U.S. OIL SCANDAL

Sun (Auckland), Volume I, Issue 304, 15 March 1928, Page 11

U.S. OIL SCANDAL

SECRETARY OF TREASURY GIVES EVIDENCE PACKAGE OF LIBERTY BONDS By Cable.—Press Association. — Copyright. WASHINGTON, Tuesday. The Secretary of the Treasury, Mr. A. W. Mellon, was to-day called before the Oil Committee of the Senate. He stated that Mr. Will Hays, formerly Postmaster-General, had posted to him the Liberty bonds, valued at £IO,OOO, offered by Mr. H. F. Sinclair, the oil magnate, as part of a contribution of £ 52,000 to the campaign funds of the Republican Party in 1923. Mr. Mellon said he was busy at the time, and did not open the package immediately. He told Mr. Hays he would return the bonds when he discovered the contents of the package and this he did. His suspicions were not aroused by the transaction. The chairman of the Republican National Committee, Mr. W. M. Butler, also gave evidence. He said Mr. Hays had met him in New York and offered him a package which he said contained £5,000 worth of bonds, but he refused to accept it. He denied a long series of questions as to whether he had any knowledge of Mr. Sinclair’s bonds. Mr. Hays was called and stated that Mr. Mellon’s evidence was correct, but he had a very indistinct recollection of his conversation with Mr. Butler. He had not told him where the bonds came from. When he was asked why he did not tell Mr. Butler, witness said he considered the matter irrelevant. —A. and N.Z.