Evening star., 1934-01-10
Senate Probers Told Big
Lines and Brown Set Spec
ifiCationS at Farley.
LINDBERGH STOCK GIFT
DESCRIBED AT HEARING
T. A. T. Official Says Adviser Was
Given Shares for His Services
to Company.
BY the Associated Press.

BY the Associated Press.
Senate Investigators heard today that
big airmail contractors discussed in ad-
vance with former Postmaster General
Walter F. Brown the specifications for
bids on transcontinental routel that
would exclude independents.
D. M. Sheaffer. chairman of the
Executive Committee of the Transco>-
tinental Air Transport, Inc, one of the
successful bidders, said the operators
discussed with Brown the specifications
that called for experience in night fly
ing, and conceded this excluded inde-
pendent companies from bidding.
Sheaffer also testified that $4,000
shares of his companys stock were
given to Col Charles A. Lindbergh
Sheaffer told of a complicated system,
used for what he said was income tax
purposes" in transferring the stock to
the noted pilot.
Services" Basis of Gift
He said the stock, valued at $25O,000,
was given to Lindbergh in return for
services"
Questioned at length by Chairman
Black, Sheaffer said the night-flying
specification blocked bid by Erie Hal
liburton. independent operator.
Sheaffer told of a contract between
T. A T. which bid on the central trans
continental route, and Americans Air
ways. which bid on the Southern route
for purchase Of so per cent of Halli-
burtOn'S contract
Black attempted to establish that the
purchase was discussed with Brown and
that it was designed to keep Halliburton
from bidding.
Halliburton and American Airways
bid jointly for the Southern route. but
before the award was made American
Airways bought out Halliburton for
| 81, 400, ,000..
Shaeffer was questioned about con-
ferences with Walter F. Brown. former
Postmaster General, about the contract
awarded his company.
He said he was not sure Brown had
suggested the consolidation of the two
lines so they could be awarded the con-
tract.
Met With Young Hoover.
Shaeffer said he had conferred once
| with Herbert Hoover, jr., while the ne
gotiations were in progress. Hoover
was connected with Western Air Ex-
press.
The witness told of the organization
Of his company by the Pennsylvania
Railroad in 1928. He said he kept w.
: w. Atterbury, president of the railroad,
informed on progress of the negotia-
tions, but testified he did not know
whether Atterbury, former Republican
national committeeman for Pennsyl-
vania, had discussed the contract with
Brown. Shaeffer said his company did
not know in advance it would get the
contract or that it would have the
edge" in the bidding.
Closely questioned by Chairman Black
he said his company bid 971a per cent
of the postage, while the United Navi-
cation Co. bid 6412, but won the award
Black explained that the bid of 971a
per cent by Sheaffer's company repre-
sented 97l2 per cent of the maximum
allowed under the law, which was stated
in the specifications
The law provides certain maximum
rate that may be paid for airmail con-
tracts. 1t is different on different routes.
The specifications asking for bids set
forth this maximum.
Mellon Interest Sought.
Black asked if the Pittsburgh Avia-
ton Industries Corporation, which was
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