Evening star. [volume], March 28, 1924, Image 1

About Evening star. [volume] (Washington, D.C.) 1854-1972

Image provided by: Library of Congress, Washington, DC

                
WEATHER.
Pair tonight: tomorrow cloudy,
probably followed by rain late tomor
row afternoon or night.
Temperature for twenty-four hours
ended at 2 p.m. today: Highest, 68, at
noon today; lowest, 41, at 1 a.m. to
day.
Full report on page 7.
Closing N. Y. Stocks and Bonds, Page 28
"V,-. ‘)Q lufj Entered as second-class matter
pest otKce Washington, D. C.
DAUGHERTY RESIGNS AT REQUEST
OF COOLIDGE; ATTORNEY GENERAL
HITS BACK WITH SIZZLING REPLY
, President’s Act Based on Belief
That Official Could Not Give
Disinterested Service.
%
CABINET OFFICER IN ANSWER
SWEEPS REASON ASIDE AS FAKE
[Refusal to Send Files of Department to|
Senate Committee Immediate Cause
of Demand hv Executive.
* J
At the request of President Coolidge. Attorney General
CDaugherty today submitted his resignation, effective at once.
The President’s decision was based on a conviction that Mr.
Daugherty could not give disinterested attention to his official
duties while under the stress of the Senate inquiry into his
conduct.
While disclaiming any intention to “prejudge ’ the issues j
, raised in the investigation, the President wrote Mr. Daugherty |
that his continuance in office must inevitably be a source of |
“ever-increasing embarrassment.’’
DAUGHERTY’S REPLY IS TERSE.
In a letter of thr’ec terse sentences, the Attorney General ■
' replied that he was resigning “solely out of deference to your |
request.”
The correspondence was made public at the White House i
without comment, but at the Department of Justice Mr. Daugh
erty issued a statement in the form of an open letter to the :
President which contained a sizzling attack on those who forced j
him out of office.
“Cowardice” and “surrender of principle.” the. retiring At
torney General declared, never should be permitted to dictate
policies based on “party expediency.”
The Attorney General swept*aside the President’s stated
reasons for asking his resignation as “unwarranted by the facts.”:
The real purpose of the whole assault upon him, he said, was to!
dethrone law and order, and by a constantly extending attack on \
the administration generally to set up an inquisition of “scandai j
and terrorism.”
TEXT OF PRESIDENT’S LETTER.
The President’s letter to Attorney General Daugherty, in full,
follows:
“March 27, 1924.
“My Dear Mr. Attorney General;
“Since my conference with you 1 have examined the proposed
reply you suggest making to the demand that you furnish the
committee investigating the Department of Justice with files from
v that deparment relating to litigation and to the bureau of inves
tigation. You represent to me and to the in your
letter that it would not be compatible with the public interest
to comply with the demand and wish to conclude your letter with
• the statement that I approve that position.
“Certainly I approve the well established principle that de
partments should not give out information or documents where
’ such a course would be detrimental to the public interest, and this
principle is always peculiarly applicable to your department, which
has such an intimate relation to the administration of justice.
But you will readily perceive that 1 am qnable to form an inde :
pendent judgment in this instance without a long and intricate
investigation of voluminous papers, which I cannot personally
make, and so I should be compelled to follow the usual practice in
furh cases and rely upon your service as Attorney General and
head of the Department of Justice.
COULD NOT GIVE DISINTERESTED ADVICE. 1
“But you will see at once that the committee is investigating j
your personal conduct, and hence you have bePome an interested j
party, and the committee wants these papers because of a claim |
that they disclose your personal conduct of the department.'
Assuming that the request of the committee is appropriately
limited to designated files, still the question will always be the
same. In view of the fact that the inquiry relates to your
personal conduct yon are not in a position to give to me or the
committee what would he disinterested advice as to the public
interest.
“You have a personal interest in the investigation which is
(being made of the conduct of yourself and your office, which)
' may be in conflict with your official interest as the Attorney
< reneral. I am not questioning your fairness or integrity. I am
merely reciting the fact that you are placed in two positions,
one your personal interests, the other your office of Attorney
General, which may be in conflict.
v HOLDS TWO POSITIONS INCOMPATIBLE.
“How can 1 satisfy a request for action in matters of this
nature on the ground that you, as Attorney General, advise
against it, when you. as the individual against whom the inquiry
i> directed, necessarily have a personal interest in it? Ido not
sec how you can he acting for yourself in your own defense in
this Vnatter and at the same time and on the same question acting
as my adviser as Attorney General.
