for the return of the contract, upon what ground did he base the application for its return or can- cellation?— A. Why, the ground he stated was there was no chance of the matter going througii and he did not want that contract out with his signature to it. Q. You sa}^ that was about June? Congress adjourned al)Out that time, the 1st of June? — A. That is too much for me. My information is the tirst session usually lasts until al)out the 1st of August; but I know it adjourned much sooner than expected about that time. Q. It adjourned about the 1st of July, as 1 rememl)er, or early in Jul3\ So it Avas not long before adjournment that he asked for the cancellation of the contract? — A. Yes. Q. Did he do that because of any difficulty between you and him- self? — A. Well, perhaps he was influenced % Captain Christmas in the matter. Q. \Vhat were the relations between you and Captain Christmas at that time? — A. Well, they got rather strained. He did not follow advice, and apparently he was doing everything he could to prevent my making that fee. Q. Mr Evans, were you serving him as faithfully and efficiently as 3'ou knew how ? — A. I was. Q. Did 3^ou think the services you were rendering entitled you to that compensation? — A. Well. I think the services I rendered entitled me to any compensation I could get. Q. You spoke of two other gentlemen, I believe, and you said they were both dead. What were their names ? — A. Capt. Myron E. Dunlap was one. Q. Where did he live? — A. He lived in the city. Q. The other was Allan G. Rutherford, and I understand he is dead? — A. Yes, sir. Q. You were to share the ^50,000 fee with them, or was this com- pensation which they were to receive in addition to that ^50,000?— A. No; it was to come out of that. Whatever was to be paid on my con- tract was to be paid from my compensation. Q. Mr. Rutherford at that time was not auditor, was he? — A. No, sir; he was at that time clerk of the court of appeals of Maryland. Q. He had retired from the office of auditor? — A. Oh, yes; long before that. Q. Had Dunlap been in any official position in the city? — A. Not to m} knowledge; not certainly for a good many years. *Q. What was he? — A. A lawyer; an attorney at law from Erie, Pa. Q. Now, in addition to this contract of §50,000 which you had, and the contract'of Mr. Knox which you have mentioned, do you know of any other contract that Captain Christmas had? — A. 1 know of no other contract. Q. Did he tell you of any other? — A. He told me a number of things. Q. Who else did he say he had a contract with? — A. Well, he said he had made a contract with Mr. Abner McKinley for one, and that he had made a contract with somebody in behalf of some campaign fund. Q. That he had made a contract with somebody in behalf of a cam- paign fund. Who was that somebody? — A. If he ever told me the 98 PURCHASE OF DANISH ISLANDS. name, 1 do not recall it. As soon as he said that I told him to shut up, and that I did not want to know anything- about it, and that he was a fool for doing anything of the kind, if he had done so. Q. You can not give the name of any other gentlemen than those you mentioned? — A. No; I can not. Q. Did any of those gentlemen whose names were mentioned tell you they had contracts with Captain Christmas ? — A. No, sir. I have never been in communication with them. He never mentioned Mr. Knox, and I did not know Knox was connected with him until Knox walked in my office and told me. Q. Did Knox tell you he had a contract with Christmas? — A. Yes, sir. Q. When did Knox tell you that he had a contract? — A. Sometime about the close of the session. Q. That was the first session of the Fifty-sixth Congress? — A. Yes, sir; the first session of the Fifty-sixth Congress. Q. How long had you known Mr. Knox? — A. I had not known him at all until he came in my office. Q. Do you know who introduced him to Captain Christmas? — A. I do not; I have no information of that. Q. Was Christmas present when he told you that he had a con- tract? — A. No. Q. Who was present? — A. There may have been some clerks in the office, but I do not recall it now. Q. What did he tell you the contract was for — how much? — A. $15,000 and $10,000 alternative. Q. Were those the only contracts he ever told you he had? — A. The only contract I recollect he spoke of. Q. Do you think you were earning the $50,000? — A. I think I earn anything I can get. Q. You thought you would have earned it if the bill had passed dur- ing that session? — A. I think — well, probably I would have earned it; but perhaps I would not have gotten it, though. It was very visionary. Q. After Mr. Fischer-Hansen indorsed it and upon your investiga- tion, did you not think it would be a good contract? — A. The contract might have been good, but the recovery might not have been so good. Q. Why not? — A. Well, you are never sure of anything until you get it in your hand. Q. Did your investigation prove that Mr. Hansen was a solvent man? — A. I was informed so. Q. Is he not reputed to be a wealthy man? — A. Yes, sir; I was informed so. By Mr. Dinsmore: Q. Was there anything said by Christmas or Hansen, by either one or the other or both of them together, with reference to the price for which Denmark would part with the possession of these islands? — A. I think that Christmas informed me that $3,500,000 was the lowest price. Q. That they had agreed to take that for them ? — A. That they had agreed to take that for them if they could not get $4,000,000. Q. Three million five hundred thousand dollars ? — A. Yes. Q. But they were going to try to get $5,000,000?— A. No, there PURCHASE OF DANISH ISLANDS. 99 was no mention of $5,000,000; from 13,500,000 to 14,000,000 were the fig-ures they were calculating on. Q. Did Captain Chri.stmas state that he made that statement upon authority from the prime minister of Denmark? — A. He did. Q. That they would take $3,500,000 if they could not get $4,000,- 000? — A. Yes; he seemed to qualify that by saying if it went through that session. If it did not go through that session, the probability was that the feeling against the transfer of the islands, which was being fomented, as he stated, by German influence, might prevent it entirely; but if it went through that session, by quick work, the islands could be transferred at that price. By Mr. Cousins: Q. 1 think you made a statement a while ago as to your not receiv- ing any money from Christmas. Referring to the so-called report, he says about the last of February he was very badly situated; that " I could not longer pay Evans and Knox. It was still necessary to work with the press, which cost much money." Had he been paying you cash before that time? — A. He never paid me one cent; not even car fare. Q. Had he ever employed you in any way in connection with any press?