Omaha daily bee. (Omaha [Neb.]) 187?-1922, January 10, 1917, Image 1

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    The Omaha Daily Bee
All the store newt in
"The great market place"
VOL. XLVI. NO. 176.
u Train, it Httali
tUwi Stand, Bv
New Board, Following Reor
ganization, Decides Approxi
mately Million Dollars
Will Be Spent.
New Heads for County Hos
. pital, Riverview Home Are
Nearly one million dollars, about
the same amount as estimated at the
beginning of 1916, will be required to
keep the machinery of Douglas coun
ty going for another year, the county
commissioners decided at their meet
ing yesterday afternoon. As required
by law, the county board prepared the
estimate for 1917. The total was
$945,000, the estimates for the differ
ent funds being as follows:
General fund 500.000
Poor fund 125.000
Road fund 60.000
Bridge fund 150.000
Bond sinking fund 150.000
Soldiers' relief fund 10.000
Total '.. 945,O0O
Four Get the Axe.
Four appointees of the old board
got the axe when the reorganized
commissioners' body started opera
tions. A. E. Agee was appointed super
intendent of the court house, to take
effect April 1. He will succeed Joe
After March 1 W. L. Nichols will
be superintendent of the county hos
pital, the job at present being held by
E. R. Woods.
W. T. Hogau, who relinquished, by
request, his deputy sheriff's star when
Sheriff Clark stepped into Felix Mc-
Shane's shoes, was appointed admin
istrator of county charities. The
change will be made March 1. He is
to succeed J. M. Leidy.
John L. Sexton will be the superiii
tendent of Riverview detention home
avfter February 1. M. B. Thompson
is the present superintendent.
Committees For Year.
Committees for 1917 were named
as follows:
Judiciary McDonald, chairman;
Lynch and Compton.
Court House and Jail Lynch
chairman; O'Connor and Compton.
County Hospital Bedford, chair
man; Lynch and O'Connor.
Rieverview Home McDonald,
chairman; .Bedford and O Connor.
Charity O'Connor, chairman; Bed.
ford and McDonald.
Roads and Bridges Compton,
chairman; McDonald and Bedford.
O'Connor, chairman of the con
struction committee: Compton, chair
man of the committee of the whole.
At the morning session, Commis
sioner O'Connor was elected chair
man of the board.
Goods Roads Man Here.
James E. Wonders, division engi
neer of the federal good roads, Fifth
district, together with directors of the
Commercial club met with the board
in regard to the establishing of the
permanent headquarters of the gov
ernment good roads bureau in the
court house.
When the county commissioners
some time ago were notified of the
fact that Omaha had a chance to
land this goods roads plum, they were
qffuick to offer rooms in the court
house providing the bureau was estab
hshed here. Mr. Wonders, who is
from Washington, D. C, told the
board of the requirements of the bur
eau. He said that he and the de
partment he represented appreciated
the action of the county commission
crs in offering the free use of space
in the court house.
Resolutions, together with blue
prints of adequate space on the sec
ond and iourth floors ot the court
house, were ordered prepared by the
board and forwarded to Washington,
where the final plans for the locating
of the bureau here will be made.
The Weather
For Neferaaka Fair,
Temperatures at Omaha l'cwlerdaj.
Hours. e
2 p. m 49
3 p. m 6t
6 p. m
6 p. m
7 p. m.
8 P- m 47
Compartire Local Bevord.
1911. 19l. 1915. 19H.
Highest yeatr-rday... 63 48 44 32
Lowest yf sterday . . . . ' 34 31 m
Mean temperature. .. 44 3D 33 us
Precipitation 01 T ,0ft .00
Temperature and precipitation departures
from the normal:
Normal temperature 20
Kxneas for the day 24
Total exceee since March 1 26
Normal prerlpltatlon 03 Inch
IWk-lcncy for Iho day 03 Inch
Total rainfall since March 1 .... IS. 72 Inches
deficiency since. March 1 12.72lnches
Heflclency for cor. period, 1916. 2.03 Inches
Deficiency for cor. period, 191. 3.42 Inches
Reports From Htetiona at 1 F. M.
