Mr. WIGGLESWORTH. I do not think you answered my question. Mr. CRAVEN. I do not think I understand it correctly. Mr. WIGGLESWORTH. I asked you whether or not it is a fact that at you endeavored to do was to reassign the stock to the several mpanies at the same time placing in Mr. Lohnes' hands the right collect the purchase price for the stock that you previously held. Mr. CRAVEN. Let us get this right. Mr. WIGGLESWORTH. Is that a fact? Mr. WIGGLESWORTH. What is the fact? Mr. CRAVEN. I had a contract for employment when I left the vy in which I was to get 10 percent of the stock, and the provisions he contract were if I broke the contract the stock was to be returned the contract that I had with them was to be terminated. I was get the book value of the stock in the event I broke the contract. the time I was appointed as chief engineer I made a contract with company for the sale of the stock in accordance with the terms 1 terminated my former contract with them and cast off all former nections with them. They agreed to pay for the stock over a -iod of years; 52 payments, I think. Mr. WIGGLESWORTH. To whom? Mr. CRAVEN. To me at that time. I then at a later time, prior to taking the position of chief engineer, assigned the contract for ment to Mr. Lohnes for collection. All of these contracts, every of paper I had, were presented to the Senate committee upon my firmation and they went over them in detail, particularly Senator heeler. No paper was held back with respect to that. Mr. WIGGLESWORTH. Did you not reassign the stock and assign to -. Lohnes the right to receive the purchase price? Mr. CRAVEN. No; I maintain that stock was sold. I lost all contion with the stock and also had no rights whatsoever even to make t against the company for payment. Mr. WIGGLESWORTH. What rights did you assign to Mr. Lohnes? Mr. CRAVEN. The rights I had coming to me as a result of payment the stock, actual payment for the stock. Mr. WIGGLESWORTH. To receive the purchase price of the stock or h portions of it as had not been paid. Mr. CRAVEN. Yes. Mr. WIGGLESWORTH. Were the stock certificates endorsed and ually returned to the company? Ir. CRAVEN. Actually endorsed and turned over to the company it is a matter of record on the company's books. Mr. WIGGLESWORTH. Do you know who that stock was delivered Mr. CRAVEN. It was delivered to the attorney for the company, . Solis-Cohen. Mr. WIGGLESWORTH. Was it delivered here in Washington? Mr. WIGGLESWORTH. Did you get anything in the nature of a eipt for the stock certificate? Mr. CRAVEN. I do not recall that I did. I will be glad to let you it. All the contracts are the same contracts I gave the Senate mittee. I do not know whether I got them back or not. They y be in the file of the Senate committee. Mr. WIGGLESWORTH. You do not know whether or not you got any receipt? Mr. CRAVEN. I do not recall. That is some years ago now. Mr. WIGGLESWORTH. But you are certain that you delivered the stock? Mr. CRAVEN. To Mr. Solis-Cohen. It was just prior to taking my job as chief engineer. Mr. WIGGLESWORTH. Did you give back the WPEN stock and the stock in all the other three companies? Mr. CRAVEN. Yes. I have no connection since then. It is matter of record on the books, a matter of record that the stock was transferred. Mr. WIGGLESWORTH. The payments under that agreement, as I understand it, were $1,000, in monthly installments of $50 a month from January 15, 1936; $4,000 over a period of 56 months from the same date; and $20,000 over a period of 57 months from December 15, 1935. Mr. CRAVEN. I do not recall those particular payments. Mr. WIGGLESWORTH. They were to be made, were they not, over a period of 50 or more months? You told us the other day that you were paid in full a year or two after you joined the Commission. Mr. CRAVEN. That is right. Mr. WIGGLESWORTH. Just when? Can you give the date more accurately? Mr. CRAVEN. The final payment I received was sometime this year. Mr. WIGGLESWORTH. When? Mr. CRAVEN. I do not know the exact date. Mr. WIGGLESWORTH. January or March or June? Mr. CRAVEN. I think the final payment was around June. (NOTE. The final payment was made on July 26, 1937.) Mr. WIGGLESWORTH. It was before you actually became a member of the Commission and while you were still chief engineer? Mr. CRAVEN. Yes. Mr. WIGGLESWORTH. Who did that come from? Mr. CRAVEN. I got it from Mr. Lohnes. Mr. WIGGLESWORTH. He collected it from the company and then turned it over to you? Mr. CRAVEN. He collected all payments except the final payment from the company and turned the proceeds over to me. The final payment represented a discount of the balance due