Evening Star Newspaper, March 28, 1924, Page 1

L] WEATHER. Fair tonight: tomorrow cloudy, probably followed by rain late tomor- row afternoon or night. Temperature for twenty-four hours ended at 2 p.m. today: Highest, 68, at noon today;j lowest, 41, at 1 am. tos “From Press to Home Within the Hour” The Star's carrier system covers every city block and the regular edi- tion is delivered to Washington homes day Full report on page 7. Closing N. Y. S_lockl and Bonds, Page 28 s second-class mattef Wasbington, D. C. Entered post of No. 29,186. ch WASHINGTON, D. C, £ Foen 9 WITH SUNDAY MORNING EDITION g DAUGHERTY RESIGNS AT REQUEST "OF COOLIDGE; ATTORNEY GENERAL HITS BACK WITH SIZZLING REPLY| . President’s Act Based on Belief That Official Could Not Give Disinterested Service. CABINET OFFICER IN ANSWER SWEEPS REASON ASIDE AS FAKE Refusal to Send Files of Department to enate Committee Immediate Cause of Demand by Executive. At the request of President Ccolidge, Attorney General augherty today submitted his resignation, effective at once. I'he President’s decision was based on a conviction that Mr. Daugherty could not give disinterested attention to his oflici;.xl duties while under the s of the Senate inquiry into his duct. While disclaiming any intention to “prejudge” the issues the President wrote Mr. Daugherty stre sed in the investigation. that his continuar “ever-increasing embarrassment.” DAUGHERTY'S REPLY IS TERSE. [n a letter of three terse sentences, the *\ttorney General replied that he was resigning “solely out of deference to your request.” B The correspondence was made public at the White House without comment. but at the Department of Justice Mr. Daugh- erty issued a statement in the form of an open letter to the President which contained a sizzling attack on those who forced him out of office “Cowardice” and “surrender of principle,” the retiring At- General declared. never should be permitted to dictate based on “party expediency.” Attorney General sweptsaside the President’s stated sons for asking his resignation as “unwarranted by the facts.” The real purpose of the whole assault upon him, he said, was to dethrone law and order, and by a constantly extending attack on the administration generally to set up an inquisition of “scandai and terrorism.” TEXT OF PRESIDENT'S LETTER. The President’s letter to Attorney General Daugherty, in full, follows: farch 27, 1924. “My Dear Mr. Attorney General: “Since my conference with you 1 have examined the proposed reply vou suggest making to the demand that you furnish the committee investigating the Department of Justice with files from that deparment relating to litigation and to the bureau of inves- tigation. You represent to me and to the comymittee in your letter that it would not be compatible with the public interest to comply with the demand and wish to conclude your letter with - the statement that I approve that position. “Certainly T approve the well established principle that de- partments should not give out information or documents where such a course would be detrimental to the public interest, and this principle is always peculiarly applicable to your department, which has such an intimate relation to the administration of justice. But you will readily perceive that T am ynable to form an inde- pendent judgment in this instance without a long and intricate investigation of voluminous papers, which I camnot personally make, and so I should be compelled to follow the usual practice in such cdses and rely upon your service as Attorney General and hiead of the Department of Justice. COULD NOT GIVE DISINTERESTED ADVICE. “But you will see at once that the committee is investigating vour personal conduct, and hence you have befome an interested party, and the committee wants these papers because of a claim that they disclose your personal conduct of the department. Assuming that the request of the committee is appropriately limited to designated files. still the question will always be the same. In view of the fact that the inquiry relates to your personal conduct you are not in a position to give to me or the committee what would be disinterested advice as to the public interest. “You have a personal interest in the investigation which is { being made of the conduct of yourself and your office, which may be in conflict with your official interest as the Attorney General. T am not questioning your fairness or integrity. I am nerely reciting the fact that you are placed in two positions, one your personal interests, the other your office of Attorney General, which may be in conflict. HOLDS TWO POSITIONS INCOMPATIBLE. “How can 1 satisfy a request for action in matters of this nature on the ground that you, as Attorney General, advise against it, when you, as the individual against whom the inquiry i< directed, necessarily have a personal interest in it? I do not see how you can be acting for yourself in your own defense in 1his ‘matter and at the same time and on the same question acting as my adviser as Attorney General. “These two positions are incompatible, and cannot be recon- ciled. 