The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1924-02-15
VANDERBILT IN
RELIANCE UPON
G0SSIPS TALES
Noted Banker Is Unable To
Give legal Information"
To Oil Committee
TELLS OF RUMORS
Believes From What He
Heard Too Much MOneywas
Paid For Marion Star

senate OIL COmuiCteS Wcut luSO
the story about the sale Of Pres
ident Harding's Marion Star to-
day without finding any evidence
to implicate Mr.. Harding in the
oil scandal.
Frank A. Vanderlip, who gave
circulation to rumors about the
Star in public speech, testified
he had heard rumors only and
knew none of the facts. The
Star owners submitted a state
mept and the committee went no
further. ..
Turning its attention to other
matters the investigators heard
from rhomas JahFson, foreman
of Albert B. Falls New Mexico
ranch, a flat denial that he ever
received any $68,0Co payment
from the Sinclair oil interests.
Reports of such a payment had
been brought to the committee
recently by Archie Roosevelt.
Washington, Feb. 15-Frank A.
Vanderlip took the witness stand to-
day as soon as the oil committee con-
vened. He identified himself as a
retired business man and banker.
Chairman Lenroot read an excerpt
from the Ossining speech as to "a
certain Marion newspaper sold Tor
$500 to two young men under
circumstances that constituted a
challenge to the last administration.
Mr.. Vanderlip then began to eX-
plain that I'm the first instance
some papers had misquot him.
Substantially l said there were
rumors coming from Washington
which went far beyond gossip he
continued. You heard it ever
| where about this story.
Il believed that out of respect TO
President Hardings memory this
scandal, for I believe it scandal
should be coldly looked at
He said he considered it "a patri-
otic duty to bring the thing to the
! surface because 1T was known in
every newspaper office.
| Can you give this committee in
formation on the subject?' Chairman
Lenroot insisted.
No Legal Information
| Mono legal information. Van
derlip answered. Il have heard
some things about it in quarters
/ which | respect. | heard the price
was $55O,OOO for share in it with
| consideration Of $4,000 year to
be paid to contributing editor
Under questioning he said he un-
derstood that country papers were
usually valued on a basis Of IL per-
cent earning power.
I've heard the Marion Star earn
ed around $4,000 a year" he con-
tinued, with $4,000 in particular
ly good year.
That would justify a value of
$360,OO0 for the paper Senator Len
root interjcctcd.
Yes" Mr.. Vandcrlip continued.
All the differences were in these ru-
mors that too much was paid for the
paper but l never said anybody con-
nected with the oil business had paid
any money in the transaction.
hope that by bringing out the Sian.
would get at the truth and clear the
memory of President Harding.
Lenroot Caustic
Did you think it likely that trutl
would follow on the heels Of sland
err Chairman Lenroot continued
That by uttering these things
which are slander if not true yol
were fulfilling public duty?'
Mr.. Vanderlip insisted his purpose
was as given because rumors like
these make reds faster than an!
Soviet propaganda.
Asked why he did not come to th'
committee first he did not ASSUME
the oil committee was interested il
the sale of newspapers
The banker said he had heard tn
: rumors about the sale of the Sta
from various sources but that non
who related them presumed to hav
: facts. Vanderlip said he had neve
heard of ANY million dollar slus
!. fund until he saw the headlines o.
it in the papers this morning.
Denies Grudge.
'There is distinct difference be
2 tween rumors and gossip, when yo
e get these things in responsible quar-
i ters you had better Look out" sal
4 Vanderlip.
/ You'd have this committee bt
q lieve your only purpose was to clea
Mr.. Harding's memory
ut was," he replied, II am life
8 long Republican"
q "How many people spoke to yo
concerning these rumors concernin
!, the Marion Starr" asked Senate
= Adams.
= "Oh, possibly about dozen. RI
mors were current in New York an
:. Washington"
III Senator Adams asked for names {
y his informants.
}! II do not care to give Names" Van
II derlip replied. There were man
d people. In no Case did they profes
It to know the facts. They were COZ
l. :erned abO-: She matter"
!. "Ther. :. ~asther rumor, since y
~ y