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REPORT OF WALSH "
ENDSJUNQUIHY Brands Leases of Reserves Illegal and Corrupt CHIEF POINTS IN REPORT \ • ■ ■ ■ Committee Adopts Report With But Few Changes—Chief , Points In Re port. Washington. The Walsh re port denouncing the naval oil leases as corrupt and illegal was accepted by the Senate investigat ing committee. Senator Thomas J. Walsh, leading figure in the long and sensational “scandal” inquiry, was instructed to submit the report to the Senate as expressing the views of the commit tee. Only a few changes were made in the original as composed by Walsh, who submitted it to the committee after making it public. His recommendations for tighten ing existing regulations so as to di minish possibilities of future similar leases of the public domain were Stricken ottt. The committee de cided that this should hold over un- U1 a final report is made after pend ing court actions have been disposed of. The report brings to an end the long ' and sensational “scandal” in quiry, which involved scores of men high in public ' life, and resulted in the resignation of a Cabinet officer. Indictments now are being fought against the principals, and suit is be ing prosecuted t for cancellations of the leases. The chief features of the Walsh report are: 1. A denunciation of the leases made by former Secretary of Interior Flail, Harry Sinclair and E. L. Do heny on the legal ground that they were made in “flagrant disregard of law.” 2. A severe arraignment of Fall for accepting “loans” of $25,000 from Sinclair and SIOO,OOO from Do heny, with an attack upon former Secretary of the Navy Denby, charg ing dereliction of duty in failing to investigate the leases before affixing his signature to them. 3. A suggestion that hereafter no lease of* Government oil lands should be made without competitive bidding, and then only in case the lands are suffering from drainage by adjacent properties. 4. A requirement that hereafter leases should be passed upon by the Comptroller-General. 5. A charge that the leases are "corrupt,” without mentioning names of those against whom corruption is charged, but aiming it clearly at the half-dozen principals in connection with the leases. 6. An attack upon Fall for using Marines to chase off from Teapot Dome certain squatters who were contesting Sinclair’s rights. Walsh calls thiß “an outrageous and unjus tified use of the armed forces of the United States,” and declared a civil suit should have been instituted to chase off the squatters. 7. Denial that the leases could be Justified on the ground that there was heavy drainage, which was di minishing the supply of oil in the ground. 8. A denunciation of Sinclair for having paid millions of dollars to “irresponsible” claimants “with more or less shadowy claims.” Most of the 36 printed pages of the report deals strictly with the testimony developed from a lega' standpoint. It refrains from pass lpg Judgment in instances, and merely sets forth the facts without interpreting them. Walsh, however said: “A disposition is evidenced in some quarters to dismiss or overlook the very suggestive circumstances shown in the hearings indicating cor ruption in connection with the Sin clair and Doheny leases, the flagrant disregard of law and the unwar ranted assumption of authority that attended their execution, the aban donment of the settled policy of the Government evidenced by them, to inquire as to whether they are or are not excellent bargains from the standpoint of. the Government. These efforts, invariably arriving at or pointing to the conclusion that they are such, are obviously designed to divert attention from or to over ' come the effect upon the public mind Of the features of the transactions. “Not only was the Teapot Dome lease awarded to Sinclair without competition, but he paid a fabulous price to procure the elimination of a potential rival. “One seeking a fair contract from the Government does not buy off his competitor; neither does he, when he secures it, ordinarily submit to blackmail in connection with it; nor does he, while negotiations are pend ing, accommodate the awarding offi cer with loans." Walsh based his main attack against the leases on the ground that the executive order issued by MRS. BERTHA WHITE I ; > \ Mrs. Bertha Hale White, executive aeeretary of the Soclallat party of America, la the only woman to direct and, head a political party. Bhe Is at preaent preparing for the Boclallet contention to be held In Cleveland on July 6, over which she Is to preside. President Harding transferring Juris diction of the naval reserves from the Navy Department to Fall in the Interior Department, was illegal. “This order is counter to the well understood policy of Congress," Walsh said. “Its illegality ought to have! been recognized by everyone concerned in its promulgation. The idea that the