South Bend news-times. (South Bend, Ind.) 1913-1938, 1914-02-03
DRAG TAFT INTO
BUILDING SCANDAL
Kern Testified President Told
Him to Settle Case Against
Bucket Shop Men Just as He
Wished.

CHICAGO. Feb. 2.-The name OF
william Howard Taft former presi-
dent OF the United States. was brought
into the United States building scan
dal Monday.
Jacob J. Kern. former states attor-
ney. testified before the federal grand
jury that he had gone 10 the white
house as the attorney for sid" Nc
HE and his associates in the opera
ton OF a chain OF bucket shops and
that the then President Taft. had or
dered Atty. Gen. Wickersham 10 set
tie the criminal cases against Nellie
in accordance with any reasonable"
wish OF Kern.
The statement is a refUtation OF the
sworn testimony Of witnesses that
$4,000 was paid by Mc1ie 10 federal
officials who agreed to lose enough
documentary evidence SO that the gov
eminent would be unable TO send Nc
Hie 70 Jail. Kern defended Charles
r. DeWOody. formerly local chief OF
the bureau OF investigation OF the de-
partment Of justice.
at the time the Nellie case was
pending" Kern is reported to have
said 10 the jury. 'I called on Pres
TAFT. going over the heads Of Chicago
officials because OF a long standing
friendship with the president. he
called Atty. Gen. Wickersham by tele-
phone and told him anything 7 want
ed within reason was all right and
that anything ] said Mr.. Wickersham
could depend upon.
Then j saw the attorney general
and laid the whole case before him.
We then agreed upon the fire Every
one connected with the case at that
time knows that j fought Charles De
Woody, who was handling it, / con-
he
McHie's Offices
Kern's testimony recalled an Incl
dent which was related, but received
IN as much OF doubt as Of amaZement
moro than two years ago, after the
government raid on the offices of +.
TT. Scheftels x Co, said to have been
operated as bucket shops.
George Scarborough. who preced-
ed DeWoOdy as chief OF the bureau of
investigation. made the raids on the
New York offices OF the Scheftels CON
Germ. Shortly after the raid he was
dismissed.
Scarborough publicly charged that
his dismissal was due TO his activities
in the Nellie case rather than 10 any
offense with which he was charged by
the department of justice.
Wanted Taft's Relative.
lie announced that he had made
discoveries in the investigation of the
MGItAe case WHICH leu MIN W StEh
the arrest Of a relative Of the then
president OF the United States. The
man - named is very wealthy. has
varied interests, and at that time had
powerful political alliances.
Scarborough said that he was or
dered 10 forget the relative of the
president and leave the service, and
was threatened with criminal action
should he talk about what he pro-
fessed 10 know.
IL is more clearly apparent now
than at the time, that powerful pOliti-
cal and financial pressure was
brought to bear on the authorities in
Washington TO save Nellie and his
associates. OF his associates little
was known except that many were
men OF wealth and power, who had
been used for 6 years to protect Nc
HE and keep his concern, the Capital
Investment Co. immune from real
government interference.
In the light Of a recent explanation
made by the department OF justice as
20 why the Nellie case had been com
promised the fact that the real part
ners in the Capital Investment Co.
were never exposed takes on new in
terest
Last week the department said that