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Senator WATKINS. It had been disposed of three times in between? Mr. HOSPELHORN. That is right.
Senator WATKINS. Did he advise you at any time with respect to the disposal of any of these assets?
Mr. HOSPELHORN. No, sir; he had no authority to do such.
Mr. HOSPELHORN. No, sir; he did not.
Senator WATKINS. As a matter of fact, he was not your representative at any time?
Mr. HOSPELHORN. Absolutely not. He was a special representative of the court to make an investigation and report to the court.
Senator WATKINS. And that was confined strictly to the alleged misconduct of the directors and the employees?
Mr. HOSPELHORN. The directors' liability and officers'.
Senator WATKINS. Do you know of any reason why he should not be approved?
Mr. HOSPELHORN. Absolutely not. To the contrary, I think it is a great credit to the country if he can serve in the court of appeals. Senator O'MAHONEY. Thank you very much.
Mr. Raymond J. Funkhouser has also been subpenaed by this committee at the request of Senator Johnston.
Mr. Funkhouser, will you come forward? Is Mr. Funkhouser in the room?
Mr. Collins, will you state for the record what the files of the committee show with respect to the service of this subpena?
Mr. COLLINS. Mr. Chairman, the subcommittee was advised under date of May 2, that the United States marshal had advised the deputy sergeant at arms that he had served the subpena on Mr. Hospelhorn. The marshal further advised that he did not serve the subpena on Mr. Funkhouser, who lives in Centreville, Md.
Funkhouser's secretary advised the United States marshal that "Funkhouser is out of town but might be back tonight," "tonight" being May 2.
Under date of May 3, the subcommittee was advised by the deputy sergeant at arms that the subpena to Mr. Funkhouser had been left with his secretary, and that the subpena would be given to Mr. Funkhouser upon his return to the office, by his secretary.
That is the present state.
Senator O'MAHONEY. Is there anything in the file, Mr. Davis, from Senator Johnston which would indicate what questions he desired to ask of Mr. Funkhouser?
Mr. DAVIS. Mr. Chairman, as of yesterday evening, there were no questions filed with the committee to ascertain just what inquiry was proposed with respect to Mr. Funkhouser. It is my understanding that a statement has been filed this morning with the subcommittee. Senator O'MAHONEY. I have not seen it.
Senator WATKINS. May I inquire of the staff if any of them have talked with Mr. Funkhouser, or has he appeared here or written a letter indicating any interest in this proceeding?
Mr. DAVIS. Senator Watkins, no. The subcommittee or the staff have not received such a communication. It is my understanding that a representative of Senator Johnston of South Carolina, a member of this committee, had a representative contact Mr. Funkhouser or communicate with him.
Senator O'MAHONEY. Well, the Chair will say that in the papers handed to me this morning on behalf of Senator Johnston, there was a résumé of testimony of subpenaed witnesses.
The first witness, of course, was Mr. Hospelhorn.
Under the name of Raymond J. Funkhouser, the memorandum of résumé reads as follows:
Raymond J. Funkhouser, R. J. Funkhouser & Co. His testimony will follow along the facts set forth in examining Mr. Hospelborn.
Senator WATKINS. I think it is quite clear that probably Senator Johnston had a talk with these men
Senator O'MAHONEY. The committee will take into executive consideration later the facts relating to the service upon Mr. Frunkhouser. On this list there was also the name of Mr. Charles Shankroff, of Baltimore, Md. Is Mr. Shankroff in the room?
Do you care to testify, sir?
Mr. SHANKROFF. Yes. sir. I think it will take at least an hour. I don't know how your time
Senator O'MAHONEY. This is Saturday, and all the witnesses have been endeavoring to proceed with expedition, and we hope that you can, too.
Mr. SHANKROFF. All right.
Senator O'MAHONEY. You can file a statement, Mr. Shankroff, and you can summarize the contents of that statement, in the interest of time.
STATEMENT OF CHARLES SHANKROFF, BALTIMORE, MD.
Mr. SHANKROFF. Well, I have just got a skeleton picture of what I have to say, and some of the things I would have to explain. It took me a year to get the facts together.
Senator O'MAHONEY. Well, now, let me ask you, first, who are you? Mr. SHANKROFF. My name is Charles Shankroff.
