Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-01-07
MUTT SAYS LUCAS
EXCEEDED POWER
IN SECURING LOAN
G. O. P. Treasurer TestifieS
of Fellow Officers Use
of Special Account.
DEFENDS SETTING UP
OF 1890 $4,000 FUND
Nye Investigating Group Informed
He Believes Way Norris Was
Fought Unwise.
BY G. GOULD LINCOLN.

JOoSplL " NutIS tlcdouAcA Va LAC 1ec-
publican National Committee, today de-
Tended before the Nye Investigating
Committee the establishment of the
$4,000 special account" for use in the
1880 congressional campaign, which has
been characterized by Senator Nye and
others as q possible ''slush fund"
Mr.. Mutt said that the account had
been established by him at the sugges-
ton of Representative Will Wood, chair
man of the Republican Congressional
Campaign Committee, and other party
workers with whom he had consulted
in October. on the theory that the
G. o. P. was in danger of losing num-
Der of contests In congressional districts
and that more money was needed in
these districts to aid the Republican
candidates.
He said that $4,000 of this special
account had been expended, sent into a
number of States for use in contests for
House elections, and that he had re-
ported the use of this money to the
clerk of the House ON October 30, when
he accounted for $4,000 and recently
accounted for another $4,000.
Heard Later Of Lucas Fund.
Mr.. Mutt told the Senate Investi-
eating Committee that he had never
heard of use of money by Robert H.
Lucas for literature to be sent into
Nebraska to fight the reelection of
Senator Norris until he had read it in
the newspapers, after the fact had been
developed by the Senate committee.
In reply to question by Senator
Din Of Washington as to whether Mr.
Lucas had exceeded his authority when
he pledged part of the special ac-
count" as collateral for loan of $4,000,
made 10 him by the Commercial Ma
tional Bank, the proceeds of which Mr..
Lucas used to pay for the literature
sent at his order to Nebraska ana sew
eral other States. Mr.. Mutt said:
He exceeded his authority. This
special account was set up for one pur-
pose only. It was to be used in the
ousrcsasOg1Hl campaign, and In dis
tricts selected By Chairman Wood, Sem
ator Fess Of Ohio and other party lead
Sends Lucas $500.
Mr.. Mutt said that when he had heard
Mr. Lucas note at the bank. behind
account of the National Committee, was
due January 2, he called Mr.. Lucas on
the telephone at his home in Louisville
and asked what prospect there was Of
his paying it OF Immediately.
He said Mr.. Lucas told him he was
having difficulty raising the money be-
cause Of the bank situation in Louis
vile.
II said to Mr.. Lucas" continued Mr.
4gr$f hat 7 40 h0f lafa
that would send him my personal
check for $500 to pay it."
Mr.. Mutt sent the check and the note
was paid
The national treasurer told the COM
mittee that he thought Mr.. Lucas had
made q bad error In the way he had
fought Norris.
II did not blame him for fighting
Norris" said MIR. Mutt. I'D fight him
myself. That may be bad politics, but
It Is the way feel about It."
How He Managed Job.
Mr.. Mutt was permitted to read to
the committee, when he first took the
stand q statement which he had pre-
pared showing just how he conducted
the financial affairs Of the Republican
National Committee. His statement to
the committee follows:
following the Kansas City convention,
my good friend, Walter Brown, now the
Postmaster General, called me at my
home over long distance from Wash
ington and stated that Mr.. Hoover de-
sired to have me act as treasurer Of
the Republican National Committee.
was very much astonished to receive a
request Of this kind for the thought Of
acting in such q capacity had never
entered my mind. I told Mr. Brown
that thought was not qualified, that
had never taken an active interest in
politics and that they could certainly
md some one else who was better
qualified to do the job.
He urged me not TO decide definitely
at the moment, but to come down to
Washington on Monday night and talk
over the matter consented to do
this, and spent Tuesday in Washington.
As result OF one or two long CONVEX
sations with Mr.. Hoover and several
other party leaders, decided to accept
the ONCE. took it for granted at the
time that my job would be simply the
collection Of funds, and that the other
officials would attend to the eXpendi-
reading the Law, that the treasurer was
responsible for expenditures as well as
contributions.
Get Accountants Help.
''Mr. Hodges, the former treasurer,
had established q very excellent system
Of accounting and had Mr.. Fred Stack
house of Denver-a certified public ac-
countant-work with him during the
entire campaign as his personal repre-
sentative. ! employed Mr.. Stackhouse
TO act in this same capacity for me and
brought him on to Cleveland. I at once
employed Ernst & Ernst. internationally
known accountants. They took the sys-
TEN that Mr.. Hodges had followed, made
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