Evening Star Newspaper, July 26, 1925, Page 16

BETHLEREM STEEL DENIES BIG PROFIT Answers U. S. Suit With $9,933,695 Counter Ciaim. Schwab Is Defended. Br the Associated Press. PHILADELPHIA, July 25.—The five Bethlehem Steel concerns today filed answers in the Federal District Court denying the Government's alle- gations in a recovery sult that they recefved excess profits of upwards of $11,000,000 for building ships during the war emergency. In addition to counter claims totaling were filed by three of the panies against the Government. he suit was filed in Philadelphia April 17, and on the same day the Bethlehem interests filed In the Fed- eral District Court in New Yark suits for a total of $9,744.899 against the Government, claiming that amount as balance due on account of ship con- struction during and just after the war. Schwab is Accused. The Government in its suit stated that Charles M. Schwab, head of the Bethlehem enterprises, was_director general of the Emergency Fleet Cor- poration and the dominating figure in the Bethlehem companies at the time the contracts for ships were given to the Bethlehem Shipbuilding Corpora- tion, Ltd. It was charged that Schwabh as head of the Emergency Fleet Corporation forced other ship- building companies to limit their profits to 10 per cent on ship con- struction, while he took no action to have his own companies adhere to the same rule of profit. All these allegations were specifi- cally denied by the five companies in- volved. Besides the shipbuilding cor- poration, the other defendants are the Bethlehem Steel Corporation, Bethle- hem_ Steel Co., Fore River Shipbuild- ing Corporation and Union Iron Works Co. Demurred at Taking Charge. The answer of the shipbuilding cor- on said: “Charles M. Schwab was invited by President Wilson to become director general of the Fleet Corporation at a time of an acute crisis in its affairs and for the special purpose of speed- ing up its ship construction program. Mr. Schwab objected to accepting the appointment, giving as one reason that he could be of more service as the head of the Bethlehem enterprises, and as a second reason that he could not entirely divest himself of his re- lations with Bethlehem. He was as- sured, however, by President Wilson and Messrs. Hurley and Colby that he need have no fear on account of his relations with Bethlehem, and he finally vielded to their urgings upon the express understanding and agree- ment_that while director general of the Fleet Corporation he was not to participate in any way in transac- tions between the Fleet Corporation and the defendants.” The answer contained a copy of a letter dated April 30, 1918, to_the president and Corporation “in which Schwab ex- pressed the inadvisability of his par- ticipation as director general in the transaction of any business between the corporation and the defendant and requesting that such business be han- dled by other officers.” Further to show that steps had been taken to offset any participation by him it was set out in the answer that all con- tracts had to be submitted to the board of trustees for their approval and that Schwab never at any time was a member of the board of trustees of the Fleet Corporation. Denies Knowledge on Profits. The shipbuilding corporation denied it had knowledge with respect to Gov- ernment contracts that all other ship- builders’ profits were below 10 per cent, the contention set up by the Government. The shipbuilding corporation after an audit of its accounts notified the! Fleet Corporation in February, 1923, that it owed millions of dollars, but ignored the notice and approved the recommenda- tion of the standing committee on claims of the Fleet Corporation that trustees of the Fleet | the defendant severai | ' | Heads Grotto Committe STEPHEN H. TALKES, Chairman of the general committee In charge of the annual outing to Marshall Hall on August 12 of Kalli- polis Grotto. Plans niade by the com- mittee contemplate the most preten- | tious outing in the history of the| Veiled Prophets. { the Government did not owe the de fendant anything, but, on the con- trary, the shipbuilding corporation | |owed the Fleet Corporation more than | $11,000,000. | During the audit of the Bethlehem | |account with the Fleet Corporation, | the answer said, there was no sugges- | tion “by any members of the United | States Shipbuilding Board that there | |was any fraud in any of the trans-| | actions set forth or any overpayments | on account of such transactions, or that any overpayments on account of | such transactions had been made | through mistake of fact or law, al-| |though by reason of such audits by the defendant’s account from time to| time during the construction and after | the completion of els__the Fleet Corporation was in a position | to know all the material