“These two positions are incompatible, and cannot be recon
ciled. 1 am sure you will sec that it is necessary for me to have
the advice of a disinterested Attorney General, in order that I
may discharge the duties of my office in this and other matters.
v ;i feel certain that you will know how deeply I regret that this
situation has arisen. It only illustrates the difficulties which are
certain to recur with ever increasing embarrassment and your
inability to perform satisfactorily the duties of Attorney General
under present conditions.
“You will readily understand that it is not now my intention
to prejudice the issues which remain to be developed in this in
vestigation. I recognize that you are entitled to a full and fair
hearing, but as there is no way by which you can divest yourself
of the interest you have personally in the investigation, I can
see no way but for you to retire as Attorney General, and I am,
therefore, compelled to request your resignation.
“Very truly yours,
“CALVIN COOLIDGE.”
Attorney General Daugherty’s acknowledgment of the receipt
of this request follows, in full: A
“March 28, 1924.
*‘My Deaf Mr. President:
“I hereby acknowledge receipt of your letter of March 27, by
" (Continued on Tag*- 8, Column 1.) * "
Munim Sfetf.
V, J V V WITH SUNDAY MOENING EDITION L/
WASHINGTON, D. C., FRIDAY, MARCH 28, 1924-FORTY-EIGHT PAGES. _*
Resigns “By Request” I
HARRY M. DAUGHERTY. j
PRESIDENT'S STAND
I UNTENABLE, SAYS
I DAUGHERTY REPLY
- - ...
Twice Offered to Resign, He
States—Leaves D. C. for
Atlantic City.
| Declaring that while he was aware
| that the argument of “party expe
diency" had been used to secure his
; retirement, but that “cowardice and
1 surrender of principle are never ex
pedient.” Attorney General Daugherty
; amplified his formaj letter of resig
nation today with a lengthy letter to
the President, replying to the Chief
Executive's communication request- i
ing his resignation.
The retiring Attorney General de
! dared that the grounds upon which the
■ President had forced his retirement
| seemed to him ‘•untenable.’’
Sen* Crista in Country,
Declaring the attack on him was
only "a part of a definite program to
discredit the administration as a
whole, Mr. Daugherty declared the
country - was confronting a grave
crisis, which must determine whether
the country is to be governed by law
and order or by "slander, terrorism
and .fear.”
Any suggestion that he could not
"function as Attorney General and
defend myself against these charges
at the same time.” the letter said, was |
“hardly warranted by the facts.”
Twice Wanted to Unit.
Mr. Daugherty recalled that he
twice had offered since Mr. Coolidge
became President to retire, but had
been requested to remain.
. Immediately after signing the last
letter to the President. Mr. Daugh
erty left Washington for a brief rest 1
at Atlantic City.
The text of the letter follows:
My Dear Mr. President:
Under separate cover I have just
i handed you my formal resignation
!as Attorney General of the United
States, to take effect forthwith. Now
i that I am no longer a member of
vour cabinet I feel constrained, as
I a private citizen, in all kindness, to
j call certain matters to your attention.
Your request, Mr. President, for my
i resignation is based on grounds
which seem to me untenable. As you
will perhaps remember. I did not
intend to seek your advice with re
gard to compliance with the demands
of the Senate committee for the in
discriminate delivery of the confiden
tial files of the Department of Jus
tice, or parts thereof. As I explained
to you. my duty was clear, for I had
frequently been called upon to de
termine this question. My answer
I was ready, as I informed you, and
1 furnished you a copy thereof.
Reveals Sole Purpose.
My sole purpose In taking the mat
ter up with you was to let you know
the position 1 was compelled to take
in the Interest of the public business
and for the protection of the govern
ment, that you might be In position
to advise other departments, If sim
ilar requests were made, what course
they should pursue.
Your suggestion that I cannot func
tion as Attorney General and defend
myself against these charges at the
same time, I believe, Is hardly war
ranted by the facts. You know that
I have employed counsel, at my own
expense, to take the responsibility of
representing me at the hearings be
fore the Senate committee in order
that I could devote my time to the
public business, which I have been
doing continuously.
Hold* Method* Efficient.
