The Washington times., 1912-12-24
DANIEL J., CALLAHAN,
csnfert q Inaugural BAN.
4. .gS &. s,s 4. s--rhoto by Buck.

onds, an officer Of the trust company
stated that they could not 60 on with
i would be coniidsred az uniriendiy act
BY certain interests in New York city.
"As q consequence. tho failure to pur-
chase the bonds In the fail Of 1910. and
made It impossiSie 10 sell the bonds in
tho New York market. In fact. I soon
Ieafned that there was not q trust COM
parry or banking house In this coun-
offer the bonds OF the Western Steel
CorpcratiGn in the open market for
sale. This being true. I departed for
Europe. believing that could nnd
bonds Of the corporation. providing they
were satisfied that the security behind
the bonds was ample.
French Bankers Interested.
Soon after arrival there I Interested
some French bankers IN the purchase Of
our bonds, and entered into q prelim-
mary contract with them, not only for
the purchase Of the $2o00. 900 Of bonds
then Issued. but also arranging for an
Increase up to S.ooO.O0o.
"Returnihg to New Y6fk, I was in
formed by the president Of trust COM
pany In. New York that I could then
obtain the money there; that II the
French people did not come through
promptly and should ask for any ex.
tension Of time whatever for further
examination Of the properties. that II
l would not grant any extension Of
time. could obtain all the financial
help required In that city. To show good
faith, loan was made In New York
for $4,000 for. four months. with 5000
IN Sndersssndins that further f Financing e
would bc arranged. providing I refused
70 grant the French bankers an extern
sion of time.
people were In good faith, I declined
to give to the French representative an
extension OF sixty days time required
by him for his experts to make ex.
IRON istp properties tSs owned BY the the company. COM
"This. evidently. was a fatal mistake.
was promptly notified that thirty
given TOR the payment Of the 600. 900
loan. and that, no arrangement would be
entered into for any further financing
Of the corporation. Realising that trou;
Immediately S endeavorsd to secure =
loan elsewhere to retire the loan with
the trust company Of New York.
Failing to obssin i,d the sr% money 1s iR sime
IuS IO0u w9b Cottcu eiC ~ssoSS'ov..
Of bonds aivsn as security were sold
ana bid in for the trust company. and
very soon after said trust company
applied for receivers. for the Western
Steel Corporation and forced the COM
pany into bankruptcy"
Charges By stilwell.
Not less direct and pointed are the
charges which Arthur E. Stilwell has
laid at the door of the money power. in
his charges that It has for years fought
his efforts to build the Kansas City.
Mexico. and Orient railroad.
Mr.. stilwell sent this statement to the
Rules Committee while the inquiry reso.
luton was under consideration:
I'VE built 40 miles Of track In Texas
last year, Is per cent more than any
other RAILROAD and Is per cent Of all
track built that year In the United
States. Recently this. opposition has
seriously delayed the closing Of sale
Of ss.oOO.0oo bonds legalized by the
French government and all underwrit-
ten in Paris. Detectives have followed
our agents. prominent bankers have not
hesitated to make false statements In
speaking of our road; other bankers
taken over the road and enthusiastic
over it, possibilities have been told that
their business would be ruined II they
attempted to help us in any way
Effort after effort was made by letter
and personal interview to prevail on the
Mexican government to cancel our con.
| cessions. and effort was made also to
prevent US from securing the harbor at
Topolobambo. When In London making
our steamship arrangements, prominent
American interests cabled over en-
deavoring to prevent the closing Of this
important contract.
prominent brokers have called our
investors by phone. advising them to
ven whom our thsy hss never done basnsss
and in one case the statement was made
that we had but six miles Of road In
Texas and four miles In Mexico. where
In Mexico and 200 in the United States.
IL But now, with nearly 900 miles
In operation, We think we are justified
In calling attention to the obstacles we
endeavor to prevent the completion OF
this great international transcontinental
road. - It Is q singular coinci-
dence that Samuel Untermyer should
mittee of Congress- during the very time
I was preparing this prospectus and an
advertisement for publication.a man
who is In nc wise mn interested rest, Tith me M IN
truthfuliy and eloauently affirmed are
perhaps. unbelievable except to those
who however innocently, have incurred
the displeasure Of the mysterious, sin
lister, but palpable influence called by
! him the Money Power. vi
"As for those injured by this power,
what possible redress Is there except
money Is thus exploited by those with
whom they have temporarily intrusted
It? No single victim could combat this
oligarchy even u II were amenable to
within the law. It's freemasonry 10 that
Of freebooters grown arrogant through
Immunity, It's whisperr Is that ot the
Mana without its .risk. Its white
'"Rlack Hand" without the excuse Of