Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-09-24

personal Indebtedness. When Palen
made that last payment Of $4,000 he
got a receipt in full"
The witness presented to the commit
tee the receipt referred to, dated March
81, 1929, and signed wv. B.. Shearer."
AS read by the chairman, the receipt
acknowledged payment on that date
of S $500 'in full settlement of all Serv-
ices rendered. and "all understandings
had on my own CPalen'S) behalf Of the
Newport News Shipbuilding & Dry
dock Co." and stated that Shearer's
services ARE hereby discharged and
terminated"
The name of oscar Olson" identi-
fed as an employe in the New York
! Office of the Newport News Co., wa
brought into the record frequently, in
! connection with the payments made
to Shearer by that company. Several
of the checks for money which went
to Shearer were drawn In favor of
| Olson. The witness was questioned as
to why the transaction was handled
through Mr.. Olson and his reply was
that it was intended to give Shearer
his payments in cash. Senator Allen
| suggested it would be advisable for the
| committee to call Olson as a witness
and Chairman Shortridge agreed.
Quizzed on Secret Document"
Senator Allen quizzed Ferguson re-
| garding his knowledge Of Shearer's
claim in a letter to the shipbuilding
magnate that Shearer was In possess
sion of a secret British document of
amazing report" The Senator read
from a letter sent Ferguson by Shearer
in which it was indicated the former
knew about Shearer's possession Of the
document.
IT heard something about 1t from
Shearer in 1928. and possibly later in
Washington, when I saw him there"
Ferguson explained. L think he told
me he had some correspondence con-
corning this matter. I wasn't particu-
larry interested in whether he had such
a document or not"
But you did agree to finance Mr..
Shearer in his patriotic work, which
he said touched every member of Con-
gresS and involved widespread publicity
and educational work?" asked Senator
Allen. The witness nodded in assent
and stated that the company had put
up between $18, 900 and $4,000.
"And this money. this patriotic
work." Senator Allen, continued, "em-
braced not only his patriotic work in
this country, but the establishment of
the observatory at Geneva?"
Ferguson replied in the affirmative.
Then it really cost more to be
patriotic at home than abroad" Sena-
tor Allen commented, amid general
laughter.
Asked About Pamphlet.
Senator Allen asked Ferguson about
the now famous CLOAK of Benedict Ar
mold" pamphlet, which it has been tes-
titled the ship companies paid Shearer
$225 to suppress.
why did that pamphlet receive
widespread circulation after you had
paid him to have it destroyed" asked
Senator Allen. The witness remarked
that sometimes suppressing a thing has
the opposite effect.
IF Shearer's work at Geneva so dis
gusted you shipbuilders. so aroused your
horror, why did you continue to employ
him?" Senator Allen asked.
Il didn't do it," answered Ferguson,
Mr.. Palen did" Then you think
Mr.. Palen can tell us about it? He
won't pass it on to Mr.. Olson? This
process of passing down the response
bility mas to end somewhere, even If
we have to call the janitor."
Ferguson said he didn't see the
necessity of sending any one to Geneva
ton with his board. He said he didn't
/ remember of seeing any of Shearer's
| reports and wouldn't have attached
any significance to them at the time
because he didn't know Shearer was
representing his company.
Senator Robinson questioned the wit
mes about the merchant marine fund.-
from which the payments to Shearer
were made. Ferguson said he knew
practically nothing about the fund
and could not say when 1t was eStab-
lished or why. Senator Robinson re-
ferred to the comment by Ferguson
that at n time he had thought about
going to Geneva himself, and asked If
it was Ferguson's idea he might have
been an observer instead Of some n
else.
Wished He Had Gone Himself.
st wish I had gone" replied Fergu--
son amid laughter.
what was wrong about this shearer
business, anyway" asked Senator
mony S far given to show that you
should be ashamed of it?" The witness
did not reply audibly. j..
But evidently you were ashamed of
it." pursued Allen, land expected to be
ashamed of 1t or you would not have
gone about employing Shearer in the
clandestine way you did. What is your
reaction to that thought?"
my reaction is" FurguSon replied in
a low voice. that I wish I had gone
there myself"
Authority Lacking.
Chairman Shortridge gave notice yes
terday that numerous requests for a
general investigation into lobbying
activities would have to be passed over
because Of lack of authority by his COM
mittee. He said he would support the
resolution of Senator Caraway, Demo-
crat, Arkansas, for a general probe of
| lobbying activities, which is now before
the Senate.
At the session yesterday afternoon
Homer l.. Ferguson, president of the
Newport News company, said Frederick
P. Palen, vice president OF his corpora
ton, had represented the firm at the
New York meeting of shipbuilders which
hired Shearer. He revealed that COM
pany, books did not show the $4,000
which had been paid Shearer and that
the money had come from a merchant
marine" promotion fund.
Ferguson paused in his reply to QueS-
tons to state that the owners of his
corporation, the H.. E. Huntington
family, and the chairman of the board,
Henry M. Robinson of Los Angeles,
knew nothing about Shearer's employ
ment. Robinson, who is q friend of
President Hoover, has been chairman of
the Newport News corporation board of
directors since May, 1928.
Both the Bethlehem Shipbuilding
Corporation and the Newport News con-
Germ are now building American Navy
cruisers which were undertaken at the
time the Geneva conference started.
( Paid From "Petty Cash."
The committee learned yesterday from
S. w. Wakeman, vice president of the
Bethlehem Shipbuilding Corporation,
who hired Shearer for his firm, that
its share of the payments were made
from a petty cash. fund and was given
MI. Hunter. counsel Of the Council of
A~oor;ao~ Chiotnyx1Iore