Evening star., 1917-01-11
STRICT PARTY VOTE
K|LLSLEAK PROBE
House Rules Committee to Re-
port Adversely on Wood
Resolution.
NO ACTION ON LAWSON

w. Lawson, that there was a leak 10
Wall street on President Wilson
peace note.
Democrats and republicans disagree
as to the effect of the committees ac-
tion toward the Lawson contempt
charges Republicans say he was do
solved by vote of the majority ana
that the whole investigation is over.
Chairman Henry insists that the spe-
cial subcommittee to deal with Law
sons refusal to answer questions pro-
pounded by the committee and his pup
lication of leak" charges IN news
papers still is in existence ana may
take some action.
The opposing members also disagree
as to whether the inquiry is over. Re-
publicans say it is in effect. Repre-
sentative Henry says RepresentatlEe
Wood has another resolution oeloe
the committee which has not been act
ed upon which the majority refused 10
take up today.
New Version of the Leak.
A new version of the Teak" to Wall
street on President Wilson's peace note
was given to the House rules commit
tee today by James r. Reilly. manag-
ing editor of the Wall Street Journal
A tip picked up. he said. by a Dow
Jones reporter in Wall street that
brokers' private wires from Washing
ton were saying the President was
about to send peace note was solely
responsible for the dispatch forecast
ing the note which appeared on the
companys ticker at 2:05 pm. Wednes-
day. December 20. ten hours before the
note was published.
Between 11:30 am, the time Reilly
Oh he 10 n O.
patch Of the item on the ticker. Reilly
said, he received two messages from
John Boyle. the Journals local repre-
sentative here. The first, filed before
Boyle had received Reilly's inquiry re-
garding his reporters tip. was marked
CONFIDENTIAL" and told of the coming
of some sort of a note and said 1t was
not peace proposal. The second. in
reply to Reilly's inquiry as to whether
anything was available on the reports
CLEANED from the brokers' wires, was
to the effect that reference undoubt-
edly was made to the coming note.
Did Not Violate Confidence.
Reilly was very emphatic in his dec
laration that the Journal would not vio-
late a confidence. f.
About II :30," Reilly said. "one Of
our reporters told me that Washington
wires to brokerage houses said the
President was preparing to issue
peace manifesto There had been ru-
street for some time. / imm ediately
telegraphed our Washington represent
ative. / sent him a message about
11:40. This preceded by an hour the
ming OF boyies conndentiai message.
SO the thing originated in Wall street
instead Of coming from Washington"
Asked regarding news comments sent
out in their report that day regarding
the market, Reilly said:
The market was very nervous that
day. 1t was just possible that this
was due to rumors that the President
was going to take some important ac-
ton with reference to foreign affairs"
Report of Bankers Meeting.
Did you hear a rumor about tn at
time or a little before" asked Repre-
sentative Harrison, "of a meeting of
bankers at which they served notice
to brokers that stocks were being pyra-
mided too high?"
Not exactly that" Reilly replied. "I
heard of no bankers meeting, but there
bankers met at the Metropolitan Club
and came to the conclusion that the
amount of industrials carried in their
loans was entirely too high. Whether
such meeting was held or not / do
not know, but it was reported to have
been held about December Is.
THE rumor was brought to my office
by one of my reporters. There is
scarcely any doubt. also. that the
bankers for their own protection had
collateral. and to favor railroad Sc
curities instead of industrials which
would be most severely affected In the
event of a break"
George speech. Reilly said that it had
affected the market
No Forecast of Lansing Statement.
Asked by Representative Pat.en II
there had been any advance informa
ton in Wall street that Secretary
Lansing on December 81 would issue a
statement asserting that the United
States was being drawn near the verge
of war, Reilly said he never heard
of it.
Il do not think that is so" said
Reilly. THAT is news to me-"
Two proposals, the Campbell resolu-
tion to empower congressional COM
mittee to make full investigation of
everything developed at the hearing
luton were voted on. Democrats
stood against both and republicans
stood for them.
The ma iority voted to report a rec
concentration to Law the Wood resolu-
ton. which the House held privileged
on the table. This has the effect OF
killing 1t.
the original Wood resolution, which
was broader in scope than the privi-
legged one, to vote.
The first would have general inyesti-
CATION of Teak" charges. while the
4 I, 1a1
for an inquiry into Lawson's charges
of leak"
In effect, then. the committee held
that Lawson did not sustain his
charges.
Chairman Henry said that on Law
sons defiance Of the committee no
definite action had been taken
our action on this Wood privileged
resolution" said he. amounts in it's
pra ctical effect to an adverse report
we will submit 1t to the House at
9 o'clock with the simple statement
that there was not one particle of evi-
dence adduced to support the Lawson
charges OF course. there Is another
resolution which is not priyileeed
which is before the committee | don.t
know what will be done with that ;"
Republican members declared thar
the action Of the committee ma fority
served to bring the whole CONTROVERSY
to an end.
While democratic members of the
committee insisted that repnh,ican
members went too far in interpreting o
today's action to absolve Lawson from
contempt. the republican members de-
,iared emnha fically that this NC, -.