Evening Star Newspaper, December 8, 1936, Page 5

INAT.&T. PROBE Gain to Western Electric Is Cited in Hearing Before F. C.‘C. By the Associated Press. Resuming its investigation of the American Telephone & Telegraph Co., the Federal Communications Commis- sion heard testimony today that West- ern Electric Co. made a $2,112,000 profit out of the organization of Bell ‘Telephone Laborities, Inc. The testimony was given by Samuel Meisel, special F. C. C. investigator, who said he spent several months studying Bell Laborities’ records. R. H. Gregory, Western Electric con- troller for the last 28 years, testified that prior to the organization of the laboratories unit in 1925 the work it does was carried on by Western Elec- tric’'s engineering department. Meisel said Western Electric made its profit in the organization of the laboratories by selling to the labora- tories “for $4,552,000 properties car- ried on the books of the corporation (Western Electric) at $2,439,000.” He added that the profit was “cred- {ted to surplus” by Western Electric. The Telephone Division of the F. C. C. planned to spend about two _weeks on the history and activities of the research unit. A commission representative said the work would be pushed in order to make the findings available to Con- gress as soon as possible. The entire investigation, for which Congress ap- propriated $750,000 about two years ago, is expected to be finished by July 1. The original allotment was supple- mented with $400,000, but it was re- liably reported Congress would be asked for $350,000 more to wind up the inquiry. After the hearing on Bell Labora- tories, an authoritative source said, the commission is expected to look into the workings of Bell Securities. the Bell Cos.’ part in radio broad- casting then may be studied. The investigation has been accom- panied by reductions of more than $20,000.000 in long-distance telephone rates. The latest reduction, amount- ing to $12,000,000, is scheduled to be- come effective by January 15 — Rails (Continued From First Page.) system back to the Van Sweringens for nothing. Ball told the committee yesterday he bought the controlling stocks of the 23,000-mile railway network at auction tn 1935 from a Morgan bank- ing syndicate. Under a recently-completed pyra- mid of holding companies, Ball said, control of the huge system now rested in $8,250 worth of stock. Do you mean to say that $8,250 worth of stock controls billions of dollars worth of property?” Chair- | man Wheeler asked. “Yes.” “And that one man can toss this control around like a toy balloon?” | Wheeler continued. “I wouldn't call it'a toy balloon.” Gave 10-Year Option. ‘Ball told investigators he had given the Van Sweringens a 10-year option to repurchase the controlling stock of Mid-America Corp., the top holding company, for $8.250. Meanwhile, they were given the right to vote the stock as they pleased, | although Ball retained actual owner- ship. As active managers of the system, he continued, the Van Sweringens ‘were given a drawing account of $100,~ 000 a year by Mid-America. “They could have purchased control through their option for one month’s salary,” Wheeler noted, adding: | “Houdini himself never made such a phenomenal performance. The Van | Sweringens lost this vast empire, and | regained control the same day, without putting up a 5-cent piece. Wheeler commented yesterday that it appeared Ball had acquired direc- tion of the Van Sweringen holdings at “about the price of two first-class locomotives.” “If you want to put it that way,” Ball said. Ball Controls Companies. Since the death last month of O. P. Van Sweringen, Ball said, he has held control of 249 .nterlinked companies— including 7 major railways, coal mines, department stores, trucking lines, parking lots and a peach orchard. He is the Republican na- tional committeeman for Indiana. Max Lowenthal, committee counsel, said Ball had made a “‘paper profit” of 3,500 per cent on his $274,000 invest- ment. He bought the stock for about 14 cents a share, Lowenthal added, although the market price that day ‘was more than $1. Lowenthal estimated the Morgan syndicate took a loss of more than $40,000,000 when it auctioned off the stocks and bonds which it held as se- curity for a loan to Van Sweringen. Investigators said Morgan probably would be summoned to explain this transaction, although he has not been subpoenaed. A circus press agent plopped a midget into Morgan’s lap at the financier's 1933 appearance before a Senate com- mittee investigating banking, financing and security sales. Morgan last year described the float- ing of allied loans in this country and other financial events to the Senate Munitions Committee investigating causes of American entry into the ‘World War. e HONOR FOR STANDLEY of War Woodring and Acting Secretary of State Moore will be among prominent guests who will pay tribute to Admiral William H. Standley, chief of naval operations, who retires January 1, at a luncheon and testimonial reception to be given by the Military Order of the World War Thursday noon at the Mayflower Hotel. More than 100 guests will