1 am sure you will see that it is necessary for me to have the advice of a disinterested Attorney General, in order that I discharge the duties of my office in this and other matters. I feel certain that you will know how deeply I regret that this situation has arisen. It only illustrates the difficulties which are certain to recur with ever increasing embarrassment and your inability to perform satisfactorily the duties of Attorney General under present conditior e ¥ “You will readily understand that it is not now my intention 10 prejudice the issues which remain to be developed in this in- vestigation. 1 recognize that you are entitled to a full and fair hearing, but as there is no way by which f\]'ou can divest yourself of the interest you have personally in the investigation, I can see no way but for you to retire as Attorney General, and I am, therefore, compelled to request your resignation. . “Very truly yours, “CALVIN COOLIDGE.” acknowledgment of the receipt “March 28, 1924, ‘v Attorney General Daugherty of this request follows, in full: My Dear Mr. President : “I hereby acknowledge receipt of your letter of March 27, by (“ontinued on Page 3, Column 1.) in office must inevitably be a source of HARRY M. DAUGHERTY. UNTENABLE, SHYS * DAUGHERTY REPLY Twice Offered to Resign, He | States—Leaves D. C. for Atlantic City. that the argument of “party expe- diency™ had been used to secure his | retirement, but that “cowardice and | surrender of principle are never ex- | Pedient,” Attorney General Daugherty |amplificd his formal letter of resig- | nation today with a lengthy letter to | the President, replying to the Chiet Executive’s communication request- ing his resignation. The retiring Attorney Genéra! de- clared that the grounds upon which the President had forced his retirement seemed to him “untenable. Seen Crisly in Country. Declaring the attack on him was only‘a part of a definite program to discredit the administration as a whole, Mr. Daugherty declared the country was confronting & grave crisis, which must determine whether the country is to be governed by law and order or by “slander, terrorism and fear.” Any suggestion that he could not “function as Attorney General and defend myself against these charges at the same time,” the letter said. was “hardly warranted by the facts. Twice Wanted to Quit. Daugherty recalled that | Mr. he became President to retire, been requested to remain. Immediately after signing the last {letter to the President, Mr. Daugh- but had at_Atlantic City. The text of the letter follows: My Dear Mr. President: . Under separate cover I have just handed you my formal resignation as Attorney General of the United States, to take effect forthwith. Now that I am no_ longer a member of vour cabinet I feel constrained, as a private citizen, in all kindness, 1o call certain matters to your attention. Your request, Mr. President, for my { resignation is based on grounds which seem to me untenable. As you will perhaps remember, I did not intend to seek your adviee with re- gard to compliance with the demands of the Senate committee for the in- discriminate delivery of the confiden- tial files of the Department of Jus- tice, or parts thereof. As I explained to you, my duty was clear, for 1 had frequently been called upon to de- termine this question. My answer | was ready, as 1 informed you, and furnished you a copy thereof. Reveals Sole Purpose. My sole purpose in taking the mat- ter up with you was to let you know the position I was compelled to take in the interest of the public business and for the protection of the govern- ment, that you might be in position to advise other departments, if sim- ilar requests were made, what course they should pursue. Your suggestion that I cannot func- tion as Attorney General and defend myself against these charges at the same time, I believe, is hardly war- ranted by the facts. You know that I have employed counsel, at my own expense, to take the responsibility of representing me at the hearings be- fore the Senate committee in order that 1 could devote my time to the public business, which