Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-09-07

Gals ana press representatives ana Qe-
livered addresses. He also frequently
american Congress in the interest. OF
increased naval appropriations and has
been a rather familiar figure around
the corridors of the Capitol when naval
matters were under consideration.
Senator Walsh's Comment.
Senator David I. Walsh. commenting
today on the Presidents statement re-
garding the alleged ship company prop
uganda. said:
President Hoover is moving in the
right direction in seeking to find out
the extent of the propaganda eminating
from shipbuilderS against naval arma-
n1ent reduction and limitation. The
Presidents move should be followed up
by an investigation by the Senate
naval affairs committee. incidentally,
an inquiry into alleged paid propaganda
on this subject will help to call forcibly
to the attention of the American people
the extent to which propaganda of all
kinds and on all subjects by selfish in
terests is being used to influence gov
ernmental action on public questions to
the disadvantage of the general public
welfare"
If the facts were established that the
taken to defeat the efforts of this Gov
eminent for agreements on naval
strength with other countries, 1t might
be possible for the President to termi-
nate contracts for other ships or to
see to it that no new contracts went to
those companies.
Firms Issue Statement.
Should it be developed that Shearer
L. Il 1tNAN- -
ments with the purpose of bringing
failure to the efforts Of this Govern
ment to bring about naval limitation
he might be prosecuted under the
Logan act. That act makes 1t illegal
for any citizen of the United States to
have dealings with a foreign govern
n1ent In matters affecting the relations
of the United States with the govern
ment concerned. There has been no
charge, however. that Shearer was in
the pay of any foreign government, or
foreign shipbuilders.
In response to the Presidents state
ment the Newport News Shipbuilding
& Dry Dock Co. last night issued an
emphatic denial of the Shearer charges
through Homer l.. Ferguson, its preSi-
dent and asserted that it approves of
Mr.. Hoovers disarmament policies. z.
G. Grace, president of the Bethlehem
suit wholly without merit" and said
the Bethlehem Shipbuilding Corpora
ton would promptly comply with the
Presidents request for q declaration as
to Shearer's allegations.
Shearer himself said he was entirely
willing to appear before a congressional
investigating committee, and added
that there is much that is unknown
that I can tell about this case when
the orOoer time arrives"
Presidents Statement.
Tue Presidents statement. which he
@sade at his bi-weekly conference with
press correspondents. follows:
II have been much interested in the
disclosures IN respect to the relations of
naval experts, who only month ago
filed a complaint In the New York
courts against three important naval
shipbuilding corporations for services
described in the complaint in which he
acknowledged having received over
$4,000 on account. This propaganda
has, during the past few years, organ
lied jealous support for increased arrna-
nent, and has been severe critic of all
efforts of our Government to secure in
ternational agreements for the reduce
ton OF naval arms, which include ac-
tivities at the Geneva conference, and
opposition to the movement which I
have initiated in the past three months.
A part of this propaganda has been
directed to create international distrust
and hate.
directors of these Shipbuilding corpora
tions have been party to these trans
actions. as represented in this lawsuit,
but their statement of the case is
needed. It is due the public, ii is due
to the government and 1t Is due to the
corporations themselves.
Action May BE Taken.
I'm the meantime, have directed the
Attorney General to consider what ac-
ton we can take. Unless the companies
can show an entirely different situa-
ton from that which is purported in
this suit, we are compelled to consider
what measures can be proposed to free
the country of such influences.
Every American has the right to ex-
press his opinion and to engage in
open propaganda II he wishes, but it
is obviously against public interest for
those who have financial interest In, or
may be engaged in contracts for the
construction of naval vessels to secretly
attempt to influence public opinion or
public officials by propaganda in favor
OF larger armament, and attempt to de-
feat the efforts of the Government in
world limitation of such ornaments or
10 employ persons for such purposes.
am making this statement pub
Iicly, so that there can be no nlisa ppre-
hension OF my determination that our
present international negotiations shall
not be 1nterfered with from such sources
and through such methods"
since President Hoover did not am
pity his statement that, unless the
Snlpo9llding companies could show an
entirely different situation than that
averred by Shearer, the Government
would be compelled to consider what
measures could be proposed to free the
country of such influences, there was
speculation as to what steps could or
might be taken.
Could Withhold Contract.
One suggestion was that the Govern
ment could withhold further contracts
from the three corporations for cruls-
ers which may be built under the IS
suggestion for cancellation of the con-
tracts for two of the cruisers awarded
recently to the American Brown Boveri
Electric Corporation and the Bethlehem
Shipbuildfng Corporation.
In addition TO the two contracts re-
Gently awarded. the three companies
which Shearer is suing are building Ave
of the 10,000-ton ships authorized by
Congress some years ago. The Brown
Boveri Corporation is constructing two,
the Salt Lake City and Chester. both Of
witch are nearing completion; the New
port News Co. is building two, the
Houston, launched today. and the Ati-
gusta while the Bethlehem Corpora
lions plant is constructing the North
ampton. which was launched Thursday,
with Mrs. Coolidge as sponsor.
auEARER WILLING To TALK