Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-05-17
CHANDLER DENIES
POWER INTERESTS
Describes How Mobile Press
Was Organized at Citi-
j. zenS' Request.

that any power company directly or
indirectly had any financial interests i'll
his newspapers"
Chandler testified in connection with
the commissions investigation into re-
ports of financial holdings in Alabama
newspapers by power interests. The in
curry was requested by Senator Norris,
Republican, Of Nebraska.
Chandler described how the Mobile
Press was organized in April OF this
year after conferences he had with d.
b. Bestor. president of the First Ma
-tional Bank of Mobile, and other citizens
of that city who he said were de-
-sirous of starting a newspaper.
Bestor and T. M. Stevens, the latter
q Mobile attorney are TO appear later
before the commission.
The Alabama Power Co., has not been
mentioned in connection with the Press
tthe witness said, except by the Fred
serck l. Thompson newspapers. when
he said wanted to maintain ''monop-
oily" i'll the field.
!, Senator Norris in his letter to tn"
Gommission had mentioned the Alabama
sPower Co. as holding financial interests
in newspapers in that State.
"E.a!Ie Man" in Deal
! 1. Chandks Said he had entered into
iscontract with "a man" in Mobile, who
would put up 100000 for him on the
collateral of his stock in the Mobile
Press. This man, he continued, was not
associated with any power company,
but 1 do not want to divulge his name.
because of the vicious persecution that
might occur for him by the Thompson
papers"
He adess he had placed collateral ag-
rregating Si10,O00 in stock of the Mo-
bile Press with this man for loan UP
to 100000.
Earlier today Charles OMalley.
Boston advertising man, in testimony
today before the commission. denied
he had mentioned the name of Samuel
insult, the tltiuois utilities magnate, or
had been sl3horized to represent the
insult powe. interest in purporteo
$50 900 900 cash offer for the purchase
of the Boston Post.
He added. however he had proposed
the buying a the Post and also the
Boston Globe t. officials Of those news
papers on bef.s!i of a New York stock
broker and New York bond salesman.
$4,000. oOO. Offer Made.
At Yesterdays. hearing of the COM
mission ,Richar<i Grozier, editor and
publisher of tie Boston Post. said
O'Malley had made a $20.000,000 offer
} for his newspaper on behalf OF the
insult interests to @. D. Carberry, man.
aging editor Of the Post.
In his testimm y today. O'Malley said
in his converse i ons with Carberry the
latter had SUGGESTED the name Of In
Sull.
O'Malley sale two men on February
IL or IL, 1929" whom he named as
Campion, a tnd salesman, and Col
1cran. stock broker. both of New York,
came to his advertising agency Office
and told him they would be interested
in buying the Post or the Globe for two
banks in New York and Chicago re-
spectively, whIch they claimed to repre-
sent.
"The name Of insult" he said, was
not mentioned by them"
Campion and Colloran did not dis
close the names OF the two banks. he
declared. but they said the banks were
interested in purchasing 80 or 60 news
papers from Maine to California. in
Guiding probably five in New England. ="
AT the time they told me they were
negotiating for one large newspaper"
he continued. II think 1t was the In
dianapolis News They told me that
as an adv ertising man I could get in
touch with the Boston newspaper pub
Usher"
Globe Not for Sale.
O'Mallcy said he with the two men
then went to see William o. Taylor Of
the Boston Globe, but the latter in
formed him the Globe was not for sale
and would not be sold las long as any
member of the Taylor family is alive"
Taylor, he added. declared the Globe
was "a New England institution"
The witness said after his call upon
Mr.. Taylor he went to see Louis Mar
chand business manager OF the Post,
and was advised by him that the Post
was not for SALE He added he then
told Campion and Colloran that the
Post could not be purchased and las far
as / knew, there was not newspaper
in Boston which could be bought"
Later the same week, O'Malley said
he went to see Carberry and after dis
cussing general matters, asked whether
tn Post was for sale, and then told
the Post managing editor about the
two New York mems proposal. He add
ed he never had made an offer to Car
berry to buy the Post and that the Post
managing editor had brought the name
of insult into the conversation.
He said he was unable to furnish the
full names or the addresses Of Campion
or Colloran.
-. OCSlOi. Va tLlC Aot
National Bank of Mobile. and one OF
the stockholders in the Mobile Press,
testified there had been no mention
of the Alabama Power Co." at the meet
ing of the stockholders OF the Press at
the time that newspaper was started.
; He added he was the only stakeholder
who was a director of the Alabama
Power Co.. having held that position
Tor the past five or six years.
z tiOped nv Hpalv uhathpr the
connection with the Mobile newspaper
ever had been mentioned at meetings
of the directorate of the Alabama Pow
er Co. Bestor declared there had been
no mention of the newspaper at those
gatherings. He said in his banking
connections, he likewise had never
heard any discussion OF connection
between the newspaper and the power
company
Asked by Healey whether he was will
dng under oath to make these state
1nents. Bestor replied that II can say
nnequivocally as far as know" he had
.hever heard mention OF connection be-
tween the power company and the news
paper at meetings of the Press stock
holders Of the Alabama Power Co. di-
Iectors and in his banking business.
BeStor declared the arrangement FOL
the starting OF the Mobile Press was
that the citizens of Mobile interested il
that newspaper would subscribe $780,
600, and Chandler, the publisher, woulc
put up like sum.
Started Before Power Company.
The first effort to start another news
Saper in Mobile. Bestor testified. was II
! 1920. before the Alabama Power Co
existed"
Two exhibits placed in the recort
consisted of the names OF stockholder
Of the present Mobile Press and lis