The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-02-06

1lIlU1IISS VI UIIS SpSCldI SSIldIS
"Our investigation is COM
parable, if not greater than
the Teapot Dome inquiry"
said Senator Pat McCarran
(Dem., New, a member of
the committee. 81 predict
that before we get through
the results of our investiga-
ton will have greater affect
than those of the oil scan
dals."
Meanwhile, a former little cabi-
net" officer under Herbert Hoover
and three officials of major airline
companies awaited hearing Fri
day on charges of contempt of the
United States senate.
They were William P. Mac
Cracker Jr., former assistant secre-
tary of commerce for aeronautics,
Harris M. Hanshue, president OF
Western Air Express; Gilbert Civ
vim, Mr.. Hanshue's secretary, and
Colonel L. H. Brittin, vice-president
of Northwest Anyways.
Secret agents of the justice de-
partments criminal investigations
bureau have been engaged in inten-
sive study of testimony taken by the
senate committee. 1t was under
stood the scope of their inquiry
would depend largely upon the out
come of the contempt proceeding.
Never before has the senate acted
as quickly in ordering contempt
citations as it did yesterday when
Senator Hugo Black Dem, AlaO,
chairman of the investigating COM
mittee, stated his case against Mr..
MacCracken and the airline officers.
Senator Black charged that the four
men were involved in removal and
destruction of correspondence,
which had been placed under SEN
ate subpoena in Mr.. MacCrackenS
law offices.
Black Charges Fraud
Senators and representatives oc-
cupied all available seats in the
chamber and spectators crowded the
public galleries while the southern
Democrat directed q bitter attack
upon former Postmaster General
Walter F. Brown and Republican
administration of federal mail con-
tract awards. Mr.. MacCracken and
his attorney, Frank j. Hogan, sat IN
the first row of a reserved gallery
and held whispered conferences as
Senator Black denounced Mr..
Browns policies.
Contract awards were made col
lusively, fraudulently and upon a
rotten foundation" Senator Black
shouted. He charged that Mr..
Brown violated the law by owning
stock in companies having an inter-
est in air lines.
The senate will devote its entire
session Friday to the MacCracken
case. Counsel for the four defend
ants will be permitted to deliver
arguments and submit briefs. On
the other hand, every senator will
become a judge for the day, having
the privilege of asking any number
Of questions.
In the event the senate should
find the four men guilty Of con-
tempt and turn the matter over to
the United States attorney, punish
ment in the courts might be fixed at
imprisonment of from one to twelve
months and a fine Of from 500 to
$1,000
Coast Official Testifies
William E. Boeing, Pacific coast
airplane manufacturer, told the
senate committee today that he
realized potential profits of $685.
464 in 1923 from an original invest
ment of $3.50.
He said he bought 4,319 shares of
Boeing Air Transport Company
stock in 1927 for cents share. He
traded those units for 54,972 shares
in the United Aircraft and Trans
port Corporation. The United stock
opened on the exchange in Deem
Der, 1923, at SGT per share.
Chairman Hugo Black of the
committee said the total investment
in the Boeing company was $3.50.
The company obtained mail con-
tract from the postoffice department
in 1880, and made net profits in the
year amounting to SLAB, 306.
Black said the $3.50 company de-
clared a 81, ,234 stock dividend
and a $4,000 cash dividend the
same year.
Not a single dollar ever went
into that company to increase its
assets" Senator Black said, except
that money which was received from
the Y1oSt0ffice deuartuent