Evening star., 1901-10-04
THE HEMP INQUIRY
Gen, Dudley on the Witness Stand
Today.
INVITATIONS OF BLACKHAIL
Committee impatient at Mr..
Hawks Course.
MR.. DE BUYS TESTIMONY

Frank NJ Atterholt Of Akron, Ohio was
the first witness examined today at the in
vestisation in progress before the Senate
military affairs committee of the charges
preferred against Col. II. o. S. Heistand
He said that Major Hawks had asked him
In New York to assist in fnanciering tho
hemp company and arranged a meeting
with Flint, Eddy & Co. The latter de-
clined to so into the matter on the ground
that coal cost too much in Manila and con-
ditions were too unsettled Col. Heistand
did not attend the meeting. Hawks and
witness looked Col. Heistand up, but the
latter seemed indifferent to the matter. in
timating that all his time was taken up
arranging for his departure from Paris Mr..
Atterholt was almost certain there had
been only one meeting at Flint, Eddy &
Co.'S, but there might have been two.
Mr.. AtterhoIt was questioned at length
by Mr. Hawks, and the latter was fire.
quently admonished not to interpolate side
remarks and opinions. Nothing further
was brought out, and Mr., Atterholt was
excused.
Frank W. Evans of SIS 10th street be sum-
nloned at once. Asked for his reason he
said he wanted to offer testimony in re-
buttal of some already given.
Gen. Dudley's Testimony.
General w. W. Dudley was then sworn.
II know Colonel Heistand,'' said witness,
.'and 1 have known Major Hawks
Asked what he knew about the hemp
matter, witness said all he knew about it
was In professional capacity. and after
Colonel Heistand and Mr.. Hawks had ex-
pressed Willingness for witness to tell all
he knew, the latter said Mr. Hawks first
came TO his firm, Dudley & Michener, ard
engaged it to prepare for the formation
of a hemp company. Colonel Heistand con-
-frmed the enga cement. and it was 9greed
the firm would take their pay in stock of
the proposed company.
He described the meeting at his office at
which Col Heistand Maj. Hawks and the
firm were present. 1t was agreed that
Maj Hawks should receive Is per cent of
the stock for promotion purposes. II was
understood that parties iE New Jersey had
agreed to furnish the means for the ma
chinery and equipment of the plant and
that it was distinctly understood that Col
Heistand would undertake to raise the
money for getting the site in the Philip
pines.
There was a general talk about pros
poets" said Gen. Dudley, 'and Col. Heis-
tand mentioned the names of some friends
of his who he said would buy stock. Among
these names l remember were those of Gen.
Corbin and Secretary Allen. Assistant Sec
retary Meiklejohn and Judge Boyd.
At a future meeting in witness office, at
which Hawks. Heistand and witness were
prospectus prepared from data Hawks had
furnished. and a stock subscription paper.
Witness said that at the first meeting the
propriety Of Col. Heistand's connection
with such enterprise was brought out
and both witness and his partner gave 1t
as their opinion that 1t would be perfectly
proper. Witness regarded the project as
a most promising one.
No .Suggestion of Giving Stock.
WAS there any suggestion Of giving per-
c-c IL
tor Harris.
be given to Major Hawks was to be divided
among the promoters, Major Hawks and
Colonel Heistand, and we were to be paid
from it for our professional services Had
there been any suggestion about dlsposiny
or stock to others without payment there
for we would have dropped the matter at
once
What suggestion, if any, was made at
the meeting that Colonel Heistand's official
connection with the government would be
advantageous TO the company" said S.n-
ator Burrows
Colonel Heistand was very emphatic in
dlsciaimtnS any intention to have his Off
c1al position brought into the matter" was
the reply. HE impressed upon us that he
was going into the company In his pri-
Tate capacity because he believed 1t would
be profitable"
The negotiations continued along the line
indicated. said witness, until some time in
July, 1899. when Major Hawks changed his
plans. When it became known that Colonel
Helstand was going to Paris, and after the
project was practically abandoned Hawks
came 10 witness office and said he was
going to make Heistand pay him for his
time and expenses He said his letter of
Introduction had been withdrawn and this
had 'backcapped' him In getting assist
ance In forming the company. Witness told
HAWKS that he perhaps should be paid his
expenses, but not for his time, and that he
twltness) would not assist him in "robbing
a friend
Hawks said Heistand had promised to nav
MS expenses and that he proposed to make
him do it. Hawks left witness' Office In an
angry mood. When Mr. MCINTYRE showed
witness the itemized bill for s1,SS5 Hawks
had presented witness said he denounced 1t
as an outrage and robbery. Witness part
ner informed him afterward that Maj.
Hawks had accepted 1850 Witness Thought
ne had concluded to act properly, and wit
ness joined In recommending Hawks ap-
pointment In the army to help him get his
bread and butter. The settlement was con-
Quoted by Mr.. Michener.
Nothing to Do With Settlement
Replying to Senator Burrows, Gen. Dud-
ley said the securing of Hawks appoint
ment had nothing to do with the settle
ment.
Was your recommendation a part of the
agreement of settlement with Mai Hawks?''
Most certainly not l believe IN millions
for defense. but not cent for blackmail."
Witness Sald tnat at HAWKS request he
went TO Gen. Corbin and asked why he had
concluded not to take stock in the company
and Gen. Corbin said he had determined not
10 go in any outside business. Witness
asked Gen Corbin IL there was anything
wrong in official having connection with
such a project. and Gen. Corbin said there
was certainly not, so long such indi-
vtdual did not Qse his official position in its
behalf
Witness also saw Meiklejohn, and he
said he didn't see why Corbin and Allen
wanted to change their minds about the
hemp company. it was promising en-
terprise and there nothing wrong in
any one going Into 1t, providing he did
not use his official powers in its behalf
Referring to the civil appointment of Mai.
Hawks. witness said 1t was in no way a
part Of the agreement leading up to the set
tlement. He and his partner had signed a
letter of recommendation the day after the
settlement was made.
Replying to Mr.. Needham, Gen. Dudley
said the signing of the recommendation was
not part of the fulfllment of an agree
ment made prior TO the settlement
Being the prospectus of the hemp COM
p2ny General Dudley identified it as hav-
Ing been prepared by himself Regarding