CONTENTS INVESTIGATION OF ALLEGED PAYMENTS BY THE MEXICAN GOVERNMENT TO UNITED STATES SENATORS TUESDAY, JANUARY 8, 1929 UNITED STATES SENATE, SPECIAL COMMITTEE TO INVESTIGATE PROPAGANDA, Washington, D. C. The special committee met, pursuant to call, at 10.30 a. m. in the Capitol, Senator David A. Reed of Pennsylvania, presiding. Present: Senators Reed of Pennsylvania (chairman), Johnson, Robinson of Arkansas, and Bruce. The CHAIRMAN. The committee will come to order. I desire to make a preliminary statement. I was told about two weeks ago that when Mr. Sheffield was ambassador to Mexico he had sent to Mr. Olds, then Assistant Secretary or Undersecretary of State, a photograph, or perhaps an original, of a receipt supposed to have been signed by Senator Borah for a very large sum of money, approximately 100,000 American dollars, supposed to have been paid the Senator by the Mexican Government. Immediately I asked Assistant Secretary Castle to institute inquiries in the State Department and learn whether such a paper had been received by them, and if so, what had become of it. He turned the matter over to Mr. Lane, and I have asked Mr. Lane to come here this morning to tell us what he did and what he discovered. Mr. Lane, you will be sworn: You do solemnly swear that the evidence you are about to give in the matter now in hearing before this special committee of the United States Senate will be the truth, the whole truth, and nothing but the truth, so help you God. Mr. LANE. I do. TESTIMONY OF ARTHUR BLISS LANE, CHIEF DIVISION OF MEXICAN AFFAIRS, STATE DEPARTMENT, WASHINGTON, D. C. (The witness was duly sworn by the chairman.) The CHAIRMAN. You will give your full name. Mr. LANE. Arthur Bliss Lane. The CHAIRMAN. And your position. Mr. LANE. Chief division of Mexican affairs, State Department. The CHAIRMAN. You have heard the statement I have just made to the committee? 343 Mr. LANE. Yes, sir. The CHAIRMAN. Will you tell the committee all that you know about that matter? Mr. LANE. When Mr. Castle spoke to me I immediately made a search through the files of the State Department, and could not find anything of the nature mentioned. I then made a search through the papers which we have in our division which bore on the investigation that took place last winter by this special committee, and I could find no trace of any documents of that sort. I then made inquiry of Mr. Old's former secretary, who is now acting as secretary to Mr. Clark, Undersecretary of State, and she and her name is Mrs. Cook-stated that she had never seen any document of the nature indicated. When Mr. Olds left the department he turned over to me all of his confidential material, memoranda, and so forth, regarding Mexico, and I presumed that if such a document had existed it would have been turned over to me. However, Mrs. Cook stated that she did not have access to the confidential documents which Mr. Olds used to keep in his safe, and she was therefore not able to give me any information on the subject, but suggested that I consult Mr. Spencer Phoenix, who was assistant to Mr. Olds. but who is no longer connected with the Department of State. Mr. Phoenix was in Washington during the past month, as technical adviser in connection with the drafting of the Pan American treaty on arbitration and conciliation, and Ĩ had an opportunity of asking Mr. Phoenix about the document. Mr. Phoenix said he recalled a document of that character, but that he was not sure whether it was a photostat of an actual document or whether it was a copy or a translation. And I might say parenthetically that a great number of spurious documents of that sort were brought to the attention of the State Department and the embassy last year. Secretary Kellogg, as you will remember, refused to examine them, but they were brought to Ambassador Sheffield's attention for examination. Mr. Phoenix said that documents of that character-and that there was one that mentioned Senator Borah-had been destroyed. The CHAIRMAN. Did he say by whom? Mr. LANE. He stated that he had destroyed it. The CHAIRMAN. Did he say by whose order he had done it? Mr. LANE. He did not say. I would suppose-but, never mind. The CHAIRMAN. Where is Mr. Phoenix now? Mr. LANE. He is in New York City, with Lee, Higginson & Co. The CHAIRMAN. Was that done before this committee began its examination into the Hearst documents? Mr. LANE. I do not know. The CHAIRMAN. Was Mr. Phoenix in the State Department in an official capacity at the time this committee was investigating these matters, if you know? Mr. LANE. Yes, sir. The CHAIRMAN. When did Mr. Phoenix leave the State Department? Mr. LANE. He left either in May or June, 1928. The CHAIRMAN. Any questions by the members of the committee? Senator JOHNSON. As I recall it must have been done before the existence of this special committee, and I gather that from the fact that Mr. Olds was before the committee and talked to us at very great length, if you recall. The CHAIRMAN. Yes; and apparently in confidence. Senator JOHNSON. In confidence, but nothing of the sort was ever suggested. Is that the recollection of the other members of this committee? The CHAIRMAN. That is my recollection. Senator BRUCE. You said you presumed that this document was destroyed at the suggestion of-and then you stopped. At whose suggestion? Mr. LANE. Well, I do not know. I had started out to give something that I merely supposed, and then it occurred to me that this special committee is not interested in any suppositions. Senator BRUCE. Well, I do not know about that. It might possibly help us. Senator ROBINSON of Arkansas. Did you learn who destroyed the paper? Mr. LANE. All that I know was what Mr. Phoenix told me. Senator ROBINSON of Arkansas. Did you ask him why he had destroyed it? Mr. LANE. No; I did not. Senator ROBINSON of Arkansas. Were you curious about it? Senator JOHNSON (interposing). I can easily imagine it was taken for granted that it was pure nonsense, a spurious document, created for a purpose entirely different from that shown on its face. Mr. LANE. That is the way I always regarded those documents. Senator JOHNSON. Let me ask you about some other spurious documents inasmuch as the inquiry has been opened up in that regard: There was a vast number brought up here by a certain person from Mexico at one time and which the State Department finally obtained. Mr. LANE. Yes, sir. Senator JOHNSON. Who brought those documents here? Mr. LANE. I do not know. Senator JOHNSON. Aren't you familiar with the facts in regard to that matter? Mr. LANE. Yes; I am familiar with the documents but I have never learned who actually brought those documents here. Senator JOHNSON. Don't you know that it was Mr. George Barr Baker? Mr. LANE. He said he did not bring them. Senator JOHNSON. Did not you obtain them from him? Mr. LANE. Yes, sir. |