The Sunday Oregonian., May 30, 1920, Section One, Page 2, Image 2

a
TIIE SUNDAY OREGOXIAN. PORTLAND. MAY SO. 1020
WOOD'S GAMPAIGW
PAID FOR BY THREE
$1,180,042 Contributed
General's Nomination.
to
JOHNSON BILL $200,000
Charge That Large Sum Is Taken
Out of Bank Night Berore Vote
Is Bitterly Denied.
(Continued From First Page )
nance the 1920 campaign," Mr. Marsh
a.ld, adding that it was the demo
cratic committee's plan to get con
tributions from 300.001 subscribers
and he advocated a $1000 limit.
Regarding the reported effort of
Sir. Baruch to influence the national
committee in behalf of any candi
date, Mr. Marsh said:
"Mr. Baruch has never at.any time
made any suggestion to the national
committee or to the executive com
mittee that we should be for or
HE a in-st any candidate for president.
"It couldn't possibly have been
true; It's an absurdity Mr. Marsh
eaid. "The story is that B. M. Baruch
promised this fund for the national
presidential campaign if Mr. Mc
jdoo's nomination should be brought
about," Chairman Kenyon put in.
StronfteNt .Man Wanted.
Mr. Marsh repeated his denial.
"What was Mr. Baruch doing
there?" Chairman Kenyon pursued.
Mr. Marsh said that a question of
"raising $75,000 or $85,000 to buy
typewriters, electrical machines and
physical equipment for the national
headquarters in the 1920 campaign I
was under consideration." He told j
the committee "the people will be
asked to finance the 1320 campaign."
"Mr. Baruch has never at any time i
made any suggestion to the national
committee or the executive committee
that we should be for or against any
candidate for president," Mr. Marsh
eaid.
"Mr. Baruch said to me outside the
Atlantic City meetings:
""Wilbur, I'm not for Mr. McAdoo;
I'm for the strongest man.' I'd hate
to tell you what 1 told him. I knew
trom thousands cf quarters who he
was for. He was conveying to me,
I thought, his impression that McAdoo
Is the strongest man."
Thomas W. Miller of Delaware tes
tified that with Representative Nor
man Gould he had been asked to take
charge of the campaign of the Leon
ard Wood league in eastern states
in January.
Amateurs In Charge.
""We had to go out and build an
organization, get mer to run as dele
STtfis right in the face of their own
pulitit connections if "necessary," he
said. "vc had to get men who were
new to polities amateurs."
Chairman Kenyon asked if they had
to face "old guard" opposition.
"The republican organization in
many states was against General
Wood," he replied. "I w as not to have
any of the trouble of raising money,"
Mr. Miller continued. "A. A. Sprague
of the campaign committee put to th
credit of myself and Representative
Gould $100,000 to be used in 11 eastern
states and I am prepared to account
to you for it.
"I also "have here the books of the
Leonard Wood league, showing that
between December, 1919, and May 28,
1920, approximately 1S00 people gave
a total of $21,000 for its work."
Asked if he knew of expenditures
for other candidates, Mr. Miller said:
"I've heard that a good deal of
ntoney from Henry Ford went into the
Johnson campaign in New Jersey.
Franking AImo Help. j
"I have heard that an organization,
In which Justice Cuhalan of New York
is interested has also spent some
' money in New Jersey for Senator
Johnson's campaign.
He said a Johnson supporter in New
Jersey had told him that he "had
heard this too." and on being pressed
said Allen Trimble of New Jersey
was the man he referred to.
Mr. Miller said Wood funds sent to
New Jersey included .$1 5.000 sent
through Mr. Hitchcock and $10,255
which "passed through Mr. Gould's
and my accounts."
In a sharp exchange with Senator
Heed the witness said "the Hearst
newspapers are worth hundreds of
thousands of dollars to Senator John
son." "And the corporation newspapers
the same to General Wood," Senator
lieed rejoined.
