Evening star., 1924-03-22
viii H. Hays, on Stand, De-
nies Teapot Lessee Gave
$4,000 Shares of Stock to
Make Up Party Deficit.
WILL RESERVE EVIDENCE,
OPERATOR DECLARES
Denies Fearing Testimony Before
Committee Would Incriminate
Him, But Stands on Lawyers
Contention That Committee
Lacks Jurisdiction in Case.

AnSho Vul1SolCtAOh Ill SooSs
The oil committee voted unani
mously today to certify Harry F
Sinclair to the Senate for contempt
as a result OF his refusal to testify
further before the committee
The decision as to the exact pro-
eedure will be held in abeyance I'M
til the return of Atlee Pomerene and
Owen ]. Roberts, special government
counsel in the oil lease cases.
Senator'S said two courses were
open-contempt proceeding before
the Senate itself or certihcation OF
the case to the district attorney OF
the District of Columbia for grand
jury proceeding.
Alter failing to induce Sinclair to
testify, the oil committee today
received from Will H. Hays a fiat
denial OF the story that Sinclair had
contributed a large batch of oil
stocks to wipe out the deficit in the
republican party treasury after the
1920 campaign.
Sinclair refused to testify after the
committee had voted unanimously to
overrule the objections of his attor-
neys. Despite the committees posi-
ton, he said, he must reserve what
ever evidence he has for the courts
Hays followed the oil operator and
Teapot Dome lessee Immediately on
the witness stand.
DO. you know the witness who has
Just left the stand?" asked Senator
Walsh, the committee prosecutor.
Yes, sir. for eight or ten years."
replied Hays.
1T has been testified to before
another committee" went on Senator
tain stock to wipe out deficit of
the republican national committee.
Tell us about it," =
II can't tell you about it," returned
Hays. ut is not true" ~
You saw statement in the New
York Times that you would testify to
such a donation?"
Calls Story False.
Yes, but that story is untrue. 1t
is false
Hays said he had no idea as to the
source of the Times statement.
Would it surprise you to know
that that information came from your
officer" asked Senator Walsh.
1T could not have come from there"
was the reply, 'as it is not a fact"
Hays identified Joe O'Neil, former
newspaper man, as an employe of his
office. Asked if O'Neil had not given
the statement to the Times, Hays said
he could not have done so, as there
was no basis for the story.
Asked About Deficit.
Please tell US what Mr.. Sinclair
had to do with making up the def
Ctr said Senator Walsh.
Il assume it is not the purpose OF
the committee to go into campaign
sumo the committee considers that ir-
relevant as l do. Besides, l am not
the source of information now"
The witness then began a long
statement about the general subject
of campaign contributions. Senator
Stanfield, republican, Oregon. object
ed, saying that this question is i'm
material and irrelevant" but Senator
Walsh insisted the question he had
put was relevant, and there was a
long wrangle.
Senator Stanfield's motion finally
was voted down, to 4.
Places Gift at $75,OOO.
Senator Stanfield then called Hays
attention to the law of contempt to
indicate to him that he did not have
10 answer irrelevant questions. The
former Postmaster General and re-
publican national chairman said he
did not desire to decline to answer
any questions: that he would state
again that the story about Sinclair
giving $4,000 shares of stock was
false.
Il could only give my best judg-
i 49,
did not exceed $4,000
Hays said that some time after he
retired from the cabinet. in 1922, he
suggested to Sinclair that he help
make up the party deficit.
1T must have been two years
after the 1920 election" he said.
"Yes-it must have been a year and
a half after I left the cabinet"
Il may say in passing, that never
heard of any lease on any naval re-
serve to anybody, directly or indi-
Tectly. until L read about them in the
newspapers a month or two months
after / left the cabinet"
~ am trying to fix the time you
so.rited Mr.. Sinclair" Senator Walsh
said.
Il think it was in the summer of
1873 said Hays.
He could not recall where the con-
vcrsation took place.
WAS the contribution paid to you?"
mo, not paid to me. l helped to
handle the funds. 1 asked Mr.. Sin
clair and others to contribute. AS l
recollect, Sinclair told - he would
be responsible for -ximum of
$4,000. l think that $4,000 went
to a part payment on a note at the
Empire Trust. The details of this
I'll have to ask to get from the COM
1nittee."
We'll, from whom"
Mr.. Upham (Fred Upham, the party
treasurer), 1 should think. Together.
we can furnish It."
lis it not true that you had fund
In the north separate from these
other funds?"
mo, that's not true"
Asked about the testimony of G. d.
wahlberg, former private secretary
to Sinclair, that he had given S25,000
in liberty bonds to a Mr.. Hayes"
the witness said he had no facts on
the subject He added that the ref
erence might be to Hinkle Hays of
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