The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-02-19
BROWN DENIES
COLLISION AND
FRAUD CHARGE.
No Agreement on Air Mail
Bidding, Says Former
Postal Head.
IMMUNITY is WAIVED
Farley Action Is Called
Colossal Injustice at
Hearing.
By United Press

By United Press
WASHINGTON, Feb. 19.-Walter
F. Brown, postmaster-general under
former President Hoover, appeared
voluntarily before the senate air
mail committee today and denied
charges of 'collusiOn and fraud in
contract awards during his admin
istration.
Mr.. Brown attacked Postmaster
General James A. Farley's recent
cancellation of domestic mail con-
tracts as "a colossal injustice" and
told :he committee the action would
destroy the nations air lines.
Dressed in a brown suit, Mr..
Brown fingered thick document as
he awaited his call to the witness
chair.
Denies "SpOiIs Conference"
The Hoover cabinet officer denied
Senator Hugo Blacks charges that
contracts were awarded without
competitive bidding and that a
"spoilS conference" was held in the
pOstoffice department in 1880 for
the purpose of dividing mail routes
between particular operators"
Before proceeding with question:
ing, Senator Black established for
the record that Mr.. Brown was
willing to answer any inquiries re-
garding his conduct of official
affairs, without recourse to immunity
Mr.. Brown then read long state
ment declaring that there was
nothing clandestine or secret" about
the alleged 'Spoils conference"
No suggestion of dividing air
mail operations among the COM
panies represented at these meet
ings was ever made or contemplate
ed, hes aid, land no agreement or
understanding with respect to bid
ding on airmail contracts or re-
framing TO bid on airmail contracts
by any of the operators present was
made at either of those meetings or
at any other time.
Cites Airline improvements
He said the airlines we're improved
by actions taken under his admins
tration and revenues of operators
had increased by $10,O00,000 since
1929.
Public attention has been drawn
to my investment in the securities
of three corporations whose business
l. ,.oIofaI r. f,-oYer1Ortofio,, tbo T.,
ternational Mercantile Marine Com
pany. the Pennroad Company and
the Pennsylvania Railroad Company.
During my terms as postmaster
general no mail contract was award
ed to tn international Mercantile
Marine Company or to any other
carrier in which the International
Mercantile Marine Company held
financial interest.
Competitors Given Contracts
Five ocean mail contracts were
awarded by he to competitors of
International Mercantile Marine.
No mail contract was awarded to
the Pennroad Company. During my
term no contract for carrying the
mail was awarded to the PennSyl-
vania Railroad Company, of whose
stock 1 own 225 shares.
Senator Black questioned Mr..
Brown regarding his government
service before he became postmas-
ter-general. 1t was brought out
that Mr.. Brown was an assistant
secretary of commerce when Her.
bert Hoover was secretary and Will
litm P. MacCracken Jr., under SEN
tence for contempt of the senate,
was assistant secretary for aeronau-
tics.
DO you recall having anything
to dow with air mail contractS?"
Senator Black asked.
No"
Bagley Relationship Questioned
Senator Black turned suddenly to
questions about Mr.. Browns rela-
tions with Joseph Bagley. who par
ticipated in a joint stock account
with the former government official.
Mr.. Bagley is dead and Mr.. Brown
was named in earlier testimony as
an executor of the estate and his
stock dealings with Mr.. Bagley were
shown to have Melted Mr.. Brown a
small profit in 1928 but losses in
1929.
Chairman Black then directed the
questioning toward Mr.. Browns
knowledge of men who we're at
tempting to get government con-
tracts of various kinds.
Mr.. Bagley was shown to have
been interested in the Bruce COM
pany. selling flooring, and the
Henry Klein Company, selling a
f1ame-resiSting wood. Senator Black
asserted that the Klein company
obtained two $780, 900 contracts
with the International Mercantile
Marine.
Mr.. Brown said he did not know
of the transaction.