Evening star., 1928-03-13

COmmlttee.
Mexico. asked Hays if he did not regard
the Sinclair transaction as diScrcditablc,
but the witness denied that.
Then whv vas the effort made to
conceal the Sinclair contribution" CUT
ting demanded
MY motive was not an effort to con-
ceal the Sinclair fund. but to set money
to wipe out the deficit before the ma
tional committee meeting" Hays said.
Silent on Restitution.
Cutting asked if he did not agree
that restitution to Sinclair should be-
made by those who conducted the
transaction.
What has that TO do with this mat
ter?" Hays asked. adding that If the
committee was going into that 1t
should go into political'party financing
generally.
After long questioning as to whether
the members of the Republican national
committee knew the party organization
was indebted to Sinclair for 100000
after the Teapot Dome scandal had be-
gun TO come to light. Hays said there
had been no purpose to keep the facts
from the committee.
Hays was excused after being on the
stand more than two hours. The COM
mittee then adjourned until 10 am.
tomorrow, when A. v. Leonard OF Chi
cago will be heard before Chairman
Nye and Senator Bratton leave for Chi
cago to take up the inquiry there.
NotabIes Attend Hearing.
Facing the investigators in COM
mittee room jammed to the doors win
a crowd which included many notables,
the Secretary took the stand Just as
Butler walked in carrying an unlighteo
cigar. Butler sat down beside Mellon
and chatted with him moment,
Mellon took the witness stand ahead
of time so the photographers might
shoot" him. He looked straight at
the camera without a smile. Nearby sat
former Gov. Allen of Kansas. and Jo-
seph P. Tumulty. who was secretary to
President Wilson. and Mrs. Alice Roose-
velt Longworth, wife OF the Speaker OF
the House.
Mellon was placed under oath by
Chairman Nye. The veteran cabinet
officers right hand wayered slightly as
he held it aloft during the oath.
HAYS. former chairman of the Repub-
lican national committee, reached the
room just as Mellon began TO testify
II had a phone call from Mr.. Hays
from New York saying he was sending
me the Liberty bonds and that he would
come To Washington TO see me about
it." Mellon said.
Received $4,000 Bonds.
It was busy at the time and laid the
package aside. I kept on being busy
and forgot them. The next morning /
opened the package and saw that It
contained bonds"
In what amount?" asked Senator
Walsh OF Montana, the committee
prosecutor.
Fifty thousand dollars. Mr.. Hays
did not como that day and / took the
bonds nome for safe keeping. as had
mislaid the combination to my Office
safe
Mr.. Hays came on here. He was
going to Indiana and / said ! would
send them on 10 him at New York.
This I did through s. Parker Gilbert,
then, Undersecrctary OF the Treasury"
What was the denomination OF the
bonds?" Walsh asked.
Il did not notice
did you keep any record Of. the
numbers?"
No
when Hays came. what did he say
, TO you?"
Generally. 1t was that he had a
| large subscription In bonds and he
asked ne to take these and hold them
and that make a subscription 10 the
committee Republican national COM
mitteeI TO discharge the hangover of
| debt.
Il objected 10 doing so BECAUSE ]
would be making subscription that
was not what IL Durported 10 be. As
| far as recollect he asked me 10 make
| loan and hold the bonds. but 10 me
| that was the same thing. told him
| ] would make bona fide subscription
and that had expected To make a
| subscription. as ! felt ! was obligated
! TO make one. said l would send one
! for $50, 900. About that time ! sent a
check 20 the treasurer. Mr.. Upham. a,
Chicago for $50 1000
AS ! said In my letter 10 you Sat-
nrdav. had given only $4,000 10 the
| Harding campaign"
Had No Thought Of Office
Early In the campaign Mr.. Hays
! called me on the phone from New York
and asked me 10 invite some people u
| luncheon and that he and William
| Boyce Thompson would explain the
| financing plan. He said subscriptions
were 10 be limited 10 $1,000. 81 900 be-
fore the convention and 81 900 after
the convention. had no thought then
of entering public office"
Mellon explained that he saw Hays
in New York and was given a SIS 00f
quota for the Pittsburgh district ~
formed an organization, he said. and
the quota was oyefsubScrihed.
1t Was all done consistently witt
that plan. subscribed $4,000 as die
my brother and my nephew" the Sec'
Tctsry continued.
As he talked the Secretary sat faI
forward in his chair with his f0rcafm'
on the table Senator Reed. Repubii
can, Pennsylvania, close persona
friend sal near him
What explanation did Hays make
about where The bonds came ffom3'
Senator Walsh asked.
$500, 600 Contribution.
"He said ne mad a large amount !
seems ~ nie 1T was around $500 900
fts difficult t0 remember details now
He wanted ~ Use them ~ that theT'
would not be- one large subscription u
the party"
did Hays tell you where he got tn
bonds1" Walsh pursued
ON. from Sinclair" said the Sere
tsTy ss he moved back In his chair
What obi you understand IN be III
detlcit al that timer"
ms moi very clear, but II Was II
exeeas 0f 81 900 900 4"
Did any of your banks make an
, l0su ~ the Republican national com
mjtiee?"
no Thai subscription ffom sinclsl
. tDDked up0n as Without signiiieaDGt
had no knowledge Gf any irfegula
proceedings regarding Teapot Dome
You see. ihst was IN Tie Winter u
! 1923"
LET me- csil your attention that ia
ticking ~ testimony in The naval .
teaAsk bsasD iu 0etotJe4 1923 sna tn