Evening Star Newspaper, June 7, 1933, Page 4

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Work guaranteed— modest prices. : Call - | Goddard, who remarked that neither | PROSECUTOR SEES MITCHELL IN“PLOT™ I Charges Defense Is Drama-' tizing Judge’s Refusal to | Let Wife Testify. | i By the Associated Press. NEW YORK, June 7.—United States Attorney George Z. Medalie charged in Federal Court today that there scemed to be “almost a conspiracy” to create a dramatic situation out of the court's refusal to let Mrs. Charles E. Mitchell testify for her husband in his income tax evasion trial. | Medalie spent the morning cress- | examining Mitchell corcerning his sale ' of stock t> his wife in order to avoid | income tax payment in 1920. At one point he asked if the Mitchells never { thought of certain possible contingen- ! cles in connection with the stock trans- fer, which the Government alleges was a sham. “You have had the opportunity to find out what was in Mrs. Mitchell's | mind,” Mitchell snapped. Called by Defense. | Mrs. Mitchell was called as the first | defense witness, but was prevented from taking the stand by Judge Henry W. the Government nor the defense could call a wife to testify when her husband | was the defendant. i When Mitchell said today that Me- dalie had had opportunity to find out what was 1n Mrs. Mitchell's mind, the | prosecutor turned to Judge Goddard. “It seems almost a conspiracy,” he | sald, “to -create a dramatic situation | here out of a ruling your honor made ! without any motion or action on my | part. I don't know whether it is being | dol;‘e by counsel or the defendant him- | self.” Counsel Argue Exclusion. ! This started a lengthy argument con- \cerning Mrs. Mitchell’s exclusion, be- | {tween Medalie and Max D. Steuer, de- | fense counsel. Judge Goddard inter- rupted the interchange to state he had made his ruling without motion from either side. | “Do I understand you to say,” Steuer exclaimed, “that you made that ruling without any conference with Govern- ment counsel?” “I do not think it proper to enter into any such discussion with you here,” the | judge replied, “but I shall be glad to | discuss it with you outside the court | oom.” Medalie had Mitchell repeat how he {put up to Mrs. Mitchell the proposition ! that she buy his 18,300 shares of Na- | tional City Bank stock. He told sub- | stantially the same story he had told | c™ | under direct examination two days ago. | THE EVENING STAR, WASHINGTON, D. C. WEDNESDAY, SILVER SHIPMENT HERE 84,000,000 Arrives in New York From the Orient. NEW YORK, June 7 (#).—The Dollar Steamship Line yesterday confirmed re- ports of the arrival in New York of a $4,000,000 silver shipment from the Orient. The silver was brought in on the Dollar Line's 8. 8. President Grant on Saturday. It was consigred to several VAN SWERINGENS TAX DODGING BARED Created Corporations for + Officials of the Dollar Line | was the largest single shipment of silver of the larger Manhattan banks. said it in a year. POLITICS MUDDLE VETERANPAYIS3UE Stock Transfers, Pecora Grilling Develops. (Continved From First Page.) 1earing of the subcommittee agrecment on terms of a resolution designed to cover objections raised by John W. Davis, Morgan counsei, thet the com- mittee was without authority to go into income taxes of Morgan partners Davis contends, however, that even with additional authority the committee is prevented by law from going into Capital Expects Country to ™S e S dingen® Pestimony that With Congress. BY MARK SULLIVAN. him and Congress about veterans’ com- pensation is universally assumed in Washingtcn., Congress really expects the country to support the President and | does not much care. Congress, in the | what they most want. begin by dismissing the notion that it is a great struggle between Congress an Fresident over prerogative or on a fun demental issue. It has no such dignit; as_that. In another quarter there is the ma terial for such a lofty struggle if Con- | gress were seeking one. The proposal to give the President power to require | every. business concern doing an inter- state business to take out a license and the license at will goes to the very heart of the distinction between individualism | and State control. There are there may yet be a debate on this issue | rrcpomomrg