Evening star., 1946-07-03
that was where the Erie Basin Corp

!
would manufacture the shells.
Somebody misrepresented tn,
situation" Senator Mead comment
ed. You can't produce with [:
corporation that's only a letter
! head
! DR.. Carson, according to testi
mony, sought the contract late il
January, 1912, Evidence has indi
Gated that Erie Basin Metal Prod.
ucts was incorporated in Illinois OF
February of that year. Mr.. Sega
said it never had any connection
with his two companies. DR.. Cars.
son was listed as a director of tht
Illinois company.
Sought to Help Friends.
1t was brought out yesterday tina
Representative May telephoned Nal
Gen. L. H. Campbell, jr., their chic
of ordnance, asking that an 'equa
chance" on war contracts be giver
DR.. Carson and his brother, Muir.
ray w. Carson. also an officer o,
| the Erie Basin and affiliated com.
panies in Illinois. Mr.. May was re-
ported to have told Gen. Campbell
These fellows are good friends o1
mine and have been very kind to me
In the past about some things, ano
1 want to help them if I cam
Mr.. Segal was reluctant to crit
icjze DR.. Carson for his alleged
representations concerning the
Segal plants and the mythical
Erie Basin corporation. The wit
ness said he had no specific recol-
lection that DR.. Carson ever was
authorized to negotiate contracts
for the Segal Lock g. Hardware
Co. or the Norwalk Lock Co., al
though there was a possibility that
he had been informally.
Did you authorize Henry Cars
son to write letter to the War
Department saying the Erie Basin
Metal Products Co. was a subsidiary
OF your two companies and that you
were president of all three?" the
witness was asked.
Obviously l could not have" Mr.
Segal replied There was no Erie
company at the time"
Can't Recall Authorizing Offer.
Did you authorize DR.. Carson
to make an offer to the War Depart
ment to manufacture shells at your
plants?'
Il can't recall that I did, said
Mr.. Segal.
Did you know" asked Senator
Ferguson, Republican, of Michigan
that he was using your stationery
and representing to the Govern
ment that the Erie Basin Co. was a
subsidiary of your companies?"
Mr.. SegaI said he did not recall
that he did know that.
A high point of yesterdays ses-
sion was the appearance of Sam
R. Beard, who described himself as
a Washington gambler. Beard. who
told the committee he served two
penitentiary terms, one for violating
the District gambling laws, the other
for income tax evasion, said he
caShed cneckS for some OF the COM
panies under investigation, totaling
SAC ,942.70. The checks were cashed
as favor to friend. the late AL
bert Levin, local attorney, Beard
said.
One check. Beard testified. was
made out TO M W. Carson and the
others to Joseph F. Freeman. who
also was an officer in some of the
combined companies.
Beard, questioned by members of
the committee, said his business was
gambling
The witness explained that he
knew nothing about the checks ex-
cept that his friend wanted them
cashed.
May Delays Comment.
Mr. May, leaving for Kentucky
last night to keep July 4th speak
ing engagement, refused to discuss
the evidence which the committee
heard yesterday. He confined him
self to saying he would comment at
the appropriate time" without indi-
eating when that might be.
However. a responsible congress
sional officials who would not be
quoted directly reported there was a
strong possibility that Mr.. May will
be invited to testify. He said the
committee already has been in touch
with the Kentuckian regarding the
evidence.
Inspected One of Plants.
Mr.. May said. according to the
transcript placed in the record yes
terday, that he had inspected one of
the Carson plants, and that 1t
looked to me like they had an aw-
fully pretty Setup and are doing an
awful pretty job"
He suggested that Gen Campbell
get in touch with Gen. Hammond
and Jump on him for me-
Gen. Campbell was quoted as say
ing Il certainly will
Mr.. MAY thereupon suggested that
Gen. Campbell telephone Gen.
Hammond Immediately about q
financial advance for the munitions
combine which had been held up.
He asked Gen. Campbell to do this
rather than await meeting
planned by the two officers for the
following week.
Gen. Campbell agreed with "Uh-
huh
The Kentucky legislator was fur
ther quoted in the transcript as sug-
getting that Gen. Campbell advise
Gen. Hammond to cooperate
with DR.. Carson.
Youth Gets Life Term
In EDes' Fatal Bentinn