Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-09-23
Continued From First Page)

| marine program as laid down and APP
proved by the members Of your group.
| Considering the extra work assigned
| me and the expense involved. I believe
, a part of my bonus should be paid me
| March S, 1928. Also I feel that the
| time has arrived for me to come out
In the open, as suggested by Mr.. Palen
and Mr.. Wilder. in the interests Of ali
| who are seriously interested in the
! shipbuilding industry ind adequate sea
| power.
Very truly yours,
(Signed) W. B. SHEARER.
At another point in the hearing Mr..
Wakeman said:
This man." referring to shearer,
was hired to do certain work. When
| his reports showed something else they
were disgusting. / should have done
something, but didn't. thought maybe
we would get something when he came
back. I hated to think had been
quite SO much Of flop In his en-
ployment."
The committee concluded its hearing
Of Mr.. Wakeman at noon. Homer l..
Ferguson. president and general man
ager of the Newport News Shipbuilding
d Dry Dock Corporation. was slated to
appear before the committee when 1t
resumed its sitting at 2 O'Clock.
Mr.. Wakeman told the committee he
was vice president of the Bethlehem
Shipbuilding Corporation and was In
charge OF the East Coast plant at
Quincy, Boston, and at Baltimore. He
said that he had full charge of all the
activities relating to these plants and
OF sales Offices in Boston and Baltimore
He was appointed vice president No
vemb,r /, 1925. He said that he had
power to make contracts of any kind
and does make them.
Senator Shortridge, chairman of the
committee, in series of questions,
brought out the fact that Mr.. Wake
man knew Of the coming Geneva Con-
ference on Limitation Of Naval Arma-
ment
Did you talk to your associates about
the conference" asked Senator Short
ridge.
NO"
The witness said that he could not
| recall that he hadsdiscusSed it with any
one Of his people or with his counsel.
Geneva Question Discussed.
The witness told the committee that
he had had a meeting with Mr.. Bardo.
president of the New York Shipbuilding
Corporation; Mr.. Palen, vice president
Of the Newport News Shipbuilding d.
Drydock Corporation, and Mr.. Hunter,
counsel for the shipbuilding companies
York. He said that the meeting was
held In Hunters ONCE and at that
meeting discussed the question of send
! ing William B. Shearer to the Geneva
conference for the purpose OF reporting
the events that happened there.
Was Mr.. Shearer there?" asked Sen
ator Shortridge.
Yes, but outside in another office"
answered the witness.
Who initiated this meeting?" asked
| Senator Shortridge.
Il think Mr.. Hunter called the meet
ing" was the reply.
LAS to who initiated it am not clear.
think 1t was discussed informally and
then letter was sent out by MIR. Hun
ter to Mr. Bardo, Mr.. Palen and my
self"
The letter written by Mr.. Hunter was
submitted 1t stated that Mr.. Palen
tend a meeting on March II, 1927. and
that it was important that you attend
this conference"
Mr. Wakeman testified that he had
met Shearer in his ONCE In New York
prior to this March, 1927, meeting. He
said that his first meeting with Shearer
was the last of November. 1925. He
said that Mr.. Palen had suggested that
he see Shearer. az.
Impressed With Shearer.
"Shearer wanted to 60 to Washington
to help out in connection with n1er-
chant marine affairs then being con-
sidered here said Mr.. Wakeman. Il
was impressed with Shearer's knowl-
edge and thought he had ability to do
what he had to do-write articles for
the press and deliver addresses. He was
anxious to do this work for us:
For compensation" asked Senator
Shortridge.
Yes"
The witness said that his next meet
ing in this connection was in Decem-
Der. 1926. In Hunters office, with
Bardo. Palen, Hunter and himself pres
ent. 1t was agreed at that time, he said,
to employ Shearer to go to Washington
to supplement the work OF the Shipping
Board looking to the development OF
the merchant marine.
I'VE three agreed to pay $4,000 each
$500 In all for this work." said Mr.,
Wakeman. He said that he drew the
cash and sent it sto Hunter to pay
Shearer and he presumed the other
companies did likewise.
Mr.. Wakeman's next meeting with
Shearer was on March II, 1927. On
that date a contract was entered into
with Shearer to attend the Geneva
conference. i
Just what was that contract" asked
Senator Shortridge. Was it in writ
ing?"
why not?" I'll
THE question did not come up" said
Mr.. Wakeman.
You are a business man." said SEN
ator Shortridge. "Is it your practice to
enter into contracts for the payment OF
money and the performance of services
without a written contract?"
Agreement Was Oral.
mot in general. no." said Mr.. Wake
man. But YOU do enter into contracts
without having them written sometimes.
It is a matter of good faith"
This was an oral agreement" said
Senator Shortridge.
Eyes"
you made some memorandum or mo-
tation Of it,"
.Didnt you ever think it would be
prudent to do SOP" asked Senator
Shortridge.
mo"
Mr.. Wakeman again stated the sub
ject of the contract with Shearer
saying that Shearer would go to Geneva
and report back to the group employ
ing him through Hunter his observa-
lions Of the conference. Mr.. Wakeman
said they got the cash to pay Hunter
at that time from the assistant.-treas-
urer in the New York office. w. j.
Brown. and that when he returned to
Quincy he sent Brown a check to cover
the payment He said the money was
turned over to Hunter to pay Shearer
because it seemed more convenient to
have Hunter act as agent. Three other
checks were drawn by Wakeman to
pay Shearer. He said that there was
no memorandum to show who was ever
e. oak fI,o Y,aonav in rarIy tn questions