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About The Omaha morning bee. (Omaha [Neb.]) 1922-1927 | View Entire Issue (March 23, 1924)
Oil Magnate Refuses C a 11 to Take Stand Will Hays Testifies No Oil Money Taken to Make Up 1920 G. O. P. Fund Deficit. By AlMclitrd Trenu. Washington, March II.—By unani mous vote the oil committee voted today to certify Ilarry F. Sinclair to the senate for contempt as a re sult of liis refusal to testify. The decision as to the exact pro cedure will be held in abeyance until the return of Atlce l’omerene and Owen >1. Roberts, special government counsel in the oil lease cases. Senators said two courses were open •—contempt proceedings before the senate itself, or certification of the case to the district attorney of the District of Columbia for gTand jory proceedings. By Associated Tress. Washington, March 22.—After fall ing finally to induce Harry F. Sin . clair to testify, the oil committee to day received from Will H. Hays a flat denial of the story that Sinclair had contributed a large batch of oil stock to wipe out the deficit in the republican party treasury after the 1920 campaign. Sinclair refused to testify after the conjniittee voted unanimously to overrule objections of his attorneys. Havana, March II.—G. D. Wahl berg, for whom a subpoena has been Issued by the senate Teapot Dome investigating committee In Washington, is in Havana, it was learned today. He left a request at liis hotel that the names of all ' callers he announced in advance, ’*.# bi’Wie was not at the hotel today . when newspapermen called. V_______/ Despite the committee's position, he said, he must reserve whatever evl Kit: dene he has tor ih courts. » Questioning Mr. Hays, Senator Walsh asked: “Do you know the witness (Sinclair) who just left the stand?” “Yes sir, for 8 or 10 years," re plied Hays. "It has been testified to before !, another committee," went on the sen ator, "that Mr. Sinclair gave certain stock to wipe oat a deficit of the republican national committee. Tell us about ft.” "I can’t tell you about It.” re turned Hayes. “It Is not true." HAS NO IDEA OF SOURCE OF STORY. "You saw a statement In the New York Times that you would testify to such a donation?" "Yes, but that story If untrue. It Is false.” Hays said he had no Idea •* to the feotirce of the Times statement. "Would it surprise you to know that that Information came from your office?” asked Senator Walsh. “It could not have come from there,” was the reply, “as It Is not a fact." Hays Identified Joe O'Neil, a former newspaperman, as an employe of his office. Asked If O’Neil had not given the statement to the Times, Hays --- \ By Associated Pro—» Washington, March 22.—Infor mation has come to Senator Walsh of Montana, the oil committee prosecutor, that a book relating to “oil deals” at the republican na tional convention at Chicago in 1920 was at one lime put Into 1 print and then suppressed. Senator Walsh said today he had been promised a copy of the volume. He has not been inform ed as to tlio identity of the author. L. __j said he could not have done so as there was no basis for the story. "Please tell us what Sir. Sinclair had to do with making up the de ficit," said Senator Walsh. "I assume it is not the purpose of the committee to go Into campaign contributions,” Hays returned. 'I assume the committee considers that irrelevant as I do. Besides. I am not the source of Information now. The , witness began a long statement about the general subject of contributors. Senator Stanfield, republican. Oregon, objected, saying, "this question Is lm i? material and Irrelevant." Senator Walsh Insisted that the question he gi had put was relevant and there was a long wrangle. Senator Stanfield's motion finally was voted down, fi to 4. HATS REMINDED OF CONTEMPT LAW. Senator Stanfield then called Hays' attention to the law of contempt to , . Indicate to him that he did not have !• i to answer irrelevant questions. He ■ said he did not desire to decline to answer any questions: that he would state again that the story about Sin Clair giving 75,000 shares of stock , was false. "I could only give my best Juflg meat,” Hays said, as to Sinclairs contribution. "My judgment Is that It did not exceed $75,000.” Hays said some time after he re tired from the cabinet In 1922 he sug gested to Sinclair that he help make ■up the party deficit. "It must have beentwo years after the 1920 election,” he eald: "yee, it must have been a year and a half after I left the cabinet. I may say that I never heard of any lease of any naval reserve to anybody.” * , -I am trying to fix the time you solicited Mr. Sinclair.” Senator Walsh ■eld. . “1 think It was In the summer or 1923.” said Hays. "Was the contribution paid to you. "No. not paid to me: I helped to handle the funds. I asked Mr. Sim rlair and others to contribute. As I recollect. Sinclair told me he would be responsible for s, maximum of $75,000. I tblnk that $75,000 went to a part payment on a note at the Empire Trust The details of this 111 have to ask you to get from tha commit tee." "Well, from whom? "Mr. Uppham (Fred Tfppham. the party treasurer), I should think To gether we can furnish It. ... “Is It not true that you a fun*1 In the