Evening star., 1924-05-28
SENATE PROBE GOES
INTO MISSING FILES
Daugherty Witness Quizzed About
Supposed Loss Of Mexican
Plot Letter.
ALIEN PROPERTY SALE AIRED
Means to Testify at Session
Tomorrow.

committee inquired today into reports
Of missing Department of Justice
files on Mexican revolutionary activ-
tty. sought information about a De-
partment of Justice investigation OF
another committee witness and heard
some additional data about allen prop.
erty and antitrust cases.
w. w. Grimes, special attorney in
the department, was questioned by
Senator Wheeler about the supposed
ary ~, 1924, said to have been sent by
Gus Jones. Texas agent of the de-
partment, to w. j. Burns, it's former
chlef Investigator. which touched upon
a Mexican revolution plot. Grimes also
was asked why an agent named Need
The witness said he did not know
Needham was committee witness.
me antitrust proceedings against
the United Gas Improvement Company
was dealt with in letters exchanged
by Mr Daugherty with Francis s
Hutchins. and others, put into the
committee record.
Quixxed ON Alien Property.
Isadore J. Kresel a New York law
yer. then was called to the stand and
told of being in government service
during the war and OF ascertaining
for the allen property custodian that
Germans in 1917 owned 40 per cent
of the stock of the American Metal
Company This corporation, dealing
metals of all types. was organized by
German capital. he said. with some
English and American aid.
In 1917 there were 10000 shares
OF the metal company's stock out
standing, the corporation controlling
about s13.O00.000 of assets and 1854
shares were still in German hands
kresel went on. c. NJ. Loeb, Julian
Beatty and other Americans owned
about $4,000 shares. while 10000
shares were in English hands
Il could not find that more than
this 49 per cent of the stock was
German owned" Kresel went on
after going through the books ex-
amining officers and tracing dividend
checks"
Did you ever at any time hear of
swiss claimants to ownership of this
stock?" asked Senator Wheeler
Swiss Claimed Stock.
Il never heard at any time or saw
any traces of Swiss ownership in the
corporation until May, 1922" Kresel
said. Then / saw a newspaper ar
ticle that Swiss corporation had
of stock which the Gsrmns owned
A. Mitchell Palmer was alien
custodian in 1917, the witness ex-
planned, and Thomas w. Miller In
1922.
Kresel said the custodian in 1915
took the German stock and named
five directors of the Metals Company
to represent the holding. The stock
then was sold for $140 a share. he
said, but the sale was set aside on
the ground the price was inadequate
1t was again offered for sale, and
this time the price was 1856 a share
the custodian receiving about $3.50
600 for the stock. Counting profits
from dividends in the interim. he
said. the custodian got s6,400.o00.
showed up later" Chairman Brook
hart put In, got this s6,400,000?"
so 1 understand" Kresel said.
Now. under the law, any Swiss
claimants who had rights could have
come to court and prevented the
''They could" Kresel replied.
WAS any attempt made at the time
to stop the sale?"
There was none"
Owned Swiss Firm.
The witness said the German own
ers of the metals stock owned a Swiss
subsidiary named THE Swiss Society
for Metal Work" The Metal Geseu.
corporation.
The claim for the return of the
s6.400,0o0 was made by corporation
with French name. Kresel went on
But / think that it was the same
German-owned subsidiary.
Paul Rowland. attorney for Harry
M, Daugherty, intervened to ask the
committee. The reply was in the
negative. Howland then inQui0d
who was sitting behind Senator
Wheeler. and the senator replied tina,
it was ]. Weston Allen, former attor-
now is counsel for Frank A. Van
derlip's Citizens Research Bureau
Senator Moses, Republican, New
Hampshire, said he wanted to tes-
tify that Allen was "a man of char
acter and ability, Notwithstanding his
present connection Allen merely
smiled. and the incident blew over.
Attorney Testines.
Bradley w. Palmer. a Boston at
torney. testified that he assisted tht
alien property custodian in 1917 and
1918, and that Henry Bruere and
Julian Beatty went to Europe in 1915
as American stockholders of the
metals company, and in Switzerland
arranged with the German owners fol
sale Of their stock. The transac.
ton was futile" in law. Palmer said
When was the first time you heard
this stock was owned by Swiss?'
asked Senator Wheeler.
"A few weeks ago." Palmer re.
turned.
Francis P. Garvan, alien property
custodian from 1919 to 1921, also told
the committee there was no question
as to the German ownership Of the
49 per cent of stock interest in the
metals company, and there was NJ
resistance to it's seizure or claim oi
neutral ownership. He was never con.
suited, he said about the transaction
A. r. Johnson, special assistant
attorney general assigned to the
alien property Office, testified that he
had reported the metals company
transaction to Guy d. Goff. then Mr.
Daugherty's assistant. The commit.
tee recessed until tomorrow, excus.
ing Johnson until Saturday. At to-
morrow's session CASTOR B. Means
will furnish his testimony, SO he car
go to New York for trial on the fed
eral charge pending against him.