SCANDAL IN AMERICA.

New Zealand Herald, Volume LXVI, Issue 20355, 9 September 1929, Page 11

SCANDAL IN AMERICA.

ALLEGED PROPAGANDIST.

CLAIM FOR COMMISSION.

WORK FOR LARGER ARMAMENTS

FIRMS DENY ALLEGATIONS.

Australian Press Association —United Service (Received September S, 5.5 p.m.) WASHINGTON, Sept. 7. Tho President, Mr. Hoover, announced to-day that ho had instructed the Attorney-General, Mr. W. D. Mitchell, to in vestigato the activities of William Sfhearer, an advocate of a "big navy for the United States.

Schearcr brought an action at law against the American Brown Boveri Llcctlie Corporation, (he, Bethlehem Shipbuilding Corporation and the Newport News Shipbuilding and Dry Dock Company. He claimed a commission of more than £60,000 for his efforts at Geneva to discourage naval disarmament, while ho was in the secret employ of corporations interested in naval contracts.

Mr. Hoover has called upon the three corporations in question, each of which now is building cruisers for the United States, to stato their side of the case in reply to the allegations of Schearcr during and before the Geneva Conference. The President said this was due to tho public, the Government and the corporations.

Part of the propaganda which Schearcr disseminated at Geneva had been directed toward the creation of international distrust and hatred.

It was obviously against the public interest, said the President, for those who had a financial interest in or might cngago in contracts for the construction of naval vessels secretly to attempt to iufluenee public opinion or public officials, by propaganda in favour of larger armaments. It is against the public interests for such persons to attempt to defeat the efforts of tlio Governments toward a world limitation of armaments; or to employ persons for such a purpose. The President is determined that the present international negotiations shall not be interfered with. A sensation has been caused by Mr. Hoover's statement. Schearer is a wellknown civilian naval expert, and his action was against three of the largest American shipbuilding concerns in respect of his services as propagandist in support of increased armaments. Responsible officials of the three corporations have issued a statement denying Scheaier's charges.

An expansion of the scope of the proposed inquiry on Tuesday by the Naval Committee of the Senate into the activities of Schearer was to-day urged by Mr. W. E. Borah, chairman of the Foreign Relations Committee. He said it should include officers of the three corporations which Schearer claims to have represented at the Naval Limitations Conference at Geneva in 1927.