fa | spect thereto and the defen | made a full disclosure to the Fleet| Corporation of all such facts.” Says Obligations Were Met. All the answers set forth that| Schwab, as head of the Bethlehem enterprises, faithfully carried out the | understanding he had had with Pres. | ident Wilson and other high officials | of the Fleet Corporation and that he | did not at a time take part in the| relations between the Fleet Corpora- tion and the concerns in which he had a pridate interest. The shipbuilding corporation put in | a claim of $8,839,920 with interest which it is contended the Government | still owes the corporation. The Beth. | lehem Steel Company filed a claim for | $852,401, while the Union Iron Works | Company made a claim of $241,474. A | clalm for credit is made for the Fore | River Shipbuilding Company if it shall be found that it is entitled to| any money on claims which hereto-| |fore had been disallowed by the Fleet Corporation and the Shipping Board MARK W. BALDWIN DIES. Bank Note Engraver Was Former- 1y Employed in Bureau Here. Mark W. Baldwin, for many vears a | resident of Washington and known as one of the most competent bank note | engravers at the Bureau of Engraving and Printing, where he was employed, died at his late residence at Mount | Vernon, N. Y., July 15, according to word recefved here. Mr. Baldwin had | been in failing health for several vears. | |” Mr. Baldwin moved to Mount Ver-| | non several years ago, when he left the bureau to enter the employment | of a New York bank note company. | He was a member of the Mount Pleas. | ant Congregatlonal Church. { Interment was at Clifton Cemetery, Irvington, N. J. the Sports Vogue in Touring Cars How far the New Franklin Touring has influenced this season’s rapid growth in the sport car vogue, no one can say. But thete is no question of the impression it has made on all who have seen and driven it. For the first time an open car has been created which closed cars in beauty. Its custom features, foreign style touches and fine sports air give it a plessing personality. High power, with comfort, handling ease and depend- ability which betters the famous Franklin standard, rounds out a car instantly desired by those with a flair for action, originality and quality. It makes ownership, from every angle, an enduring delight. SPORT SEDAN Franklin Series 11 comes teady for the road—fully equipped with appropriate accessaries, spare tire and cover —at the catalog price. Only tax and freight are extra. FRANKLIN MOTOR CAR CO. HARRY W. BURR Other Franklin Dealers in This Vicinity Baltimore—The Franklin Motor Car Co. Richmond—United Motors, Incorporated |Arch B. Williams and Ralph T. Pimes; and advisory, | each of the sections of the District— ; | southw | period of thi THE SUNDAY GROTTO QUTING LEADERS NAMED Committees Selected ® Make Event Best of Kind Ever Held. to Personnel of the committee charged with the detailed arrangements for the annual outing of the Kallipolis Grotto to Marshall Hall Wednesday, August 12, was announced last night by Stephen H. Talkes, chairman of the general excursion committee. L. Whiting Estes is ex-officlo chairman of the general committee and A. Mitchell Phillips is vice chairman. Members of the other committees follow: Program and music, Samuel F. Shreve, Frederick Wilken, Harry B. Plankinton and Willlam H. Bur- ton; finance and tickets, Lloyd H. Hinman, Willlam Erskine, Adolph Volkmann and Harry S. Scroggins; athletics, Charles A. Stevens, Joseph W. Leverton and Charles D. Shackel ford; advertising and publicity, A. M. Phillips, Kirk Miller, James E. Chinn, refreshments, Charles Corby; medical, Drs. G. F. Day, Grant 8. Barnhart, T. B. Crisp and Wade H. Atkinson L. Whiting Estes, E. W. Libbey, Arthur W. Shaw Worth Landon and Arthur M. Poynton. Outing to Set Record. Chairman Talkes pointed out that the outing undoubtedly will be the most pretentious in the history of the | grotto. Rain put a damper on the festivities last year, but the veiled | prophets, it is said, have a guarantee | of falr weather from the Weather Bureau for this year's outing. Those charged with the various en- tertainment features have planned an ambitious program of athletics, novel contests and games. The athletic pro- | gram contemplates the popularization | of some of the old-time events, such | as a greased pig race and peanut and | potato races. One of the outstanding features will be a beauty contest. This will be un usual in that four girls representing northeast, northwest, southeast and | st—will be chosen as the pret tiest in their districts and awarded | valuable prizes, ranging from evening gowns to jewelry Band Contest Listed. The grotto band will take an im- portant part in the festivities, giving a concert on the evening boat en route arshall Hall and another at the