Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-01-06
Inquiry Provokes Discussion.

been secretary of the southern buildlns
Company. and that started the fireworks,
which ended In Mr.. Douglas making
charges against the committee. He termed
the subject purely collateral one.
You were never secretary of the COM
pany in my recollection" said Mr.. Doug
las
THE question was not as to whether
or not you had qualified as secretary.
said Representative Johnson The
question was to whether or not
your name appears at Alexandria OF
record there as secretary of the incor-
poration."
Mr.. Redfield continued his queries.
DO you know who the officers and di-
rectors Of the Southern Building Cor
poration were under this first char
ter?"
MI. Douglas Interrupts.
Mr.. Douglas leaned to his feet and
shouted: "One moment! The Issue might
as well be made here and now. On De-
half Of these insurance companies, the
purchasers Of this building. | want 10
make clear the position that we take
here on behalf of the two fire insurance
cornpanies present owners of this Duho-
ing Our position is that the widest sort
Of latitude should be permitted In lnquiI
ing into any features OF this matter lndt
might throw DEHl upOH tiiC piNSoHs
of the building and grounds, and beyond
that is deiving and probing into the PR.
vate affairs of other corporations not a1
all interested In this inquiry.
I'VE are going to show. ana going 10
produce any papers that this committee
may want that will throw distinct and
positive light upon any phase or TINS
matter. For instance. we Will snow eA-
actly and precisely what this land cost,
the original purchasers Of II and VINO
sold it to the Southern Building Cor
poration: We are going to show TINS
committee in the most comprehensive
fashion, that this land cost Sls 1907,
as Mr. Baker has said. on the hrst OF
second day of January, l9"9' agsresa'"'s
$4,000.
I've are going to show you that the
syndicate that bought this property 1or
the Southern Building Corporation mace
an unsuccessful attempt, then suo ,Ss
ouentIv sold 1t to the Southern Build
ing Corporation for $4,000. at $23 or
se5 a foot think 1T was SIS foot
about a year after the original acquisl-
lion of it by them.
Further Developments Promised.
II will show, Mr.. Chairman, and l
am very anxious to have yourselr ana
Mr.. Redfield hear this statement, that
this property was sold by the syndicate
TO the Southern Building Corporation
some time in the year 1909. at. think,
SIS foot. aggregating $4,000 for the
land.
We will show you further that the
Southern Building Corporation, as IL Is
organized. proceeded to erect this puliu-
ing on this land, costing $52S,OOO for the
land between two and three years ago
about three years ago-and then we VIII
put in evidence all the data, and we Will
throw wide open the books Of the South.
q q f0 the cost or
this building.
Why do you object to our questioning
upon these matters if you are going to
do all that" asked Mr.. Redf1eld.
IF you are going into each and every
side issue and collateral matters that
could be anticipated here" answered Mr.
Douglas, "this committee could be In ses-
sion for twelve years If you lnteno 10
drag into the affairs or the investigator
the private affairs Of every other corpora
ton and every individual and not allow
them any opportunity to defend them
selves"
Chairman RAdHeld's Reply.
Mr.. Redfeld said in reply: 1.-The resolu-
ton directs this committee to investigate
the conduct. management. history. rec
ords and affairs Of the Commercial Fire
Insurance Company. the First National
and the ONCE Of the superintendent OF
insurance; futile. Wightman & Dudley.
together with their associates, representa-
tives and agents. The purpose OF this
inquiry this morning IL to Investigate the
history Of some of their associates. rep
resentattves and agents, leading up to
the transaction OF the Increase In value
Of the Southern building within q few
days after its purchase for something
over 800 COO"
Now, Mr. Chairman" said Mr.. Doug
las. that Is the crux Of this whole mat
ter. the scope Of this inquiry. as Is stated
by Mr.. Reddeld. but. with all due re-
spect to him. I submit that he has mis-
interpreted the term together with the
associates. representatives and agents
that is. the associates. Representatives
and agents of the fire insurance COM
panies and futile. Wightman and Dud-
ley.
I'm no sense-and I now throw down
the challenge-in no sense are the South
ern Building Corporation and the Rich
mond Realty Corporation. which have
bought some Of these bonds. their agents.
representatives or associates now or at
any time in the past. and to go into the
private affairs of corporations buying
those securities. now holding and owning
those securities. is to lay bare upon this
table the private affairs of corporations.
and. ] submit with all difference to this
committee. is beyond its limits. and be-
Nond its scope and beyond its right.
Defines Limits Of Inquiry.
Any question that can be asked that
viii throw light upon the question.
either of the cost of the land or cost
of the building or the present value of
them. taken singly or collectively. Is
well within the limits of this inquiry.
and perfectly germane to the subject,
but beyond that it is dragging into the
affairs of this investigation the private
affairs of other people. and l think
their rights ought to be respected and
will be respected by this committee
Mr.. Douglas" interposed Representa-
tive Redfeld. you appear as one of the
ton. in what is alleged to be its original
charter. Mr.. Carusi is alleged to have
been one of the special committee acting
counsel of the Commercial Fire Insur-
anee Company in the purchase Of this
building from the Southern Building Cor
poration. of which you were a director"
This committee desires to show In de-
tail the whole transaction in which you
and Mt. Carusi Were associated, you on
behalf of the Commercial Fire Insurance
Company now. he as on their behalf now
he in the purchase of this building from
tue corporation of which you were a di-
recto then and you yourself were a di-
Tecto. liz another corporation which pur-
chased the building from parties with
whom il is important to know who was
associated.
We intend 10 know-or ought to know.
in DS iudgment-the whole transaction
froP. III beginning up, who are the par
ties interested, what profits have been
made, whether certain stockholders were
forced TO sell at p cents on the dollar:
whether others. by knowing the inside
r.ll TAr n