partici- pate, including high ranking officers of the Army, Navy and Marine Corps and other branches of the Govern- ment. Presiding will be Maj. John D. Cutter, commander of the local chap- ter of the organization. and a detach- ment of the Navy Band will furnish music. —— e Recovering From Poison. Carl Lipp, 35, who collapsed in front of Glen Echo Amusement Park, in Montgomery County, yesterday, was in improved condition today in Georgetown University Hospital. He told a group of workmen he had swallowed six poison tablets. He lives in the 1500 block of Q street. I was getting into a lot of things.” THE EVENING STAR, WASHINGTON, D. C, TUESDAY, DECEMBER 8 1936. PROFIT REVEALED OFFICIAL LAXITY Tells of Bargain in Railroads he said. O’Brien (Continued From First Page.) the prosecutor asked him again if he hadn’t heard shots at the scene. Couldn’t Say It Was Gun. “I heard a mnoise as I was going through the restaurant,” he replied, “but it might have been an automo- bile backfiring. I couldn't say it was a gun.” “You have heard the sound of guns in your experience, haven't you?" Goldstein asked. “Yes, I have,” he replied. Carpenter then was questioned as to whether he had made a signed state- ment at police headquarters implicat- ing the defendants. He admitted the signature on the statement was his, but said he couldn't remember whether he had made any of the statements. Behrle was then called to the stand, appearing even more nervous than | Carpenter had been. Big, red splotches | appeared on his forehead and cheeks, as Goldstein grilled him concerning a ! him to the police. Squirming in his chair, Behrle ex- claimed: “Yes, I signed the statement, but I don't remember anything that's in it. The police made me sign it. They kept me up all night.” “Can’t Remember Thing.” He said, he couldn't remember the identity of any particular policeman who made him sign it. Behrle, however, did place Mont- gomery near the scene of the shooting, testifying the defendant picked him up in his car at Second and East restaurant in front of which O'Brien | was shot. “Did you see anything happen or hear anything after you got there?” Goldstein inquired. “No,” Behrle said, “not a thing thnt | I can remember.” Lieut. Cox testified he took the de- | fendants to Providence Hospital, where O'Brien was recuperating from his wounds, and said the latter identified Warring, Sweeney, who attacked him. Still on crutches as the result of leg wounds, O'Brien was called to the stand as the first witness when the trial got under way late yesterday. For an hour he parried the questions of Assistant United States Attorney Goldstein. The seeming evasions ob- viously irked Justice Gordon, who on one occasion sharply reframed a ques- | tion in an effort to get a direct an- swer from the witness. Denies Story to Police. O'Brien flatly denied having told Police Lieut. Clement Cox that three of the defendants—Bond, Tear and | Montgomery—were principals in the | shooung He denied also that these | and the other three—Warring, Ware and Sweeney—were at the scene. O’Brien at first refused to testify on the ground “it might incriminate me.” Finally, advised by Justice Gordon that he would not be “incriminated,” he admitted having been shot. His story was that “some cars drove up; some fellows got out and there was some shooting.” Prodded, he said four men ganged him with drawn guns outside of a res- taurant i the 200 block of B street southeast, and that he had seized one and attempted to use him as a shield against the others. The defendants are charged with assault with intent to kill, and assault with a dangerous weapon. They are represented by Attorneys Harry T. Whelan, Charles E. Ford and F. Jo- seph Donohue. All of the defendants but Tear are out on bond. He is serving a sen- tence in District Jail for operating smoke screen. Rearming Pace Slowed. New problems have slowed down air rearming in Great Britain. similar statement allegedly made by | Capitol streets and drove him to the | Montgomery and | ‘Ware as having been among the group ' HARRY BEHRLE. PRINTING INDUSTRY EXHIBITION ARRIVES Train With Displays of Latest | Equipment in Graphic Arts Is Here. On the last lap of a 16,000-mile trip from coast to coast, the printers’ | | progress special train, commemorat- | ing the 500th anniversary of the in-| vention of movable type by Johann | Gutenberg, arrived in Washington to- day for a two-day stay. Sponsored by the American Type Founders, the train of four cars in- cludes exhibits of the latest equipment of 25 companies in the graphic arts. From the smallest exhibit, a 66- word version of the Lord's prayer, cast on a piece of type the size of a pin- head, to the largest, an automatic press operated in an improvised au- ditorium with a seating capacity of about 30 persons, the train is fitted with the latest developments in the printing industry. The cars are air-conditioned and equipped with special lighting. A public address system and inter-car telephones are two of the features and all equipment is driven by & generator operated by a gasoline en- e. Officials of printing plants and the Government Printing Office have been | invited to visit the traveling print | shop, which will be open until 9 p.m. today and from 11 a.m. to 9 p.m. to- morrow at Union Station. G I fortunate individual! in and SEE the A B C in actual o] NO DOWN PAYMEN Payments Start in FEBRUARY'! 