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The Washington times. [volume] (Washington [D.C.]) 1902-1939, February 15, 1924, Image 2

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Persistent link: https://chroniclingamerica.loc.gov/lccn/sn84026749/1924-02-15/ed-1/seq-2/

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Vanderlip scored by senators for broadcasting scandal
(Continued from First Page.)
trains. I thought these rumors
should be verified to clear the
late President’s name.”
“You thought it your duty to
give publicity?”
“I thought it my patriotic duty.
It was heard in all newspaper
offices. I know it was a hard
thing to do.”
“You can give the committee no
definite information?”
Don't Know the Price.
"No, I just heard these rumors.
X don’t even know the price the
paper sold for. The current talk
was that it sold for 1550,000, that
it was 5600 a share. I have no in
formation as to the value of the pa
“I understod the terms Included
payment of 110,000 a year to Mr.
Harding as a contributing editor,
the payment to be made to the
widow in event of his death."
“Do you know anything about
the income of the paper?”
“I heard 130,000, and one year
that it was 169,000.”
“You have no other Information?”
“I have accurate Information for
my statement—l heard the ru
Vanderlip said, in explaining his
speech, that he had no information'
that anyone in the oil business
had contributed to the purchase of
the paper, although “it wds clearly
Implied” in the rumors he heard
that the money came from some
.unexplained source.
Duty to Broadcast It.
“I thought,” he continued, “by
bringing it out in public you gen
tlemen could run down these ru
“You thought,” said Lenroot,
"that it was your public duty to
broadcast these rumors, which if
not true would be slander on the
late President?”
“I thought it my duty to broad
cast these rumors.”
“Do you think you should assist
in spreading these rumors?”
“I hoped it would do just what it
has done—broadcast these rumors
to wide public circulation. There
are rumors current that are mak
ing Reds taster than any Soviet
propaganda. I’ve had much ex
perience with gossip and rumors,
and I’ve learned to draw a distinc
tion between gossip and rumors.”
“Do you mean to say you got
these rumors from responsible
His Personal Inference.
"I have never heard any one dis
cuss these rumors who proposed
to know the facts about them. I
wanted to clear the memory of the
late President.”
Regarding his statement that
Fall was let go because there was
tear he would “peach," Vanderlip
“That was my own personal in
“Did you know this committee
was advised by counsel that he
might be given immunity if he
testified under duress.”
“I had heard that”
“Did you give voice to idle rumor
after what the committee did in
Fall’s case?”
“I did not know counsel had ad
vised he couldn’t be forced to tes
Views on Immunity.
“Have you ever heard Os a case.
Where a man was forced to testify
under duress when he claimed im
"That was my Impression."
“You think it was a fair inference
to draw?" demanded Lenroot, pound
ing the table "when you knew that
Fall had declined to testify on ad
vice of counsel?"
“I didn’t know Fall had refused
to testify,” the witness said.
“You charged the Senate and this
Committee with dereliction of duty ;
.without asking legal advice or con
sulting the committee?”
“If you tell me you had legal ad
vice 11l say it was right you did
S3O O’Coats. . $15.00
$35 O’Coats. . $17.50
S4O O’Coats. . $20.00
Styles and qualities same that have made more than
500,000 New York men prefer Monroe Clothes.
* ■ Floors
. MKA ud r Street.-W.
< -not go on—if you had no other way
to go about it.”
"Would you make a speech of
that sort without informing your
self of the facts?” Lenroot asked.
"I was only referring to rumors,”
said Vanderlip.
"Would you now say that the
committee had not dont its full duty
in its conduct toward Mr. Fall?”
“If you tell me the committee has
no power to go on with its question
ing of Mr. Fall on grounds that he
might incriminate himself, I would
say that was ample reason for not
continuing unless you have some
other way to make him testify," said
“Oh, nothing -hat I said could
destroy the confidence of the peo
ple in the good repute of this com
mittee," he continued.
“You mean your suggestions
count for nothing?” asked Walsh.
"I mean that my talk to neigh
bors would not destroy the good
repute of the committee,” Vander
lip said.
“Yes, but your talk reached the
farthest corners of the country,”
Walsh countered.
“In this case, likewise will my
statement be carried to the far
corners, that your committee did
exactly right."
Under questioning by Lenroot,
Vanderlip said he bad not made a
prepared speech "because I had no
press agent.”