I have been doing continuously. Holds Methods Efficient. Those employed in_the department have given no time belonging to the government to this so-called investi- gation, except to furnish data re- quired by the various congressional committees. The business of the de- partment is at its peak in efficiency and accomplishment, and I am pre- pared to demonstrate. this fact before any tribunal if opportunity is af- forded. ‘Your suggestion that an attack upén a cabinet officer disqualifies him for further official service is a dangerous doctrine. Mr. President, all the pre- tended charges against me are false. But whether true or false, if a mem ber of the cabinet is to be incapaci- tated or disqualified by the prefer- ment of charges against him, no mat- ter how malicious and groundiess, and he is compelled to give up his re- sponsible position and sacrifice his honor for the time being because of such attack, no man in any official position is safe, and the most hon- orable, upright d efficient public servant could be swept from office and stable government destroyed by clamor.. Calls Himself Vietim. 1 have often advised you that my climination is part of the pro now being carried out. The origin of PRESIDENT'S STAND twice had offered since Mr. Coolidge | erty left Washington for a brief rest | VALET DESCRIBES PARTIES HELD IN " DAUGHERTY HOME Colored Servant Testifies That “Plenty” of Whisky Was on Hand. RECEIVED LARGE “TIPS” FROM SINCLAIR, HE SAYS Declares Armour Company Sup- i plied Hams and Provisions ‘Without Charge. The Daugherty investigating com- i mittee was thrown out of step mo- mentarily today by the resignation of Attorney neral Daughert: but when the excitement caused by the nouncement had subsided it plod- | ded along in its task of gathering | evidence against the Attorney Gen- eral Life in the Daugherty apartments, :wh'ru Jess Smith, the Attorney Gen- | eral's friend who committed suicide {lived, was gone into through the medium of Walter Miiler, former valet, who told of whisky being | brought and kept there, of the many | visitors, including Albert 1, | Harry ¥. Sinclair. Will Hays, Howard Manington, Wiil A. Orr and a host of others, and of some “social games” in which some of the visitors en- | gaged | Overheard Conferences. He had often heard, Miller said on qualifcations of prospective federafl employes. Many seekine government {appointments called at the Daugherty |bouse, he said. Richard Washburn {Child was a caller, he added, and he :sald he knew of Child's_appointment | 1o the ambassadorship at Rome “before | it came out in the papers.” Former ~Representative J. Van Vechten Olcott of New York told the committee of conversations he had With a “visitor” at his office, in which jhe was told that he would be expected to pay $10,000 when his name was sent to the Senate for a federal judge- ip. He ‘identified the visitor as ‘Wayne Wilson” and said he had not beeri fold he represented anybody in the Department of Justice Government Auditor Appears. Much of the ‘testimony today from Allen J. Pickering, former auditor for the government in the air- craft cases. who testified of conditions in the industry and of the govern- ment’s bequests to airplane companies. Wheeler Warns Committee. Senator Wheeler, democrat, Montana, committee prosecutor, announced Attorney General Daugherty's resigna- {tion should not affect the committea' work. The committee, he said, would | proceed with its inquiry “with the ob- |Ject of clearing out the rottenness we believe has been disclosed in Washing- ton.” Chairman Brookhart supported Senator Wheeler's position. Oleott First Witness. Mr. Olcott of New York city, the first witness called, told of conversa- tions he had with the “visitor” at his | office. “Two or three days later he came back.” said Olcott. “He told me that a litlle money was necessary. T told him I couldn’t possibly see any rea- son in that. “What amount did he mention? “That $10,000 would be required when my name went to the Senate and $25.000 when T was confirmed, “I sized it up as one of those cases where a fellow learns about a candi- date who 1s to be appointed, and h thought I would be gullible and easy. Previous experience, Mr. Olcott said, made him think the proposal was | fraud “Did he come under the Department of Justice?" Senator Jones, repub- lican, Washington, asked. Did Not Name Smith. ! | gating for the Department of Jus- tice, but the department didn't come | in in any way. 1 think he mentioned ‘the boy: Wilson had not named Jess Smith, Howard Mannington or Will A. Orr, Olcott said. “Was Wilson prominently identified with politics in New York?" Senator Jones asked, . “He joined the National Republi- can Club back in 1921. 