The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-07-09
SENATE WAS DECEIVED.
Report on the Southern Methodist
Book Concern Claim Scandal.

Book Concern Claim Scandal.
| WASHINGTON, July S.-The Senate COM
mittee on claims to-day made its report on
the investigation made by the committee
| into the payment of the claim of the Metho-
dist Book Concern and the payment to
| Major E. b. Stahlman of 500, 500 as an
| agent in getting the claim through. The
| committee finds that the Senate de-
| ceived by the representations of Mr.. Stahl-
man and Messrs. Barbee and Smith, the
book agents, but relieves the Methodist
| Church South, as such, from blame in the
matter. 1t is also found that no senator or
| member of Congress received any money In
| connection with the claim.
The testimony taken was also made pub
| lie. The principal witnesses were Mr.. Stahl-
man and Mr.. Barbee Mr.. Stahlman said he
| had been giving more less attention to
| the claim since 1882, but that the contract
| for So per cent. had been made in 1895. Mr..
| Stahlman said he had cautioned the book
agents against making the contract public,
| because" he continued IF 1 went to
| Washington as their representative for a
fee of any amount 1 would be bounded day
| in and day out and that I would probably
fall into the hands of some of the vultures
who hang around the Capitol, which would
involve the passage of the measure in ques-
tionable methods. They agreed to that. 1
| had promised that / would let no man know
anything about it, for the reason which
| have stated, because if the fact had been
| known l do not believe the question could
| have been considered ON it's merits. l be-
| lieve that it would have been considered
| with prejudice against the claim.
Mr.. Stahlman said he had told Senator
| Pasco that he had no contracts with the
| book committee. II told no falsehood" he
said. Il concealed some facts. 1 am free to
say that Senator Pasco had a right to be-
| lieve that there was no contract of any
| kind. While / was guarded, l was exact in
| what said, and knew that told no false
| hood in saying 1t"
| Senator Fairbanks-Did Senator Pasco
not ask you the direct question as to wheth-
er you We're to get percentage of the claim
Mr.. stahlman-If he did, did not answer
| contract with the committees agents; that
every dollar of the money would go into
the treasury s t and told the d truth tn nt,o
| the book agents?
| Mr.. Stahlman-Because 1 did not have a
| contract with them. My contract was with
| the book committee.
Senator Fairbanks-Senator Pasco was
| not asking whether you had contract with
he?
Mr. Stahlman-I do not know that he
| asked that question.
Senator Fairbanks-Did he ask you
whether or not you had a contingent fee in
| this claim?
| Mr.. Stahlman-He did not / will say this,
| though, for Senator Pasco, he had a right
to assume that contract existed.
The Chairman-And that no tee was to be
paid?
Mr.. Stahlman--Yes he said he had also
| allowed Senators Bacon, Clay and Lindsay
to be received. He had told Senator Turley
| subsequent to the passage of the bill that
the money was all going into the church
| pleased with it afterwards"
| In reply to a question from Senator Teller
| as to whether members of the book COM
| share of the profits MIR. Stahlman replied in
the negative, also stating that he had paid
no money to attorneys with the intention te
| Its reaching Congress.
Mr.. Stahlman said he was willing to be
held entirely responsible, adding Even if
Stahlman be made the martyr. Peter denied
his Lord three times. He told a story. 1
do not claim to be better than Peter. If
Peter was forgiven and if the church was
founded upon the rock of Peter Stahlman
can be forgiven for the crime he has COM
| mitted."
Mr.. Stahlman furnished the committee a
list of persons to whom he had paid the
money received as fee, but only the items
of payment in connection with the prosecu-
| ton OF the claim were made public. These
were: To Captain Baker, $4,000. and to
Samuel Donaldson, 50 200, assistant attorney
| in the case. Mr. Stahlman stated explicitly
more than once that he had not paid a cent
of the money to any senator or member or
to any one connected with the management
| of the affairs of the M r. Church South.
Mr.. Barbee, in his explanation of the re-
ply of himself and Mr.. Smith to Senator
Pasco's telegram, said: Senator Pasco
| conveyed to us perspicuously that you did
not want any information, but that he asked
| us to deny rumor to the effect that we
were to pay 40 per cent of the claim: 1t
| pounded to us in such way as to elicit
a categorical answer in the form of o
denial, and we answered accordingly. We
| stated the exact fact that the report was
| untrue that we were paying 40 per cent
Replying to this. Senator Pasco said that
| his letter called for full statement of the
case, and called attention to the fact
| that no further explanation had been made
| in response to Senator Bates dispatch ask
| ing for information as to the 40 per cent.
! contract, contracts at any other rates
To this Mr.. Barbee said they had not in
| tended to reply to Mr.. Bate at all He had,
| he said, understood that both Bate and
| Pasco wers the friends of the book agents
and and the supporters OF the claim. He
| right to inquire what litigant was paying
| an attorney. He did not, he said, intend to
| convey to the Senate the impression that
| there was no payment to be made to any
claim agent.
The report of the committee says: 1.-The
| testimony before the committee clearly
| shows that no part of the sum received by
| Stahlman was paid to Messrs. Barbee and
| Smith for their personal use or to any SEN
ator or member of Congress or to any other
| person for corrupt purposes"
| The report also says that Mr.. Stahiman
| in conversations. and correspondence with
| senators and representatives concealed from
| them all knowledge of the existence of a
| contract, withheld from them all informa-
| ton regarding it and purposely and will
! fully, by misleading, if not by false. state
ments, impressed them with the belief that
| Mr.. Stahlman was not acting as the agent
| or attorney of the book agents with the
| expectation of pecuniary remuneration for
| his services, but was a personal friend of
| the book agents and a member of the
| church.
Referring to the assurance received from
Messrs. Barbee and Smith the committee
| says: mo candid person who examines
this correspondence can reach any other
conclusion than that the subject of this
inquiry was the existence OF such q con-
tract and not the percentage that an at
torney was to receive. The replies OF the
book agents to this letter and telegram
make it manifest that the policy of silence
with reference to the contract was main
tanned to the end. even to the extent of
withholding the truth and misleading and
deceiving those who made an earnest EFFORT
to obtain it..
With reference to the church itself the
committee sayE: THE committee deems il
proper to state that no censure should rest