Evening Star Newspaper, September 25, 1928, Page 10

10 RELIGIOUS ISSUE SHUNNED BY BORAH Senator Replies to Smith on Dry Law, Immigration and Farm Aid. By the Associated Pross. TULSA, Okla., September 25.—Sena- tor William E. Borah answered Gov. Smith on three major issues of the presidential campaign, farm relief, pro- hibition and immigration in a cam- paign speech here last night. During the 90-minute talk he made no reference, direct or indirect, to the so-called “religious controversy,” which, he declared earlier in the day, “is not a political issue—and I refuse to dis- cuss it.” Introduced to the thousands as “the outstanding . American statesman of our times,” Senator Borah was received with prolonged applause, cheers and whistles as he took the speaker’s stand. Only twice during the entire talk did he refer to the Democratic nominee by name—at all other times Gov. Smith was either “the distinguished gentle- man who recently spoke in Oklahoma y* or merely “the governor.” s opening words, after greeting Oklahoma, were in explanation of his “deep interest” in the present presi- dential campaign. “This afternoon I received a letter at my hotel, a friendly letter I suppose, saying: ““You've always been considered rath- er irregular as a Republican heretofore —why are you regular in this cam- paign?’ “I am interested, deeply interested. and for two reasons,” the Senator ex- plained; “the first reason for my in- terest is known as the farm problem— and the best equipped man in the United States today to deal with that complex problem is Herbert Hoover. My second reason is my desire to see the Constitution of this country main- tained and enforced as the people have written it.” GOOD DECLARES BLAINE NEVER WAS REPUBLICAN Denies Wisconsin Senator’s Charge That Hoover Fixed Price of Wheat During War. By the Associated Press. CHICAGO, September 25.—Discuss- ing the statement of Senator John Blaine of Wisconsin, in which the Sen- ator declared for Gov. Alfred E. Smith for President, James W. Good, West- ern campaign manager of the Repub- lican national committee, yesterday charged that “Mr. Blaine has never been a real Republican.” “The only significance to Mr. Blaine’s statement,” he said, “is that he unfurls a flag he has long kept concealed.’ Declaring that Mr. Hoover had noth- ing to do with fixing the price of wheat, Good quoted President Wilson as having said: “Mr. Hoover, at his express wish, has taken no part in the deliberations of the committee on whose recommendation I determined the Gov- ernment'’s fair price, nor has he in any way intimated an opinion regarding that price. Senator Blaine was credited - with declaring Hoover had something to do with “beating down the price of the farmers’ wheat.” Good charged that “Mr. Blaine has either been deliberately misrepresent- ing Mr. Hoover or charging him with ut which he was ignoral ‘"THE EVENING STAR, WASHINGTON, D. €. TUESDAY, SEPTEMBER 25, 1928.° Text of Gov. Smith’s Speech By the Assoclated Press. HELENA, Mont., September 25— Gov. Smith's speech last night, as pre- pared for delivery, follows: The Denver Post of last Sunday calls to my attention that the Republican candidate for President, addressing 2 number of young college men from Maryland, said: “A new generation must begin row to take over the responsibility of the party and carry it out.” That extract from his brief speech I shall take as my text tonight, and I shall speak to you on the subject of party responsibility. In the election of 1320 the Republican party received at the hands of the peo- ple of this country an cvervhelming vote of confidence. The American peo- jle renewed that vote of confidence in 1924. Let us therefore tonight review briefly some of the phases of the Republican administration for the purpose of fix- ing in our minds the Republican party’s responsibility for some of the happen- ings since 1921. Lincoln’s ideal was not only govern- ment of the people, and by the people, but government for the people. I take it that mans all the people and not the few who use the machinery of govern- ment for their personal benefit. Grover Cleveland said that “public of- fice is a public trust.” While that ex- pression came from a Democratic Presi- dent, it must be agreed to by every honest candidate for public office and by every honest holder of a public office. The holder of any trust found faith- less thereto can be brought before the bar of justice. The faithless political party should likewise be brought before the bar of public opinion. And, let it be said to the everlasting glory of the senior Senator from Montana, Senator Thomas J. Walsh, and his associate, Senator Burton K. Wheeler, that they played a large part in bringing before the bar of public opinion the Republican party found faithless to its trust. I feel that the Democratic party renders a great public service in bringing home to the people the faithlessness of the Re- publican party with respect to the con- servation of public resources as repre- sented in their disposition of the oil fields set aside for the use of the Navy of the United States in times of need. As far back as the administration of President Roosevelt the President or- dered a geological survey of the oil fields of the country and suggested a policy of setting aside certain proven and prospective, oil fields within the public domain as a naval oil reserve supply for the United States Navy. He declared: “The preservation of a fuel oil reserve is essential to the very life and future existence of the Navy.” This policy was carried into effect in the ad- ministration of President Taft, and con- firmed during the administration of President Wilson. Change Comes in 1921. It is a matter of history that during the administration of President Wilson large oil combinations diligently sought to secure leases of these oil reserves from the Secretary of the Navy. The Democratic Secretary of the Navy, Josephus