Evening Star Newspaper, June 19, 1935, Page 4

. A—4 aa MITCHELL ADMITS LACK OF EVIDENCE Insists Corruption Is Indi- cated Despite Absence of Direct Knowledge. ‘(Continued From First Page.) new ships. Such a construction stipu- lation was in the retirement agree- ment. Mr. Roosevelt said ‘he was not ac- quainted with the loan to the Levi- athan operators. Holds Mitchell Inefficient. In response to inquiries, he said there were no reasons for Mitchell's dismissal other than those made pub- lic, dealing with inefficiency. At the committee hearing Senators Bachman, Democrat, of Tennessee, and Vandenberg advised Mitchell in his testimony to stay outside the rec- ord, with which all Senators were familiar. Mitchell gt the start said Roper had balked his efforts tg “uncover waste and inefficiency” in the department. Pounding his clenched hand on the table, he insisted his chief had “whitewashed” deeds by “hard-boiled Republican” officials under him. “Stop pounding the table,” Senator McNary admonished the witness and a little later he warned him to “get into your charges” of “graft” and “im- proper favoritism” that brought the inquiry. Mitchell then swung into a broad charge that an advisory shipping com- mittee named by Roper and headed by H. H. Heimann of Michigan had received “millions” from the Govern- ment in “graft” through interest in subsidies. Long Is Spectator. In swearing Mitchell, Chairman Copeland gave as the reason for the hearing that “the committee should be fully informed if there are irreg- ularities or defects in the depart- ment.” Among the spectators, some of whom were on hand early to be sure to get one of the 300 seats, was Senator Long, Democrat, of Louisiana. Not a member of the committee, he said he was only “an innocent spectator.” Mitchell first read g brief memo- randum, saying he would merely “touch the high spots” of his charges. Some Senators were ready to ask an extensive inquiry, if “substance” for Mitchell's charges was shown. Leaders of both parties were aware of the possible significance of the situation for the 1936 campaign. Caucus Room Chosen. An hour before opening of the in- vestigation, spectators appeared in the Caucus Room, the largest in the Senate Office Building, which has been selected so as to accommodate the public. First was Charles Van Newkirk of ‘Washington and New York, a Marine engineer, who said he would testify “if they'll let me” concerNng what he described as the “rottenness of the Steamboat Inspection Service.” Seated before the same table in the famous inquisitorial chamber in past years have been such figures as J. P. Morgan, Charles E. Mitchell, Otto H. Kahn, Albert Wiggin, Arthur Cutten, cabinet officers and others in the field of business and politics, ‘The table to which Mitchell was summoned was placed facing the row of seats for committee members, with a loud speaker between arranged to carry the questions and answers to the spectators. Chairman Copeland, wearing his customary red carnation in the but- ton hole of his brown suit, chatted animatedly with Secretary Roper as Mitchell, in a light Summer suit and green tie, took the stand. Secretary Roper, in e tan Summer suit, was accompanied by & retinue of assistants. Describes Department. In his opening statement the be- spectacled Mitchell described the size of the Commerce Department, and commented: “I assume that the committee ex- pects that I will at this time touch only the high spots of the complaints I have made concerning the conduct of the department. Secretary Roper is familar with the contents of all the memoranda to which I will refer to- day and will, therefore, bg in a posi- tion to make any answer he desires to my complaints stated therein.” He then began reading from a 74- page memorandum which he prepared for Roper in March. “I might say now that last Sep- tember 10 he suggested that I take another place,” he said. “I esked why I should get out. He said I was not a leader of men. I told him the trouble was that these Republican bureau chiefs went to him behind my back and he whitewashed them. “I said, ‘Mr. Roper, the trouble here is graft, waste and inefliciency.’ ” He pounded his fist on the table for emphasis. “Not so much noise” cautioned Minority Leader McNary. “We can’t hear you talk through the pounding.” laughed and Mitchell Denied Seeking Post. In response to questions by Sen- ator Gibson, Republican, of Vermont Mitchell denied having sought his Job in “the little cabinet.” e “I declined the place three times,” he sald, waving his arms. “I don’t know why Secretary Roper picked on me, except that he may ® There is no substitute ' if your palate is sensitive. ImportedbyW.A Taylor&Co., N.Y. THE EVENING STAR, WASHINGTON, D. ¢, WEDNESDAY, JUNE 19, 1935. Accuser and Defense in Mitchell Hearing. Above: Ewing Y. Mitchell, ousted Assistant Secretary of Commerce, dirs the charges which resulted in a hearing today before the Senate Commerce Committee. . Below:,Officlals of the Commerce Department, who appeared at the hearing in self-defense. Left to right: Eugene Vidal, director of the Air Commerce Bureau; Secre- tary Daniel C. Roper and Malcolm C. Karlin, Roper's administrative assistant. ~—Harris-Ewing, A. P. and Under~ wood Photos, have heard of my qualifications for another position.” “What was that?” “I wanted