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Evening star. [volume] (Washington, D.C.) 1854-1972, August 03, 1949, Image 2

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Probers Refuse to Give
Hunt Unrestricted
Access to His Files
A Senate subcommittee investi
gating “five-percenters” refused
to<5ay to give James V. Hunt “the
right to unlimited and unre
stricted use” of his files now in
the committee’s possession.
Mr. Hunt, a former Army
colonel and a key figure in the
investigation, had demanded the
return of the files or access to
them for unrestricted use.
There were, meanwhile, these
other developments in the con
gressional inquiry into activities
of “five-percenters” and the al
leged use of influence in award
ing Government contracts:
1. A House Armed Services Sub
committee moved into the inves
tigation by deciding to call on
Secretary of the Army Gray for
information on any “five-per
centers” who may have been con
nected with the military uniform
Served as FBI Agent.
2. John Maragon, onetime Kan
sas City bootblack, whose activi
ties are being scrutinized by the
Senate group, was revealed as
having served a brief time in 1923
as a special agent when the FBI
was headed by William J. Burns.
FBI spokesmen emphasized that
Mr. Maragon has had no connec
tion with the agency since J. Ed
gar Hoover became its director in
Roger C. White, counsel for Mr.
Hunt, made public an exchange
of letters with Chairman Hoey of
the Senate subcommittee in which
Mr. White demanded the return
of a Hunt diary and files or com
plete access to them.
The diary, a record of Mr.
Hunt’s activities as a manage
ment counsellor here, is reported
to have afforded the Senate in
vestigators considerable informa-1
tlon in their inquiry.
Senator Hoey told Mr. White
he was very anxious to co-operate
with him because “it is my feel
ing that in the exercise of the
subpoena power, Congress should
in no way unreasonably hamper
any company in the conduct of
its regular business.”
“Not in Public Interest.”
He offered to give a representa
tive of Mr. Hunt's company com
plete access to all his records for
use in connection with Mr. Hunt’s
business and to return any rec
ords needed for the business “un
der some suitable arrangement
agreeable to both the company
and the committee.”
Senator Hoey also proposed that
If the records were needed by Mr.
Hunt to -prepare for public hear-:
ings, the committee would arrange
a convenient time and place lor
them to be examined.
"It is felt, however,” Senator
Hoey added, “that to give repre
sentatives of the J. G. Hunt Co.
the right to unlimited and unre
stricted use of the documents at
this stage of the investigation
would tend to hamper the orderly I
process of such an investigation I
and would not be in the public in
Mr. White said in his letter to
Senator Hoey that practically
every scrap of paper owned by
Mr. Hunt or his company had
been delivered to the committee.
Refused Access to Files.
In his letter Mr. White said he
was refused permission to examine
the flies and records unless he
signed a letter agreeing not to rt
veal contents of the files to any
one else, particularly to Maj. Gen.
Alden H. Waitt and Maj. Gen.
Herman Feldman, who have been
suspended from duty pending the
outcome of the inquiry.
Names of Gen. Waitt, who head
ed the Army’s Chemical Corps,
and Gen. Feldman, the Quarter
master General, appeared in the
Hunt diary.
In the House phase of the in
vestigation, Representative He
bert, Democrat, of Louisiana, said
Mr. Gray will be heard in a closed
session tomorrow.
Tells of Rejecting Deal.
The House group had planned
to hear 8tanley J. Cummings, ex
ecutive secretary of the National
Association of Uniform Manufac
turers, Inc., today. But Mr. He
bert said the subcommittee was
unable to get in touch with him.
Mr. Hebert said Mr. Cummings
told him personally three weeks
ago of having been approached
by Mr. Hunt in connection with
a pending Army order relating to
the manufacture of officers’ uni
The Representative said he was
told that *Mr. Hunt offered—for
$25,000—to try to get Gen. Feld
man to rescind an order relating
to Army plans for manufacturing
uniforms. Mr. Cummings turned
the deal down because his asso
ciation could not afford the fee,
Mr. Hebert said.
V/ife Hurls Clock
At Husband and
Hits Policeman
By th* Aneciated Preis
BALTIMORE, Aug. 3_John
Diana, 32, and his wife Rosalie,
21, had to go to Police Court yes
terday on a charge of disturbing
the peace.