"I cannot conceive that the repu
tation of the committee was hurt by
my talk beyond a point that can
not be immediately repaired,” said
Walsh said he had taken no
steps in the Teapot Dome case
“unt’l I had the proof in my
“I heard the same rumors you
heard, but I didn’t start any action
until I learned the truth,” Walsh
Thought Publicity Needed.
Vanderlip said be knew there were
reporters at the Briar Cliff, N. Y.,
meeting where he made his attack
on the committee.
“I thought the situation needed
publicity,” he said.
"You did it deliberately?”
"Yes, sir, it was not an acci
"Yet you made no effort to as
certain the truth,” Lenroot shot
Vanderlip said he had not made
a copy of his speech and that the
story as carried in newspapers was
not exactly correct.
“I said there were rumors, and
the newspapers make it appear that
I made definite chargee,” Vanderlip
stated. "I did not make any defi
nite charges."
Lenroot severely condemned Van
derlip for having made any state
ment on the subject without "tak
ing pains to see you were correctly
quoted on such a serious matter.”
“You were jndifferent and didn't
care whether the newspapers quoted
you as making these charges or as
having said they were only rumors,”
Lenroot shouted.
Scored By Lenroot
"I can’t be held responsible tor
what the newspapers print," was
Vanderlip’s reply.
“Yes, but you broadcasted a scan
dal, didn’t you?”
“I only wanted the matter investi
gated," said Vanderlip.
“Since my speech, the news
papers have stated very plainly
that I was only referring to
“Yes, since your speech,” Len
root shouted angrily. “And since
the newspapers have condemned
you for broadcasting an unfounded
“I realize I have been condemned
for having tried to start this in
vestigation,” Vanderlip replied.
Senator Bursum (Rep.) of New
Mexico, took up a minute question
ing of Vanderlip.
“You knew President Harding
"I met him several times and I
Trick Hiccups Cures
Flood Hospital in
Severe Case
sure cure for hiccups is to
hang the sufferer by the heels
until the convulsions cease, ac
cording to a letter received
at the John Hopkins Hospital.
The suggestion was one of
numerous “trick** remedies of
fered by persons who had
read in the newspapers of the
death of Thomas Chew Ship
ley of. Randallstown, after suf
fering for eleven days with
severe hiccups.
Among the suggestions,
which were entered in the
curious volume kept at the
hospital and known as the
“Agony Book,’* were these:
Diet on clam broth; feed <m
lemon juice; hold the tongue
out at full length until cured;
drink cold water until cured.
had a warm feeling that he was
humanly a fine man.”
"Had you heard rumors about
“Only this one about the paper."
“Did you undertake to determine
whether these rumors were justi
“It was impossible for me to
Repeated “A Story.”
Vanderlip explained that he bad
merely repeated "a story that had
gained great headway.”
"Did you consider broadcasting
a scandal a friendly act?”
"I wanted to quiet a whispering
"In absence of facta would it not
have been more friendly to de
nounce the rumors?"
"Denunciation without knowledge
was of no avail.”
"What are the charges?’ •
"That the paper sold for con
siderably more than it was worth
and the question was raised as to
"What was the value of the
“I don’t know."
"Don’t you think the purchasers
were the best judges of the value?”
Differences in Scandals.
"Oh, yes, they should have been."
"You thought that broadcasting
a scandal was a friendly act?”
“I resent that I broadcast a scan
dal. I was broadcasting the fact
that a scandal was being rumored."
“Did you write a New York news
paper that you were going to make
a sensational speech?” demanded
*’l did not write any paper.”
"‘Are you sure?"
"Yes, I told a friend on the New
York Tribune that I was going to
make an interesting speech.”
"You asked that it be reported?"
asked Lenroot.
"I did.”
"You were willing to have your
speech distorted and reflect upon
Mr. Harding’s name?"
"That first report did not quote
me correctly."
Vanderlip explained that to
“broadcast a scandal was a
scandalous thing to do but to
broadcast a statement that such a
scandal was rumored was a good
thing to do.”
"The latter would bring into the
light the truth by a cold, critical
examination of the facts” Vander
lip added.
Vanderlip flatly contradicted
himself when asked whether he had
said that be personally did not
believe the rumors against Presi
dent Harding.
"Did you tell your audience that
you did not believe this rumor?”
Lenroot asked.
"Yes, I did.” he answered.
"Are you sure?"
"I said I knew nothing about the
truth of the rumor,” he said.
“Ah, but you did not say you
didn’t believe it yourself?” Lenroot
Unfair, Declares Bursum.
"No, I don’t believe I did," Van
derlip admitted.
