Evening Star Newspaper, March 12, 1924, Page 4

4 LENRDOT RESGNS AS OIL PROBE HEAD State of Health Given as Reason for Decision—Ladd Is Successor. Tetirement of Senator Lenroot of TWisconsin as chalrman of the public lands committee, announced yester- day, will not interfere with the con- tinuance of the oil investigation, it was declared today by other mem- bers of the committee. Senator Lenroot will be succeeded as chalrman by Senator Ladd of North Dakota, who is next in line for the position under the seniority rule of the Senate relating to standing com- mittees, Senator Smoot ranks him on the committee, but is now chairman also of the publlic lands committee. nator Smoot went from the chair- manship of the public lands commit- tee to the chairmanship of the finance committee several months ago. Retirement Forecast. Senator Lenroot's retirement from the committee was not wholly unex- pected, as he gave warning of it in the Senate two weeks ago during a debate in which he came under at- from the democratic side for ing Fall here with Senator Smoot,” Utah, another republican of oil committee, before the former Interior Secretary: misled the com- mittee with his statement that he obtained $100,000 from Edward B. McLean, At that time Senator Lenroot told the Senate he would be glud to be relieved of the duties of chairman, and declared that if the investigation continued in- definitely he would have to ask to be relieved. His health at that time was Door, and a short time afterward he went to Southern Pines for a rest. In hig letter from that place to the Senate, made public today, he said: “Since coming to Southern Pines I have not recuperated as I had hoped, and it will not be possible for me to continue my work on the committee on public lands and surveys. Gave Four Months' Service. “I realized some time ago that I was nearinz the point of cxhaustion, stated upon the floor of the Senate that it the oil investigation continued in- definitely T would fecl compeiled to re- sign from the committe “T have given nearly four months of gorvice in this investigation, trying as best 1 could to keep up with' such othe: work as cou'd not be neglected. with the vesuit that I cannot in n ©f health continue “I hope to be able to return to Wash- ington next week, but shal not att. mpt anything more than routine work of my office until my health is restored New Witness Called. Another name was added vesterd to the list of witnesses, with the_is- suing of a subpoent for Price Me- Kinney of Cleveland, a former law partner of Fall. E. L. Doheny testi fied that Fall had expected to et $100.000 from Me- Kinney to enlarge his ranch hold ings. but that the Cleveland lawyer could not convenlently make the loan. enntor W committee also probably would call Maj. Gen. Lejeune, commandant of the Marine Corps, for questioning about the sending of a detachment of Marines to Teapot Dome to clear tho fleld there of independents who were making claims to oil well lo cations. Miss Hamon Not Olive Belle Hamon of Chicago, daughter of the late Jake Hamon. who arrived here yesterday, did not communicate with Senator Walsh_or Heard. other members of the committee. She | announced as the purpose of her trip the refutation of the story of Leonard ‘Wood, jr., that her father had o fered his support to Maj. Gen. Leo; ard Wood at the republican conve: tion in 1920 in return for his ap- pointment as Secretary of the In- terior. Senator Walsh said he did not think Miss Hamon would be called. Others Who have been subponaed in comnec- tion with Wood's story have been notified to awnit further call before coming to Washington, as the com- mittee’ will not take up this angle of the inquiry before next week. RESTORES SHIP RATES. 1. C. C. Lifts Suspension of Prefer- ential Section. The Interstate Commerce Commis- sion announced today that it had lifted the suspension of section 28 of the merchant marine act, which nakes lower joint freight rates for commoditics moving in American ships. The Shipping Board certified to_the commission recently that ample American-owned shipping facilities axist for transportation of all com- modities, except grain, to and from (ireat_Britain, northern Ireland, the Trish Free State, ports of continental turope north of and including, Bor- deaux, the east coast of Asia, islands of the Pacific ocean, Australia, the ast Indian islands and the ports of Central and South America. INJURY PROBABLY FATAL. Little Hope for Young Child Suf- fering Skull Fracture. Physicians at Bmergency Hoapital today held out little hope for the re- very of threc-year-old Bernard F. iarvey of 3518 1ith street, who has heen unconscious since March 3, suf- fering from fracture of the skull, sustained when he ran into the path- way of an automobile in an