The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1931-11-24
STOCK DEAL
WAS FIzzLE,
WATSON SAYS
Senator Asserts He Really
Is Loser, in Connection
With Sugar Filler
Continued from Page II

pASASAlCN VI JlAC OOulu OOdSb fOuSdE
Company.
Watson was required to sign the
two notes aggregating $4,000, with
the understanding that no interest
was to be charged and that Wat
sons liability on the notes is
limited entirely to the stock"
The shares, together with the un-
signed notes, were sent to Wason,
by registered mail, in an envelope
marked personal" addressed in
care of the senate office building.
Washington.
Watson signed the notes and re-
turned them with the stock, which
was to serve as collateral. May ID,
1923, Watson wrote to Dahlberg, Il
return herewith certificates of stock
and notes properly signed.
Reserves Letter for Self
IT accept the stock under the
conditions prescribed in your let
ter, which 1 am reserving for my
self.
Il certainly thank you for your
kind consideration, which I most
heartily appreciate and wish you
unbounded success"
Aug. IA, 1929, Dahlberg wrote
Watson that he had sold the shares
in the sugar companies, and re-
turned the two notes marked can
celed," together with 500 shares of
common stock of the Dahlberg
Corporation of America, which rep
resented Watsons profit" in the
deal.
Soon after the committee re-
cessed Monday, Watson was in
formed of the evidence. He made
the following statement to the
press: Early IN 1923 gave my note
for stock in one of Dahlbergs COM
panies. The stock is of no account,
or worth nothing, and neither is
my note. Therefore the score is
nothing to nothing-no hits, no
runs. two errors.
"One error made when bought
the stock, and the other error Dahl
berg made when he took my notes.
This was purely private business
transaction and had no relation TO
legislation, past, present or future"
Employees for Railroad Farley
In elaboration of this statement,
Watson gave the following account
of his dealings with Dahlberg:
ut came about this way. In
1927, after congress adjourned,
Dahlberg, who is an old friend of
mine, came to me and asked me to
try to settle some suits he had
against four railroad companies.
THE suits came about as result
of excessive freight rates, which had
been declared illegal. Several of
the railroads had made refunds of
excessive charges, but four refused
to compromise. Dahlberg offered me
a handsome fee, and employed me
as lawyer.
We'll, L spent nearly all that
summer talking with first one rail-
road president and then another,
but I couldn't get them to compro-
mise. The cases still are pending
in court.
Il was to get the fee if I settled
the suits, but 1 failed, and so
thought at least would get my
travelling expenses.
Was Given Stock
$50 I went to Dahlberg and he
said to me, Now you spent lot of
time on this, and want to do some
thing for you. I want you to take
some stock in my companies. You
don't need to put up any money.
Just give your personal note, and
I'll carry you
You know don't know much
about business matters, SO said to
Dahlberg: Just as you say. You
handle it for me. If we make any
profits on the stock you can turn
over the proceeds to me, and if we
lose anything you can just tell me
how much owe you
Just Lost His Money
$50 that's that. I didn't pay any
more attention to the deal. Dahl
berg snapped the stocks from one
company to another, and the stocks
I now have aren't worth anything.
The net result is that 1 lost the
money and time spent in travelling
that summer"
Asked whether he would request
permission to explain the matter to
the lobby committee, Watson said:
mo, it was only a personal matter
between Dahlberg and myself. 1t
had nothing to do with the senate.
If the committee had asked me
about it I would have been glad to
explain. I have nothing to con-
ceal."