Evening star., 1934-06-28
DERN SLAP DRAWS
HOT DENIAL FROM
CARDEAL PROBERS
House Subcommittee Ac-
cused by Cabinet Officer
of Menacing Defense.
ARMY CONTRACT DELAY
CHARGE IS DISPUTED
General Motors Man Denies Pro.
posal for "Split" on Truck
Purchases.

A statement by Secretary of War
Dern today that the House investiga-
tion of Army contracts is seriously
impairing the national defense and
impeding contract awards brought
the sharp rejoiner of House Committee
members that he would never have
made such a statement had he been
in full possession of the facts"
Dern told newspaper men at a
press conference that he could not
understand why the whole Army
motorization program should be held
up by an investigation of one phase
of motor procurement, and declared
the congressional inquiries are men
acing the country's national defense.
I am sure Secretary Dern would
never have made such q statement
had he been in full possession of the
facts" Acting Chairman Kvale,
Farmer-Laborite of Minnesota, said on
being advised of Dern'S declaration.
Denies Contract Delay.
Representative Goss, Republican, of
Connecticut, said that mot single
Army contract is being held up by
this committee or at the request of
this committee" and asserted that, on
the contrary, the Military Affairs Sub
committee, of which he is member,
''is doing its best to expedite these
contracts"
Committee members said that if
there has been a delay in the mo-
toriZation program, it is because bid
derS for motor truck contracts have
complained about altered Specifica-
tions and irregular practices in con-
nection with the program.
1t was pointed out the program is
being held up not by the committee,
but by the War Department, which
acted after the grand jury launched
an investigation of the charges OF
lobbying in connection with War De-
partment contracts.
Goss said some awards are being
delayed pending a ruling by the con-
troller general on certain complaints
made by bidders, but that he was
sure the controller general himself is
doing everything possible to facilitate
action.
Wo0dside on Stand.
Denying charges that a General
Motors official had proposed a three
way split" on Army motor contracts
among Chevrolet. Ford and ChrysIer
bidders, Joseph B. Woodside, the cor
poration's representative in Washing
ton, told the committee today he
understood" a proposal of that char
acter had been made to his firm by
some one else.
Woodside said he had no personal
knowledge of the reported approach"
to General Motors, but that he under
stood some testimony along that line
was given to the grand jury which
some months ago investigated War
Department contracts.
WoodSide, in response to question,
suggested that it was possible" Nor
man K. Haig, managing director of
feet sales for General Motors, could
testify before the committee in this
connection.
Charge Is Reiterated.
Immediately upon completion of
Woodside's vigorous denial of charges
by R. P. Sabine, Bethesda Ford dealer
that Haig had suggested dividing up
Army motor car contracts, E. c. ST.
monds. another Ford representative,
told the committee under oath that
such proposition" was made to him
and Sabine early last January by Haig
at Camp Holabird, Army testing
ground for automobiles.
WoodSide had just testified that he
attended the meeting at Camp Hola-
bird on January % last, at which Haig
is alleged to have broached the con-
tract-splitting scheme and that neither
Haig nor himself made any such pro-
poSal.
WoodSide asked the committee to
give Haig an opportunity to appear
in person and deny Sabine's and ST.
monds' charges, and Acting Chairman
Kvale, Farmer-Laborite, of Minnesota,
of the Military Affairs Subcommittee,
said Haig would be called probably
next week. He was out of the city
today
Woodside one-time assistant to
Controller General McCarl, said in
response to questions that Frank E
Speicher, now famous missing wit
ness" in the grand jury investigation
and long object OF Nationwide
search by the Department of Justice
represented General Motors on two
occasions-a direct contradiction of
testimony previously given the COM
mittee by Haig
Woodside explained Haig had been
mistaken in his previous testimony.
Woodside, asked by Representative
Goss, Republican, of Connecticut, why
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