Those employed in the department
have given no time belonging to the
government to this so-called investi
gation, except to furnish data re
quired by the various congressional
committees. The business of the de
partment is at its peak in efficiency
and accomplishment, and I am pre
pared to demonstrate this fact before
any tribunal if opportunity is af
forded.
Your suggestion that an attack updn
a cabinet officer disqualifies him for
further official service is a dangerous
doctrine. Mr. President, all the pre
tended charges against me are false.
But whether true or false. If a mem
ber of the cabinet is to be incapaci
tated or disqualified by the prefer
ment of charges against him, no mat
ter how malicious and groundless, and
he is compelled to give up his re
sponsible position and sacrifice his
honor for the time being because of
such attack, no man in any official
position is safe, and the most hon
orable, upright and efficient public
servant could be swept from office
and stable government destroyed by
Clamor-
Calls Himself Victim.
T have often advised you that my
elimination is part of the program
now being carried out. The origin of
(Continued on Page 4, Column 2.)
VALET DESCRIBES
PARTIES HELD IN
DAUGHERTY HOME
Colored Servant Testifies
I That “Plenty” of Whisky
Was on Hand.
RECEIVED LARGE “TIPS”
FROM SINCLAIR, HE SAYS
Declares Amour Company Sup*
j plied Haras and Provisions
Without Charge.
The Daugherty investigating com
mittee was thrown out of step mo
mentarily today by the resignation
cf Attorney General Daugherty, but
j when the excitement caused by the
announcement had subsided it plod
ded along in its task of gathering
evidence against the Attorney Gen
eral.
Life in the Daugherty apartments,
where Jess Smith, the Attorney Gen
| oral's friend who committed suicide
lived, was gone into through the
medium of Walter Miller, former
valet, who told of whisky being
j brought and kept there, of the many
j visitors, including Albert B. Fall,
j Harry F. Sinclair. Will Hays, Howard
Manington, Wiil A. Orr and a host of
others, and of some "social games"
in which some of the visitors en
gaged.
Overheard Conference*.
; He had often heard. Miller said, con
ferences between Smith and Daugherty
on qualifeations of prospective federal
employes. Many seeking government
appointments called at the Daugherty
house, he said. Richard Washburn
Child was a caller, lie added, and he
said he knew of Child's appointment
to the ambassadorship at Home "before
it came out in the papers."
Former Representative J. Van
Vec.hten Olcott of New York told the
committee of conversations he had
with a “visitor” at his office, in which
jhe was told that he would be expected
to pay SIO,OOO when his name was
sent to the Senate for a federal judge
ship. He identified the visitor as
“Wayne Wilson" and said he hail not
been told he represented anybody j n
[the Department of Justice.
Government Auditor Appears.
Much of the testimony today was
from Allen J. Piekering. formerlv
auditor for the government in the air
craft cases, who testified of conditions
in the industry and of the govern
ment's bequests to airplane companies.
Wheeler Warns Committee.
Senator Wheeler, democrat, Montana,
committee prosecutor, announced that
Attorney General Daugherty's resigna
tion should not affect the committee’s
work. The committee, he said, would
j proceed with its inquiry “with the ob
ject of clearing out the rottenness we
believe has been disclosed in Washing
ton.” Chairman Brookhart supported
Senator Wheeler's position.
Olcott First Witness.
Mr. Olcott of New York city, the
first witness called, told of conversa
tions he had with the “visitor” at his
office.
“Two or three days later he came
back." said Olcott. "He told me that
a little money was necessary. I told
him I couldn't possibly see any rea
son in that,”
"What amount did he mention?”
That SIO,OOO would be required
when my name went to the Senate
and $25,000 when I was confirmed.
* I sized it up as one of those cases
where a fellow learns about a candi
date who is to be appointed, and he
thought 1 would be gullible and easv ”
Previous experience, Mr. Olcott said,
made him think the proposal was a.
fraud.
"Did he come under the Department
of Justice?” Senator Jones, repub
lican, Washington, asked.
bill Not Name Smith.
"I think he said he was investi
gating for the Department of Jus
tice, but the department didn't come
in in any way. I think he mentioned
‘the boys.’ ”
Wilson had not named Jess Smith,
Howard Mannington or WiU A. Orr
Olcott said.
"Was Wilson prominently identified
with politics in New Y'ork?” Senator
Jones asked.
“He joined the National Republi
can Club back in 1921. I think when
I was president,” Oloott said.
“Can you give me the exact time?”
Senator Ashurst, democrat, Arizona,
asked.
