The Washington times., 1934-02-19
CEILINGS,
HAZE, SNOW
REPORTED
1--WE Can and Will Do the Job
WeII," Chief Of Service
Promises From Newark

wen, CIlleI Vi SeTVlCe
Promises From Newark
(Continued from Page y
me he had sold this stock"
Senator Black asked:
do you know Mr.. Walter
Ballard?"
eyes, / met him q few times.
He was q friend Of Bagley'S."
"'Was he connected with
Henry Klein and COmpany?"
The witness replied that Mr..
Ballard had some connection with
Q fireproof wood company. Sen
0tor Black said:
"'That was the Klein Com
pany. Did you know he secured
two S5OO,OOO contracts in con-
nectiOn with wood work on the
steamship Manhattan? Did Mr..
Glover help to secure these
OOntracts?"
DIDN'T I-NOW ABOUT IT
II don't know anything about
that"
did you know that Ballard
was employed by the SOuthgate-
Nelson Company when 1t was
seeking . Government con
tEact?"
II didn't know he was en-
gagged in any improper activity"
Senator Black showed Brown
two checks, sent by Mr.. Bagley to
the former Postmaster General.
One $1,000 check dated March
z, 1929, was in liquidation of the
account Mr.. Brown had with Mr.
Bagley, Mr.. Brown said. The
other, for $45, 900, dated January
80, 1929, was for the sale of col
lateral, but Mr.. Brown could not
remember what the collateral was
Mr.. Bagley called on Mr.. Brown
and asked him to "look into" wood
flooring he was selling for the
Bruce company, Mr.. Brown as
serted. He added:
81 told my assistant, Mr.. Har-
old Graves, to make a thorough
test. We selected a committee
Of experts, which went all over
the country and reported the
flooring was sanitary, cheap and
desirable.
Reads to Committee
cit is incOnceivable that the
President Of the United States,
with all the facts before him,
will sanction such . colossal
injustice"
Brown took the oath as a wit
ness, to the accompaniment Of
clicking cameras and whirring
movie machines. He said:
'T have a prepared statement
which 1 would like very much
20 read at the outset"
Senator Black replied:
Heretofore it has been the
policy Of the committee not to
accept prepared statements, but
we will make an exception in
this case"
Then Mr.. Brown read his care
fully prepared defense against the
numerous charges in which his
regime has become involved.
Aim of Subsidies
He pointed out that the pri
mary aim of the ocean and air
mail subsidies was to build up
the merchant marine and com
mercial aviation. On this subject
he declared:
"'The ultimate goal Of the
merchant marine policy is to
maintain under the United
States flag a merchant fleet
capable of carrying our foreign
commerce, by paying to opera
tors Of that fleet, through the
medium of mail SubventiOnS,
the excess due to the higher
standard of living in the United
States, of building and Operat-
ing costs over similar costs in
foreign countries.
"The ultimate goal of the
commercial aviation policy is
to create an economically in
dependent aerOnautical industry
by enabling air transport Oper-
.Ators to recOup in the form of
mail pay their OutOf-pocket
losses while they are building
mp adequate passenger and ex-
press revenues from the public
and are developing transport
fatrplanes capable under COM
.,petitive conditions of earning
their costs Of operation"
Defends His Regime
Then Mr.. Brown entered into
. defense of the mail contracts
he awarded.
He said:
'During my regime as Post
master General 20 contracts
were awarded by open com.
petitive bidding, with the for
NAL approval Of an interde-
partmental committee created
by President Hoover, consisting
OF the Secretary Of Commerce,
Secretary Of the Navy, the
chairman Of the Shipping
Board and the Postmaster Gen.
OraI.
"AlI but one Of these con-
tracts were let to the lowest
responsible bidder whose pro-
pOsal met the specifications.
The one contract which was
awarded to the high bidder was