— A. In no way except a part of my duties, I understood, was to bring the matter to the attention of members through the press if I could in a proper way, through a proper campaign. Q. Did he ever employ any press through you, or do you know of his paving any press any money? — A. I do not. Q. He says, also, in another place: My own financial means were entirely exhausted and I wag obliged to live a3 economically as possible in New York; I could no longer offer money ujjon the Sen- ators and Members of Congress, and was obliged to let Mr. Knox and Mr. Evans know that I was not able to pay their expenses. Q. Did he ever discontinue any expense fund that you had been having? — A. Well, I was not personally connected with this expense fund, if there was any. Q. That is not true, I infer? — A. It is not true as far as I am con- cerned, I know. Q. I do not want you to answer for Mr. Knox, as you could not do that. By Mr. Richardson: Q. Did you have any dinners with him at the Raleigh? — A. I did not. 1 was invited once to take dinner somewhere, but I did not go. Q. Who invited you?— A. Captain Christmas. Q. Who were present then?^ — A. I do not know that anybody was present. Q. You did not go? — A. I did not go. Q. Did you know of anybody who went with him to lunch or dinner at that time? — A. The only one I knew who left my office to go with him was Captain Walberg; nobody else. ADDITIONAL STATEMENT OF NIELS GRON. Mr. Gron. I desire to state, Mr. Chairman and gentlemen of the committee, that when I left Denmark and Copenhagen it was merely for the purpose of placing these facts before the American represent- 100 PUECHASE OF DANISH ISLANDS. atives, and not in any way for the purpose of proving the charge of bribery. I have not come here for the purpose of charging bribery or for the pur})ose of proving the charge of bribery. I have come for the purpose of placing that report, which was made, and which we believed, and which L believed, was made by a man who represented, first, the Secretary of State, and, secondly, the Danish prime minister The Chairman. You have already told us that two or three times. Mr. Gron. 1 have not come, as has been put forward, to prove any bribery. I left Copenhagen to come here for the purpose merely of trying, as I understand it, to save the honor of two countries. The Chairman. A glorious mission. Thereupon the committee adjourned to meet on Monday, April 7, at 10 a. m. Select Committee on Purchase of Danish Islands, House of Representatives, April 7, 190'2. The Select Committee on Purchase of Danish Islands this day met, Hon. John Dalzell in the chair. STATEMENT OF HON. CHAUNCEY M. DEPEW. The Chairman. Senator, you were a member of the United States Senate during the last Congress? A. Yes, sir. Q. Do you know Captain Christmas? — A. I have no recollection of ever having met him. I will state my belief is that I never did, but so many thousands and thousands of people come to see me in New York and here, I would not want to say I had not met him. Q. You do not ever recollect having any conversation with him al)out the purchase of the Danish West Indian Islands? — A. No, sir; I never had a conversation with anybody on that subject. I simply saw my name in his report Q. And for that reason the committee thought advisable tha.t all parties whose names had been mentioned should be given an oppor- tunity A. And I was very much astonished how it came there, for I had not the slightest recollection of any conversation in regard to the Danish Islands, as it was a subject that did not particularly interest me. TESTIMONY OF MR. C. W. KNOX. C. W. Knox sworn and examined. By the Chairman: Q. Where do you reside? — A. In Maryland. Q. At what place? — A. At Glenelg. Q. What is your business?— A. I have property there, on which I live, and I have some holdings in stocks, and I buy stocks, and have speculations of one kind and another. I have no direct business to-day. PURCHASE OF DANISH ISLANDS. 101 Q. Do you know Captain Christmas? — A. I met Captain Chnstmas while stopping at the Raleigh in January, 1900. I found him to be a cultivated man, and he apparently had been tangled up with sharpers, and he feared lest some of them would destroy his mission by carrying out their threats. He seemed fearful of everybody, and said he had no one to whom he could trust entirely. I told him to defy the black- mailers and to seek counsel from Senator Lodge — I knew him to be interested in the subject — and to follow his advice; and shortly after- wards I left Washington. Subsequently he wrote me asking for a meeting, and he came over to Philadelphia and met me, and he stated that he could no longer remain in Washington, but wished to be kept bettor informed than he was; that he could not conduct affairs as he wished Q. But you have not told us yet what his business was — what was he endeavoring to do? — A. He told me he was over here — I believed him to be the unaccredited agent and he came over here Q Agent of whom? — A. Under the assurances of the then existing Danish ministr}' and 1 believed he thought he was all right Q. To do what? — A. To agitate the sale of the Danish West Indies without having it appear as coming from their Government and to try to so agitate it that this Government would take it up and carry it through. Q. Well, go on and tell us about your meeting in Philadelphia. — A. As I told you, he stated — he proposed to me I should accept $10,000 or $15,000, for which 1 should give him such assistance as he might require and aid him in any proper manner to help along the proposed transfer, and I told him I did not think 1 could give him any help, but he insisted upon it, and 1 then, on February 22, 1900, entered into such a contract. Q. Was it in writing? — A. Permit me to submit the contract, which speaks for itself; but this was not sufficient for Christmas Q. One moment. This is the contract, is it? — A. That is the con- tract, Mr. Richardson. The original contract? The Witness. Yes, sir. [Francis Rawle. Law offices, 328 Chestnut street, Brown Brothers Building, Philadelphia.] An agreement made this 22 day of Febr., 1900, between Captain Walter v. Christ- mas Dirckinck-Holmfeld, acting as agent for the Danish Government and fully author- ized by said Government to enter into this contract, and Charles W, Knox, witnesseth as follows: Charles W. Knox agrees to devote his time during the period of time herein men- tioned and his best endeavors to assist the said Capt. Christmas in any proper and required manner in securing action on the part of the Executive Government of the United States and of the Senate and House of Representatives in bringing al)out a treaty for the purchase of the Danish West India Islands from the Danish Govern- ment and the ratification thereof and the appropriation of the necessary purchase money. This employment to extend to the present session of Congress or till the consummation thereof during said session. The said Captain Christmas agrees for and on behalf of the Danish Government to pay the said Knox, upon the consummation thereof and the payment of the pur- chase money, the sum of $15,000 in cash and a further sum of $350 per month for his time and