The San Francisco call., 1909-01-27
GRAFT IN CANAL
DEAL IS CHARGED
Congressman Bitterly Attacks
Panama's President and
Director of Road

WASHINGTON, Jan. 26.-A bitter at
tack on William Nelson Cromwell,
President Obaldia of Panama and others
by Rainey of Illinois was made in the
house today. The postoff1ce appropria-
ton bill was under consideration, but
Rainey spoke under license of general
debate and was unsparing in his
charges of corruption against the per-
sons named.
At the conclusion of Rainey's speech,
Stevens of Minnesota and Kusterman of
Wisconsin expressed their disapproval
of his remarks and entered defense
of the accused
Rainey traced the history of the pro-
posed canal 400 years back and warned
that I'VE 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
grand jury Investigations now under
way in this city and in New York,
Rainey said:
II We to carry this project through to
successful conclusion we must avoid graft.
1t Is not the part of wise craftsmanship to
dispose of resolutions asking for investfga-
ton Of any phase of the canal question with
the sweeping and absolutely unsupported Of
fetal declaration that there is nothing to In
vestigate. 1t is not the part of sound states
manship and true patriotism to attempt TO
revive the obsolete common law customs of
200 years ago and to employ all the ire
mendous agencies OF the government in at
temDiing TO crush the newspapers which have
had the courage to call attention to ques-
tionable transaction in connection with the
canal
Rainey was particularly bitter in his
denunciation of Cromwell general
counsel for the new French Panama
canal company, and counsel and direc-
tor of the Panama railroad, which is
owned by the United States govern
ment He charged that through the
manipulation of Mr.. Cromwell the
French canal company was permitted
to steal from the United States govern
ment three or four million dollars" and
that after he had become an officer in
fact Of the United States, he became a
party to an attempt to collect from
the United States fraudulent claim
on the part of the canal company Of
$4,000. 900"
He also was unsparing in his attack
upon Don Jose Domingo de Obaldia,
president of Panama, who, he said
represented "as no other Spanish states
man in his generation all that is cor
rupt in Spanish-American politics.
Without Obaldia" he stated, "Crom-
wells career would have been impos-
sible. Without Cromwell, Obaldia
would have been impossible
Against. President elect Taft, now
en- route. to the canal zone, Rainey
directed the accusation that on the oc-
casion Of hi strip to Panama in May
'he did nothing on the isthmus except
10 openly push the candidacy of Obal-
dia for the presidency.
THE plan Of Mr. Cromwell and his
associates continued Raney was to
absolutely appropriate to their own
use the revenue of the republic and
to steal the forests and the public
lands The necessity for Mr.. Taft's
interference and for the. election of
Obaldia becomes now as plain as day.
Rainey claimed the absolute attention
of the house and he was frequently
applauded.
Incensed at the remarks of the Illi-
nois member, Stevens of Minnesota de-
clared it to be extremely regrettable
that any member of this house feels
called upon TO rise in his place and
SANDER the ruler of a friendly republic
and defame the administration of his
own government