The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1928-03-01
HAYS REVEALS
sinclair GIFT
WAS S26O,OOO
100000 Later Was Re-
turned to Oil Man, Ex-
G. O. P. Chief TeStifieS.
USED FOR PARTY DEBT
Written Statement Telling
of Transaction Given
to Committee.
Bn Lnitcd Press

By United Press
WASHINGTON, March HAIRY
Sinclair, indicted oil magnate. adj
vanced $260,0O0 in Government
bonds to help pay Off the Repub-
lican campaign deficit Of 1921, viii
II. Hays, former chairman OF the
Republican national committee, re-
vealed to the Senate Teapot Dome
committee today.
OF this amount, Hays said he gave
100000 back to Sinclair later. The
difference of $160,000 was Sinclair'S
personal campaign contribution, he
said.
Hays said he did not know
whether the bonds were those of
the mysterious Continental Trading
Company. He said he had never
heard of the Continental concern
until recently, and that no record
was kept of the seriel numbers of
the bonds.
State Man Mentioned
Senator Walsh of Montana said
that the committee traced $4,000
of Continental bonds to the Re
publican national committee.
Senator Walsh of Montana, was
unable to understand at once many
of the intricate phases of the
financial arrangements, and at one
time he accused Hays of avoiding
his questions.
That's the last thing I would
want to do, Senator" Hays replied.
Were there other contributions
as large as Sinclair's?"
well. think I solicited Daniel
G. Reed Of Richmond, Ind. My I'M
preston is he made a loan or caused
a loan to be made of, I think
100000"
Hays said Col. Robert w. Stewart
Of the Standard Oil Company of
Indiana was not a contributor, nor
was H. M. Blackmer, missing former
director of the Midwest Refining
Company.
Told Sinclair Of Debts
After outlining the efforts to liqui-
date the $1,20O,0OO campaign deficit,
Hays said in a written statement to
the committee:
Among those to whom I appealed
for contributions was Harry F. Sin
clair.
"He replied that he would make
a personal contribution which he
thought should not exceed SIS, 900
He also said he would turn over to
us approximately $185,000 in Gov
ernment bonds in addition to his
contribution for such use as might
become necessary, upon my assur-
ance that he would be repaid the
total amount advanced in excess Of
the $4,000 contribution.
Both the $4,000 and the $l85, 900
we're, think, In Government bonds.
'Seventy-five thousand dollars OF
the bonds constituting Mr.. Sinclairs
personal contribution were applied
on the committees indebtedness TO
the Empire Trust Company through
the chairman of its board, General
T. Coleman Dupont
Fifty thousand dollars of ths
original $l85,000 received from Sin
clair we're returned by ME TO Sin
clair.
"Of the remaining $l35,0O0, I de-
liyered to John T. Pratt of New
York, to the best of my recollection,
$4,000 at about which time he
placed in the hands of committee
/ fVA - l.,
previously contributed Later,
asked Pratt to add that sum to his
previous contribution.
Lack $S5,OOO to Pay
ITO this he agreed, and delivered
to me $4,000 in Government bonds,
but had no knowledge as to
whether they were the same bonds
I had previously delivered to him.
These bonds in any case we're given
by me to Sinclair.
''Of the approximately 5000
remaining, / delivered $4,000 TO
Secretary John W. Weeks of Bos-
ton Qate secretary OF war;. to be
used by him in his efforts 10 raise
money for the deficit and they we're
used by him for that purpose.
THE approximately 100000 re-
naming delivered to Fred w. Up
ham of Chicago for the same pur-
pose and they were used by him for
that purpose.
Consequently, I lacked approx
imately $4,000 with which to re-
pay Sinclair the entire $185,OO0.
felt bound to reimburse Sinclair in
full and / did so, hoping at the
same time that could get some
further help later from others, but
this did not materialize.
II had suffered financial losses Of
which Sinclair knew. He did not
feel that I should bear this burden
personally and he voluntarily re-
turned the $4,000 of securities
which I had caused to be delivered
L II