expenses during such employment. In case the same is consummated at the next session of Congress the said Knox shall, having given like assistance during said session, receive upon the payment of the purchase money the sum of $15,000 and a like sum of $350 for each month then 102 PUECHASE OF DANISH ISLANDS. employed, or if said knox shall not so assist during the next session said Knox is to receive $10,000 upon the payment of said purchase money and the said monthly amount for all months so employed. W. V. Christmas Dirckinck-Holmfeld. I hereby become surety for the punctual performance of the above contract. W. V. Christmas Dirckinck-Holmfeld. C. W. Knox. Witness: G. BLiJcHER-ALTONA, Pt secH. Mr. Richardson. Witnessed by E. Bliicher-Altona, p't sec't — pri vate secretary ? The Witness. Yes, sir. By the Chairman: Q. Go on with your story in your own way. — A. This, as I said, did not satisfy Christmas. He wished to have the matter so placed before the people that it would not be feared as a campaign issue, and thereby perhaps go through that Congress or the next. Q. Did you part with Christmas in Philadelphia?— A. Yes, sir; and that is the end of that meeting entirely, after that. Q. Did you ever see him after that?— A. I will tell you. Subse- quently he requested me, under this contract between us, that I should direct the employment of prominent writers and perhaps experts to go down to the islands and write articles, and that I should have them widely published in the periodicals and press throughout the country, and I said to him that to pursue such a plan and carry it out success- fully, including the employment of a reputable attorney, might involve $50,000, and I said, "You could not expect to have men at work with- out some substantial guaranty of payment." And he made an effort to procure this guaranty, and he subsequently did, but in the mean- time I had ascertained he was about to enter into a contract to which I objected, and I declined to have anything further to do with the plan, and I saw Christmas once more. I met him by chance in Washington. He was looking pretty blue. When I parted with him I never expected to see him again, and this last time was the time the five-dollar episode occurred which Mr. Hansen so unnecessarily and forgetfully brought into his testimony here. Q. What was that? — A. The fact was this: I gave Christmas my check for $5, and Mr. Hansen will recall that, perhaps, as he indorsed that check himself. I never saw Christmas or heard of him again after that. Q. What was this check given for? — A. I did not wish to bring the thing in or anything like that. The man was hard up, and I think he needed all he could get, but this came out in the testimony By Mr. Hitt: Q. Was it a loan — A. Well, it was not exactly a loan. Q. A gift? — A. I just handed it to him. Q. A "seedy-looking individual," and you gave him |5? — A. He was not seedy looking. Mr. MoCall. Apparently hard up, and you gave him $5 ? The Witness. Y^s. PURCHASE OF DANISH ISLANDS. 103 No. . Ellicoit City, Md., March S4, 1900. Patapsco National Bank of Ellicott City, pay to the order of Capt. Christmas five dollars. stamp. $5.00. C. W. Knox. [Indorsed.] C. W. K. 3/24/00 Capt. Christmas. W. Christmas. Carl Fisher-Hansen. Pay to order Nat'l Union Bank of Md. Apr. 4, 1900. Stein Bros. Pay to order of any bank or trust Co. Prior endorsements guaranteed. Apr. 5, 1900. The National Union Bank of Md. Baltimore, Md. R. A. DiGGS, Canhier. Pay to the order of Stein Brothers, Baltimore, endorsements guaranteed, The National Bank of North America in New York. H. Chapin, Jr., Ca.shier. By the Chairman: Q. Did 3'ou ever have any money from Christmas ?— A. I will say from that date— the 24:th of March, 1900 — I never saw or had anything further to do with the man. I never bribed anybody nor attempted to do so, nor was it contemplated in any part of ui}^ association with the affair, and I never received any money from Christmas for my services or for expenses. By Mr. Hitt: Q. The only thing you had in regard to the Danish Islands from the beginning to end with Mr. Christmas was that one check? — A. That is the actual fact. Q. The pecuniary fact? — A. The pecuniary fact. By Mr. Cousins: Q. It has been said b}' JNIr. Christmas apparently that yourself and Mr. Evans "took an active part in the personal agitation, since they talked with a large number of mem])ers of Congress and agitated for the purchase of the islands." Is that true as to 3'ou? — A. I do not want to be ambiguous in rgard to members of Congress. Do you mean members of the House of Representatives? Q. That includes both ? — A. I never said anything to any member of the House of Representatives. Mr. Richardson. Senators? The Witness. I talked to a number of people. I do not remember any particular conversation, but all of them were simply to ascertain the views of the persons with whom the}^ were conducted; nothing else. I had no occasion to. The Chairman. Did you have any association with Mr. Evans ? The Witness. I did not know that Evans was in the case until about a year afterwards, and just by chance a newspaper reporter or some- body heard me talk about these islands, and he told me that Mr. Evans could tell me more about Christmas than I probably knew, and that was the first intimation I had that Evans had anj'thing to do with it. I did not know him from Adam. That was probably a year afterwards. 104 PURCHASE OF DANISH ISLANDS. By Mr. Cousins: Q. Is that the only contract you had with Christmas ? — A. The only contract. Q. He says he had contracts with both you and Mr. Evans, "accord- ing to which they," meaning you and Evans, "and through them cer- tain members of Congress, should have a share of the commission if the sale took place." — A. Was that translation miade by an interested party or by somebody for yourself? Q. This document purports to be his report. — A. In English? Q. In English.— A. The only thing is that word "they." You see he couples me there with Evans, and the translator has made it very close. Q. He saj^s "they," meaning you and Evans, apparently. — A. I had no such idea, there was no necessity — members of Congress would not have anything to do with it. Q. What I am getting at is this: Is this statement true? — A. What? Q. That mem]>ers of Congress, through you, were to receive money or a part of this commission ? — A. It is absolutely untrue. The Chairman. Just in that connection, Mr. Christmas also says he had to pay your expenses in agitating this question and your bills in the restaurants and hotels. Was there anything in that? The Witness. I never received a dollar of the commission. What purpose? The Chairman. For any purpose. By Mr. Cousins: Q. He sa3^s further on that he was very badly situated and that he could no longer pay Evans and Knox cash. Had he been paying you cash prior to that time? — A. I believe I have repeated what I said five times during my examination. Q. Precisely; but I wanted to call your attention to