and payment of attorney fees. Mr. WIGGLESWORTH. HOW was that made? Mr. CRAVEN. What do you mean "made"? Mr. WIGGLESWORTH. By check? Mr. CRAVEN. No; I got it in cash. Mr. WIGGLESWORTH. Were all the payments you received in cash? Mr. CRAVEN. Some were, and some were not. Mr. WIGGLESWORTH. What did you do with them? Mr. CRAVEN. I built a house with them. I put them in a company to build a house. Mr. WIGGLESWORTH. What did you do with the money that you received? Mr. CRAVEN. I put some of it in a safe deposit box, as testified in the Senate hearings. Mr. WIGGLESWORTH. In a safe deposit box? Mr. CRAVEN. That is right. Mr. WIGGLESWORTH. Have you any record of the actual payments you received, the dates and so forth? Mr. CRAVEN. I can get it. Mr. WIGGLESWORTH. You stated the other day that you did not recall the application for increase in power and transfer of ownership by the two stations, WPEN and WRAX, that you had paid no attention to those stations at all. Mr. CRAVEN. For the simple reason that while I was chief engineer of the Commission I gave orders to the staff and also informed the Commission I desired to have nothing to do personally with the two companies or any stations or any clients that I formerly held whose cases were pending before the Commission, and such orders were ssued and the Commission notified. I had had personal interest in such matters and therefore the Commission did not look to me, nor Hid I pass upon those things. Mr. WIGGLESWORTH. As a matter of fact, you now know, do you not, that there was a hearing this summer on an application for an ncrease in power for those stations and their transfer to Mr. John raci, and that approveal was given by the Commission in September, ffective about November 12? Mr. CRAVEN. I did not check up when the hearing took place but have found out since such is the case since you cross-examined me he other day. Mr. WIGGLESWORTH. Is that the first time you knew there was a earing at that time? Mr. CRAVEN. Yes; because I was not in this country when the cases were heard. Neither was I on the Broadcast Division when the case as decided, nor was I in the country when their opinion was published. Mr. WIGGLESWORTH. You had no information that those two ompanies applied for an increase in power or for transfer? Mr. CRAVEN. I knew they had applied for an increase in power. heard that but did not pay attention to it. did not know anying about transfer of control to Mr. John Iraci. I did not know at it had been transferred because I did not know that the Comission had passed on it. Mr. WIGGLESWORTH. Did you not give some testimony about this earing when you appeared before the Senate committee? Mr. CRAVEN. I may have. I do not recall what the particular hase was. Mr. WIGGLESWORTH. You would not say that you did not? Mr. WIGGLESWORTH. That was in August. Mr. CRAVEN. Yes. Mr. WIGGLESWORTH. What explanation would there be for stock at you owned in WPEN apparently being outstanding as late as ne of this year? Mr. CRAVEN. I have not the least idea about that at all. Mr. WIGGLESWORTH. I call your attention to this statement pearing in the report of Examiner Berry, of the Federal Comunications Commission, dated June 8, 1937. The Examiner states at The William Penn Broadcasting Co. is a Delaware Corporation authorized to business in Pennsylvania. Its charter was issued April 12, 1929. Its authord capital stock consists of 750 shares of common stock of no-par value * * There have been issued and are now outstanding 750 shares of common stock * * *. Of the stock issued and outstanding, Clarence H. Taubell, who is president of both of said corperations, owns 450 shares of the common stock of the William Penn Broadcasting Co * * John Irachi, vice president and secretary-treasurer of both corporations, owns and holds 225 shares of the common stock of the William Penn Broadcasting Co. * * Now, if you add 450 shares and 225 shares, that gives you a total of 675 shares, which seems to leave exactly 75 shares, according to your own examiner, issued and outstanding as of June 8, 1937. Mr. CRAVEN. I cannot explain that. I know perfectly well that the stock has been transferred from me to the company, and if you wish me to investigate and find out about that, I will be glad to do so. I knew nothing about that. (Mr. Craven inserted the following:) Investigation shows that the examiner was in error in stating that there were 750 shares outstanding. Exhibit 12 introduced at the hearing on May 3 shows that there were only 675 shares outstanding; also there is a report in the Commission's files showing the surrender of 75 shares of stock by T. A. M. Craven. This