in elevation to the change n the social system that is involved. Issue of Local Politics. The struggle about veterans’ compen- sation, however, has no such loftiness. This conflict is politics and nothing else, and it is local politics as distin- guished from national politics. To understand the veterans’ compen- sation question, begin by bearing in mind that every one of the 435 members | of the House and one-third of the Sen- | ate, 32, must fight next year to hold his . The nominations begin as early as nine months from now. | In every congressional district, the | opDid Mrs Mitchell ever ask you sting member has good reason to feel | : : hi d his brothe bey ith 1y | Support President in Row ‘ss,néé’.nco e i T, it e room. It was the climax to which Pecora had been driving through l\x’u} i days of cros -examination. Van Swcringen said the railroad | properties were developed into some- | thing very different than when they | acquired them; and that development ‘That the country will support Presi- of the Nickel Plate gave a dent Roosevelt on the issue” between | ground” for other acquisitions, ‘back- “We were poor when we started out n 1 * he said. “I've never been reluctant to admit that.” Pecora asked: “Now, wasn'y the money used to pay end, may even “back down” and still | the New York Central $2,000.000 in feei that as individuals they have won | cash for Nickel Plate stock borrowed | from the Guardian Savings & Trust of Understanding of this conflict should | Cleveland?” Possessed Other Assets. the money,” Van Swer- o put up for the loan, assets d acquired through marking and saving. “At what stage did you put up the $1,000,0002" the counsel inquired. “At the time that the $2,000,000 sub- scription was made to the Nickel Plate . Sectrities Corporation in refund of the giving the President power to take away | §3,000,000 borrowed from the Guardian Savings & Trust,” Van Sweringen said. In contrast to his testimony vester- some signs | day, Van Sweringen was answering the questions promptly and with little hesi- tation. He conferred occasionally with asso- | ciates, but was not pleading failure of | memory on virtually every question as 'he did on previous days. “Then as I understand it, the Nickle take over the New York Central stock,” Pecora said. “It issued 2,075,000 of preferred stock for which you under- took to get subccriptions. ‘Did the million you and your ass ciates put in go to buy any of that preferred stock?” “That’s exactly it, yes,” Van Swerin- gen_said. “Did you retain any of that pre- ferred?” | stockholders of the Nickel Plate and ot Vaness. He read a letter setting forth other detalls of the involved deal. Just prior to the iuncheon recess, Van Sweringen testified that the Vaness Corporation—personal stock holding | company—did not pay income taxes on 2 transfer of stock with a market value of $44,625,000. It was at this point that it was brought out that the trans- fer was made by means of a third corporation set up to effect it; and curred without showing any of the profit which would have been marked ion the books by a direct sale. “We have shown for the first time the | advantage in effecting a transfer of stock throuch the medium of a third corporation,” Pecora told newspaper men. Weakness in Tax Laws. i | “By this means the payment of taxes on profits is avoided. It shows a weak- | ness in the tax laws that Congress may want to strengthen.” Pecora did not disclose how much of a profit was involved in the trans- action, but he brought out that the stock was a block of 255,000 shares | of Chesapeske & Ohio with a market lue at the time of about $175. “That profit would have been a tax- able profit?” he asked Van Sweringen. { After a repetition of the question, in | which the counsel emphasized it was A legel transaction, Van Sweringen | finally agreed that otherwise it would | have been a taxable profit. On formation of the Chesapeake Cor- | poration, in which 900,000 shares went to Nickel Plate and Vaness stockhold- ers, the data Van Sweringen read showed 345,000 shares of C. & O. and | 1174000 of Pere Marquette went to: | Chesapeake. 