1 think when 1 was president,” Oloott said. Can_you give me the exact time?" Senator” Ashurst, democrat, Arizona, asked. “Wasn't there a_special session of Congress when President Harding took office?” Olcott returned. “It was during that session, when there was a bill up to increase the number of judges in the southern district of New York.” “Have vou seen Wilson _since then?” Senator Ashurst continued. “Oh, yes" Get News of Daugherty. Olcott said he had “meptioned his experience as an Interesting item.” He also said he was not certain tt was the National Surety Company with which Wilson was supposed to be connected, but was sure “he had some connection with the surety busines: - Paul Howland, attorney for Attor- ney General Daugherty, asked that ‘Wilson be brought in for questionin First word of Attorney General Daugherty’s resignation reached the committee through the Associated Press. “We have nothing to do with the Attorney General's resignation,” Chairman Brookhart remarked, when he heard the news. Ex-Senator Chamberlain, one of Mr. Daugherty’s attorneys, sald that he had “known it was coming.’ Allen J. Pickering, the next witness, was formerly auditor for the govern- ment in aircraft frauds. Assigned to the Standard Aircraft investigation, he said he found “considerable oppo- sition from that company, and from Mitsui & Co., the Japanese bankers who owned it.” Says He Had No Help. Pickering sald Howard Mingle, president of the Standard Aircraft i con- | a | ferences between Smith and Daugherty ! 8rand jury on charges of conspiracy ! | Declaring that while he was aware | that | “I think he said he was investi-| LANGLEYPUTSUP 500 TRAL BAL Dry Conspirator Innocent, | Counsel Declares. John W. Langley. representative from the tenth district of Kentucky, who was indicted yesterday by the to interfere with the orderly opera- tions of the United States govern- ment through alleged illegal with- drawals of whisky from government warehouses, gave bail of $5,000 today for his appearance for trial Attorney Henry E. Davis, who has been retained to defend Mr. Langley, | stated the representative wished to be present at the assembling of Congress today and had an engagement to ap- pear before the House investigating | committee early this afterncon, and { his appearance with bail was delayed | somewhat | Arrangements will be made to have five codefendants appear in court or give bail bonds early next week. Two Indictments Returned. Langley is mentioned alone in one indictment. In the second he is in- |dicted again with Millard F. West, | former deputy commissioner of in- {ternal revenue of the United States: Russell M. Sackett, a_ prohibition ! agent in Pennsylvania; Ben L. Moses and Harry Sattier, co-partners, trad- |ing as the Union' Drug Company of Pittsburgh, Pa., and Sidney Reis, who is described as a person carrying on the business of procuring intoxicat- ing liquors in large quantities for clients. Although Representative deelined to comment personally on the indictments, H. E. Davis, his at- torney, issued this statement: “I have for some time been aware of the movements to indict Mr. Langley, and may safely say that I know' the i movers in the matter and their m | tives. " Mr. Langley is absolutely in- nocent of the charges against him, |and will demand and insist upon-an Langley I_entertain not the slightest doubt. The sufferers in this business will not include Mr. Langley. Langley Serving Ninth Term. Representative Langley is one of the most picturesque figures in the House. He is chairman of the pub- le building and grounds committee,, and is serving his ninth term as a member of Congress. Shortly after the Chicago grand jury reported that two members of Congress were in- volved, Representatives Langley and Zihlman, the latter of Maryland, and both republicans, announced ' that they had heard their names had been mentioned and demanded congres- sional .investigations. A special House committee has been awaiting reports from the grand jury and has been investigating in- formally the charges referred to in the Chicago grand jury’s report pend- ing the findings here. The commit- tee was called together today to de- cide what course it would pursue. Chairman Burton said it undoubtedly would proceed with its investigation next week, but it had not decided whether to hold public hearings. Conmspiraey Is Charged. The indictment alleges that the per- sons accused, togethier with others |who testified before:the grand jury, formed a conspiracy