The Oskaloosa herald. (Oskaloosa, Mahaska County, Iowa) 1885-1919, 1917-01-11
ORDERS PROBE ON
PEACE NOTE LEAK
Congress to Hear Lansing, Tu-
muIty and Others.
REP. GARDNER GIVES PROOF
Stock Ticker Reports Quoted to Prove
Contents Of Message Was Known
Hours Before the Public
Received 1t.

Washington, Jan. S.-Far reaching
scope was given TO the investigation of
the leak" to Wall street on the presi-
dents peace plan.
The congressional committee which
is prosecuting the inquiry decided to
hear the testimony of Secretary OF
State Lansing, Secretary Tumulty
and formidable array Of bankers,
brokers and managers of telegraph
companies,
These witnesses have all been di-
rected to appear before the committee.
Many of them win be there at their
own request to explain circumstances
which brought about the mention of
their names in testimony already given
concerning the supposed leak"
Others will be brought before the
Committee under subpoena and will be
asked to tell what part they may have
had in the spreading of information OF
the peace plans to stock market chan
nels in advance of its being given to
the public. ...,
Four Asked to Appear.
Secretary of State Lansing and Sec
Rotary. Tumulty have asked the privi-
lege Of appearing before the commit
tee, and so have Otto II, Kahn of the
firm Of Kuhn, Loeb & Co, and Charles
FL. Sabin, president of the Guaranty
Trust company of New York.
The other witnesses viii be Thomas
w. Lawson, Bernard Baruch, who is
mentioned as having made a big play
on the market few hours before the
note was issued two local correspond
ents for financial papers and five rep
resentatives of a news bureau which is
supposed to have carried advance news
of the peace Intentions to the central
West.
Gardner Gives Proof.
The session of the committee on
rules was occupied by the presentation
of prepared argument by Representa-
tive Augustus p. Gardner of Massa-
chusetts. He discussed circumstantial
evidence which he said showed clearly
that a leak had been permitted.
The Wall street bear plungers, Gard.
ner declared, had advance information
Of the presidents peace. note of De
cember IS, and used this information
in selling stocks short in the face of a
rising market and in covering at stu.
pendous profits after the public an
nouncement Of the presidents action
was made.
Quotes From Ticker.
Representative Gardner made no ac-
cusations. He specifically absolved the
president, Secretar! Of State Lansing
and Secretary Tumulty of any connec-
ton with the leak.
His argument took the ground that
the circumstances made it apparent
that someone with inside information
made the short commitments, enjoyed
The tobOggan of prices in the stock list.
and then in the erratic market follow
ing the Uig decline covered their short
sales and garnered their rich harvest
of real money
II stand on my statement that there
was a leak" said Representative Gard
ner at the beginning of his statemeRt
Gardner haS come prepared. He
named no officials suspected or brokers
and Spectators alleged to have been
participants in the bear raid. He had
with him sections from the stock news
tickers. On one of these short ex.
tract was timed four hours before the
presidents intention to dispatch a note
was made public. 1t read:
The renewed selling of the market
is due to reports received by brokers'
private wires from Washington TO the
effect that the administration will in
the near future address TO the beIlig-
ercnts some suggestions or proposals
in regard to pence. Nothing definite is
obtaipable in administration circles"
Gardeners statement induced the
committee at once TO summon the state
department and the White House cor
respondents of the two Wall street
news services. y atr '}t', 49, p"