Evening star., 1933-10-27
OCEAN MAIL PROBE
sEEKS@,oo|TEM
Sum Said to Have Been Paid
to Former G. O. P. CON-
mittee Official.
BY the Associated Press.

Disposition OF $4,000 PAID 70 James
2. Reynolds, former Republican Ma
tional Committee oficial. by J. e.
Dockendorn. president Of the Black
Diamond Steamship Co., win be gone
into fully by the Senate Mail Investi-
eating Committee. 1t was promised yes
terday.
The group decided to look into the
matter after learning that Reynolds re-
Gently wrote to the Internal Revenue
Bureau conceding taxability OF the
money.
Chairman Black explained he con-
sidered it necessary to the study OF
ocean mail contracts TO ind out whether
funds Dockendorff previously testified
to paying Reynolds-a Dockendorf ad-
Hser-for services went for that pur-
pose or, Ito support Of political party"
or to influence mail contracts.
He planned to pursue the case fur
ther upon the return of REYNOLDS: who
to be on q Mediterranean cruise and
expected back around December /.
Questioned About ReynoldA
Black questioned Dockendorf as to
whether Reynolds consulted him after
the investigation Of ocean mail con-
tracts had been announced on failure
to report the $500 monthly payments
between 1924 and 1881. DockendorH
said he did not.
Shorb testified to helping Reynolds
write voluntary letter last September
%. conceding the taxability OF the
items, but said 1t was before 1t was
known the committee had evidence on
that matter.
Over Shorb's objections, the commit
tee decided the letter which the com.
mittee has, was privileged, but did not
put it into the record.
Contributions to both the Republican
and Democratic parties in 1882 and 1928
by officials of the Colombian Steamship
Co. were brought out before the COM
mittee completed brief hearings on that
line late yesterday and adjourned un-
til next week.
C. H C. Pearsall, vice president and
general manager, testified he and Pres
ident H. H. Raymond contributed $500
each to the Democratic and Republican
funds, respectively, In each campaign:
He insisted, however, they were personal
donations and we're not from the COM
pany.
Edge One of Stockholders.
Pearsall's testimony also brought OUT
that former Ambassador Walter Edge
Was .rea one Of the stockholders and that
Arthur F. Foran, another large stock
holder. was best man at Edges wed
ding. He said under questioning ne
thought Foran recommended former
Assistant Postmaster General W. irving
Glover for that post.
Rlack developed that, exclusive OF
directors fees and expenses, Raymond
from 1920 to 1892 received from vari-
o,Is associated companies having DEAL
ings with the Government through
ship purchases, operating contracts ana
the like. salary and other benents
totaling s2,929,299 This included stock
dividends and increased book Vaiue
over cost.
It was shown book value OF one OF
the company's stock-tne eastern
Steamship Co.-was $23SO. ana tna1 ns1
RAYMOND sold large block IN 1927
for s125 a share. Black explained
that if the latter basis were taken,
Raymond's profit would total $3,594,4 ,474.
Earlier it developed that the COM
pany, which started with six Shipping
Board vessels, bought for $76, 600 each,
had paid large dividends. Chairman
Black also obtained from Pearsall the
statement that one consideration OF the
sale of the steamship Haiti to the
ocean Dominion Co., or Aluminium
Line, for S2O5 900, compared with
$4,000 purchase price from the Gov
ernment, was that the Colombian Line
stay out of competition with the Ocean
Dominion in the West Indies Caribbean
Boxite shipping trade.
S944.839 Since 1880.
Pearsall testified mail contracts since
1880 had brought in s944839.
The name Of Andrew w. Mellon was
brought into the testimony again yes
terday when Black asked Pearsan II
q letter he wrote to Admiral Hutch I.
Cone. as chairman of the Shipping
Board. mentioning that arrangements
had been made to see Mellon. meant
negotiations in connection with the
price of boats to be purchased. Pearsall
said: Absolutely not" adding that he
was attempting to obtain business for
the line from "the Aluminium Co."
The committee planned to hold hear
ings next week on the American-South
African and Amertcan-West African
Steamship companies and possibly one
other.