Senator O'MAHONEY. Where do you reside?
Mr. SHANKROFF. 1119 North Calvert Street, Baltimore.
Senator O'MAHONEY. How old a man are you, Mr. Shankroff?
Senator O'MAHONEY. How long have you lived in Baltimore?
Senator O'MAHONEY. Are you in active business now?
Mr. SHANKROFF. Well, I am interested in real estate, but I am not very active.
Senator O'MAHONEY. What has been your business in the past? Mr. SHANKROFF. Mostly real estate.
Senator O'MAHONEY. In what capacity did you serve in the realestate business?
Mr. SHANKROFF. Well, I was not a broker, but I was interested in buying, selling.
Senator O'MAHONEY. Did you make your living buying and selling? Mr. SHANKROFF. Yes, I made some money.
Senator O'MAHONEY. You made some money. That is the purpose of all in the real-estate business, I understand. Mr. SHANKROFF. Right.
Senator O'MAHONEY. Did you have a corporation of your own? Mr. SHANKROFF. No, sir, I never operated as a corporation. Senator O'MAHONEY. You operated as an individual?
Mr. SHANKROFF. Individual.
Senator O'MAHONEY. Yes, sir.
Now then, what are the subjects concerning which you wish to testify? Do you know the nominee?
Mr. SHANKROFF. Well, I have read about him, and I have heard about him, but I don't know him personally. I know him now when I see him.
Senator O'MAHONEY. Do you care to testify as to whether or not he should be confirmed by this committee, if you don't know him? Mr. SHANKROFF. Well, I am relying on the record of the Baltimore Trust Co. and the record of the receivership of the Baltimore Trust Co., and other public records.
Senator O'MAHONEY. Do you contradict the testimony of Mr. John D. Hospelhorn, deputy commissioner of the Maryland State Banking Commission, and receiver of the Baltimore Trust Co.?
Mr. SHANKROFF. Well, I can't contradict him, because I didn't hear it. It may have been read here, but I didn't hear it. You can't hear anything in the back of the room. You ought to have a loudspeaker here so the people would have the benefit of hearing. That is my criticism of this meeting. I couldn't hear. In the first place, I am a little hard of hearing, but I know the others had difficulty in hearing. They could not make out what the speaker said.
Senator O'MAHONEY. My dear sir, you did not indicate to the chairman that you were anxious to hear all the testimony. We would have put you up in the front row, sir.
Mr. SHANKROFF. I am speaking not only for myself, but I am speaking for the public. I think there should be a loudspeaker here, the same as at other public assemblies.
Senator O'MAHONEY. We will take that up with the Rules Committee for further consideration.
Senator WATKINS. I would like to ask him some questions.
Senator O'MAHONEY. Yes, indeed.
Senator WATKINS. What is your background, educational background?
Mr. SHANKROFF. Educational background?
Senator WATKINS. Yes.
Mr. SHANKROFF. I went to public school.
Senator WATKINS. A little louder. They can't hear you. [Laughter.]
Mr. SHANKROFF. I went through the public schools. I went a year to the Boyce High School, and I have studied a great deal myself. I went to evening schools.
Senator WATKINS. Did you finish high school?
Mr. SHANKROFF. I did not. I only went 1 year.
Senator WATKINS. What has been your business? Have you been
a real-estate man all your life?
Mr. SHANKROFF. No; not all my life.
Senator WATKINS. Then since you were an adult?
Mr. SHANKROFF. Well, I have been in the real-estate business since about 1920.
Senator WATKINS. Were you a depositor in this Baltimore Trust Co.?
Mr. SHANKROFF. No, sir.
Senator WATKINS. Did you have any connection with the receivership whatsoever?
Mr. SHANKROFF. None whatsoever. The only interest I had was that I heard that there was a property of the Baltimore Trust Co., and I was interested to find out what happened to that property, and it took me a year to dig up the facts, because the records were upset.
Senator WATKINS. Were you living in Baltimore then?
Senator WATKINS. When this receivership was under way.
Senator WATKINS. Where did you live?
Mr. SHANKROFF. I lived at that time
Senator WATKINS. A little louder, please.
Mr. SHANKROFF. At that time, in 1935, I was in Brooklyn, N. Y. That is where I lived.
