The Chattanooga news. [volume] (Chattanooga, Tenn.) 1891-1939, 1920-07-07
OFFERS FACTS TO PROVE
PALMER ABUSED POWER
Wood Manager Admits Mil
lion Dollar Slush Fund.
Light on Lowden,

Cnicago, July 7.-William Armstrong,
chicago lawyer, presented to the SEN
ate committee investigating campaign
expenditures today mass OF documen-
tary evidence which, he said, would
prove that Atty--Gen. A. Mitchell Pal
mer has abused the power OF his Office
IN order to influence delegates to the
democratic national convention"
Mr.. Armstrong told the committee
the. documents would show Mr.. Palmer
had advocated pardons for criminals
and prevented the gathering OF evil
dence in cases where there were
charges OF defrauding the government.
Senator Kenyon said the committee
would decide later whether Armstrong
should be called as a witness.
The biggest sensation sprung thus far
In the 'slush fund scandal involving
the campaigns of leading. republican
cracked wide open in Chicago today
when William Loeb. eastern manager
Of the campaign OF Gen. Leonard Wood,
admitted before the senate committee
that the Wood campaign had been un-
derwritten for $1.O00,000 by some of the
countrys biggest financiers. Just prior
to this statement by T. w. Hukried
a Missouri Lowden campaign manager,
admitting that he had received $2.050
from the Lowden camp, was placed In
evidence by the committee.
Among the alleged contributors to the
Wood fund named by Mr.. Loeb were
J. B.. Duke. the tobacco king, who,
Loeb declared, contributed substan-
tial sum; the late George W. Perkins,
who handed over $4,000 "for somebody
nate. who gave s50,00O to the fund.
Loeb testified.
Mr.. Hukried declared in the state
ment that the money had come from
e. L. Morse, of Excelsior Springs, Mo-,
the Lowden campaign manager, whose
name was menDoned in the preconven-
tion hearings OF the committee as hav-
ing expended $32, 900 OF Lowden money.
Hukried said that his statement was
made with no regrets or apologies"
and that the $2,O50 had been spent for
named John T. Moore, Of Ozark Mo-,
as having received 5000 and w. g.
Kitchen, of st. Louis, as getting $780,
II have nothing. to be ashamed Of"
his statement read. 'In the 1912 cam
more money in Missouri than did Gov.
Lowden in his campaign"
1t was announced that the Missouri
exposures would give the committee
start In It's contemplated investigation
Of democratic campaign funds.
Those present at the committee ses-.
sion today were Senator Kenyon, OF
Iowa, and Senator'S Reed and Spencer,
on Missouri. Senators Poinerene and
Sherman were absent.
II received altogether. $4o6,ooO," said
Mr.. Loeb. "The campaign was under
written for $1,000 900. however by
George j. Whelan, Col. William Cooper
Proctor and Col. Monnell. Each
agreed to be responsible for $25O,00o,
and 1t was decided to try to get the
fourth $25o,ooo by popular subscrip-
tion."
OF the $4os,ooo received personally by
him, testified Mr.. Loeb, $225,000 went
to the Chicago headquarters OF the
Wood campaign, $3.50, 900 to the eastern
headquarters, $4,000 to the New York
headquarters and the REMAINDER apout
$4,000, was sent to Col Proctor few
days ago.
'T was asked to take charge OF the
campaign" said Mr.. Loeb, "and John
T. King was selected to manage the
general campaign. He was scheduled
to advance Gen. Woods interests
among various organizations. But als.
developed, and we decided to change
managers and transform our policy to
a direct appeal to the public was
consulted as to the amount OF money
II would take, to carry the appeal 10
I'm order to get 1t, IN appeal was
sent to the Wood league and COM
mittee of fifty was named IN New
York headed by Mr.. Freeman, an at
tOrney OF tnaI city. lHdllJ' a. nSNS
ing attended by Mr.. Whelan. Col. Mon.
nell. Rufus Patterson and others, IL
was decided to underwrite the CAM
paign. Senator Borah's speech attack
ing campaign expenditures came out al
about that time"
Asked by Senator Kenyon for the
names of all the contributors, Mr.. Loep
stated that he didn't know who they
were" but finally recalled the names
OF Duke, Perkins and Rogers. He saia
OF Duke, Perkins and Rogers. He sai9
that his own contribution to the tuno
had been $500.
Senator Reed, Of Missouri then ques-
toned Mr.. Loeb concerning five CASH
ier's cheeks for $1,000 each, said 70
have been sent 10 Georgia, Florida'
MARYLAND and TO "a Col. Smith, OF the
District OF Columbia"
Replying to a question as to whether
It was good business 70 SEND suSn
checks in letters where they would pc
liable to theft or loss, Mr.. Loeo re-
plied that while Il might not be goou
business, "it was good politics"
eahier Testlfles.
J. L. Bahler. republican national COM
mitteeman from Missouri. recalled 10
testify before the committee TO-DAY:
made a statement In which he ADMITTED
receiving $is,45s.54 from +. l.. Morse
Iowden's campaign manager in MIS-
souri,, and that he had disbursed slb'lol
for expenses.