The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1909-02-03
PANAMA FRAUD EXPOSED.
SENSATIONAL CHARGES AGAINST
CROMWELL AND ROOSEVELT
ADMINISTRATION.
Rainey Declares That
Present Administration and Next
President Have Aided I'm Railroad
Fraud in Central America.

Washington, Jan. 26.-Charging that
William Nelson Cromwell, Roger L..
Farnham. Charles p. Taft and others
are parties to the "most infamous
railroad proposition ever submitted to
any government" and that they "are
being permitted not only to rob the
republic Of Panama but indirectly the
treasury Of the United States" Repre-
sentative Rainey Of Illinois today di-
rected the searchlight of publicity
upon affairs in the canal zone In a
startling speech in support Of his res
olution providing for an Investigation
by congress of the Panama canal pur-
chase. 'Tn their efforts in this direc-
tion." he continued. "they have had
so far the complete cooperation and
active assistance Of the present ad-
ministration and of the next president
of the United States"
Mr.. Rainey traced the history of
the proposed canal 400 years back
and warned that we have already
started in the direction of the rocks
upon which the French companies
were wrecked.
Referring to the governments libel
suit against the New York World
and the grand jury Investigations now
In progress in this city and in New
York. Mr.. Rainey said:
''If we are to carry this project
through to a successful conclusion.
We must avoid graft. 1t is not the
part Of wise statesmanship to dispose
of resolutions asking for an investiga7
ton of any phase of the canal ques-
tion with the sweeping and absolutely
unsupported official declaration that
there is nothing to investigate. 1t Is
not the part OF sound craftsmanship
and true patriotism to attempt to re-
vive the obsolete common law rem
edies Of 200 years ago and to employ
all the tremendous agencies Of the
government In attempting to crush
newspapers which have had the cour-
age to call attention to q questionable
transaction in connection with the ca
nal"
He submitted for record various
papers and documents in support of
many allegations contained In the
speech.
Mr.. Rainey was particularly bitter
In his denunciation Of Mr.. Cromwell,
general counsel for the New French
Panama Canal Company and counsel
and q director Of the Panama rail-
road. which is owned by the United
States government. He charged that
through the manipulations Of Mr..
Cromwell the French canal company
was permitted to steal from the Uni
ted States government $3,000,oo0 or
$1,000. 900" and that after he had be-
come an officer in fact Of the United
States. he became a party to an. at
tempt to collect from the United
States fraudulent claim on the part
OF the canal company Of 50. zoo, ,000."
He also was unsparing in his attack
upon Don Jose Domingo De Obaldia.
president OF Panama. who. he said,
represented "as no other spanisl,-
American statesman in his generea.
ton all that is corrupt in Spanish
American politics"
without Obaldia," he stated.
"Cromwell's career would have been
impossible. Without Cromwell, ObaH
dia would have been impossible"
Against President Taft. now
en- route to the canal zone, Mr.. Rain
ey directed the accusation that. on the
occasion Of his last trip to Panama
In May "he did nothing on the 18TH
mus except to openly push the candi-
dacy Of Obaldia for the presidency"
He asserted that very thinly yelled
threat to seize the republic II Obaldia
was not elected was contained in a
letter written by Mr.. Taft to the then
President Amador and that to prevent
this. Arias. Obaldia's opponent, with
drew.
Reference to President Roosevelt
recent attack on Senator Tillman was
made by Mr.. Rainey in asserting that
Senator Lodge Of Massachusetts was
responsible for the expenditure on
January 1, last, of over $1,OOO,0OO for
the purchase of the steamships Shaw
NUT and fremont for the Panama
Railroad company, which the canal
commission did not want and did not
need. but which We're bought because
the constituents of the senior senator
from Massachusetts, wanted tn sell