Evening star., 1935-04-02
TESTIMONY LINKS
BARUCH ANDF|RM|
Head of Company Claims
Witness Was Interested
in New York Company.
BY the Associated Press,

By the Associated Press.
Testimony that Bernard M. Baruch
was once interested in. New York
Ship Building Corp.-contradicting
the financier's recent denial-was
given today to the Senate Munitions
Committee
Lynn H. Korndorff, president of the
Federal Shipbuilding g. Drydock
Co., told the committee he had in
formation that Baruch was interested
in the New York corporation and con-
firmed letter he had written August
4, 1888. giving the same information.
Il am reliably informed" said the
letter, addressed to w. A. Irwin. preSi-
dent of United States Steel Corp,
that Mr. Baruch and his associate.
Mr.. Ben Smith. are interested in the
project.
This is quite interesting in view of
Mr.. Baruchs reported relations with
the present administration"
Bardo to Be Recalled.
Earlier, the committee said Clinton
L. Bardo. former president of the New
York Shipbuilding Corp. would be
summoned for questioning Friday re-
earding activities in 1888 and 1884
despite his refusal to waive immunity.
The Federal Company is a subsid-
iary of United States Steel.
Korndorff told the committee he
could not recall where he received
the information regarding Baruch's
asserted interest in the New York
Shipbuilding Corporation at a time
when large Federal appropriations for
naval building were being made from
P. w. A. funds.
On the stand last week, Baruch de-
clared he had bought no stock in the
corporation. He told the committee
that Smith, we'll known Wall Street
operator. had sought to sell him 5000
shares in the New York corporation,
but he had refused to take it because
Of its interest in Government business
Cord Linked by Testimony.
Earlier evidence before the commit.
tee said E. L. Cord bought a half in
terest in New York Shipbuilding in
1888. with Smith and Tom Bragg, an
other Wall street operator. owning the
other half. The two operators were
reported on the Board of Directors by
Gene Tunney. former world heavy
weight champion.
Further correspondence was intro
duced by the committee to indicate
that Assistant Secretary Roosevelt OF
the Navy, favored building a larger
percentage" of naval vessels in private
yards than In navy yards
In letter to Irwin, United States
Steel president. Korndorff wrote or
September 20, 1884, that the Assistant
Secretary had been to the Federal
plant and seemed quite impressed
with what he saw of the plants
facilities.
He expressed himself" the letter
added. las feeling that the Navy
would be better of and would get bet
ter ships if they were in a position to
give a larger percentage of their work
to the private yards because of the
more varied and wider experience of
private yards due to their handling
merchant as well as naval work.
COllusion Is Denied.
"As a matter of fact, the designs for
practically all the ships being built
in navy yards today are being devel-
oped by the private shipbuilders.
Korndorff denied there was collusion
among the yards in bidding on naval
work.
On the other hand, he told the COM
mittee the smaller yards, including his
own. were forced to stiff competition
to get naval business and had as well
to face adverse propaganda" he as
serted was put out by the larger yards
to block smaller competitors.
Officials of the Bath (Me) Iron
Works, a smaller shipyard. are ex-
pected to testify tomorrow.
Meantime, the committee made ready
to give out late today the first draft
of its proposed legislation for taking
the profits out of war.