north separate from these other funds?” "No. th*t'« not true. Asked about the testimony of a. t) Wshlherg, former private seere *»rv to Sinclair, that h» had given 4 {26,000 In Liberty bonds to a Mr Hayes." Tbs witness said he had no farts on the subject. Hs added that ths reference might be to Hinkle Hays of Sullivan, Ind., his brother, who had a "purely personal" transac tion with Sinclair. "You are welcome to go over my books." Hays said. The law firm of Hays and Haya of Sullivan, of which Haya and hla brother are member*, repreaent* Sin clair lntereata, the witness said, add ing that Sinclair had large Interest* in Indiana. Haya declared he had severed hia relations with th# law firm when he entered the cabinet. CABINET DIDN’T DISCUSS OIL LEASES Questioned by Senator Dill, demo crat. Washington, Hays said that the naval oil leases never were discussed at any cabinet meetings he attended. “Was any stock besides Sinclair Consolidated used In connection with the deficit of the republican national committee?" asked Senator Dill. “No stock of his company or any other stock was used." “No stock used as a loan?” "Not while I was chairman, and I suppose not since.” “Did Sinclair propose to underwrite these loans?” “No.” • “Did Mr. Doheny make any contri bution?” "No, not that I know of.” “Did you ever ask him?” “No." The witness waa excused and the committee went Into executive ses sion. In a statement made after the com mittee had refused unanimously to concede his plea against the authori ty of the Investigators, Sinclair de clared he did not desire to plead for fear that his replies might tend to in criminate him, because there was nothing In the facts relating to his Teapot Dome lease that was Incrimi nating. Sinclair said he claimed that the committee wa# “without Jurisdiction to question me further regarding the procurement of the lease or the valid ity there or any fact or circumstances pertaining thereto.” If the examination should be directed toward "eliciting facts concerning fraud or corruption," the statement added, the committee would have con stituted Itself “a grand jury” on mat ters already submitted by the govern ment to “the constitutional authori ties.” “I shall reserve any evidence I may be able to give,” Sinclair said to the committee, “for those courts to which you and your colleagues have deliberately referred all ques tions of which you had any jurisdic tion, and shall respectfully decline to answer any questions propounded by your committee.” “There Is nothing," he continued. “In any of the facts or circumstances of the lease of Teapot Dome which does or can incriminate.” CHARGES HARDING NOMINATION BOUGHT T.os Angeles, March 22.—A1 Jen nings, erstwhile train robber and late ly active in the fields of religion, real estate and politics was ready to de part today for Washington to testi fy before the senate oil investigating committee. Before leaving Jennings predicted that when the light of his testimony concerning an alleged II, COO.OOO price paid for the republican presidential nomination in 1320 comes in contact with the inflammable at mosphere of the senate oil investiga tion an explosion will result that will “rock the country.’’ As a close friend of the late Jake llamon, republican leader in Okla homa, Jennings explained ha learned the details of Hainan's negotiations to swing the 1320 presidential nomina tion, and “knew what Hamon expect ed to get out of It." »■ ~ — "Jess Smith Was Enmeshed by Daugherty” Roxie Stinson, Suicide's Di vorced Wife, Accuses Attor ney General of Intimidat ing Her in Cleveland. Br International N«*i Servlco. Washington, March 2!.—Sobbing at tlinca hysterically, and .accusing Attorney General Harry Daugherty "of enmeshing" her former husband, Jess W. Smith, In a maze of Wasli ingttui intrigue, Roxie Stinaon, di vorced wife of Smith, played the atel lar role in a dramatic scene before the senate Daugherty Investigation committee. Miss Stinson accused Daugherty of "intimidating'’ her In Cleveland, aa she tearfully related In a broken voice how it came to happen that she was registered at a Cleveland hotel with A1 Fink aa her husband. She said aha had gone to Cleveland about a ’ business matter" end he had made reservations for he*. While they were having dinner in her room that night, she said she inquired how he had registered and Fink told her "under a fictitious name.” Subse quently she learned that she was reg istered as his wife, she said, and im mediately left the hotel. This was at 11 o’clock that night, she said. SATS FINK CAME TO HOTEL. She then said that Fink came to see her at the Statler hotel the next day with a man named Ellis. On the fol lowing day, *she said, Fink came again and told her that they were go ing to be arrested, "for registering under a fictitious name." "Fink said they had arrested him and Ellis for conspiring against At torney General Daugherty, and that he would go behind the bare unless I would promise not to tell anything nbout Daugherty." eaid Miss Stinson, “I just laughed at him but Fink was excited and said that I could be ar rested too.” Fink, she added, then called in Samuel Ungerleider. Cleveland brok er. f “Ungerleider eald there waa aome sort of conspiracy against Harry M. Daugherty and that EM® and Fink were under arrest and that a warrant was out for me,” the witness con tinued. I told him I knew It was a frame-up and that they could go ahead.’’ Miss Stinson said Ungerleider In sisted that she "give her promise not to talk about Harry M. Daugherty and the matter would he dropped.” By AiMflatfd Fre»t. Washington, March 22.—Roxie Stin son, divorced wife of .Tess W. Smith, “bumper and friend” of Attorney General Daugherty, resumed the wit ness stand today before the Daugh erty investigating committee and brought her letters to support her story of last week. Before Miss Stinson began. Senator Wheeler declared Mr. Daugherty had done “a dirty, cowardly trick" In making charges of blackmail against her In his statement. Miss Stinson's eyes poured tears during the senator's statement. Chairman Brookhart read , last night's statement by Attorney Gen eral Daugherty and emphasised his comment upon the committee leaving unnoticed the department's record of liquor prosecutions. “I got the record from the depart ment last night after the statement was issued,” Chairman Brookhart said. “Has Mr. Daugherty seen fit to ex pain what official position Jc»a W. Smith had In tha Department of Jus tlce?" asked Senator Aehurst, demo crat, Arlsona. "Ha has not,” Chairman Brookhart responded. "We ought to let that be explained by the attorney general, who hae not yet come to the stand," Senator Jones, republican, Washington, said. Former Senator Chamberlain of counsel for Daugherty, complained that counsel had not been allowed to erose-examlne witnesses, particu larly Roxle Stinson and Gaston B. Means. SENATOR WHEEIJ5R CRITICISES PRESIDENT. "Miss Stinson Is here, you’ll have your opportunity today," said Sena tor Wheeler. "She has been sick— and the reason Is that the attorney general has stooped to the unmanly and Indecent thing of attacking her character." Senator Chamberlain protested the attorney general was being placed In an unfair position. "We have the whole power of the Department of Justice directed against us and thlq hearing," Sena tor Wheeler asserted, "with Its agencies Intimidating our witnesses by threats of prosecution If they ap pears I criticize the president of the United States for keeping this man In his place of power while this pro ceedlng goes on. The least the presi dent could do would be to suspend him." Miss Stinson began by taking up Mr. Daugherty's charges in detail. First she denied that she was a "dis appointed woman” and declared Smith had never led her to believe she was to be, his sole heir. "Just utterly false," she said of the attorney general'# charge that she had attempted to "capitalize her silence." A young man named Lyle Johnson, Miss Stinson said, who represented himself as coming from Washington, offered her $ 1,000 for a lead on where to go to get information. Miss Stin son eald she refused to give any in formation to anybody until after she talked with Senator Wheeler. For six months before his death, Jesse Smith had been "in fear," Mies Stinson said, and the last evening they were together, he spent mostly In telling "what not to tell and what bank books and papers to destroy. Some of Mr. Daugherty’s state ments, she said, "were gossips, In competent and malicious.” She men tioned this, she said, because Jesse Smith was "enmeshed in unsavory deals, through his great loyalty to an unscrupulous man." WARNED NOT TO BE OUT AT NIGHT. "The last evening Jesse Smith spent with me he cautioned me not to talk and spent the whole time telling me what bank, book# to de stroy.” Miss Stinson said, "the man was In fear—he was In constant fear AP YEARS OF SAFE 09 INVESTMENT We pay 6% Dividends Inter est compounded Quarterly. ASSETS 121/2 MILLION Start a savings account with us today. Money invested In First Mortgages on Homes, BUILDING «** LOAN ASSOCIATION 18th and Harney Omaha Make Easter a Day of Music and Song HEARTS beat in rhythm to the strains of Easter’s enchanting music. One of our beautiful new pianos in either Grand, Upright or Player form, will bring perpetual joy, not only on Easter, but for a lifetime. 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He warned me not to go out at night." Referring to Mr. Daugherty's statement that ah* registered at a Cleveland hotel with A. L. Fink as man and wife. Miss Stinson said, Fink telephoned her February IS of "a big deal" she might be Interested In, and he made reservation* at the Hollenden for her. Miss Slinsoi* said she and Kink had dinner together In her room to talk over reorganization of a rubber com pany and also Teapot Dome and “the general oil situation." When told by Fink he had registered her under a fictitious name she said sh* was much Incensed. Declaring Fink had left her room about 11 o'clock. Miss Stinson said that the attorney general's charge that she had occupied the room with Fink or any other man was "utterly false." "I hate to abuse confidence," said Miss Stinson. "I arn doing It to show you that Jesse Smith was enmeshed and entangled." “Enmeshed and entangled by whom?" “By the man to whom he held his great loyalty,” Miss Stlnscp went on. “The man who Is using his great power to terrorize and Intimidate witnesses.” SAYS