it. — A. Yes, sir; positively nothing. He paid nothing whatever. Mr. DiNSMORE. Did he ever pay any bills for you at restaurants? The Witness. No. I will tell you. When I came to Philadelphia at his solicitation, I always stop at the Stenton, and he met me there; and I said, "Let us go out to dinner," and we went over to the Belle vue to dinner, and after dinner he insisted on paying for it, and he paid for the dinner, but that is the only thing he ever paid for me in any way. The Chairman. He says you introduced him to Mr. W.J. Bryan. — A. I never met Mr. Bryan. Q. On the cars between Washington and Philadelphia? — A. I said I never met Mr. Bryan. Q. Consequently you never introduced Christmas to him? — A. No. Q. Did I Cinderstand you to say that contract was to coyer this Con- gress? — A. That contract as to work was for the then existing session of that Congress. Q. Did Mr. Hansen, of New York, have anything to do with guar- anteeing your contract? — A. He had not. Q. How many times did you meet him? — A. Mr. Hansen — I never saw him. Q. You never saw him at all. You said something about a sub- guaranty of your contract. What did you mean by that? — A. I beg your pardon, I did not. Q. I understood you to say that you objected to something about a PUECHASE OF DANISH ISLANDS. 105 subguaranty? — A. 1 said, I believe, I objected to contracts which I understood he was about to enter into. Q. With whom ^ — A. 1 did not then know. Q. Why did you object to them? — A. In the first place because I told him if I was to aid him that I was to be informed of everything that should take place, and that I would not be associated with any- body that I did not know without my knowledge, and 1 heard that he had gone to Washington to make a contract. Q. Who was that with? — A. 1 did not get that. ■ Q. But you did hear that he was about to make a contract with somebody ? — A. I understood he was al)out to have Mr. Hansen indorse a contract. That was the onh^ tangible evidence that I had to base my decision on. Q. You heard he was coming here to make other contracts, or a con- tract, and 3'ou objected to that? — A. Yes. Q. Did you notify him of your objection?— A. Yes, sir. Q. "When did j^ou last see Captain Christmas? — A. The 24th of March, 1900; I know that from the check. Q. You said j'ou did not like his associations. Who were Ijis asso- ciates whom you did not like ? — A. Well, that is another way of put- ting it — his associates 1 met in this affair? When did I say that? Q. Just now. — A. In what connection? Q. You spoke in your testimony of not liking his associations or associates. — A. If you will have the stenographer read that I will be able to answer. Q. Were there any associates he had whom you disliked? — A. Yes. Q. Who were they? — A. I disliked Mr. Hansen, for one. Q. You disliked his association with Mr. Hansen ? — A. Yes. Q. What was your objection to Mr. Hansen? — A. Because he had not appeared previously to be very friendly to Mr. Christmas, and I did not think one who had not been friendly at one time would be as well as one who had not shown that condition of unfriendliness. Q. In what way did Mr. Hansen manifest unfriendliness to Captain Christmas? — A. I did not come here to vilifv any of these men con- nected in this thing at all, and I do not care to talk about them. I simply came to try to give my evidence, in the first place, as to whether there was any improper purpose in this affair, and then, also, after Mr. Hansen made that remark about me, I felt that it should be answered, and so I came. Q. You spoke of not liking Mr. Hansen. — A. I do not see that that was any reason to answer that question. Q. You say you never met him. Did you ever have any correspond- ence with him? — A. I never had any correspondence whatever with him. Q. Were there any other associates of Captain Christmas whom vou disliked ?^A. The whole atmosphere of his conversation of the people whom he had been thrown with was such that I considered if the thing- was to go on it should be entirely a new sheet. I told him to break- away with everybody and to go into nothing that he had not my sanc- tion in. His experiences, as you can see in his report, were such that it was better for me if I was to have anything to do with it to know what he was going to do. And if tliat thing had gone on I would have employed a reputable attorney and I would have referred to people whom I know here to aid me in the direction of the thing. I was H. Rep. 2749 8 106 PUECHASE OF DANISH ISLANDS. \iery enthusiastic about it, because I knew the islands were an addition to the country and that the sooner they were acquired the better. Q. How were you to earn the $15,000 that Captain Christmas con- tracted to pay you? — A. He made one proposition Q. What was that? — A. Simply, as 1 said, to direct these men to go down there for one thing and to see that the proper articles were put in the proper places and to look after matters in Washington, and that included at lea^^t two years. Q. It was all to be done during that session of Congress? — A. I beg your pardon. Q. During that Congress it had to be done? — A. No, sir; that con- tract is now in existence; it is still alive. Q. It was to continue until the consummation of the purchase, was that it? — A. That is the idea. If 1 did the work for that Congress — such work as he desired, not such work as I would desire, but such assistance as he desired, and it was consummated during that Con- gress, I was to receive $15,000, but even though it was later consum- mated I was to receive $10,000, and I held m3\self in readiness that I would aid him in any way as long as he fulfilled his promise. Q. Did you state last week to Mr. Evans, or to any gentleman in Mr. Evans's office, that you had an agreement in regard to a contri- bution to be made to any campaign fund? — A. No, sir. Q. Was there any such agreement? — A. Not the slightest. Q. Nothing of that kind? — A. Not of the slightest. Q. You said that was the only contract you ever made with Captain Christmas? — A. That is the onl}^ one. Q. Do you know of his contracts with anybody else? — A. No; I was kept entirely in ignorance of that. 1 did not know of the con- tracts until I read of men coming here and testifying they had them. I did not know of any contracts the}^ had. I believe he told me as I was about to break with him that he had made other arrangements with other people. Q. He mentioned in his report that you claimed to be an intimate friend of Senator Hanna. Was there anything in that? — A. I never claimed I was an intimate friend. Q. He saj^s so. Was that true or not? — A. I saj^ I never claimed that I was an intimate friend. Q. Did you claim to know Senator Hanna at all ? — A. I know Sena- tor Hanna, but I do not know that I mentioned his name. Q. I ask you that because he says so in his report. Now, he says, "I had as my especial assistants two men, C. W. Knox, who was an intimate friend of Senator Mark Hanna." — A. I think Senator Hanna is a friend of mine Q. But the question was whether you represented to him that Sena- tor Hanna was an intimate friend of yours? — A. No; I did not. I do not know that I ever mentioned Senator Hanna's name. By Mr. Dinsmore: Q. At the time you suggested to him he was about to enter into con- tracts with other people to which you objected, did he tell you with whom those contracts were to be made? — A. He did not. I did not know it from him at all; I got it through his private secretary. Q. You mentioned it to him afterwards. In that conversation did he say anything in justification of his conduct in making contracts with other people? — A. I made it in a letter. I never saw him; I only met PURCHASE OF DANISH ISLANDS. 