3 The corporation also was to acquire 255,000 odd shares of the common {stock of the Chesapeake & Ohio from the Vaness ccmpany. Van Sweringen testified that the Chesapeake Corporation had been formed as a holding company and had remained so. | The letter said the Chesapeake Cor- | poration would 2ssume an indebtedness of $67.50 on each share of Chesapeake & Ohio stock by means of a $48.000,000 5 per cent bond issue through J. P. Morgan & Co. The transfer of stock was arranged | on the basis of 1.7 shares of Chesapeake Corporation for each share of C. & O. | stock held by Nickel Plate stock owners. | “The Nickel Plate, or the New York, | Chicego & Si. Louis Rallroad, as it is | j incorporated, held 345,000 shares of C. & O. common?” Pecora asked. Y Held by Subsidiary. ! Questioniing brought out that the 345,000 C. & O. shares actually were (held by the Special Investment Cor- | Plate Securities Co. was organized to| poration, a subsidiary of the Nickel | Plate. Formation of this special corporation | was detailed. | John P. Murphy, Cleveland attorney | and secretary of several Van Sweringen companies, took the stand, and from | records before him testified that on April 12, 1926, the special investment | corporation bought 155,000 shares of | Chesapeake & Ohio common and 120,- | 000 shares of Pere Marquette common. | under this procedure the transfer oc- | 2 P JUNE 7, 1933. 1 rangement whereby the Chesapeake | Corporation was to acquite 255,000 | shares of C. & O. common from lhel Vaness Co. Van Sweringen said the “General [ Securities Corporation entered the “pic- ture” in connection with this deal He testified that the Geneva Secur- ities Corporation was formed in May. 1927. and its chief purpose was to effect the exchange of securities between the | Chesepeake Corporation and the Vaness Co. by which the latter transferred 000 shares of Chesapeake & Ohic | to the Chesapeake Corporation in re- | turn for capital stock in the latter. Pecora asked why the exchange | wasn't direct between the Vaness. Co and the Chesapeake Corporation GV LEADERS AD .. EXPLOTATON Radio Talks Give Impetus to | Greater National Capé- tal Campaign. Reading from a record before him, | Van Sweringen said in part that Geneva Securities Corporation was set up to cf- fectuate the deal “to avail of income | exemption prévided by Congress in con- nection with corporate reorganization. He said the same thing was respons ble for the formation of the Geneva Securities Corporation later in connec- tion with the set up of the Alleghany Corporation. “When the Vaness C. & O."stock wa: transferred to the Chesapeake Corpor: | tion on May 10, 1927, it actually was worth more than when acquired?” Pecora asked. 4 “I would have to refer to market quotations. “T am informed that on May 10, 1927, Chesapeake & Ohio common was quoted around $175,” Pecora said. “Assuming | that is right, if the Vaness company | had sold on the market it would have reaped a handsome profit?” Questioned on Tax Evasion. Van Sweringen said that would de- pend on the cost to the Vaness Co. He said the Vaness Co. got 382500 shares of Geneva Securities Corporation stocks for its 255,000 shares of Chesa- peake & Ohio stock. Van Sweringen said the 600,000 shares of Chesapeake & Ohio stock re- ceived by the Chesapeake Corporation was taken on the books of the Chesa- peake Corporation at $104,850,000 or $174.75 a share, “the lowest quoted market price on May 10, 1927." “If you had sold there would have been a big profit>” Pecora asked. ‘That's like saying if the dog hadn't stopped running he would have caught the rabbit.” “If there had been a straight sale by the Vaness Co. to the Chesapeake Corporation, there would have been a big profit?” “We didn't do it that way.” “That profit would have been a tax- able profit?” “I'm not apt about that,” Van Swer- ingen said and turned to confer with his counsel, F. H. Ginn. “If there had been a profit it would have been taxable,” he then said. “Wasn't the purpose of the Geneva Securities Corporation to evade—by lawful ~means—this tax?” Pecora ressed. “It seeme handling i the economic way of Van Sweringen replied. I A series of radio talks by civic leaders is giving impetus this week to the an- ‘nusl campaign of the Greater National Capital Committee of the Washingten {Board of Trade for tunds to continue | exploftation of the city. The drive, the goal of which has been set at $50,000, opened Monday and will continue for 10 days. The first two days have