Daniels, was steadfast in his refusal to alienate these great proper- ties, having a keen understanding of thefr worth to the Nation. This statement made by Secretary Daniels sets out his positios “Any man who would permit the oil reserves of the Navy to be tappd is risking the very national cxistence cf the United States. It is outrageous and wicked. Without plenty of oil for fu- ture emergency, our war vessels will be as useless as a painted ship upon a painted ocean.” Under severe pressure exerted, even by personal friends, the Democratic Secretary of the Navy stood four-square for the preservation of this great re- source of the Nation. In 1921, however, the advent of a Re- publican administration marked a Charging “Corruption” to G. O. P. change in attitude of the high officials of the Government with respect to these oil reserves. The great oil barons of the country sought leases on what afterward became known to even the children in our public schools as Tea- pot Dome, in the State of Wyoming, and Elk Hill Reserve, in the State of Cali- fornia. The sworn testimony tells a long story of intrigue, corruption, trickery and chicanery unparalleled in the hstory of any modern civilization. Calls Order Illegal. On May 31, 1921, the Republican President, by an illegal executive order, transferred the oil reserve from the De- partment of the Navy to the Depart- ment of the Interior, and this, according to the sworn testimony, over the vigor- uNus protests of the high officidls of the avy. Following the transfer of the oil re- serves to the Department of the Interior the Republican Secretary of that de- partment in” November of 1921 leased Elk Hills reserve, in California, to one of the largest oil concerns and, according to sworn testimony, received in cash for himself and for his own use $100,000 that was delivered to him—as the testi- mony *records—in a little black bag. Does anybody in the United States today desire to say that the Republican party as an organized political party shares none of the responsibility for that? In April of the following year the Teapot Dome reserve was leased to an- other large oil operator. Following these leases it became known in New Mexico, the home of the Republican Secretary of the Interior—and for that matter in Washington—that before this time the Secretary of the Interior was in strait- ened financial circumstances. Arrearages of taxes on his ranch in New Mexico ran back as far as 10 years. Cites Fall's Prosperity. There suddenly became apparent to his neighbors an unusually prosperous appearance to the ranch; roads were built through it, a $45,000 electric light plant erected upon it and various other improvements ;made. This, following a knowledge of the leasing of Elk Hills, caused some suspicion, to say the least, in the minds of the legislators at Wash- ington, and accordingly, in April of 1922, the Senate ordered an investigation of the oil leases and Senator Walsh of Montana was chosen to direct the probe. Evidently believing that nothing would be disclosed, the Secretary of the Interior in the following month, with his son-in-law acting as the messenger, received an additional $198,000 bundle of Liberty bonds. It is a matter of history that, for a year and a half prominent Republican Senators did what they could to block the investigation and would probably have succeeded were it not for the re- awakening rumors about the extraordi- nary prosperity of the Secretary of the Interior. In December of 1923 the Sec- retary of the Interior was scught by the investigating committee. Feigning illness, he wrote to the committee and explained his new prosperity by declar- ing that he had borrowed $100,000. And further testimony disclosed this to b not the truth. A few weeks later one of the prominent oil men confessed that he had sent the cash to the Secretary. Leases Are Canceled. ‘Thereafter the Supreme Court can- celed the leases. In its opinion on one of them it said: “The clandestine and unexplained acquisition of these bonds by Fall con- firms the belief generated by other cir- cumstances in the case that he was a faithless public officer. There is nothing in the record that tends to mitigate the sinister significance attaching to that enrichment.” And it further said: “The leases and agreement were made fraudulently b; means of collusion and conspiracy. ‘The sworn statement of an admiral of the Navy is to the effect he was i formed by one of the Republican cabi- net officers involved that the leasing of these oil reserves was discussed in the cabinet of the Republican President of the United States. ‘What was the reason for keeping these oil leases secret for such a long while? What was the reason for mak- ing these leases contrary to the estab- lished custom without any public bid- ding and without any publicity? It is a matter of record that one of the prospective bidders, who desired to make an offer if there had been pub- lication of the proposed letting, was the vice president of the Texas-Pacific Coal & Oil Co., who wrote a communication protesting against the secret leasing of ‘Teapot Dome. One of these communications was sent to Secretary Hoover and he turned it over to Secretary Fall after writing thereon the following: 2 “Any reply that you may suggest. He sent a similar communication of protest to the Republican President himself. Other Circumstances. TLet us consider some of the other cir- | cumstances which caused the Supreme Court of the United States to brand these transactions as corrupt. The executive order transferring the control of these naval reserves from the Navy to the Interior Department was kept secret long after it was made. Its existence was vehemently denied by of- ficials of both departments. No record of it was filed where executive orders are usually filed. It was held by the courts to be absolutely unwar- ranted in law. After it was made the Republican Secretary of the Interior