The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1931-11-24
STOCK DEAL
WAS F|zzLE,
WATSON SAYS
Senator Asserts He ReaH /
Is Loser, in Connection
With Sugar Filler
RAISE POINT OF ETHICS
DiCker With Railroads While
He Was Senate Chairman
Is Revealed.
IN Kin Is Specinl


WASHINGTON, Nov. 24.-Sena-
tor James E. Watson was very much
in the spotlight as hearings were
resumed today before the senate
lobby investigating committee.
A mass of documentary evidence
was submitted to the committee
Monday by its investigator, John
Holland, revealing that Watson and
Senator James j. Davis of Penn
sylvania acquired large blocks OF
stock in sugar companies, for which
they paid no cash.
With them in the spotlight was
B. H. Dahlberg, sugar f1nancier, who
contributed to both the Republican
and Democratic presidential cam
paign funds of 1923, it was dis
closed today before the committee.
Dahlberg gave $4,000 to the Re-
publican fund and $1,000 to the
Democratic.
Act Was Unlawful
Testimony as to Dahlberg'S con-
tributionS was offered by John Hol-
land, investigator for the commit
tee. He said Dahlberg got the money
he contributed by collecting it from
his sugar companies as follows:
$4,000 from the Celotex Company,
$4,000 from the Southern Sugar
Company and $4,000 from the South
Coast Company.
Holland read from the law cover
ing campaign contributions, specify
ing it would be unlawful for any
corporation to take a contribution
in the campaigns for presidential
elections.
Davis name had been linked with
the so-called sugar scandal" since
last spring, when a charge was
made that "a certain United States
senator was paid 100000" to lobby
for a high sugar tariff. At that
time, Davis voluntarily denied he
received any money, and asked for
a complete investigation.
Made No Profits
The Indiana senator came into
the picture Monday, when Investi-
gator Holland produced records
from the files of sugar corporations
showing, that Watson had been is
sued stock and had paid for it with
two personal notes for $12,500 each.
The testimony did not intimate
that Watson had received the
stock because of anything he did
relating to sugar tariff. Moreover,
the evidence indicated that although
Watson never paid any cash for the
stock, he likewise realized no
profits from the transactions.
So far as can be learned, the
stock which Watson now holds is
practically worthless.
May Raise Ethics Point =.
Although Watson appeared to be
in the clear in so far as the sugar
tariff scandal is concerned, it was
regarded as possible that the lobby
committee might raise the question
of senatorial ethics against him.
In the summer of 1927, he adj
mittedly undertook to settle litiga-
ton between a sugar corporation
deal and railroad companies, at a
time when he was chairman of the
senate interstate commerce commit
tee, which has jurisdiction over all
railroad legislation.
incidentally, when the evidence
was brought out Monday, one of the
lobby committees heretofore most
active members, Senator Arthur
Robinson, colleague of the involved
senate leader, was not present.
Stocks Issued to Watson
Documents placed in evidence
Monday showed that, early in 1928.
B. G.. Dahlberg, Chicago capitalist,
caused to be issued to Watson 125
shares of common stock and 125
shares of preferred stock of the
Southern Sugar Company and 125
shares Of common and 125 shares Of
Turn N Dara o.