The sun., 1917-01-07
Washington Correspond
entS Must Tell Source
of Bear News.
GARDNER SAYS TRAIL
LEADS TO WALL ST.
Lansing. Tumulty, Baruch.
Lawson to Take
Stand.

WASHINGTON, Jan. 6.-The tentacIes
Vi 'he preliminary House investiratjon
INTO the leak in connection with the neac.
note reached out to Wall ctroo, o.. -.
' ''e committee laid its plans for q
scrutiny OF the mechanism of stock buv.
ing ana selling. 1t is the apparent plau
or the Rules Committee to trace thu
cause OF the recent Wall Street cata aclvsp,
by working backward through its effects
INSTEAD of attempting to run down the
leak" at the source.
i"4s pan OF action was presented to,
gay by Representative Gardner. Ma.sa.
chusetts. the only witness TO be heard.
He insisted that there was no ouestion
that the market was affected by peacs
rumors and that the principal question
before the committee was the method ~
ascertaining how the effects were brought
about.
Inc inquiry appears to be directed
to the following points:
The method by which the news Of the
forthcoming peace note might have been
sent out of Washington through the
ordinary news sources
The method by which the information
was distributed in financial circles in
New York and elsewhere.
The stock market transactions in the
few days preceding the sending of the
peace note which reflected bearish
influence.
To this end the committee has sum-
moned to appear Charles Sabin of New
York. president Of the Guaranty Trust
Company; the representatives, in Wash
ington OF the Wal street Journal Findn-
cidl America. the Central News Associa-
tion and THE NEW YORK EvENING SuN.
Judge OIcOtt Retained.
Judge William NJ. X. Olcott of New
York has been retained By Representa-
tive Gardner as counsel The ticker rep
resentatives of the news distributing
agencies also will be gcrutinzed.
Later on ii Is expected the committee
will take up the sales records " the ex-
changes. Upon motion of Representative
Campbell. Kansas, Republican. the
committee decided to-day to order the
New York and Chicago exchanges to
notify their members to preserve their
sales Slips from December 10 to Decem-
Der 20.
Other witnesses who will be probably
heard by the committee on Monday are
Joseph p Tumulty. who to-day notified
Chairman Henry that he would be will
ing TO appear Secretary Lansing. who
also reported to Mr. Henry that he would
appear voluntarily, may also be heard
on the same day. Bernard Raruch will
not no called until later. when the New
York end Of the alleged leak is taken
up The only reason for calling Charles
Sabin at this time was the fact that he
had made plans TO go abroad next week.
II 10 understood that the committees
nurpose in calling Mr. Sabin is to get to
The bottom, of the peace report which he
received last autumn.
Tn. main feature OF MONDAYS session
Of the Investigation will he the eXamina-
tion OF Thomas ". Lawson Of Rosto,,
whose charges against members of Con-
gress were mad. the occasion for the
resolution introduced by Representative
Wood. The Boston fnanCier undoubtedly
will be put through severe cross-eN-
animation by the committee. both nil
nority and majority members OF which
appear to be determined to show that
the charges of Mr. Lawson were un-
justified.
Correspondents TO Testify.
TT, ,o,,.io, -, ,r, ,,,,,,f,,oo 90 in.
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~. ' i,1troctI,, ,vi,b or,rci,, nuh,icotiona
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na,1,nSra,,. memhers who i,,imate6
no., ~. r.nor, ~ the cor,inc reaca ro,a
or,a,na,.a -, cnrsdentiaI confsranca
n, sacretary Lansing with a number of
,ausnoner corresnonderts Renresenta-
,Iv. Gardner also laid stress unon this