to pay $100,000 to Elias H. Mortimer, Herman Geltzeiler, {and Donald J. DeLantey to secure.the purchase, withdrawal &nd transporta- tion by Moses and Sattler of whisky from a distillery warshouse to the place of business of the Union Drug Company, at 915 Gth avenue, Pitts- burgh. Of the alleged bribe of $100,000, the been paid to Langley to prevail upsn him to procure Millard F. West, John F. Kramer, Arthur McKean, Raiph E. Clepper and Russell M. Saekett, “by promise to them of official tenure and promotion to connive” at the removal and transportation of the whisky. The joint indictment alleges that Representative Langley and the five other defendants combined to defraud the United States of certain taxes to become due to it and “by corruptly prejudicing, obstructing, perverting, controvening and defeating the ad- ministration of the Internal revenue laws of the United States concerning such taxes and of said national pro- whisky. The whisky, it is pointed out in the indictment, could not lawfully be sold' at the distillery warehouse for bev- erage purposes or sold for beve: Purposes without the payment of the internal revenue tax, $4.20 per zallon. ‘The overt acts set out in the fndict- ment are four in number, the first that John W. Langley and Elias H. Mortimer. (Continued on Page 4, Column 2) _ " Continued on Page 2, Column 2.) " {Continued on Page 15, Column 1) 7 t Representative Accused as| |immediate trial, of the result of which | indictment _states, $5,000 was to hlvn" hibition act as it pertained to said] Star. FRIDAY, -MARCH 28, 1924 —FORTY-EIGHT PAGES. {40,000 COAL MINERS | MAY GO ON STRIKE .lfimuri. Kansas, Oklahoma and Arkansas Represented at Conference. By the Associated Press. SAS CITY, March 28.—A strike of 40,000 coal miners in Missouri, considered | erators’ Association, when a three- day conference between represent- es of the operators and miners to consider a new wage scale opened here, Operators have agreed a lower wage {scale must be adopted if the mines | continue to operate, but they consider it improbable that the miners will {agree to a reduction. (The present | wage scale expires April 1 3 | Charles F. Spencer, Pittsburg, Xan., president ofs the operators’ associa- tion, said cvery effort will be made to an ugreement and avert a which would cost approxi- mately $10.000,000 in wages to the workers and in’ business to the opera- tors. S2A0.0 ESTATE LEFTBY WILSON Mrs. Wilson Files Petition for Probate Through McAdoo and Lesh. Woodrow Wilson, former President ary 3, left an estate valded at $250.- 000, according to the petition for the probate of his will filed today by the widow. Mrs. Edith Bolling Wilson. Justice Frederick L. Siddons of the District Supreme Court admitted the will to probate, and issued letters tes- tamentary to Mrs. Wilson, fixing her bond at $1,000. McAdoo and Lesh File Papers. The petition filed thiough Attor- neys William G. McAdoo, son-in-law of Mr. Wilson, and Paul E, Lesh, of the Washington bar, sets forth that the late Chief Executive owned no real estate in the District of Colum- bia. but was possessed of personal property consisting of cash in bank, bonds, securities and personal effects in the estimated value of $250,000. The only debts left by Mr. Wilson arc those incident to -his funeral, which will not exceed $2,000. Consents to Probate. Consents to the probate of the will and to the issuing of letters to Mrs. Wilson accompany the petition and are signed by Margaret Woodrow Wilson for herself, and for her sister, Jessic Woodrow Sayre, under author- ity of a cablegram to her from Bang- kok, Siam, where Mrs. Sayre is re- siding., and by Mrs. Eleanor Wilson N hose” signing th ts are the ose signing the consen daughters of Mr. Wilson by his first marriage, and are his only heirs at law. As the will of Mr. Wilson provided an annuity of $2,500 to be paid to his daughter Margaret, while she remain- ed unmarried, she also signed a con- sent, that no more than a nominal bond be required of Mrs. Wilson, as executrix of the estate. Under 'the will Mrs. Wilson is namdd the chief beneficiary of the estate. 25 TRAPPED MINERS ARE BELIEVED .DEAD !Explosion in West Virginia Shaft ..Entombs All Men at Work, Says State Report. WELCH, W. Va, March 28— Twenty-five men were entombed to- day in a mine at Yukon, McDowell county, by am explosion. According to reports received here the men are believed to be dead. CHARLESTON, W. Va., March 28.