The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1913-06-27
Propositions Put Up to
Financier Included Dreams
Of Influence to Be Ex-
erted at Capital
LAUTERBACH CLAIMS
HE DID NOT PHONE
David Lamar and Others to
Be Called Before COM
n1ittee of Congress

WASHINGTON, June 26.-The story
of an effort to sell gold brick to Wall
street and how it was foiled was told
in part to the senate lobby" investi-
eating committee tonight at one of the
most sensation producing sessions it
has held in its stormy career
1t was a tale of how influence was
to be exerted in the seats of the mighty
In Washington to prevent unfavorable
Investigations into the doings of the
street. Of how law suits that the finan-
cial interests of New York would not
like We're TO be prevented and of how
the gold brick seller was generally to
protect the interests OF the clients he
sought in the political game in the
capital
Representative A. Mitchell Palmer
of Pennsylvania, one of the prominent
democrats OF the house, mentioned for
secretary or war in the preinaugura- :
ton days and close friend of the
president. told the story and Edward
Lauterbach. a New York lawyer, and
New York gave the committee some
light on its details.
PLOT is FOILED
According to Mr.. Palmer, Lewis Cass
Ledyard. another New York lawyer,
was the man who was largely instru-
mental in foiling the plot. The name
of the man who proposed to do all
these things in Washington was not
given to the committee. although Mr..
Palmer acknowledged that he had
strong suspicious of his Identity.
Mr. Palmer told tIe.4colnnaittee that
the srespresentatiols Of influence in
Washington had gone go far as to
bring In the names of the speaker of
the majority leader In the house and of
at least two other prominent members
that after Mr.. Ledyard had been en-
gagged in many telephone conversations
with the man who had all these goods
for sale in Washington he had met
Edward Lauterbach, a New York at
torney. under the supposition that
Lauterbach was representing the user
of the telephone
LAUTERBACH DENIES
Lauterbach was in the committee
room and listened to all the testimony
hours on the stand. Later he denied
that he had tried to secure employ
ment with big interests in New York
on the strength of supposed power in
the capital. He swore that his only
effort was to restore the entente cor
dale he had previously enjoyed with
Morgan & 60. and which he thought.
had been broken because OF his friendly
relations with David Lamar whom he
described as Wall street operator"
who usually operated on the bear side
of the street"
AS a result of Mr.. Lauterbach's tes-
timony, the committee probably will
call Lamar, George T. Baker OF the
First National bank of New York, Paul
ID. Cravath. Francis Lynde Stetson and
Mr. Ledyard, all New York attorneys,
and Charles Steele of Morgan & Co
Lauterbach explained his conversa-
tions with Mr. Ledyard by saying that
he had talked with him about the al
legged interest of Congressman Riordan
In his employment by the Union Pacific
railroad.
Mr. Palmer took the stand at his
own request.
In view Of the turn which your In
yestigation has taken by reason of
Judge Lovett's testimony yesterday"
he said. Il felt it my duty to acquaint
you with an experience of my own
of that kind, so that you might have
the benefit of 1t If you cared to pursue
this branch OF the investigation deeply.
Early in February last, while / was
at my home in Pennsylvania, l was
called to the telephone to answer what
my clerk said was call from New
York. A voice at the other end of the
wire said, This is Mr.. Ledyardv
He spelled his name and said he was
Lewis Cass Ledyard, and added, You
ought TO know me. for you have been
talking with me over the telephone
THE SUPPOSED LEDYARD
Il said: You are very much mis-
taken, Mr.. Ledyard / have never
seen you, | have never spoken to you.
directly or over the telephone. or had
any communication with you You will
have to explain yourself a little further
He then went on to say that if
that was true there was very strange
and remarkable conspiracy afloat. in
which my name had been used and he
then went on to tell me what was to
me very amazing story
"He said that lie had been called
on the telephone a short time before
that by a gentleman who. after some
hesitation about giving his name. saw
ing that he was a representative in
congress. finally said he was Repre-
sentative Palmer of Pennsylvania and
this person told Mr. Ledyard that he
was in a position by reason Of his
membership in the house and his re1a
tion with prominent members of Tho
house to be of service to interests ~
which Mr.. Ledyard represented. even
going so far as to say, as 7 recall II
that he thought the money trust in
vestigation report could be contro1led
that various Investigations then nro,
ceeding, both In congress and in tha
courts, affecting large financial In
terests in New York city, could he
adjusted satisfactorily, and promising
most amazing results from his efrorfs
here In Washington"