Lenroot again condemned Vander
lip for circulating a "rumor which
you did not believe yourself and
when you ciaim to have been a
close personal friend of President
"I wanted to set in motion an
examination which would get the
facta and clear his name,” Vander
lip explained.
"But you were perfectly willing
to let this scandal go to the coun
try letting the people think you
believed it,” Lenroot shouted.
"There were no grounds for
thinking I believe the-rumors,” said
Senator Bursum (Rep.) of New
Mexico charged Vanderlip with do
ing “an unfair and unrighteous
thing” in broadcasting "a scandal
involving President Harding.”
Hadn’t Single Fact.
Under Bursum’s questioning Van
derlip said he did not have a "sin
gle fact” to support the implied
allegation against President Hard
“Do you have any evidence or any
fact relating in any way to this
case?” asked Senator Dill (D.) of
"I have no knowledge of my own
or any facta relating to the oil scan
dal.” Vanderlip admitted, adding
that his speech was prompted be
cause the country was "suspicious.”
"The people are suspicious of the
newspapers,” he added. "They are
suspicious of the nature of informa
tion they are getting and of the
very integrity of the Government."
Ignorant of Slush Fund
"Do you know anything about
the million dollar slush fund,”
Walsh asked.
“Not a word,” anderllp said,
"until I saw the newspaper head
"Do you know of any effort in
We wish to state that* the Delta
Slrtna Phi INTERNATIONAL College
Fraternity, founded at the College of
the City of Now Tork in IMF and
having chapters tn IS leading Col
leges and universities of the United
NON--COLLEOE Fraternity located In
the District of Columbia. Sult by the
. PW .. **™nati6nal
COLLECIE Fraternity is being filed in
the State of Illinois against “he latter
for their Infringement of our legal
right to UM the name.
A DeltapßlgmaJhi Freterslty, Inc.,
“Slush Fund” Charges Made
by Banker Forces Action
by Committee.
(Continued from First Page.)
which the Sinclair and Doheny
leases were kept secret by Secretary
of the Interior Fall may be re
Concealed Lease.
It is remembered that Mr. Fall
tried to keep the Sinclair lease con
cealed even from nis old colleague
■ Senator Kendrick of Wyoming, in
whose State the Teapot Dome is
situated. It la known, however,
that certain of Mr. Fall’s friends
in White House circles learned of
the existence of the lease before ;
anything about its having been
granted was divulged to Senatorial >
inquirers in general. They are sue- I
, pected now in some cases of having 1
made a speculative use of this inside I
[ On the other hand it Is also!
, known that among high officials at I
1 that time there were speculations
in oil stocks other than the stocks
. of the Doheny and Sinclair com
panies and it is known that severe
. losses in these other stocks were
sustained. These were the losses
which the fund from New York is
, alleged to have been sent down,
here to cover.
It is realized here among people
who have not been driven hysterical
by the daily oil scandal bombard
ment that the raising of the fund
to rescue political friends from the
financial consequences of their own
financial foolishness may on the
one hand have been a corrupt act
and may on the otner hand have
been a perfectly innocent act with
out any taint of corruption in It.
It is remembered that Mr. Mark
Hanna and Mr. IT H. Kohlsaat once
mteed a fund to rescue William
McKinley, afterwards President,
from crushing losses which he had
sustained through going on the
notes of a friend. This ac: wan
performed by Mr. Hanna and Mr.
® rder to k ®®» “cKlnley
‘“lvcnt and in order to keep him
able to continue in politics for the
R^’,Kii a8 they believed, of the
Republican party.
Case May Be Similar.
It is realized that a similar
min’X ht »/“t2 r have , b «*n in the
he . < ent len>en in New
"ho «ent the fund down here
which Mr. Kahn will be
teßt | fy -. Senators will in
ihiTk IT any knowledge
Payne WhitneyTof
£I ew *». York l may have had regard
*hy BUch fund
invlew of the fact that he has
been closely associated with Mr.
Sinclair and in view also of the
h -u are well known
to have the habit of appealing to
financial'holes. 10 he ’ P th *“ ° Ut ° f
Every effort will be made by
certain Senators to discriminate be
c.°rrupt transactions and in
nocent transactions and to protect
tne name of President Harding from
all undeserved blame. S
(Copywrlght, Washington Press Service.)
Wan Street and in New Tork gen
erally to accumulate a fund to help
th ? campaign in 1920’”
asked Walsh.
never had any relative or di
rect association with those oil
people, Vanderlip replied.