"Yes, and the franking privilege
lets a. United States senator mail
speeches and parts of a congressional
record to every part of the United
States and it's done," Mr. Miller said.
Orejton Con tit qUD.tKSO.
"Wood's Chicago headquarters ex
pense was listed at $ 1 11,798 ; the New
York headquarters, noted as "cover
ing Maine. New Hampshire, Vermont,
Massachusetts. Connecticut, Rhode
Island, New York, Pennsylvania, New
Jersey, Delaware und Maryland,"
$137,500. and Washington headquar
ters, "covering Virginia. North Caro
lina, South Carolina, Florida, Georgia
and Alabama." $31,000.
Pennsylvania, $27,400: West Vir
ginia, $3tf.OOO; Montana, $22,800; Colo
rado. $14,800; Missouri. $10,450; Idaho,
39050; Washington and Alaska, $17,
000; Maryland. $7800.
By states disbursements were listed
as follows: Ohio, $1 2$. 300; Illinois,
3120.S00; Nebraska. $fi.2O0: Indiana,
S45.titl; Oregon. $39,030; Minnesota.
32S.720; Michigan, $9650; Tenneseee,
SS0OO: Wisconsin, $7300; Iowa, $7U'0;
Louit-lana, $4550; Mississippi. $4 500;
Texas, $3700.
Other states, .including Oklahoma,
Arkansas. California, Nevada. New
Mexico, Arizona, Kansas. Wyoming,
Ulan and Kentucky, $65,559.
Cotn KHH a Week.
Senator Moses, republican. New
Hamjshire. manager of the campaign
for General Leonard Wood in 12
southern states, took the stand.
He said he took charge of head
quarters in Washington at the time
King resigned as Wood's manager.
He said he had received some con
tributions in small sums and, about
$40,000 in Chicago. He added that
"our expense was about $1000 a week
for nineteen weeks.
The senator detailed expenditures
throughout the south, particularly
with reference -to the Georgia cam
paign.
He said that "appeals without
number," came from Georgia for
more money.
Kail Inquiry Ordered.
"Have you been told of a large
sum withdrawn from the Crocker
National bank on the eve of the
California primary election? Senator
Spencer asked.
"Yes," Senator Moses replied. Later
he said his informant was "a reput
able citizen of California."
"He said he would send me a
memorandum on the subject," Sena
tor Moses continued. "I asked for
corroborative evidence. The story
was that $100,000 in cash had been
Withdrawn."
Senator Heed asked; "Did be pre
tend to say what was done with It?
"Oh, no' Senator Moses replied.
"He said no more than that It jras
drawn by a man very close to a presi
dential candidate in the contest."
Senator Heed said that no confi
dence ought to be maintained before
the committee in the matter.
"All the Injury that can be done,
has been done," Senator Reed de
clared. "I saw Senator Johnson this
noon. He denounced this story as
baseless. He requested that this
story be run to earth, that the gen
tlemen responsible for it be placed
on the witness stand. I think that's
fair."
Senator Moses replied that he
"would make an effort to find his In
formant." Inquiring Into the Johnson-Hoover
fight in the California republican
presidential primary, the senate cam
paign investigating committee today
heard evidence that approximately
$200,000 has been raised as a national
fund for Senator Johnson's campaign
for the republican presidential nom
ination and a charge that supporters
of Herbert Hoover, republican, spent
$300,000 'in the California fight.
Books Are Called For.
Alexander McCabe, California state
insurance commissioner, and one of
the managers of the Johnson organiza.
tion in that state; was the witness. He
told the committee he was unable to
give exact figures as to how mtrch
was spent in the Johnson fight In
California and how much of the
money raised there for the senator
was sent out of the state because
he did not have his books. These he
has telegraphed for, he said, and he
was aeked to remain here until they
arrived.
