1936-03-28 — Page 14

THE HONGKONG

SPORTING TERMS EXEMPLIFIED BY

H.B

Beer!

de ins

"An intercepted pall"

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TELEGRAPH. SATURDAY, MARCH -28, 1936.

U.S. INVESTIGATION OF MUNITIONS. TRADE: WASHINGTON REVIEW

LEGISLATION IN AMERICA

Washington, Mar. 18. Some of the mystery surrounding Sir Basil Zaharoff, Europe's super arms salesman, Spanish duke and British Knight of the Garter, was listed when youthful Senator Gerald P. Nye, Republican, North Dakota, banged his gavel to start the inquiry more than 17 months ago.

Now, as the investigation approaches an end and Congress is busy trying to draft legislation to keep the nation out of war, the record shows a series of sensational disclosures.

The white-whiskered "maker and breaker of kings" probably was enjoying the warm sunshine on one of his Mediterranean villas when the Investigation began on September 4, 1984, but his name made nows in the marble pillared room where many famous men faced Senate committees.

Moving rapidly, investigators disclosed that from 1919 to 1930 the Electric Boat Company of Groton, Connecticut, paid com- missions totalling $766,099 to Sir Basil, whose munitions dealings in Europe cover half a century. It was shown his services were to "do the needful" in holding a Spanish contract against competition from German and Italian submarine companies.

FARMER KNITS FOR

A LIVING

London, Mar. 26. Alfred Fincher, a farmer of Wallases, when answering a rate summons at Southend told the magistrates that he had been so reduced by vari- ous charges on his farm that he could only carn his living by knitting stockings. He had bed to sell all his stock and was living in a stable with his dog.

Witnesses described Zaharoff a a man with "a very brilliant mind," but they could not throw light on his many activities. Few had met him; none knew his nationality.) From the record, the committee learned that he enjoyed a close Anxious to develop sensational relationship with officials of several evidence quickly, the committee European governments and he was stumbled into numerous vigorous a muster at the art of influencing protests as a result of its dila. men to buy war materials from the closures relating to prominent firms he represented.

Committed's Record

At the end of its first week, the committee claimed to have made this record:

That officers of the Electric Bont Company gave Sir Basil free advice on how to avoid payment of U. S. income taxes;

officials abroad.

Secretary of State Cordell Hull imposed a censorship on the committee after British Am- bassador Sir Ronald Lindsay objected because the name of the late King George V. was enter- ed into the records.

Investigators created a stir Sep-

That Sir Basil counselled the American firm on the technique tember 7 when they disclosed the of "lobbying" successfully with the King had attempted to block an U. S. Navy Department, ant pre- American munitions sale to Poland vailed upon it to use its influence in an effort to awing the

to get the State Department to business to a British firm.

it sell submarines to

to Spain; hat the company had a cartel!.

with

con-

дете

It wasn't long before the com-

agreement Vickers, Ltd. huge mittee heard additional protests from foreign nations. Objections British arms manufacturing cern, under which the two firms were sent to Hull after evidence divided the markets of the world was offered showing that agents of and shared profits and patent the Du Pont Powder Company had secrets;

engaged the services of the son of That American submarine patent the President of Argentina In 1931 secrets passed freely into the hands to expinin the "highly technical de- of the British government and tails" of a powder factory, pro- eventually roached Germany where

sonie

of them were used in building posal.

the U-bonts that sank allied vessels during the world of the Tact

That at the time

Before ending the first phase of its. inquiry, the committee made a Tacna-parťal survey of war profits.. Africa dispute the submarine Arm Taking the records of the Du Pont negotiated for salca to Peru and at Co., it was shown that the firm's the same time conched Vickers on earnings increased from $4,997,000 how to obtain business from Chile, In 1914 to $86,000,000 in 1915. Poru's enemy;

Assets of the company grew from That the War Department turned $74,000,000 in 1913 to $308,000,000 over its secret plans for anti-air- In 1918.

aft guns to an American mami- facturer so that he could make the The most prominent example of weapons and sell them to Poland; how capital investment grew was That the Navy Department shown in a report on the Pratt and authorized a voyage of the cruiser Whitney Aircraft Co. The Arm Raleigh to Constantinople so that started out with an original in- it could be used as a "sample caso" vestment of $1,000... For this in- by an American frm accking vestment 5,000 shares of no par business from the Turkish govern- stock were issued at 20 cents a

craft

mont;

That alleged bribery was a com- share. Returns through 1932 on mon practice of certain munition the original investment were about companies and their salesmen, and $11.437,260 or 1,143,725 per cent. that a British firm once informed its The committee showed large In- American associate, "we fully un- creases in the amount of busincas derstand that armament deals are obtained by American companies not usually done without officials in Germany despite provisions in getting greased.""

the Versailles treaty restricting Prominence Fads

Germay's rearmament. programme. Zaharoff's prominence faded as United Aircraft Co. sales through the committee swung into an ex- Germany increased from $2,000 in amination of war profits, Indivi-1931 to $1,445,000 In the first eight | dual salesmanship, methods, war months of 1934.

preparations, and a score of other Reports to the Du Pont Co., and subjects. Before It had completed other American arms corporations the first phase of its inquiry, thein, 1933 and 1984 told of a tremend- committee had stuffed its recordjos Increase In the contraband of with references to many famous arms and ammunition Into Ger- men, dead and alive."

TR

reliać from naughing.

many.-United Press.

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