President may by his flat transfer powers reposed in or duties imposed upon one Cabinet office to another is intolerable and in defensible.” Referring to Denby, Walsh stated the former navy secretary had sanc tioned the leases because he had been told the reserves were being drat tied. “He was unable to recall who told him so,” Walsh said, “but he as sumed full responsibility for the policy.” In connection with the Teapot Dome lease to Sinclair, Walsh said: “The negotiations leading to the lease were conducted in secret. There was no competition. No explanation whatever is found in the record for pursuing the course that was fol lowed." Outlining the evidence that Do heny sent Fall SIOO,OOO in cash in a black satchel by his son, and the ad mission that Sinclair, through his counsel, J. W. Zevely, gave Fall $23,- 000, Walsh says: “Your committee ventures no opinion as to whether the transac tion was in fact a loan or whether it might more appropriately be other wise denominated. Though the com mittee refrains from characterizing the transaction, it does not hesitate to condemn it as in the last degree reprehensible on the part of all con cerned in it. The essentially corrupt character of a loan made under such circumstances requires no comment. “It would be impossible for an officer to accept a loan of such an amount or perhaps any amount un der the circumstances without a sense of obligation to the lender.” Walsh also mentioned the SIO,OOO contributed by Sinclair to- the Re publican campaign fund and the sub sequent addition of $75,000 to help make up the party deficit. He also pointed to the contribution of Do heny to both party funds. In concluding, Walsh stated that the committee may later attempt to get additional evidence when the courts have determined when Sin clair, Fall and others will be re quired to testify. JAP REFUSES DIPLOMA. Boy Attending Seminary Scoffs At "So- Called Christian Country.” Chester, Pa. Kuranoske Fuji!, Japanese schoolboy, refused to ac cept his diploma at the commence ment exercises of the Crozer Theo logical Seminary as a protest against the Japanese Exclusion bill. In a letter to the president of the seminary, Fuji! wrote: “So long as such an exclusion measure is imposed upon us in this so : called Christian country, Ameri can missionary work in Asia will have the most difficult situation with regard to teaching Christianity. - - WOMEN HOLD WOMAN GUILTY. London.—A coroner’s Jury com posed entirely of women returned a verdict of murder against a woman who had entered a suicide pact with a man who had attempted to carry out the pact by inhaling illuminating i gas in company with him. The man ■ died, but the woman recovered and i was brought to trial. GRANDMOTHER SENT TO JAIL. New York. A mother and a i grandmother were sentenced to one i day each in Jefferson Market Prison ' when they pleaded guilty in Special ' Sessions to shoplifting charges. SEVEN INDICTED FOR PLOT. New York. The Hudson county :j grand jury indicted seven men I charged with urging victims of rail r j road accidents to sue the roads. MIDLAND JOURNAL, RISING SUN, MD, COOLIDGE SIGHS HEW TUX BILL Will Seek Amendments at Next Session CITES MANY GRAVE DEFECTS Approves Only Because Of Urgency— Flays Lawmakers For Discard ing Mellon Rates—Energy Punished. Washington. President Cool idge signed the 1924 revenue bill. Immediately thereafter he is sued a statement citing its mani fold and grave defects and ex pressing fears for the nation’s future economic welfare if another Congress does not supplant that which is obviously a patchwork piece of legislation. The President attacked the meas ure, constituting a distortion of the Mellon schedules from numerous standpoints. His views are concurred in by the Secretary of the Treasury, who drew the bill originally submitted to the House and Senate. The President .made it clear that he affixed his signature only because of the immediate urgency of tax reduc tion, the glaring faults of the hereto fore existing law and the fervent hope that the new one will not live long at the hands of the next Congress. It was directly charged by the Pres ident that the bill was tacked together not on an economic, but a political basis. The President promised to bend all his energies to bring about a genuine tax reform. In an aggressive style, reminiscent of Theodore Roosevelt’s best papers. President Coolidge delivered a biting attack upon the various sections of the bill, and flayed Congress for dis carding the Mellon plan. Failure to reduce surtaxes to less than 40 per cent., he assured, means that "initiative and new enterprise are throttled.” The enormously high Federal estate tax of 40 per cent., added to the gift taxes and inheritance taxes levied by the States, amounts to “a practical confiscation of capital,” he charged. The provision for publicity of in come-tax returns, he continued, “sac