The Washington times., 1919-12-16
SECRET SERVICE
HUNTS COURT LEAK
Decisions Tipped off to Wall
Street by Washington
Spectators.
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task Of unraveiing the facts concern
ing An alleged system of Supreme
Court decision '1eaks" which, II is
believed, has been in operation for
more than two years. The question
of whether this alleged system rep
resents an actual leak from q court
attache or q system of deduction"
by which lawyers guessed" the de-
cisions and spcculated on their
lunches" remains for Chief Flynn
and his aides to determine
The fact is, however, that on De-
cember 8 was able to notify Judge
Ames and Chief Flynn, upon informa-
tion given to me by . man in q posi-
ton to know, that . certain Wash
ington lawyer was in New York claim
ing to be in possession Of the Supreme
Court decision In the ''hard liquor
case which was handed down by the
court shortly after noon yeSterday. I
Immediately notified Judge Ames and
Chief Flynn that this decision, accord
ing to my informant, would uphold
the constitutionality Of the dry act.
It Is alao q matter OF record that this
lawyer went to Wall Street and made
an arrangement to trade in United
States Food Products stock on "infor-
nation" that the decision Of the court
would cause this stock to decline in
price.
For some unknown reason the court
did not hand down the decision on
the liquor question q week ago Mon
lawyer returned to Warrington.
FHy,n STEPS In.
II 10 . matter of record In the De-
pArtment Of Just1ee that this same
hwyer appeared in New York on
saturday, December II. and again
opened negotiations to speculate on
Monday morning in the United States
Food Products stock. his idea being
70 sell Il short on the dry decision.
II was 1T Just this iuncture that Chief
Flynn stepped In and interrogated
this lawyer. Chief Flynn had been at
Washington on the previous Sunday
and had there questioned q lawyer
employed In the Department of Jus
tice and also the Secretary Of one of
the members Of the supreme Court
The latter two men were found to be
well acquainted and. in fact were
partners In q small commercial insti-
tuition in Washington
Chief Flynn said: Il interrogated
these three men. The lawyer con-
nected with the Department Of Jus
tice admitted that he knew the law
yer later Intercepted in New York
and he confessed that he had been in
New York with this lawyer and had
speculated In Southern Pacific stock
on Monday, November II, the day that
the Supreme Court handed down its
adverse decision In the old lands
case This man also admitted that
he had sold the stock short and had
cleaned mp about three points.
SysteA Of Deduction.
The secretary OF one of the men,
bers OF the court vigorously denied
that he had ever made q dollar out
or stock speculation or had used any
court Information, and he seemed en-
tirely unsophisticated as regards
stock market operations. 1t was true
that he was associated with the De-
partment Of Justice lawyer in a small
commercial business. Both the De-
nArtment Of Justice lawyer and the
lawyer / fnterrogatcd in New York on
Monday denied to me that there WAS
any actual leak, and both set up the
claim that they were operating on a
system Of deduction. Just how they
could anticipate q decision like this
dry verdict OF yesterday taxes cred
ulity.
1T Is true that the Department of
Justice was warned by Mr.. Pew.
through the investigation made by
the International News Service that
one Of these lawyers in q converse,
ton in New York more than two
weeks ago, said that in case there was
any trouble with the Department of
Justice 1t had been prearranged that
the 'alibi' would be that there was no
leak, but that the lawyers were mere
ly guessing what the decision would
be-"
The Southern Pacific action Of sew
eral weeks ago was one Of the