Evening star., 1928-03-13

whether In 1924 he denied that he had
received $4,000 Of bonds of the SIM
clair Consolidated Oil or whether his
denial was that the Sinclair Consoli-
dated stock was put up to wipe cut
the Republican party deficit.
Butler Assails Borah.
The Butler-Borah exchange over the
Idaho Senator's demand that all of
the Sl60,000 In Sinclair bonds, which
Hays finally retained to use toward the
oarty deficit. be returned to their original
source was out in the open today with
a sharp reply from the former Massa-
chusetts Senator. who also criticized
Borah for not making public their en-
tire correspondence In the first place
Replying to the Senator's first appeal
Of March S. Butler. In letter dated
March 7 and made public here last
night, declared that 1.-The obligation. IL
any" for restitution OF the bonds rs
upon those who conducted the tranSae-
ton"
Whatever the transactions we're" he
wrote. they were done and completed
long before my election as chairman OF
the Republican national committee.
During the period OF my incumbency
OF the Office of chairman. did not. nor
did the committee or the party. receive
the securities or the money, and neter
had them"
He added, however, that the hear
ing had not been concluded and that
Ii 1t appeared later that Borah's con-
tentions had been borne out he would
give sympathetic attention" To the re-
turn proposal.
Replying under date OF March g.
Borah said he had not written In the
belief that Butler was In any way re-
sponsible for the Sinclair transaction.
but only oh the theory that you are
now chairman OF the Republican ma
tionai committee and that the Republi-
can party Is a continuing institution" +"
In a statement issued at Boston be-
tore he left for Washington last night.
Butler characterized Senator Borah's
first statement as a 'one-sided affair"
since he had made public a copy Of
certain portions of a letter which he
wrote to me, but he did not give my
letter To the press. as he had perfect
right to do and as he should have
done"
Chicago Hearing Planned.
Should the Teapot Dome committee
conclude with It's three important
witnesses today. 1t was regarded as
likely that II would shift It's attention
tomorrow to Chicago. where II will take
testimony along the same lines as have
been followed IN the past few days,
II had been announced that special
attention would be given, after the Re-
publican leaders had been questioned.
10 the disposition OF the 100000 In
Sinclair bonds which Hays sent 10
the late Fred w upham. treasurer OF
the Republican committee In 1923.
Hays already Is on record with testi-
mony that while he personally solicited
contributions from Sinclair he had no
knowledge when these were received
of the Continental Trading Co. some
of whose bonds Sinclair previously had
delivered to Albert Il, Fall after the
oil operator had obtained the Teapot
Dome lease from the then Interior
Secretary.
To date. the committee has only
partially traced more than half Of the
So, ,080. 900 overnight profits OF the
Continental Co. Besides the $500 900
In these bonds which Sinclair Is known
to have handled. 100000 have been
trailed TO Harry NJ, Blackmer and S10O.-
900 to James u. O'Neil wealthy Ameri%
can oil operator. who have exiled Them
selves IN foreign lands while court and
committee subpoenas await them.