Douglas daily dispatch., 1928-03-11
Senate Committee Inform
ed Of Transaction by
Treasury Secretary
NAME CLEARED
Liberty Bonds Returned to
Will Hays, Secretary
Writes Walsh

WASHINGTON March 10 Po-
Secretary Mellon informed the senate
Teapot Dome committee tonight that
he received $4,000 of the $3.50 o0GO OF
liberty bonds which Harry F Sinclair
advanced to cover part of the deficit
of the republican national committee
in 1923, but that he had refused to
retain the bonds in exchange for a
like contribution
The treasury secretary disclosed
that the bonds had been sent to
him by Will H. Hays, former chair
man OF the republican committee, and
that when Hays subsequently called
upon him to explain the purpose
he had declined to keep them as
suggested. He added that he had
returned the bonds to Hays and
shortly thereafter made contribu-
ton in the same amount from his
own funds.
Mellon wrote that this was the sum
that ne had intended to give wEien
he was first asked to contribute to
the fund being raised to clean up
the republican deficit, He also in
formed the senate committee that
this was the only contribution he
had made to the national campaign
fund of 1920, exclusive OF $1,000
given during the campaign.
The secretary's letter, addressed to
Senator Walsh, Of montana, prose-
cutor of the senate inquiry into what
became of the Continental Trading
company liberty bond profits from
the now celebrated Humphreys oil
deal, was written after the senator
had forwarded to him the record OF
hearings held by the committee
earlier in the day in which appeared
the name ANDY" along with that
OF "Weeks," Butler" and "Du Pont,' .
These names were written on a
memorandum of the late John T.
Pratt, of New York city, showing that
he had handled $4,000 OF the liberty
bonds and had sent a check for
twice that amount to the late Fred
w. Uphanl, then treasurer of the
republican committee.
After the committee adjourned,
Senator Walsh sent to the treasury
secretary the exhibits produced before
the committee relating to the Pratt
transactions and including the me-
morandum bearing the four names.
81 know nothing whatsoever con-
cerning these transactions, Mellon
wrote, NOR do have any knowledge
as to the contributions to the re-
publican national committee by Mr.,
Pratt.
"I desire to take this occasion, how
ever, to state to you all facts relating
to my contributions to the republican
national committee.
Sometime in 1923 1 was asked to
contribute to the fund then being
raised to clean up the deficit of the
republican national committee. said
/ would help but no amount was
specified Subsequently Mr.. Hays
telephoned me one day that he was
sending me by messenger a package
containing valuable documents and
that he would see me shortly and
explain what was invoIved. The
package contained as nearly as I can
remember $4,000 in liberty bonds.
There had been no previous under
standing of any kind as to sending
me bonds, and until I saw Mr. Hays
later 1 had no knowledge as to the
purpose in sending them to me, nor
did 1 have any knowledge as to con-
tributions in the form of bonds.
when Mr.. Hays called shortly
thereafter, he told me he had received
these bonds from Mr.. Sinclair and
suggested that I hold the bonds and
contribute an equal amount to the
fund. This 1 declined to dc. Accord
inglv I at once returned the bonds
to Mr.. Hays.
"At the same time, or shortly there
after. / made contribution Of
$50 900 from my own funds, which
was the amount / had intended to
Continued on Page Ten)