Evening star., 1936-09-21

one OF prSt companies TO come
under scrutiny ,OGs RdillOdy Audit
& Inspection Co., engaged in pri-
Udte detective iDork in industry.
OFFICIALS of concern refused to make
records available and then Jailed
to appear Dhen summoned before
committee on August 21.
Legal action tOas instituted
against officials and part of desired
records Dere sdluaged from traste
paper baskets.
Acting at the request of the Senate,
the District grand jury today indicted
six officials of the Railway Audit e.
Inspection Co., Inc, for failure TO
lette Committee investigating civil
liberties violations in industrial dis
putes.
Shortly before the jury reported,
Chief Justice Wheat of District Court,
acting on motion of Railway Audit,
dismissed its injunction suit to re-
strain the Western Union and Postal
Telegraph Companies from complying
with subpoenas to produce from their
files the concerns messages. Attorney
Alvin L. Newmyer, representing Rail-
way Audit, informed the court the SUBJ
poenas had been withdrawn.
Hearings to Be Resumed.
Pressure on the company will be
continued tomorrow as the committee
resumes open hearings for the first
time since August 81, and directs its
attention again to the mutilated rec.
ords of the railway company, rescued
from their waste paper baskets. Agents
of the committee and employees Of the
company expected to testify.
Those indicted were w. w. Groves,
president of the concern; w. Boone
Groves, vice president; James E. Blair,
secretary-treasurer, and J. C. Boyer,
all of Pittsburgh; L. Douglas Rice,
vice president and general manager
of the Philadelphia Office, and Robert
S. Judge of New York. They had been
cited to United States Attorney Leslie
c. Garnett for 'contumacy."
Each was charged in a separate in.
dictment of two counts. The first all
legged that they "willfully, knowingly
and unlawfully" failed to appear at
the scheduled hearing in response to
subpoenas, and the second that they
did not produce the records called for
in the SummonSes.
Carries Jail Term.
The offense charged is a misde-
meanor punishable by fine Of from
$100 to $1,000 and Imprisonment of
from to II months. Thus. convic-
ton carries Jail sentence, which
may be suspended, however, in the
discretion of the judge.
Officials said they expected that
attorneys for the industrial service
firm officials would make arrange
ments shortly for their surrender and
release on bail.
The injunction suit dropped today
was brought last week by Railway
Audit, the Central Industrial Service
Co.. and IL of their officers and en-
ployes. Justice Joseph w. Cox or
dered the telegraph companies to show
cause why a preliminary injunction
should not be issued.
This morning, however. Western
Union and Postal answered, saying
that they were notified Saturday by
the La Toilette Committee that the
IoI lal
John J. Abt. committee counsel,
agreed to dismissal of the suit.
Committee policy in this instance Is
consistent with their action when
subpoenas were withdrawn for certain
company books after company officials
had sought an injunction. At that
time committee representatives made
it plain that they would concentrate
upon efforts to obtain Jail sentences
for the recalcitrant officials rather
than become involved in court battles
over obtaining records.
With about 800 subpoenas out for
records or individuals, the committee
plans to continue public hearings from
tomorrow until a basis for their re-
port to the Senate is established. .
To this end, officials of the Ma
tional Corporations Service have been
summoned to appear Wednesday. On
Thursday the committee will hear wit
nesses for the Lake Erie Chemical Co.
and the Manville Manufacturing Co.
On Friday appearances are scheduled
for officials Of the Pinkerton Detec-
tive Agency.
The determination by the La Fol-
lette Committee to investigate Railway
Audit followed charges by labor lead
ers at preliminary hearings last Spring