Evening star., 1934-09-17
Commerce Unit Linked to
Formation, Recruiting in
Senate Inquiry.
CONNECTION GUARDED
FROM ORIENTAL POWER
Officials of United Aircraft Export
Testify-Pratt & Whitney
Huge Profits Shown.
BY the Associated Press.

BY the Associated Press.
Testimony that the United State;
Department of Commerce aided in
recruiting and formation of a mill
tary air school for the Canton, China
government, was laid today before the
Senate Munitions Committee.
The matter was described as hav.
ing been handled very confldentially'
early last year in order that it might
not come to the attention of another
Oriental power, which might challenge
the 'impropriety" of the action.
United Officials Quizzed.
The testimony came out in ques-
tioning United Aircraft Export off,
cials.
F. H. Love, director of the COM
pany, said the matter had been hail.
died quietly to avoid arousing suspi-
cion of the other power.
Reference to the Canton transaction
was made in a memorandum sent by
s. A. Mcclellan, Loves assistant, tc
p. G. Johnson, president Of the United
Aircraft & Transport Co.
Earlier testimony had told of enor-
nous profits made by the Pratt &
Whitney Aircraft Co., subsidiary OF
United Export, and of efforts Of the
latter company to sell airplanes in
Bolivia and Paraguay during the war
between those countries.
1t also was developed that many
former Government men were em-
ployed by Pratt & Whitney to sell
planes and motors. A letter showed
there had been a close relation be-
tween the company and the Navy
Bureau Of Aeronautics in the develop
ment of an air-cooled engine and that
several former Navy Department men
were now employed by the aircraft
concern or some of the other sub
salaries Of United Aircraft Corp.
Early testimony today showed the
Pratt & Whitney Co. in 1892 had
made total return Of sl1, ,437, ESQ on
the original 81, 1000 investment that it
made in 1925.
Oficials Of United Aircraft Export
and Platt k Whitney were present.
They were, in addition to Love, DON
aid L. Brown, president of Pratt &
Whitney and director in United Ex-
port, and @. w. Deeds, vice presi-
dent and treasurer Of Pratt g. Whit
ney.
"BootIegging" to Be Probed.
The committee was expected to
delve later today into reports that
Germany has built a potent air fleet
out Of motors and parts "bootlegged"
through North Sea ports.
Indications have come from inside
circles that the committee has evi-
dence linking large American ship
ments of airline motors and parts to
North Europe in recent years, with
reported assembly in Germany of an
array of war craft. Data already be-
fore the committee purports to show
Germany has found ways to keep her
self armed despite the prohibitions In
the treaty of Versailles.
One report Is that German inventors
have perfected q new machine gun at
least equal to the guns of any other
nation and is busily developing pro-
duction on it.
Committee Moves.
For today's hearing the committee
moved from the Senate caucus room
to the smaller Senate Finance Com
mittee room.
Testimony developed that the origi-
nal Pratt-Whitney investment paid
1,l43,725 per cent in eight years.
During that time cash dividends
amounting to $6,400,000 and stock
dividends of s5,037,25O were paid from
the original investment of 5000 shares
valued at 20 cents each.
Original investors were the Pratt
& Whitney Co., Fred Rentschler,
George j. Mead and C. w. Deeds.
Deeds, now vice president and treas
urer of the company, attested to the
accuracy of the financial figures.
Alger Hiss, committee investigator,
traced the financial history Of Pratt
& Whitney and United Aircraft &
Transport Co., showing the latter by
1880 owned 100 per cent of the stock