Evening star. [volume], December 14, 1936, Page A-4, Image 4

About Evening star. [volume] (Washington, D.C.) 1854-1972

Image provided by: Library of Congress, Washington, DC

                
Van Sweringen Purchase of
Missouri-Pacific Termed
Mistake.
B' the Associated Press.
William C. Potter, chairman of
the Guaranty Trust Oo. of New York,
told Senate Investigators today he be
lieved the late Van Sweringen broth
ers' purchase of the Missouri Pacific
Railroad System w'as a “mistake of
Judgment.”
He gave his testimony before the
Senate committee investigating rail
road financing in asserting that bonds
of Alleghany Corp., a major holding
company in the Van Sweringen rail
empire, were a “sound Investment."
"The Alleghany Corp.,” he said,
“was designed primarily as a means of
bringing about consolidation of the
Eastern railroads in which the Van
Sweringens were interested.
"These roads included all the so
called Van Sweringen railroads, with
the exception of the Missouri Pacific,
which was purchased by the Van
Sweringens to give Alleghany a di
versification of earnings.
Purchase Held Mistake.
“In the light of hind sight, I believe
the Missouri Pacific purchase was a
mistake of judgment.”
Potter contended the Van Sweringens’
activities were “founded on the policy
favoring consolidations of railroads
into a few great systems that was de
clared by Congress in the transporta
tion act Of 1920.”
Chairman Wheeler of the Investi
gating Committee interjected that
“Congress has never favored consoli
dation through holding companies.”
“The Interstate Commerce Commis- ,
•ion has repeatedly denounced holding
Companies,” he declared.
“No Congress would ever dare go on
record as favoring consolidation
through such a corporation as Alle
gheny.”
“You have tried to give us the im
pression,” Wheeler added, "that the
Van Sweringens were acting in ac
cordance with the will of Congress.
Executives to Be Called.
“Nothing could be further from the
facts.”
“Perhaps they were trying to ac
eomplish the same ends in a different
way," Potter replied.
Wheeler expressed surprise that
John W. Davis, one-time Democratic
candidate for President and well
known New York attorney, “would
permit his name to be used” on a
prospectus for Alleghany Securities.
“I don't think any attorney ought
to let his name be used that way,”
Wheeler said.
Senator White, Republican of Maine,
broke in to assert that it was a "uni
versal practice'* for lawyers to put
their names on security prospectuses
Bfter passing on the legality of the
Issue.
“We don’t take any liberties with !
Mr. Davis.” Potter said with a broad ■
smile. "He is pretty smart, and would
soon check up on us.”
item sound investment.'
Potter went on to assert that “the I
record of the last six years demon
strates” that Alleghany bonds were a
"sound investment.”
“Despite the greatest depression in
the world's history, which has par
ticularly affected railroads.” he said,
"two out of the three Issues have con
tinually paid their interest and are
now selling at approximately the issue
price.”
Executives of the Missouri Pacific
system, one of the six major strands
In the Van Sweringen network, will
be summoned before the committee
later this week. The road's presi
dent, L. W. Baldwin, already has been
subpoenaed.
They will be asked to describe the
working railroad properties, charac
terized by investigators as "the second
layer in the Van Sweringen pyramid."
Hearings last week centered on the
s
In Blast at Apartment
Former British Monarch
k Makes Appointment Due
to Ear Affliction.
Br the Associated Pres*.
VOESLAU, Austria, December 14.—
The Duke of Windsor, closely guarded
In a chateau where he started life
anew today as a private citlaen, made
an appointment to consult a Vienna
specialist about a long-standing ear
affliction.
The former King of England, who
came to Austria last night after giv
ing up his throne for Mrs. Wallis
Simpson, was expected to call at the
Vienna clinic of Prof. Heinrich Neu
mann, late In the day after all other
patients had left, attendants said.
It was noted the former sovereign
held his hand over his ear when he
was driven from the Vienna station to
the country estate of Baron Eugene
de Rothschild near here after a trip
from England through Prance and
Switzerland.
Neumann maintained an ethical
ailence concerning the nature of the
Duke’s ear trouble, but it was learned
from attendants and other physicians
that the treatments he will undergo
consist of X-ray. light rays and rins
ing the Inner ear.