a place in the diplomatic corps.” McNary interrupted to suggest “that you have made certain charges, Why don't you get into it?” “All right,” said Mitchell. “Let’s take the typical episodes you mentioned and go through them,” said Senator Vandenberg. “For instance, the Leviathan case.” “That's 16 pages,” said Mitchell. “Let’s have them,” interjected Cope- land. Mitchell then began describing the purchase of the United States Lines from the Shipping Board in 1929 by Paul W. Chapman and associates, Describes Stock Sale. He said stock was sold to 4,700 stockholders at a cost of $3,113,000. ‘The company got into difficulties and a Shipping Board committee was sent to New York to investigate. Proceeding, Mitchell said Admiral Cone of the Shipping Board “was re- porting to P. A. 8. Franklin and others” and Chairman O'Connor “wanted the Dollar-Dawson people to have the lines.” He suggested the board should have taken back the vessels “or have ex- tended the time for the payments on the boats as they did for the new com- pany, the subsidiary of the Interna- tional Mercantile Marine Co.” Repeatedly the committee sought to pin Mitchell down to “new sources” rather than merely a digest of vari- ous public records. On each occasion he appeared to agree and added: “I'm coming to that in just a few minutes.” McNary’s stricture against table pounding was followed by a less em- phatic presentation by the witness, as he drummed his fingers on the table instead. “Have you tapped any new sources not available to the committee al- ready?” McNary insisted, growing a bit heated. “Most of it is in the reports, but my complaint is that nothing has been done about it,” was the rejoinder. “Then you should castigate Con- gress,” the Oregon Senator shot back. “I tried to get the Secretary of Commerce to do something.” “But have you sources not reached by such investigations as the Black Committee?” “In some cases, but in this report I have tried to confine myself to the records.” “Where does the fault lie?” “The Secretary of Commerce should have submitted the files to the At- torney General,” Mitchell told the Republican leader. “Aren’t you presenting some addi- tional material on the Leviathan?” “Yes.” Mitchell then said “favoritism” had been shown to the International Mer- cantile Marine, in which the Frank- lins, Kermit Roosevelt and Vincent Astor were interested, but none to the “Chapman crowd.” Sees Obligation Reduced. Reviewing the story he already had made public in letters, Mitchell said the International Mercantile Marine had received a “scaling down” in its obligations by $5,380,000, of which the lr:fllflnn transaction constituted a part. “What would you suggest should be done?” Senator Clark, Democrat of Missouri, suddenly asked. “I suggest the whole arrangement should be vitiated,” Mitchell re- sponded. He said he would show the “influ- ence” International Mercantile had “not only on the old board, but on 2 SLECIAL Sk 3219 Non-oscillating Fan ceuvenns those who today are running the De- partment of Commerce.” “You would point out, then,” Van- denberg asked, “that no matter what happened, the International Mercan- tile Marine was still in control?” “Yes.” Copeland, ascertaining that the Le- viathan had been interned in 1914, asked what was considered the eco- nomic life of a ship. Mitchell said 20 years, but that some ships in the lighthouse service were 45 years old. He resumed his recitation of cir- cumstances surrounding the sale of the United States Lines, asserting that | “although they claim they were doing | a favor, they had every kind of lobby- ist down here.” “Can't you leave out some of this business about the Republicans?” asked Copeland. “It is very offensive to some members of the committee.” Mitchell said former Postmaster General Brown owned 4,700 shares of International Mercantile Marine stock. He continued with his recitation of facts already developed in previous in- ‘vestigations. “What year are you in now?” asked ‘Vandenberg wearily. “1932.” “That's still in the Hoover admin- istration,” said Senator Murphy, Democrat, of Iowa. “I don’t care what administration it is if we could only get some new facts,” complained Vandenberg. Mentions Visit Here. Mitchell started to describe how Kermit Roosevelt came to Washington in March, 1933, saw Admiral Cone, and sald he would ask to have the Leviathan taken out of operation “as soon as the new Shipping Board was confirmed.” “All these things are a matter of record?” asked Bachmann. * “Yes,” said Mitchell. . “Well,” said Vandenberg, “if youll start at the point where the informa- tion is not of record, you'll be very useful. We're all famillar with the record.” Mitchell then began to read his letter to President Roosevelt, pre- viously made public, in which he said he had heard the Executive had ap- proved the Leviathan deal. Asked how he knew of the presi- dential approval, he read from a mem- _All Fares are Round Trip, orandum dated February 9, 1935, from J. C. Peacock, director of the Shipping Board, to Solicitor South Trimble, jr. Peacock sald Assistant Secretary Dickinson had told him “yesterday” the President had “approved” terms for a new contract which the Leviathan owners would not be re- quired to pay a penalty for not keep- ing the big ship running. ‘The conditions of the deal as out- lined by Peacock also included Gov- ernment participation in the construc- tion of a new ship to cost $10,000,000. transactions, Mitchell said the com- pany had bought out the United States Lines in 1931 for $3,170,000 at a time when the latter company was indebted to the Government for $8,350,000. Practically all the difference, he sald, was wiped out in the transac- Chickering Iacept where woted " Sundey, June 23 $3.00 Philadelphia $2.75 Wilmington Lv. 8.00 d 11.30 $3.00 Chester " L. £.00 a.m. onl $8.50 Boston Fall River and N 1130 a.m. Back home dsy sdon. _ Saturdey, June 22 __ $5.00 Parkersburg 1$4.50 Clarksburg . .