Arizona republican. [volume] (Phoenix, Ariz.) 1890-1930, 1917-01-10
HOUSE SEEMS
ABOUT TO DROP
LEAK INQUIRY
CONTINUED rrom Page one)

Continued from Page One)
he left the witness stand early in the
day We're considered by the committee
in executive session. No decision
was reached, but some OF the mem
bers indicated later that Mr.. Law
son probably would not be recalled, |
and that II il was determined to re-
port the Wood resolution unfavoiably |
the contempt charges would be for
gotten. In the meantime, the finan
cier remains in Washington, subject !
to the committees orders.
The hearing will continue through
out tomorrow, at least. 10 give sew
eral Of the men mentioned in the
various reports and rumors related |
before the committee an opportunity
70 make statements.
During tcday's examination. Mr..
| Lawson frankly admitted that he was
| so-called Teak" itself but that his
purpose in agitating the subject pri
marily was 10 bring about a thor
/ ough investigation OF the New York
stock exchange that would lead TO
| incorporation and federal regulation.
| Bernard Paruch OF New York, who
contributed $4,000 to the last demo-
cratic campaign fund. and whose
| name has been mentioned in the
stories Of money made through ,
leak took tho stand this afternoon
! and denied that he had any advance
information of the presidents peace
| note, the German peace proposals or
Lloyd George's speech. Admitting
that he void short many thousands
Of shares Of United States Steel dur
! ing the period from December u 10
December y, he said his action was
due solely TO his belief thar this was
| the proper attitude to take on the
market in view of the general .crinion
that the way had been opened for
negotiations of peace.
i His first knowledge Of the presi
dents note came 10 him, Mr.. Baruch
| said. in the newspapers Of December
y. He deried absolutely the story
lshat he. conferred with Secre. ary.
tHm lily and said he had no knowl-
a,ge OF \. Curtis" whose signature
was affixed 10 the letter on which
Representative Wood based most ~
his assertions before the committee
Departing from the direct line Of
the investigation. Chairman Henry
asked
Suppose congress should pass
law requiring all these stock cx-
changes 70 be Incorporated and re-
Iuiring that all transactions be made
a matter of public record. would
that not have a good effect
Il do not think 50" the witness
replied AS II is today. every irons
action is recorded ard must he.
DO not sec what could be gained"
Charles II. Sabin, president Of the
Guaranty Trust company Of New
York. who WAS brought here on a
| subpoena a: the suggestion of Lawson
.u~t as he was about 10 leave for
Europe on his honeymoon. reached
The witness stand shortly after his
Z hot b4t.4 T..a
Sabin frankly corroboraied q story
told Dy Lawson to the effect that IN
October he. called Representatives Of
New YorA newspapers 20 his office
! nd told them he had reason 10 be-
lieve that the German government
was about TO ask President Wilson
to suggest peace to the allies.
Otto Kahn. Of Kuhn, Loeb q Conr-
s pany. read into the record a state
ment denying that he was in any wa.
connected with leak or that n
mad ever sold short in his life. he
was excused after testifying briefly
Allan Curtis Of Boston called b.
| the committee on a suggestion that he
r might be the "A Curtis" who wrote
! | To Representative Wood. occupied the
stand long enough 10 deny that he
| vas the writer.
d A bin designated especially 20 pro-
vide for the punishment Of persons
! that refuse 10 testify nj the leak
h inquiry committee was introduced to-
. | day ~ Repre- sentative Caldwell New
= York
5 Baruch also denied that either Otto
r Kahn or "a man named Reich or any
one connected with the government
was associated with him in his short
+ 'eles about the time Of the peace note
3 John Boyle and Henry b. Eland. rep
n resentativss Of the Wall Street Jour
y nal. financial paper owned by the
y Dow Jones company, were the last wit
= nesses of the day.
3. Mr.. Eland said he learned from Sec
/. rotary Lansing in the newspapermen's
e conference with the secretary of De-
cember 20 that there was to be a
e statement at five O'Clock that after
L noon and that IL was not "a peace
proposal or an offer OF mediation" He
telephOned this Information TO Mr
= Boyle in the Journals downtown office
q he said, and heard no mere about ii
r until two hours and a half later per-
haps. when he was advised by other
q | neWspapermen that the Dow Jones
company ticker was carrying the state
ment that the president would issue d
peace note.
Mr.. Boyle testified that he sent the
q | Information given him by Eland to the
Journal in a confidential telegram
' shortly before noon. At 1924 p. m
he said, he received a message from
I DOW Jones company saying it was re-
rorted that the president would issue
/, peace note about the end Of the week
= Banking on what the secretary had
!, told u.s. Boyle added Il replied that
7" there would be no peace note"