Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-09-25
SHEARER REVEALED
AS PROPAGAND|ST
Letter to Attorney Acting for
Ship Concerns DiscIoses
Activities at Geneva.
CONTINUED From First Page3

issued orders to all correspondents to
play up naval situation.
1T consider best move TO pound on
naval bases to Offset the British thesis
on cruiser situation.
Engineering London. printing my
article on 'Imperialistic for Peace
w. B. sHEARER."
: A letter of June 2. 1927, from Shear
er to Hunter was as follows:
Dear Mr.. Hunter:
New York Times was cabled story
Of 1000 words last night compiled from
inclosed article. "A Merchant Marine
Sent out: 'Imperialistic for Peace
$50 copies; Facing Geneva $50 copies;
"A Merchant Marine $50 copies being
posted.
Sincerely,
wv. B. sHEARER."
troduced to the committee were copies
of the statements entitled Facing
Geneva" and "A Merchant Marine, "
both crediting authorship to Shearer.
Senator Robinson asked Mr.. Hunter.
"Why was Shearer reporting to your"
1T don't know" said Hunter.
docs 1t occure to you that 1t was
curious he should do So" persisted SEN
ator Robinson, "in view of the fact that
you had not agreed to receive his re-
ports"
Mr.. Hunter said that he was in the
position of receiving and paying money
to Shearer and that he considered 1t
quite natural that he should send me
reports"
Senator Robinson asked the witness
II he had met with representative OF
the shipbuilding companies and talked
over the events that had occurred at
the time of Shearer's employment. Mr..
Hunter said that he had.
Did you agree to come here and re-
port on those events at the same time
and in the same Way?" demanded Sen
ator Robinson.
Mr.. Hunter said no, and added that
he was not party to the contract
made with Shearer.
Henry G. Hunter, attorney for the
American Council of Shipbuilders, with
Offices in New York. who acted as the
paymaster for the three shipbuilding
companies which hired Shearer to do
publicity work in connection with the
merchant marine and to 60 to the
Geneva conference in 1927, was the
first witness before the committee to-
day
Mr.. Hunter testified that the first
time ne had ever seen Shearer or heard
of him Shearer called on him "of his
own initiative" on December l, 1926.
Mr.. Hunter testified that Shearer had
told him he was most anxious to under
take a campaign of publicity on behalf
of the American merchant marine; that
he proposed to deliver series of adj
dresses and to prepare articles for news
papers and periodicals on the merchant
marine Mr.. Hunter said further that
Shearer had represented himself as a
member of the staff of the New York
Commercial, newspaper.
No arrangement was entered into at
that meeting, Mr.. Hunter said. He was
unable to make any commitments, he
told Shearer, who came back to see him
q day or two later. Mr.. Hunter said
he had never called Shearer's proposal
to the attention of the American Coun-
Gil of Shipbuilders.
"A few days afterward, prior to De-
Cember II, Mr.. Palen vice president Of
the Newport News Shipbuilding g. Dry
Dock Corporation, stated to me-" said
Mr.. Shearer to go to Washington to
work with the Shipping Board In prepa-
ration of plans to benefit the merchant
marine"
Mr.. Palen, Mr.. Hunter said, had
told him that his company and two
other companies, the New York Ship
building and the Bethlehem Shipbuild-
ing Co., had agreed to pay Shearer
$500 for this work.
THE only request / received from
Mr.. Palen, said the witness, was to
receive this money from the three COM
panies and to pay it to Shearer. ]
told him would do So
Paid in Three InstalIments.
Mr.. Hunter said that he had paid
iY1
ly installments of $4,000 each.
Mr.. Hunter said he drew check on
his own account in the Corn Exchange
Bank of New York and Endorsed the
check over to Shearer He said he sent
his bookkeeper with Mr.. Shearer to the
bank to identify him so that he could
get the money.
The next payment made to Shearer
was on January 81, 1927. Mr.. Hunter
drew his personal check and sent it to
Shearer in Washington. The third pay
nent was made in the same way
Those three checks covered the en-
ployment of Shearer to do publicity
work in connection with the merchant
marine, the witness testified.
Mr.. Hunter also acted as the go
between for the three shipbuilding COM
panies and Shearer in connection with
Shearer's employment to represent those
Mr.. Hunter testified that he made the
first payment to Shearer on March Is,
1927, under the agreement that Shearer
should have $4,000 for his services
at Geneva. He said that he drew
his own check on the Corn Exchange
Bank for $500 and with it purchased
q letter Of credit made out to Shearer,
which he handed to Shearer. The
transaction, he said, was entered on his
IanA ~
to purchase letter of credit as Shearer
was sailing the next day for Europe.
The next payment was for $500, and
Mr.. Hunter said that he had drawn his
own check, purchased draft payable
to Shearer and forwarded it to Shearer
at Geneva. A third payment was made
on December 10. 1927, when he drew
his check for $6,666.66. Mr.. Hunter
said that this sum was deposited to the
credit of Mrs. Shearer in the Empire
Trust Co. in New York at Mr.. Shearer's
request The final payment for the
Geneva work, he said, was made on
December II, 1927, when he drew his
check for S3,33333 and handed 1t to
Shearer personally.
Paid Expenses for Book.
The witness told the committee that
he had paid Shearer 1925 also to cover
Shearer expense III the preparation Oh
a book entitled The Cloak of Benedict
Arnold" Mr.. Hunter said that at a
conference attended by Mr.. Bardo.
Mr.. Palen and H. G. Smith, vice
president of the Bethlehem Shipbuilding
Corporation, in his office, Shearer had
agreed not to publish the book If he
we're paid for the preparation of the
book. Mr.. Hunter said that the ship
builders had decided 1t was inadvisahle
to have such book distributed.
Mr.. Hunter told the committee that
he had taken no receipts from Shearer
for the payment made to him; that