rifices without reason the rights of the taxpayers,” and he believes it will "result in the concealment of mil lions of dollars of income which other wise would be reported.” Among his other sword-thrusts were these: "If we are to maintain the American standard of living and hold our place in the world, we must adjust our taxes upon an economic and not a political basis. “A correction of its (the bill’s) de fects may be left to the next session of Congress. I trust a bill less po litical and more truly economic may be passed at that time. To that end I shall bend all my energies.' “As , a permanent expression of Government fiscal policy this bill con tains provisions which, in my opinion, are not only unsatisfactory, but are harmful to the future of this country. “We are presented with a plan of taxation which punishes energy and initiative and must decrease revenue. “It is proposed to take capital and to use it in the ordinary operating expenses of government. We are thus to live, not on income, but on prin cipal, and to that extent we exhaust our resources and prevent the indus trial expansion essential to our in creasing population and our high standard of living. “By far the greater part of the loss of revenue which will be brought about by the bill is in income taxes. “Of the 110,000,000 people in this country, less than 4,000,000 pay in come taxes directly. The remaining 106.000,000 who pay no such direct taxes are given no relief from what they pay indirectly in everything they buy. They, too, must have tax reduc tion. These conditions the present bill does not meet.” While the enumeration of the varied evil features of the bill are in excoriat ing fashion, the President’s reasons for reluctantly affixing his signature to it are set out mildly and without passion. He said: "The bill comes to me for consid eration less than two weeks before the contemplated adjournment of Congress, and it provides for a credit on 1924 taxes which should become effective before June 15. No different bill can be passed before adjournment. The question before me is the present law or the bill in the shape it has passed the Congress. “As I have said, the bill does not represent a sound permanent tax policy and in its passage has been subject to unfortunate influence which ought not to control fiscal questions. Still, in spite of its obvious defects, its advantages as a temporary relief and a temporary adjustment of business conditions, in view of the uncertainty of a better law within a reasonable time, lead me to believe that the best interests of the country would be sub served if this bill becomes a law.” EUGENE KOHNER A /A. * Eugene Kohner, three years old, of Minneapolis, who writes shorthand, knows his geography well enough to pick out the principal rivers and coun tries of the Western hemisphere on a relief map, and swims and skates like a grownup. His mothor, a graduate of a shorthand school In Chicago, began teaching Eugene when he was two years old. IELLS SENATORS HE WOmPPEAR Harry M. Daugherty Will Kot Face His Accusers WITHDRAWS HIS COUNSEL Makes Sweeping Denial Of Wrong Conduct In Note To Probe—Re fusal Based On Brother’s Case. Washington.—Harry M. Daugh erty, former Attorney-General, re fused to appear before the Senate Investigating Committee on the ground it was without authority to conduct the investigation. Daugherty’s refusal to face his ac cusers was made in a letter to Chair man Brookhart, read by Paul B. Howland, his attorney. Daugherty based his refusal to ap pear on the decision of Judge Coch ran in the habeas corpus case of Mai S. Daugherty, brother of the former Attorney General. A sweeping denial of any "illegal, corrupt or unethical” conduct as At torney General was made by Daugh erty in his letter. Daugherty declared he believed the committee was engaged in a “desperate attempt to blacken his character, and notified the commit tee that he would no longer permit his counsel .to attend the hearings for him. DRY UNIT BILL PASSES HOUSE. Crampton Measure Given 275-90 In dorsement. Washington.—The Crampton bill, establishing the> prohibition unit as an independent bureau in the Treas ury Department, was passed by the House, 275 to 90, and sent to the Senate for concurrence. The measure was indorsed by Sec retary Mellon and has as its purpose a more efficient and thorough admin istration of prohibition laws. The new bureau will be called the Bu reau of Prohibition. Its head, the Prohibition Commissioner, and its officials will be subject to civil serv ice rules. INDIANS NOW U. S. CITIZENS. New States Will Not Remove Land Restrictions. Washington. The new Indian citizenship act recently signed by President Coolidge will make every native-born Indian in the country a citizen of the United States, Indian Commissioner Burke said. Jhe granting of citizenship, how ever, he said, would not remove the restrictions on Indian lands under Government guardianship, the Su preme Court having held that ward ship is not inconsistent with citizen ship. Indians’ rights to tribal or other property are not affected. NEGRO DEFIES FIFTY POLICEMEN Barricades Himself After Shooting Officer In Chicago. Chicago. A policeman was shot by a negro, who barricaded himself in a tailor shop in the southern part of the city. The negro held at hay more than 50 policemen and detec tives. A squad with tear-gas bombs was sent to the scene. ROBS MILK-WAGON DRIVERS. New York.