— The state department of mines to- day was advised of an explosion in a mine at Yukon. The report contained no mention of the fate of twenty-five miners who were in the workings when the blast occurred. There is no telephone at Yukon, and reports from nearby villages were meager. Kansas, Oklahoma and Arkansas was | imminent today by offi-! cials of the Southwest Interstate Op- | 1 of the United States, who died Febru- | Yesterday’s as fast as the papers are printed. Circulation, 102,746 TWO CENT i i | JOHN WALSH DENIES OIL CONNECTIONS Calling of Brother of Mon- tana Senator Causes Hearing Row. John Walsh, a Washington lawyer | and a brother of the prosecutor of | the Senate oil committee, was called | before the committee today and ques- | tioned at length by Senator Spem‘er,i republican, Missouri, regarding hi activities and conmnections. ! The witness said he never had been | connected directly with any oil com- | pany, but was general counsel for a| holding company. He denied that! this company had any “interest in oils in Wyoming or any other north- western state, The examination deyeloped another row between Senator Walsh and Sen- ator Spencer, during which the | former charged that his brother had | { been called in an effort to “cast some | suspicion on me.” ] | Both the senator and the witness| jurged Senator Spencer to press lquestioning further, but he that if he had any more ques ask he would put themglater. ologist Heard. The committee also heard Sardeson, a Minneapolis geologist, seribe the oil properties of Teapot Dome, but adjourned until Tuesday without calling to the stand William eplied | ons to | gal i the Boyce Thompson, formerly connected with the republican national commit- | tee. He is to be questiol (1! «boul( campaign contributions and the com- | |mittee also will recall Will H. Hays. | vho was the republican national hairman in 1920, i Semator's Brother Heard. | Walsh was subpoened vesterday at | the instance of Senator Spencer, re- | publican, who insisted that hel be heard today. Senator Spencer| had been under investigation and that the fact that he had been sub- | poenaed had left him under suspicion, Walsh took the stand. Under questioning Walsh that he never had been associated | with the Mutual Oil Company, nor| directly with any other oil company, | but that he is a director and general | counsel for the American Republic| Corporation, a holding company. | “Does your company have any in-| terest in Wyoming or jn California which have any connection With the { naval oil reserve leases?” asked Sen- ator Spencer. “I am glad you asked that ques- tion, because the republican national committee is making an investigation of that” replied the witness. “My company has had no interest in oils in Wyoming, Montana or anywhere else in the northwestern states.” Names Companies. Senator Spencer insisted on having the names of the companies for which the American Republic is the holding company. Walsh said the American Petroleum Company, the Federal Pe- troleum Company, the Apoose Oil Company, Republic Producing Com- pany and the Fidelity Securities Com- pany werc engaged in the oil busi- ness in Arkansas, Louisiana, Texas and Oklahoma. Walsh said he had never appeared before the Interior Department in oil jmatters and never engaged in the oil business in either Montana or Wash- ington. 5 1 think, in view of the statements which have gone out, I have been placed under suspicion,” insisted the i testified | said he was not ready, but after Sen- | s ator Walsh said his brother’s business | | was witness when Senator Spencer had | finished his examination. “If you | have anything in mind let me have ! it now.” | MILLER 15 OUSTED AS D. C. INSURANCE HEAD AFTER CODE CHARGES ARE AIRED Rudolph Calls on Him to Re- sign as Superintendent. Denies Accusation by Blanton in the House. RECITES NEED OF LAW AND LONG EFFORTS MADE Documents Charging Fourteen In- surance Companies Paid Official $6,820 Toward New Law, Laid Before Congress by Texas Rep- resentative, Following Report Burt A. Miiler, resigned today superintendent of insurance of th District, at the request of Commi sioner Rudolph. In a statement issued by Superi tendent Miller, he said that while r reasons were communicated to hin for the requested re: ation, he as sumed that the request grew out the charges made against him Representative Blanton of Texas, connection with the efforts to have a new insurance code enacted for tk iller tells the orandum today rges impute a ance, they Continuing, he states: The money Teceived by me from insurance companies to be u: the preparation of the draft of the proposed code of insuranee law for the District of Columbia has all been fully and properly accounted for in so far the same passed through A proper accoun