Replying to Senator Edga, repub
lican. New Jersey, the witness em
phatically denied that any "slush
fund .was spent in California for ,
Senator Johnson or that any large
sums had been spent that came into
use through channels outside of his
control.
Mr. McCabe branded a "a d - d
dirty scandal' a report that $100,000
in currency was drawn out of the
Crocker National bank at Sah Fran
cisco for the Johnson organization
funds on the eve of the California
primary election day.
Mr. McCabe testified that $25,000 of
the total of the California fund was
sent to the Johnson national head
quarters in New York. He added that
he had been in touch with the state
organization up to "about May 4,
when the California primary closed."
"Money was still coming in then,"
Mr. McCabe testified. "But we were
in constant difficulties meeting the
campaign of our opponents. Mr. Hoo
ver ran opposing Johnson there. Pos
sibly $20,000 has been collected since
to meet the deficit."
Contributors named by the witness
included Herbert Fleishhacker, $5000;
William H. Crocker $4000, and John
H. Rosseter $2500.
Asked as to the assertion that "nine
millionaires" are on the Johnson
ticket of delegates from California
the witness named Mr. Crocker, Mr.
Fleishhacker, George I. Cochran and
M. H. De Young. Mr. De Young, he
said, gave nothing.
"How many millionaires on the
Hoover delecration?" asked Chairman
Kerry on. i
"I've never counted," was the reply.!
As to expenditures of California Mr.
McCabe said $2000 had been sent to
K. F. Mitchell in Indiana probably
$5000 to Montana, $4000 to Michigan,
$3500 to South Dakota. $2000 to North
Dakota and $5500 to Oregon.
James A. Johnston of California, Mr.
McCabe said, had authorized some of
the expenditures, which made him un
certain as to exact amounts. To Min
nesota $1500 was sent, he said.
"Then out of California funds you
sent more than $50,000 to other
states?" Chairman Kenyon questioned.
"I'm sure that's about right," Mr.
McCabe said.
"You say this money was raised in
small amounts?"
"Yes, by public appeals for funds."
Alany Workers Busy.
"Somewhere around $50,000 was
spent in California, then. How was
that spent? Did you have Chautauqua
lecturers?"
"In four big meetings we paid ex
penses of speakers," Mr. McCabe re
plied, adding that printing and circu
lation of printed matter was the
largest item, with little or no money
spent on newspaper advertising.
"Did you see any evidence of ex
penditures by your opponents in the
Hoover campaign?" Senator Kenyon
asked.
"That was our great anxiety," Mr.
McCabe declared. "We didnt know
how effective it was going to be.
They circularized the whole state once
or twice; they had many workers,
women as well as men, employed in
house-to-house canvasses.
"They were taking whole pages of
newspaper advertising and we couldn't
tell what we had to do to counter
act it.
"They had a tremendous number of
workers out of Los Angeles. We had
to rely largely on volunteer workers.
They had the money and could get
them.
"Well, there were some people In
duccd to work by their respect and
admiration for Mr. Hoover, weren't
there?" Senator Kenyon asked.
"Yes( of course but there were great
numbers employed, returned the wit
ness, who said that in Los Angeles
alone Hoover's men had 1600 paid
workers.
The witness said one group of 300
college students were hired to stand
at polling places election day by the
Hoover committee.
Then 300 young men got their
first political initiation in this uplift
campaign by getting money at the
polls," said Senator Reed. Senator
Spencer, republican, Missouri, asked
series of questions as to contribu
tions in billboard advertising and
total -Johnson funds in ail parts of
the country.
2O3,00O In Fund.
"As nearly as 1 can calculate these
figures." he said, '"there has been
$200,000 raised for Senator Johnson
in California and New Y'ork, Is that
right?"
"About right," Mr. McCabe replied
"And this does not include local
sums raised in all parts of the coun
try and perhaps in San Francisco?"
Senator Spencer continued.
"Do you know of a drawing of
$100,000 In currency out of the Crocker
National bank for your funds on the
evening of election day?" asked Sen
ator Spencer.