—The police of Brook lyn are seeking a new type of ban dit who apparently specializes in the robbery of milk-wagon drivers. He held up three drivers and “shaped with a total of $4lO. SHORT CUTS IN STATE NEWS The Latest News From Ail Over the State HAPPENINGS OF THE WEEK Upper Marlboro. The Prince George’s Commissioners will open bids this week for the sale of $40,- 000 bonds the proceeds to be used for concreting the Emerson road from the Bladensburg School to Bab cock’s store in East Riverdale. These bonds will be redeemed with money raised by assessing abutting prop erty owners. Baltimore. —Annual encampment of the Maryland Department, Veterans of Foreign Wars, will be held at An napolis Sunday and Monday. Me morial services will be held by the veterans on the first day of their en campment and business will be trans acted on the second. During their stay at Annapolis the Naval Academy grounds will be thrown open to them. Baltimore.—Auto thefts are increas ing in Baltimore, figures just issued by the police department showed. For the first five months of this year 219 more cars were stolen than during a like period in 1923. The figures are: 1924, 733 stolen, 692 recovered; 1923, 514 stolen, 484 recovered. Most of the cars were “borrowed” by joy riders and bootleggers and abandoned short ly afterward, the report said. Cumberland. Cumberland Local No. 244, International Typographical Union, held its annual meeting and elected officers. They are: Presi dent, T. Raymond Peterman; Vice- President, George D. Kline; Secre tary-Treasurer, Charles A. Barringer; Corresponding Secretary, W. H. Frazier; Sergeant-at-arms, Benjamin F. Walters; Journal Correspondent, W. H. Frazier; Auditors, James Orr, Mary Luteman and J. W. Taylor. Baltimore. Automobile Commis sioner E. Austin Baughman sent let ters to the automobile commissioners of Indiana, Ohio and West Virginia asking their co-operation in Mary land’s drive to do away with obscure markers on automobiles. In his letter Commissioner Baughman explained to the other automobile commissioners that he is desirous of protecting the automobile drivers of other States from arrest for carrying obscure markers when they reach Maryland. Baltimore. Maryland’s newest bridge will be opened with elaborate ceremonies June 14. Leading a pageant which will depict the history of Maryland, Governor Ritchie and his mother will be in the first auto to cross the new structure which spans the Severn River, just outside of Annapolis. Residents of Anne Arundel county will show “The Spirit of Transportation” in a pageant. Row ing, paddling aqd swimming contests have been arranged. Hagerstown.—A two-year-old ehild was rescued from * drowning by Hagerstown police after the mother, Mrs. William Baker, had thrown it into a stream east of the city. Chief of Police Barber and Patrolman Brown, who rescued the child, found the mother on the bank of the stream, wringing her hands and weeping. She is believed to be men tally deranged and is under observa tion at Bellevue. The child, suffer ing from exposure, was taken to a local hospital. Physicians believe it will recover. Authorities are unable to assign any motive for the mother’s act. It is believed that she meant to drown both the child and herself. Baltimore. —Commissioner of Motor Vehicles E. Austin Baughman received a letter from Secretary of Commerce Herbert Hoover asking him to serve on a committee to study automobile accidents. The committee will meet in Secretary Hoover’s office at Wash ington in the fall, it was said. Secre tary Hoover, it was learned, regards the automobile laws of Maryland high ly. He was especially impressed with the examination given automobile op erators. In many states, the Commis sioner said, no license is required to operate an automobile. He is of the opinion that uniform automobile laws and regulations for every state afford the only solution of the motor vehicle accident problem. Rockville. The annual banquet In honor of the senior class of the Sandy Spring High School was held In the auditorium at the school Sat urday evening. It was given bjr the junior class of the institution and was attended by about 100 guests, Including members of the two classes, the faculty, county school officials, representatives of various organizations of Sandy Spring neigh borhood and others. Prof. J. M. Bishop, principal of the school, was toastmaster and toasts were re sponded to by Thomas Bowie, Jr., of the junior class; Miss Lucille Bond, of the senior class; Miss Katherine Hodson, of the faculty; Dr. George E. Lewis, supervisor of school prop erty; Joseph E. Janney, of the county board of education; Mrs. Fred. Thomas, trustee, and Dr. Jacob W. Bird. The hall was decorated with Rhe class colors. STATE CAPITAL Militia Ranks Thinned Out. Annapolis.