DAUGHERTY ENMESHED HUSBAND "Who Is the man?” Senator Aahurst put In. "Harry Daugherty," she said. In controlled but tearful language she said she was "being followed” and that her telephone conversations at home were "being listened to." Senator Jonea, republican, Washing ton, asked Miss Stinson for a specific "deal" in which Jess Smith had men tioned Mr. Daugherty’s name, and she said he had In connection with "whisky deals." He also told the "whole story of the Chicago conven tion.” In discussing w-hisky deals Smith told her specifically. Miss Stinson said, that It was "only through Mr. Daugh erty's Influence" that they could be "put through." Mia* Stinson as Id Jake Hamon told her of a "deal" at the Chicago con vention. Both Smith and Hamon told her, she said, llamon waa to have a cabinet position. , Daugherty got word. Miss Stinson said Smith told her, that "they" were "double crossing him,” and he (Daugh erty) went to the Chicago hotel con ference at 2 a. m. which agreed on Harding as the nominee and by "strong-arm"^ methods arranged to have Harding backed for the nomina tion. SAYS DAI’C.HERTY ABUSED HUSBAND. Smith told her. Miss Stinson said, he feared Mr. Daugherty himself. She told of an lhcident at "the shack" In Ohio when Mr. Daugherty "swore at and abused shamefully Je9s Smith. Smith Went to a hardware store and bought a gun, she said, and had de cided to kill himself. Senator Wheeler produced a tele gram received by Frank A. Vander llp from R. N. McFarland, an audi tor. saying Jess Smith's safe deposit box in Ohio contained securities worth between $200,000 and $300,000. Senator Wheeler remarked that Miss Stinson's account of the "deals" at the political convention were just a sidelight and took her back to the alleged "deals" in liquor. When pressed to tell about what "deals” Smith and Daugherty had on, the witness replied "there were so many she couldn't tell all.” She re peated that Smith had told her about the gathering of notables at the "lit tle green houae on K street,” men tioning Senators Watson and New of Indiana, as among those Smith told her had been there. She repeated often her charge that Smith was the "tool" of Daugherty and "lived In fear.” Miss Stinson reiterated Smith “was the enmeahed tool of this man, Harry Daugherty,” and before his suicide had given many manifestation! of tea r. IN MOHTAI. FFAK ON HIS I .AST TKII*. On hie last trip home, she said. 8mith was In mortal fear and added: "I'm afraid, they’re going to get me." Miss Stinson with tears streaming down her checks said Smith feared being "exposed" and also being shot or killed. On his last trip home, she said, he had destroyed all of his checks snd bank books and had "hi* house In or der" for his death. Describing %mith’s state of mind which led up to his death the witness raid: *• "The man was afraid—worrying about anything. At a hotel he’d look around and say,’’Who Is that man over there"’ In a lobby he'd get a seat with his back to the wall. He wanted to get home before dark. He was in fear—in mortal fear—fear for me, and fear fQr himself. "I understand thaP he meant the blame was being passed on to him. He had his house in order—" * "What do you mean?" Senator Jones put in. "He had hia business affairs straightened up, his bank books cleared: he told me to bum his papers." -y Depot Committee Meets in 10 Days George Brandels left for New Tork City lapt night. He will return In 10 days and will call a meeting of the executive committee on the new Union station project to appoint com mittees to further the plans. Rohrer Bark at Office. U. 8. Rohrer, prohibition director, whose resignation h#s been an nounced, was in hist office yesterday after a trip to Hastings, Neb. Man Flourishes Gun on Crowd Brandishing a revolver sbova Ids head, James Marshall, negro, »I2 North Twenty se< ond street, stationed himself In the middle of the lnterser tlon at Twenty fourth and Cuming streets Saturday morning at 7:15, while hundred# were changing cars on their way to work, and terrified the neigh borhood until pollc# arrived. He announced that the weapon he held had killed several persons, and was destined to slay dozens more. Pedestrian# scurried for shelter when he emphasized his remarks by firing two sliols In the air. Someone had taken the revolver away from him when police reached the spot. At Central station he was booked for Investigation as to his sanity —--- , •> Pastor to Preach Sermon by Radio On Tuesday evening at S Pev P, tV. Seesko, pastor of Immanuel Luth* eran church, Benson, will broadcast * lenten service over the radio fmrj the grain exchange. The choir w!B sing. Every Tuesday evening thereafte* one of the Lutheran pastors of thk Missouri synod in Omaha will broad cast a lenten service from the grail exchange. Workers’ Conference. Eight of the leaders in educationai work of the Baptist denomination will conduct a workers' conference al Immanuel Baptist church. Twenty fourth and Pinkney, March 23-2S Classes will begin at 3. Dinner will be served at the church at 6. Thess conferences will be open to everyone. - I s clhnmperm-Boldens . With more truth than the scales her mirror will tell how much she weighs. 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