New-York tribune., 1920-05-27
He Has Lent S5OO,OOO
to the Committee, and
20 Per Cent Has Been
Disbursed for Publicity
Palmer's Manager
Sharply Questioned
Carlin Is Counsel for For
naer Officer of Concern
Accused of Tax Fraud
Bv Carter Field

From The 7ribuae's Washington Bureau
WASHINGTON, May 26.--Wil.
liam Cooper Proctor, of Cincinnati,
to-day told the facts about the cam-
paign expenditures in behalf Of,
Major General Leonard Wood for
President. He went through the or-
deal of cross-examination by Senator
James A. Reed, and emerged with
the entire respect, apparently, of the
Senate investigating committee, not
only for himself, but for the man
ner in which the campaign had been
conducted.
His most startling admission was
that he himself, in addition to con-
tributing $4,000 to the campaign.
lad advanced $500,0O0 in the shape
Of loan. He added that. while he
might get it back, he was not wor-
rying, and that he would advance
more if he thought it his duty as
patriotic service to the country.
Majority for Publicity
About 70 per cent of the total has
been spent for advertising and pub
licity, he told the committee. Sena-
tor Reed spent considerable time try
ing to establish some understanding
or agreement that a group Of mil
lionaires had agreed to finance the
campaign, and that it was they who
would return Colonel Procter's
money. Growing angry, he COM
inented that Proctor would not have
gone into a business deal on any
such basis.
Il do not regard this as an ordi
nary business deal" retorted Colonel
Proctor. Il regard it as a patriotic
service"
Prior to colsnel Procter's appear
ance Senator Kenyon dropped a bomb
she'll on the Mitchell Palmer Presi-
Dental boosters by inquiring as to the
employment of Palmer managers by
big men IN the Crucibe Steel Company
and allied corporations Charles C.
Carlin, former member of the House
from Virginia, and now Palmer's ma
tonal manager was on the stand.
Crucible Steel Taxes Recalled
Senator Kenyon directed his atten.
lion to the controversy over the income
taxes of the Crucible Steel Company.
which was charged with defrauding the
government out Of between $4,000 900
and sl0,002.ooO in taxes That amount
ultimately was paid in by the COM
pany to satisfy the government claims.
In addition, Mr.. Du Puy, chairman of
the board of the Crucible Steel Com
pany, paid $4,000 of personal income
tax, while the government said he owed
about Mrs. Du Puy's income tax. which.
it was said, had not been paid in full.
Mr.. Carlin said he had been engaged
as counsel for Du Puy in this matter
OF the personal income taxes of both
Mr.. and Mrs. Du Puy, but that he had
no connection with the Crucibe Steel
Company case. j. Bruce Sterling, Of
OnlontoWn, Pa, manager of Palmer's
campaign in Pennsylvania, was named
as one of the counsel for another steel
company, in which Du Puy is also in
terested, and which had a similar case.
Contributions of S59,6I0
Mr.. Carlin read a list of the larger
contributors to the Palmer campaign.
making total of $59,,.N He could
tell almost nothing about who the in
diVlduals were, and Senator Reed re-
marked:
The committee confronts the as
founding fact that the campaign man.
ayers generally know almost nothir.
about their campaigns. I should say
that II Mr.. Sterling doesn't know any
more about the Pennsylvania campaign
than other managers who have testi-
ned and if good political manager
was worth $1,000,000, then Sterling
would be worth about $3.50"
And the same is true of Mr.. Baruch."
suggested senator Kenyon.
Mr.. Carlln said that, in addition to
the amounts he had named, some funds
had been raised by local organizations,
OF which he was not advised.
"ln Georgia" he said "T am advised
about $4,000 was sent in, of which
$4,000 was an entrance fee charged hv
the state committee to get candidates
on the ballot. There has been no real
Palmer campaign, except in Michigan,
Georgia and Penns sylvania, where we
had contests"
Some of Palmer's Friends
Mr.. Palmer has at times suggested
TO me the names of some of his friends
who might be Interested" continued
Mr.. Carlin, answering questions 81 re-
member his mentioning Frank E. Dore-
! mus and Judge Connally, in Michi gan,
/ and Clark Howell, in Georgia. But the
Palmer candidacy represents an over
whelming sentiment, rather than or
ganization-sen sentiment that is attested
( to the tune of about five hundred dele
/ gates TO this time. Mr.. Palmer never
discussed finances or individual contri-
buttons with me, and has given nothing
to his own campaign.
Hoover won the Democratic dele
gates in Michigan. ! authorized send
/ ing 1000 there for newspaper adver-
nslng; don't think cent was raised
IN the state. Really, there have been
no spirited Democratic contests. Tha
fnpa'ga has been good deal of
lovefeast. It has been a Democratic