Show PUBLISHERS PREfER TO ANS VER CHARGES oi Of liBEL UBI AT a HOME Case Involving the Alleged Panama Canal Scandal Is on at Indianapolis INDIANAPOLIS June 1 Charged 1 Charged with havIng laving committed criminal libel l in publishing publishing publishing pub pub- lishing articles charging that there was corruption in the purchase of the Panama canal anal by the United States Delavan Dela-an Smith and Charles R. R Williams owners of the tho Indianapolis News appeared before before be be- fore tore Judge Anderson in the United States district court ourt today resisting the effort of oC the federal government to remove them for Or trial to the District t of Columbia where a grand rand Jury found Cound the Indictments against them and the proprietors of or the New York World In the same Iamo- matter Stuart McNamara assistant UnIted States StatER attorney for tho tim District of oC Columbia Co- Co lumbia made mad the governments government's opening statement He lIe said the defendants had published in their newspaper charges thata that thai a i syndicate composed of C. C P P. Taft raft Douglas Doug- Doug las has ns Robinson William Nelson Cromwell 1 T Morgan and others bought from Crom the old Panama Canal Its company compan se seI securities so- so I for Or about and by use usa of oC their Influence in the high places of the government were enabled d to unload 1 the Panama property on the United States for about thus wrongfully taking tak tak- In lag ing an enormous profit Mr McNamara asks that Judge Anderson Ander- Ander son hon sitting as ns a committing magistrate mal make c an order removing Smith and Williams to the District of ot Columbia for COl trial Say Indictment Ferdinand Winter Inter for the defense maintained that the Indictment was de defective defective do- do on Its face that tho the offense allEged alleged al- al eged was not one ono in which defendants could be removed remo from their own United States district to another nother for tor trial He Ito called the first witness Ernest Ernet J 1 iS Lewis rewIs a staff correspondent ent for Cor the th Indianapolis News to examine him as asto to Instructions given en to him for foi the writing of certain articles ar ar- ar- ar tides tlell'S but objection was raised by United States Attorney Miller for this district Mr Winter contended that It way was proper to attempt to show an Indictment was faulty or baseless as bearing upon an application application ap ap- ap- ap for removal In this case he lie said eald actual malice must be shown and this ho held would be Impossible Evidence Is Heard The court ruled that he would woul hear the evidence evl Mr Lewis proceeded to testify testify tes tes- tes- tes that he lie was about th the national Republican Re- Re publican and Democratic bea headquarters quart rs In Chicago In October of 1908 and that there was gossip of tho the conditions of oC the trans fer of Panama canal zone to the Id I'd States hut but he hI took tool no notice of the matter In his dispatches I to his newspaper e l He until after the publication I in a Chicago iW J newspaper of a cable from Paris bearing on the subject and that he lie had no Instructions Instructions' in instructions In- In from the defendants as all to hia his Cn on p. p page Jt C. C i PU PUBLISHERS LISHERS PREFER Continued from page 1 11 course in reporting these rumors and alle I- I Following an argument on the nature of or malice as it must appear in a successful success success- ceIlS ful prosecution for criminal libel the court commented that If it an editor of a New York newspaper for tor instance were absent on his yacht t and a libelous s statement statement state state- r oe p-hl p ment were printed r In his paper stat I in tat his absence he should not In the opinion of the court be guilty gUilt by neglect of crimInal crim crim- inal libel This opinion was questioned by the tho prosecution Quotes Former Fonner Decision Neglect the court ourt continued was as not criminal as appeared and appeared-and and here Judge Anderson smiled broadly mn In In the somewhat somewhat somewhat some some- what notorious Standard Oil case Alleged A go ir Intimations n that n a profit fihe of o fraudulently o obtained had been divided among the members of t the Panama Panama Panama Pan ama syndicate as In the In Indianapolis Indianapolis In- In News were read by District Attorney Altorn Sillier Miller In an effort to show the defendants were malicious One of the editorial sentences was some Rome da day the thieves that robbed their country will be bo discovered Other Papers Started Th Thc court permitted the examination of witness to proceed l. l Mr Lewis said h had heard a f gossip Si of a Panama n canal anal graft at the political tore and In the hotel lobbies or of Chicago hut but MUI h m he had not run written n ui of It it In in his nis paper pa paper pa per until after he saw In the h Chicago Dally Daily News W a c cable le dispatch c containing o the same same allegations lYe lie then included In a dispatch to the Indianapolis News the Chicago News cablegram lIe He further quoted from an editorial In the Chicago Journal al saying that at If the A American II 1 people h had been neen mulcted IC 3 and If Charles P. P Taft had a hand In th the fraud the thc matter should be known to the public at once |