"I do not," Mr. McCabe said. Later
he declared he would class the story
as a o airty ecanaai. -
PHOBE OF CAMPAIGN
DISCREDITS PRIMARY
Other Results of Senate
quiry Negligible.
In-
SITUATI0N DARK AS EVER
Primaries Shown to Have Settled
A'otliing as to Possible Ident
ity of Candidates.
OREGOXIAN NEWS BUREAU.
Washington. May 29. Aside from
some reflections cast on Attorney
General Mitchell Palmer and the un
faiomed mystery of the elusive Wil
liam Gibbs McAdoo boom, alleged to
have been underwritten for $10,000,
000, the senate investigation of presi
dential campaign expenditures has de
veloped nothing more than some des
ultory entertainment.
Otherwise the net effect has been
to discredit the presidential primary
by proving conclusively that as an
instrument of pure democracy it
comes too high. Making some kind
of a campaign in every state, save
one, ueneral Leonard Wood's man
agers are shown to have expended
approximately $1,000,000, most of U
for publicity. And that this sum Is
not high is proved by comparison with
the amount expended by Hiram John
son, wno has been put forward as a
poor man without funds, but whose
managers have expended sums which
will aggregate nearly $200,000 by the
time all of it has been uncovered.
Senator Johnson's actual campaign
has covered only one-fourth of the
states touched' by the Wood campaign.
Primary Perversity Shown.
Another noteworthy feature of the
results demonstrating the perversity
of the primaries is that those voters
who have given their preference to
Hiram Johnson in the different states
have defeated the Johnson delegate
candidates and have elected Wood
supporters to vote for Johnson at
Chicago. It is now estimated that
fully one-half of the Johnson dele
gates elected to the Chicago conven
tion are for Leonard Wood, and the
truth of this is little to be doubted
when many of them had announced
their preference for Wood before the
voters selected them.
One such delegate is L. G. Richards
of Nebraska, in.stiucted for Johnson,
but who is offended at the efforts on
the part of Senators Borah and Ken
yon, Johnson supporters, to discredit
Leonard Wood in the senate investi-
ation of campaign expenditures. In
statement given out yesterday, sir.
Richards said: "I think this is bad
usiness for the republican party. It
is an aitempt to injure the candidacy
of Leonard Wood by bringing before
the public the unquestioned lact that
rimanes are expensive and make the
people think there is something
wrong when there is nothing wrong
at all. The men who started this agi-
ation are unfair, and such statements
bout General Wood, who has proved
his integr.iy and patriotism in every
capacity, -vill be as stronfely resented
by other delegates as by me.
Disapproval Held Certain,
T am sure the people will not ap
prove this attack when they know
the facts. By plurality Vote Nebraska
nstructed its deiegates-at-large to
oie for Senator Johnson. Such work
s this will make me and other re
ublican3 feci that a-s toon as we
have complied with instructions we
will be fre to vote for the man who
has been made the object of this un
warranted attack and aid in the nom
ination of General Wood.'
The outstanding fact is that the
primaries have settled -nothing as to
he possible identity of the candidate.
Senator Johnson, who has made a
big showing in the primaries, is
counted out of the race because he
lias made so many enemies as the
result of the investigation brought
on by his champions. Senators Borah
and Kenyon, for the purpose of dis
crediting Wood or whoever else might
develop any dangerous strength.
The republican presidential situa
tion, therefore, has developed into a
luge guessing contest with "dark
horses" monopolizing the conversa
tion. So strong has become the feel
ing ithat the .Chicago convention will
feme a clark horse mat cetinite dark
horse or compromise canaidate move
ments already have set in.
H;lR;hc Again' Mentioned.
A movement to groom Charles
Evans Hughes as a dark horse was
begun in New lork yesterday when
Rev. S. Young, pastor or tne Bedford
Presbyterian church, sent a letter to
George A. Glynn, chairman of the re
publican state committee, urging the
New York state delegation to get
behind Mr. Hughes.
