The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1924-02-16
100000
SLUSH FUND
AIDEDLOSERS
New Investigations Start;
Mclean Summoned

WASHINGTON, Feb. 16.-
Officials high in the govern
ment lost heavily in stock mar
ket plunges a year or more ago
and ST., 900, 900 "slush fund.-
was used to cover their losses,
according to private Informal
ton given today as a tip to the
Senate committee investigating
the oil reserves scandal.
When the plight of the Off
Gals became known to some of
their friends in Wall Street,
100000 is said to have been
raised and transferred from
New York to a Washington
bank.
Relation of the $1,000,000
fund to the oil scandal is ex-
pected to be established by
disclosures showing that big
oil men subscribed the money.
This million was used purely as a
loan, according to the story told the
committee and all Of it was repaid
but 100000.
A dispute over the 100000 which
still is believed unsettled caused hard
feeling between the Wall Street men
who raised the money and at least
one who was involved as a borrower
from the fund. Thru this hard feel
ing the senate committee hopes to
ferret out the truth about the trans
action.
Mclean to Be Grilled
Edward B. Mclean, millionaire
Washington publisher, is reported
hurrying north from Palm Beach to
tell the committee whether he knows
anything about the fund. A subpoena
was issued for Mclean and he wired
his newspaper IN Washington he was
leaving Immediately.
Some prominent New York finan-
ciers, supposed to be "in to know" on
everything in the street, are to be
called to see if they can advance any.
information.
Senator Walsh, leading investi-
gator, announced Otto H. Kahn and
Benjamin f. Yoakum, former railroad
president, would be subpoenaed.
Calling of Mclean created a new
sensation. 1t was his testimony re-
garding a 100000 "loan" to Albert
B. Fall which really opened up the
vraoapf efa rflipo, cooua of the ipO,,iyxy
This testimony was given at Palm
Beach some weeks ago when Mclean
told Senator Walsh that Fall bor-
rowed 100000 in checks to buy
ranch, but three days later returned
the checks uncashed and said he had
arranged to get the money else
where.
Fall previously had said he got the
purchase price of the ranch from
Mclean. McLean's story started
whole train of disclosures, including
E. L. Doheny's story of a 100000
| loan to Fall and J. w. Zevely's story
of a $4,000 Sinclair loan and gave
the committee many new leads bear
ing on the leasing Of the naval re-
serves.
Vanderlip Present
Frank A. Vanderbilt, New York
financier, was scheduled as the first
witness before the senate Teapot
Dome committee today, to tell
whether information or rumor led
him to say that the sale of the Marion
Star by the late President Harding
ought to be Investigated.
While the committee was question
ing Vanderlip, President Coolidge was
expected to select another lawyer to
succeed Silas II. Strawn, Chicago,
whose nomination as presidential
COUNSEL TO prosecute the oil lease
cases was withdrawn late Thursday.
Strawn's nomination was withdrawn
after the senate Teapot Dome COM
mittee notified the president that
Strawn's connection with two Chicago
STANDARD Oil Banks" made his con-
firmation impossible.
Atlee Pomerene, Ohio, the other
lawyer nominated, was not with
drawn, in spite Of objections to him
and indications from the White House
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