Mrs. Diana explained they were
having an argument.
"He made me so mad,” she said,
“that I grabbed the alarm clock
and threw it at him, but he
ducked, the bum.”
Mr. Diana ducked, all right. In
fact, the clock went flying out a
closed window and hit a passing
policeman on the shoulder. He
arrested them and brought them
to court.
Magistrate Leroy Shaughnessy
laughed at Mrs. Diana’s story,
then asked the couple how long
they had been married.
Sixteen days, they replied.
"Sixteen days!” the judge ex
claimed. "Gosh knows what you’ll
be doing after 16 'years. Case
POLITICIANS ENJOY BEAR FEAST—Secretary of Defense Johnson (second from left) holds a
bear rib while Senator McGrath, Democrat, of Rhode Island (second from right) talks to the
host, Representative Boykin, Democrat, of Alabama (right) at last nights dinner for Speaker
Rayburn at the Hotel Washington. W. Averell Hardman, Marshall Plan ambassador, is at the
left. Guests were fed bear, venison, raccoon and bison. —AP Photo.
- 4___
Political Opposites Join to Fete
Rayburn, Feast on Big Game
By George Kennedy
There was a serious note sound
ed by speaker after speaker de
spite the high revelry of the oc
casion at the dinner given to
Speaker Rayburn last night by
Representative Frank Boykin, the
genial Democrat from Mobile,
“We are here demonstrating
America at its best," said Repub
lican Representative Joe Martin
of Massachusetts as he looked over
the love feast of Democrats and
Republicans in the big dining room
of the Hotel Washington. The
former Speaker mentioned the
Nation’s difficult position in the
world and remarked what a sign
of strength it was that "men of
different parties, ideas and ideals”
were together breaking bread of |
good fellowship.
Every one from the Capitol w'as
there, it seemed. Senators Taft
and Connally, who have debated
vigorously against one another on j
the Atlantic pact and arms for
Europe, were among those at the
front tables.
The name that brought the big
gest applause among all the
“name” guests introduced was
that of Gen. Lucius Clay, Just back
from the difficult job of running
the American military government
in Germany.
There has been some confusion
over whether Mrs. Gwendolyn Ca
fritz or some other estimable lady
has succeeded Mrs. Perle Mesta as
Washington's No. 1 hostess. But
there is no doubt as to the identity
of Washington's leading host—
Mr. Boykin. • ■.••••
As John McCormack of Massa
chusetts said from the speakers’
table, it was the most unusual
party he had known in his 23
years here. .
The snacks served en buffet
along with Scotch and bourbon
before the steak dinner wefe “vin
ison from Alabama, elk from
Montana, bear from Okeefenokee,
antelope from Chugwater, coon
and possum from the Gulf coun
try. Chef Pierre Mendiondou of
the Washington had marinated
the portions of big game for .days.
Mr. Boykin, who made a for
I tune m naval stores <tnats tur
pentine i before coming to Con
igress 14 years ago and whose
! motto is "Everything’s made for
| love," personally greeted each of
| his 750 guests and later picked up
jthe check which came to a little
|more than $10,000.
The host took special pride in a
long telegram from Winston
Churchill regretting that he was
unable to take a plane to the party.
Charles Ross, the President’s
press secretary, said Mr. Truman
had been very tempted by the
party, but was being a family man
last night as his wife had just re
turned from Independence, Mo.,
and they had house guests.
Everybody else was there, from
Washingtons superintendent of
police, Maj. Robert J. Barrett, to
French Ambassador Henri Bonnet.
Vice President Barkley was toast
Attorney General Clark and
Senator McGrath, who announced
Monday that they would accept
their appointments to the Su
preme Court and the Attorney
Generalship, were among the
speakers. Chief Justice Vinson,
who was a member of the House
for years, delivered the principal
encomium on the Speaker.
“Men do not become leaders of
the House of Representatives by
accident,” he said. “In some re
spects the House is one of the
fairest of juries. But it can be a
cruel critic. Sam Rayburn has
won both the affection and re
spect of that jury.”
