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The midland journal. (Rising Sun, Md.) 1885-1947, June 13, 1924, Image 2

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Brands Leases of Reserves
Illegal and Corrupt
\ • ■ ■ ■
Committee Adopts Report With But
Few Changes—Chief
, Points In Re
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
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
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
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
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
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
“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 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
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
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
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.
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.
- -
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.
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.
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.
Will Seek Amendments at
Next Session
Approves Only Because Of Urgency—
Flays Lawmakers For Discard
ing Mellon Rates—Energy
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
"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
“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
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.”
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.
Harry M. Daugherty Will Kot
Face His Accusers
Makes Sweeping Denial Of Wrong
Conduct In Note To Probe—Re
fusal Based On Brother’s
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.
Crampton Measure Given 275-90 In
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.
New States Will Not Remove Land
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.
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.
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.
The Latest News From Ail
Over the State
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
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.
Militia Ranks Thinned Out.
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
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
Chapter 539 —Creating a metropoli
tan sanitary district in Baltimore
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
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.

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