Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1924-02-26
Testimony Presidents
Secretary F ails to
Throw Liz h t on
Reported $780,
900 Given by Nc
Lean-Sen. Walsh to
Search Out Possible
Wire Exchanges Be-
tween Washington
and Palm Beach

Washington, FEB. Turning ltS
attention once more to the Mclean
Fall incident at Palm Beach. the
senate Oil committee today heard on
behalf Of the White House a posi-
tive disclaimer OF any previous In
side Information on the subject and
developed new mystery regarding
the now famous 100000 loan which
Albert b. Fail obtained while he
was in the cabinet.
G. Bascom Slemp, secretary TO
President Coolidge, testified that he
not only had no prior knowledge OF
the truth regarding the loan. but
he discussed the subject at Palm
Beach With both Fab ana Edward
Il. Mclean. publisher OF the Wash
ington Post, and urged that they dis
pose OF the many rumors in circula-
ton by telling the committee the
whole story.
Promising to tell all, Mr. Slemp
said, Mclean testified before Sena-
tor Walsh. Democrat, Nor tana. on
the same day that he had given
ran two checks aggregdtil 9 500
900 late In 1921. but that they had
been returned to him uncashed. To-
day. however, the committee learn
cd from an examination OF the
records of Washington banks that
the publisher did not have an ag-
grogatc of 100000 on deposit at
that time in the bank on which he
/ IL,
Having learned that Mr.. Slcmp
had conversations with both Nc
Lean and Fail regarding the oil
scandal Mt Palm Beach last month.
Senator Walsh will seek tomorrow
10 ascertain whether any individual
members of the committee commu-
nicated by telegraph or telephone
with either of them at the Florida
resort or with Fall at New Orleans.
Should the records in the Offices of
the telegraph and telephone COM
panicS here disclose that there was
such communication. the commit
tccmcn involved will be given m OPP
portunity TO make IL stlt:Iccnt in Tie
public hearings.
After hearing Mr. Slemp the COM
mittcc received from If. Foster
Balm. director OF the bureau, of
mines, testimony that Fail had told
him that the contract with the DO
hcny interests for oil tank storage
at Pearl Harbor. Hawaii. had been
discussed by the cabinet and that
Attorney General Daughcrty had
made no objection to il.
The attorney general. in Il letter
today to Senator Willis. Republican,
ONO, again denied that he had Civ
en- an oral or written opinion as to
tho legality of the oil leases and at
tho same time stated he had pur-
chased stock of the Sinclair Con-
soiidated oil Company after he came
INTO tho cabinet but had sold il az u
loss.
Taking the oil discussion again to
II" floor OF the Senate. Senator
Walsh charged that the Republican
National committee news bureau
tad made a deliberate and malic-
lous misrepresentation of tho facts"
~ itS statement yesterday that the
NaNat oil leases were made under the
general leasing act of February,
l"@G, which he had sponsored.
ItcplyinE to a statement tonight
the news bureau asserted that Sen
40" Walsh's declaration that the
hut under one passed in June. 1920.
was "A quihble for the purpose of
miSroprcscnting the facts,
Chairman leuroot and others of
The oil committee. indicated that
there was no intention 10 recall
William G.. McAdoo. Il candidate for
the Democratic presidential nomina-
ton. for questioning regarding his
statement Saturday that his then
New York law firm would have re-
ceiied an additional fee of S9W,0W
II the negotiations in The noheny
company's Mexican affairs had been
successful.
Carl c. Schuyler. n Denver attor-
ney who was counsel for J. Leo
Stack, whose claims to rights in Tea
pot Dome were purchased by Harry
+. Sinclair. arrived here today to
present 70 the committee tomorrow
correspondence regarding oil mat
ters which has been described as
sensational
Announcement was made that
Sinclair would not be recalled for
questioning until after the expert ac-
countants now examining books or
brokerage firms in Washington. New
York and Cleveland, have furnished
me committee the results of their
work. Likewise, no definite date has
been fixed for the appearance on the
witness stand of Edward b. Mclean.
who will be asked to clear up the
mystery concerning the SlWOCO IN
checks he claims to have given Fan.