alley at the rear of his home and was knock- ed down. Frank McKenna of 3549 13th street northwest was the opera- tor of the machine. Though unconsclous, physicians said, the youngster has heén fighting zamely for life. His failure to re- cover consciousness, however, gives but little hope for his recovery. o Commissioned as I;a-jor. Samuel C. Henning of 1610 T street, thig city, has been commissioned by the War Department as a major In the Medical Corps, Organized Reserves of the Arm: and | told him he had | sh_said yesterday the | | EDW. Asx he RD B. McLEAN, appeared today before the Senate committee Investigating the Teapot Dome leases, Edward B. McLean, publisher of the Washington Post, made the fol- lowing statement before the Senate oil investigating committee today: ‘ “Having in mind the subject of this investigation and having also in mind the widespread use in tha public press of my name as one who might have had some connection with the naval oil leases, or with the com- panies, individuals, government de- partments or public officials who did have connection with the leases of the naval ofl reserves, I want to make now the following detailed and emphat atement of facts: *I have absol =1y no knowled garding any leases upon naval reserves made at any time to any erson or any company except such iknowledge ‘as I, in common with ali [the rest of the American public. ! |received from newspaper reports | Knew Nothing of Leases. ¥As to the so-called Sinclair leases and companies: | “I never have known anvthing| about any of any oil nd to ithe Sinclair company and know noth- | ing today about this, except what I have read in the newspapers. 1 do ot know Mr. Harry F. Sinclair and thave no recollection of ever having met him, even in a casual o {have never had any interest of an |kind directly or indirectly for m | self or for any other persom, in any |of the so-called companies. { “I did not even know that there was such a thing as the Mammoth Oil Company until I saw it men- tioned in the press reports in con- | nection with this Investigation. I {did know, as any one who resds the newspapers would have known. that there was a company known as| the Sinclair Consolidated Oil Com-| pany, but 1 have never had any ! connection with it or any interest in it and have never owned or had any interest in a single share of the| { stocks of that company or any com- pany in any way connected with it. , “In a word, I had no knowledge of i ! our connection with Mr. Sinclair’ oil leases or his companies or his business or his transactions. He Never Saw Doheny. “I do not know Mr. Edward L Doheny, and 80 far as I am aware I hayve never geen him in my life. 1 did not know that he had .any con- noction with any leases upon naval ofl réperves until 1 read of them in the mewspapers. “I do not know the names of Mr. | Doheny’s companies, but I am in- formed that he is president of the Mexivan Petroleum Company, of the Pan-American Petroleum Company, and that those companies, like most large companies, have branches. “I have never owned directly or in- directly for myself or in connection ! with any other person whatever a| single share of stock in the Mexlcan Petroleum .Company, the Pan-Ameri-} can Petroleum Company or any of | their dependent companies, or, so far 18 I know, any company that Mr. Do- {heny had'any interest in or connec- tion with. “I know nothing about the contract yor leases between the government and the Doheny companies. “Again. inbrief, I have had no con- | nection with, interest in, or transac- tions with Mr. Edward L. Doheny or |an)' company or business of his at any | time in my life. { “Former Secretary of the Interior Albert B. Fall has for several years been a personal friend of mine. My irelations with him have, however, |nwn personal and never official. I have never at any time had any of- | ficial transactions with the Interior Department of the United States gov- { ernment. . Knew Denby Slightly. | “As regards the Navy Department and Secretary Denby, 1.can say the ! same as 1 have already said about the | Interior Department. My personal ac- | quaintance with Secretary Denby has been a very slight one. T have had no business relations iwhatever With the Navy Department, and have :mever been interested in or connected COLORADO NAMES WORK. Interior Secretary Delegate Large to @. 