New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-08-17
Ex-Chief of House Pages Re-
peats Charges Against Rep
reSentatiVe MCDermOtt.
SAYS HE WAS PAID $500
One Money Lender Admits Fund
Was Raised to Fight Loan
Shark" Bill, but Won't
Accuse McDermo tt.
[From The Tribune Bureau. ]

bornly TO the story that Representative
McDermott, an Illinois Democrat. had
told him that he received $500 from
"pawnbrokers' lobby" in the District OF
Columbia. Isaac II. McMichael. once
McDermott protege and formerly chief
page of the House underwent severe
cross examination to-day before the
House lobby investigating committee.
Two Washington pawnbrokers denied
the existence Of a lobby one OF them ad-
mitted that three pawnbrokers had raised
approximately $500 for the employment
OF attorneys 10 fight loan shark bill
In the sd Congress, but violent denial
was made Of the indirect charge that an
Objectionable lobby existed. or that Rep
resentative McDermott had rendered ser
vices
James Easby-Smith, attorney for MT
McDermott. told the committee that he
would try 10 impeach the testimony oil
McMichaeI and that he expected to show
that McMichael was now under contract
at So a week ito corroborate the Null
hall confession" regarding the lobby OF
the National Association of Manufact-
urers.
Attacking the credibility Of this wit
ness" said the attorney, II expect 10
show through the testimony Of one Allen
Irvine. OF this city. that McMichael toio
him he was under contract 10 corroborate
Mulhau's statements This employment
was obtained through or in connection
with Colonel Mulhall, formerly Of the
National Association of Manufacturers.
McMichael Explains Contract.
Il en- out OF the government service.
McMichael said, "and have got to make
living. have made an agreement to
write a story entitled Twenty Years as
House Employe' for The New Aorh
World This contract is not enectlVe
until the investigation is ended. and am
drawing an allowance OF $50 week on
the contract now. The statement that l
have agreed to back up Colonel Mulhal
story is absolutely false. There is no
agreement OF this kind
The efforts Of McDermott's attorney to
shake McMichaers story that the Illinois
member had admitted being in the employ
Of the pawnbrokers' lobby were unavail-
ing. Asked to fix the date of his alleged
conversation with his former friend NC
Michael said
ct was soon after the loan shark bill
passed. about year ago. ! guess. SAID
TO McDermott: Well. Mac, the bill has
passed carrying l per cent interest rate
McDermott replied that I got mine
81 asked McDermott how much he re-
ceived and he said about $500 He
made that statement TO me several times.
We laughed over the matter. McDermott
and were always talking about money.
He always referred TO money as dough
What did McDermott do for this
money. il he received it," asked Mr..
Easby-Smith.
ITO be frank. / don't think he did any
thing for IT," said the witness.
Discussed Loan Shark" Bill.
McNIichael adhered 10 his statement
that he was present at conference In
New York, some time in 1911, when MI
McDermott and George d. Horning,
Washington pawnbroker, had discussed
plans for killing the loan shark bill. He
said the two retired 20 a corner and
"mumbed" for some time.
The two pawnbrokers. Abraham Burn
slime and Emanuel Steinem. were non
productive witnesses. Mr.. Steinem said
that he mad been asked by three fellow
pawnbrokers TO subscribe 20 n fund 10
employ counsel TO argue against the loan
shark bill while II was pending before
House Committee, but he had firmly de-
clned.
81 told them II the pawnbrokers were
exempted from the bill and not classed
as loan sharks ] might pay something
later" the witness testified.
"In other words. you wanted insurance
while they were paying on contingency
suggested Mr.. Ferris. Of Oklahoma
well. II didn't cost me anything. and
IT did cost them" said Steinem.
Mr.. Burnstine said he had given about
800 to a fund TO employ lawyers TO fight
the loan shark bill before the Congress
committee. He was TO pay twenty per
cent Of the total cost. he said, while two
other pawnbrokers, Horning and Heiden-
helmer. paid the remaining eighty per
cent.
Burnstine denied any knowledge Of
Mr.. McDermotts alleged activities, but
said he remembered calling at McDer-
motifs Office to pay his respects when the
three contributors TO the fund happened
TO be at the Capitol.
THE money was for lawyers fees and
incidental expenses" said the witness.
I<know nothing about any other efforts
to defeat the bill Besides. you couldn't
defeat a bill with just $3.50. You might
do something II you had $4,000 or 5000"