The Omaha morning bee. [volume] (Omaha [Neb.]) 1922-1927, 1924-02-16
Vander1ip
Fraud Hint
Other Bankers Deny Know
ledge of Slush Fund--Prob-
ers Take Recess-Stock
Market Slumps.
Counsel Are Approved
By Associated Press.

oil committee took ~ days 1ece1
tonight after receiving information
which discredited two of the most
sensational rumors which recently
have come before it.
Frank A. yanderlip, whose public
references to the sale Of President
Harding's Marion Star had shocked
the country, told the committee he
himself did not believe the rumors
to which he gave circulation; had no
facts to support them, and had made
no efforts at verification.
Otto II. Kahn and b. F. Yoakun
who had been depended upon as prin-
cipal witnesses regarding the story
of a 81 .O00,0 900 oil slush fund, notified
the committee they had no knowledge
whatever about it and were ready to
say so on the witness stand.
The adjournment was announced
after an executive session at the end
of the day. II was explained that
Senator Walsh. democrat. Montana,
the dominant figure in the pressing
OF the inquiry, found it necessary 10
bs absent from Washington for some
days.
The senate oil committee approved
the nomination Of Owen j. Roberts
and Atlee Pomerene TO be special gov
eminent counsel in the oil cases.
Approval was without a record
vote. Those opposing Mr.. Pomerene
intend TO carry their fight to the
senate floor and Senator Dill. demo-
crat, Washington, said he would IN
sist on consideration Of nomination IN
open executive session.
Washington. Feb. 15.-Louis II.
Brush. one of the men who bought
the Marion Star from President
Harding. testified about details OF
the sale today before the oil com
mittee.
The Marion publisher testified that
he and Roy D. Moore had been the
sole purchasers Of the Star and that
the funds were their own except such
as they borrowed from Ohio banks
Against these ordinary loans" he
added. stock OF the Star has been hy-
pothecated as collateral for the loan.
Washington, Feb. I5.-No evidence
TO implicate President Harding in the
oil scandal was developed today when
the senate oil committee began its in
auiry into rumors regarding the sale
of Mr.. Harding's Marion Star just BE-
fore his death.
The committee heard detailed tes-
fimony in refutation of the Star story
but none in support OF it.
Washington. Feb. 15.-Frank \.
vanderlip told the senate oil commit
tee today that he had no facts what
ever TO 60 on when he recently
brought the name Of President Hard
ing into the oil scandal.
His Ossining speech. asking for an
inquiry into circumstances surround
ing the sale OF Mr.. Harding. Marion
Star. he said. WAS because he thought
it a public duty" 10 call attention 10
current rumors so as 20 stop them.
II don't even know the price the
paper sold at" vanderlip said. The
current story WAS $3.50, ,ooe.'
He regarded the rumors, he said.
as akin TO the whispering campaign"
that marked the last month Of the
Harding campaign in 1890.
II had full basis for what ] ssid,'
he continued. "that these were cur
rent rumors."
"I had never heard any intimauon
that the money paid for the Star
came from oil interests.
II thought that my statements
would bring US the truth and kill
those rumors."
Questioned about his statement that
the committee had not dared 20 push
the questioning OF Albert 3. Fall.
lvanderlip said IL vas an impression
/ he got from the newspapers.
The witness admitted that he had
TO, read In the newspapers that Fall
had claimed constitutional immunity.
although that story wss published
prominently by practically every
newspaper in the country.
You thought II your public duty
10 broadcast rumors which n not true
were a reflection on the dead-" asked
Senator Lenroot.
Il thought II my patriotic duty 10
bring out the truth and thus scotch
the rumors." was the reply.
ITO Clear Memory
Il was life long friend Of Mr..
Harding. | wanted TO clear his men,
ory That was my only purpose,
II would not care 10 do that" Van
derlip said when asked for the names
Of some OF the persons who repeated
the Snmor 10 him. lie said there
were so many he could not remember
them all.
Nanderlip took the witness, stand as
soon as the oil committee convened.
senator Walsh. democrat. Montana.
opened tho proceedings by reading a
newspaper article declaring that
members Of the committee had forced
Chairman Ienroot to subpoena the
New York banker IN spite Of his IN.
willingness.
II talked WITH Chairman Lenroot."
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