Station snd State Temp, Hla-h- Raln-
2 1 6 a. m
m. GlS A t a. m
Vjy f 9 a. m
rtggfjl 11 a. m
of Weather. 7 p. m. eat. fall.
I'heyenne. cloudy 88 40 t .00
liavenport, clear 42 4 .00
Denver, cloudy 60 64 .00
les Moines, clear 4S 4ft .so
Dodge City, clear 64 S .00
Iander, cloudy 40 44 .00
North riatte, clear 42 GK .00
Omaha, part cloudy... B0 63 .00
Pueblo, clear 54 64 .00
Itapld City, Know 32 60 T
Salt Lake City. pt. el'ety 22 28 , ,00
Manta J'e, clear 3S 44 .00
Hhertdan. cloudy 80 64 T
Hloux City, clear 44 64 .00
Valentine, clear. ...... . 36 (2 .00
indicates trmaa of precipitation.
U A. WELSH, Meteorologist
May b new envoy to the United
States to succeed Sir Cecil Spring
Rice as British ambassador to
Washington at an early date.
iff? i
1 I
Sheppard Prohibition Measure
Passes Upper House by
Vote of 55 to 52.
Washington, Jan. 9 The Sheppard
prohibition bill, forbidding the sale of
toxicating liquor in the District of
Columbia, but allowing small importa
tions for personal use, passed the
senate today, 55 to 52.
Neither the vote on the referen
dum amendment nor that on the pas
sage of the bill, was on party lines.
There were twenty-six democrats and
seventeen republicans voting for. the
referendum, and twenty-seven demo
crats and twenty-one republicans vot
ing against it. Most ot the republi
cans ot the so-canea progressive
group voted against it.
ior the bill itseii mere were
twenty-eight democrats and twenty-
even republican votes, with twenty-
two democrats and ten republicans
against it. All the progressives voted
for passage. . . , '
There was evident a spirit ot Bit
terness on the part of many senators
and a feeling of tension that was
only broken a few times when amend
ments were offered or suggestions
made that the senate and the galler
ies thought humorous.
The spectators, half their number
women, made only one real demon
stration, that of hearty approval when
the final vote was announced, twice
during the debate, however, the noise
became so great that President Pro
teniporc Saulsbury had to threaten
to clear the galleries.
Colonel Cody Drops
Into Deep Sleep; His
Vitality Remarkable
Denver, Jan. 9,-rThc remarkable vi
tality shown by Colonel William F.
Cody (Buffalo Bill), said by his physi
cian to be dying tonight, was a source
of amazement to his medical attend
ant and members of the family at the
bedside. According to Dr. J. R. East,
who lias been in constant attendance,
the noted scout gained strength dur
ing the day. although the heart action
was very weak and digestive functions
had ceased. Early tonight it was said
he had been sleeping quietly for two
Fight Upon Shannon
As Nonresident of State
(From a Staff Correspondent)
Lincoln, Jan. 9. (Special Tele
gram.) "Shannon, a resident of New
Jersey, will submit evidence wumn
a week A. Z. Walker."
This is the reading of a telegram
received by Speaker George Jackson
and several other members of the
legislature today from Omaha. It re
fers to John J. Shannon of the Doug
las county delegation and it is said
that the sender of the message claims
that he has evidence to show that
Shannon is a resident of New Jersey.
Shannon says he has lived iu Doug
las county for four years and attended
Crcighlou law school three years,
graduating last spring. As yet Speak
er Jackson docs not know what he
will do, but will wilhhold any com
ment until further evidence is furn
ished. Ginning of Cotton Shows
Increase Over Previous Year
Washington, Jan. 9. Cotton ginned
prior to January 1 amounted to 11.
045.225 running bales, including 188.-
052 round bales and 1 13.359 bales of j
Sea Island, the census bureau today
Last year, prior to January 1, gin
ning amounted to 10,636,778 bales,
or 96.1 per cent of the crop, including
105,785 round bales and 88,933 bales of
Sea Island.
Three Persons Injured When
Big Warehouse Collapses
Cleveland. O., Jan. 9. Three per
sons were badly injured, two fatally
and scores had narrow escapes to
day, when a portion of the five-story
warehouse of the Cleveland Storage
company collapsed without warning.