Although Mr. Barkley had an
nounced thU.tfre 5-minijte rute.Of
the House,- instead- of the un
limited speech making of the
Senate would apply, it was close
to midnight when the guest of
honor was called on. The familiar
bald head popped up and the
Speaker said:
’ “I can’t tell funny stories—never'
He then told very simply about
his long service as a legislator
42 years, six of them in the Texas
Legislature before he came to
Washington. He was Speaker there
in his 20s. He thanked his host
and thanked the guests for com
ing. The House of Repre
sentatives, he said, will do its duty.
Romania Asks Recall
Of British Diplomat
•y tht Associated Pf«i
BUCHAREST, Romania, Aug. 3.
—The Romanian government yes
terday requested the recall of
Roderick Sarrel. British charge
d’affaires here, for “activity con
trary to the laws of the Romanian
popular republic and diplomatic
(Last week in London a
Foreign Office spokesman de
scribed Mr. Sarr^l’s arrest by
Romanian police as “inexcus
able.” A Foreign Office source
said last night the affair ap
peared to be “an obvious plant
designed to discredit Mr. Sarrel
and the British government.”)
(The diplomat’s report on his
arrest said Romanian officials
confronted him with an alleged
confession of a minor employe
of the British Legation, assert
ing the legation was being used
to help several anti-government
nationals to escape Romania.)
The Romanian News Agency
said the request for Mr. Sarrel’s
recall followed the arrest last week
of a “gang of black-marketeers
and smugglers” who the agency
said admitted they wanted to leave
Romania illegally for Vienna and
were being helped by the British
Mr. Sarrel is a 36-year-old
British career diplomat. He for
merly served in the Middle East.
Brazil was the only South
American country to declare war
on Germany in World War I.
Fort McKinley Given
To Philippines by U. S.
By the Associated Press
MANILA, Aug. 3.—The United
States Army today delivered Fort
William McKinley to the Philip-,
pines government.
The post, on the outskirts of
South Manila, had been used by
American troops since 1902.
The American flag was lowered
at the fort last June 24 at a
final retreat formation when the
use of the military reservation
came to an end.
Besides the improvements on
the main post at Fort McKinley,
the {.ransfer today included bar
racks and two hangars at Nichols
Field, an officers’ club area and
the 4th Signal Service Area.
Congress in Brief
By the Auecioted trill
Meets on foreign aid spending
Public Works Committee will
hear Secretary of the Army Gray
on Columbia Valley Authority bill.
Banking subcommittee con
tinues hearings on Reconstruction
Finance Corp. bill.
Executive Expenditures Com
mittee considers reorganization
plan creating a Welfare Depart
Considers miscellaneous legis- ,
Foreign Affairs Committee con
tinues arms and hearings.
Armed Services Subcommittee
takes up ‘‘five-percenter” inquiry.
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Scotch Bourbon
Salmon from Quebec
Venison from Alabama
Elk from Montana
Bear from the Okeefenokee
Turkey from Georgia
Antelope from Chugwater
Coon, Possum and Taters
Alabama's First District
“Everything's Made for Love”
Sheep and Champagne
The game above was served
merely as hors d’oeuvres be
fore a four-course steak din
Weather Report
District of Columbia — Partly
cloudy and humid with brief and
scattered showers likely this after
noon and evening. High this
afternoon about 88 and low to
night about 74. Tomorrow some
cloudiness and continued warm
with scattered afternoon showers.
Maryland, Virginia — Partly
cloudy, warm and humid with
scattered showers likely this eve
ning and again tomorrow after
noon or evening.
River Report.
(From U. 6 Engineers >
Potomac River clear at Harpers Perry,
and at Great Falls: Shenandoah clear
at Harpers lerry.
(Readings at Washington National Airport.) i
Yesterday— Pet. Today— Pet '
Noon -66 Midnight _82 ’
4 p.m. - 63 8 a m. _87
8 p.m. - 72 ' 1 p.m. _63
High -.nd Low for Yesterday.
High, 89. at 2:06 pm.
Low, 73, at 6:46 a m.
Record Temperatures Tbit Year.
Highest, 96. on July 26.
Lowest. 21, on January 30.
