Evening star., 1941-12-04
S97,405 Paid
Arms Broker
Probers Told
Shunuck Held Due
To Get S91 $50 More
From Same Firm
BY J. A. FOX.


Of Leon K Shanack. so-called de
fense broker" the House Military
Affairs Subcommittee investigating
defense contract lobbying was told
today that the New Yorker had
netted S97 405 10 on ordnance con-
tracts ne had placed with single
concern and stood TO clear s9l 800
more on work still under contract
with the organiZat ion
And there are numerous others
not included" SAID Gordon K.
Miller. investigator for the subcom-
mlttee. Of reputed dealings by Mr..
Shanack with other concerns.
The testimonial continue ton Of
Yesterday y'S-dealt in large measure
with transactions through which
the Remington Arms Co. Of
tracts from the Government. passed
them on to Mr.. Shanack. who in
turn contracted for the work with
the Greenwich Machine & Tool
Co. Of New York
II was on Greenwich contracts
that the large profit figures cited
by Mr.. Miller reputeGlv were made.
testimony being introduced TO show
that dies being turned out by that
company were actually contracted
for by Mr.. Shanack with Remlng-
ton for figure approXimatelv 81
per cent higher than Greenwich is
receiving.
Under Subpoena
Mr.. Shanack, under suboena BY
the committee, was due 10 testify
today or tomorrow but did not show
up this morning A telegram 70
the committee had asked that his
appearance be deferred. and this re-
quest was granted. but there was no
indication when he would come.
Mi Miller had testified that he
had discussed with Mr.. Shanack the
possibility OF his being summoned.
and that the broker had respond
ed that If he was served with a SUBJ
poena he would tear il up"
Well get him later" asserted
Chairman May on emerging from
an executive session which followed
the morning session. He reported
the committee members had dis
: cusSed the question Of whether Mr..
ShanaCk's reported threat to tear
up subpoena constituted sufficient
grounds to hold him in contempt.
The first witness today was Jack
Green of New York. general man.
ager Of the Trans-C Continental Ma
chine Tool Co. which was shown
Yesterday 10 have taken Reming-
ton contracts for shell dies from Mr..
Shanack, and in turn to have passed
them on to the Greenwich Co,
which did the work. For this func-
ton. TransContlnental collected 5
per cent commission.
Shanack Got 20 Per Cent.
He said that between October,
1910. and October, 194l. his concern
had handled contracts aggregating
100000 for the Brewster Aeronau-
tlcal Corp. and the Breeze Corp.
under this same procedure and that
s23,52722 went 10 MI Shanack for
commissions. He explained in an
SVer TO questions BY Ralph Burton,
committee investigator. that Mr..
Shanack was hired by Mario A.
BeSozzi, Trans Continental presi-
dent, because of his sales ability"
When representative Faddiz
Democrat. of PENNSYLVANIA sought
more light on Mr.. Shanacks con-
nection with the company. the wit
ness said that he would say that
he was an employe in charge Of
sales and he could come and go as
he pleased and do anything he
pleased"
The witness was questioned sharp
lv by Representative Kilday Demo-
crat, OF Texas as to the part mis-
company played in letting contracts
from Mr.. Shanack and then turn
ing them over to the Greenwich
company and collecting fee.
You can't give us one element OF
service YOU rendered" the Texan
finally said.
The witness agreed.
1890 Items for $3.50.
Carl Gitzendanner secretary
treasurer of Greenwich was the
first witness whose testimony gave
the committee an idea of specific
profits it is alleged accrued to Mr..
Shanack. He said that his concern
is turning out two lots of dies for
SO 80 each. for WhiCh-aCCordlng 10
Mr.. Millers later testlmOny-Mr.
Shanack is due to collect Sl8 20 each.
This cost. as it was brought back.
will be reflected in the cost to the
Government
Mr.. Gitzendanner said his COM
pany now has sl50,0OO to 100000
Of work on h9nd procured through
the broker" and destined eventual
ly for the ordnance plants at Den
yer and Lake City. Mo
While Mr. GitZendanner was on
the stand he said. under question
ing. that all his firms dealings with
Mr. Shanack had been verbal,
point which Mr. Burton stressed
when the witness testified that after
(See LOBBYING, Page A-6D