You did help tne Republican
campaign fund, however?” <
. *‘Ye«’ I was generally called upon
1 he,Ped
0 / bu? U lttAbX
to y ? u ,M °t that you said ’a
certain Marion newspaper* was sold
Walsh 0 ' 6 han U Waß worth >” Bald
Didn’t State a Fact.
Then that was a poor piece of
a’^ t . in< * 1 -P«iflcaSy thS
as rU Tf° r- 1 ? ld not Btate H
StennJrnJL U * * Plty ther « 18 «O
stenographic report.
y9u Btated ‘where did the
money come from.”’
DeZS rX WBS ,n th ®
people s mind. There is no ques- :
tion that I did not myself give
currency to the rumor but that I
t 0 know thß
I _ V<XJrey ’ counsel for
,hen :
of your fPsech
brought to you and didn’t you ap- '
prove It?” asked Vodrey.
I«?prov«l M MM rpt (ro „ m ,
"Did you ascertain from the pur- 1
tt£*!X?” BUr ** fact * of '
-7 d,d npt - * have said before I .
had no facts. I was merely giving 1
rumors." Vanderlip replied heatedly. 1
H was known to ;
everybody that , these two young
men were of no financial standing?” '
Vodrey asked.
*‘ l . ra * re, y "tated it as a rumor,”
Vanderlip replied to more question- 1
“tan’t it known to you that one *
of the cunning ways to libel a per- «
son is by publishing rumors?" asked 1
Senator Pittman. <
"Publication of rumors that are *
libelous is a very dangerous bust- .
ness and happily so,” Vanderlip re
plied. i
"When you said Fan would peach 1
on the higher ups,” added Pittman,
and mentioned President Harding <
in the same speech there was a <
plain Inference that Fall would >
poach on President Harding.” t
"It was not the truth, although 1
Th* National Daily
kih ib m
The office of the Marion Star, Marion, Ohio, the paper owned
by the late President Harding which was brought into the oil con
troversy when Frank Vanderlip was quoted as having said that
Mr. Harding sold the paper for twice its value to men without
resources to purchase it. Today on the witness stand he declared
his assertions were based on nothing stronger than rumors which
he was unable to substantiate by facts.
New Company Paid Harding
$380,000, Not $550,000,
As Vanderlip Said.
. Refuting entirely the sensational
insinuations concerning their pur
chase of the Marion Star from the
late President Harding, Louis H.
Brush and Roy D. Moore today sub
mitted to the Senate Public Lands
Committee a complete statement of
the transaction, revealing among
other things that the price was
5380,000, and not 3550,000, as'stated
by Frank A. Vanderlip.
The history of the transaction was
related to the committee in a state
ment by Brush, read by Moore, as
“The developments that have
brought the sale of the Marion Star
into this investigation have resulted
in the publication of many un.
founded and distinctly unfair stories
that are very harmful to our bust
ness as newspaper publishers—re
ports, for example, that the price
was excessive, and, in particular, the
statement in a New York newspaper
yesterday that the Star had proven
an unprofitable investment for ua,
“ e «ovs 1- > vou
permit me to give you this complete
and detailed explanation of the ne
gotiations and the oonsummation of
the entire deal.
Friends 25 Tears.
“Our negotiations with President
Harding for the purchase of the
Star were made possible by my
very intimate personal acquaintance
With Mr. Harding over a period of
twenty-five years. During this time
we were practically constant ad
visers with each other in connec
tion with our newspaper plans and
“At our first conference with him
he told us of having declined an
offer through a newspaper broker
representing another Ohio publisher
of a price higher than he asked
of us, emphatically stating that ho
would not sell his newspaper to
anyone if we did not buy it
“He also expressed his confidence
in our newspaper methods with
Which be was thoroughly acquainted
and his desire to retain a minority
stock interest and editorial connec
tion after leaving the White House.
. IS addition to my half Interest
in the Star, I own practically all
the stock in three other Ohio news
papers and a small Interest in an
other in New York State, which is
controlled by my brother.
Stock Clear of Debt
"All of this stock is entli ely clear
except a part of it which is de-
Sosited as collateral in addition to
[r. Moore’s own collateral on our
joint notes in two Ohio hank*
the public might make that infer
ence,” said Vanderlip.
"If the American people got that
Inference you have been guilty of
a. libel upon the late. President,
have you not? t
Vanderlip evaded a direct an- 1
swer, saying: “I have nothing to !
do whatever with tacts in the case,
my dear sir. I have only to do
with rumors.” With this Vander
lip was excused from the stand.