shown such enccuraging re- | sults, according to Robert V. Fleming. president of Riggs National Benk and | campaign chairman, that the drive |leadcrs are confident of the success of | the endeavor. ! Speakers thus far in the radio series ihave included Mr. Fleming, who spoke |on WRC Monday night; George W Offutt, former president of the Board of Trade, who spoke on WJSV Monday night; Melvin €. Sharpe, executive of the Potomac Electric Power Go., who | spoke on WOL last night, and Curtis | Hodges, executive director of the Greater | National Capital Committee, who spoke on WMAL last night. | Tonight's talk will be made over ! WMAL by J. D. Kaufman. A. K. Shipe | end Chester Warrington will speak over stations WOL and WMAL Friday night, and Rcbert J. Cottrell, executive secre- tary of the Board of Trade, and Claud= Owen, president of the trade body, will .‘m{ on WMAL and WJSV Saturday pight. In urging support of Washingtonians ,lo the campaign, Mr. Fleming places | stress on the importance of the tour- {ist and convention trade to the Capi- tal, ranking it second only to the vast Government business itself. | Contributions to the fund of the com- | mittee, he asserts, cannot be regarded 2s donations by the citizens of the city, | but rather as investments. since every dollar thus spent brings back much more to the channels of local trade. | G 2 p | Auto Kills American Critic. | | BERLIN, June 7 (#).—Hooper Trask, | | theater and film critic in Borlin for the | New York Times, was killed in an auto- | mobile accident at Bolzano, Italy, it wa .}e:med today. His wife was seriously | njure “Why was it the economical way:»'[ Pecora asked. “The other way would have cost more,” Van Sweringen said. “Why would the other way have cos: | more?” Pecora inquired. “Wasn't it be- | BUDGET TROUBLE? 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Pay just $1.00 per week on the Kaufman Budget | what would happen if some other large | shareholder dropped a big block of | | National City Bank stock in the mar- | ket?” Medsdie asked. A. No, sir. Q. Did-you tell her? A. No, sir. | Q. Did Mrs. Mitchell ever ask you what would happen to her estate if the market price of the stock ever that if he runs on a record of having voted to support reductions in veterans' | compensation, he will have the opposi- tion of the largest, most highly organ- ized and most politically -conseious group of voters in his district, the veterans, their families and ffiends,} He will, speaking broadly, have the op- The Investment Corporation pald for ' cause the Vaness Co, woild have to pay this with 304,065 of Its common Stock. | & 1os e o e othoriar © P4y “Did the Investment Corporation ac-| van Sweringen said he already hac quire other shares of the C. & O, until| acknowledged that the transaction was May 10, 1827, it held a total of 345,000 | formed to take advantage of income tax shares?” Pecora inquired. | exription. > | Murphy replied he was not an officer | “We did it according to the law, I of the Special Investment Corporation, | “Yes, that is, my.brother and I, O. P. and M. J." Van Sweringen explained that he and his brother took $500,000 of the Nickel Plate securitles preferred, while their associates took another $500,000. This made up the original $1,000,000 invest- NAtional 9800. Lansburghs 7th, 8th and E Peterman's DI-‘::W?] kl.lll‘ll mini- oncan.” fiquid_gel bsmllnd base- etc.—where bed bugs breed. Safe, ‘stainless, ive. Guaranteed. ‘Get a can today—at your druggist's. PETERMAN’S DISCOVERY 1410 Eye St. N.W. Chicken Box Delivered Hot— Eyerything Is home itoa chieene, ehickens. wiil Deliver Open 9a. m.to11p. m. Including Sunday Call By or We BEER BOXES FOR DRAUGHT BOT TLED BEER/ \ALL STYLES v PRICED RIGHT IMMEDIATE DELIVERIES A%, QL ALER AND e a6, SAN ANTON/O. TEXAS., Washington Representative—W, P. Beckwith. X, AN e 700 irving St. N 5% Savings Plan Shares 6% Full Participating Shares Moniey Daposited in the PRUDENTIAL Building Association Loaned Only on First Mortgages Under Supervision of the Comptroller of Currency of the United States Treasury on Homes WRITE FOR CIRCULAR 1331 G St. N.W. Suite 305, 2nd Nat'l Bank Bid; dorsed by thousands for more than years. Get o generor 50¢ today at Peoples position of all veterans, not merety | Ment to which he criginally- referred. d‘roppul $50 or $100 a share? A. No, sir, Q. Neither of you ever thought of that? “You have had the opportunity to find out what wes in Mrs. Mitchell's mind,” Mitchell answered. FURLOUGHS ORDERED FOR MARRIED WOMEN Hundreds Notified of Indefinite Lay-off Beginning on July 1. tthose affected by President Roosevelt's reductions and removals from-the list, for every veteran reggrds himself as some time a potential gemuoner just as every veteran of the Civil War became, with the passage of time, a pensioner, Every Congressman knows this. If he is a Congressman who in M.r(‘.h‘ voted for the bill authorizing the Presi- dent to make these cuts, he knows that some ambitious person In the district | will run against him on a promise to, restore the compensation and enlarge the number of beneficiaries. That is the secret of this struggle. It is accompanied by one condition | favorable to the President’s side. What | a Congressmen wants most and whas | he may be satisfled with is merely to | be on record as having voted for larger compensation.’ If the President takes the responsibility - for vetoing the bill, | the Congressman is practically as well satisfied as if the higher compensation | were enacted. It has happened often | in’ the past since Civil War times— | though not in the present case—that | there is a kind of tacit collusion be- tween a President and the leaders of his party in Congress. Congress makes o | record of having favored pensions and | Hundreds of married women in Gov- ernment service here were receiving no- tices today that they would be indefl- nitely furloughed after July 1 as the | first step in carrying out the adminis- tration's vast economy program. | _The Census and Aeronautics Bureaus of the Commerce Department have taken the initiative in the movement, and Government officials indicated to- |day cther bureaus would notify em- | ployes coming under this clause in ample | time before the beginning of the new fiscal year. In cases where both the husband and | wife are employed in the Government | | service, they have been notified that | either the wife or the husband must ac- cept the furlough, officlals said. These | notifications have been submitted in |letter form, stipulating ample time | would be allowed the employes to reach a decision. ROWLAND FUNERAL SERVICES TOMORROW Washington for Rites for | | JGene Tunney and Wife Coming to | Surgeon and Novelist. | The funeral of Dr. Henry Cottrell | Rowland, surgeon and novelist, will be | held from his late residence, 2332 Massa- | chusetts avenue northwest, tomorrow |at 10 am. Rev. Dr. C. Ernest Smith, rector of St. Thomas' Church, will have charge, ‘The pallbearers will be H. L Rust, {jr.; Rear Admiral Hutchinson I. Cone, John Spaulding Flannery, Col. Wrisley Brown, Dr Frederick Cottrell, Dr. James H. Gore, Ord Preston and Rear Admiral Joseph Strauss. ‘Those attending from out-of-town are Mr. and Mrs. Frederick Ewing, Miss | Valle and Miss Katherine Ewing, Mrs. Jasper Rowland, Mrs. George Lauder, ! Mr. and Mrs. George Lauder, jr.; John | Rowland and Mr. and Mrs. Gene Tunney. Interment will be at Arlington Na-| tional Cemetery. The services at the grave will be private. —_— CHARGE NOLLE PROSSED Assistant U. 8. Attorney Receives Letter From Cohen, Refusing to Prosecute. The assault charge against Repre- sentative F. A. Shoemaker, Farmer- Labor, of Minnesota, which was the outgrowth of a fight with a fellow ten- ant in the Chastieton Hotel, was nolle prossed in Police Court today on mo- tion of Assistant United States Attorney Michael F. Keogh. Mr. Keogh told the court he had re- ceived a letter from the complainant, ‘Theodore H. Cohen, stating he would not prosecute. Representative Shoemaker was alleged | to have struck Cohen in the eye because 'nolse in the Cohen apartment, near | Mr. Shoemaker's quarters, annoyed the member of Congress. Later-a friendly agreement to drop the matter was reached. League Re-clects President. DI T (Bpe- ! liquidation of the boom | AGAINST SHOEMAKER | the President. takes responsibility for | preventing them. An Act of High Courage. This brings us to the presidential | politics. That does not figure now, be- | cause the presidential campaign is three years ahead, while the congres- | sional one comes next year. Mr. Roose- velt’s bringing about of