The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-12-04
WAR MAKERS
BUSY IN 1908,
NYE CHARGES
Anticipated Clash, Formed
European Sales Force,
Is Accusation.
TAX AFFIDAVIT is CITED
Colt Company Chief Denies
Part in Pre-ConfliCt
Activity.
TAX AFFIDAVIT is CITED
By United Press

BIZ United Press
WASHINGTON. Dec. 4-Ameri-
can arms manufacturers anticipated
the World War as early as 1903 and
organized large sales forces in Eu-
rope to obtain orders, Senator Ger
aid P. Nye Or, N. d. charged this
afternoon at the Senate's sensa-
tional munitions inquiry.
Senator Nye, chairman of the spe-
cial Munitions Investigating Com
mittee, read a statement filed with
the United States Internal Revenue
Bureau by Benedict w. Holden, at
torney for the Colt Patent Firearms
Co., telling of preparations for a
sales campaign abroad.
I'VE knew a tremendous conflict
was brewing" Mr.. Holden wrote.
An effort was made to determine
whether Colts contracts with the
United States Government for de-
liveries to the British navy were
made before or after beginning Of
the World War in 1914.
Memory Fails Witness
Samuel M. Stone, president of the
Colt company. said he did not know.
Mr.. Stone. grouped with Irenee
du Pont and H. F. Beebe, the latter
representing the Winchester Re
peating Arms Co, sat at the wit
ness table and was questioned about
his firms anticipation of the World
War.
Mr.. Stone said he went to Europe
in 1909. but insisted he took no part
in creation of Colt European sales
organization. He testified it was his
impression that some automatic
pistols" were sold to Russia before
the war. but he was vague about
other reported European pre-war
business.
Du POnt Denies Increase
Senator Nye charged that Amer
lean companies had knowledge OF
an armament race" abroad sew
eral years before hoStilitieS began.
and that huge profits were antici-
pated from sale of rifles, pistols and
other small arms.
Mr.. Stone aScribed his company's
greatly increased business previous
to the World War to replacement of
revolvers by the automatic pistol.
He refused under Chairman Nye's
persistent questioning to agree that
Colts promotional efforts were TO
gain a part in an anticipated rush
of business growing out of an arma-
ment race.
Irenee Du Pont, Delaware pow
der merchant, interrupted to de-
clare that the Du Pont Company
felt no increased business prior to
the war.
LAS a matter of fact" he said.
"our business was almost dead be-
fore 1914.
Quotes Stone Affidavit
"It's a peculiar human quirk that
makes people think they are capable
of anticipating events before they
happen. I've had people tell me
they knew the 1929 stock market
crash was coming, but they certain
" didn't act like it at the time"
Senator Nye introduced into evi-
dence an affidavit made by Mr..
Stone on Jan. %, 1926, in connection
with a tax case.
In that document Mr. Stone de-
scribsd trip to Europe in 1908 and
said that he knew then there would
be a greatly increased market Tor
our goods in the near future.
Mind Remains Unchanged
There we're Indications he said,
Europe was preparing for a great
war"
Were you not preparing for five
years or more for a market you felt
very confident was going to exiSt?'
Senator Nye asked after reading the
affidavit.
I snail have to rest on the am
davit." Mr.. Stone replied.
Has anything happened to
change your mind since then?" Mr.
stone heSitated.
II believe not" he finally replied