The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1913-07-03

outstanding securities used to pay for the
Oregon Short Line and Oregon Railway
and Navigation Company. but no sooner
had he descended from the stand than
Paul D. Cravath, attorney for the Union
Pacific. read into the record hastily
written statement utterly denying the
facts, and Incorporating his characterize
ton Of Mr.. Lamar as a Tar"
The only time Lawson showed the
slightest animation during the whole
time he was on the stand was when he
attacked Attorney General McReynolds
for his manner Of handling the Union
Pacific dissolution case. He accused him
Of violating the explicit orders of Presi-
dent Wilson, and of being negligent Of
the public business by sending ian ONCE
boy" a Mr.. Todd. to whom they gave
the title Of special assistant to the at
torney general, for the purpose of rep
resenting the government in the court at
St Paul, against the greatest legal talent
in the world, these gentlemen here" wav-
ing toward Mr.. Cravath.
Denial by Cravath.
Immediately after the conclusion Of
Lamar's remarkable statement, Paul ID.
Cravath, of counsel for the Union Pa
cific, asked to be sworn. The request
was granted. and he made the following
statement:
in view of the statement regarding
the accounts of the Union Pacific, Rail-
road Company which David Lamar has
gone ont of his way to make before this
committee and inasmuch as persons not
familiar with David Lamar's character
who may read this statement in the
newspapers may be misled thereby.
deem it my duty to make the following
statement for the record Of the commit
tee:
For several days persons connected
with the Union Pacific Railroad Company
had been informed that an effort was be-
ing made to circulate and secure the pub
LEGATION in the newspapers Of a bear at
tack in the form of a prepared story
about an alleged Justification Of the aC-
counts of the Union Pacific Company in
volving seventy or eight million dollars Of
its surplus. We were informed in sub
stance that this story was so palpably
false and scandalous and so plainly Of
fered for an improper purpose that the
newspapers would not publish It. Infor-
nation then came that the story soon
would be made public in such a way that
the newspapers would have to publish 1t.
II now appears that the medium for the
publication of this story was to be this
man-D. Lamar-who has confessed him.
self to be the most unconscionable of
liars"
Author of Resolution.
An interesting though not entirely I'M
expected statement made by Lamar in
his impersonation OF Palmer over the
phone to Ledyard was that Lamar had
written the resolution Gazing Ior an IN
vestigation OF the Steel Trust which
Representative Stanley. with a few
minor amendments. had introduced in
the House. This resolution had been
given to Henry b. Martin. of antitrust
league fame, who was so scathingly de-
nounced by Representative Martin w.
Littleton. in a speech on the floor OF
the House last Congress. Martin was
present yesterday and is under subpoena
TO appear today and tell what he knows
of the events leading up to the framing
of that resolution.
According to Ledyard's testimony.
Lauterbach told him that Lamar had
consulted him Lauterbach), and that he
had tried to dissuade Lamar. but un-
successfully. Then he said, out OF his
regard for Mr.. Morgan, he had called on
the financier and offered his services IN
heading Lamar on. Morgan refused to
discuss the case, he said.
The committee last night decided to
recall Edward Lauterbach and to de-
tain Lamar. 1t is probable that both
OF the men will be on the stand today
Lamar's cross-examination had not con-
cluded when the committee adjourned
last night.
Mr.. Ledyard prefaces his statement by
saying that he was for years an init
mate friend of Mr.. Morgan and the MEM
bers of his firm, and that through this
@r,1 l-t-, l.
happened. He said that two years ago
Lamar had told Francis Lynde Stetson.
counsel for Mr.. Morgan. that he, Lamar,
could control the Stanley steel investi-
cation. Such advances had been repealed,
Mr.. Ledyard declared.
He said that he had known that some
time later a man representing himself
to be Representative Daniel Riordan
had called up Charles Steele, of the Nor
gan firm. and offered to have the Stanley
stopped IL the interests"
would cooperate with the Democratic
conservatives. He asked Steele to see
]. Sergeant Cram. a member of the New
York public service commission. and .
Democratic politician. to verif~ Ais. the
alleged Riordan's, statements. Steele
called UP Cram and the lat er said he
had no idea what he (Steele) was talking
about.
About this time Lauterbach went t,
members of the Morgan firm with offers
of assistance He was turned down. Their
some one impersonating Cram called up
George F. Baker, chairman Of the First
National Bank of New York, and the
most powerful financial figure in the
since the death of ]. p. Nor
gan. This man wanted to talk to Baker
along the same lines. Baker referred
him to Ledyard. Whoever II was. SUI
posedly Lamar, arranged that Ledyard
make an appointment with the real Cram.
though the latter in making the appoint
ment did not know the purpose. This
appointment Cram was unable to keep.
This was last January. Then the inter-
views over the phone with the false
Palmer Gamar) and the personal inter-
views with Edward Lauterbach began
with one February 4.
Statement of Lcdyard.
The statement outlining his various
telephone conversations in connection
with Lamar's operations. read to the
by Mr.. Ledyard. was. in part. |
as follows:
''On February had a conversation |
over the telephone with Congressman
p He asked me if 1 knew who he |
was from that description, and upon re- |
plying in the negative, he said: II add |
that 1 represent one of the Eastern dis |
i,fe nf b.