Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1920-08-18
STATE employees
AIDED PROMOTERS
WITT, FORMER SECRETARY TO
GOVERNOR, BOOSTED
PACKING STOCKS.
RECEIVED LARGE SUM
FOR PUBLICITY WORK
Former State Bank Commissioner
Also Boosted Notes Of Company
Affairs Of Concern Now In Hands
OF Receiver, to Be Aired In Court
Thursday.

suASOodys
Lies Moines. Aug. 1s.-Charles r.
Witt, when he was secretary to Gov.
ernor w. L. Harding, accepted from
the Associated Finance Company a
contract which agreed to pay him
per cent commission from the
sale Of stock in the Associated Pack
ing Company.
Ihe payment was to be for moral
support and publicity, beneficial to
the organization of the corporation.
" The agreement was entered into
oetWeen Mr.. Witt and Woolf Teitel.
one or the promoters OF the packing
company and an official OF tho AS
ciated Finance Company.
The agreement was in the form of
a letter. signed by both Teitel and
Witt. dated Dec. 90, 1918.
wit at the time was secretarys to
Governor Harding.
The letter says that the CORPORA.
ton is to be a $1,000, 900 corporation.
Later the capitalization was increas-
ed to 100000.
The per cent commission on a
capitalization OF this latter size
would amount to $4,000. On the
former 1t would be $4,000. witt
drew $4,000 before the contract was
Cancelled.
The letter further states that Mr..
Witt was to receive one-third OF the
profits from the construction OF the
packing plant In case the other par
ties to the agreement, were to he in
terested in the construction OF that
plant.
Shortly after entering into this
contract Mr.. Witt addressed q letter
to Garry Haynes. an associate OF
Mr.. TeiteIs in, the Associated FL
nance Corporation. In which he re-
ferred to Mr.. Haynes as sin the
language OF the turf and gaming
table as a square guy"
H A copy Of the contract was placed
before the Polk county grand Jury
when it investigated the Associated
Packing Company, and it is under
stood this copy Is now held by At
torney General Havner or his as
sociates in the case.
Rumors OF the existence OF this
contract have been many during the
last fortnight. altho mention OF it
has FREQUENTLY been made previous
to that time.
s 4 { l. F.
Mr.. Witt resigned as secretary to
Governor Harding Feb. %.
The Associated Packing Company
went into the hands OF a receiver
Feb. ~. At the same time a receiver
John A. Cavanagh, was named for
the Associated Finance Company.
a receiver forf the ,Des Moines
Union Stock Yards Company was
ordered Marsh 16.
The contract for the erection OF
packing plant for the Associated
Packing Company was held by the
j. A. Priestley Engineering and
Construction Company.
All Of these organizations occupied
rooms adjoining each other, on the
third floor OF the Citizens National
bank building.
A hearing on the ,receivership for
the Associated Packing Company
was scheduled at the time Of Its
ordering for March Is.
Wlren the case was called Attorney
General n. NJ. Hayner, who had
charge Of the prosecution OF the case
announced that the state was pre-
pared to go ahead with the hearing.
After show OF opposition the d.
rectors of the company met in Judge
Lawrence DeGraff's chambers, and
after discussion, voted to agree to
the receivership without a hearing.
It was reported that the attorney
general at that time was preparing
to bring before the court. and thus
drag into publicity the contracts and
agreements which were found by the
receiver when he took charge OF the
books and affairs. He was
prevented from SO doing by the action
OF the directors. 4
A hearing on the petition Of the
new board OF directors of the asso-
citation for the discharge Of John "A.
as receiver is scheduled
to be heard here Thursday morning
before Judge Edward M. Mccall, OF
Nevada.
Messenger Also Active.
Some Of the correspondence in the
hands Of the state shows that the
former superintendent Of banking,
George Messenger. wrote letters to
bankers, these letters dealing with
packing house notes, such as the
Midland of Sioux City and the AS
ISOLATED Of Des Moines.
Other letters show that one of the
deputies in the office OF Messenger
at that time wrote bankers over the
state, saying: II know that this paper
will meet with the approval Of the
banking superintendent, and Mr..
Blank will send you some." The paper
in question being notes taken for the
sale Of packing house stock, and
which banks were eager, the records
show, to take upon Recommendation
i,
CC