Evening Star Newspaper, December 3, 1926, Page 6

SOGETY THRONE | WELFAE TEA SHIP Mrs. Frank B. Kellogg Among Prominent Patrons—Rum- mage Sale Success. he Child Welfare Soclety's tea- Poom and hummage sale, at 1315 F street, will count among Its patrons this afternoon women of the highest official and soclal circles of ‘the Na- tion. Mrs. Frank B. Kellogg, wife of the Becretary of State; Mrs. Frank W. Stearns, personal friend of President and Mrs. Coolidge nd at present a White House guest, and Mrs. Fred- erick H. Gillett, wife of Senator Gil- are to be the nk B. Noyes, presi- lent of the Child Welfare Society. With these patrons will be served the scores of late afternoon shoppers who drop in for a cup of hot tea and erhaps a golden waffle before going ome. The “waitresses” today, us on each of the two preceding days of the sale, will be a committee of the sea son’s debutantes and yvoung soclety matrons. Mrs. Geoffrey H. Thomp- son is chairman today and she and Miss Allison Roebling will be hostesses. While the tearoom caters to the | hungry, the rummage sale continues to draw hundreds of buvers. Although many articles have been carried away following their purchase, the stocks show no visible signs of deplétion, ns new supplles are brought in each morning. The woman workers arriv: at the store an hour hefore the scheduled opening and work to rear- range the wares and price the xnmm»‘\ ing goods. As the hour for opening nears little crow:ls of shoppers assem- ble before the entrance to the build- | ing and when the iron grill is opened men and women file In to seek pur- chases in the booths. One of the most Interesting hooths. perhaps, is the book department. Its tock is as vet complete in variety, and booklovers mav browse to their heart's content. Mrs. A. Livingston | Stavely and Mrs. Victor Kauffmann preside at that counter. The success which had attended the first two days of the seven-dny bazaar is expressed, the workers de. clare, by nearly §2.000 which has been realized from the sales. That success has_brought with it encouragement to the women in charge, who are now certain, they said this morning, of completing the $£100.000 endowment | fund of the Child Welfare Society, which is the real purpose of the rum. mage sale and its auxiliary, the tea- room WILBUR IS CALLED IN OIL CASE; HOGAN HITS INTERFERENCE (Continued from First Page.) 15, and asked the wliiness if he cussed this with Fall before they were dispatched. The witness was uncertain in Sis mind whether he had talked with Fall or not, and Mr. Roberts refreshed his memory by con fronting him with the testimony he gave in Los Angeles, which stated that Bain told ¥all in substance the ature of the proposition and re celved his approval Expected Only One Bid. | As a result of his conferences with various concerna who might be in-| duced to bid on the project, Bain tes. | tified that on his return to Wash- tngton he told Fall there was hut one bid to be expected and that was from the Pan-American Co. The others were partial bids, due to “teaming up.” he s: Mr. Roberts then drew from the witness the statement that before Fall left for New Mexico in April, about two days before the bids were opened, he told Bain and Finney not to close any contract without advising him and not exercise anv independent ac tion without referring it to him. Bain | sought to inject into this statement the words “und the Navy also,” but Roberts produced his Los Angeles tes. timony, which did not call for any conferences with the Navy asked 3f he had been faet that a man named n assigned to take | and draft | f the had by sposals, not the bids, a formal contract for submission to Fall before he went away, hut the | witness could throw no light on this. | Bain did k however, that con- | ferences b held between Gino Dunn of White Co., Joseph Cotter of Dohieny Co. and sev 1 Interior Department officials be fore the bids were opened on the | question of regulating royalties in the | contract that had not then heen exe cuted because the bids had not been | received ‘Is it true that you saw copies of | GROSNER'S | der the | shifted cross Debutante Chairman g T i 9% ‘| loath to go into the project because MRS. GEOFFREY H. THOMPSOM Today’s chairman of debutante tea- room attendants. the. Pan-American Co. bids before the bids were opened?”” asked Mr. Roberts. “Not to my present recollection,” replied Bain. The opinion fendered by Oscar Sutro, counsel for the Standard Ofl Co. of California, which held that un- law it was illegal to enter into such a contract, was next dis- cussed by Mr. Roberts. Roberts pro- duced a letter Bain had received from Ford, Bacon & Davis Co., which in- closed this opinion and Bain's reply, in which he stated that he was hav- ing Sutro's opinion