0. P. Convention. Dr. Hubert Work, Secretary of the In- |terior, has been elected a delegate at i large to the republican national convens | tion, it was learned at the Interior De- partment today. Dr. Work was elected at a state party convention held at Colo- rado Eprings, Colo., yesterday, and the {entire delegation was instructed to vote irm;'l»’rv;:l(giem Coolidge. The state dele- &ation had previously gone on reco i the President. o Sl n at ) delegates constitute the Colo. THE EVENING STAR COUPON “THE AMERICAN GOVERNMENT” By Frederi 4 of ;’ ;f‘i Mail Orders—Add for 250 150 miles, ¢; 300 mi srea ntan, et peenan ., ter rate for 3 pounds. This is the dook that is generally TEXT OF McLEAN’S STATEMENT BEFORE SENATE COMMITTEE with any contracts of any kind made y or with that department. “The newspapers which 1 am con- nected with may have carried some government advertising, but of course it will be recognized that this is a matter not handled by me personally. Because there have been published indefinite and unfounded rumors from which the inference might be drawn that T had participated in the pur- chase of oil stocks, although any stock transactions I have ever had are my own personal affairs and have no relation to the subject which your committee is authorized to investi- gate and to the end that the utter jack of foundation for many of the treports which have been sent | this eity may shown, 1 de to tell you just what stock transactions T have had. Bought Stock Twice. twice in New York Sxchange and here are the facts about two transactions: “In November, 1822 1 Tbought 2,000 shares of Pure ( stock through Hibbs & Co., Washington, D. C. I sold this stock February, 1923, through Hut- ton & Co.. Palm Beach, Fla., at a profit of about $5,500. This profit was entirely mine. My understanding is that the Pure Oil company iz a company that has never had any connection with any government leases, and Is In no wise concerned in this investigation. n March, 1823, I _bought 2,000 shares of Bethlehem Steel through Hutton & Co.. Palm Beach, Fla. 1 sold it through Hibbs & Co., in De- cember, 1923, at a loss of approxi- mately $30,000. This loss was en- tirely mine. Never Traded in Curbs. “This is the entire story of any New Yor tock Exchange stocks ever purchased or sold by me. I have never trad-d in any of the so-cailed curb stocks, nor have I bought or sold any stocks except those above mentioned, with the exception of such local bank and trust company stocks as 1 am interested in. “l have never been interested in the purch: of any Sinclair or Doheny oll stocks, directly or indi- rectly, by which I mean that I have never made any such purchase, nor have 1 bud any interest in any such purchases made by any one at any time. “The public press has repeatedly carried reports that an important wit- ness was negotiating for immunity from_prosecution in consideration of the disclosure by him of sensational facts. The press reports have too clearly indicated that I was that im- portunt witness for me not to be sensible to that imputation. rhe facts are: ave no knowledge of any such and therefore could not disclose any to this committee or to any senator or any other commit- tee or person whatever. : Second, 1 have no need of any im- munity of any kind and 1 have neither asked for it nor authorized any person to do so. “The only consideration T have sought was that which would excuse me from appearing on the witness stand, “Only bought stock those Refers to Telegrams. You have examined with consid- erable fuilness telegraphic correspon- dence between my emploves, my counsel, several of my friends and myself. I believe that you will agree that those telegrams may be divided into_three classes: “First, those that brought me in- formation. cond, those that showed my desires to avoid appearing as a wit- ness ““Third, those that relate personal and business affairs, “Certainly none of them indicate | that I had any conmeclion wiin ufl] leases which you are investigating, and none of them could o indicate. Ready for Questions. am ready, gentlemen, to answer any relevant ' questions relating to the subject of this investigation that you may have to ask upon the as- surance and confidence, of course, that I will not be called upon to answer any questions which the laws protect as privileged between my counsel and myselL.” to my rado delegation at the coming conve tion. Beven of them are classed as dele- gates at large, while the eight others are | elected within the state, two from each | of four districts. Business and Your Eyes Ffficiency is the Keynote of ! Modern Business. Rimless Spectacles or Eyeglasses look well, are light in weight and have every aspect of Clean-Cut Efticlency. The Business Man, especially. needs to care fof his eves and to make sure that only the most proficlent and expert Optome. trists examine them, determin- ing the most Accurate and Sult- abfe for each Individual case. Eficiency, combined with | Style and Suitability is our motto regarding Optical Service for the Business THE WVENING STAR, WASHINGTON, D. C, WEDNESDAY, MARCH 15, 1s4, McLean Says He Misled Probe €oncerning Loan to Save Fall (Continued from First Page.)