Tidt Tablet.
(Furnished by United States Coast and
Otodetlc Survey.)
Today. Tomorrow.
High __.. 3:63 a.m. 4:57 a.m.
Low -10:59 a.m. 12:01p.m.
High - 4:21p.m. 5:30 p.m.
Low _ 11:08 p.m. _
The Sun and Moon.
Rises. Sets.
Sun. today _ 6:10 8:18
Sun. tomoriow_ 6:11 8:18
Moon, today .. 4:08p.m. 12:63a.m.
Automobile lights must be turned on
one-naif hour liter sunset.
Monthly precipitation In Inches in the
Capital (current month to date):
Month. 1949. Avg. Record. I
January _ 5.08 3.65 7.83 37
February _ 2 68 3.37 6.84 '84
March _ 3.42 3.76 8.84 ’91
April _ 1 94 3.27 9.13 ’89
May _ 6.33 3.70 10.69 '89
June _ 2.42 4.13 10.94 ’00
July _ 4.22 4.71 10.63 ’80
August _ 4.01- 14.41 '28
September _ _ 3.24 17.46 '34
October _ ... 2.84 8.81 '37
November _ _ 2.37 8.09 ’89
December . 3.32 7.56 ’01
Temperatures in Various Cities
Albuquerque. 91 62 Miami ... 86 74
Atlanta . 84 70 Milwaukee 75 59
Atlantic City 8o 76 New Orleana 89 72
Bismarck_ 79 55 New York_ 79 72
Boeton. 78 68 Norfolk . 86 74
Buffalo_ 86 66 Oklah'a City 88 64
Chicago __ 80 62 Omaha_ 81 57
Cincinnati.. 87 67 Phoenix .. lio 81
Detroit_71 66 Pittsburgh _ 86 69
Galveston .. 92 70 Portland_ 75 64
Harrisburg.. 86 72 St. Louis . 80 66
Huron .. 82 60 Salt L’e City 94 86
Indianapolis 83 66 Ban Antonio 101 67
Kansas City. 83 61 San Pran'sco 63 54
Los Angeles. 98 67 Seattle_ 76 61
Louisville . 89 66 Tampa__ 83 78
MacArfhur Winds Up
Program to Break Up
Zaibatsu Holdings
By the Associated Press
TOKYO, Aug 3.—Gen. MacAr
thur’s controversial program for!
breaking up Japan's economic
giants endec* today. The Allied
occupation commander said it was
“accomplished effectively.”
Eleven big corporations were
tagged for deconcentration by a
five-man review board which came
here from Washington 15 months
ago to make recommendations on
525 Aims listed as "excessive con
centrations.” The board recom
mended divestment of certain
holdings for nine others.
The 325 companies were se
lected for board action out of
about 1,200 which Ijad been af
filiated with the Zaibatsu holding
! companies. Through this power
ful setup, headquarters said, “a
small number of families exer
cised all-pervasive control over
the industry, commerce and
finance of Japan.”
From its beginning, the de*
concentration program was a mat
ter of hot international and
domestic debate. In the United1
States, as well as in Japan, some
called it “socialization.” Others
criticized it as “fragmentation of
A press statement issued today
by Gen. MacArthur's headquarters
“The elimination of monopolistic
economic power which dominated
prewar Japanese life has been ac
complished effectively without ad
verse effect upon, and no ‘frag
mentation’ of, finance or industry.
"On the contrary, competent
observers point to the 50 per cent
increase in production along with
considerable progress toward
stabilization during the past year
as evidence of the growing health
of the Japanese economy.”
Some observers in Japan have
called the program a success.
Others have labelled it a failure.
Board Chairman Joseph Robin
son held a news conference after
Gen. Mac Arthur announced the
board's task was completed and
its final report submitted. Mr.
Robinson declared:
“I feel there is in Japan today
no excessive concentration of
economic power. I know of no
job where a monopoly has been
dealt with so successfully without
adverse effect on finance or in
Mr. Robinson was asked if he
| felt former tycoons of Japanese
industry had maintained control
under cover or through puppets.
He replied:
| “If any still exercises any de
gree of control over industry, I’d
be greatly surprised.”