report was filed in connection with General Order No. 2 of the Commission. Mr. WIGGLESWORTH. You do not think there is any chance that that stock was held by Mr. Lohnes or anybody else, until the final payment? Mr. CRAVEN. I know that I have signed the stock back to the company and lost all control of it and Mr. Lohnes has no control over it, so far as I am concerned. Mr. WIGGLESWORTH. You do not think there is any possibility that anybody held that stock until that final payment was made? Mr. CRAVEN. I am quite certain of it, but I will make a close check for you and give you the information, if you so desire. I am not familiar with the details. Mr. WIGGLESWORTH. You do not think there is any chance that the money was withheld until the case before your Commission was actually passed upon? Mr. CRAVEN. I do not think that is possible. Mr. WIGGLESWORTH. You state that the final payment was in fact made sometime in June? Mr. CRAVEN. July 26, 1937. I will be very glad, if you so desire, to get that information for you exactly, I do not want to go and investigate this company of my own accord, if I can help it. But I do want to give you all of the evidence that you desire photostat the records, and so forth, of the company, showing the actual transfer on the books. I know, if you will look at the records of the Commission and I know they are there-the Commission was informed that the stock had been transferred from me and I was no longer a stockholder. If you so desire, I will give you a copy of everything, every contract that I ever had in the matter. I have nothing to withhold from you whatsoever. Mr. WIGGLESWORTH. I would be glad to have anything that you care to give me by way of information. I wish, incidentally, that you would furnish me also with copies of the contracts or assignments of which we have spoken and also of the engineering reports in connection with this application. Mr. CRAVEN. Yes. Mr. WIGGLESWORTH. That is, the application of WPEN and WRAX. Also, if you please, send copies of the engineering reports in reference to transfer of KNX and the four Hearst companies, which ransfers were approved after you came to the Commission. Mr. CRAVEN. Hearst never had KNX. Mr. WIGGLESWORTH. No. I said KNX and the four Hearst staions. Mr. CRAVEN. Yes. Mr. WIGGLESWORTH. Also, would you search the records and see hether or not a man by the name of Tantino, in your Commis on Mr. CRAVEN. I never heard of him. Mr. WIGGLESWORTH. In fact made a translation of the Iraci proram that we discussed a year ago that was subject to such criticism. Mr. CRAVEN. I do not believe Tantino is in the Commission. I ever heard of Tantino as being in the Commission at all. Mr. WIGGLESWORTH. If there is any evidence of his making a anslation of that program, would you let me have that? Mr. CRAVEN. I shall be very glad to do that. Mr. WIGGLESWORTH. And state who he was, if he was not with e Commission, if he made the translation. Mr. CRAVEN. I shall be very glad to do that. Mr. WIGGLESWORTH. Also, if you can get a copy of this recent roadcast which has created such criticism, would you let me have at, and some statement as to what action the Commission has taken contemplates taking? Mr. CRAVEN. You mean the Mae West program? Mr. WIGGLESWORTH. Yes. Mr. CRAVEN. Since talking to you the other day, the Commission s asked for all that information. Mr. WIGGLESWORTH. That is all I have, Mr. Chairman. Mr. WOODRUM. Commander, just to recapitulate, very briefly: As own in your testimony before this committee several days ago and day, just prior to coming to the Commission you were engaged in siness as a professional radio engineer consultant? Mr. CRAVEN. Yes. Mr. WOODRUM. And in such capacity had not only a personal erest in these questions that have been referred to, but a large entele to whom, for appropriate fees, you gave technical engineering vice and information? Mr. CRAVEN. That is correct. Mr. WOODRUM. The Radio Commission knew, and the Communiions Commission knew, that you were a private consultant? Mr. CRAVEN. That is right. Ir. WOODRUM. And, as you have stated, all of these matters were e into fully before the Senate committee when it had under coneration the question of your confirmation as a member of the mmunications Commission? Ir. CRAVEN. That is right. Ir. WOODRUM. Were these specific matters that Mr. Wigglesworth interrogated you about inquired into by the Senators? Ir. CRAVEN. Most carefully. Ir. WOODRUM. Who were the Senators who took part in this uiry? Ir. CRAVEN. Senator Wheeler and Senator White. Ir. WOODRUM. Senator Wheeler, of Montana, and Senator Wallace ite, of Maine? |