The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1928-03-13

wanted advances made on the bonds,
which could be refunded later"
Whom did he say he got the
bonds fron?" {.
From Mr.. Sinclair"
What was said about avoiding
the appearance of large subscrip-
tion?" asked Walsh.
THAT may have been largely by
inference" Mellon replied. He had
this large amount of bonds and he
wanted the funds so the large sum
would not appear on his records"
How much did he say was the
deficit?"
'Ovcr a million dollars"
Hays Comes In
Will H. Hays entered the room
while Mellon was testifying.
Mellon said the Hays transaction
took place during the winter of
1923, in November, I think"
Don't you know that the Senate
committee began taking evidence
relative to Teapot Dome on October
%, and that you were approached
with these bonds about a month
1ater?" asked Walsh.
THAT may well be-" said Mellon.
81 didn't keep track of these inves-
legations. I have troubles enough
of my own"
Mellon said his check to Upham
was dated December s, 1923.
II didn't send the check for a few
days after l talked to Hays" said
Mellon. 1T may have been that /
didn't have that much money at the
time.''
This gave the crowd a laugh.
Kept Bonds Few Days.
"What was the length of time
you kept these bonds.
II suppose two or three days
1t may have run longer. It's pretty
hard to tell. I have no record Of
it,.
Walsh placed in the record copies
OF all correspondence between him
self and Mellon. The latter agreed
to this.
In the first letters, Walsh asked
for the use of Secret Service agents
to trace the bonds of the Continen
tai Trading Company. Mellon read
lily assented, his replies showed.
G. o. p. Fight Brewing
A stormy fight appeared brewing
today in the Republican party over
National Chairman Buffers refusal
to entertain the suggestion OF
Senator William e. Borah that the
party, raise and restore to Sinclair
the $3.50, 900 which the oil magnate
contributed to the party campaign
fund.
Butler rejected the suggestion in
brief letter to Borah, in which he
said whatever the transactions
were, they were done and completed
long before my election as chairman
of the Republican National Com
mittee."
"As 1 see it," said Butler. "the
obligation, If any. for restitution is
upon those who conducted the
transactions"
This line Of reasoning did not
appeal to the Idaho Senator, who
Immediately replied:
Borah's Reply
1.-The party as a party cannot
escape it's responsibility simply be-
cause there has been a change in
chairmanships. This money went
toward paying the debt of the Re
publican party as incurred through
AIS VA SdAAA1LLO1A"
For myself, 1 do not intend to
let the matter rest"
There was a significance in this
last sentence that party leaders did
not overlook. Borah is a sangulnary
fighter, and II he elects to make a
personal issue out of restoring the
81 sc, 900 to Sinclair a situation might
result which would be extremely
embarrassing to the party on the
eve of another presidential cam
paign.
Butler has not replied to Borah's
last letter. The chairman arrived in
| Washington this morning to appear
before the Senate Public Lands
Committee. and 1t was expected he
would make it point to see Borah
| while here.
QuiZzed On Taxes
In ANOTHER letter, Walsh asked
whether income taxes were due
from those who shared in the
profits Of the Continental Trading
| Company" He asked, too, whether
legislation was necessary to ocllect
such taxes?
| Mellon in his reply said the
Continental had filed no income