The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1915-02-16
CALLS SHIP QUIZ
SLAP At NJ ADO0
Senator Asserts Ugly Charges
Originated with Dis
gruntled Promoter.
LOBBY WILL BE PROBED
New York Banker Denies Purchase or
Sale of Vessels Was Dis
cussed by Him.

Fly IGm"Is that have been aflnat in
Washington for s"Ncra! weeks in regard
:" th, Influences behind the ship-pur-
ruaS,. bill hav" resulted in a decision by
the senate to investigate them. The in
pIirv Will not he limited to the running
down Of these rumors. bat will also en-
hia"" charges that certain shipping in
lcrcsts have been working against the
IaSsaG" oi the administration easure.
\ resolution WIS introduced several
DAYS ago by Senator Burton, of Ohio,
.IlinE for an investigation as to
whether any official of the Federal gov
eminent had obtained any option on the
German informed ships. Secretary OF
IN" Treasury MCAdoO resented this reso-
luton. and il Was charged the floor
"f the Senate yesterday that the resolu-
non in the nature of an attack on
Mr.. McAdoO, too thinly yelled to de-
GIVE" 1t was announced that MIR. Nc
AdoO welcomed any investigation, but it
at his instance that there was in
GUIDED also within the scope of the reso-
luton the so-called lobby against the
I'LL.
Bankers Are Mentioned.
From time to time in the course of
the Senate debate on the ship bill there
have been insinuatinos that large New
York banking interests were behind the
Ship-puTChase bill The banking house
81 kuhn. Loeb e Company has been
mentioned in the debate, and it has been
POINTED out that Paul NJ. Warburg,
'"rmerly of that firm and now a men,
Ter of the Federal Reserve Board. has
brother on the directorate of the Ham
hurCAmerican Steamship Company.
many of whose vessels are for sale in
the United States. Mr. Warburg him
self gave out a statement today denying
that nc had ever discussed the ship
purchase hill with Secretary MCAdoo or
any member Of the administration, or
Of Congress.
The investigation will begin at once
and to the bitterness already aroused in
Congress by the ship bill controversy
will now he added the intense feeling
stirred mp by a personal investigation
Of this character. All cVid"rc"S point
to the fact that the present Congress
will Toe among the stormiest scenes that
have been witnessed in many years.
\ committee of five Senators will
conduct the Investigation. They We're
endowed with full power to compel the
attendance of witnesses and to require
the production Of papers. The commit
tee is made up Of Senators Walsh. Sim
mons. and Reed, Democrats. and Weeks
and Burton. Republicans. Senator Walsh
j. chairman He has called meeting
"f the committee for this morning.
McAdoo May he Heard.
1t is expected that the first two wit
resses to he heard will be Secretary
McAdoo and Paul NJ. Warburg.
Il am authorized to say" said Sena-
tor Reed. Of Missouri. that the Secre-
tsry of the Treasury is not only not OPP
posed TO this investigation. but that he
welcomes it"
senator Reed In a speech defending Mr..
McAdoo and assailnS the Republicans
charged that rumors connecting the name
of Secretary MCAdoo with interests hold
ing options on the intcrn"d German ships
had originated with "A promoter who had
tried to g& the government to under
write a shipping plan. Mr.. McAdoo. ac-
CoIding to Senator Reed. had had much
to do with blocking this scheme.
Senator Burton promptly announced his
willingness to have the scope of the in
vestigation broadened to take in So
called lobbyists against the ship bill. He
added there had been many ugly rumors
afoat and that charges had been made
in open Senate and on the floor OF the
House and that he thought it we'll to
have them sifted.
Denial by warburE.
Here is the statement given out by
Mr.. WarburE:
II have never discussed with Sec
rotary McAdoo nor any member of the
Administered ton or Congress, directly
or indirectly, the purchase or sale of
the ships of the Hamburg American
line or any other line. As matter of
fact. / have conscientiousIy avoided
all political discussions and there is
not a living soul in the United States
TO whom j ever said a word favoring
the ship-purchase bill.
As tar a. ] am personally CON.