' & i
Douglas County Representa
tives Get Four Chairman
ships in General Distri
bution of Honors.
Norton of Polk Heads Com
mittee on Judiciary, Began
Four Douglas Men
Are House Chairmen
Richmond Cities and Towns.
Shannon Fees and Salaries.
Howard Labor.
Lovely Privileges and Elections:
(From a Staff Correspondent.)
Lincoln, Jan. 9. (Special.) Under
the assignment of standing commit
tees, as prepared" by the committee or
committees of the house and agreed
to by the house this afternoon, Doug
las county gets four chairmanships,
the honors going to Richmond as
chairman of the committee on cities
and towns, Shannon as chairman of
the committee on fees and salaries,
Howard on labor and Lovely on priv
ilges and elections.
Other Douglas assignments arc as
Nielsen is on the committee on
banks and claims:
Shannon Cities and towns, fees
and salaries.
Keegan Constitutional amend
ments, cities and towns.
Lovely Privileges and elections
and judiciary.
. Hopkins Insurance and corpora
tions. Richmond Cities and towns and
miscellaneous subjects.
Bulla Railroads and live stock and
Craddock Finance and fees and
Schneider Fish, and game and
manufactures and commerce.
Goodall Medical societies and
Howard Labor.
Jelen Privileges and elections and
revenue and taxation.
List of Chairmen.
The chairmanships are allotted as
follows. ...
Employes and expenditures, Hoff-
meister; agriculture, Meysenburg;
banks and banking. Murtey; cities and
towns, Richmond; claims, Fries; con
stitutional amendments, Thomas; cor
porations, Trumble; education, Ollis;
irrigation, McAllister; engrossed and
enrolled bills, Naylor; fees and sal
aries, Shannon; finance, ways and
means, Riescluck; hsh and culture,
Gormley; insurance, Swanson; judic
iary, Norton; labor, Howard; live
stock, Dau; manufactures and com
merce, Neff; medical societies, Hoff-
meister; miscellaneous subjects. Da-
foe; privileges and elections, Lovely;
railroads, Regan; revenue and taxa
tion, Osterman; roads and bridges,
Christ Anderson; rules, Jackson;
school lands and funds, Labounty;
state institutions, Fuller; special com
mittee on prohibition legislation, Nor
ton. Weiss Assistant Clerk.
House democrats held a caucus at
1:30 this afternoon at the Lindcll hotel
and elected Walter Weiss of Hebron
first assistant clerk of the house to
fill the vacancy caused by the resig
nation of Lee Metcalfe to accept the
private secretaryship to the governor,
The democrats hastened to the state
house and at once began business, first
by adopting the report of the coni
mitteee on committees, putting over
one or two resolutions for a day under
the rules and then adjourning to meet
tomorrow morning at 10 o'clock.
The vote on first assistant clerk in
the caucus was: Walter Weiss, 35
votes; E. E. E. Ridgway of Omaha.
14, and 2 votes for W. O. Worrell of
In the senate the precedent set by
Lieutenant Governor Pearson two
years ago of delivering an inaugural
address was followed by Lieutenant
Governor Howard, who appeared in
his usual happy frame of mind and a
Prince Albert coat.
Wouldn't Pass Hat.
Short speeches were made by Helen
Bourlnois in behalf of the French sol
diers and by Thomas Majors, who
was invited to the chair by the lieu
tenant governor. Mrs. Bourlnois tried
to prevail upon Secretary Gene Wal
rath to pass the hat, but the secretary
told her it would do no good as none
of the senators had yet drawn any
salary, so she departed, but may re
turn a little later when the picking is
Address by Howard.
The senate adjourned until 10
o'clock tomorrow, after listening to
the address of Lieutenant Governor
Howard, which was as follows:
"Senators of Nebraska, I greet you
in the bond of a common service, in
the spirit of pure friendship, in the
desire and in the hope that our joint
labors may work the welfare of our
commonwealth and all of our fellow
citizens therein.
Pleads for Friendship.
"While neither the law nor the
precedents command me to offer to
you any manner of message or of
admonition, both the law of gentility
and the precedents established by
many of the men of mark who have
preceded me in this chair command
and impel me to now plead for your
respect and lor your lrtrndshin, with
the earnest hope that in the largeness
of your erudition you may be good to
be my mentors when my paucity of
knowledge shall appear, and in the
wealth of your generosity be kind to
(Continued on Pairs Two, Column live.)