107 him by chance after that, because I would not have anything to do with the man at all. Q. I believe you answered that you did not know with whom those contracts were?— A. I did not. 1 met his secretary in Philadelphia, and his secretary was in a condition that he told me all that I cared to know. By jNIr. Richardson: Q. You live in Maryland? — A. Yes. Q. What are your politics? — A. I was born and bred a Republican. Q. Do 3'ou know what are Mr. Evans's politics? — A. No, sir; not at all. STATEMENT OF HONORABLE A. 0. BACON. By the Chairman: Q. You are a United States Senator from the State of Georgia? — A. Yes. Q. And 5^ou were United States Senator during the last Congress ? — A. Yes, sir. I have been Senator since the beginning of the Fifty-fourth Congress. Q. Do you know Captain Christmas? — A. I do not know how broad that question might be. I have seen him, but I do not know that I would know him by sight if I were to see him now; but I did see him, 1 recollect, twice in Washington. Q. He savs that you, together with certain other Senators whom he named, took a great interest in the matter of the acquisition of the Danish West Indian Islands, and promised the very best assistance to him. Is there anything in that?— A. Will you kindl}^ read what he says. I did not know he mentioned my name except at one place where he said he had formed my acquaintance. The Chairman. On page 21 he says: ''I had, as above-mentioned, at last made the acquaintance of difierent members of Congress, for example. Senators Lodge, Depew, Clark, Bacon (the last two were Democrats); members of the House, Alexander. Gardner, and others. They all took a great interest in the acquirement of the islands and promised me their very best assistance. I got them to esta])lish the price of $4,000,000, as the prime minister had desired." What have you to say in regard to that? — A. That is absolutelv untrue so far as I am concerned. So far'from that being the truth I did not desire the Government to acquire the islands and do not desire it now and am very sorry for what appears to be the necessity for that fact. AVith the permission of the committee I will tell all I know with reference to any personal communication between him and m3'self. Q. Certainly.— A. As I said in the lieginning, I only remember to have seen him twice, each time in Washington. The tirst time was at a private house in this cit3'at an afternoon reception where there were a number of callers, and he was presented to me apparently in an entirely incidental way, just from the fact we happened to be standing- near each other, and the person presenting him, I really do not remem- ber who it was; it was some lady, however, I remember that, stated he was a captain in the Danish navv. and in the same connection, probably in the same sentence, said that he was here in the interest of the sale of the Danish West Indian Islands to the United States. I 108 PURCHASE OF DANISH ISLANDS. did not desire the acquisition of the islands, and consequently I made no reply to that statement at all. I did not encourage any conversa- tion in that line, and the only thing that passed between us was in the nature of the most commonplace civilities between strangers. Not a "word said either by him or by me as to the Danish Islands, and in possibly less than a minute we were separated in a crowd, and 1 saw no more of him. The other time I saw him was equally as accidental, at a reception of Mr. McKinle}^, in the East Room at the White House, where the crowd was, as is usual, thronging, and in a purely accidental way I was thrown near him, or he near me, 1 do not know which. His wife was with him at the time, I remember, and I spoke to him and we had again some of the most commonplace civilities without a word said in regard to Denmark or the West Indian Islands. If he had said anything about them I should have turned the subject, because I would not have desired to be rude to him, and if I had said anything at all expressing my own wish, it would have been that I hoped he would fail in his mission — I use those words "fail in his mission" because I supposed at that time he was an officer in the Danish navy and was the accredited agent of the Government. Mr. HiTT. Was he in uniform? Mr. Bacon. No, sir; neither time. I supposed from the manner in which he had been introduced to me that he was an officer of good standing in the navy and had no idea of what I have since learned of his disgrace in the navy. I supposed he was a properly accredited official of the Government, and as the matter of the sale of the islands "was being agitated, I supposed he was the duly accredited agent, and for that reason I would have been more guarded than I would other- wise have been. As I have said, I did not desire the acquisition of the islands, and if anything had been said about their purchase I could not have answered him in an encouraging manner. On the conti-ary, I would have told him that I hoped he would not succeed in his mis- sion, as I did not think it was to the interest of this Government to acquire those islands; and I do not think so now. I think it is a great misfortune, not very great, because it is a very small atl'air, but I think it is a misfortune that we are in a position where we are compelled to take them. Now, I do not know "whether there is any other mention of my name here or not in the document, I simpl}- glanced through it The Chairman. I think there is no other mention of your name. Mr. Bacon. I deny most explicitly there is" the slightest foundation for an}^ statement of that kind made there relative to myself. If you will permit me, as I have said I did not desire the acquisition of the islands — it is not directly in the line of this investigation — but possibly it is due to me to state why I did not oppose the ratification of the treaty. That has all been made public, and there is no harm in my stating the fact that there was no dissenting voice to the ratification of the treaty. My only reason for not opposing it — believing as I do their possession is not to our interest — was that believing that Den- mark had them on the market and intended to sell, I thought we could not sa}' to her, under our view of the Monroe doctrine, she should not sell to anybody else and at the same time we would not buy them. I do not know "where it is going to lead us to ultimately, but I did not think it was a matter of sufficient importance to raise the issue whether the jSIonroe doctrine would require that or not. My acquiescence in PURCHASE OF DANISH ISLANDS. 