Former Senator Murray Crane, the
most potent of republican leaders in
TOO TIRED TO EAT?
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In this way you will avoid Indlges
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One grateful woman writes:
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A well-known Justice of the Peace
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As a gentle laxative. Hood's Pills help
New England, is understood to be
back of a movement to throw New
England's strength to a ticket to be
composed of Herbert Hoover and
Governor Calvin Coolidge.
Most of the interest in the senate
probe has turned to the investigation
of the Palmer and McAdoo campaigns.
The methods of campaign in the case
of these (wo candidates are more in
teresting tnan tne costs. raimer
being in the government service and
McAdoo just on the outside looking
in. it will be Impossible to translate
into figures the exact costs of their
campaigns to date. Having so much
government machinery at their dis
posal much campaigning In their be
half was possible without any ex
pense which they are obligated to
report.
Some of the disclosures aa to
Palmer are serious and may lead to
other investigations involving Mr. Mc
Adoo as well as Mr. Palmer. Mr.
McAdoo as secretary of the treasury
selected the men who were in charge
for y.ears of the internal revenue
bureau. These men are divided in
their allegiance between Mr. Palmer
and Mr. McAdoo, Mr. McAdoo having
as his campaign manager Daniel C.
Roper, former commissioner of in
ternal rtvenue.
Several revelations in the investiga
tion appear worthy of further in
quiry. One of these is that J. H. Cal
lan. assistant to Commissioner Roper
and the official rbr years immediately
in charge of the income tax section
of the internal revenue bureau, re
signed his place a few weeks ago
to join the staff of the Crucible Steel
company. Immediately it comes out
that the Crucible Steel company failed
to report $9,000,000 in taxes, and after
the discrepancy in the company's re
port was exposed a settlement was
permitted without prosecution.
Executive Also Short
President Dupuy of the same com
pany also was short in his tax re
turns many thousands of dollars and
was steered safely out of the mess
by former Representative C. C. Carlin
of Virginia, who is the Palmer cam
paign manager.
The treasurer of the Palmer cam
paign committee is shown to be J.
Harry Covington, former chief justice
of the supreme court of the District
of Columbia, who resigned from the
bench to become counsel for two
large German-owned concerns which
were in the hands of Mr. Palmer at
the time as alien property custodian.
In one case Mr. Covington received
a fee of $15,000 and the amount of
another large fee is not disclosed.
Furthermore, Mr. Covington is shown
to be counsel for a large eugstr com
pany, and the public is familiar with
charges made recently by Herbert
Hoover and Senator McNary of Ore
gon, that Attorney-General Palmer
is jointly responsible with the presi
dent for the present exorbitant prices
charged for sugar.
The committee may never be able
to uncover the McAdoo campaign
fund, but there is no doubt in the
minds of observers here that he has
one: that one exists which, if dis
closed, would make other candidates
of both parties look like "cheap
guys."
Reports from New Tork say there
is a very strong democratic under
current there toward Senator Robert
L. Owen of Oklahoma. These reports
go further and say that the New
York World is only awaiting the op
portune moment to flop from Hoover
to Owen. Having come out so strong
ly for Hoover, it is said that the
World feels it- should await the out
come of the republican convention
before making a new move.
JORIXIIB
HfrXEL
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CHINE (and buy the goods by the
yard) this applies to window laces
and draperies as welL
Out-of-Town Folks
It's the quality behind the price tag that talks.
Every piece of furniture exhibited in this store
is of style and workmanship that will endure.
YOU have only to write our mail service depart
- ment and your every need will be cared for.
YOU are asked to send back at our expense any
article that is not as represented. No
charges for packing.
SALE OR NO SALE. YOU'LL SAVE BY SELECTING AT EDWARDS EVERY TIME
ST
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