Evening star., 1928-03-13
Treasury Head and G. o. P.
Chief Admit Being Ap-
preached in Effort to Shield
Oil Kings Contribution.
BOTH DENY HAVING PART
IN SECURITIES DISPOSAL
Secretary Joined by Butler in Plea
of Ignorance That Oil Scandal
Loomed-Explain Their Silence
on Matter to Committee.

The efforts of Republican national
chairman to dispose Of bonds turned
into the party treasury by Harry ?.
Sinclair was traced through another
graphic chapter today by the Senate
Teapot Dome committee.
Two outstanding Republican leaders.
Andrew w. Mellon and william n
Butler. told the Senator'S how VIII Hays
had sought unsuccessfully to parcel out
consignments Of bonds to them in 1923.
while Hays was Republican national
chairman, in exchange for "contribu-
tions" to the party war chest
Hays himself corroborated this testi-
mony. but again denied that he had
done any wrong. He said he had not
disclosed the information in his previous
testimony before the committee because
he felt it vas irrelevant.
Mellon Explains Silence.
Questioned mercilessly during two
hours on the witness stand. Mellon,
who has been Secretary Of the Treasury
since the beginning Of the Harding
administration, insisted that he also
had kept quiet these past four years
because he could not see how any good
purpose would be served by disclosing
that Hays had approached him.
Mellon said he understood the $50,-
600 IN bonds rendered him by the then
party chairman came from Sinclair.
Butler. now Republican national chair
man, testified he did not know the
source OF the $4,000 Hays sought TO
give him in exchange for contribution"
of like amount to the national commit
tee. Each thought the purpose vas 70
prevent the record from showing the
whole bond contribution came from
one source.
Bonds Were Rejected.
Mellon refused the bonds. he said. but
he declared that at that time he knew
nothing Of the naval oil scandal which
has been pending for five years. He
said Hays In 1923 had told him Of q
large subscription to the Republican
party by Sinclair.
The Secretary said Hays, q former
Postmaster General. had sent him the
100000 IN bonds from New York. He
took them 10 his home for Safekesping.
and day or so later. when Hays called
on him. he told him he could not ac-
cept them. because the deal would not
be what il purported 10 be.
A few days later he sent the bonds
back 10 Hays IN New York. in the care
or s Parker Gilbert, then UnderSecre-
tary OF the Treasury and now agent
general for German reparationS.
Contributed SSe.eee.
On December s. 1923, Mellon laid he
sens Fred W, Upham, treasurer Of the
Republican national committee, q $50
ouO check TO be used i'll wiping OUT the
committees debt
Senator Walsh. Democrat, Montana.
committee prosecutor. reminded the
Treasury ctficial tina, the Teapct Dome
investigation had been i'll progress q
month when HAYS approached him re
earcing the bonds, but the witness said
he could not keep pace With the SEN
ate's Investigation
Founding the committee table and
raising his piercing voice as he replied
TO his tnQuiSitorS, Hays declared he took
flll responsibility for having asked SIN
clair 10 contribute. and for the methods
he subsequently adopted tc set the
$2So,Ooo of Sinclair bonds OUT OF the
Treasury'S strong box.
Hays Sticks 10 Denial.
When Sinclair made the contribution,
Hays said, he knew nothing os the Con-
tinental Trading Co, and the 5000 OC0
pront II piled up and Gi$ourSed nlySssri-
ouSly after Teapos porls was leased 10
When he said he had not previously
disclosed his approaches 70 Mellon and
Butler because he telt they were "lr-
relevant" he was asked by Walsh III
Montana, the committee prosecutor.
whether II should ee hidden ''it ycn
attempted to oriee 4 cUoiic csfsciai With
such bonds and he rejected Scu"
fhatS an unfair question" ne re-
torted.
Ordered 10 Sit Down
As the examination " the former
Republican chairman prIS'eeClSd ~ tssS
accompaniment " frequent personal
utfS, II became manifest that Wal$h
VAS seeking ~ draw contrast h.
tween Hays SWORN testimony w rgevi-
auS ceea>sonS and to-day
The prosecutor went back - Mavvh
-, lssA, when HAYS told the c<WiiMtsteS
Sinclair could NOT g<NS>ihty have given
the party fund nicIe than $ss,poe IN n
certain kind NJ NAndS Then the reS>Id
NJ the witness testimony cn March
last, VAS produced,
once when HavS get ny cut et his
,har, Walsh Maid,
sit down sit down"
Hays did ~ hurrtedN,
Walsh eeeaa's very rigorcuS making
-" .NNNe" "Nt*'s ANsSS tt"N NV@tNN t%fS
ecnd story and demanded,
"Now the only SIsteNnce h that WA
denied that YOU sol Sinclair CSNlSa,t~
dated eeads when WA atd set Sinclaw
Government handSF"
hays disputed that and het atgu-
nent enSued
Walsh ealtcd attention ~ he pro-
eeested With his questioning that IN late
iasa the Continental i1ading Co gos
four packages ~ Liberty eanStS eAn~
tanning sss,NoA each; that sinclair
eventually gave tive national CxNnNts~
lee ssS,oea; that $aA,aNN Mas the
amount d 4 William Awe ThenysaN
laaa and tina, saS NNa ives thN total