109 the ratification was soleh^ on that ground, and I still think the islands are entirely unnecessary to us, and regret the necessity for their acqui- sition even if we got them for nothing. I think we have got a suffi- ciency of population of that kind, about as many as we can take care of in the present generation and the next one, too, for that matter. The Chairman. I want to state to the connnittee I wrote to the Secretary of State after this investigtition began, and sent him a copy of this pamphlet, and I have here a letter addressed to mo as chair- man of the committee, which I will read: Department of State, Washington, April 3, 1902. Hon. John Dalzell, Chairman Select Committee, etc.. House of Tiepresentatires. Sir: I have received your letter of tlie 31 pt of March, and in reply beg leave to say: In the early part of December, 1899, Captain Christmas called upon me at this Department, and informed me that, through private and iiersonal sources in Copen- hagen, he had become aware that there was a disposition among some of the leading members of the Danish Government to regard favorably an overture from the Gov- ernment of the United States looking to the acquisition of the Danish Islands. He said that he had been a naval officer,, and spoke at some length in regard to the desir- ability of the island of St. John as a naval station for the United States. At my sug- gestion he conveyed what further technical information he had on this subject to Admiral Bradford, of the Navy Department. Although he presented no credentials whatever and expressly declared he had no official character, I thought his story was of sufficient interest to be worth investigation. I told him I would send a coniiden- tial and trusted agent of this Government to Copehagen to ascertain miofficially the true state of affairs, and mentioned to him the name of Mr. Henry White, first secretary of embassy at London. Captain Christmas said he would like to be in Copenhagen when Mr. White arrived, and bring him into communication with the members of the Government whom he mentioned. I gave him a note of introduction to Mr. White, and they met in Copenhagen, where Captain Christmas had arranged for an interview between ISIr. White and a member of the Danish Government. ~SVr. Christmas was not present at this interview, and his connection with the matter ceased entirely at that time. He afterwards returned to Washington, and I saw him once or twice, but told him that there was no need of the services of any private person in any negotiations which might be taken up between the two Governments in regard to the acquisition of the islands. I inclose a copy of a letter which I gave the Danish minister in Washington at the time of the signing of the recent treaty, and also a copy of a letter which I have received from the Danish minister, Mr. Brun, dated the 31st of March, 1902. Very sincerely, yours, Jonx Hay. The Chairman. The letter inclosed I will also read. No. 369.] Department of State, Washington, January 24, 1902. Sir: On this gratifying occasion of signing the convention we have negotiated for the cession of the Danish We.st India Islands to the United States, it appears to be expedient to advert to a phase of the matter which came into view during our con- sideration of the bases of agreement, but w^hich from its nature did not admit of expression in the formulated convention. In your note addressed to me on the 23d of November ultimo you said: "Your excellency will remember that during the long time of these negotiations private parties have repeatedly tried to impress on the negotiators the necessity of their good offices in order to attain the adoption of the treaty, with a view to obtain some compensation for themselves under the name of commission, provision, or others. The Danish Government is under obligation to nobody in this respect, and your excellency has been good enough to inform me that the United States Govern- ment also has incurred no such obligation." Eesponding to the desire expressed by you it affords me much pleasure to confirm in a more formal way, as I now do, the statements in this respect which I have made to you orally heretofcire. The Government of the United States is in no manner under obligation to the good 110 PUECHASE OF DAT^ISH ISLANDS. offices of private parties in reaching the agreement now happily brought about between the United States and Denmark, and can not admit for its own part, or sup- port in any way any such claim against Denmark for commission, compensation, or remuneration of whatever nature, which might be made by private parties for alleged services in connection with the cession of the islands in question to the United States. Be pleased to accept, sir, the renewed assurances of my highest consideration. John Hay. Mr. CoxsTANTiN Brun, etc. The Chairjuan. The other letter referred to as inclosed is as follows: [Personal.] Legation de Danemark, Washington, D. C, March 31, 1902. My Dear Mr. Secretary of State: With reference to our conversation this morn- ing and to your question in regard to the standing of Captain ( Siamese navy ) Christ- mas, I do not hesitate to state, as I have done before, that Captain Christmas had no authorization whatever to enter into negotiations in the name of the Danish Gov- ernment for the cession to the United States of the Danish West Indies, nor to make any promises in the name of that Government in connection therewith. I did not during his stay in this country authorize him to take any measures con- nected with the negotiations for said cession, nor did I give him any introduction to that effect, but, on the contrary, refused his request. I am, my dear Mr. Secretary of ^tate, respectfullv, vours, C. Bkun. TESTIMONY OF MR. ISAAC N. SELIGMAN. Isaac N. Seligmais, sworn and examined. By the Chairman: Q. Your place of residence is New York? — A. Yes, sir; New York. Q. You are a member of what firm? — A. 1 am a member of the firm of J. & W. Selig-man & Co. Q. Their business is what? — A. Bankers. Q. How long have _you been a member of that firm? — A. I have been a member of the firm since 1878, I think. Q. Do you know Captain Christmas? — A. Yes; I have met him a number of times in our office. Q. Will 3"ou state what particular relations you had with Captain Christmas? — A. Yes, sir; I will be glad to do so. If I recollect cor- rectl}^ it was some time in October or November, 1899, that he came to our office, introduced 1 forget by whom, and he stated to us that he was the representative of the Danish Government unofficiallj% as I recollect, in the matter of the sate of the West Indian islands to be made to the United States, and that he was substantially directed by his Government, also