“Wasn’t there a special session of
Congress when President Harding
took office?” Olcott returned. “It was
during that session, when there was
a bill up to increase the number of
judges in the southern district of
New York,”
“Have you seen Wilson since
then?” Senator Ashurst continued.
“Oh, yes.”
Get News of Dnfkerty.
Olcott said he had “mentioned his
experience as an interesting item.’'
He also said he was not certain tt
was the National Surety Company
with which Wilson was supposed to
be connected, but was sure “he had
some connection with the surety
business.”
Paul Howland, attorney for Attor
ney General Daugherty, asked that
Wilson be brought in for questioning.
First word of Attorney General
Daugherty’s resignation reached the
committee through the Associated
Press.
“We have nothing to do with the
Attorney General’s resignation,”
Chairman Brookhart remarked, when
he heard the news.
Ex-Senator Chamberlain, one of Mr.
Daugherty’s attorneys, said that he
bad “known it was coming.”
Allen J. Pickering, the next witness,
was formerly auditor for the govern
ment in aircraft frauds. Assigned to
the Standard Aircraft Investigation,
he said he found “considerable oppo
sition from that company, and from
Mitsui & Co., the Japanese bankers
who owned it.”
Says He Had No Help.
Pickering said Howard Mingle,
president of the Standard Aircraft
(Continued on Pago 2, Column 2.)
I
I
• JEALOUS.
LANGLEYPUTSUP
&000 TRIAL BAIL
Representative Accused as
Dry Conspirator Innocent,
Counsel Declares.
John W. Langley. representative
from the tenth district of Kentucky,
who was indicted yesterday by the
grand jury on charges of conspiracy '
to interfere with the orderly opera- j
tions of the United States govern- |
ment through alleged illegal with- ]
drawals of whisky from government |
warehouses, gave bail of >5.000 today i
for his appearance for trial.
Attorney Henry E. Davis, who has
been retained to defend Mr. Langley,
j stated the representative wished to be
J present at the assembling of Congress
| today and had an engagement to ap
i pear before the House investigating
I committee early this afternoon, and
; his appearance with bail was delayed
somewhat.
Arrangements will be made to have
five codefendants appear in court or
give bail bonds: early next week.
Two Indictments Returned.
Langley is mentioned alone in one
indictment. In the second he is in
dicted again with Millard F. West,
former deputy commissioner of in
ternal revenue of the United States;
Russell M. Sackett, a prohibition
agent in Pennsylvania: Ben L. Moses
and Harry Sattler, co-partners, trad
ing as the Union Drug Company of
Pittsburgh. Pa., and Sidney Reis, who
is described as a person carrying on i
the business of procuring intoxicat- I
ing liquors in large quantities for I
clients.
Although Representative langley
declined to comment personally on
the indictments. H. E. Davis, hi's at
torney, issued this statement; “1 have
for some time been aware of the
movements to indict Mr. Langley, and
may safely say that I know the
movers in the matter and their mo
| fives. Mr. Langley is absolutely in
nocent of the charges against him.
and will demand and insist upon- an
immediate trial, of the result of which I
I entertain not the slightest doubt.
The sufferers in this business will not
include Mr. Langley.”
Langley Serving N Inth Term.
Representative Langley is one of
the rpost picturesque figures in the
House. He is chairman of the pub
’ lie building and grounds committee,/
and is serving his ninth term as a
member of Congress. Shortly after
the Chicago grand jury reported that
two members of Congress were in
volved, Representatives and
Zihlman, the latter of Maryland, and
both republicans, announced that
they had heard their names had been
mentioned and demanded congres
sional investigations.
A special House committee has
been awaiting reports from the grand
jury and has been investigating in
formally the charges referred to in
tire Chicago grand jury’s report pend
ing the findings here. The, commit
tee was called together today to de
cide what course it would pursue.
Chairman Burton said It undoubtedly
would proceed with its investigation
next week, but it had not decided
whether to hold public hearings.
Conspiracy Is Charged.
The indictment alleges that the per
sons accused, together with others
who testified before the grand Jury,
formed a conspiracy to pay >IOO,OOO to
Elias 11. Mortimer, Herman Geltzeller,
land Donald J. DeLairtey to secure the
purchase, withdrawal and transporta
tion by Moses and Sattler o*f whisky
from a distillery warehouse to the
place of business of the Union Drug
Company, at 915 sth avenue, Pitts
burgh.
