Evening star., 1931-06-26
POST SALE HALTED
AS M'LEAN SPURNS
ONLY TWO OFFERS
AS Co-TruStee He Claims
Veto Power in Any Dis
posaI of Newspaper.
COUNSEL STAGE CLASH
ON FINANCIAL OUTCOME
Other Prospective Buyers Balk,
Mrs. McLean's Deal Failing
of Consummation.

The proposed sale Of the washington
Post was halted unexpectedly In the
District Supreme Court this morning
when Edward B. Mclean, the owner,
announced through counsel that he
would exercise a veto provided by his
fathers will and block the sale.
Mclean Is co-trlstee Of the paper.
and his announcement came hard on
the heels of statement that the other
trustee, the American Security g. Trust
Co., and the guardians Of the Mclean
minor children we're prepared to petit
ton the court to accept the offer made
for the paper by William Randolph
Hearst, publisher of the Washington
Times and Herald, rather than that of
David Lawrence, publisher of the United
States Daily and president of the Con-
solidated Press Association.
Later it was stated that no appeal
would be made
McLean's stand was Immediately con-
tested by Lucien H. Mercier and Ralph
B. Quinter, guardians for the children,
but J. S. Tlannery of counsel for the
American Security & Trust Co. held
that there was no chance under the
circumstances of sale going through
Mercier later said that the guardians
would not appeal.
Refuses Two Offers.
McLeans attitude was made known
by his attorney, George B. Fraser. who
presented a written statement to Justice
Jesse C. Adkins, presiding, in which Nc
4 aNrYNio ha xxrff - h.
approval which he had given to the
original offer of Lawrence; that he
would not approve the offer by Hearst,
and that he would not "at this time"
give his approval of a sale TO any one.
1t was his contention that under the
terms Of the will of his father John
r. Mclean, Of whose estate the Post
Is a part, he holds the veto power
in any sale. After the hearing Mclean
told newspaper men that he was now
opposing the sale of the paper because
of my children; because I only learned
in the last few days that if I sold
the paper I would threw 800 men out
Of employment, and because want 70
keep the paper"
Mclean has been seriously Ill with
heart attack at his home, Friendship.
for some time and his appearance at
the hearing was not expected.
Other Bidders BaIk.
He was accompanied by his elder
son, John r. Mclean, I'd. Mrs. Eva
lyn Walsh Mclean, his estranged wife,
who has fought since the sale Of the
paper was broached 70 retain it for
their boys, John R., I'd, Is years old,
and Edward B., jr., l3 years old, was
another child, Emily, years cid.
The offer which Mrs. Mclean was ex-
pected to make for the Post did not
materialize Today'S hearing was an
adjournment Of one held 10 days ago, at
which time Frank J. Hogan, counsel for
Mrs. Mclean, obtained an additional
period in which bid for the paper
would be received, declaring that she
had a backer who expected to be pre-
pared to take over the paper and then
allow repurchase by the Mclean boys
when they reach maturity.
Ncr did two other offers. which had
been promised by Attorneys w. c. Sui
livan and w. j. Hughes. jr., at the last
hearing, materialize. Today's hearing
was productive of several clashes be-
tween counsel prior to the collapse of
the proceedings. when Mercier sug-
gested that it might be to McLeans
financial advantage to block the sale
of the paper under the terms proposed,
although, he said, he would not credit
Mclean with such motives He said
that Fraser told him that he thought
Mclean was entitled to any profit that
might accrue from the sale of the paper
If the terms met his original wishes.
Fraser natly denied making any such
statement.
Trust Company Shifts Stand.
At the outset OF the hearing, Corcoran
Thom, president of the American Sc
curity g. Trust, took the stand and
under questioning from Mr.! Flannery
said that while there were but two offers
for the paper before the trustees, that of
Lawrence and that of Hearst, that both
had been amended from their original
! form, and that in an all-day conference
yesterday of all the interested parties
| it had been decided to withdraw the
original application for ratification by
| the court of sale to Lawrence, and to
file supplemental petition recommend
ing sale to Hearst. Thorn recalled that
| the offers involved the same sum, S3,-
600, 900, and he said that it had been
! decided that the Hearst offer would
| furnish "the better security" for the
bond issue which would be behind the
! transaction.
| At this juncture Maj. Julius I. Peyser,
who acted as broker in the transaction
with Lawrence, arose to ask II Mclean
| had been advised of the change and
when he had been advised.
Mercier leaped to his feet and as,.s1