Evening star., 1946-07-17

In Missing Documents
OF War Profits Case
Chairman Mead of the Senate
War Investigating Committee has
been complaining that the hearings
into the Carson munitions empire
have produced "a series OF mysteries
involving the disappearance Of
papers"
A check-up shows at least half a
dozen documents and nearly as
many persons have turned up either
belatedly or not at all as the hear
ings have progressed.
Here are some of the documents
Chairman Mead was referring to:
l. The letter from the New York
Office of the Chemical Warfare Serv-
ice to the Chemical Warfare Service
here reporting that Henry Cars
son had no plant at the time he
sought war contract. The letter
was dated February %, 1912. About
week later, according to the testi-
mony, Mr.. Carson got his first
contract.
Found Year Later in Files.
Brig. Gen. Paul C. English, retired,
former chief of the Chemical War
fare Service industrial division, has
told the committee, if he had ever
seen that letter, the contract would
never have been signed. He said
the letter should have gone to him.
War Department officials have testi-
he'd the letter turned up year and
a half later in the files.
2. A reported statement from
Louis Segal, president of two lock
companies, on which the revealing
letter was based Segal was, list
ed on the letterhead of the then
non-existent Erie Basin Metal Prod
uctS Co. as its president. AS far as
the Committee can find out, the
Segal statement has never been
found.
3. The minutes and stock records
and certificates OF the New York
Erie Basin Co. Committee aides
say these were supposed to have
been turned over to the Cell
man-WeiSs interests as considera-
ton for one third interest in Erie
Basin at Elgin, Ill. Allen Gellman
and his aides have told the Commit
tee the only document they have
from New York Erie Basin is a
single letter showing the resigna-
tions of the New York directors.
Lumber Firm Records.
A. The books and records of the
Cumberland Lumber Co., of which
Chairman May of the House Mill
tary Affairs Committee was reported
to be Kentucky agent. Joseph Free
man, Washington agent of the Cars
son enterprises, has testified he
recalls passing on a sealed envelope
to Henry Carson in which he as
sumed were the records. A commit
tee spokesman said he had been told
by Carson that he didn't have the
records.
S. The rejected surety bond on
which the Government advanced
nearly 81 100000 to Erie Basin. When
the Chemical Warfare Service
couldn't find the bond attached to
the Erie Basin contract, the Com
mittee was told at first that it was
lost. Then it turned up in the dead
files of the Chicago Chemical War
fare Service procurement Office in
st. Louis.
Principal mystery here is why the
bond, described as faulty by the
Judge Advocate Generals Office,
never got back to the Illinois Watch
Case Co., which had made the guar
antee. Gellman's aides have tes-
tilted they didn't know until yester-
day that the bond was rejected.
Credit Report INDICATED.
6. The credit report on Henry
Carson prepared by the New Yorker
Hotel credit department giving
Carson clean bill of health finan-
cially. Leo Stone, Erie Basin counsel
who told the committee about the
credit report, said he had been un-
able to locate it, and the New
Yorker told him it had no copy. 1t
was mainly on the basis of that re-
port, Gellman has testified, that
the Gellman-Weiss interests were
linked with the GarsSons.
7. The alleged transcripts of tele-
phone conversations between the
Washington and Chicago Offices of
the Chemical Warfare Service. Al
bert Jacobson, until recently acting
legal chief of Chemical Warfare
told the committee he thought there
should be some transcripts, but he
couldn't find them.
AS for the persons who have
failed to appear. committee aides
cited first Murray Carson, Henry
Garsscn's brother and another key
figure in the Carson munitions en-
pire, who is in Cuba repeatedly re-
cuperating from severe illness.