Charles H. Sabin, Trust Com
pany Head of New York, Has
Advance Tip of Informa
tion About Peace Note.
Told Financial Writers His
Duty to Suggest They Sug
gest to Country Par
leys Near.
Washington, Jan. 9. Charles II.
Sabin, president of the Guaranty Trust
company of New Ycrk, went on the
stand at the opening of the leak in
quiry this afternoon. He testified he
was in no was connected with the
Stock exchange and said he did not
know in what connection he was
"It has been said," Representative
Chiperlield told him, "that you called
the financial writers of New York to
your bank and told them you felt if
your duty to suggest to the country
that there were to be negotiations for
peace and you felt they would affect
the price of stocks. If there was any
thing of that kind suggested please
outline it."
"I shall be glad to do so," said Mr.
Sabin. "In October I said to news
paper men that 1 had information
that the German government had
asked the president to approach the
allies on the subject of peace."
"Did you make any statement in
this connection as to the effect that it
might have on stocks?"
Talked to One Man.
"I talked to only one man on that.
He asked me what effect it would
have. I did not venture an opinion."
Evidently you were in possession
of some information not generally
known." .
"1 think I was. He added that the
source of his information was in no
way connected with the United States
"Would you object to stating tor
what purpose you made this state
ment f
"Purely my personal judgment that
it should be known," Sabin replied.
Sabin was excused from telling the
source of his information about the
German peace proposal because he
said it had been given to mm in conti
nence by some one absolutely without
connection- with the government of
the United States. He was releases
by the committee from further at.
Denies Advance Information.
Bernard Baruch of New York de
nied that he had any advance infor
mation regarding President Wilson's
peace note. He said
I had no information of any na
ture from anyone connected directly
or indirectly with the administration
or any other sources in connection
with the president's peace note or
Von Bethmann-Hollweg's speech until
I read of them in the newspapers."
Baruch was named by the mysteri
ous "A Curtis" in a letter to Repre
sentative Wood of Indiana as having
profited largely by leak information
on the note by selling short on United
States Steel.
General Denial by Kahn.
Otto H. Kahn of Kuhn, Loeb &
Co., New York, followed and read
into the record a statement denying
all connection with any leak. He
was excused.
Allen Curtis, Boston, followed Mr.
Kahn and denied authorship of the
"A. Curtis" letter upon which Rep
resentative Wood based his charges.
He wrote his name for the commit
tee to show it was not the signature
on the letter.
Bernard Baruch called, said he
first learned of the president's peace
note on the morning that it was is
sued. At the time of the market
flurry, he said, he had been buying
United States Steel. ,
Cause of the Flourry. '
"The thing that affected the mar
ket, said Baruch, was first Von
Bcthmann Hollweg's peace note
from Germany. That was followed
by Lloyd George's speech in Parlia
ment, which at the very outset
tended to strengthen the market De
cember 19.
"The first cable bulletins said that
Lloyd George refused to consider
neace at all. Later, as the full speech
came through, Lloyd George went on
to say But, and left the door open
to possible peace negotiations. That
caused a decline in the market.
Notice to the World.
"It was a notice to the world that
there was no final bar to peace, and,
whether it was coming at once or
not, we had to turn our minds to its
effect on the market. Bearing this
situation before me, 1 sold the market
short Tuesday before the speech when
Lloyd George uttered the word but.'
"The next day I bought a little over
one-third of the stocks 1 was short on,
or more than one-half of the stocks
I had sold on the Lloyd George
"December 20, the day after the
Lloyd George speech, 1 bought a
large amount, continuing to buy to
cover my shorts, and I also bought
some long. I knew nothing of the
president's note until it was published
on the morning of December 21."
Rev. Mr. Fouse Comes Out
In Favor of Birth Control
Denver, Colo., Jan. 9. Rev. David
H. Fouse, Denver minister, address
ing the Ben Franklin club last night,
made a plea for birth control, on
moral and racial improvement
Lack of general knowledge of sex.
the preacher said, was responsible for
excesses that were "one of the most
damning sins that curse the community."