a cut of some 40 per cent of the total cumpensutionK to veterans of all wars was an act of almost unparalleled political courage. | Ordinarily a President serving his first | term and presumably likely to run | step, him not to saddle the party with such | a record. On the side of the protesting vet- erans something is to be said in fair- ness. In many individual cases the reductions went too far. President Roosevelt freely admits this, and has under way machinery to review de- serving cases. On this point the dif- ference between President and Con- gress may be stated thus: The Presi- | dent is willing to restore individuals | as individuals. Congress wants to re- store large groups of veterans as groups. On the side of the veterans also there should be understanding of the | human psychology involved, Tiey were | on the lists; they, therefore, had a feeling that their compensation was a right and they see the President's action as deprival of a right. The unhappy mischief arose, as much | else arose, during the lavish days of boom. In Congress, Democrats as a party vied with Republicans as a party in a race of which the prize was to establish the winner in the minds of | veterans as the most generous with Government largesse. Individual Con- gressmen vied with each other to make a record of getting the largest number of veterans on the rolls. Community vied with community to be the loca- tions of hospitals and otherwise to get most from the national Treasury. The undoing of all that is what Mr. Roosevelt has undertaken and it con- stitutes an immense (Copyright, 1933.) The Morris Plan Bank offers the INDIVIDUAL the facilities of & SAVINGS BANK with the added feature of offering a plan to the borrower to liguidate his ob- ligation by means of weekly, semi- monthly or monthlydeposits. It is not neces- sary to have had an account at this Bank in order to borrow. cial) —At the last meeting until of the Communit 1408 H | the public interest, | terest in this case was the public in- Van Sweringen said the $2,000,000 Guardian Trust loan wes repaid by the securities company out of the proceeds of the preferred stock. Unification Plan Recalled. “That $500,000 cash was borrowed by my brother and I on collateral we had accumulated over many. years,” Van Sweringen said. “Did you repay that loan?” Barkley asked. “Out of profits and the sale of some properties,” Van Sweringen said. Pecora asked about an I. C. C. de- cision in 1916 which turned down a unification plan presented by the Van Sweringens involving the Chesapeake & Ohio, Pere Marquette, Eric and Hocking Valley. ‘The counsel said the commission ruled it could not“escape the fact that the plan was to allow a minority to control the road through denial to pre- ferred stockholders of the right to vote. “Do you recall that?” he asked. “All two well, I do,” the witness re- plied. . He added that the plan was not put forward, however, “to enable us to hold our jobs and contrcl,” but for the bet- terment of the roads involved. He said the preferred stockholders in the road were earning substantial dividends and | often opposed “betterments.” “We have a conflict of private and he said. “Our in- Test. “Which comes first?” “The public interest,” Van Sweringen sald without hesitation. Pecora asked if the Van Sweringens again would be reluctant to take such a | had conformed to the I. C. C. deci- and party leaders woul | ston. b % would beseech | *rhe witness said it was studied care- | fully and treated as a “worthy sug- gestion.” His attitude was a reversal of his manner on previous days. He went into detalls smilingly, where- as he had on the other days protested almost every step. He now seemed almost eager to answer. Defends Trust Agreement. Pecora asked about a trust agreément entered into February 11, 1924, by. the Van Sweringen brothers, C.