Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-11-23
WATSON AND DAVIS
GOT SUGAR PROFITS,
COMMITTEE HEARS

Continued From First Page)
Sugar Cane League and $3.50 to the
Southern Tariff League.
Holland added an offlcer Of the COM
panies called on Senator Watson and
another on Senator Vandenberg, Re-
publican, Michigan, while the tariff bill
was under consideration.
Holland said Watson held no stock
in the CeloteX Co., but did invest $25,-
900 in the Southern Sugar Co. and the
South Coast Sugar Co.
Dahlberg took Watson's notes for the
stock.
Held by Corporation.
In a 1928 letter to Watson, Dahl
berg sent the stock and the note to be
would be held by his personal corpora
ton which Watson could cancel at any
time prior to maturity.
Watson accepted the terms and
thanked Dahlberg. sat
THE record disclosed nothing was,
done regarding the date of maturity
Of either note" Holland said.
Later, in q letter to Watson marked
personal" Dahlberg said he had can
celed one Of the notes and had sold
the stock for a profit
He forwarded $50 shares in the
Dahlberg corporation representing the
profit
These. valued at SIS each, repre-
sented profit of $3.50 for Watson,
Holland testified, and Watson's total
paper proft as OF 1929 was $500.
Later Watson wrote Dahlberg saying
he was not sure Of his holdings in the
various companies, and asking the lat
ter "just where am"
S7.343 Profit Possible.
of Senator Watson had paid of
ms notes IN cash" Holland said, "he
&7.343"
Before Dahlberg became connected
with the sugar companies, he was q
commission expert and got watson
q member OF the Senate Interstate
Commerce Committee-to do some work
Ior MIN In connection with railroad
agreed ito give Watson q little sone-
thing for his time"
In no case" Holland said, did I
nnd any other purchases where no la
bility was involved"
Il went to Mr.. Dahlberg and asked
MN any other purchases were made
on the same basis as those by Davis.
and Senator Watson, without interest
and no liability.
He was unable to tell me. He said
they sold stock to everybody, Democrat
ana Republicans. He said stock had
been sold to former Gov Al Smith and
Jonn j. Easkob, but didn't think was
interested in that
He said they frequently had turned
down statesmen who had obtained pur-
cnases on the basis of one-third cash"
Gives Smith Investment.
., the committee investigator testified
former Gov Smith paid $4,000 in
1851 Tor 100 preferred and 100 COM
mon snares OF the Southern Sugar Co.:
John j. Raskob had $50 shares and
ser Moses paid $1,000 cash for
The Senate Committee also received
Le3timony that Dahlberg had ordered
$4,000 sent to Senator Davis, but rec
oros OF the company Ehowed no such
Holland named S. s. Eveland, former
vice president of one of Dahlbergs
companies, as having said he heard
Dahlberg order 10000 sent to Davis.
dertook the inquiry, Senator Davis VOL
unfairly appeared and testified tne
charges we're "a contemplate lie" II
aimed at him.
For months the Investigation was
under direction of the late Senator
CaraWay Of Arkansas as chairman of
the Lobby ComHlttee. To-Day, Senator
walsh, Democrat, of Montana presided.
Holland said he first called on Eve
land. yno was reported to have some
INFORMATION tat Danlberg had ordered
$4,000 sent to Senator Davis.
inquiries Into Charges.
Eveland said he had heard Dahl
nerg tax to Davis by telephone and
iater instruct his secretary, George j.
johnson, to phone Chicago and have
the money sent to the Senator.
Holland said the Senate Campaign
ExpeT futures Committee had inquired
INTO Evelands charges. Eveland said
johnson, testifying before that commit
toe, had denied the allegations.
Did you find any record Of any
company's books?" asked Senator
Walsh.
Holland had not.
i did not find record of any money
being transferred at any time from
Dahlberg or any Of his companies to
Davis" said Holland a bit later.
Walsh asked If Holland had found
any correspondence between Dahlberg
and Davis indicating lobbying ACTIVE
Holland said he found a letter from
Dahlberg to Davis asking him to per-
suade Skipper, former Republican ma.
tional committeeman from Florida, TO
accept an invitation to attend q meet
ing at Kansas City.
There was no response to this letter,
he added.
Was there anything else in the rec.
ords OF the companies leading to the
conclusion that Davis was lobbying?"
Walsh asked
Senator Walsh pressed Holland for
any information indicating lobbying
activities by Senator Davis" He was
q member Of the cabinet when the
Hawley-Smoot tariff bill was before
Congress.
Holland said he found d report TO
Dahlberg from his personal representa-
tive in washington, Dan C. Goodwin,
stating he had interviewed members of
the Senate and cabinet regarding the
tariff bill. The report mentioned see
ing Davis.
"What other member Of the cabinet
was SEEM" asked Walsh.
"Only Davis"
What did he report on Davis.
There was nothing to indicate what
TRANSFERRED"
Holland said he also found a letter
from Dahlberg to Davis. urging aid in
getting . loan from the Federal Farm
Board, but the records disclosed no