Slayer of Stanford White Is
Charged With Flogging 19-Year-Old
Fred Gump
Until Blood Flows.
Accused Man Cannot Be Found,
But Alleged Accomplice
Is Arrested.
New York, Jan. 9. Harry K. Thaw;
who was legally releasrd fifteen
months ago from an asylum for the
insane where he was sent after he
killed Stanford White, was today in
dicted here, charged with kidnaping
Kied Gump, jr., of Kansas City, Mo.,
a youth of 19 years, and assaulting
him with a whip.
With li tin was indicted on the kid
naping charge a man described as
George F. O'Bymes and supposed to
have been employed by Thaw as a
bodyguard. Word was received that
O'Byrnes had been arrested in Phila
delphia and detectives were looking
for Thaw there tonight.
Walsh Filed Complaint,
The complaint was placed against
Thaw with District Attorney Swann
by Frank P. Walsh, former chairman
of the United States Industrial Rela
tions commission, who, appearing as
Gump's counsel, alleges that Thaw
enticed the youth to his rooms at a
hotel here Christmas night and there
beat him with two whips three dif
ferent times until he bled and became
almost unconscious.
Testimony describing the whipping
of voting girls by 1 haw made up some
of the most sensational chapters in the
numerous court actions on the ques
tion of Thaw's sanity after his acquit
tal of the murder of White on the
grounds of insanity and his commit
ment to the Matteawan state hospital
for the criminal insane. Alienists for
the state testified that whipping was
a mania with Thaw.
Met Boy in California.
After several years' litigation at a
cost of several hundred thousand
dollars to New York state and to
Thaw and in Which bitter partisanship
was engendered whether he was justly
or unjustly kept iu Matteawan be wan
declared sane ny a jury in naDeas
corpus proceedings in the latter part
of 1915 and released by a court order.
According to the information laid
before the district attorney, it was to
ward the end of 1915 that Thaw first
met and became interested in Gump.
He had gone to California after his
release here to attend the Panama
Pacific exposition at San Francisco
and later went to the southern part of
the state, spending some time at Long
Beach, Cal., where he met Gump at
an ice cream parlor.
Gump's mother and his father, Fred
Gump, who is said to be a manufac
turer of leather trunks in Kansas City,
were with the boy at Long Beach and
made no objection to their son's ac
quaintanceship with Thaw, the district
attorney was informed, apparently
"sharing popular opinion that he had
been vindicated."
Corresponds With Gump.
After Thaw left California he con
tinued to correspond with Gump, ac
cording to Mr. Walsh. These letters,
Mr. Walsn said, warned ine ooy not
to show them to any one, but he let
his mother read them and she an
swered them for him. The exchange
of letters continued through 1916,
Thaw expressing a great interest in
the boy's future and a wish to pay for
his education abroad.
Although proffers of money by
Thaw were refused the boy at last
came on to New York and went to
Thaw's hotel, where it is alleged the
assault took place.
Arrested as Thaw Aide.
Philadelphia, Jan. 9. Charged with
aiding and abetting Harry K. Thaw
in an alleged assault upon Fred
Gump.jr., in New XorM and witn
attempted kidnaping, a man said to
be George F. O'Byrnes and described
as Thaw's bodyguard, was arrested
at a railroad station here today as
he was about to leave the city. He
was held pending requsition from the
New York authorities.
While admitting, according to the
detectives, that he is acquainted with
Thaw, and that he had been with the
Pittsburghcr in this city until last
night, the prisoner denied that he is
O'Byrnes or that he s the man
wanted in New York. He declared
that he had absolutely no knowledge
of the charges upon which he was
taken into custody and said that he
had been with Thaw only as a friend.
He said his name was Oliver Browar.
that he was a Pittsburgh salesman
and that he had known Thaw for
some time.
Thinks He Is Man.
Barney Foold, the New York de
tective who assisted in making the
arrest, however, stated tonight that
the description he had of O Hyrnes
fits the prisoner in all details and
that he is convinced he is the man
wanted. In support of this belief
Flood said that the police had found
in the prisoner's pockets a telegram
dated December 23, from the author
ities of Long Beach, cal., replying to
a message alleged to have been sent
by Thaw seeking information as to
the wherabouts of the Gump boy.
