Evening star., 1934-03-08
HENDERSON bARES
LOAN TO FORMER
POSTAL OFFICIAL
Tells Probers He Later Can
ceIed $4,000 Debt of
Glover Assistant.
DECLARES ROOSEVELT'S
PROPOSAL IMPRACTICAL
New York Curb Exchange Agrees
to Furnish Names of
Stock Sellers.
B. the Associated Press.

B. the Associated Press.
Paul Henderson. vice president OF
United Aircraft and Transport Cor
poration. testified before the Senate
Ailmail Investigating Committee to-
day that he had lent $4,000 in 1880
to Chase c Cove. deputy Second As
sistant Postmaster General under W..
Irving Glover.
Henderson previously had termed
impractical President RooSevelt's pro-
posals for return Of the airmail to
private carriers under new terms.
Henderson said in the last year or
two he had destroyed the notes evi-
dencing the loans totaling $4,000.
Cove, he said. was a close personal
friend Of long standing.
lie told me he had been gambling
in the stock market with ell the
money he had in the world" Hender-
son explained.
Meanwhile, the New York Curb Fx-
change agreed to furnish the Senate
Banking Committee list of sellers Of
air company stocks prior to cance.la-
ton OF the airmail contracts, and
Chairman McKellar of the Senate
Pest ONCE Committee told newsmen
private aviation companies whose mail
contracts we're Cancelled would have
to undergo a thorough housekeeping
if they expected to receive any con-
tracts under President Rocsevelt's
program.
Year Would Be Required.
Asked about the feasibility of six
month qualification period for mail
bidders, as proposed by the President,
Henderson asserted at least a year
would be required to build up a
smooth-runnine organization.
Even at that. men would have to
be employed from old companies"
Illustrating his contention aviation
companies must plan over long
period, Henderson said united sub
sid,ary had developed two planes bet
ter than any now used by the sys-
tenn, but that about two and crle-hAlf
years would be required to get them
into service
The Post once Department mean
while pushed an investigation to de-
termine whether s.irmail-carryins
companies had been overpaid.
Karl Crowley, department solicitor,
said final payment had not been made
to any of the companies whose con-
tracts were Cancelled.
Talking to newsmen in his ONCE
with a tentative draft OF bill 10
carry out the Presidents plan be-
fore him, McKellar said the legis-
lation would be introduced In the
next few days.
Contracts are not expected by Capt.
tol authorities to be let for several
months. although some said 1t was
the administration desire to shorten
as far as possible the Army emer-
gency ai~mail service.
Must Conform to Law.
"If any company whose contract
was Cancelled keeps its present OH
GERS and afftates it won't fare SO
we'll" McKellar asserted. but if they
out their affiliates and interlocking
directorates they will be permitted to
bid like all other companies.
IF they want to stay in the pic
ture they must conform to the law
Henderson said on october 10 he
indorsed notes for Cove at the Dis
trict National Bank totaling $4,000.
On November 10, he said, he indorsed
an additional 1900, and on December
% lent him $1,000 directly.
In the meantime. he said. he had
instructed the bank to charge the
prior notes to his account.
Henderson explained stocks were
going down so that he feared the
notes would not be paid and did not
want his name attached to an un-
paid note at the bank.
Henderson said none of the loans
had ever been repaid.
Cove. Henderson testified, wanted
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