714 13th St. N.W. The Most Acceptable A B C Oil Burner in YOUR home this Christmas, consider yourself a most And if, perhaps, you are not familiar with such things as “orange flames,"— of our engineers explain it to you, or phone for home demonstration. See It in Actual Operation! Open Daily Until 9 P. ift for the Home . . . ABC OIL BURNERS Santa should decide to leave an “Mistolators,” and the like, come peration, burning oil, and have one T— M. Natl. 3068 Opposite the Telephone Bldg. > George A. Ball of Muncie, Ind., fruit jar manufacturer, is shown, via candid camera, as he told how he bought control o/ the $3,000,000,000 Van Sweringen cnterprisea for :274 682. “I knew . P. Photo. SPLIT DISGUSSED FOR CUP REGATTA Association Discusses Plan to Divide Events Into Two Sections. ‘The question of maintaining the an- nual President’s Cup regatta as a single event or of splitting it into two groups dominated the third annual meeting of the President’s Cup Regatta Association, held last night, L. Gordon Leech, spokesman for the power boat group, advocated putting the sailing, canoeing and swimming events on earlier in the season, retain- ing the motor boat contests at their present late date to keep them the crowning events in the racing season in the North. President John A. Remon said that he could speak for the canoeing and swimming interests in support of this idea. The sailing interests, however, actively opposed the suggestion, feeling that the regatta should remain a unit of aquatic events in which no group was dominant and that the whole program should be ad- vanced to a week or two weeks after Labor day. Two constitutional amendments were passed, one separating the func- tions of handling the association and the regatta, with a view to splitting up the work, and the other providing for a member boat club passing out of existence, in which case vacaricies in the Board of Directors were to be filled by general membership appointment. The entire slate of elective officers was re-elected. They are: Remon, president; R. Lyman Sexton, vice pres- | ident and director; Robert V. Fleming, treasurer, and Admiral H. G. Hamlet and James A. Councilor, directors. A lovely gift for her! Fine Elgin movement, engraved or plain case and link bracelet. Only. HITINROAD FIGH Auto Associations Pledge Aid te End Menace of Narrow Highway. By & Staff Correspondent of ‘s he Btar. BETHESDA, Md, December 8— Bupported by two new backers, the Bethesda Chamber of Commerce re- newed its fight today for widening and resurfacing of Old Georgetown road to eliminate hazards which already have claimed three lives. Allied in the battle will be the American Automobile Assoclation and the Keystone Motor Club, which pledged their aid at a meeting last night in which chamber members de- plored the “laxity” and “negligence” of State officials. The fiery session, inspired by the wreck in which two men met death Sunday, was climaxed by the cham- ber’s decision to reopen the campaign. The drive will be led by the same committee which successfully advo- cated Wisconsin avenue improvements. A. A. A. Joins Drive. Richard H. Hamm of the American Automobile Association’s Safety De- partment appeared voluntarily before the chamber meeting and asserted that “in view of the fatal accident my organization will be glad to work with your committee in making studies of the road and in extending any other necessary assistance.” The Keystone Motor Club was in- Jected into the campaign by C. Melvin Sharpe, & member of the Advisory Board of that organization, who de- clared he had observed conditions along Old Georgetown road for the last seven years and “fully realizes the need for improvements.” ‘William Buckley, former president of | the chamber, called attention to the tragic accident on Sunday afternoon in which two motorists were killed when their automobile skidded on the wet Via the - Sundowner "On January 6, nenly & year ago, is organization went on record as hvorln; the widening and mufllcln: of Old Georgetown road to correct conditions such as those which caused the delt.h of those two men.” he de- “Our committee placed the matter before the State Roads Commission and the Montgomery County Commis- sioners and were told that nothing could be done because of the lack of funds for road work. “T feel there is no'need for the in- troduction of a new resolution in this chamber. We are already on record. ‘The thing to do at this time is to agi- tate the improvement of the road in every organization in this area. The improvement of Wisconsin avenue was ‘won by work, very hard work. We will do the same on Old, Georgetown road.” Says Accident Inexcusable. Samuel E. Stonebraker, author of the original improvement resolution adopted last January, said both the chamber and the Montgomery County Civic Federation had gone to State and county officials and