Evening star., 1947-11-21

| prOnt OF S90 ,O0O IN acquiring 94,ooo,-
900 in Treasury bonds on margin
during the war.
There is a continuous line be-
tween gambling and specializing and
investing" he explained. Where
one begins and the other ends, I
don't know and I don't believe any
body knows
Earlier today, when questioned
about loans he said he made to
Lamarre in 1910, Gen. Meyers said
he had no notes or little black book
records" because it had always been
his custom to lend money to
friends" without asking notes. La
MARIE has testified the payments
to Gen. Meyers beginning in 1941
were not only loans but salary kick
backs"
Denies Capitalizing on Contracts.
/ Gen. Meyers heatedly insisted that
he had no plans to cash in on Gov
ernment contracts when he helped
set up Aviation Electric Co. in 1910
for my girl friend"
And he never got any money
from the company except repayment
of loans. he insisted.
Lamarre has testified the general
got more than $150,000 from the
profits on those contracts.
Lamarre is IS and his wife is
younger. The 52-year-old general S
story was that the husband acqul-
esced to his affair with Mrs. La
mare.
Lsmarre told reporters who turned
to him after the generals testimony
that he could not comment, that he
was under instructions" to make
no statement
: Documents Requested.
Senator Ferguson began todav's
session by asking Gen. Meyers for
any records or documents to sup
port his claim that $4,000 he ac-
knowledged receiving from the COM
pany was repayment of loan to
the Lamarres.
The general replied that letter
from Lamarre on last September 27
after the Senate investigation
started-confirmed the $4,000 loan
and repayment.
Senator Ferguson said this letter
vas deserving" Committee Coun-
sci Rogers broke in to note that
Lamarre testified this was "phoney
letter" which Gen. Meyers asked his
former business associate to write.
Mr.. Rogers asked why the general
was seeking written data about 1940-
As transactions in September, 1947,
after the company had been liqui-
dated.
| Gen. Meyers insisted that the
committee inquiry had nothing to
do with it whatsoever. He said
! Treasury tax agents had asked him
to supply the data.
Asked About Bell Orders.
Mr.. Rogers then asked about
earlier testimony by Lawrence Bell,
president of Bell Aircraft Corp, that
Gen. Meyers had recommended
Aviation Electric for a subcontract
from the Bell company.
Most of the company's business
and profits came from Bell subcon-
tracts.
Gen. Meyers said that he would
not dispute Mr.. Bells testimony but
added that other companies than
Aviation Electric also had been rec
commended to Mr.. Bell by other off,
GERS.
! Senator Ferguson expected to enc
the current hearing on completion
of Gen. Meyers testimony. The for
mer Air Force officer declared yes
terday he had established the Day.
ton firm for the benefit of Mr.. and
Mrs. Lamarre with the understand
ing Lamarre would head it.
| IT have to admit that Mrs. La
mare was my girl friend from
about 1896 until 1940," he stated,
adding this situation had La
mares knowledge, approval and
acquiescence."
That, he said, sis the whole story
of the Aviation Electric Corp"
Repeats Explanation.
Gen. Meyers offered his startling
explanation, which he had given
newsmen confdentially at a press
conference several days previously
with this preliminary statement:
Il am afraid that I have to drop
TO new low-even lower than the
accusations that have been brought
out against me in this hearing. !
90 this with great hesitancy and
great reluctance, but I see no other
way to bring out the whole truth