Grand Forks herald., 1917-01-09
CREATES SENSATION
WHEN HE SAYS He IS
AFTER BIG REFORMS
Too Serious a Thing, He
Testifies, to Give Names
of Men Involved.
WILL DO so AT
AN INVESTIGATION
Promises to Reveal Them if
One is Ordered-Cited
For Contempt.
Washington, Jan. g.
Barney Baruch denied be-
fore the committee that he
had any advance Informal
tion OH the peace note.

Washington. Jan. 9.-The leak in
vestigation seemed TO make it's first
progress toward some definite point
today when Thomas W. Lawson after
much questioning and urging, prom
jed that should the house order a
formal inquiry he would disclose the
names of the. cabinet officer, the SEN
ator and the New York broker who,
he said, a congressman told him were
engaged in a stock gambling partner
ship and had prOfited through adj
vance information Of President Will
sons note.
To disclose the names to the house
peatedly when confronted with three
separate resolutions to put him in
contempt, for two reasons.
First, he contended the rules COM
mittee had no power to conduct a
thorough investigation including one
of the stock exchanges such as he
urged.
Second. Lawson said, he considered
that disclosure of the names at this
time would have disastrous effect
for the country and the administra-
ton. In preference to that, he pre-
ferred being punished for contempt Of
congress.
Congress pleaded in vain with the
Boston financier to give. the names Of
met officer and the senator.
All through his testimony, Lawson
hinted at names higher up" but no
amount of questioning would elicit
definite statement
When the committees recessed the
gone as far as they could with Law
son at this stage, SO they excused him
temporarily.
Washington, Jan. 9.-Continued re-
fusal of Thomas w. Lawson to answer
categorical questions by the house
rules committee in the leak inquiry
tain second motion by Representa-
tive Bennett that he be cited before
the bar of the house for contempt
The motion was held on the table
for action.
Refuses to Give Names.
Representative Bennett demanded
that Lawson name the man who he
says told him a New York broker, a
cabinet official and a United States
senator participated in stock gam
bling partnership. Lawson fatty re-
fused for two reasons, one that he
was already cited for contempt and
the other that he did not think it
necessary to give the names at this
time.
The line of examination turned to
the stock exchange and Lawson's own
operations. particularly during the
month of December, 1916, during
which the "leak" occurred.
Lawson said that. bad as the break
on the market was when the leak
came. it probably would have been
worse If there had been no leak.
Leak Prevented Failures.
MY opinion is, that the break was
weeks in coming and that the leak
gave certain operators an opportunity
to prepare for the crash." said Law
son. IF the market had broken
without that preparation made possi
BILE by the leak the break would have
been much more disastrous to the
country. We didn't have, any fail
ures accompanying this crash. 80 1
think the leak really was a good thing
in one way
Representative Chiperfield ques-
toned Lawson, seeking to show that
he was a beneficiary of the falling
market.
Lawson denied that he was con-
nected with any brokerage firm. but
admitted that he operated occasional
ly through brokers as an individual.
Condemns Charges.
my purpose" said Chiperheld, "is
was not the recipient Of any leak.
dealt largely on the stock exchange
during this break. l want to show
up his transactions which were con-
Quoted independently of leak. II
he can operate successfully without
leak, then condemn the effort be-
ing made here to indict other men
for operating successfully on that
same market
GIVE us the name Of your brok-
ers!' he demanded.
Lawson said one brokerage was III.
Content & Co.. III Broadway. New
York.
Chiperfeld then asked questions to
show that Lawson began a selling
campaign In December and asked II
his Transaction In steel did not ag-
gregate as much as 100000. Lawson.
said he had no idea what they aEgre-
gated. He would not give q direct
answer whom asked II he had oper.-s
ated q selling campaign.
~ Promiscs to Give Names. RI iS
Mr.. Lawson promised the commit. q
4 tee he would disclose the namAs OF
(Continued on Page 50