The Washington times., 1914-01-22
OLD ''DURKEE FRAUD"
IS UNEARTHED AGAIN
Treasury Department Warns
That Money to Buy Shares
in Claim Is Thrown Away.

\ man VII" IS attempting to. sell 70:
a dollar an interest in a S:i 900 claim
against the Government is fake, ac-
co"ding to SeccetGIy OF the Treasury y
McAdoo. He says ''they amt no such
claim.
The Treasury Department today is
sued a warning against this so-calle'l
O;aim, which is supposed to represent
q fortune the Government is withhold
ing from the heirs of the late Senator
Charles Durkee OF Wisconsin,. After
Gefrauding small investors out of S50,Ug1
Years ago, spectators are again try
iTG to revive the Durkcc myth.
The promoters of the scheme assert
that Dur&cc, United States Senator
from Wisconsin in 1855, and later terri
;orial governor of Utah. purchased an
entire bond issIe of the Pacific rail-
roads and deposited these bonds with
the Treasury Department, where they
are still supposed 10 be. They are not
The Treasury Department points out
the element OF tragedy an the situation
by the fact that numbers of small in
yeStors have been dcfrduded hy sharp
ers. The records of tho Treasury De
bring an element Of comedy into the
CSse. This is brought Uut ~ evidence
Eiven by L. c 6laisdcll. an Illinois
man, who talked SO piau$ib!y of the
claim" that he induced u Senate COM
nlittee to give him hearing IN 1895.
- Bonds Were Deposited.
\ thread OF plausibility was given to
the Durkee claim by the fact that GER
tain bonds were deposited with the
Treasury Department at the time the
Pacific railroads were building. Con-
cress had provided that a sinking fund
be established in the Treasury for the
of indebtedness of the COM
panies to the Government on account of
aid extended them in the construction
of the roads.
1t was provided that this fund would
be invested in United States bonds or IN
bonds of the roads. The bonds for that
sum were purchased in the open market,
and when the roads paid their indebt-
edness to the GoYernment-Teprcse
by subsidy boEds-the fund was closed
ard the bonds, amounting to S6.l3S,001
were disposed Of by the Government
There were 80 other deposits OF bonds
of any kind With the Government on ac-
count of any Pacific road.
Blaisdell. however. has been pressing
q. claim for years that Durkec had pu--
chased all the entire Pacific hcnd issue
of So, ,00o0o and that he deposited these
bonus with the Treasury Department to
secure the completion of. the Pacific
roads, and that on the completion OF the
reads, the Government instead of re-
turning the bonds to Durkee. had sold
them. and now holds the proceeds.
New Angle On. Claim.
The warning just issued by the Treas
ury Department was due TO information
reac hing the department that in reopen
ing attempts to sell shares OF interest in
this alleged claim sharpers now arc
representing that the justice OF the
claim was admitted by Franklin Mac
Veagl:- while Secretary Of the Treasury,
and that he was about to direct pay
ment when he left tie department. -
'Fhc-- fact THAT the promoters have
asserted that the Durkee "clalm'' nov
has grown TO 500 900. and that they
nave cut their price SO low as to sell.
lAdoo to dignity the affair with an Off
cial statement.
The last time the mythical Durkec
claim attracted so much attention WAS
in 1896, when BlaisdelI appeared before
the Senate Committee on Pacific Rail
roads and gave a detailed account OF a
conference he said he had had with
Judge George J. Foleer while Secretary
OF tie Treasury.
Had Sent For Him.
He said Secretary Folger had sent for
him. and when he came to Washington,
the Secretary had sent for the -Attorrey
General. the Secretary OF State and
ether department heads to meet him.
The S64, 100000 in. bonds were spread out
on table before Judge Folger, Blaisdell
told the committee, and the heirs own
crship of them was admitted.
Blaisdells recital was hardly plaus-
ible enough to influence the committee,