The people's voice. [volume] (Helena, Mont.) 1939-1969, 1944-08-25
Process-Servers-
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did Union Electric Company make
such secret contributions but also all
of the other subsidiaries of North
American, and that it was done at
the express direction of Williams,
Dulles and other officers of North
American, Sullivan and Cromwell and
of partners in the banking firm of
Dillon, Reed and Company.
Boehm states that the money paid
out for political purposes, was col
lected through secret kick-b backs from
lawyers engaged at fantastic salaries,
from insurance companies, supply
firms and contractors of which the
utility companies were patrons.
He states that the political con-
tributions were made at the order of
his bosses, the officers of North Amer
lean and the partners of Sullivan and
Cromwell, who he charges, told him,
that the Holding Company Act was
unconstitutional, that the investiga
ton was illegal, that any false state
ments made by him to investi-
gators in the Securities and Exchange
Commission would not constitute per-
jury, and that it was not violation
of the law to deny all knowledge of
political activities on the part of the
North American Company and its sub
salaries under these circumstances.
Boehm charges that the bosses also
told him that if he would play along,
they would see that he was taken of.
There are charges made by Boehm
in his suit, reminiscent of disclosures
made at the time of the collapse of
the Sam insult utility empire when
he states:
ut was part of the plan entered
into by said defendants that the
North American Co. and its subsidi-
aries would be caused to issue and
sell vast amounts of stocks, bonds,
notes, debentures and other evidences
of Indebtedness, whether necessary
or not
Such financing would be done ex-
clusively through Dillon, Read & Co.
without any competition whatsoever,
at terms fixed by the defendants, so
that Dillon, Read & Co. would obtain
excessive and unreasonable commits
sions, profits and other benefits, and
so that Sullivan C Cromwell would
obtain excessive and unreasonable
legal fees, profits and advantages, and
so that Harrison Williams would also
obtain excessive, unreasonable and
unlawful profits, benefits and advan-
tages.
''The North American Co. and it's
subsidiary systems during the years
from 1920 to 1941 were required to
issue and to sell to, and through,
said Dillon, Read G Co., bonds, stocks
and other securities in an aggregate
amount in excess of $3.50, 100000 with
out competition, in consequence of
which said Dillon, Read & Co. re-
sale of such securities in excess of
$25, 100000, exclusive of profits and
other advantages, and the clients and
customers of said firm received call
premiums and profits of more than
$25 100000.
1.-THE greater part of these commits
sions and profits were wholly unnec
essary and those which were neces
sary were greatly in excess of what
would have been charged by other
banking firms if competition had been
allowed.
''In connection with the issue and
sale of said securities and in it's rep
resentation of the North American
Company, the defendant law firm of
Sullivan & Cromwell (of which John
Foster Dulles is senior partner) per-
formed services for which it charged
and unreasonable fees of
more than $1,500,O00, exclusive of
profits and indirect benefits.
"By reason of his control of the
North American Co. and its subsidf-
aries, the defendant Harrison Will
liams, through stock market rigging
and other manipulations, and through
pyramiding, holding companies, lat
eral trusts, vertical trusts, INTERIOR
porate deals and other devious meth
DDS made profits exceeding 100000
onou