Show SHUE REVEALS SMOOT AI AID l Western W es t ern Air A- A lr Head II d Says S. S If I t t Son of Solon Received 1 Action Pay to Expedite r T I I- I i k 1 wf J 4 tl ii A V I Harris Barris M. M Hanahue I for Bill for for Services Cut to t 2500 v Jt Jo i f 1 DECISION i tt Fess Fess' I Son Also Brought t IO F Probe Probe Testimony p I W WASHINGTON March Mah 1 1 SV-i SV Richard Whitney president of the New York melt was wu asked today oday to prod produce ee ce for foe the Ule senate Jemie banking committee th the market recOrds on en abort hort tales we f la 11 aviation tocks stocks Just Jast before can cin cancellation 1 of ot the airmail contracts The was u lJ made de by bT Sena Sena- tor br Kean Rean IL s. N. N J. J alfer Whitney Whit Whit- ney disclosed the t ek in market had bad Investigated the short abort we There have been reports of Ie leaks b 0 on 1 the cancellation of the ibe airmail contracts By fly CHARLES CHARLES- O. O GRIDLEY Washington z t. t WASHINGTON March 1 l How 1 How Ernest Er nest W. W Smoot youngest on on-cf on of for foIe mer mer S Reed Smoot Ji of Utah sold the company on the Idea a that he be could expedite i a comp comptroller generals general's decision which the company wanted was reluctantly related today to senate investigators by Harris M. M p esi president ent of ot Western Air ir Express He revealed d that young yount Smoot had s submitted bill for for tor servi services rendered render d but aid h he had bad been beers p paid ld only 2500 NJ Nane tI B In InThe Th The name name ot of Joun moot Smoot WaS w again brought into the he hearing wh when n Chairman Black sought ought to learn from Hanshue why h he was employed by James Jarnes G. G Woolley former vice prest pres- dent of Western Air Express in the the- fa fall of 1930 Hanshue emphasized that Smoots moots employment was by Wo Woolley Inot not by Western Air but finally con can con conceded ceded that fOi if ii he v. v was wa employed at it atalL atall all alL it must t have been by T. T W. W A. A Smoot said he would get his father er erto to write writ a letter to the comptroller r general about our bid Hanshue said laid Testimony yesterday h had d been th that thit t both young Smoot and his fath father r urged Comptroller General J. J JR R. R McCarl Mc Mc- Carl to approve the T. T W W. W A A. A bid f forthe for forthe r the middle transcontinental route which was considerably higher than the competing bid of United Aviation comp company ny Emp Employed oyed by Agency Arency Ha Hanshue went on to explain that Smoot had been employed by an n agency organized by Woolley and called News Alliance which was w to distribute publicity and that Woolley y had bad p paid ld him the 2500 he received d for his w work rk You knew V from your conversations conversa with Woolley and Smoot and arid from letters that passed that the sole solo purpose purpose of ot S Smoots Smoot's oot employment was to get a faVorable decision from the comptroller general didn't you your you asked Black Well Td say to expedite it I dt dont don't nt think can anybody do much with the tho comptroller general to him hint But you were we're willing pay this money to expedite the decision Unable to Answer Hanshue said it was his impre impression Sion that the 2500 was not paid until a decision de do de favoring the T. T W. W A. A d b had Jad been rendered by McCarL McCart He lie wax was answer a question by Balck whether the money was not paid the tho very day after the first opinion was W s given by McCarl holding that tl the tho tholow low bid need not be accepted L Earlier in n the tha hearing bearing Blacks Black's sleuthing instincts were roused by bya by a paragraph in a memorandum Han shue sent William P. P his f former counsel who was found guilty of ot contempt by the senate and s sen sentenced en to 10 days in Jail at the same time Hanshue was acquitted of the same charge Influential In Politics r This memorandum sent after tho tha transcontinental contract had been obtained by T. T Ss W W. A. A stated that the board of directors of Western Air Express Express' also feel it was through friends of ot Western Air Express who are influential in politics that it was po possible ble to secure the award of this Continued on P pue pae e Two iwo Ot HANSHUE TELLS OF SMOOT SPOT AID Western Air Head Stays Says Son of Solon Was Paid to o H Help lp Continued from tram Pace Face One contract and its approval by the gov- gov Among Amon the influential friends of his company Hanshue mentioned Harry Har Har- Hary ry y Chandler publisher of the Los An geles Times George Young publisher of f the Los Angeles Examiner the late F F. F G. G Bonfils owner owner of the Denver Post