1313 YOU STRHtT, N.W.
“In financing the purchase of the
Star, neither Mr. Moore nor myself
borrowed any money whatsoever
fro many individual or corporation
except two ordinary bank loans.
“Under the contract of sale Mr.
Harding was to receive for his 605
shares of stock a total of $263,000.
The remaining 195 shares of the
total capital issue of the company
were purchased- by us from the
minority stockhdMers either present
or former emploves of the R—- '
a total of $117,000, makln* $310,00$
the total purchase pnee.
I Get the Real Flavor in I
nm I Auth’s Sausage Meat j wglB&lgl
I X/OU majr be very fond of Sausage Meat—
I think you know just where to get the best,
I but if you've never tasted Auth’s Sausage Meat,
I there’s a real treat in store for you.
Why, there’s all the difference in the world.
Not that any other may be inferior in quality, |
but chiefly because no one else knows the secret
of spicing used for over half a century by this
well-known Washington firm. That savory,
spicy flavor that just thrills the palate and grat- i z
g ifies as none other can is found only in the wake
a of the Auth label. No one else can imitate it.
If you would have proof, serve Auth’s 1
Sausage Meat Cakes at breakfast
I st ' o i
; -,
Is Given Free Hand for Clean
up in Printing and En
graving Unit.
Major Wallace W. Kirby today
assumed charge of the Bureau of
; Engraving and Printing as acting
‘ diractor in practically the same man
i nse that General Smedley Butler
rook over the Philadelphia Police De
.oartment. The mission of botji army
officers is to “clean up."
Major Kirby, whose appointment
was announced by Secretary of
the Treasury Menon yesterday, is
expected to make several important
changes in the personnel and opera
tions of the bureau. His powers
are wide. He may hire and fire as
he pleases, readjust working oondi
ions and turn the present routine
'>t the bureau Inside out. Anything
mes. as long as Major Kirby in
creases efficiency and repairs the
broken-down morale of the big
printing plant.
Assistant Director John Perry
and J. F. Hardie, superintendent of
he plate printing division, are said
to be among the first officials
whom Major Kirby will remove.
As the Louis A. Hill regime goes
out. Major Kirby will apoint work
ers discharged by executive order
two years ago.
After being sworn in, Major
Kirby announced that he would
seek immediately to put the bu
reau on a "solid, efficient and
harmonious working basis.” He
".I fully appreciate the responsi
bility of directing the operations of
the largest security reproduction in
stitution in the world and, as an
officer of the army, I am prepared
to give the best of my ability to
this important duty to which I
have been ordered.
"Its past and present experiences
have built up for the corps of
engineers a tradition and esprit de
corps in which all officers belong
ing thereto partake. This branch
of the army has found by ex
perience that the best results are
to be obtained by sympathetic co
operation with no hasty incon
sidered action which may work in
justice to individuals, but by ap-
Private Interests Seek Lease
to Reserves in Alaska,
Is Claim.
(Continued from First Page.)
and operate the Alaska Steamship
They are the same interests it
is pointed out, which under the
Wilson Administration fought the
selection of the route chosen by
President Wilson for the Alaska
railroad, when it beoame a Oovern
, ment property to be developed.
The road was constructed and
' acquired by the Government at a
per mile cost to American taxpayers
of more than $135,000 as against
similar railroad construction else
where of $40,000 a mile. This cost
per mile was piled up regardless of
the facts that the Government
owned ths right of way,'all of the
timber required for track laying
' and other structural work, and
■ terminal sites.
, Government expenditures in the
■ construction of the road are among
' the facte it is planned to bring out
. through the congressional investi
» gation.
i Former Secretary of the Navy
, Josephus Daniels opposed leasing
of the navy reserve coal lands. If
i leased, it is declared, the product
. would be sold to the United States
. navy by the operators.
, plication of justice without favor
> after careful and complete tn
i vestigation.
"One of the important functions
of the corps of engineers is re
production. It is as a specialist in
that branch, without solicitation on
i'the part of the corps of engineers
’ or myself, that I have been tem
porarily assigned to the directorship
of the Bureau of Engraving and
i Printing. My every effort from
now until my assignment Is ended
| will be exerted toward placing this
great institution on a solid, effi
cient and harmonious working
N. Y. Phone* Record.
There are more telephones in
New York city than in the whole
of Great Britain; and Chicago, the
next largest city of the United
States, has more telephones than
all of France.

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