The sun. [volume] (New York [N.Y.]) 1916-1920, 1917-01-06
Say Presidents Secretary
and Financier We're
Together.
BROKER SOLD SHORT,
IS WRITTEN CHARGE
Man Who Makes Accusa-
tions Cannot Be
Found.
OTTO KAHN is ALSO
NAMED WITH OTHERS
All Concerned to Make De-
nial to Investigators
Under Oath.

WASHINGTON, Jan. 5.-A miscellaneous
collection of rumors involving names
prominent in politics and finance. but
unsubstantiated by any facts or direct
evidence was presented before the House
Rules Committee to-day at the first ses-
sion of its preliminary investigation into
the alleged leak" in connection with
the Presidents peace note.
Representative Wood, author Of the
investigation resolution, the first wit
ness to be called, laid the tangled skein
OF gossip before the committee. He
prefaced his testimony by the state
ment that he made no charges against
any one and had no information but
that which he had received from others.
Through this medium he presented
the names OF Joseph T. Tumulty. the
Secretary to the President Bernard
Baruch. a Wall Street operator; Otto
Kahn, OF Kuhn Loeb & Co. of New
York: Thompson, McKinnon & Lameon
Company, Chicago, brokers: +. A. Con-
molly & Co., Washington, brokers, and
certain Mr.. Boiling" a partner OF
the last named concern. the brother OF
Mrs. Wilson. wife Of the President
New York Men SubpGnaed.
Mr. Wood also submitted to the COM
mittee letter from a. Curtis" said
| to be an independent broker in New
York. This communicated was writ
! ten on a blank sheet OF white paper
which bore no distinctive mark
Immediately after the hearing the
committee In executive session decided
to issue subppnas for Bernard Baruch
ana the \. Curtis whose letter was in
troduCed in evidence
: Representative Henry. chairman OF
| the committee. announced that Thomas
! w. Lawson OF Boston would appear
! oefore the committee on Monday The
! committee also decided to request the
New York and Chicago Stock Exchanges
10 preserve their records for ten days
! prior to the recent peace" break in
| the market so that speculative records
| might be scrutinized and TO call for
,ne records OF all stock brokers in
! washington to ascertain whether any
Unusual orders were placed in con-
nect!on with the alleged leak"
The spreading Of the net in the hone
or bringing TO the surface definite in
| formation and the mention of names in
| connection with the stock market opera-
| tons provided a sensation for official
| Washington. Hardly had the testimony
| been given before a food OF indignant
denials was forthcoming. 1t was obvious
| that the committee had stirred up
very active hornets nest
TumuIty Issues Denial.
soon after the hearing statement
was issued by Secretary Tumultv deny-
ing fatly that he had any knowledge OF
Inc PRESIDENTS intention to send the So
| called peace note that he had discussed
1t with Mr.. Baruch. and demanding a
public apology from Representative
Wood FOR mentioning his name in con-
| nection with the investigation.
Soon afterward an indignant denial
from otto Kahn was received by Chair
man Henry and made public In this
Mr. Kahn declared that he had no ad-
| vance Information of any kind concern
ing the Presidents note and denied that
he had ever sold a share OF stock short
in his life. Still another denial was
made by r. w. Boiling, the Presidents
prother-in-law. partner in the Washing
ton brokerage firm of f. A, Connolly.
The question uppermost in the minds
OF legislators Tonight is whether the
committee Will succeed in obtaining any
tangible evidence concerning the leak
or whether its efforts will merely result
In the collection of mass OF unsubstan-
tlated rumors which will mean nothing
at all. Republican members of the COM
mittee are still convinced that under tho
cloud OF smoke that has been raised a
spark OF fire will be discovered Demo-
cratic members. on the contrary, were
more disposed to-day to let the investi-
CATION take its course, apparently con-
Ninced that the rumors which have been
; circulated would prove 10 be rumors and
, nothing more.
Gardner TO Testify.
: Representative Gardner. Massachu-
setts, who took conspicuous part in
the fight for the right of way of the
: investigation resolution, will appear be-
> fore the committee tomorrow to tell
5 what he knows about the alleged leak.
| The burden OF Representative Wood $
, testimony centres on two points, Chicago
D and New York, He testified that on De-
: cember 90, before the publication OF tha
note. r. w. Mckinnon of the firm o.
Thompson & McKinnon of Chicago. tele-
l graphed to Ralph II. Hartley. manager
OF their Oshkosh branch. telling him that
an important executive communication
: was ( rthcoming and directing him to
advibr customers to sell short on stocks
4 Repre- sntative Wood said that S. D. FRI
day Of Oshkosh had given him the infor-
> nation
z Representative Wood added that on
the afternoon of the same day. according
: to information he had received. Lamson
u Bros brokerage office in Lafayette
Ind. was informed from Chicago that the
President contemplated sending s'peace
!; note,
}. Mr., Wood suggested to the committee