Os the alleged bribe of >IOO,OOO, the
Indictment states, >5,000 was to have*
been paid to Langley to prevail upon
him to procure Millard F. West, John
F. Kramer, Arthur McKean, Ralph E.
Clepper and Russell M. Sackett, “by
promise to them of official tenure and
promotion to connive” at the removal
and transportation of the whisky.
The Joint indictment alleges that
Representative Langley and the five
other defendants combined to defraud
the United States of certain taxes to
become due to it and “by corruptly
prejudicing, obstructing, perverting,
contravening and defeating the ad
ministration of the Internal revenue
laws of the United States concerning
such taxes and of said national pro
hibition act as it pertained to said
whisky.”
The whisky, it is pointed out in the
indictment, could not lawfully be sold
at the distillery warehouse for bev
erage purposes or sold for beverage
purposes without the payment of the
internal revenue tax, >4.20 per gallon.
The overt acts set out in the indict
ment are four in number, the first that
John W. Langley and Ellas H. Mortimer.
* (Continued on Page 15, Column 1.)
40,000 COAL MINERS
MAY GO ON STRIKE
I
j Missouri, Kansas, Oklahoma and
Arkansas Represented at
Conference.
By the Associated Press.
KANSAS CITY, March 28.—A strike
of 40,000 coal miners in Missouri,
Kansas, Oklahoma and Arkansas was
considered imminent today by offi- !
eials of the Southwest Interstate Op
erators’ Association, when a three
day conference between represent
atives of the operators and miners to
! consider a new wage scale opened
here.
Operators have agreed a lower wage
I scale must be adopted if the mines
I continue to operate, but they consider
if improbable that the miners will
j agree to a reduction. The present
j wage scale expires April 1.
j Charles F. Spencer, Pittsburg, Kan.,
1 president of* the operators' associa
tion. said every effort will be made to
reach an agreement and- avert a
strike which would cost approxi
mately >10.000,000 in wages to the
workers and in business to the opera
tors.
J2SBM ESTATE I
LEFTBYWILSON
Mrs. Wilson Files Petition for
Probate Through McAdoo
i
and Lesh.
;
Woodrow Wilson, former President
of the United States, who died Febru
ary 3, left an estate valued at >250,-
000. according to the petition for the
probate of his will filed today by the
widow. Mrs. Edith Bolling Wilson.
Justice Frederick L. Siddons of the
District Supreme Court admitted the
will to probate, and issu.ed letters tes
tamentary - to Mrs. Wilson, fixing her
bond at >I,OOO.
MeAdso and I.enK File Papers.
The petition filed thiough Attor
neys William G. McAdoo, son-in-law
of Mr. Wilson, and Paul E. Lesh, of
the Washington bar, sets forth that
the late Chief Executive owned no
real estate In the District of Colum
bia. but was possessed of personal
property consisting of ca&h in bank,
bonds, securities and personal effects
in the estimated value of >250.000.
The only debts left by Mr. Wilson
arc those incident to his funeral,
which will not exceed >2,000.
Canwits to Probate,
Consents to the probate of the will
and to the issuing of letters to Mrs.
Wilson accompany the petition and
are signed by Margaret Woodrow
Wilson for herself, and for her sister,
Jessie Woodrow Sayre, under author
ity of a cablegram to her from Bang
kok, Siam, where Mrs. Sayre is re
siding. and by Mrs. Eleanor Wilson
McAdotg
Those signing the consents are the
daughters of Mr. Wilson by his first
marriage, and are his only heirs at law.
As the will of Mr. Wilson provided
an annuity of $2,500 to be paid to his
daughter Margaret, while she remain
ed unmarried, she also signed a con
sent, that no more than a nominal
bond be required of Mrs. W'ilson, as
executrix of the estate. Under the
will Mm Wilson is nam<*i the chief
beneficiary of the estate.
25 TRAPPED MINERS
ARE BELIEVED DEAD
I Explosion in West Virginia Shaft
. . Entombs All Men at Work,
Says State Report.
WELCH, W. Va., March 28. —
Twenty-five men were entombed to
day In a mine at Yukon, McDowell
oounty, by arr explosion. According
to reports received here the men are
believed to be dead.
CHARLESTON, W. Va., March 28.
The state department of mines to
day was advised of an explosion in a
mine at Yukon. The report contained
no mention of the fate of twenty-five
miners who were in the workings
when the blast occurred. There is no
telephone at Yukon, and reports from
nearby villages meagsr.
