The Washington herald., 1909-01-27
Rainey Makes a Sensational
Speech in House.
ASSERTS CONSPIRACY EXISTS
Charges that President-eIect Taft
Caused Election of Panama Presi-
dent by Threatening TO Seize Little
Republic IL ObaIdia Was Not Sue
cessfuI-Pays Respects to President.

misstG.sment OF facts in his special mes
sage TO Congress Just after his return
from Panama in 1906. and chsracterizing
William Nelson Cromwell as the worst
buccaneer OF the decade and a despoiler
Representative Henry T. Rainey. OF Hi
nois. yesterday delivered d sensational
speech or the Panama Canal situation
Mr. Rainey recited history, dating back
40 years, on the canal project. and
warned the members OF Congress that
the United States had already started
II the direction OF the rocks upon which
the French companies were wrecked.
Mr. Cromweus connection with the
Panama deal, his close associations with
affairs in Panama. and his activities IN
Panama politics were pointed out by Mr..
Rainey, and be declared that the Presi-
dent and the President-elect had given
their Endorsement Of this despoiIer's &C
tons
Plans Another Attack.
7 viii speak again. said Mr. RaIney.
and when 7 am through with this man
Cromwell the President and the Presi-
dent-elect VIII be welcome 10 all Of
him that is left"
Mr. Rainey was unsparing IN his de-
nunciation OF Mr.. Cromwell. and tine and
again he branded his intimate association
with President Don Jose Domingo De
Obsldia, Of Panama. as a conspiracy.
Against Mr.. Taft Mr. Rainey directed
the charge that during his visit 10 Pana-
ma last May he did nothing except 10
push the candidacy OF ObaIdia for the
presidency" he declared a threat had
been made TO seize the republic unless
the Obaldia ticket was successful. and
that TO prevent this, Arias, ObaIdias Op-
ponent. Withdrew from the race.
Before proceeding with the question.
1t becomes necessary TO get better ac-
quainted with William Nelson Cromwell.
and viii try 10 discuss that gentleman
without hbeling the government OF the
United States, II II IS possible 10 do So
Counsel for Company.
Mr.. Cromwell was general counsel for
the new Panama Canal Company in its
relations with Colombia. After the in
dependence OF Panama, he was the gen
eral counsel Of the same company IN its
relations with Panama. From 1888 10 the
present time be has been general counsel !
for the new Panama Canal Company in
its relations with the United States. Dur
ing large portion OF the last ten years
snd al the present time, he was also
counsel for Mr.. Hartman and his trans
continental railroads
How Is Il possible for 3 conscientious
attorney 10 represent these conflicting in
teTests is not apparent TO an average
lawyer Ike myself He IS also general |
counsel for the Panama republic, and
has held that position from the beginning /
OF the career Of the Panama republic |
He has been counsel for the Panama /
railroad from 1888 to the present time.
He vas counsel for the railroad com /
pany when the new French Canal Com
pany owned over 500 Of the 1900 shares /
OF that company He is counsel now for /
the Panama Railroad Company, when the /
United States Government owns every
one Of the shares. He IS also one Of the
directors OF the Panama Railroad Com
pany and Steamship Line.
These positions make him, as q mat
ter OF fact. an Official OF the United 4
States government He acts as the fiscal i
agent Of the Panama republic IN Iso9
and 1900. he held power Of attorney for
the new Panama Canal Company 70 sell /
all the holdings Of that company TO any
might be able TO get
The S4O,OOO,OOO Deal.
Immediately after obtaining this au- /
thority he started 70 organize an Ameri- /
can syndicate. 70 whom he proposed 10 /
sell al the canal properties for $4,000 /
But about that time he succeeded in in
teresting prominent American politicians /
in his canal and in diverting attention 4
from the Nicaragua project; ane after /
having easily succeeded in getting S3000.- !
90 out OF the S5,00,0OO subscribed. he /
abandoned that project and commenced
an attempt TO sell It 10 the United States
government for S109,00o,o00 In an hour
he dropped in price from Sl09.0o0OI0 to 4
S40.000.000. and the deal went through or
that basis.
7 propose hereafter 10 discuss the
question as 70 how much OF this SslO0lOg0
ever reached the creditors and the share
holders Of the French companies.
1t IS not hard 70 explain why al the
agencies Of the government are now be-
ing used in an attempt to indict certain
newspapers for saying unkind things
about Mr.. Cromwell and some Others. I
VIII show before I get through this aft
ernOOn that Mr. Cromwell and some
others who seem 10 be peculiarly sensi-
tive 10 newspaper criticism are especially
deserving OF IL
Adviser of Taft.
And through all the career 7 have de-
scTibed Mr.. Cromwell has remained the
trusted adviser Of Secretary Taft and Of
The administration II al matters pertain
ing 10 the Isthmian Canal
"A short while after the indepeDdence
OF Panama. said Mr. Rainey. the off,
cials OF the little republic commenced 10
absorb ideas OF patriotism peculiarly dis
tasteful TO 8Ir. Cromwell
Mr.. Cromwell decided 10 displace DR..
Amador and the other leaders Of the con-
stitutiOn party Of Panama. and put in as
president a more plant parsonage. less
devoted 10 high ideas, and in such an {
emergency as that his mind was directed :
10 his old friend and ally. Obaldia. He (
was man after Cromwens Own heart
ObaIdia's Opponent withdrew.
SO 1t was determined that Obaldfs. was
10 become President Of Panama. Subse-
quently Obaldia's opponent withdrew on =
account Of the interference Of Secretary {
Taft in the elections, and ObaIdia was T
elected. The plan Of Cromwell and his
associates was 10 appropriate 70 their +,
own use the revenue Of the republic. and {
to steal the forests and the lands. Y
1t viii be interesting to know the gen
lemen who are attempting TO impover-
ISL the republic Of Panama in this way" 0
and he mentioned William Nelson Crom- I
well. Roger l. Farnham. X. S Harvey. :
and Charles P Taft :
Submits Evidence.
DO not charge" he said. that the
gentleman who wiz be inaugurated
resident Of the United States on March