Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-09-24
SHEARER PROPOSED
ATTENDING FARLEY
PaIen Tells Senate Probers
He First Sought Employ
ment to Do Publicity.
(Continued From First Page,)

Geneva. He pointed out that his COM
pany was spending about $4,000 a day
for cruiser construction n that 1t was
of great Importance for the company to
know the trend of the conference.
Senator Shortridge asked the witness
If he was interested in the result of the
conference.
Eventually" said Mr.. Palen, but I
was interested also in the progress or
trend of the conference"
He said that n proposals that might
come before the conference regarding
the cruiser program were of very great
interest to his business. He said that
he believed that the employment OF
Shearer to learn the trend of the con-
ference was justified.
LAS a citizen I was interested IN a
fair agreement at Geneva" said Mr..
Palen. LAS a Shipbuilder 1 was inter-
tested in any agreement"
Ferguson Ends Testimony.
Before Mr.. Palen took the stand MI.
Ferguson completed his testimony which
was begun yesterday afternoon. MI;
Ferguson denied that he personally nao
had anything to do with the employ
ment of Shearer and told the committee
that Mr.. Palen had been responsible
for the employment OF Shearer.
Senator Allen of Kansas questioning
Mr.. Ferguson declared that evidently
Ferguson's company was ashamed OF
the employment of Shearer TO go 10
Geneva.
evidently you expected to be ashamed
of it, or you would not have gone about
it the clandestine way you did" said
Senator Allen. He asked Mr.. Ferguson
what his reaction was to L tnougnt.
MY reaction is" replied Mr.. Fergu-
son, that 1 wish I had gone to &C.
neva myself"
Mr.. Ferguson conceded that Shearer,s
name does not appear on the DOCKS
of his and hat all payments
to him were made in cash from the mer-
chant marine fund. When it developed
that several of the checks Tor money
intended for Shearer were made out 10
Oscar Olsen, identified as an employe
of the New York Office, the m
decided to summon Olsen. PIalnly
nettled at what he termed this process
of passing the responsibility down the
line in connection with efforts to learn
the facts about Shearer's employment,
senator Allen remarked. 1T must end
somewhere, even if we have TO cali the
janitor of your company.
Met at Palen's House.
MI. Ferguson on taking the stand
testified that he had first met Shearer
at Palen's house in New York Novem-
: Der, 1926. At that meeting, lasting halt
an hour the discussion was general.
covering the merchant marine develop
ment and the siX-cruiser program. MI
Ferguson said that Shearer wanted en-
ployment to do publicity and G
tional work with reference to the mer-
chant marine. He said that Shearer
was not employed at that meeting. he
--;I Iakor NHr po1on nntprpH 1nf0 an
agreement to employ Shearer and to
nav S $500 as one-third of a sum to be
given Shearer by three shipbulldlng
You o. KID checks for money to be
paid Shearer?" asked Chairman Short
ridge of the committee.
1.-The first check I o. KID was dated
August 2, 1928" said MI. Ferguson. Mr.,
Ferguson testified that this check was
to cover a loan of $4,000 made to
Shearer by MI. Palen. The money had
already gone to Shearer, he said, when
he o. KID the voucher. The check,
like all other checks for money handed
to Shearer, was charged to the so-called
merchant marine fund of his company.
MIR. Palen loaned Shearer $4,000
said Mr.. Ferguson, "on Shearer's rep
resentation that he was broke, owed his
rent and so forth. Mr.. Palen had con-
idence in the integrity of Mr.. Shearer
at that time. He loaned the money. !
told him he could take the notes"
The witness said that there were three
notes of Mr.. Shearer, two of $500 each
payable to Palen n one OF $l,OOO pay
able to Mr.. Ferguson.
Mr.. Ferguson said that none OF the
company money had been loaned Shearer
prior to that time.
Money Went to Shearer.
Senator Shortridge questioned MI.
Ferguson about a number Of checks
made payable to Oscar Olson: This
money Mr.. Ferguson said, went to
Shearer. Olson. he said, was an m
ploye of the New York office OF the
WHY wasn't the money paid to
Shearer instead Of to Olson?" asked
Z Senator Shortridge.
II don't know" said Mr. Ferguson.
"Mr. Palen can tell"
came to him in the Fall of 1923 fer en-
ployment.
HE wanted to come to Washington
to help in the 15-cruiSer fight, then
coming up in Congress-" said Mr.. Fer
guson. II told him emphatically to stay
away from Washington"
Shearer, Mr.. Ferguson testified. then
saw Palen and the latter employed him.
I1c od1d I1ldI 0.lColC IAASN W CIV ga
ployment with Palen because he was
down and out and needed employment"
Shearer wanted 1000 a month and
Palen told him that $500 a month was
all that he could pay, the witness testi-
fed. =,
dollars a month";" said Mr. Ferguson.
IT told Palen to close out with Shearer.
I told him he had gotten into this mess
and that he had to get out OF 1t. At
$500 a month 1t meant Snearer was to
get $4,000 in a year. I told Palen to
pay him the remaining $4,000 and get
rid of Shearer: that I did not want him
on the pay roll" The witness added
that Shearer lis very easy to employ"
The check for $500 Tas drawn March
81. 1929. to oscar Olson.
THAT was the last check so far as
I know drawn to pay Shearer," said
Mr.. Ferguson. II cheerfully approved
the voucher. I did not want to be
responsible for his further employment
by u company or for what he might
do within the next six months"
Mr.. Ferguson testified that his COM
pany alone was in on the payment OF
this $4,000 to Shearer and that the
other two companies involved in the
investigation had had no share in 1t.
This Is Just an added luxury for
you then," suggested Senator Allen.
YES" said Mr.. Ferguson.
He testified that this $4,000 was in
cluded in the total of $18,0 900 which
his company had paid to Shearer.
The committee learned from Mr.,
Ferguson that his company drew no
checks directly in favor of Shearer and
that the latter's name does not appear
on any of the company's books, ex-
cept in correspondence.
With regard to the loan" of $4,000
by the Newport News firm to Shearer in
1928 Ferguson testified that the notes