$4.00 Grafton) Lv. Washington 1106 p.am. $6.,00 Pittsburgh $4.00 Connellsville Lv. Washington 11.59 pm. $10.00 Cleveland Akron = Youngstown Lv. Washington 8.15 p.m. A Used one recital Marshall & In his criticlsm of the I M. M. | cked him to be spectfic. tion, leaving the I. M. M. a debt scaled down by over $5,000,000. Ignores Thrust. “It's easy to write letters when you are on the way out,” remarked Sena- tor Bailey, Democrat of North Caro- lina. Ignoring this thrust, Mitchell said 'he had asked Roper to “get rid” of Cone at the Shipping Board because he was nothing “but a messenger boy for the International Mercantile Ma- rine interests.” When Mitchell charged “outside pressure” on members of the Shipping Board, including himself, Vandenberg Mitchell related how W. Gwynn Gardiner, whom he described as a| Washingtof “lawyer and lobbyist” for | the Dollar lines, had come to him and said he was an “old friend” of Secre- tary Roper and that South Trimble, House clerk, was his “protege.” “He urged me to keep J. W. Barnet Clearance of PIANOS Mason & Hamlin Used in recital only , Used in display home Kramach & Bach Wendell Used one student recital Cable & Sons Used student recital ‘No Money Down 1-Year Exchange Privilege Pay on Savings Budget Plan ARTHITR JORDAN “Senator had informed him (Gardi- ner) that another Senator had said Mitchell would have opposition for confirmation.” At this point Copeland asked the witness if he had investigated the sea- worthiness of the Leviathan. “No, they have experts for that,” Mitchell replied. “I wouldn't know it was seaworthy if I went all over it.” Copeland said he had written the President when the Leviathan was re- turned to service “to be sure of the safety” of the vessel because it was old. He recallel what happened to the Morro Castle, & much newer ship. Mitchell’s declarations that he had sought repeatedly to block such “at- tempted outrages” as sale and scrap- ping of good ships at low prices brought questions from Democratic members as to when he so acted. Denies Waiting. “You waited until you lost your position before doing anything about i i i : sk gl Iiy! g g g 5 were merely “self- written “when you out.” today’s hearing if he any of the individuals Mitchell, Chairman Cope- he would call any one nec- complete the investigation. Act on Evidence. no place if the facts an investigation.’ Republican, of North & widespread inquiry demanded if Mitchell's charges were proved. Mitchell’s assertion yesterday that the Democratic “Pendergast-Reed ma- chine” in Missouri had sought to have bim removed. Mitchell organized a “Roosevelt for President” Club in Missouri in 1932. He has opposed the party organization dominated by Thomas J. Pendergast, Boys’ Band to Give Concert. The Holy Comforter Boys' Band will give a concert at Abell, Md., next Sunday at 2:30 p.m. to celebrate the opening of Camp Denges, sponsored by the Holy Comforter Camp Associa- tion. Located on St. Clements Bay, Camp Denges will be open all July for girls and all August for boys. The population of Southwark, Lon- don, has decreased 22,764 in the last 10 years. them?” Senator Balley said acidly. “No, I did not,” Mitcheil replied | with heat. these things adjusted from the outside. “I told Farley, Roper, Dickinson and Jesse Jones (chairman of the R. F. C.) that if this situation was not cleaned up from the inside, I would try in my humble way to clean it up from the outside.” “When did you tell Farley?” Bailey asked. “On May 14.” “When did you tell Roper?” “In the latter part of May.” “Was that after you had notice you were about to get out?” Bailey pur- sued. “No, before—when he appealed to NORMAN RY FARM> POTOMAC, MD. Savings on Grands as much as ‘150 to ‘190 ‘Savings on Uprights as much as ‘50 to | MAURICE EVENING § “I tried my best to have | \VING Since 1477 JOYCE ENGRAYING CO. e STAR BUILDING - - - WASHINGTON « D.C. the cl ‘100 Take advantage of this clearance CAFE MAN CONVICTED FOR “FAKED” DRINKS Restaurant Manager Charged ‘With Serving Colored Alcohol Is Found Guilty. Hugh McHenry, 53, manager of a restaurant at 1733 Pennsylvania ave- nue, wes convicted in Police Court last night on charges of false pretenscs » | growing out of serving alcoholic drinks other than the brand ordered by cus- tomers. ‘ Leniency was recommended by the jury. Testimony was to the effect that investigators for the Alcoholic Beverage Control Board bought drinks at the place and saved them in a bottle. An analysis proved the drinks to have been made from colored alcohol, it was testified. McHenry was trled on two charges, one occurring on April 2 and the other April 12, He was acquitted in one case. 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