examined by at- torneys both in and out of the Govern- ment_service. Bain then_testified he gave Sutro’s opinion to Fall and Finney, but that as far as he knew no solicitor in the department had been asked to pass upon it Prior to I's_departure in April for New Mexico, Bain admitted under guestioning of Roherts, that he told Fall. because of the legal difficulties involved in the contract. it would be difficult to get satisfactory bids. The result of this was the letter Fall wrote to Denby stat that difficulty had Leen encountered with the companies owing to the fict that payiment in oil would be made. Fall's letter ex- plained to oil companies could not construct the tanks and the construc- tion companies wanted cast in return for their work. He suggested at that time that conzressional authority be btained whereby Navy oil from the Califo reserves could be sold for money, and that the funds thus re- celved could be nsed for building the storage facilities. Contract Sent to Fall. on April 17, 1922, Bain, said the Pan-American bids were referred to Fall _at Three Riverts, N. Mex. A. W. Ambrose, ofl expert of the department, took with him a draft of the contract and in fact “all the information there was on it in Washington at the time.” After Ambrose got there Bain said that he had received word to “go ahead.” Bain testified that he had learned from Doheny, about April 12, that the Pan-American Co. would sub- mit an alternate proposal N the construction work at Pearl Harbor. When the bids were opened, April 15, it was found the Doheny Co. had submitted two offers. “A” bid provided for the specific work asked for in the invitation. “B" bid was different, he said. It contained a clause granting preferential right to the Pan-American Co. in the Elk Hills' reserves should they opened hereafter to leasing. Bain Secretary and Admiral J. K. Rob- ison. Fall was at Three Rivers when the hids were opened and did not re- | turn to Washington until after the contmct had been awarded. The wit- ness pointed out, however, that Secre. tary Fall had posal when not Asks Value of Rights. s went briefly into the ques- tion of preferential rights in the clause. The witne: aid that he had once remarked to Cotter, representative of the Doheny com: pany, that “a preferential ©l se’' was v valuable. matter of fact.” said Mr. “vou knew the Elk Hills reserve contained from 150 to 2560 milllon barrels of ofl, ‘did v not RBain said that that was his impression. Mr. Roberts abruptly ied by wire. “As a Roberts tain's trip January of 19 with var regarding the At this timoe the onversion | in the department. » had testified previously, Bain suid he had found the oil companies to California during ar] Harbor project. Bk Hillls lease and Fine Kuppenheimer Overcoats at This Price Not only are they made of very best woolens—but the models are just the long ulster-types other styles you'll li And sides, a goodly portion of t were the house KUPPENHEIMER—hoz at* $40° and be hew of tha be | d the “B" bid was accepted | and approved by himself, Mr. Finney, | ced to the “B" pro- | contained | $ rights | NG | “tied in a knot” as to the legality of |the executive order under which the | reserves were transferred from the | Navy Department to the Interior De- | partment. It was brought out by | counsel that under this order the de- | partment "had approved preliminary Fplans for its agents with respeet to | the exchange of crude oil for fuel oil. Obtaining a statement from Bain to |the effect that the Standard, General | Petroleum and Union companies were their attorneys doubted its legality | Attorney Roberts produced n written by Bain on Ma | nddresred to Secretary Fall, |then at Three Rivers, N. Mex Doubts About Contract. Tn this letter Bain told Fall that the Standard and General Petroleum com- panies, particularly, were adopting a very technical attitude toward the plan_with regard to the transfer of oil. He said that Mr. Story of the | Sandard Co. had gone so far as to |d0uhl the right of the Standard Co. | to transfer oil to the Pan-American | Co. under the plan. “None of us want Mr. Doheny to |get Into any trouble,” the director wrote Fall. “We want to do all we can to help him.” Bain suggested to Fall that the de- | partment join with some. siall ol company in a friendly suit in a Fed- eral court so as to bring out a definite | ruling on the proposition involved | He suggested also that it would be | better for the Attorney Ueneral to put | into writing the opinion_which he | understood the Attorney General had | expressed informally as to the lezality | of the department’s action. When former Attorney General Daugherty was a witness at the trial |last Tuesday he was asked specifically |1 he had ever rendered an opinion on | | this