began to move on what the Supreme Cowgt called “a trial of corruption and fraud.” High officers of the Navy who had been patriotic and diligent in their op- position to these transfers were sent out of Washington, The Republican Secre- tary of the Interior issued an order on the pretended plea of military necessity that no publicity in oil matters was to be given out. He wrote a letter to one of his lessees, assuring him: “There will be no posgbility of any further conflict with the Navy officials in this depart- ment, as I have notified Secretary | Denby that I should conduct the matter | of the naval leasing under the direc- | tion of the President.” Secrecy Ts Attacked. The Supreme Court of the United States refers to this letter as follows: “This -exultant declaration that he was in a position to handle these vast properties as he pleased discredited Fall. His desire to get control of the reserva- | tions and then so proclaim that he had it strongly suggests that he was willing to conspire against the public interest.” With respect to the Teapot Dome lease there was also a complete secrecy. | ‘The Supreme Court said there was never | any legitimate reason for this secrecy. | The Secretary of the Interior even made false statements about the lease, saying to an inquiring oil man, three days after he had signed it, that no lease was being contemplated. Long after the leases were made repeated denials were made by Government officials of both the In- terior and Navy Departments that any such lease had been made. No wonder, indeed, that when he opened an attack upon the Teapot Dome, Senator La Follette said: “When all the disgraceful details of his scandalous deals are made public the Senate will be staggered by them.” ‘What the Government was to lose and the lessees were to gain from these transactions is evident from the testi- mony of one of the lessees that it would be a case of ill luck if his company did not make $100,000,000 out of its lease. This was the lease a5 to which the Su- preme Court pointed out that it was “obtained and consummated by means of conspiracy, fraud and bribery.” Court Decision Since 1924, Here we have as cold-blooded and as a deliberate a conspiracy against the United States Government for private gain as can be found recorded at any- time in history. It would have been less of treason against the Government of the United States to have destroyed her battle fleet or to have demolished her coast defenses, both of which could | instead contributed $50,000 to the Re- | ed the bonds. have been replaced, whereas these oil reserves, established by three Presi- dents, were to be held by the Navy for use in time of national emergency and could not be replaced. Is there anybody in the United States willing to say that the Republican party is to bear no responsibility for this long tale of corruption, intrigue and treason against the Government itself? I am fully aware that almost all I have here recited was before the Ameri- can electorate in the presidential elec- tion of 1924. ‘There is one important exception to this, however. The Supreme Court of the United States had in 1924 not yet rendered its decision placing the seal of its condemnation on these wicked transactions. Since the election of 1924 the people have learned on the author- ity of the highest court in this land that these oil leases were the product of official corruption and fraud. Cites G. O. P. Deficit. ‘The Republican party at that time, judging from the election returns, must have convinced the American people that guilt in this instance was personal and that it ran against the individuals involved and nat against the party. Unless we are willing to accept this theory we must take another one. which, to my mind is unbelievable; it is that the people of this country are callous about these things. That I re- fuse to believe. However, since the election of 1924 new disclosures put the matter in an entirely different light, as- suming that the first premise is cor- rect, and I believe we must assume it. Since that time testimony has been brought out to show that there was a deficit in the Republican national cam- paign of some $1,800,000. It was also testified that the chairman of the Re- publican national committee secured from the beneficiaries of the oil leases at least $260,000 in Liberty bonds fo help liquidate this indebtedness, but being not of itself a straightforward and honest transaction it had to be can- celled, and the testimony shows that the manner and method of concealment was to offer the Liberty bonds in large quan- tities to certain prominent Republicans and have them in turn make an equal contribution by check to meet the deficit in the Republican national committee’s treasury. Mellon Refused Bonds. In a great many instances prominent men in the Republican party accepted these bonds and gave to the national committee in their place their checks for equal amounts. It was the hand- writing of a dead man that disclosed to the people of the United States to whom | these bonds were offered. They were offered to the Republican Secretary o the Treasury in an amount of $50,000. The Secretary of the Treasury was un- willing to be a party to this fraud, and publican national committee and reject- But this much must be said, that the Senate committee in search of informa- tion as to these bonds could have got- ten it from the Republican Secretary of the Treasury long before it was forced out, had he been disppsed to aid the Senate of the United States in laying bare this wicked conspiracy against the American people. It stands admitted in the record that for a period of years the Republican Secretary of the Treasury concealed from the Senate investigators his knowledge of the manner in which th>se bonds were being put into the treasury of the Republican party. Veterans’ Bureau Scored. Is there anybody in the United States that would be willing to make