pointed out the need for widening the narrow, treacherous highway. “The tragic accident on Sunday was inexcusable,” he said. “It was due in & large measure to thé negligence of State officials, who neglected even to make a study of & hazardous traffic condition in the very heart of this great metropolitan area. “But for the efforts of this chamber, Wisconsin avenue never would have been paved. We are going to the front and have Old Georgetown road widened. The State officials will not stand back in the face of unanimous, wholesale public opinion and refuse to correct such conditions.” He proposed that petitions be cir- cularized from "the District of Colum- bia line to Halpine” and obtain the | signature of 2,000 or more taxpayers to take to the State Roads Commis- slon and demand the work be done. John L. Imirie, who lives at the scene of Sunday's mishap, said that another motorist was killed last Octo- ber when his car ran off the road on dangerous Gingell's curve and over- turned. He informed the chamber that an- FLY UNITED TO CHICAGO! x CHICAGO only 43%; hrs. Fastest evening flight to Toledo, Chicago, Twin Cities, Omaha. A brand new one- stop plape service to Chicago. Leave 3:40 p.m... .. enjoy a chicken dinner aloft and arrive Chicago 7:26 p.m. Five other convenient fast Washington- Make your next trip via Pennsylvania and United Air Lines. The fare is only $36.00 and includes everything. Chicago flights daily. ‘TICKETS: 808 15th St. N.W., ME 5636 (24 hr. service) or Hotels; Travel Bureaus. *UNITED AIR LINES FASTESY. SHORTEST S8ETWEEN THE EAST AND MOST PACIFIC COAST CITIESY 19.75 Other Elgins for Men and Women, 18.75 to 39.75 HAMILTONS - Stunnmg raised-figure dial! This 17-jewel movement, gold- filled case is made for him_. s40 Other Hamilton Watches for Men and Women, $37.50 to $55 WALTHAMS o A little princess’ wotch 15-jewel movement, cord bracelet in natural gold only. A Waltham special at— . _________ 25 $1DOWN . . . $1 WEEKLY, Plus Small Carrying Charge LANSBURGH'S—STREET FLOOR—WATCHES. & ush SEVENTH; EIGHTH and E STREEIS urghs | = Olswics 7575 blinded by the lights of an approach- ing machine and forced into a culvert. “There is one point that has not been brought out,” he sald. “We have made no mention of the fact that school busses, carrying from 50 to 70 children, utilize this road several times & day. Do you realize just how shock- ing it would have been had’ that ai tomobile demolished in Sunday's tragedy been one of the school busses?” The speakers asserted they intended no inference the mishap was in any way the fault of the bus driver, but were using the accident to illustrate the constant threat of tragedies as long as the road remains in its pres- ent narrow condition. They declared the road is not of a sufficient width to safely accommo- date the huge busses needed in trans- porting county residents to and from Washington. A resolution introduced by Stone- braker calling upon *he county com- missioners to enact an ordinance re- quiring that lights be used by bicycles after dark also was adopted. Stonebraker said that numerous complaints had been voiced by mo- torists against children riding up and down Old Georgetown road after dark without lights on their bicycles and that a number of accidents had been narrowly averted. Members of the committee to press the improvement of Old Georgetown road are B. W. Parker. chairman;| George P. Sacks, William Buckley, A. R. Townshend, Emory H. Bogley, Samuel E. Stonebraker, Adlai 8. Magee, G. Wady Imirie, Leslie B. Bell, Walter K. Bachrach, T. Earle Hamp- ton, J. Harry Weich and John A. Overholt. Church Group to Meet. ‘Women of St. Patrick’s Church have been invited to attend an “evening of recollection” meeting and dinner at 6 pm. Thursday at Retreat House, 4000 Harewood road northeast, ar-| ranged by Rev. Director John 8. Spence. wxke A—S CONTINUED BY POLICE: Man Found Unconscious in Union Station Succumbed to Frac. tured Skull. Homicide squad detectives and the coroner’s office today pursued their in. vestigation into the cause of the death of Edson Ellsworth Harrison, 36, who died in Gallinger Hospital yesterday 19 days after he was admitted suf- fering with a fractured skull. Police found Harrison unconscious in Union Station and had him re- moved to the hospital. He remained in a semi-conscious condition, doc- tors said, and was unable to tell them how he was injured or where he lived, — | AFRICA, LECTURE TOPIC Dr. E. V. Wilcox Speaks Dec. 18 at Vermont Avenue Church. Dr. E. V. Wilcox, world traveler, who has made two extended visits to Africa, will give an illustrated lecture on the “dark continent” at 8 pm. on December 16 in the recreation hall of the Vermont Avenue Christian Church. The lecture is sponsored by the Shakespeare Society of Washington to raise funds for erection of a pulpit in | the church in memory of the late Dr. | Earl Wilfley, pastor for many years |and a member of and actor in the Shakespeare Society. In his two visits to Africa Dr. Wil- cox crossed the continent from Cape Town to Cairo and from Tangiers to | Suez. 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