Evening star., 1933-11-23
Names Louis B. Mayer, CIau.
diuS Huston and James
Francis Burke.
ENLISTED AID TO BALK
ANTITRUST PROSECUTION
Declares Bankers Forced Him,
"Under Duress," to Sell Con-
troll of Theaters.
BY the Associated Press.


In story as gripping as some he has
placed on the screen, William Fox told
Senate investigators today he was forced
out of the movie business by a con-
spiracy of bankers and then related
negotiations with noted Republicans,
including President Hoover, to prevent
prosecution under the antitrust laws.
The retired movie magnate told
story OF paying $2,000,000 to Louis B.
Mayer, California Republican leader. in
settlement Of previous claim and then
getting a promise from Mayer to aid
him at the Justice Department.
Fox, who. rose from poverty to great
wealth, said Mayer was suggested to
him by ClaudiuS Huston, then chair
man of the Republican National Com
mittee, and James Francis Burke, the
committees general counsel.
Fox Charges "Duress."
Senate Banking Committee members
listened intently and the room rapidly
crowded with spectators as Fox charged
bankers had forced him to sell control
of his 1000 theaters under duress.'
He made his conspiracy charges
against Halsey-Stuart & Co., Albert H.
Wiggin, former chairman of the Chase
National Bank; John Otterson, official
of the American Telephone & Telegraph
Co.. and others.
Committee investigators, meanwhile,
said they had evidence that the interests
which bought out Fox not only paid him
Samuel Untermyer and $500 SOOST 600 to the he
law firm of Charles Evans Hughes for
h tc Atrt x,it
the bankers.
The former theater magnate testified
he was forced under duresS" by bank
erS to sell control of his chain of 1000
movie houses, which he had developed
frcm a single nickelodeon in Brooklyn.
Before purchasing controlling stock
in Loew's, Inc, in 1923, the witness said
he conferred with William j. Donovan,
former Assistant Attorney General, to
learn whether the Justice Department
would object.
"AII Right" He Is Told.
He said he was informed later by the
Attorney Generals Office it would be
"all right" for him to buy the stock.
When Hoover was inaugurated, Fox
added, he became alarmed at what he
called the hostile attitude of the new
administration He had expected Dom
ovan to be named Attorney General, he
said, but instead that post went to
William D. Mitchell.
Il was told by a friend there was a
man by the name of Claudius Huston
who might be able to help" Fox said.
Took Affair to Hoover.
81 asked to see President Hoover and
talk to him about the matter" Fox con-
tinued. He said he took his troubles
to Mr.. Hoover at White House lunch
con.
Hoover told him, Fox related, that he
needed no intermediates such as Hus-
ton, and that he needed only to send
word to his Attorney General at the
Department of Justice If his story was
true.
A few days later, he added. Huston
and Burke called on him in New York
and suggested it would pay" to have
a talk with Mayer
He added that Mayer had a contract
with Loew's and was wondering about
its future under the Fox management.
Mayer felt he should have participated
in the profits from the Loew sale, Fox
added.
Burke Was Attorney.
Senator Adams, Democrat, of Colorado,
asked if Huston and Burke were en-
ployed as attorneys.
Burke was attorney in the matter"
Fox said, explaining he was friend
of a friend
Huston was to receive no compen-
Sation and didn't. When I sold out I
did lend Huston some money for which
hold his note and would loan Hus-
ton some money tomorrow if he asked
for it."
Mayer came to New York. Fox con-
tinued, and was still bitter about his
failure to participate.
II have reached the conclusion 1t Is
but fair for you to share in the profits"
Fox said he told Mayer, reversing his
former position.
$4,000 900 Promised.
What would like to say Is this:
II and when the companies are merged
I will see that the companies pay you
100000 in cash, which would have
been fair in the beginning"
The movie man then said he told
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