* by the Washington Post, was ques- tioned briefly about messages relat- ing to McLean's ill health in Florida, which had been advanced as a rea- son for his not coming to Washing- ton. He said he had sought to sug- gest to the publisher that his sinus trouble might make it inadvisable for him to leave Palm Beach. ‘You would suggest this idea to Mr. McLean,” remarked Senator Walsh, “and he would suggest it to his doctor and-then the doctor would explain it to the committee; was that it?" “In effect, yes,” replied Fitzgerald. McLean Takes Stand. McLean himself then was called to the stand and read his prepared statement. When he had concluded his attention was directed to the fact that he had not mentioned the $100,000 loan. Senaor Walsh then began questioning the witness at length on that subject. As he finished reading his state- ment McLean tossed the typewritten sheets to the official stenographer and stralghtened up in his chair. “You haven't adverted at all to th testimony you gave at Palm Beach, commented Senator Walsh. “Do_you ¢are,to make any statement about 0, 8ir,” said the witness. Unable to Find Stabs. “You said there you were unable to find the stub checks on that $100,000 loan,” Senator Walsh proceeded. “Have you made any search for those? The publisher sald he had looked for them in vain. He replied in the affirmative when Senator Walsh asked if the checks ever really had existed. The senator then turned to the trip McLean made in December to Atlan- tic City to talk with Fall. McLean explained that he had received a tele- gram from Fall and later a telephone message from Mrs. Fall, “She told me that Senator Fall wanted to seo me, that he was sick, and very nervous,” 1 told her it would be difticult, but that I “Please tell us about tion with Fall at Atla McLean explained kis private car. “1 was met by Mrs. Fall. She told me Albert was asleep,” he went on. “After a while he came out, in a red wrapper. He was in an awfully nerv- ous condition. 1 could see that, Referred to Checks. “He asked me, ‘Ned, do you remem= ber our check transaction of a few years ago? 1 =aid 1 did, and he said, *Will you say you loaned me that in cash?” I'm in a terrible situation. It has nothing to do with Harry Sinclair or Teapot Dome.’ He said, “They are barking up the wrong tree and i said I woud. I believed my friend.” oing back to checks, you told us they were drawn on a couple of banks there,” Senator Walsh resumed “As to that, Senator, there was no trouble about my checks for $100,000 d that he had collateral to the amount “of $118.000 or xo in de- posit vaults. ! Fall, in taking the checks, he said, “promised to call me up before he presented them.” x Know Troul “What did Senator Fall want2” Senator Walsh queried. *“Wasn't this n unusual thing? What was in his mind 2" “I don't know what was in his mind, I have trouble enough telling what was in my own mind.” The whole transaction, he sald, was something of a mystery to him. The senator asked about a refer- ence in the McLean telegrams to some papers from McLean's safe deposit vault. The witness passed over a iong document. his described the ranch proposi- tion in Mexico, in which Senator Fall was endeavoring Lo interest you?" Senator Walsh commented. “It's a letter from him in the nature of a prospectus.” McLean crouched over the witness le and lit a cigarette. ‘The better idea was never to get mixed up” he remarked. “I'd have been further off than that ranch Is if 'd_suspected.” The crowd chuckled and had another laugh when the witness said in reply to a question why he hired a safe- deposit box. 1 have hired six vaults in this mat- ter. Met Fall With Hardinx. Senator Walsh asked when McLean first made Fall's acquaintance. He sald it was on a trip with President-elect Harding and others to Brownsville, Tex., in 1920. “I got to like him very well,” Mc- Lean remarked. “When did you become special agent of the Department of Justice?” asked Senator Walsh. “About a month after President Harding took office.” “Whut service did you render?" 'None,” he answered. “The main purpose and advantage was to let me get through police lines when travel. ing with the President.” “You didn’t need the code for that?” Explains Getting Code. “I got the code and a little badge when I took office.” “We need a little help,” sald Sena- sscorHorlick's The ORI7INAL Malted Milk Digestible=No Cooking. 