Evening star., 1946-07-16
War Profits
Continued From First Page

L c.
amount for gifts and never revealed
who got them.
There was An executive conference
every year and an amount to be
spent on gifts was agreed on, Cell
man explained.
Matter of Good Taste.
Did you discuss how much would
be allowed for each gift?"
The witness did not recall. but said
the average amount to be spent was
expected to be reasonable and with
in the bounds of good taste.
Was there any discussion of
whether one man deserved a case of
whisky and another perhaps half
a case and third may be only a
quartz Chairman Mead asked
Perhaps his capacity was con-
sldered.' Gellman replied.
Questioned further, Gellman said
1t was quite possible the Illinois
Watch Case Co, one of his concerns.
had sent expensive compacts and
vanity cases for the wives of Wash
ington officials. Such case might
retail for $50 to SIS, he said.
Earlier Chairman Mead COM
mented that Henry M. Carson,
promoter of the munitions combine.
might as we'll have shown the War
Department the Brooklyn Bridge
and tried to sell it as what he did
when he got his first contract.
Senator Mead referred to evidence
that Carson had an Army ordnance
officer shown through Brooklyn
plant owned by Louis Segal, to which
Carson had no claim whatever. The
plant, according to the record, was
represented as the place where Erie
Basin Metal Products, Inc. a corp
Grafton not in existence at that time
would make munitions.
Officer Taken on Lark"
The man from the War Depart
ment," said the chairman. might
AS we'll have gone out and looked
at the Brooklyn Bridge and been
told by Carson it was for sale. The
ofhcer was taken on a lark"
Gellman, who furnished what
capital was put into the Carson
corporation and who with his
brother-in-law. Joseph Weiss. was
an established Illinois machine
manufacturer before the war, en-
phaslzed to the committee that he
had nothing to do with Garsson's
activities in the East before Erie
Basin was incorporated.
The witness had objected to the
term '1etterhead corporations" In
connection with the Weiss-Gellman
interests,
Wouldn't he call Erie Basin
letterhead corporation, asked George
Meader, committee counsel, when
the evidence showed it was repre-
sented TO the War Department as a
going company three and half
before it even was incorpo-
rated?
If it was letterhead corpora
ton Gellman replied, and I don t
say it was because I'm not in posi-
ton to sav-then the Gellman-
Weiss interests had nothing to do
with it."
Thought Corporation Was Real.
But you knew a letter of intent
had been issued to Erie Basin by the
War Department for war con-
tract?"
Yes" said Gellman, but as far
as l knew, 1t was real corporation.
Gellman added: Il understood 1t
did have such a plant in New York
l was told it had-I didn't see it."
Mr.. Meader recalled that undis-
puted evidence showed Garssons let
ter of October II, 1941, represented
Erie Basin as a company incorpor-
ated in New York, with Louis Segal
as president and Carson as vice
and the Segal Lock Cos
plant in Brooklyn as Eries factory
Erie Basin wasn't in existence
then?" prompted Francis D. Flana-
gan, associate committee counsel.
If that's what the evidence shows
i don't KNOW said Gellman,
Erie incorporated in 1912.
Erie Basin was incorporated in
Illinois February 4. 1912, after Cars
son had obtained his first war con-
tract and gone into business with
Gellman and Weiss
Gellman had told the committee
in a prepared statement that he and
Weiss and their families had a net
worth of half a million before the
war.
What are you worth today?"
asked Senator Ferguson.
Il don't believe it is possible to
give our present net WORTH the
witness replied. because of the nego-
tiations with the Government, the
determination of income tax and
other factors which have not been
decided"
We'll, I hope the Government does