Neumann has treated the former
King on previous visits to Vienna.
The specialist confined himself to a
statement that the ear trouble was
not serious and that the treatments
were designed to prevent the condi
tion from becoming worse.
Ear specialists believed the ailment
might have been caused either by a
fall from a horse or by Infection fol
lowing bathing.
The consensus in Vienna was the
former ruler first came to Austria
from England so he could consult
Neumann.
utn«>rmM Patrol Estate.
Gendarmes petrolled the large
•state of Baron De Rothschild, keep
ing the curious at a distance. Servants
were fot bidden to talk to callers.
Watchmen patrolled the entire rail
road line from the Austrian border
to Vemna and from Veinna to the
Enzesfeld estate when the royal visitor
arrived. A gendarme was posted every
one-haK kilometer.
A police car accompanied the duke
and his party as it dashed from
Vienna to the estate, 25 miles from
the capital. After he passed the
Vienna city limits, police blocked off
the road for 10 minutes.
The former King began his day
at 7 o'clock at the rambling, red
roofed castle of half a hundred rooms.
He ate a light breakfast and played
golf for an hour and a half on the
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Mrs. Madison M. McNutt and her daughter, Sarah Ann, 3,
who were struck by falling plaster in their apartment below the
one in which the explosion occurred.
(Story on Page A-l.)
pyramid’s capstone—the holding com
panies through which the scores of
railroads, bus lines, coal pits and
real estate developments were con
trolled.
Would Photect Investment.
Wheeler said one of the chief ob
jects of the inquiry was to protect
the Government’s investment in the
Van Sweringen lines, estimated at
*67.000.000.
Loans by the Reconstruction Finance
Corporation *ince 1930 have made
the United States the system's largest
creditor, he said, adding that the
Government had a *23.000.000 in
vestment in Missouri Pacific alone.
MICHAEL JACOBS,
FIRM HEAD, DEAD
Funeral for iJan Lonp Resident
Here to Be Conducted
Tomorrow,
Michael Jacobs. 49. president of I,.
Jacobs <fe Co., tailoring firm, died yes
terday of a heart attack at his home,
4222 Seventeenth street.
Mr. Jacobs, a resident of this city
since a child, was born in Vilma.
Mr. J»c«b«
Russia He was a
member of the
Woodmont Coun
try Club. the
Amity Club, the
Fifty Club, the
National Lodge of
Masons and the
Elks.
Surviving him
are his widow,
Mrs. Henrietta
Jacobs; two
daughters. Miss
Elaine Jacobs and
Mias Ruth Jacobs;
two sisters, Mrs.
A1 Friedman, this
city, and Mrs. Morris Galt. New York,
and two brothers, Julius and Dave
Jacobs, both of this city.
Funeral services will be held at 11
am. tomorrow at the residence.
Burial will be in the Washington He
brew Cemetery.
-# ,m
France will Increase its tax on large
inheritances.
JOSEPH S. TOMPKINS,
Who. n-ith L. E. Cashen. ex
tinguished Mrs. Bean's flam
ing clothing.
—Star Staff Photo.
DOUGHTON PROPOSED
FOR HOUSE LEADER
P» the Associated Press.
Representative Weaver of North
Carolina expressed hope today House
Democrats would turn to Representa
tive Doughton of North Carolina to set
tle their majority leadership fight.
He said Doughton. chairman of the
House Ways and Means Committee,
would make “an exceptionally satis
! factory majority leader."
Weaver was one of three North
Carolina Representatives who failed to
commit themselves on the leadership
fight In a recent caucus at Raleigh.
He said he failed to do so in hopes
Doughton would become a candidate
for the post.
WHERE TO PINE.
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Cafeteria Only
Tender. Julcr
Prime Ribs of
Roast Beef
Brown Potatoes. Broccoli. Hollandolao
Sauce. Hot Rolls. Beverage
LOTOS LANTERN
MS 17th St. N.W.
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THE POWERFUL GRAND PRIZE MODEL 9
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DURING THIS SPECIAL SALE
85
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fret with each cleaner
A Startling Value! Thoroughly reconditioned
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complete with attachments.