resort. The refreshment committee will turn over great hogsheads of orangeade and lemonade to the guests free of charge. Tickets will be sold at the whart by the grotto representatives on the day of the outing. The advance sale will be held at grotto headquarters and at Schmid’s bird store, 712 Twelfth street. FEWER VIOLENT DEATHS. | HERE THAN A YEAR AGO| Report for First Six Months of 1925 Compared With Corre- sponding Period of 1924. | One hundred and thirty-seven deaths by violence were recorded by the police and coroner during the first halt of the current year, a de- crease of 9 compared with the corre- sponding period of the preceding vear. Traffic deaths the past six months totaled 38, a decrease of 5 compared with those reported during the first six months of last year. There were 18 homicides during the six-month period this vear, last year's similar period showing a total of 16. There was a decrease of & in acci dents other than traffic fatalities, the figures being 47 and 55. Suicides de- creased 7, 34 being recorded the first six months of this vear and 41 the similar perfod of last vear. o 2 STAR, WASHINGTON, OLD CHATEAU BURNED. Historic Furnishings Destroyed in Randan, France. VICHY, France, July 25 (#).—Fire today destroyed the chateau of the DucWess of Montpensier, at Randan, near here. The duchess is the widow of a younger brother of the Duke of Orleans, pretender to the French throne. Firemen, rushed to Randan from Vichy and Clermont-Ferrand, were unable to check the flames. The chateau contained furnishings of great historic and artistic value and housed a collection of rare laces valued at many millions of franc: Formula “Of Murco” Our Chemists, in producing “Murco,” the Lifelong Paint, use as a pigment, White Lead, and as a vehicle, Linseed Oil, Turpentine and Japan Drier. = LiQuip paINTS 2 There are hun- dreds of paint man- ufacturers—and no two using the same formula. There are thousands of Paint- ers—and practically all use Lead and oil. This time - tested formula is the rea- son for the Beauty and _Durability of “Murco.” E. J. Murphy : Co., Inc. | 710 12th St. N.W. During the first half of last yvear only five persons were drowned. Thir- teen were drowned during the similar vear, Salesroom—1503 Main 5280 Connecticut Ave. N.W. Service—1814 E St. N.W. Culpeper—Coons Bros. Motor Co. D. C, JULY 26, 1925—PART 1. Refrigerators We've reduced our popular brand — mak- ing special prices on every size and style. $23.00 Refrig- erators. RE- 519=7=5 2325 DUCED to. ... $26.50 Refrig- erators. DUCED to. ... $32.00 Rfifrég- rators. - 7. BUGED w.... " 28L 535‘00 Refrig— 310 13528 13720 .75 DUCED +o.... 543= $63.50 R}elf;:ig- o - .50 BUCED w. ... D0=2 Other styles— now $I2 to 3100 erators. RE. DUCED ¢o.... $40.00 Refrig- erators. DUCED to.... $42.00 Refrig- erators. R E DUCED to.... $48.00 Refrig- erators. RE LEARANCE days—when cost and profit are for(attcn in the duty of prepnring for the coming season. You can reap a harvest of savings at these concessions in prices. Choice:)f the Whitney Go-Carts A type and a finish that will suit every taste — and all reduced - Strollers—with hood. Ecru finish. Very easy riding and comfortable. CLEARANCE at. ... $46.00 Pullmans, Cafe or Sld: finish: REDUCED +o $47.50 Pullmans, Frost Walnut or Old Ivo REDUCED to $55.00 Pullmans, Cafe finish— REDUCED ¢o . $60.00 Pullmans, Cafe finish— REDUCED to $65.00 Pullmans, Old Ivory finish— REDUCED to Porch Roc]:ers ‘A ver y comfortable model. High back and strong M:plc frame: nicely finished. Seat indouble weave. R E i DUCED to $4,.50 All Rustic Pieces Reduced We've taken one-fourth off the price of Cedar and Hickory Furniture. It’s the better kind of Rustic Furniture—that will stand up un&er Smice. $11.00 Hickory Tables— REDUCED to. s . $12.00 Hickory ttees— 36220 REDUCED to $8.00 Cedar Chairs 87‘._50= 88.60 $24.00 Strollers, Cafe finish— REDUCED to $32.00 Strollers, Cafe or Sage nish— REDUCED to $42.00 Strollers, REDUCED to $43.50 Strollers, Cafe finish— REDUCED to $32.00 Pullmans, Cafe, Blue or Sage finish— 'DUCED to $42.00 Pullmans, Cafe finish— REDUCED to 1190 $26:50 3322 35 82650 358 Armchurs— REDUCED ¢o...... $6.00 Hickory Arm- chairs and Rockers— ¢ REDUCED, each, to. $7.00 Hickory Rockers— REDUCED ¢o...... $8750 Hickory ocllere— REDUCED ¢o ...... $9.50 Hickory Rockers— REDUCED ¢o...... $10.00 Hickory Armchairs— REDUCED ¢o...... $11.00 Hickory Rockers— . REDUCED ¢o...... .15 .25 $ $ .50 and Rockers— REDUCED, each, to. $10.00 Cedar Armchairs and Rockers— REDUCED, each, to.. $11.50 Cedar Armchairs Snd R.ockerl— REDUCED, each, to.. $12.50 Cedar $K.25 $4.35 $7.00 $77.50 g $14.50 Cedar Tables— REDUCED o ....... $16.50 Cedar Settees— REDUCED to...x Charge Accounts Are willingly ofened upon re- quest. It's one of the ways s which we can serve our customers con- venience.