Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-11-08

nav Railroad by lease; the Detroit &
Toledo Shore Line Railroad and the
Detroit Terminal Railroad by purchase
of capital stock.
here and that his usual balance was
$4,000 or $4,000. He also kept per-
sonal account in the Fort Worth Ma
tional Bank, Fort Worth, Tex, with a
daily balance of "a few hundred dol
lars"
Names League Head.
Senator Blaine asked Arnold II he
would give his permission to the COM
mittee to examine these personal &C
counts and the accounts of the Amert-
can Taxpayers League. Arnold said he
would rather consult with officers OF
the league first. Blaine told the witness
he could subpoena the bank officers, and
finally Arnold gave the committee the
name of w. M. Thompson of Portland,
Greg, as the president Of the league
and the man the committee might tele-
graph for permission to examine the
accounts.
Arnold said he had no personal OBJ
lection to the examination. Senator
Blaine told him that he was chlet1y IN
terested in the accounts at the Munsey
Trust Co. and asked him If he had any
personal objection to the committee eX-
amining the Taxpayers Leagues ac-
IT, should saw not" Arnold answered.
In reply to Senator Blaine, Arnold
testified that he had no personal prop
erty, no stocks and bonds, no household
goods and no real estate ito amount 10
anything"
Letters touching on the, Taxpayers
Leagues political activities In behalf OF
agricultural rates in the tariff bill were
read by Senator Caraway. One of these
letters, sent by Arnold to Brown White,
at San BGnito, Tex, last July 20, dis
cussed the need" of one vote n Texas
in order to pass the tariff bill.
Talked to Repu-:cans.
Arnold wrote that he had talked with
Senate Republican leaders, who are
disguised with Southern Democrats,
who get credit for raises In agricultural
rates on schedules affecting their States
and then vote against the bill.
Senator Caraway asked Arnold which
Republican Senator he talked with and
the witness said he could not recall.
"You can't recall or do you refuse to
answer" Caraway asked.
at can't recall" Arnold answered.
isn't it unfortunate to have mem
DRY that can't recall back to last July?"
Caraway asked.
Referring at the outset of the hearing
to testimony Arnold gave before the
House ways and means committee In
1926 when the tax revision bill OF that
year was being discussed, Senator Cara
way asked Arnold If he had not refused
to answer questions about repositories
of the American Taxpayers League In
Connecticut and Wisconsin.
Caraway quoted Arnold as having
said at that time, II do not care to give
you the names for the purpose for
which you want to use them"
Caraway asked Arnold why he OBJ
jected to furnishing the information,
and Arnold said he thought it best to
confer with officers of the league before
divulging the information. Caraway
also quoted Arnold as having said at
that time in answer to the question of
what his occupation was, Directing the
course of human events"
Arnold identified the answer as being
correct so far as he knew, and said he
probably was "a little broad"
When the committee had finished
questioning Arnold for the time, Miss
PopkinS was then called to the stand.
Conviction Is Recalled.
Senator Caraway brought out that
man who audited the books of the
American Taxpayers League during a
period of several years was convicted
and sentenced to prison on a charge of
false report of a financial statement.
This conviction, however, involved a
concern in Maryland.
Senator Walsh of Montana read into
the committee record extracts from
Maryland court reports giving the text
of the indictment and the courts opin-
ion in the case in full.
Referring to the matter, Senator
Caraway said:
"You knew he had been in the peni-
tentiary--was that the reason you Sc
lected him?"
mo, indeed" Arnold stated.
Caraway then referred to year dur
ing which he said the man who au-
dited the leagues books had been in
the penitentiary. did he skip your
books that year or audit your books
from the penitentiary?" Caraway asked.
Arnold said he did not know that
he had any information about the case
and did not know about the audit in
question or the details of the matter.
Questioned on Loan.
Later Senator Blaine questioned Ar
mold at length about the item Of $4,000
which Arnold testified he loaned the
Taxpayers League and asked Arnold:
"You are submitting this account Gre
ferring to the account of the leagues
financial business during the year in
question: from the auditors report?"
EYES," Arnold answered.
Senator Blaine told Arnold that the
accounts before the committee did not
show that he had loaned $1,000. Arnold
replied that he had the Cancelled check
| and would furnish it to the committee.
Senator Blaine told reporters at this
point, while the investigation of Arnold
was directed into other channels, that
the account of the American Taxpay-
ers' League furnished the committee
| from the leagues offices did not show
that Arnold had loaned the league
| $1,000. Senator Blaine said that the
auditors report on the leagues finan-
cial operations did show that Arnold
| loaned the league $4,000.
| Referring specifically to the reported
| auditors report and to the leagues
books, Senator Blaine stated: 81 shall
bring that out. Here are the books
and the discrepancy is apparent"