Show HAY REFUSEDTO ANSWER Interestingand Unusual Proceeding in the State Department inEf S fort to Obtuin Testimony Washington Dec 7There was an Interesting In-teresting and unusual proceeding today in the Stato department when attorneys representing parties to a New York lawsuit law-suit sought to compel the testimony of Secretary Hay The case was an action for libel brought against a New York newspaper by Carl Fischer Hanson n Danish banker resident In New York and in It Is Involved Cupl Dlrkfcldt Christmas These persons were said to bo Interested aa agents in the attempt to sell thc Danish West Indian Islands to tho United Status Government and the publication which forma the basis for tim libel suit is said to havo reflected on their competency Some days ago Secretary Hay had notice no-tice that his testimony had been called for by the defense before the United Stales court in Icw York and today Clarence J Ileam C0 n3el for the news paper in question appeared at tim Stitn department with United States Commis SmV ° Frank L Plackatonc of this city 1111 r stenographer Robert llonev of Nw York Karccl as counsel l for Han soil The Parties won received bv See retary J ft V1 the dlPlomatc room the Secretary hMln accompanied by Judge Ta Penllold solicitor for thc State doS flout as his counsel The txanihiiatlon did net last long In fact lheruwaa no examination In sub nWSSPtV the counsel for fie newspaper attempted ito P 0011 ome fjuestlons touching tho negotiations that occurred between Secretary Hay and the Danlflh nganlH In JSW1000 The Secretary ilSBJ rffused to an wcr these and throucli Judge Pcnflcld announced his reasons for Icing so hat ho had no personal knowl edge ° fi tlu altaw at issue Whatever kiiiiwleclgo i lie hiossessed > had been acquired In his capacity of Secretary of State and not Q < Jlfl Individual Moreover the In formation Houellt to bo elicited was a privileged conlnunicuttloii to the Govorii bout of thio ttjilted States and to maize thIs miblic would 10 hIghly Jr jildIcIal to tIie Iliterests of the country Having formally noted the Secretarys refusal and tim character of his oiiHwcr tho commissioner and counsdl withdrew Jt is theIr purpose lo slate the facts to tim New York Stat court wllh u view uVr to bavins J the I Secretary of State brought before that < t 1 court on a charco of con tempt Jt anppars that the samo parties have eamIiied or sotiliL to examine Senator TiOdgo and Admiral Bradford chief of tno equipment bureau of the Navy dn parcmont who has had much to db with he negotiations looking lo the acnulsl tmn ol nmillnrr nitcn iTll coalIng utation by the United States Government |