Senator WATKINS. In Brooklyn, N. Y.?
Mr. SHANKROFF. Yes.
Senator WATKINS. How long have you lived in Baltimore?
Mr. SHANKROFF. Since 1942.
Senator WATKINS. Since 1942?
Mr. SHANKROFF. Yes.
Senator WATKINS. Do you have any special training for examining records and determining what happened?
Mr. SHANKROFF. Well, I have been searching titles to real estate since 1913, and I ought to know something about real estate.
Senator WATKINS. Well, you have been searching titles, but how much have you done in Maryland, in Baltimore?
Mr. SHANKROFF. I have been doing that all the time.
Senator WATKINS. You had no special training for that job? You are not a lawyer?
Mr. SHANKROFF. I am not a lawyer.
Senator O'MAHONEY. Senator, if I may interrupt, perhaps we can condense this matter a little bit.
From an answer the witness gave to one of your questions, he said, if I understood him correctly, that he made an investigation with respect to the disposition of certain property.
Mr. SHANKROFF. That is right.
Senator O'MAHONEY. Is that right?
Mr. SHANKROFF. Right.
Senator O'MAHONEY. What property?
Mr. SHANKROFF. This so-called, originally called Baltimore Trust Building. Now it is called the Mathieson Building.
Senator O'MAHONEY. Is that the same building concerning which the receiver testified?
Mr. SHANKROFF. I can't tell whether that is the building or not, because I haven't heard his testimony.
Senator O'MAHONEY. I tell you, as chairman, that it was.
Mr. SHANKROFF. Sir?
Senator O'MAHONEY. I tell you, as chairman, that it was the same building.
Mr. SHANKROFF. All right.
Senator O'MAHONEY. He was asked the question as to whether or not Mr. Sobeloff had any function to perform in the disposal of that building; and his answer was-I am speaking now of Mr. John D. Hospelhorn, deputy commissioner, Maryland State Banking Commission, and receiver of The Baltimore Trust Co.-that it was he who sold the building, and not Mr. Sobeloff.
Mr. SHANKROFF. Well, that may be true.
Senator O'MAHONEY. Well, that is the official record,
Senator O'MAHONEY. Do you wish to challenge that?
Mr. SHANKROFF. I don't challenge that, because he was the receiver, he was the only one who could sell it. Mr. Sobeloff couldn't sell it.
Senator O'MAHONEY. Mr. Hospelhorn assumed all of the responsibility. Mr. Sobeloff was an officer of the court.
Mr. SHANKROFF. That is right.
Senator O'MAHONEY. Now, I say again, do you wish to challenge the testimony of Mr. Hospelhorn?
Mr. SHANKROFF. Well, I say again, I can't answer that All I can tell you is that I have seen in the record, and I am willing to testify as to that.
Senator O'MAHONEY. Well, the records will speak for themselves. Mr. SHANKROFF. That is right.
Senator WATKINS. The witness, Mr. Chairman, has not shown any special qualification for interpreting legal documents, and particularly receivership, which is one of the most complicated matters, receivership of a bank in liquidation, one of the most complicated matters you could possibly get into.
Senator O'MAHONEY. But the best evidence to be brought before this committee are the records themselves, and not the interpretation of those records by an unofficial person who merely acted in his own behalf to examine the records.
Senator WATKINS. I agree with the chairman.
Senator O'MAHONEY. And concerning whose qualifications we know nothing except what he has testified to here.
Now, I want to be perfectly fair in the conduct of this examination and the presentation of this witness, but in view of the fact that you propose to testify only about the Mathieson Building, concerning which there already has been the testimony of the receiver of the bank, the Deputy Commissioner of the Maryland State Banking Commission, Mr. Hospelhorn, I am frank to say to you, it seems to me that your testimony would be irrelevant at this moment.
Mr. SHANKROFF. May I say this: I don't know where you got the impression that I was going to testify only as to the Mathieson Building.
Senator O'MAHONEY. I asked you, and you told me. That is where I got the information.
Mr. SHANKROFF. I was interested in the Mathieson Building, but that was not the only thing I have to say about this Baltimore Trust receivership.
Senator O'MAHONEY. Do you have anything to say-the receivership is not in issue here.