FREE SET OF ATTACHMENTS
As extra value a complete brand new set of attachments
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private course. Then he returned for
a “fork breakfast.” after the Austrian
custom, with a meat dish.
There were 20 gendarmes and
detectives on guard at the front gates,
and It was estimated 120 others were
deployed about the grounds.
Motorists and pedestrians were kept
at distances of a half a mile to a
mile.
Tbs day was oold and cloudy and
the castle had a drab, yellowish look.
Enaesfeld is not unique to Austria,
except for its golf and tennis rctlvitles.
One of its two square towers dates
from the seventeenth oentury. A
small tree ferows atop the gun-notched
turret.
Edward's bed room, overlooking a
great park, recently was redecorated
in a dark red motlt.
His hostess, according to reference
books on Italian aristocracy, was born
on March IS, IMS, in Philadelphia.
Her name was Cathleen Wolff.
She was married to a dentist named
Spotswood, but the marriage was an
nulled, the book shows. In 1911 she
married Count Erwin von Schoenborn
Buchheim, Austrian councillor to the
legation in Paris, but this union also
was declared invalid. On April 21,
1925, she and Baron Eugene Daniel
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AT PUBLIC AUCTION
At Sloan’s
715 13th St.
WEDNESDAY
December 16, 1936
at 10 a.m.
Term* Cash.
C. ft. II.OAN A CO.. lite.. Auctioneer*
Rothschild were married In Paris.
The baron is 62 years old. a year
older than his wife.
Before the World War he was a
captain of the 6th Regiment of the
Austro-Hungarian Dragoons.
The wife of the baron's older brother,
Alfons. Is a daughter of the famous
Monteflore family of London.
The Rothschilds usually live at
Cnaesfeld for seven months out of
the year. Today, although K was
stressed their royal visitor’s plans ware
Indefinite, It was believed he would
remain through Christmas.
Oreat quantities of mall and tele
grams were going to and from Knses
feld, among them, presumably, a mes
sage from the Duite of Windsor to
King Oeorge VI.
There also were two kmg-distanee
telephone calls from the castle during
the morning.
The former monarch was in a
happy frame of mind when he ar
rived. apparently unworried by the
momentous decision he had made to
cast aside the crown.
The Austrian press welcomed the
former King, saying it hoped he would
stay long.
The public, more curious than any
thing, was more restrained. It re
\ A GIFT THAT KEEFS
1 GIVING l
Today's Spocial at
Washington's Largast
Typewriter Store.
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TRADE? SURE WE WILL TRADE
Turn in Your Set on a New Model
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We Repaired Your “Dad’s” Train, Why Not Yours?
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OPEN EVENINGS
Special Notice
Union Pacific No. 299W and
Lionel Airplanes Have Arrived
membered him as a frequent visitor to
the country, sometimes accompanied
by Mrs. Simpson.
If he become* an out>and>out
^=g!
•‘wlenerwaider.’, meaning an enihusi*
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and skier, it was certain the country
would take him to its heart.
—a pair of these lovely much
wanted slippers with the fa
mous name of
DANIEL GREEN
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Also in Red, Blue or Black
K.d_$3.75
Hostess Slipper. . . the new
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to receive company. In
black satin with silver kid
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Felt Comfys ... to give
her the most complete
feeling of relaxation. In
blue, rose and oxford
^ gray-$2.25
Other Slippers from $2.25 to $5 00
Fin* Hos* ... sheer, cleor and rjngless ... in all
leg lengths. $1 pr. or 3 pr*. for $2.85 . . . $1.35 pr.
or 3 prs. for $3.75 ... $1.65 pr. or 3 prs. for $4.65.
.....
SOL HERZOG IHCJ
■
It required Super Buying to bring you this “One”
A NEWLY ARRIVED SHIPMENT!
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EYEIY COAT IEMS
THIS BEWIIE
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WORUMBO WOOLEN PRICES HAVE ADVANCED! Cost of
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. . . a trip down here for personal inspection will reveal the
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CHARGE IT IF YOU LIKE! Budget or Monthly Accounts.
Open Night$ *til 9 PM. from now until Christmas!
m mm
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