Both his attorney and a private
detective who said he had been en
gaged to act as a private bodyguard
for the Pittsburgher while he was
here, said that Thaw had left the
city last night for Washington and
that he intended to leave the capital
tonight for Pittsburgh. Efforts to
locate him here so far have have
proved futile.
Of Taxas, chairman of tha house
rules committee, who is conduct
ing tha inquiry into tha "leak"
scandal by which it is allsfed cer
tain Wall Street operators profited
from advance information con
cerning the recent German peace
s in Directorates Are
ced at Several Finan
. 1 Institutions.
The Omaha National bank at its
annual meeting yesterday, transferred
$500,000 from the undivided profits to
the surplus, thus giving the bank a
surplus of $1,000,000, as well as a
capital of $1,000,000, which it has had
for some time. At the same time one
of the vice presidents, W. H. Bucholz,
was designated as first vice president,
a designation which is new in this
bank, as in past years vice presidents
have not been designated as firstst sec
onds, etc. Joseph H. Millard was re
elected president. Ward M. Burgess,
J. DeForrcst Richards and B. A. Wil
cox were made vice presidents. Mr.
Richards was formerly cashier, and
Mr. Wilcox was assistant cashier.
Frank Boyd, formerly assistant
cashier, was made cashier. Ezra Mil
lard and Otis Alvison, were re-elected
assistant cashiers. Randall K. Brown
of the Hill Coal company, and chair
man of the executive committee of the
Commercial club., was elected a di
rector, filling the vacancy caused by
the death of William Wallace.
President W. T. Auld of the Corn
Exchange National bank is to take a
less active nart in the affairs of the
bank. This he does under the doc
tor's orders in order to conserve his
health, as it is found he must avoid
the rigorous winter climate in Ne
braska. He was therefore made chair
man of the board of directors at the
annual meeting of the board.
H. S. Clarke Promoted.
H. S. Clarke, jr., becomes president,
and E. F. Folda, some years ago vice
president of the Stock Yards National
bank, and more recently a director in
the Nebraska National, became vice
president of the Corn Exchange. L. H.
Tate was made cashier, and O. A. Hel
quist, assistant cashier. The old board
of directors was re-elected, with the
addition, of E. I'. Folda.
Mr. Clarke, formerly vice president,
came to the bank with Mr. Auld five
years ago, when the two acquired a
lame block of the stock. The bank
has shown an increase of over 100 per
cent in deposits during their manage
Mr. Folda, after traveling for four
years, says he is glad to get back into
active banking again. He now comes
to the assistance of the new president
, it: .t.. frn.rD M
in nanuiuiK INC uaiir. o auaua.
Folda is very well known among Ne
braska bankers as a country banker,
and well known also through his con
nections with the Stock Yards Na
tional bank of south Omaha.
At the United States National bank
R. P. Morstnan, former cashier, be
came vice president and cashier.
Charley K Bruikman, formerly as
sistant manager of the credit depart
ment, became assistant cashier. 1. f.
Murphy and O. Williams became as
sistant cashier and auditor, respec
tively. The directorate remained un
changed. No Changes at First.
The First National made no changes
in either officers or directors.
At the Nebraska National h. r.
Folda withdrew from the directorate
to enter the Corn Exchange. John
W. Agncw and Epes Corey became
new directors.
At the Merchants National the place
of the late George Joslyn on the di
rectorate remains unfilled. Fred P.
Hamilton, who was cashier, became
second vice president. B. H. Meile,
who was assistant cashier, became
At the Stock Yards National H. C.
Miller was chosen director, in place of
I. Ocden Armour.
The Live Stock National decided to
double its capital, making the figure
flic Packers National .made no
change, with the exception of the ad
dition of another assistant cashier, W
E. I'hilbv.
No changes were made in the State
Bank of Omaha.
New Business Developes,
The First National has developed
some new business during its short
existance in the new quarters in the
new building at bixtecnth and far
nam streets. The very first nay in
the new location the bank received
over 100 new accounts. Half of them
were savings accounts. They range
in amounts from $2 to $25,000.