95~ Aveld Emitations > Substitates EDMONSTON'S Home of the Foot-Form Footwear DRESSY FOOT FORM DRESSY PUMP No. 994 We _are demonstrating conclusively that we can em-~ body the fundamental points of Foot Form fit and com- fort in footwear that 1 snappy and appealing to discriminating tastes. No. 994 is shown in all prevailing shades. tor Walsh, and he proceeded to read the telegram which said a private wire would give McLean “easy and quick access to the White House.” “Why did you want easy and quick access to the White House?"' asked the senat “1 gon't,” McLean retorted. He went on to explain that Wil- liam F. Wiley of the Cincinnatl En- quirer was ill, and that he wanted to take him to Palm Beach. “We took up the wire matter in November.” the publisher continued, “and it had nothing to do with the White House.” Takes Up Memages. Senator Walsh took ,up another telegram—from McLean to Fall— which mentioned “important busines,s 2nd suggested the ex-secretary should ! see McLean's secretary. “It was about sending a carload of mares to Fall's New Mexico ranch,” the witness sald. He insisted in reply to repeated questions that the message did not refer to oil transactions or the com- senator,” HSenator Walsh said he had “a very definite idea” who it was, and would be glad to have his mind disabused. Vigoreusly Questicaed. The “principal” mesage in full said: “Have seen principal. He appre- ciates greatly. There will be no rocking of the boat and no resigna- tions. He expects reactions from un- warranted political attacks.” Senator Walsh went after the wit- ness’ idea as to each word of it “There never was any misunder- standini between you (and Bennett) that the word principal was to mean Curtis?” the Senator asked.. “I_wouldn't say there was.' Senator Walsh switched the exami- nation, and got the witness to de- scribe the location of the McLean town house. Attorney General Daugherty, he sald, early in the Harding adminis- trition had apartments adjoining. “This was apparently a sort of rendezvous,” Senator Walsh sug- geonted. Fall had visited there often, the but he said he never witness said, heard the oil leases discussed at these conferences Denies Tunnel Stery. “There i# nothing to that tunnel story,” he said when asked if there was an underground connection be- tween McLean's town house and the McLean returned when Walsh asked for the meaning of another message. ve read some of these telegtams until I'm dizzy” trying to figure out what some of them mean. He suggested it might refer to the horse shipment. N “Senator Fall was too perturbed about oil for you to bother him about horses, wasn't he?”’ “Not too perturbed to talk about horses. T think if he was in his grave he'd jump right out if you mentioned race horses.” #cnator Walsh then read a mes- sage from McLean to John F. Major, Ying its sender “had a tip” he was to Le called in the oil inquiry. Asked Author of Tip. “Who gave you that tip?” Senator Walsh demanded. “Senator, I presume I got thou- McLean told him; “tips about everything. Sometimes I began to belicve 1 owned Teapot Dome.” Ask- A message was read Lean directed Major “to find out in careful manner” whether a bank a record of indorsements In which Mec- McLean d, “and wondered whether to buy it in my own name. I alwayvs thought the would be the b receipt. ybe it's only my ignoranece. S Ish remembered that the publisher was a man of many busi- ness transactions. his man is,” Mr, McLean returned, pointing to Wilton J. Lambert, his attorney. “He does all the business for me. Denies Kmowledge of Code. “I never coded a telegram in my lifey” said the witness “Thore's only one word there T can identify— the word ‘Gob'—it means period.” One of his employes, W. O. Duck- stein, uttended to coding and de- coding, he said, having obtained per- misgion from W. J. Burns, chief of the bureau of investigation, to use the Department of Justice code, “Harry.” in the messages, he said, meant Attorney General Daughert he ndded, and ‘Eyéd’ meant E Rorhester, the Attorney Generals confidential publicity assistant.” “Did_you recommend Rochester's appointment?” asked Senator DillL “I think I did—I would recommended him to anybody. “Was there any duty of Rocheste: to_keep you informed? “None ‘whatever. Senator Dill asked about the em- ployment of George Rothwell Browh of the Washington Post in a similar capacity by the Attorney General. think I recommended him,” Mec- Lean returned. Asked About Prineipal. When he was asked about the famous “principal” telegram, McLean said he did not know who the “principal” was unless it was Senator Curtis of Kans: “Mr. Bennett (Ira E. Bennett, who sent the message) has testified it was nator Cirtis,” said the witness, ‘Scnator Curtis has testified to the opposite, and President Coolidge has testified it was not him." ' “I didn’t understand the President had made any statement,” remarked Senator Walsh. “The thing that struck me when I that message.” continued McLean, “was that the ‘principxl’ referred to Harry Daugherty. T ‘know who you think it wa; senator, but T have a different idca. Best Way To Cook Breakfast Prunes First, soak them overnight or for several hours at least. Sccond, cook slewly until ten- der in the water in which they were soaked. Third, use_pl of water 80 the fruit will “*“loose.” Fourth, do net cook them too long as they will become too solt. Flavor with cinnamon, sliced lemon, o orange juice. Sugar to taste. house mnext door, where Daugherty lived. “Daugherty wouldn't do anything wrong for me” the witness sald, “and T haven't done anything to ask him to do anything for me in that connection.” Asked who told him that A. Mitchell Palmer was acting for Sinclair and Fall, he replied : “I think I heard that from Major.” Senator Adams took up the Atlantic conference. 