New-York tribune., 1919-10-31
Ryan i'm Clash
In Air Service
Spruce Inquiry
Representative Magee Tells
Financier He Will Reply
to Attack on Committee
on Floor of the House
St. Paul Head Testifies
Democrat Says Telegram
of Colleagues to Baker
Was Distortion of Fact

For two hours yesterday bitter
word battle was fought between John
D. Ryan, financicr and director of
aircraft production during the war,
and Representative Walter w. Magee.
The fight occurred during the course
of the Congressional sub committees
investigation into the alleged charges
Of graft in the governments war
time spruce and railroad contracts in
the Northwest.
AS the argument reached its climax
Representative Magce, pounding the
table and looking at Mr.. Ryan, de-
clared: when you attacked this COM
mittee you attacked the House of Rep
resentatives, and when you made your
characterization as Outrageous and
scandalous, | want to tell you, sir
that your statement was unjustitied
and unwarranted, to speak mildly in
the matter. When we submit our re-
port to the House I will answer you
upon the floor of the House. based upon
the evidence IN this case, and let there
be no misundersta nding about that"
An element of politics entered into
the discussion when Representative
member of the investigating committee,
characterized the action of his two col
leagues in sending a telegram to Sec
retary of War Baker as "monstrous
distortion Of fact"
No Value to st. Paul
H. f. Byram, former president of the
Chicago, Milwaukee & st. Paul Rail
road, and now Federal Director of the
road, testified that the governments
S4OO0,QOO railroad on the Olympic pen
lnsular, in the State of Washington.
which connects the former railroad
with the Northern Pacific and Great
Northern systems, had no value to the
St Paul railroad.
According to the record Of the nves-
tigation, the salvage value of the gov
critics. was placed at only $3.50, 900. The
committee has already publicly stated
1t would rather see the road scrappcd
than let the st. Paul have it for that
price
Mr.. Byram testified that the railroad
IN question was not worth the figure
mentioned as its salvage value in its
present condition, and that his com
pany was not interested in it, although
1t might later acquire it.
1t was the telegram objected to by
representative Lea that precpitatcd
the argument between Representative
Magec and Mr. Ryan yesterday. 1t
started while the former was discuss
ing the testimony of Ryan on Wednes-
day TO the effect that he had nothing
tt do with the awarding of the Govern
ment's railroad contract because of his
connection with the Milwaukee rail
road
Ryan Ready TO Back Words
"The railroad contract involved
S4o00oo0," said Magee, "and the
spruce contract involved an estimated
expenditure of $23 100000. Now every
reason which YOU have given or can
give for it being improper for you
to sign the railroad contract is equal
ly applicable and equally forcible in
reference to che spruce contract
81 don't agree with you if that is
your opinion" rctorted Ryan.
Pm telling YOU" replied Magee.
"that in the carrying out of the spruce
contract every bit of this spruce lum-
bei would go over the Milwaukee rail
read"
When Magce declared Ryan had at
tacNed the house of Representatives in
attacking the committee, Ryan said:
"Mr. Magee, as to my statement yes.
terday am willing to repeat and re-
lteratc 1t and to go before the House
OF Representatives and have you put
your case before the House and have
them read my statements"
During the argument Ryan won per
mission to read into the record part
of the telegram sent by the two mem
bers Of the committee forming ma
Jorlty. These two were Chairman
Frear and Representative Magee.
"ls there any statement of fact that
YOU dispute in that telegram - asked
Magee.
Charges 1mputations
There are few statements of fact
IN the document; it is made up mostly
OF lmputations,' retorted Ryan.
Ihere was no intention on part
of the committee to reflect on YOU
personally, MIR. Ryan" said Magee. "lf
you draw that inference it is because
You have knowledge of something VIC
don't know about. What was SAID in
that telegram | stand back Of"
NO one can make the charges you
made without creating feeling" said
MIR. Ryan.
Part Of the telegram read yesterday
by Mr.. Ryan states
"John d. Ryan was the government
director Of aircraft from May to De
cember, 1918, and in a position Of su-
premc authority throughout that period.
besides beng member OF the board
OF directors and executive committee
u vac vi hllWdukee railroad.
:. Mr.. Ryan was president Of the
Montana Power Company that holds
valuable contracts for furnishing elcc
trlc power with which to operate the
western portion of the Milwaukee svs-
TEN. Mr.. Ryan approved the S25. 900.
600 spruce contract dated May L., 1918.
and he knew that the construction of
tins railroad was for the purpose Of
carrying out the execution Of such
spruce contract.
"Ailwaukee railroad officials an
parently determined the route. A Mil
waukee engineer built the road. Mr..
Ryan personally examined the route
in July, 1918. He was in position
OF authority to determine ali matters
relating TO the character or location
Of the road. and if necessary was en-
powered to cancel any contract"
Alleged Murder '.PaI