- L. Bradley and J. R. Nutt, by which the four were named munngers of the trust into which railroad stock was put. Then he quoted the Interstate Com- merce Commission as criticizing this trust agreement as permitting its par- ticipants to exercise management con- trol over rail lines without ownership— directly or indirectly—in the lines. “That trust was made just as you | would draw your last will and testa. ment and provide for the handling o your estate after death,” Van Sweringen said. “Shertly afterward we canceled it because it hadn’t occurred to us in the light mentioned by the commission. “That angle hadn't occurred to us.” The witness readily detailed forma. tion of the Chesapeake Corporation in May, 1927. It was formed, he said, to divest the Nickel Plate of holdings in the C. & O. in order to make the latter the basis for detall of the | the propcsed consolidated system. | > o €| "'He eald 900,000 capital shares were | issued originally, and this went to the The BANK for the INDIVIDUAL Loans are pass- ed within a day or two after filing application— with few excep- tions. MORRIS PLAN notes are usually made for 1 year, though they may be given for any period of from 3 gl to 12 months. MORRIS PLAN BANK Under Supervision U. S. Treasury *Character Power Are the Basis of Credit® | but thought this was correct. | | Pecora went through an involved | series of stock transactions with Van Sweringen that members of the com- mittee did not pretend to understand. It was so complicated that even Pe- cora and Van Sweringen had difficulty making clear to each other which com.- | pany and which stock they were refer- | | ring to. | Pecora. asked about the exchange of C. & O. stock between Nickel Plate's | Special Investment Corporation and the | Chesapeake Corporation, Van Sweringen sald the Special In- | vest! Corporation held 345,000 | shares of C. & O. stock, subject to the | | $67.50 indebtedness. | The Nickel Plate delivered to the Chesapeake Corporation the 304,065 | | outstanding shares of the Special In- | | vestment Corporation. In return for | this delivery the Nickel Plate received | 1589 shares of Chesapeake Corporation | stock, while 516,911 shares of Chesa- peake Corporation stock were simul- | taneously distributed to Nickel Plate's common stock holders. So _involved was the testimony that as the lunch hour approached the hearing room was not half filled with spectators. think,” he said, i;ioh, it was legal enough,” Pecorzw‘ said. The income tax squabble took nearly half the commitice’s time yesterday, leaving only a few hours for question- ing O. P. van Sweringen, who proved the most forgetful witness the com- mittee has had. While Morgan and other partners in the banking house sweltered in the hot committee room, Pecora struggled with Van Sweringen without success. The famous railroad owner an- swered “I don't recall” or “I don't re- member” to almost all of Pecora's questions, finally drawing a rebuke from Senator Barkley, Democrat, of Kentucky, who was presiding. “It seems incredible that a man of as large affairs as yours could have so little information about them,” the Kentucky Senator said sharply. “I dom't want to depend on guess work,” Van Sweringen replied. About all he remembered during the day was that he and his associates received | from Morgan & Co. two loans totaling almost $40,000,000, on October 21, 1930. | From the minutes of the Vaness company, & Van Sweringen holding | company, Pecora learned that a little | WMAL— TONITE 6:30 to 7 “The Budget Bunch and Me” in “Joe Turner Nite” 1005 Pu 176 The | more than $11,000,000 was borrowed KAUFMAN, Inc. Pu. | from various banks between late 1923 | and early 1925, but the witness said | he could not remember what the big Hearing Tires Morgan. During the tedious detail, Morgan vawned broadly. He listened only at intervals. | Van Sweringen said the Securities In- vestment Corporation was dissolved soon after it had transferred the C. & O. | stock. Pecora turned to another part of the intricate series of transfe: the ar- We Serve BEER at . @) drawn direct from the wood keeps Olmsted Beer properly VALLEY FORGE on Draught 10¢ 1336 G OUTSIDE CORNER ; 5th & for this very good reason LMSTED BEER is cooled in the kqv as it should be. Then used! Our modern electric cooling and dispensing equipment, which temperatured, Washington's foremost refrigeration experts— NATIONAL ELECTRICAL SUPPLY CO. OrmsTED GRILL ' [0. A. DELVIGN sum was used for. Pecora asked if Van Sweringen had not been complimented before the In- terstate Commerce Commission for his fine memory. “I don’t recall that,” the Cleveland operator replied. “I don't try to use my mind as a memory tablet” BEST ¢ o Its into your glass. 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