The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-11-01

! heiatiNe 10 the design or planes.
do not care to write what is being done
but VIII discuss II with you when / get
home and you will see that we have
already gone away down the pike in
this matter. Everything is lining up
now in pretty good SHAPE.
yours very truly.
"E. A."
Later these kilograms were sent:
Telegram Deeds to Talbot, July 3,
1917:
July 3. 1917.
Mr.. n. &. Talbot. Dayton, Ohio.
Gen. Squler went direct to Detroit
VIII probably spend Fourth at his old
homo In Michigan May be In Dayton
Thursday or Friday, arriving there
from Detroit or from Champaign. ILL.,
Harold. Kettering and Wright can take
care of him. He will be interested in
the Dayton Wright factory and labora-
tory, Orvills Wright laboratory. and
especially Mr.. Kettering's views on sci
entific subjects In general he Is
highly technical.
| 'E A. DEEDS
Telegram Kettering to Deeds. August
4. 1917:
Dayton Ohio. August 4. 1917.
'E. A. Deeds. Room, 527 ANnsoy Build
ing, Washington, ID. C.
! We believe all confidential kilograms
\ should be sent to Mr.. ". II. Talbot, Sir.
| City National Bank Building, or George
d. Smith, instead of the Dayton Wright
Airplane Company.
/ &C, f. KBrTERING."
! Telegram Deeds to Kettering, August
! 4. 1917:
August g. 1917.
"Mr. C. J. KetteTinD, City National
/ Bank Budding, Dayton, Ohio.
'HNrRaftar al tial Gaia
will be sent to II. e. Talbot. sr.. in
stead OF to the Dayton Wright Air
plane Company.
! "E A. DEEDS
Telegram Deeds to Talbot September
l6, 1917:
''old Point, Va. Sept IS. 1917.
H. e. Talbot, Dayton, Ohio.
For your personal information as
coming from your local attorney. Judge
Advocate General has ruled 1t legal for
Government to select one. contractor
one and the two third. as appraisers
/ OF market value OF plant at expiration
or contract II you care TO raise the
question the above will be found to be
the fnal ruling.
"E A. DEEDS"
Highly Improper Conduct"
Mr.. Hughes says:
when this last telegram which puts
IN strong light the relations of the
parties. was sent Deeds was an officer
IN the army. This highly improper con-
duct in holding communication in this
manner with his former business asso-
ciate In transaction pending between
the Dayton Wright Company and the
Government department in Col. Deedss
charge demands the attention OF the
military authorities
But evidence OF favortism influence
or confidential communications Of this
sort however otherwise reprehensible,
20 not make out criminal liability un-
der the statutes above quoted unless II
appears that the representative of the
Government has a pecunlarJ interest in
the Government contract or order, or Is
an on1cer or stakeholder of or has n
pecuniary interest in CORPORATION.
nrm or association which Is a party to
the Government contract or order. And
the question Is whether Col Deeds had
such an interest. His statement is that
ne had no such Interest, but on the con-
trary had given UP large salaries to
devote himself to the Government SER
vice"
Deeds Gave stock to Wife.
Deeds told Secretary OF War Raker
and the Aircraft Production Board in /!
a letter dated August 2s, 1917. that he
had made q bona fide transfer OF all I
his holdings in the United Motors Com |
pany of New York the Dayton En-
cheering Laboratories Company OF Day-
ton. Ohio. and the Domestic Building
Company of Dayton. OF Col. Deeds's !
1900 shares in the United Motors !
Company Mr.. Hughes finds that the !
only transfer made by him OF any OF
his shares in that company was by gift
TO HE WIFE This took place on Octo-
Der II, 1917. !
Deeds had previously transferred 10 !
kettertns thirty-eight shares of DeIco
preferred Mr.. Hughes says there is no
evidence that Col Deeds acted for the
Government in transactions with either
the Delco or United Motors companies.
Says Mr. Hughes
His statement TO the Aircraft Pro-
duction Board on August IS. 1917. that
he had made bona fide transfer Of all
his stock in the United Motors Corpora
ton, when the stock had not in fact
been transferred and at most he con-
templated gift of the stock TO his
wife, was neither candid nor truthful
and is certainly not 10 he regarded as II
full and complete disclosure
But in the absence OF proof OF
inducement or recommended
officer or agent Of the Government in
transactions with the United Motors
Corporation or the Delco Company.
there are no facts bringing the case
within the statutory prohibition"
started with $1,000 Cash.
The report deals at great length with
the Dayton Wright Airplane COMPANY
II was financed by a syndicate com
posed of Referring and the Messrs. Tall
bolt, the Dayton Wright Airplane Com
pany and the Dayton Metal Products
Company, There was n total of checks
handled OF $4,000 although the en-
tire transaction was accomplished with
$ $500 in cash. The result was that
the Dayton Metal Products Company
acquired all the stock o: the Dayton
Wright Company. Col. Deeds had
originally held one-fourth of the stock
Of the Metal Products Company. but
II to his former associates.
who gave him unsecured promissory ,
notes to bear interest at Al per cent.
These notes were placed in the hands Of
George B. Smith. n confidential agent
Of Deeds and Kettering.
The report says the Wilbur Wright a.,
Flying Field was located largely through .
the activity OF Deeds. and that the Gov
prnment got twice as many acres as il
needed. Deeds, who was then Il civilian.
sent n telegram on April 30. 1917, to
real estate man, Ezra y. Kuhns, SAYING I
options should be rushed in the vicinity !
Of Fairfield, raising the price IL neces- !
sary." I
Mr., Hughes And that 1.-THE Partially