JOHN WALSH DENIES
OIL CONNECTIONS
Calling of Brother of Mon
tana Senator Causes
Hearing Row.
i •
j John Walsh, a "Washington lawyer |
and a brother of the prosecutor of (
the Senate oil committee, was called j
before the committee today and ques- j
tioned at length by Senator Spencer, j
republican, Missouri, regarding his !
activities and connections.
The witness said he never had been
connected directly with any oil com
pany, but was general counsel for a
holding company. He denied that
this company had any "interest in
oils in Wyoming or any other north
western state.”
The examination developed another
row between Senator Walsh and Sen
ator Spencer. during which the
former charged that his brother had
been called in an effort to "cast some
suspicion on me.”
Hoth the senator and the witness,
•urged Senator Spencer to press his!
i questioning further, but he replied!
that if he had any more questions to
ask he would put therm later.
Ideologist Heard.
The committee also heard F. W.
Sardeson. a Minneapolis geologist, de
scribe the oil properties of Teapot
Dome, but adjourned until Tuesday
without calling to the stand William
Boyce Thompson, formerly connected
with the republican national commit
tee. Ho is to be questioned about
campaign contributions and the com
(mittee also will recall Will 11. Hays,
1 who was the republican national
chairman in 1920.
Senator'll Brother Heard.
Walsh was subpocned yesterday at I
the instance of Senator Spencer, re- i
publican, who insisted that be I
be heard today. Senator Spencer I
said he was not ready, but after Sen- !
ator Walsh said his brother’s business
had been under investigation and
that the fact that he had been sub
poenaed had left him under suspicion,
Walsh took the stand.
Under questioning Walsh testified
that he never had been associated
with the Mutual Oil Company, nor
directly with any other oil company,
but that he is a director and general
counsel for the American Republic
Cbrpor&tion. a holding company.
“Does your company have any in
terest in W'yoming or jn California
which have any connection with the
1 naval oil reserve leases?" asked Sen
ator Spencer.
“I am glad you asked that ques
tion, because the republican national
committee Is making an investigation
of that,” replied the witness. “My
company has had no interest In oils
in Wyoming. Montana or anywhere
else in the northwestern states.”
Names Companies.
Senator Spencer insisted on having
the names of the companies for which
Utc American Republic is the holding
company. Walsh said the American
Petroleum Company, the Federal Pe
troleum Company, the Apoose Oil
Company, Republic Producing Com
pany and the Fidelity Securities Com
pany were engaged in the oil busi
ness in Arkansas, Louisiana, Texas
and Oklahoma.
Walsh said he had never appeared
before the Interior Department in oil
matters and never engaged in the oil
business in either Montana or Wash
ington. .
"I think, in view of the statements
which have gone out, I have been
placed under suspicion,” insisted the
witness when Senator Spencer had
finished his examination. "If you
have anything in mind let me have
it now.”
“I am not ready to examine you
further this morning,” said Spencer
"and X will not examine you until
I am ready and should it turn out
that I do not desire to examine you
further, I will not summon you.”
Asks Testimony Stricken Out.
As Walsh was excused Senator
Walsh moved to strike out all of
his testimony as irrelevant, to test
the sentiment of the committee, but
he later withdrew his motion.
Senator Dill, democrat, Washing
ton. insisted that the testimony re
lated in no way to the naval oil leases.
“All this is, is an attempt to in
crease the suspicion, which the Sen
ator from Missouri wishes to excite
about this fitness,” interrupted Sen
ator Walsh.
Senator* la Argument.
“The senator from Montana is en
tirely mistaken returned Senator
Spencer. He said that if it should
develop that Walsh’s testimony was
irrelevant he would be the first to
(Continued on I*agc 5, Column~2j
“From Press to Home
Within the Hour ’*
The Star’s carrier system covers
every city block and the regular edi
tion is delivered to Washington homes
as fast as the papers arc printed.
Yesterday's Circulation, 102,746
MILLER IS OUSTED
AS D. C. INSURANCE
HEAD ALTER CODE
CHARGESARE AIRED
Rudolph Calls on Him to Re
sign as Superintendent.
Denies Accusation by
Blanton in the House.
RECITES NEED OF LAW
AND LONG EFFORTS MADE
Documents Charging Fourteen In
surance Companies Paid Official
$6,820 Toward New Law. Laid
Before Congress by Texas Rep
resentative, Following Report.