proposition. Daugherty had ve-| | plied that he did not recollect whether |he had given an official opinion o< not, but that the records would show. Mild Bensation Caused. | The introduction of this letter to | Secretary Fall, a reply to which was { not put into evidence, produced a mild sensation in court. Under further questioning, said that the companies which protested the plan stated that they | could not afford to risk participation | n it unless its legality was well estub- | lished. | Bain was asked if he had not for- | warded a letter to Senator Smoot of | the public lands committee ing | | that Doheny's plan had first come to | | his attention in August. There was | considerable controversy as to the | exact date. Bain explaining that the | notation that he had made on the let- ter had been written some time later. He thought he was in error as to| the date. That it was a month later. | At one point during his cross-exami- nation Bain became confused over the rapid exchange of names. He re- ferred to the oil défendant as “Secre tary Doheny.” which caused consid | erable merriment among the spe | tators and even to the 12 jurors who had been sitting somewhat wearied throughout the proceedings. Bain | hastily corrected himself. Bain then was excused as a wit- ! ness, for the time being at any rate, |and the defense called Harry B. Holly | of New York, purchasing agent for the Pan-American Co. He was ques- tioned briefly by Attorney Hogzan as to correspondence with Doheny as to | { the purchase of supplies and material | for the construction of oil tanks at | Pearl Harbor. These inquiries were | made prior to November 1, 1922 Pearl Harbor Project. Referring to the Pearl Harbor pro ject, Admiral Gregory testified that it was exceedingly desirable and neces- sary to have the work under hoth | contracts done by the same company. | Mr. Hogan asked the witness if any |one trom the Department of the In terior performed any functions in carrying out the construction work. He replied that no one had taken part [ nor had Secretary Fall offered any | Buggestions. | Mr. Doheny's attorney precipitated |a clash with Mr. Roberts when he asked Admiral Gregory whether in his opinfon the Government had re ceived value by the construction work at Pearl Harbor. Roberts sought to | keep the question out of the record. | Justice Hoehling permitted the de- | fense attorney to go into this phase of the situation after Hogan had | changed his query to ask: “Was the work _done below the cost provided in the April 25 contrac “It was done below cost,” replied the witness. “I have not the exact figures but it was approximately | 197,000. “Who got Hogan asked. ““The Government,” replied Admiral Gregory. Mr. Hogan asked if there was dis- Bain § the benefit of thi cussed in the Navy at that time the that it was estimated that | *xamination to the scene | when he went to con- | oll company officials n were still hang- | STAR, WASHINGTO: necessity to the national defense of this Pearl Harbor project. The wit- ness replied there was. Objection Is Overruled. Roberts objected, but was overruled by the court. Hogan told the court that he did not want the details of the plan but just the substance of the policy de- termined. Imiral Gregory sald the determi- nation was to proceed with the proj- ect decided on by the general board approved by the Secretary of the Navy. The attorney then inquired about the general board of the Navy, which had recommended the profect to Sec- retary Denby. Gregory replied that the hoard was composed of “the very highest ofticers of the line, whoxe function it is to consider all essentinl teatures of strategy and poliey Mr. Hogan elicited from the wit- ness ‘that ‘“the Navy places In the gencral board the highest confldence that can be shown.” Mr. Hogan asked the witness the need of the secret orders with which the papers were marked. He replied that the plans and specifications themselves were not marked secret, but when given to the J. (i. White Corporation and others it was with the request that there be no publicity on account of their confidential na ture. Personnel of Board. Mr. Lambert, attorney for Fall, asked about {he personnel of the gen: eral hoard and also if any one from the Interior Department was on it. “Of course not,” replied the witness. In cross examination Mr. Roberts sked whether it was known by the general board that the Secretary of the Interior would make the contract. He replied that the board understood that Secretary Fall was the business agent in the matter. After a few minutes of routine examination, Admiral Gregory was excused. . Mr. Hogan then called Gano Dunn, president of the J. G. White Engincer: ing Corporation. Asked about his first meeting with Dohen The witness replied that it