Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-09-25


limitation of cruisers and parity. Hun
ter denied that Shearer, then or at any
other time, had made representations to
him of having brought about failure Of
the Geneva conference.
Hunter said that Shearer came to
him later. sometime prior to December
II, 1927, and proposed that some ar
rangement be made with the shipbuild-
ers whereby Shearer could continue to
represent them. The attorney said he
told Shearer he had no authority to
make such an arrangement. Hunter
said that when he paid Shearer the
check for $3,33333 on December II.
1927. it closed the Geneva contract and
such was the fact. Hunter stated that
he had nothing to do with the making
of the contract with Shearer and had
merely agreed as "a matter of con-
veniece" to handle the payments to
Shearer.
Senator Robinson took up the ques-
tioning and sought an explanation from
Hunter as to why he agreed TO handle
the financial arrangements with Shear
er and to receive the communications
from him and distribute them to the
ship companies. When Hunter ex-
planned that he undertook this service
without compensation as personal
favor for his friends in the shipbuilding
business. Senator Robinson demanded
to know why the companies did not use
their own attorneys. Hunter said he
did not know why the companies had
asked him to do 1t and insisted that
he undertook the service as a personal
favor and not in his professional ca.
na Cifv counsel nf the Council nj
American Shipbuilders.
These companies all have very
prominent lawyers for counsel" Sena-
tor Robinson said. Didn't 1t occur TO
you as exceptional that they came to
YOU instead of using their own lawyers"
Hunter said he saw nothing exceptional
in it.
Senator Robinson called attention to
the fact that one of the checks sent
to Hunter by the ship companies for
Shearer's reimbursement was made out
to the lawyer as counsel for the Council
of American Shipbuilders and that a
memorandum attached to another check
bore a similar notation. Hunter re-
piled that he supposed that designa-
ton was used because he was custom
arily identified with that capacity but
contended that the transaction itself
had nothing to do with the shipbuild-
erS' council.
EXPLAINS Conference.
Questioned by Senator Robinson as
to how the conference which resulted
in Shearer's employment to go to
Geneva came about, Hunter explained
that Mr.. Palen had told him he was
considering sending Shearer to Geneva
and had asked permission to hold
conference in Hunters Office with
Messrs. Bardo and Wakeman to discuss
the matter. At Mr.. Palens suggestion,
the witness said, he sent a letter to
the three shipbuilders, inviting them to
meet in his Office in New York.
Senator Robinson read from this let |
ter. dated March Is, 1927, and stressed
the point that in it Hunter urged on
the shipbuilders the Importance Of at
tending the meeting and that Hunter
had signed the letter with the word
counsel" after his name.
why did you sign counsel If you
didn't represent anybody" asked the
Senator. Hunter explained that his
secretary probably put it on the letter
from force of habit, and that he must
have signed 1t without noticing the
word there.
Letter Placed on Records.
A letter in which Shearer said he
had given the Navy a secret British
document at critical stage in the
Senate debate last Winter over the Is
cruiser bill was placed yesterday in the
record of the committee.
The communication was addressed to
President Ferguson of the Newport
News Shipbuilding Co.. who de-
MED to the committee that ne had any
agreement with Shearer STIMULATING
that he should work at Washington in
behalf of the cruiser measure. Senator
Allen, Republican, Kansas. read part
of the letter at the committee inquiry
into activities of Shearer for the ship
builders at the unsuccessful Geneva
naval conference of 1927. Allen re-
vealed later that he had the so-called
secret British document, but that he
was not ready to use 1t.
Frederick p. Palen, vice president OF
the Newport News ship concern, told
the committee yesterday he was more
responsible than any one else" for
sending Shearer to Geneva at a price
of $4,000. He also related how
Shearer upon his return received $4,000
more from him In payments not re-
corded in the company's books. He IN
sisted he had a right to send Shearer
to Geneva to report on the trend" OF
the conference and to interest other
shipbuilders in, sharing the 900 cost.
He excused Shearer for not reporting
to him because he said there was Moth
ing to report that was not in the news
papers.
Denies Any Coercion.
Senator Shortridge sought to obtain
Shearer had threate ned to make public
facts which might be embarrassing to
the shipbuilding company and had been
paid money to keep quiet.
Mr.. Palen denied fatty that any such
threats had been made. If there had
been, he said, Shearer would have got
ten no money. The first loan, he said.
was made to Shearer by himself as a
personal matter, Sheared giving him his
him he was broke" This first loan
was for $500. Within a month he
loaned him another $500 as personal
matter and then a short time after
ward he loaned him thousand dol
lars of the company'S money, after
Mr.. Ferguson had been appealed to by
Shearer and had told Palen "to use his
own Judgment" Subsequently Palen
paid himself the thousand dollars Of
his own money out OF the company
funds, which he had loaned Shearer.
Members of the committee expressed
their establishment at the ease with
which Shearer apparently was able to
extract money in large sums from the
shipbuilding company. They brought
out the fact that in every instance
Shearer had been paid in cash and that
there was no record on the books of the
company that Shearer had ever been
paid any money at all.
In reply to repeated questions, Mr..
lat
the payments were made in cash ito
cover up" SO that there. would be no
record Of payments to SFiearer.
as ~-'--- L-tS 49, IS----.''-- 49,