inz has made subscribed to the i In this connection to th tion of the board to the hat my action in seeking sub riptions for both of these purpose xas known to the board an jection was made th Says Legislation Need. “The need of modern insurance leg islation for the District of Columbia has been apparent for many yea and various attempts have been made to have Congress pass such legisli- tion. To prepare a code of insurance law which would meet the needs re quired a considerable amount of le- id of comparisons of f the various states, suct - dome by the legal us established i f the Union to ass of governments i pre slation for their depart- ments. ch help was available to_the superintendent of insurance of this District and in preparing legisla tion it w r him to seek the help This, of course required the expenditure of funds.” Appeal for Needed Funds. “The department having no funds ilable for the purpose, it w sary to to inter ested, and th ¢ #nade it had beer owledge of the d of Commissioners of this Di one © the mon ved was improperly expended, for the pur e action of any of Congre ither directl or indirectly. Practically all of the oney contributed was spent for th printing and the lega 0% a abwolutley ca re: laws as would those brought to the k influencing t servic “The preparation of such legislation a matter of great interest to me. T tock pride in endeavoring to have prepared and introduced what 1 hoped would be looked upon as a model code of insurance for this Dis- triet, and I have no apology to off for my action in seeking the aid of people experienced in the insurance field and in insurance law to assist me in that werk “It has been charged that T was | debted to Mr. Lonis A. Dent, and was by reason of that indebted that he was employed to do the le work In connection with this bl The inference sought to be conveyed is that 1 had paid my indebtedness to Mr. Dent by employing him at a large compensation for this work. That arge is absolutely false. 1 was no indobted in any way to Mr. Dent, no! have I ever been It has been charged that T trieh to borrow $300 from C. Taylor of the Federal Life Insurance Company this charge is false. It has been charged that I borrowed $400 fr Jesse A. Foster, vice president « that company; this charge is false. Securitiex Turned In “It is true that I had in my posses- sion as superintendent of this de- partment only $25,000 worth of secur ities of the Federal Life Insurance Company, which came into my hunds only on yesterday from the tith company. This is in the form of note on a mortgage secured by re estate and the note and the mortgag securing the same are transmit to_you herewith. “It is not true that T collected tho interest on this security; the onl basis for such a charge is that upon e “I am not ready to examine youlone occasion an interest check wis further this morning,” said Spencerisent to this department, which was vand I will not examine you until/at once mailed to the Federal Lifa I am_ ready and should it turn out that I do not desire to examine you turther, I will not summon you.” Asks Testimony Stricken Out. As Walsh was excused Senator | Walsh moved to strike out all of his testimony as irrclevant, to test the sentiment of the committee, but he later withdrew his motion. Senator Dill, democrat, Washing- ton, insisted that the testimony re- lated in no way to the naval oil leases. “All this is, is an attempt to in- crease the suspicion, which the Sen- or from Missouri ‘wishes to excite about_this Witness,” interrupted Sen- ator Walsh. Semators In Argument. “The senator from Montana is en- tirely mistaken returned Senator Spencer. He said that if it should develop that Walsh's testimony was irrelevant be would be the first to Insurance O The Liauner in which this incident is referred to it Mr. Blanton’s report is to infer that I had diverted this interest to my own use. + “As stated in the beginning, 1 that T should have been giver opportunity to answer these charge- before your board before my resigna tion was requested, and I am submit ting this resignation solely because it has been requested and to save any possible embagrassment to your hon- orable board ahd for the further pur- pose that if my elimination will re- move the opposition to the bill now before Congress I am willing to make that sacrifice.” Making good a former pledge to the House District committee that he would make startling charges in connection with the legislation for a new insurance code for the Nationa} Capital, which has been favorabl rrpnlifll to t! Representati ve (Continued on Page 5, Column 2.) (Continu