Evening star., 1924-03-12
Stands on Story Told at Palm
Beach-Makes Sweeping
Denial of Any knowledge of
Leasing Oil Reserves.
THOUGHT PRINCIPAL WAS
DAUGHERTY REFERENCE
Testifes Former Secretary Asked
Him to Say He Loaned Cash.
Denies Connection With Slush
Fund Rumored Sent Here-Ask-
ed Slemp to Florida.

Edward B. Mclean told the oil
committee today that he had given
1t misleading information about the
celebrated 100000 loan because he
trusted and desired to help his
friend, Albert Fall.
The. publisher insisted that his
second story about the loan, told to
aSenator Walsh in January at Palm
Beach, was correct. He said he had
loaned the former Secretary 100000
in checks for ranch enterprise, but
that the checks were returned to
him uncaShed.
: His previous assertion that the
loan was made in cash, he said, was
made at Falls request. The latter
appeared to be in trouble, he added,
but had represented to him that it
had nothing to do with oil
Ignorant OF Leases.
The publisher also asserted that he
himself had no interest in the Sinclair
or Doheny companies and knew moth
ing about the Fall oil policies, ex-
cept what he had read in the news
papers.
Asked about the code messages ex-
changed between Washington and
his cottage at Palm Beach, he was
unable to decipher or explain many of
them. He said William J. Burns had
given one of his employees Depart
ment Of Justice code, but that he
himself never had coded message.
He became secret agent of the
Justice Department. he continued.
shortly after the beginning of the
Harding administration, largely be-
cause the official badge would make
IT easier for him to get through police
lines when travelling with the Presi-
dent.
Thought sPrincipal7 Dauxherty,
The principal" referred to in one
OF the kilograms sent him by his en-
ployes, Mclean said, appeared to him
to refer to Attorney General Daugh-
'erty and did not refer to President
Coolidge. He identified the Attorney
General as the author of the message
assuring him not to worry, because
everything that could be done will
be done by u.s.
Led into long discussion of his re-
lations with Mr.. Daugherty, he said
the Attorney General had lived in one
OF the Mclean houses here for seven
or eight months after coming to
Washington, and that Fall had visited
there often. But he added that Daush-
erty wouldn't do anything wrong for
me-, even if he had been asked
The publisher declared he had never
6ad anything to do with any million
dollar slush fund rumored to have
|oeen sent to Washington for govern
Ynent officials.
Mclean said he invited c.. Bascom
Slemp. secretary to President Coolidge
to come to Florida last December.
senator Ladd, republican, North Da-
Kota. as acting chairman, opened to-
days session by reading a telegram
from r. w. Stewart of the Standard
Oil Company of Indiana, denying that
lie had been in Three Rivers, N. NJ,
IN ISL for conference with A. 3. Fall,
garding naval reserve leasing. A re-
Fort of such a conference had reached
committee members.
III. T.. Mckenna, White House door
keeper, was then called
Mckenna explained that Mclean had
asked that he let him know when
Secretary Slemp left for the south.
Had sIenp's Permission.
Il asked the Secretary if it was all
fright to tell Mr.. Mclean he was GO
ing to Florida" McKenna added. land
he said it was, so sent the telegram,
and that's all there was to it,"
%. w. Startling, White House secret
service man. then was called. He
festihed that his message related to
the employment Of E. p. wilkins of
Hopkinsviile, KY. in the McIesn
household. Wilkins, Starting said.
was his lifelong friend.
The committee then called W. w
Smithers, chief of communications al
the White House, who operated the
Washington end Of McLean's wire al
Palm Beach.
Smithers declared his duties were
purely mechanical; that he paid no
messages handled, and that he took
Ihe job only because he needed the
extra salary.
Paid $50 Week Salary.
Smithers said he got $50 a week
and that he had been employed from
time to time for overtime work as a
telegraph operator by various news
papers. Senator Walsh suggested that
NcLean's tender was unusual en-
pioyment," but Smithers said he did
not 50 consider 1t. He was seeking
overtime employment, Smithers said.
The moment my name appeared in
the papers," he added, II got out, but
not because 1t was wrong"
As to the messages moving over the
wire, Smithers said, his duties were
purely mechanical" and he paid no
attention to what was done with the
copies. He had seen. John F. Major,
confidential agent Of Mclean, destroy
some of them. ~
Why did you take that job?' ask
ed Senator Dill, democrat, Washing
ton.
Because needed the money"
His salary, he said, was $2.500 per
year. Senator Dill said that he
agreed that was not enough for the
work"
j. v. Fitzgerald. formerly employed
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