New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-01-07
Newspaper Men Also
Summoned to TeS-
tify Tomorrow
GARDNER CITES
MARKET MOVES
IntimateS Real Attack Be
gan Days Prior to Peace
Note Flash

Washington, Jan. 6. .- Following 4
demonstration by Representative Au-
gustus p. Gardner, based on the Auctu-
ations Of the stock market just before
the publication Of President wilson's
peace note, that there had been leak
the House Committee on Rules to-day
summoned the following to testify be-
fore il on Monday:
Secretary of State Lansing, Charles
II. Sabin. Of New York, president OF
the Guaranty Trust Company; Barney
NJ. Baruch, Otto Kahn, of Kuhn, Loeb
& CO.; Thomas W. Lawson, the entire
Washington staff of the Central News
of America, Washington correspondents
Of "The Wall Street Journal and 1--WE
other newspapers.
Joseph P. Tumulty, secretary TO the
President, whose name was mentioned
yesterday by Representative Wood, in
stigator of the inquiry, notified the
Rules Committee to-day that he wished
TO appear and make statement on the
subject.
"You may say that Mr.. Lansing IS
appearing at mis- own request said
Chairman Henry of the Rules Commit
tee after an executive meeting Of the
committee to-day.
81 was not under that impression,
interjected Representative Campbell,
of Kansas, ranking Republican member
Of the committee.
Sabin's Part in Case
will Mr.. Sabin be asked TO TESTIFY
with regard TO his peace announcement,
which broke the market early in Octo-
ber?" Mr. Henry was asked.
ooh, no; not at all. That was not a
leak. lie will be asked to testify with
regard to this recent alleged leak from
the State Department" replied Dir.
Henry.
Mr.. Baruch will be questioned as 10
the rumors of his heavy short selling
of Steel prior TO the publication Of the
peace note.
The questioning OF Thomas W. Law
son is expected to be exciting, as sew
eral members Of the committee are ex-
tremely irritated at his various charges
against the membership of the House,
particularly his comment that il they
suspected there would he a real inves-
tigation it would be impossible for the
House to obtain a quorum.
Obviously, however, the committee
intends 20 concentrate much of its fire
on a rumor concerning the leak which
is regarded in well Informed quarters
a. utterly inconsequential That rs,
whether the news that there would be
peace note WAS flashed out by a news
agency-the Central News, supplying
Financial America" on the one hand,
or "The Wall Street Journal" supply
ing Dow, Jones g. Co., on the other.
Trading Preceded Flash
II is realized by most persons who
have studied the movement OF the mar
ket. that the selling on which the big
profits we're realized on advance infor-
nation. was made not on Wednesday
the day the news agencies flashed this
news, but on Monday and Tuesday, and
even on the Friday and Saturday OF
the preceding week.
II is true that the big crash in the
market did not come until Wednesday,
though there are plentiful evidences OF
huge blocks of stock dumped" on the
market for mysterious reasons. But
the market was supported by authori-
tatiye statements in every newspaper IN
the country, backed by information
from the White House itself, that the
United States was doing nothing 10
bring about peace.
The men who made money out OF the
recent fluctuations were buying on
Wednesday, covering their short sales
OF the few days before.
In his testimony Representative
Gardner said that he urged an investi-
CATION of the leak partially because he
found that the country was beginning
to believe eve were trying to draw
red herring across the trail by suosti-
tuting an attack on Wall Street for
defence Of ourselves"
Defends MIR. Wood
Representative Wood, author of the
inquiry resolution, was the hrst man
called 20 the witness stand to-day, and
1u-.t.,.d an naCe roIumn