unofficially, to say to it that the sale could take place on a fair basis (I think he mentioned four or five million dollars, I forget the basis), and that he was desirous of obtaining the instru- mentality of reputable bankers to undertake the transmission of the money on commission, etc., and asked us whether we would do it. We told him, yes; that we would be ver}^ glad to do it. He then told us that he was to receive, as I understood it, a commission of 10 per cent as commission in connection with the matter, and that he would give a banker's commission of 2^ per cent commission for all work that we could do, and if I recollect correctly we should pay all com- missions on the other side, exchange, transmission of money, etc. He made a fairly good impression. He then told us that Privatbanken PUECHASE OF DANISH ISLANDS. Ill was the bank in Denmark in touch with the Government and that the moneys woukl be i)aid over through them to us, as 1 understood it. He then asked us at the time, if I recollect correctly, for an intro- duction to the President. It happened that Mr. Scott, a special friend of ours, of San Fi'ancisco, of the shipl)uilding interest — — The Chairman. The Union Iron Works. The Witness. The Union Iron Works. He is a special friend of our bank in San Francisco, and he was in the office and we introduced Mr. Christmas to him, and asked him whether he would introduce Mr. Christmas to the President, and he said that he would do so gladly, and I believe that Mr. Scott came on within the next few days and did so. That is as far as we recollect any arrangement we made as far as an introduction is concerned. Without hearing anything for some time, in order to more clearly establish Mr. Christmas and his entire arrangement, we then wrote to the Privatbanken, Denmark, in reference to this entire business, and the letter which we received from them was not entirely satisfactory, was no confirmation what- ever from the Government that Mr. Christmas was the agent or that moneys were to be paid so thereafter; we substantially dismissed the entire business from our minds. That is substantiall}^ the entire con- nection we had with Mr. Christmas. Q. You do not happen to have that letter you got from the Privat- banken? — A. Yes; I have our letter here. This is the letter which we had written to the director of the Privatbanken, but the answer, which we had, we have not got, as Mr. Christmas has it. In looking it up the head of our department told me that that letter was not at all satis- factory. • Q. This is not the letter from the Privatbanken? — A. No; that let- ter we received Mr. Christmas has. This letter was the letter which we wrote to Director Larsen, of the Privatbanken, Copenhagen. February 28, 1900. Director Larsen, Privatbanken, Copenhagen. Dear Sir: We beg leave to state that Capt. W. v. Christmas Dirckinck Holmfeld has informed us of your desire to take part in the final negotiations in regard to the suggested sale of the Danish West India Islands, so that, in that way, the Privat- banken in Copenhagen should receive the sum of money from the selling of these islands directly from our firm here. We take pleasure in communicating with you in this matter, and would say that, although we do not doubt the authority of Cap- tain Christmas when he states that the Danish Government accepted us as the bankers on this side, we have never received any formal or oflicial notification of this. Yours, respectfully, J. & W. Seligman & Co. The Witness. The answer to that letter we have not got, but the head of our department's recollection now is clearly that Mr. Christ- mas kept that letter and was very much disturbed from the fact that the answer was not satisfactory. The answer was no confirmation whatever, and substantially it was unsatisfactor}^, but I forget the wording, except there was no confirmation whatever by the Govern- ment that any mone}" should be sent to us and that we should be in any way appointed as bankers for the transmission of the money. After that we substantially dismissed the matter from our minds, and I do not think that Mr. Christmas ever again — he probably felt at the same time that the matter was not very satisfactory and he never came to see us any more. 112 PURCHASE OF DAXISH ISLANDS. Q. You never did get any confirmation of his statement? — A. Ko; we did not. Q. Consequently there never was any money transaction between you and Mr. Christmas? — A. Nothing whatever. Q. Nor was there any authority to you from the Danish Govern- ment? — A. No, sir; none whatever. Q. Or from this Privatbanken ? — A. Never. Q. That, as I understand, substantial!}' ended your intercourse with Mr. Christmas? — A. Yes, sir; I do not think I saw him again. My cousin might have seen him once or twice, but I never saw him after that. By Mr. Richardson: Q. Do you know as a fact, from any other sources, whether Captain Christmas had a contract with the Danish Government for 10 per cent of the purchase price of the islands? — A. No, sir; I do not. Q. Did you have any information from Denmark on that subject from anj'one? — A. No. Q. From nobody?— A. No. Q. Did you have any correspondence with anyone on that subject? — A. No. Q. Do you know Mr. Fischer-Hansen? — A. 1 think I know him, but not from an}^ connection with this matter. He is the son-in-law of Mr. Brokaw. and 1 think I have met him at the seashore, but Q. Did you know him personall}", have you ever talked with him? — A. Never on this subject. I may have known him personall}' down at the seashore. , Q. Is Mr. Fischer-Hansen a man of means, a man of some wealth? — A. I do not know that he is. His father-in-law is a ver}- wealthy man. I rather think he is not himself; he is a j^oung lawyer. Q. His father-in-law is quite wealthy, and you gave his father-in- law's name? — A. Yes. By Mr. Hitt: Q. You said the answer sent you by the Bank of Copenhagen did not confirm the statement of Captain Christmas as to his contract with the Danish Government. Did it destroy your belief in his state- ment that he had such a contract; did it contradict it substantially?— A. I rather think it made us suspicious about the business for the reason the letter — 1 have not the letter, as he has it, I do not know whether it is given in evidence — but the latter, as far as I recollect it, was not satisfactory in any way, that the bank stated, as far as we recollect it, that Christmas was not authorized in any way to act for the Government, and that they were not prepared to make any con- firmation of anything. Q. It contradicted his statement that he had a contract for 10 per cent on a vast sum? — A. Yes. By Mr. Richardson: Q. In the first interviews with Captain Christmas, what was your banking firm to do — were you to guarantee contracts ? — A. None what- ever, ^rhe idea was that he wanted to have a reputable firm connected with the business in order to make as strong as possible the arrange- ment; and, further, he desired in case of necessity that an}' commission paid on the other side would be paid by us out of the commission we were to receive. PURCHASE OF DANISH ISLANDS. 