Burt A. Miller, resigned today a
superintendent of insurance of the
District, at the request of Commis
sioner Rudolph.
In a statement issued by Superin
tendent Miller, he said that while no
reasons were communicated to him
for the requested resignation, he as
sumed that the request grew out oi
the charges made against him by
Representative Blanton of Texas, in
connection with the efforts to have a
new insurance code enacted for the
District.
Supt. Miller tells the Commissioners
in a memorandum today that in so fal
- the charges impute any misfeasance
or malfeasance, they are absolutlcy
false. Continuing:, he states;
"The money received by me from
the insurance companies to be used
in the preparation of the drafting
of the proposed code of insurance
law for the District of Columbia has
all been fully and properly accounted
for in so far as the same pasted
through my hands. A proper accounl
j in?r has also been made of all moneys
| subscribed to the information bureau.
In this connection I wish to call
I the attention of the board to the
fact that my action in seeking sub
scriptions for both of these purposes
was Known to the board and no ob
jection was made thereto.
Says Legislation »ed.
"The need of modern insurance leg
islation for LheJJistrict of Columbia
has been apparent for many years
and various attempts have been made
to have Congress pass such legisla
tion. To prepare a code of insurance
law which would meet the needs rc
| ijuired a considerable amount of 1c-
I gal research and of comparisons of
the laws of the various states, such
as would be done by the legal re
search bureaus established in the va
rious states of the Union assist of
ficers of governments in preparing
needed legislation for their depart
ments. No such help was available
to the superintendent of insurance of
this District and in preparing legisla
tion it was necessary for him to seek
the help of others. This, of course,
required the expenditure of funds."
Appeal for Needed l und>.
“The department having no funds
available for the purpose, jt was
necessary to appeal to those inter
| ested, and this appeal was only fnade.
as has been before said, as it had been
I brought to the knowledge of the
| board of Commissioners of this Dis-
I trict. Not one penny of the money
I subscribed was improperly expended.
1 not one cent was used "for the pur
i pose of influencing the action of any
! member of Congress, either directly
jor indirectly. Practically all of the
j money contributed was spent for the
| cost of printing and the legal
services.
"The preparation of such legislation
was a matter of great interest to
me. I took pride in endeavoring to
have prepared and introduced what I
hoped would in- looked upon as a
model code of insurance for this Dis
trict, and I have no apology to offer
for my action in seeking the aid of
people experienced in the insurance
held and in insurance Jaw to assist
me in that work
"It has been charged thaU T was in,
debUd to Mr. Louis A. Dent, and if
was by reason of that indebtedness
that he was employed to do the legal
work in connection with this hill
The inference sought to be conveyed
is that I had paid my indebtedness to
Mr. Dent by employing him at a large
compensation for this work. That
charge is absolutely false. I was ncl
indebted in any way to Mr. Dent, n-ff
have I ever been.
“It has been charged that I trieA
to borrow S3OO from C. C. Taylor of
the Federal Life insurance Company
this charge is false. It has been
charged that I borrowed S4OO from
Jesse A. Foster, vice president of
that company; this charge is false.
Securities Turned In.
“It is true that I had in my posses
sion as superintendent of this de
partment only $25,000 worth of secur
ities of the Federal Life Insurance
Company, which came into my hands
only on yesterday from the title
company. This Is in the form of a
note on a mortgage secured by real
estate and the note and the mortgage
securing the same are transmitted
to you herewith.
"It is not true that T collected tho
interest on this security; the onl>
basis for such a charge is that upon
one occasion an interest check wa»
sent to this department, which was
at once mailed to the. Federal Life
Insurance Company. The manner in
which this incident is referred to in
Mr. Blanton’s report is. to infer that
I had diverted this interest to rny
own use. <
"As stated in the beginning, I feel
that I should have been given an
opportunity to answer these charges
before your board before my resigna
tion was requested, and I am submit
ting this resignation solely because
it has been requested and to save any
possible embarrassment to your hon
orable board and for the further pur
pose that if my elimination will re
move the opposition to the bill now
before Congress I am willing to make
that sacrifice.”
Making good a former pledge to the
House District committee that ho
would make startling charges in
connection with the legislation for
a new insurance code for the National
Capital, which has been favorably
reported to the House. Representative
(Continued on Fage 2, Column s■)
TWO CENTS.