Evening star., 1933-09-27
.SLEMP SHIP DEAL
FEE $4,000, MAIL
PR0BERS ARE TOLD
Herberman, Line President.
Tells Senate Committee
$4,000 Was Paid.
WITNESS SAYS FIRMS
CHECK PAID TAILOR BILL
Ex-Treasurer of Line Takes Stand.
Woman Is Quizzed on Real
Estate Deals.
By the Associated Press.

! BY the Associated Press.
The Senate Committee investigating
ocean and air mail contracts was in
formed today by Henry Herberman.
! president of the Export Steamship Co.
that c. Bascom Slemp, who once served
as secretary to Calvin Coolidge, when
ne was President. had rendered a bill
Tor $4,000 for legal services in con-
| nection with the purchase by the COM
pany OF 18 Shipping Board vessels.
The ships were purchased by the
Export line for $1,171,431 after the
Shipping Board had spent 81 1925, ,71s in
repairing them.
HeIberman, who late yesterday was
unable to inform the committee as tn
attorney fees paid, today had handed
to Senator Black, Democrat, of Ala
| nama, chairman of the Investigating
Committee, a letter dated September
26, 1888, stating he paid Slemp $4,000
in two installments. Slemp once was a
member of the House from Virginia.
Says SIemp Asked $4,000.
The text of the letter read:
With respect to your question about
legal fees of Mr.. BaScom Slemp in 1925,
| to the best of my recollection the ques-
tion involved was the price per ton to
be paid for Shipping Board vessels.
THE Export Line offered something
Ike SIS ton and Admiral Palmer
| speaking for the Shipping Board, asked
| $3.50 ton. We compromised at $3.50
ton and the Shipping Board drew
up the contract on that basis.
Mr.. Slemp acted in connection with
this matter and felt that his services
were worth, as recall, $50 1000
Il actually paid him $4,000, $1,000
January 19. 1925"
w. D. Mclaughlin Of Long Island.
former treasurer Of the Export Line,
was questioned about payment of $50
tailor bill through the Steers Terminal
Corporation, subsidiary Of the Export
Line. The bin, made out to T. v.
O'Connor, former chairman of the Ship
ping Beard, by j. Caliiendo of New
York, and dated November II, 1924.
was identified by Mclaughlin as one
he had seen in the Offices of the Export
Co. in 1924.
Yesterday Mclaughlin testified zone
Of the boys" had been directed to paw
the bill either by Herberman or some
one authorized by him. He then said
he thought James Fahey had paid it
from a check drawn to him through the
Steers Terminal Co.
Black Cites Record.
Mclaughlin made this statement after
Senator Black had said the record
showed the tailor bill had been paid for
| O'Connor.
Herberman yesterday denied having
paid the bill for O'Connor.
Mrs Nina G. Irvine, secretary to
O'Connor when he was Shipping Board
chairman, testified she had bought some
Florida lots for Herberman and after
a Justice Department agent had gone to
the Shipping Board to look over her
records on these transactions, she had
destroyed them.
She conceded, under questioning by
Black, that Herberman had her transfer
some OF the property to the name of
Joseph Schultz, his chauffeur
She also said O'Connor and E. A.
Kelly of the Clyde Mallory Steamship
Co, who also formerly was with the
Fleet Corporation, had pooled little
money to buy and sell lots" in the
Florida land boom. She said O'Connor
had some property "in and about
Miami"
Quizzed About Note.
Mrs. Irvine was questioned about a
note sent by her to Herberman through
q Miss Holland, secretary to Herber-
man, with regard to making a $4,000
payment on one Of the lots. She said
she had written the note but that she
had not signed it. 1t read:
Dear Mr.. H.:
Il thought would see you again to-
day, but as reminder I am sending
this note. Today is the 26th and we
have promised to have the balance,
which is, $4,000, down there on the Both.
So 1t will require prompt attention
The way the other was sent in my
opinion, is the best way to handle It,"
Herberman yesterday testified he had
ordered the treasurer of the export
company to forward the money for the
payment.
In the committees record was a
statement by Senator Black made yes
terday that the Export Steamship Cor
poration paid Herberman, $11 800 for
entertainment expenses in one month
Of 1927, and that between 1926 and
1892 Herberman received more than
$1.000.000 in salaries and expenses.
Herberman said much of the money
went for propaganda. explaining he
had backed magazine to tell about
the merchant marine. Black asked
about 81, 400 Of expenses In one month
for trips to Washington.
THAT was quite reasonable in view
Of the magnitude Of my job," Herber-
man said.
When Black asked about a $75 item
for his own food in one day, Herber-
man said he entertained his business
friends, adding:
Denies Politicians Guests.
"But If you have got the idea 1 en-
tertained politicians, you are wrong"
Earlier testimony before Blacks in
vestigating committee yesterday said
the Shipping Board spent $1,825,718
for repairing 18 ships that were sold to
the Export Steamship Corporation for
$1,071 ,431 and that Robert Lamont,
Secretary Of Commerce under President
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