113 Q. Yoli stated just now somethinj^ about the Privathankon iu Copenhagen were to send money to 3'our tirm. — A. Then 1 think 1 made a mistake. Q. Was it not the understanding that your firm was to handle the purchase money? — A. Yes; and to remit the money to them. Mr. HiTT. What credentials or evidence of character did Mr. Christ- mas present when he appeared? — A. He was introduced to my cousin by a friend; 1 do not know who he was. He came in and made a rather good impression. He was known in New York by quite a num])er of gentlemen there, and the fact of his introduction to us was sufficient; but after we made inquiries we dismissed the entire business from our minds, we did not give the matter very serious consideration. Mr. Cousins. He sa3's in his report, on page 25, "Here 1 have been obliged to place my own person and m}'^ personal property as security, and, besides, Seligmans have (who have absolute confidence in me) placed their highly respected name as guaranty for my administration of the 10 per cent." The Witness. That is unqualifiedly and wholly untrue, made out of the whole cloth. Thereupon the committee adjourned to meet at the call of the chair- man. June 23. — At a called meeting of the committee held this day the chairman submitted the following communications addressed to him- self, which were ordered to be printed: DurARTMENT OF StATE, Washington, May ^, 1902. Hon. John Dalzell, Chairman Select Committee^ United States Senate. Sir: I have the honor to inclose a copy of a dispatch just received from Mr. Swenson, United States minister to Denmark, relating to the subject with which your committee is at present occupied. 1 am, sir, very respectfully, yours, John Hay. No. 252.] April 14, 1902. Hon. John Hay, Secretary of State., Washington. D. C. Sir: 1 have the honor to inclose herewith, for your information, a copy of a communication addressed to me by Walter Christmas, Tinder date of the 8th instant. In acknowledging the receipt of the same I respectfully declined to cable the contents thereof to the Sec- retary of State. In view of Mr. Christmas's character and his absurd and contradictory statements regarding his alleged connection wnth the negotiations for the cession of the Danish West Indies to the United States, I attached no importance to the representations set forth in the inclosed letter. It is quite generally understood here that Mr. Christmas and Mr. Gron are engaged in a purely personal controvers}'^, and that their attempts to paint each other as black as possible are actuated by motives of revenge. Statements emanating from these two persons are viewed with suspicion. In my No. 246, of the 5th ultimo, I reported that the opponents of the treaty were airing the Gron-Christmas scandal hoping therebj' to 114 PURCHASE OF DANISH ISLANDS. arouse popular indignation and to influence the Rigsdag against ratifi- cation. The newspapers have kept the subject before the public, and crimi- nation and recrimination have been the order of the day. No oppor- tunity has been lost to give the scandal a serious aspect. The bribery investigation recently ordered by the lower House of Congress has been sedulously made use of for that purpose. Few persons believe that the negotiations were in anyway influenced by unofficial agents or that suggestions of corrupt means were ever made or countenanced by either of the two Governments. The Danish prime minister, Mr. Hovring, is thought to have been indiscreet in his dealings with Mr. Christmas; and other individuals are criticised for having had anything to do with the two adventurers mentioned above; but beyond that the matter is not taken seriously. Nevertheless, the fact that such wide publicity" has been given to the scandal causes a feeling of humiliation among the Danes, and rather strengthens the opposition to the cession. * * * 1 have the honor to be, sir, your obedient servant, Lauritz S. Swenson. [Inclosure in No. 252.] 9 Skjoldsgade 0., Copenhagen, April 8, 1902. His excellency The Ambassador for the United States in Copenhagen. Your Excellency : Nearly two months ago some Danish gentlemen engaged a Danish-born American citizen, named Niels Gron, to prevent the sale of the West Indian Islands. By foul means one of these gentlemen got hold of a confidential report of my doings in America, and provided Gron with a copy of the same. I have reason to believe that Gron has falsified my report, and I am already able to state — from newspaper cablegrams — falsificatons on following points: (1) I have never impressed the former prime minister, Hovring, with the idea that bribery was the way of getting the islands sold. I never wrote anything like this in my report. The fact is that Gron two years before my taking the matter up invented the whole 10 per cent commission theory, and declared that without spending this money no sale was possible. 2. Nowhere in my report have I given the name of any Congressman in connection with my personal promise of money. 3. I have never written that bankers I. and W. Seligman had guaranteed " certain contracts. ' ' I have, on the contrary, stated that these gentlemen declined to do so. 4. I have never in any newspaper declared Mr. Gron's copy of my report to be correct, for the simple reason that I have never seen any copy. I do not understand how Congress can take up a matter like this without investi- gating about the informer, Niels Gron, and his so-called translation of a stolen docu- ment belonging to the Danish Government. After what I can judge, Mr. Gron has utterly falsified my report. On "the 19th of February I have, through Ritzaus Bureau, sent to all Danish news- papers a declaration by which I, under my oath, state that no members of Congress in Washington were interested directly or indirectly, with my knowledge, in the sale of the islands. This declaration I deposited the next day in the Danish foreign office, demanding to have it forwarded to our ambassador in Washington. I sincerely regret that the minister of foreign affairs declined to do so, and I do not understand his motives; the whole scandal might have been avoided. I hereby entreat your excellency to cable the contents of this letter to Secretary of State, Mr. Hay, and I offer to pay the cable expenses myself. I have the' honor to remain, your excellency's most obedient Walter Christmas. PURCHASE OF DANISH ISLANDS. 115 Department of State, Washington, May 2, 1902. Hon. John Dalzell, Clutirinan Select Committee., United States House of Representatives. Sir: I have the honor to inclose a letter received this morning from Mr. Henry White, secretary of our embassy in London, which he requests me to send you. I am, sir, very respectfully, yours, John Hay. American Embassy, London, April 23, 1902. Hon, John Dalzell, M. C, Cltainnan of the Select Com/mittee on Ptirchase of Danish Islands^ House of Representatives, Waslun(jt