The Detroit times., 1909-01-19
FAIRBANKS MAY Be
IMPLICATED IN
LIBEL SUIT
vicE.PREslDENT is BELIEVED TO
BE LARGE sTockHoLpER IN
INDIANAPOLIS PAPER THAT
PUBLISHED CANAL STORY.

WASHINGTON, Jan ls.-Investiga-
ton was begun by the grand jury OF
The District OF Columbia this morning
in the libel suit instituted against the
Press Publishing company New York
World) and other newspaper publish
ers In connection with the negotia'
tons which resulted In the purchase
by the United States government or
the Panama canal. jeremiah Mat
thews. member OF the New York
Suns Washington staff. was the firs'
witness
Mr.. Matthews is former private
secretary To Vice President Fairbanks.
He Is not known To have had any con
nection with the publication of the
Worlds series of Panama articles.
which were republished in the Indian
apolis News
Charles w. Thompson, former chief
OF the Washington bureau OF the
World Will be put on the grill by the
grand jury during the afternoon.
District Attorney Baker and his as
sociates maintain an air of frigid re-
serve when approached about the OBJ
ject of The grand jury Investigations
and declined even To admit that the
Panama, canal matter is under probe.
Sporting Editor Mclaughlin and
Secretary Shaw, OF the Press Publish
ing company, who were summoned 10
appear this morning before the dis
trict grand jury. failed TO appear, re-
naming In New York 10 await the de-
cision OF Justice Ward this afternoon.
Ii Is believed that the summoning
OF members of the indianapolis News
STAFF and Washington newspaper cor
respondent Is Tor the purpose OF show
ing that Vice President Fairbanks is a
large stockholder in the News corpor-
alton and il SO. he, under the presi-
dents recent limitations in his spe-
cial Panama message 10 congress,
might become involved In the sensa-
tional case
ident.elect. reached Washington on a
summons TO appear before the grand
jury tomorrow morning
Mr.. Taft came on Geographic re-
quest from the district attorney. sent
TO Augusta. Ga. Mr.. Taft expressed
ignorance IS To what Information OF
value he could impart 10 the grand
jury in connection with the suit for
libel Ia, be instituted against the pa
pers publishing the articles which so
aroused the president
Douglas Robinson brother-in-law OF
President Roosevelt, arrived on sim.
liar summons, and. together with Mr..
Taft. went into conference with the
president
X. l.. Farnham, law partner OF Will
lam Nelson Cromwell. the latter fiscal
engineer of the Panama transfer deal.
is also in Washington on an unknown
mission.
Attorney General Bonaparte return
ed this, attesposnffom baltimore. and
declined, To- discuss the matter in ad-
vance Of the formal statement, which
h. has, promised within a day or two.
IL has been evident that members of
congress tnay inject question Of con
stitutionality into the entire matter.
Senators Rayner and Bailey, two OF
the constitutional authorities of the
senate, have declared that there is no
law under which the government may
properly. bring a suit for libel.
This, view is also held by Rep.
Rainey and Shirley, the former prom
ising that within few days he would
address ~ house on this phase OF
the question.
In this event the unprecedented &C
ton OF the president may devolve into
a three-cornered controversy between
the executive. the press and the leg
islatiye branch OF the government.