was February 16, 19 He first met J. J. Cotter of the Do- heny company in January, 1922, and then he explained that he recalled a casunl meeting with him some vears sefore. Mr. Dunn had never had business velations with the Pan-American Co., prior to this 1922 meeting, though he sald the company may possibly have bought oil from the Doheny firm. At present, the White Engineering | Co. has no business relations with the )I": -American nor with Mr. Doheny he said. The Pearl Harbor project was first brought to his attention by Director Bain, whom he saw in Washington on December 23, 1921, Bain disclosed to him the project at this conference. Confiden Nature Stated. le first said that he wanted to impress on me the supreme den nature of the plan. Navy regarded it as so important that the pians were brought -over by | of by | commissioned oflicer: the regular messenger Bain showed him the specifications and plans and if the firm would be inters making instead conti- | The | D. C., FRIDAY, DECEMBER 3, 1926, bld. “The compensation was to be in crude ofl, as I understood it,” the witness recalled. He assured Bain that he would talk the matter over with his assoclates and come back with an offer. Dunn's firm_ wha oppowed to ac- cepting ol and the witness testified he knew he would have to connect up with an oll company to get the business 1 hiw organization. He waw Introduced o Mr. Cotter of the Pan-Amertcan (oo hy Hain in Janu- ary, 1024 ‘There followed n weries of conforences hetween Dunn's com- Dany and_ Doheny's compuny, re- sulting In Doheny submitting a lump sum bid and employing the White apany on n -plus basls. Wanted Economical Work. Mr. Dunn resumed his testimony after the luncheon recens, He said he first met Kocretary Kall some time during March of 1822 and was Intro- duced by Hain, ruation was fal, but did _discuss proposed work at Pearl Harbor. Il expressed to him, the witness . that he hoped to have the doné s cheaply and economi- 1 mext meet Mr. Todny, at lunch,” he said. Mr. Dunn related that. he had pre- pared A und B bids for the Pan- American Co. and that the last touch was put on the drafts April 14, the day before they went to Washington to submit the bids. Mr. Cotter had prepared another Craft, he explamed, which he worked into his own draft. No one connected with the Government saw the bids before they were offered, he testi- tied. The question of “preferential rights,” was brought up by Mr. Hogan, and the witness explained that ne had discussed this with Mr. Cotter. He told Cotter that such a clause would not in his opinion disquality the bid, but would really make it more attractive, In response to questions by Mr. Hogan, he explained that as the ing agent for the Pan-American Co. his friend had been allowed a fee of $172,000 on the April 25 contract work. This would allow a profit of 7 to 10 per cent. U. S. Benefited by Savings. e explained that he was asked to put into the contract a clause under which the Pan-American Co. would “The Best Goods Sometime: Come in Small Package: For this reason the small ads classified under Christmas Gift Suggestions ——appearing daily in The Star are worthy of your at- tention.” They contain un- usual and helpful hints from Washington merchants. Refer to Them Now. The Architects Building 18th and E Sts. N.\W. Now ready for oc- cupancy. For terms of space, subdivided tenants, apply to the to suit resident manager at the building. Telephone M. 8604 New Roxy Theatre Opening Day Approaches nothing and aiready has a reai market value_aggregating over $3,500,000. The Theatre reaches its full earning power immediately upon opening. ML SIEEL work aud masonry I re completed. Equipment and decoration of the new structure at 50th St. and 7th Ave. — in the heart of New York's theatre district — are nearly completed. Soon the world's largest and most beautiful Motion Picture Theatre will be open. *‘Roxy "—the leading showman of the country — will undoubtedly sur- past in his own modern theatre his ncial and artistic successes while directing the Strand, Rialto, Rivoli and Capitol. Here he will find full scope for his genius. The plant to pro- duce his exquisite lighting effects and screen the pictures is revolutionary. The organ has three separate consoles allowing a range of musical production never before attempted. In a pit that can be raised or lowered will be a large orchestra with anoted conductor. A choir of voices led by an interna- tionally famous director and a ballet known the world over, will be on the stage. Froman especially constructed broadcasting room Roxy and his Gang | will be “‘on the air’’ again His ten million de house is expected to take in five million dollars a year. We offer for investment units of stock that make you one of the owners. Class ““A™ stock is entitled to cum- ulative preferred cash dividends of $3.50 per share per annum and partici- pating dividends with the common stock to the extent of an additional $1.00 per share. Dividends of over £3.50 pershare havealready cumulated. With each 3 shares of Class *“A™ stock you will be given free 1 share of Common stock. The Class ““A”" stock yields at cur- rent prices about 109, yearly ferred cash dividends, and parti dividends may increase this yield substantially. Conservatively estimated yearly net carnings amount to_$2,100,000, or over four and one-half times the Fe- quirement for the Class “*A"" pre- ferred dividends. This indicates ap. ely $4.00 available each year for dividends for each share of the Common Stock, which has cost you Send Coupon for Illustrated Booklet Send the coupon, wwrite, telepone or call for information about Roxy's great emterp rise. We nvill send you afree, itlustrated booklet describing Roxy's neww Theatre and the securities auithout obligation on your part. Send the coupon moaw for free booklet. Bennett, Bolster Room 824, Investment Bldg., ‘Washington, D. C. Telepbone: Frankiin 281 & Coghill, Inc. B 7 Wall Street New York City This information, whiie mot guaranteed, is received from veliable sowrces. Katz theatrical enterprise in Chicago, which was_given away like Roxy Theatre's Common Stock as bonus, returned over £400 a ¢hate to investors and the equity_ownership of such theatres as the Rivoli, Rialto, Strand and Capitol has likewise proved tre- mendously profitable. Based on appraisal of the property, the value of the tany ‘ble assets amounts to over $45 for cach share of Class A" stock. Increase of market vaiue of Roxy Stocks should be greatduring the next three months. earnings after preferred dividends must be used to retire Class ‘‘4 which is not callable for less than $50 per share. The Corporation has agreed to make application in due course to list the shares on the New York Curb Market. Moreover, 156 of net stock, \ Common stock of the Balaban & Ws3 tew York City ut ooligs complere information nd the securities of the Rosy Theatre Corporation. Dept. R ——— give to the Government the benefit of any savings made. Attorney Hogan brought ou! that the conatruetion work at Pearl Harbor netted the Government $466,000 as savings under the estimated cost of the work, and that the tiovernment Kot the benefit of this. The work on the December 11 con tract at Pearl Harbor was substan- tially completed a year or a half ago, M. Dunn claimed. Reverting to the opening of the bids of the April 25 contract, Mr. Dunn told of a conference followlng th opening, at which he and Mr. Cotter talked the question over with Bain und Finney. Cotter said that he hoped the department would recom- mend bid A, since both of the Pan- American blds were the lowest sub- mitted. Gotter asked that the slgna- the Secretary of the Navy as well a8 that of the Secretary of the Interlor be put to the contract.” “There was quite a lively scene in the conference room and considerabie argument over this point,” the wit ness related. “Finney said to Mr. Cotter, ‘Now Joe, I don’t think that Is at all necessa He said that Cotter replled: ‘1 feel <o strongly ahout this judge, that I don't feel confident in taking responsibility for this tract unless the Secretary of the Na: slgns it, too.” The witness was asked concerning any conferences he might have had zzz K AY'S with Government officials relative to supplemental work at Pearl Harbor. Late in November, 1922, while at the Navy Department on other matters, he related that Admiral Robison stop- ped him in the hall and told him that there was supplemental work to be done at Pearl Harbor. This is a strictly confidential matter,’ he said, and 1 kept it so0," the witness added. Would Set Aside Club Sale. Attornev Abner Stegal, repreesnting the bankrupt corporation known as the District of Columbia. Sports and Amusement Club, today asked the District Supreme Court to set aside a sale of the club's assets by H. Win- ship Wheatley, trustee in bankruptey, to Fred Drew for $12,500 November 27 last. Siegal claims the price is too low and he asserts that the lease 000 and that the total assets corporation were valued at §1 Ho asks a rule on the trustee to show cause why the sale should not be vacated. U. of M. Club to Elect Officers. The annual election of officers of the | University of Michigan Club of Wash- | ington was held at the luncheon mee: ing at the Cosmos Club yesterday Officers elected for the coming ¥ by the local alumni association wi Norman Damon, president nis P. Quinlan, vice president: ecretary and tressure | | WILL AID NEW PAPER. Cole of Iowa to Seek Money to Boost Corn-Stalk Plan. 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