But that still doesn't result in a control character. In my terminal (testing with cat -v) I just get a beep (and it's not a BEL character!). Because the 7th bit of 35 ('#') is already 0 there's nothing to convert it into.
And it works for other things, like:
echo "<ctrl-v><esc>c" clears my screen.
(where <ctrl-key> means pressing <ctrl>+key, <esc> means pressing the escape key, etc)