C. F. Junod and Augustus Kountze
who were here for the reception and
formal opening of the bank in the
new quarters, returned last night to
their homes in New York.
Lawson Tells Congressional
Committee that Men High 1
Up Knew of Contents of
President's Note.
At Proper Time and Before
Proper Parties Will Gtve
Desired Information.
Washington, Jan. 9. The leak in
vestigation seemed to make its first
progress toward some definite point
today when Thomas W. Lawson,
after much questioning and urging,
promised that, should the house order
a formal inquiry, he would disclose
the names of the cabinet officer, the .
senator and the New York broker,
who, he said, a congressman told him,
were engaged in a stock gambling
partnership and had profited through
advance information of President Wil
son's peace note.
To disclose the names to the house
rules committee, Lawson repeatedly
refused, even when confronted with
three separate resolutions to put him
in contampt, for two reasonsN "
First He contended tne rules com
mittee had no power to conduct a
thorough investigation, including one
of the stock exchange such as he
urged, and he would not be assured
n! an investigation if he disclosed the
Prefers the Punishment.
Second Lawson said he considered
that disclosure of the names at this
time would have' a disastrous effect
for the country and the administra
tion. In preference to that he pre- -
(erred being punished for contempt -
of congress. ,
Congressmen questioned, cross-examined
and pleaded in vain with the
Boston financier to give tne names ot
the informing congressman, the cab
inet officer or the senator.
I cannot name the cabinet officer
to whom I have referred without
mentioning another official of higher
position," said Lawson, "and that
would be more serious than if I cast
a cloud over the entire congress and
was sent to jail myself for life.
. No Definite Statement.
All through hit testimony Lawson
hinted .at names higher up, but no
amount of questioning would bring
him down to a definite statement.
When the committee recessed for
lunch the members teemcd' to think
thev had gone as far as they could
with Lawson at this stage, so they
excused him as a witness tempo
rarily, but told him to remain within
jurisdiction of the committee until
the resolutions putting mm in con
tempt are disposed of.
At today's hearing Lawson frankly
acknowledged he . was more t inter
ested in a congressional investiga
tion of the New York Stock ex
change which would result in rem
edial legislation than he was in in
vestigating the leak in President
Wilson's peace note.
Would Disclose Winnings.
In the course of the discussion of
the unnamed trio of whom the con
gressman is said to have spoken Law
son declared he not only would give
a special committee their names, but
also the amounts of money they were
supposed to have made from stock
transactions. Lawson promised to
furnish competent testimony.
"Will you give their names?" Chair
man Henry asked. '
"I will go further, said Lawson. '1
will name amounts of money; great
amounts of money. More than $1,
000 000."
Representative Garrett then de
manded that Lawson give the
names and when he reiterated his re
fusal Garrett introduced a motion to
compel him to answer. It was laid
aside for action with the three pend
ing contempt resolutions.
The line of examination then turned
to the stock exchange and Lawson's
own operations, particularly during
the month of December, jyio, during
which the leak occurred.
Lawson said that bad as the break
on the market, was when the leak
came, it probably would have been
worse if there had been no leak. -
My opinion is that the break was
weeks in coming and that the leak
gave certain operators an opportunity
to prepare tor tne crasn, said law
Knew What to Do. v
! "They were left in a position to
know just what to do. If the market
had broken without that preparation
made possible by the leak, the break
would have been much more disas
trous to the country. We didn't have
any bank or stock exchange failures
accompanying this crash. Sd I think
the leak really was a good thing in
one way."
Representative Chiperfield ques
tioned Lawson, seeking to show that
he was a beneficiary of the falling
Lawson denied that he was con
nected with any stock brokerage firm,
but admitted that he operated occa
sionally as an individual through brok
ers. "My purpose," said Chiperfield, "Is
to show that Lawson, who says he
was not the recipient of any leak, dealt
largely on the Stock exchange during
this break. I want to show np his
transactions which were conducted in
dependently of a leak. If he can oper
ate successfully withont a leak, then
I condemn the effort being made here
to indict other men for operating suc
cessfully on that same market.
"Give us the names of your brok
ers," he demanded.
After a wrangle Law sou said one
(Continued on I'sse Two, Column Ons