Omaha daily bee., 1917-01-10
note LEAK &
WORTH A MILLION
TO THE OFFICIALS
Lawson Tells Congressional
Committee that Men High
Up Knew of Contents OF
Presidents Note.
WILL NOT DISCLOSE NAMES
At Proper Time and Before
Proper Parties Will Give
Desired Information.
WILL NAME SUMS MADE

Washington, Jan. 9.-The leak in
vestigation seemed to make its first
progress toward some definite point
today when Thomas w. Lawson,
after much questioning and urging,
promised that, should the house order
a formal inquiry, he would disclose
the names of the cabinet officer, the
senator and the New York broker,
who, he said, congressman told him,
were engaged in stock gambling
partnership and had profted through
advance information Of President VIII
sons peace note.
To disclose the names to the house
rules committee, Lawson repeatedly
refused, even when confronted with
three separate resolutions to put him
in contempt, for two rcasonsh
First-He contended the rules COM
mittee had no power to conduct
thorough investigation, including one
of the stock exchange such as he
urged, and he would not be assured
of an investigation if he disclosed the
names.
Prefers the Punishment.
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.
Congressman questioned, cross-ex-
amined and pleaded in vain with the
Boston fnancier to give the names OF
the informing congressman, the cab
met officer or the senator.
81 cannot name the cabinet officer
to whom | have referred without
mentioning another official of higher
position" said Lawson, "and that
would be more serious than if cast
cloud over the entire congress and
was sent to jail myself for life
No Definite Statement.
All through his testimony Lawson
hinted at names higher up, but no
amount Of questioning would bring
him down to definite statement.
When the committee recessed for
lunch the members seemed to think
they had gone as far as they could
with Lawson at this stage, SO they
excused him as witness tempo
rarily, but told him to remain within
jurisdiction of the committee until
the resolutions putting him in con-
tempt are disposed Of.
At todays hearing Lawson frankly
acknowledged he was more inter-
estcd in a congressional investiga-
ton of the New York Stock ex-
change which would result in REM
edial legislation than he was in in
vestigating the leak in President
Wilson's peace note.
| Would Disclose Winnings.
| In the course of the discussion Of
the unnamed trio of whom the con-
gressman is said to have spoken Law
son declared he not only would give
a special committee their names, but
also the amounts OF money they were
supposed to have made from stock
transactions. Lawson promised to
furnish competent testimony.
will you give their names" Chair
man Henry asked. =
"I will 60 further" said Lawson. IT
will name amounts of money; great
amounts of money. More than ST.
100000"
Representative Garrett then de-
manded that Lawson give the
: names and when he reiterated his re-
fusal Garrett introduced motion to
, compel him to answer. 1t was laid
aside for action with the three pend
ing contempt resolutions.
The line OF examination then turned
to the stock exchange and Lawson's
own operations, particularly during
= the month of December, 1916, during
which the leak occurred. g.
= Lawson said that bad as the breal
on the market was when the leal
came, it probably would have beer
worse il there had been no leak.
, my opinion is that the break wa.
weeks in coming and that the leal
gave certain operators an opportunit,
.. to prepare for the crash," said Law
, son.
Knew What to Do.
E "They were left in position t'
= know just what to do. If the marke
had broken without that preparation
e made possible by the leak, the breal
:, would have been much more disas
e trous to the country. We didn't hav'
any bank or stock exchange failure
;. accompanying this crash. So | thinl
{ the leak really was good thing ii
one way"
o Representative Chiperheld CUES
e toned Lawson, seeking to show tina
he was beneficiary of the fallini
o market.
: Lawson denied that he was con
:. nected with any stock brokerage firm
but admitted that he operated occa
e sionally as an individual through brok
ers.
my purpose" said Chiperfeld, 81
, to show that Lawson, who says h
= was not the recipient of any leak, deal
largely on the Stock exchange durin
this break. | want to show up hi
transactions which were conducted in
J, u dependently of leak. If he can oper
: u ate successfully without leak, the
u ] condemn the effort being made her
to indict other men for operating sue
cessfully on that same market.
:; Give us the names of your brok
u ers." he demanded.
After a wrangle Lawson said on