Evening star., 1947-06-10
May Arranged Talks
With War Officials,
Carson Tells Court
By Robert X. Welsh


Henry M. Carson told in Dis
trict Court today how former
Representative Andrew J. May
arranged several War Depart
ment conferences when high
Army officials professed to have
no jurisdiction in a Govern
ment freeze" on Carson COM
pany funds in September, 1945.
The witness declared these diff
culties occurred soon after a
Senate committee began investi-
eating the company's profits.
Nearing the end OF direct
examination, Carson declared he
heard unofficially at the time that
the War Department freeze on
100000 due the Erie Basin Metal
Products, Inc, resulted from the
Congressional inquiry. He testl-
fed, however, that former Senator
James M. Mead, of New York, then
chairman Of the Senate War In
vestigating Committee, and Com
mittee Counsel George Meader said
they knew nothing about the War
Department withholding of funds.
Cross examination of Carson
was expected to begin later this
afternoon. Henry and Murray
Carson and May, former chairman
of the House Military Affairs Com
mittee, are fighting Government
charges that they conspired to de-
fraud the United States through
payment of more than $50 900 in
bribes to May in return for war
time services.
Conferences Arranged.
Carson explained how May
when told of the freeze order
arranged conferences for him with
Robert P. Patterson. then Under
secretary of War and now Secre-
tary, Kenneth Royal, present
undersecretary, and other high
ranking War Department officials
He declared that the freeze order
not only prevented Erie Basin from
paying its employees and subcon-
tractors, but also threatened its
peacetime reconversion program
The War Department tied up the
money, he explained, to make GER
tain that the Government would
be reimbursed, If necessary, by any
amount found due by the company
as excess profits.
After describing how he got no
where" with Army officials in the
Chicago area, Carson said he came
to Washington, but was shuttled
back and forth between various Of
fees in the War Department. He
told May of his difficulties and the
House committee chairman then ar
ranged the various conferences.
One such conference with Mr.. Pat
terson took place in Mays office,
Carson recalled.
Freeze Order Still in Effect.
Despite the numerous meetings
he had here, Carson said, the
freeze order is still in effect and is
the subject of litigation in Federal
court. Carson is no longer con-
nected with Erie Basin, He testi-
fed that Chemical Warfare Service
officers admitted" that the money
frozen by the War Department
order in September, 1s45, was far
in excess" of any amount that Erie
Basin might eventually have to pay
the Government in connection with
excess profits. But he was told by
those officers, he said, that they
could no nothing about it.
Under questioning by his chie1
counsel, Charles J. Margiotti, Cars
son denied yesterday he con
spired" with May or any one else
for pay or otherwise, to obtain ar
Army-Navy "E" Award in 1945. fol
the Batavia Metal Products, Inc.
another Illinois affiliate.
He said he happened to be in
Washington and dropped in to say
hello to May. The subject of the
"E" Award came up in the converse
tion and May voiced surprise that
the scheduled award had not been
made to Batavia. Carson testified.
When informed the matter had been
delayed somewhere in the War De-
partment. May promised to obtain
information about it, the witness
said. Carson added he had no
personal knowledge that May tele-
phoned Mr.. Patterson, as Mr.. Pat
terson testified several weeks ago..
Court Rebukes Margiotti.
Mr.. Margiotti drew a sharp re-
buke from Justice Henry A. Schwein-
haut when he persisted in asking
what Justice Schweinhaut regarded
as leading questions.
The main setback came when he
was prevented from introducing
COPY of speeches made by May and
Carson at the ''E'' Award ceremony
at the Batavia plant in May, 1915.
Mr.. Margiotti said these speeches
would help prove the company got
the award on merit and without any
intercession by May. He also said
he wanted to have phonograph
recordings of the speeches played
In court.
"I reject your offer" Justice
Schweinhaut said
II think" Government Special
Prosecutor William A Paisley COM
...-&a5 stbot tho i,Iry will have IN