the declaration that for this particular transaction the Republican party is to bear no responsibility? If there is no responsibility for all of this resting upon the Republican party, then we must sub- scribe to the ridiculous theory that the citizenship of this great country is en- tirely satisfied to allow any political party to fill its treasury with the pro- ceeds of official corruption and crime. ‘There is no more grateful people in the world than the people of this coun- try when it comes to the proper care of the youth and flower of the land who respond to the call of the President of the United States to uphold the dignity and the majesty of our great republic in time of war. Following the armistice the outpouring of the American heart was ready to meet any cost to contribute to the comfort and the wellbeing of those who were injured in the service of the country, If public money appro- priated for the sacred use of caring for the afflicted soldier is wasted and squan- dered—and I use the stronger word stolen—is there anybody to say that the party in power bears no responsibility for this theft of funds appropriated for the care of wounded soldiers. ‘The Veterans’ Bureau at Washington, for the care of disabled veterans, under Republican administration was brought under investigation by the insistence of Democratic Representatives and Sena- ;,ors Joined by certain Republican mem- ers. Director Convicted. And there was revealed in the course of the investigation and laid bare be- fore the horrified eyes of the American people a record of graft and betrayal of the Nation's wards which sent the Re- publican_director of the Veterans’ Bu- reau at Washington to a Federal peni- tentiary. The responsible official traf- ficked in hospital sites, located institu- tions in_out-of-the-way, inaccessible places. Millions of dollars’ worth of hospital supplies were sold on the theory that they were not needed, at a low price, and bought back by the Govern- ment at five times the price for which they had been sold. ‘What could be more sordid? What could be worse? And for such perform- ance can it be truthfully said there is no party responsibility? During the war the property of alien 2nemies found in this country was seized and held for them in trust under inter- national law. There rested upon the Government of the United States the sacred duty of safeguarding these funds and this property. The Republican alien property custodian, appointed by a Republican President, made such dis- position of these funds as to bring him within the criminal statutes and land him in a Federal penitentiary for con- spiracy to defraud the Government of the United States that he was sworn to netain, Who in this country would be willing to say that a party must assume no responsibility for that conduct in high public office? Holds G. 0. P. Responsible. I full realize that to err is human, and in all governments and at all times individuals will yield to temptation. But the testimony here does not indicate that. It rather indicates a widespread, well thought-out, deep-seated con- spiracy to defraud the Government. participated in by many men of high € | station, reaching into the very cabinet of the President of the United States and into the leadership of the party it- self. I am unable to understand by what process of human reasoning it can be said that herein guilt is personal an< that the party as a party bears none of the responsibility. Suppose that any such record as this were laid before the ‘American people as having taken place in the adminis- tration ot President Wilson. Would not the Republican party make glorious campaign material of it, insist that the American people believe it to be the record of the Democratic party, ciaim it to be legitimate campaign matter, of- fer it as an abundant reason for the defeat of the Democratic party and the return to power of their own party? Cculd anybody in his wildest imagi- nation believe that the Republican managers would be prepared to say that if'such guilt, clearly proven, had ex- isted under the incorruptible adminis- tration of President Wilson it would be regarded as personal and in no way charged against the Democratic party? Nobody believes that. Nobody thinks it. Democratic Party “Unimpeachable.” The record of the last seven and a half years is as well known to the Re- publican candidate for President as to any other man in the United States. Nobody will deny that. Mr. Hoover sat in t cabinet for seven and a half years, yet I search in vain for any word from him of protest, of con- demnation or of repudiation of thi black chapter of his party’s history. On the contrary, in the face of that record in his speech of acceptance he said: “The record of these seven and a half years constitutes a period of rare cour- age and leadership and constructive ac- tion. Never has a political party been able to look back upon a similar period with more satisfaction.” ‘Would Mr. Hoover have the Ameri- can people believe that in the light of the disclosures I mentioned there was any rare courage, any leadership, or any constructive action? Above all things, would he have the American people be- lieve that a political party with that record in oftice could look upon it with satisfaction? Does Mr. Hoover want the people to believe that he looks back with satisfaction upon that record? It will not satisfy the American people to have him pass that question on to the chairman of the Republican national committee; nobody can answer that but himself. I would regard it as harmful to the Radiator The Raleigh Model, & vory popular atyie, with round ends. Other models with square ends, both high and low ‘consols and window seat type. George E. Terrell ‘Washington, D. C. Telephone: Potomac 2436 Dear Sir: Address ... 1706 Connecticut Avenue Mr. George E. Terrell, 1706 Conn. Avenue, Washington, D. C. 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