1l said some of his enemies—his political wncmics—were deviling him about where he got some money,” Mc- Lean explained. “But that it had noth- ing to do with Sinclair or oil.” Senator Adams asked why he had glven checks for §100,000 to Fall “I don't know," was the reply. “If I'd known what 1 was getting into I wouldn't have been connected with it even as remotely as I am. 1 didn’t know later whether to throw a fit or jump in the ocean.” Trying to Keep a Friend. “I gather you were trying to help out a friend,” Senator Adams put in. “Senator, I was going down the line for a friend as far as I could. I've never done a dishonest thing in my life and I never had anything to do with this durned Teapot Dome thing.” “Well, you realize you've made a lot of trouble for yourself and this mittea?" ‘Yes, but, of course, T feel a whole lot sorrier for myself than the com- itte "I you Invite Mr. Slemp to Palm Beach?’ Senator Dill asked, “1 did. Ignorant of Slusk Fund. “Do you know anything about the slush fund that's been mentioned o more than you do. I never got my fingers into such a mess as that, and don't believe there was any." Senator Adams cited a message from Mr. McLean to ¥. T. Homer of o N e o ot ECONOMY YOU would be doing the wise thing to get our samples and es- timates before you build. We feel sure we can save you-money. “Better Lumber Here” Sherman-Ave. & W 8 Northwest /1 Baltimore telling him to “think over certaln prominent people” in connec- tion with money matters. Attorney Lembert promptly sald the meseage wi a matter of privilege between attorney and cliert, and the question was dropped. Senator Dill brought up the con- nection of W. G. McAdoo. “He's been dragged Into this very unfairly, and there have been a lot of rotien newspaper articles” said McLean. It was pointed out that one of the McLean telegrams mentioned Francis J. McAdoo, “or his father” as being attorney for McLean for “seven years. “I ‘was mistaken about BMr. Adoo’s length of employment,” said the witness. “It was five years. 1 employed him because he was a strong man, when he began law prac- ce. Me- Got No Momey for Loan. “Did you ever receive money from anybody for the purpose of mak- ing a loan to Senator Fall”’ asked Senator Bursum, republican, New Mexico. : “Never. Not a cent.” McLean repeated his Palm Beach testimony that he gave Kall checks for $100,000 some time in” November, 1921, and that Fall returned them soon afterward saying “He had got the money from some other source.” “What did Fall tell you at Atlantic City had impelled him to make such enormous drafts on your friendship?” “He £aid his political enemies were be-deviling him, but that they were barking up the wrong tree. It had nothing to do with Teapot Dome or Harry Sinclair.” Senator Walsh suggested that Falls' request was for McLean to “tell u lie about this money.” Never Appeared as “Lie.” “But it never appeared in that light,” Mclean said, “or I wouldn't have gotten into it.” At Palm Beach McLean said to Fall, he testified: “Albert, I've gone down the line for you as far as I can go. He said he added that, “now I am Tonight! AUTO SHOW Convention Hall Everyth.mg New m Passenger Cars Delivery Cars Motor Trucks Accessories Music “Best show Everybody. 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Ther» too, tne witness sid, Fall was “mud dled, broken down.” The witness was then excused, and the committee adjourned until 10 w.m tomorrow. Reowevelt to Be Called. At tomorrow’'s session the commit tee will receive the reports of audi tors who have gone over the books of brokerage concerns to find rec- ords of oil stock transactions and will question Theodore Roosevelt, assistant seoretary of the Navy, and Maj. Gen. Lejenne, the marine com mandant, regarding the use of ma- rines to clear claimants off Teapot Dome when the Sinclair lease went into effec If you want to use waxed paper and there is none at hand, melt somo parafin in a shallow pan and draw sheets of thin paper (preferably tis- sue paper) through it. Merchants Bank &Trust Yourself Some small luxury and use the money in open- ing a savings account. 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