Evening star., 1933-11-23
OCEAN MAIL GROUP
: QUESTIONS DOLLAR.
Ship Executive Asked to Pro-
/ vide Names of Those Sail
ha ing on Passes.
BY the Associated Press.

R. Stanley Dollar, president of the
Dollar Steamship Lines, was asked to-
day to supply the Senate Ocean Mail
Investigating Committee with the names
of any persons connected with the
Government of publishers or represen-
tatives of newspapers who had Travelled
without charge or under special con-
siderations on his boats.
Chairman Black made the request,
after Dollar had testified he thought
there had been some Congressman, in
cluding Representative Carter of Cali
fornia, who had Travelled from here to
California without charge on Dollar
boats.
Negotiations by the Dollar interests
for mail contracts were the main sub
ject of the examination.
The shipping official said there were
very few passes, given and that such
items generally took the form of mini
mum rates. When Black asked what
Senators, Representatives or newspaper
publishers we're favored, Dollar said he
could not remember, but would try to
supply what information his records
showed.
Denies G. o. p. Contribution.
During his appearance before the
committee. Dollar denied making con-
tributions to the Republican campaign
funds in 1928 and 1882. When Chair
man Black cited records required by law,
which listed him as having contributed
$1,000 in 1928 and $3.50 in 1882, Dol
lar said he did not remember making
them, but that many actions were taken
in his behalf without his knowledge.
Evidence developed yesterday showed
that after losing $3l4,893 in 1924, when
a round-the-wor service was started
with seven vessels bought from the
Shipping Board for $550000 each, COM
pared with construction cost totaling
S29.071 1923, the California Co. maoe
profits of Sl,OO4,819 in 1925. Sl,878,696
in 1926, and S2,520,780 in 1927.
Syndicate Is Formed.
It was the 1924 loss which Dollar told
the committee prompted the formation
of a syndicate underwriting seventeen
fortieths of the purchase price. Black
charged members of this and second
syndicate received large profits without
paving out any of their own money.
Dollar explained that after losing
100000 on the first voyage of the
round-th world venture, his company
became fearful and decided on the syn
dicate. whose members took the respon-
sibility of operation losses.
Black contended the prompt return
of profits removed the loss risk, and
that the company'S contract with the
Shipping Board gave the Government
no protection other than to take the
boats back should the company be un-
able to continue operations.
Black developed that profits to the
members of the 1924 syndicate and the
second one, formed in 1925, were ST.
908 522 up to August l, 1929, when the
Dollar Co. of Delaware was formed,
and the syndicate members received for
their interests 100000 shares of the
new companys class A stock. having
five times the value of other stock.
Second Group Purchased.
A second group of ships, which Black
said cost the Government S32,477S77
to construct. was bought in 1926 for
S5 625 900.
The committee learned that Dollar,
then vice president without salary,
was voted 5 per cent commissions for
making the purchases. Black also said
part of the commission allowance was
paid Dollar in 1888 while his company
was in default to the Government.
Black introduced documents to show
the first syndicate was agreed on by
the directors and was not approved
until later by the stockholders, of which
there were outside minority holders of
some 10000 shares, and that the second
syndicate was authorized by the direc-
tors with no stockholders approval
recorded.