— The Maryland National Guard is passing through a period of expira tion of enlistments and reports of the recent annual inspection show that enlisted strength in all cases is not up to standard, it was said at the office of Brig.-Gen. Milton A. Reckord, com mander of the Fifty-eighth (Maryland) Infantry Brigade. In a few companies as many as 50 or 60 enlistments are expiring at once The chief explanation advanced to ac count for this was that practically the entire Guard was recruited within a few weeks after the close of fine World War. Changes in officers’ pdr sonnel have also kept some units be low the mark, it was said. In general the recent annual inspec tion of the Guard was said to be “sat isfactory all the way through.” Re ports of the inspection are now being checked up at Brigade Headquarters The reports covers arms and equip ment as well as personnel. It appliet to Guard units located in the counties and inspected by Col. D. John Markey First Infantry, as well as commands in and about Baltimore city inspected by Major T. G. McNicholas and a board of Regular Army officers. Urge Governor To Give Woman County Job. Women of Allegany county are pe titioning Governor Ritchie and State Superintendent Cook of the depart ment of education to appoint a woman to the office of county attendance officer. Mrs. Elizabeth R. Menafee. Cumberland, has been suggested for the place and her name is approved by many leading Democrats. Mrs. Menafee is Western Short chairman of the United Democrats Women of Maryland and her candl dacy for this place will receive the hearty endorsement of the state Dem ocratic women’s organization, it was said today. She was twice a candi date for nomination to the Maryland legislature. Strong opposition on the part of women's organizations and certain factions to the probable ap pointment of Edward j;. Donahue, Frostburg, to this post is what put Mrs. Menafee into the race. Auto Tax Law Effective. Hereafter, Baltimoreans who wish to own motorcars will have to present receipted tax bills before certificates of title or registration will be issued by the Commissioner of Motor Ve hicles. This is in accordance with Chapter 412 of the Acts of 1924, which, like the majority of the measures passed by the Legislature, became effective June 1. In Maryland all laws, unless they are emergency measures or unless they specify' a later date, become ef fective June 1. Other Laws Effective. Among other laws effective are: Chapter 148 —Providing equal pay for policewomen and policemen. Chapter 233 —Prohibiting discrim ination in employment and pay of teachers on account of sex. Chapter 263 —Increasing the pay of the Baltimore city polite. Chapter 286 —Providing that officers and enlisted men of the State militia be insured under workmen’s compen sation law. Chapter 436 —Authorizing the Police Commissioner to make, with the approval of the Mayor, regulations for the control of traffic in Baltimore. Chapter 534 —Abolishing office of General Counsel to Public -Service Commission, providing for appoint ment of People’s Counsel and making Attorney General legal adviser of Commission. Chapter 539 —Creating a metropoli tan sanitary district in Baltimore county. Chapter 299 —Providing that pros pective women voters register with out giving their exact age, except to state that they are more than 21. According to the synopsis prepared by Dr Horace E. Flack, head of the department of legislative reference, there were 602 acts passed by the last Legislature, of which 72 were vetoed by the Governor. Motorists Pay #4,875 Fines. Motorists in Maryland paid a total of 54,875 in fines for violation of the automobile laws during the last week, according to figures compiled in the office of Motor Vehicle Commissioner Baughman. Of the total, $2,715 was paid in the counties and $2,100 in Baltimore. Twelve motorists were given jail terms, one of them receiving a 60-day sentence and the others 30 days. Four were sentenced for unauthorized use of cars and eight for operating cars while intoxicated. Those whose licenses were revoked were: Joseph Covington, 329 Pierce street; John Woodland, 307 Pearl street; Captain Carter, Frederick; Frank Fogle, 413 South Mount street; Frank Fambrough, Camp Meade; Charles A. Jackson, 398 East Thirty first street; Ray Livesam, Rocks, Md.; M. S. Redden, Denton, Md.; Walter E. Schmidt, Hagerstown; Frederick P. Winneg, Annapolis, and William Whitmore, Woodlawn.