and Henry M. M Robinson president president dent of ot the Security First National Bank of Los Angeles William A A. A Garland vice presIdent of oc the company was the only officer credited with political influence by Ly The witness said he had omitted a salary of at received In m 1930 as president of General Aviation corporation corporation cor cor- from his reply to a questionnaire questionnaire question question- asking a complete accounting ot of o all aU salaries bonuses and expense payments pay ments meats because I thought you w were re only asking about air transport com com- panics General Aviation is a holding corporation cor con The name of a second U. U S. S senators senator's son was mentioned when Black asked about the appearance of Lehr Fess Foss son of Senator Simeon D D. D Fels o ot of Ohio as attorney tt for air transport interests at a hearing in the postmaster ter er generals general's office February 16 1931 to o suggest a formula for apportioning airmail routes He was scarcely more mor than mentioned however Hanshue Hanshu definitely said aid that Foss had not attended attended at at- tended ended the earlier meetings of th the aviation company officials In May and June Tune 1930 upon which Postmaster General Farley based his charge o of collusion in canceling the airmail contracts General Motors 1 Control North American Aviation Holding company which owns a controlling interest in the Los Salt Angeles Lake Lak City line of Western Air Express is In turn controlled by General Motors Motor corporation which has large interests in several other major operating com panics it was brought out by Senator Senate Pat McCarran D D. Nev How did that concern come to control control con con- your line running between Los Lo Angeles and Salt Lake City asked McCarran W Well they have been buying stock over ver a a period of two and a half years Hanshue replied They be began m to acquire acquire ac- ac quire control after the thc trans transcontinental tal tai contract had been let to T. T W. W A. A Postmaster General Brown Drown acted as arbitrator In fn deciding that Western Air Express should be paid by y T T. W. W A A. A for tor its Alhambra airport airport air- air port ort at Los Angeles after it it had demanded demanded demanded de de- Hanshue said The Thc president of Western Air Express Express Ex Ex- press which merged with Transcontinental Air Transport to form T T. Si V. V A. A against the wishes of its om cars cers in order to get a CO coast to airmail contract asserted before the committee that former Postmaster General Brown indirectly forced him to do other things he did not favor tavor In order to carry airmail between El EI Paso and Albuquerque over over a route subleased from American Airways to o which the contract had been let Hanshue said that Western Air Express Express Express Ex Ex- Ex- Ex press had to sign an agreement pledging ing ng that it would make no better rate schedules or speed from El EI P Paso o to Los Angeles Angelet than were specified over the American Airways s 's line between the same points The penalty stated in n the agreement for tor violation was loss IOS of the subcontract by Western Air Why did you sign such an agreement agreement agree agree- ment menU asked Senator Hu Hugo o I I. I Black D. D Ala chairman of or the investigating ing committee Only Recourse That was the only way I could gc get that route sublet to us said Han Han- shut shue Who attached those conditions to it American Airways And who approved it Postmaster General Brown Hanshue added that that Brown Brown told him h he had to agree to that before th the contract could be let to American Airways Air ways with the understanding it would be sublet to Western Air Express Truck Contract Under Inquiry WASHINGTON March 1 A F P A contract under which a prominent lobbyist lawyer-lobbyist was to have received and further commissions i if he obtained large motor truck contracts contracts contracts con con- tracts from the war department was under investigation today as th the grand Jury prepared to call new wi witnesses wit wit- nesses next week Investigators arc are said to have been bee informed that the fee was t to have rewarded the lawyer for havIng havin an associate lobbyist active in th the American legion seek a department contract for a Chicago motor true truck k firm Discovery of new documentary ev eve evi dence Bence of an undisclosed nature bu but t apparently of great importance to th the e grand jury inquiry has resulted in a an n intensification of the search for tor Fran Frank k E. E Speicher tire agent who disappeared d disa from a local hotel on the ev eve e of af the grand jury hearings |