The final result of the board’s
work is this:
“Eleven enterprises were recom
mended for structural reorganiza
tion; three were required to dispose
of specified plants or stock hold
ings, two were referred to the
Fair Trade Commission with
specific recommendations regard
ing their trade practices, two were
recommended, for complete re
organization through industry
wide action, one was required to
divest itself of governmental pre
rogatives.” •
Mr. Robinson said much had
been done to break up the tena
cious grip of the few families on
Japan's economic life before his
board was created. Imperial
ordinances and anti-Zaibatsu
measures completed by other
agencies destroyed the top holding
companies, he said.
Mr. Robinson cited industries
for which deconcentration was
recommended as including heavy
industry, steel, beer, paper, mining
and electrical.
British Woman Dies
Near 105th Birthday
By tha Associated Press
LONDON, Aug. 3—Miss Milli
cent Theresa Gordon, who had
passed the century mark, died
Monday night at Hampton Court,
near London. She would have
been 105 August 25.
Miss Gordon met Bismarck and
had heard of the , battles of
[Trafalgar and Waterloo from
! officers who were there,
j The oldest person listed In
;Debretts Peerage, she was the
daughter of the late Lord Henry
Gordon, fourth son of the ninth
Marquess of Huntly.
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The Federal Spotlight
Civil Service Friends Win Senate
Restoration of $2,500,000 Cut
6/ Joseph Young
A furious last-minute, behind-the-scenes campaign has turned,
the tide for the Civil Service Commission and saved it from a $2,500,-,
000 reduction in funds that would have cut its staff by 500 employes,'
with repercussions throughout the entire Federal service.
The Senate the other day, by a vote of 41 to 38, had reversed the
recommendation ox its Appropria-1
tions Committee and voted to I
sustain the $2,500,000 cut in the!
commission's 1950 budget re-1
quest that was
ordered by the
That’s when
the commission
and its friends
went to work.
The various
tions, which
have always
a strong com
mission, and
ment employe
unions such as the AFL American
Federation of Government Em
ployes and the National Federation
of Federal Employes, began mak
ing the rounds of Capitol Hill.
Senators who had voted against
the commission, as well as those
who had failed to vote at all, were
contacted and urged to vote the
“right way.” Consequently, Sen
ator Gillette. Democrat, of Iowa,
one of those who had voted against
the commission, yesterday asked
the Senate to reconsider its action.
This time, the result wasn't even
close. The Senate voted 51 to 40
to give the commission the addi
tional $2,500,000 it asked for.
• * * *
GIBE—The Navy Department,
which has had to take in silence
the various defense unification
moves relegating it to a less power
ful position, had this sign the
other day over its press room door:
“Through these portals pass the
most unified men in the Nation.”
Senate Labor Committee has ap
proved the measure to increase
substantially injury compensation
benefits for Government employes.
The committee's bill is similar
to the House-passed measure, ex
cept for a provision to limit the
monthly amount of injury pay
ments to $545. This limitation
won’t affect most Government em
ployes, since a person would have
to earn at least $8,500 a year to
get more than $545 in monthly
injury benefits.
The Senate group's bill also in
cludes members of Congress. The
House-approved measure doesn’t
include the lawmakers.
Employe leaders are hoping the
Senate will take quick action and
then send the measure to House
Senate conference, where the com
paratively minor differences can
be ironed out. Those who studied
the bill closely say it would provide
the most liberal workman com
pensation benefits in the world—
a great improvement over the
present Federal injury payment
benefits, which are limited to $116
a month.
selection of the new chairman of
the Civil Service Commission is
about a month away.
President Truman is scheduled
to make the selection about Sep
tember 1. Mr. Truman wants to
wait until the reorganization plan
affecting the commission becomes
law before making the appoint
It’s reported no decision has been!
made yet, but the following are
said to be receiving the most
serious consideration:
Donald Dawson, the President's1
administrative assistant on per-1
sonnel matters, who probably will
get the job unless Mr. Truman!
decides he is more valuable to him
in his White House capacity;
Henry Iler of the Federal Security
Agency; Robert Smith, former
Labor Department personnel direc-,
tor, now a Pullman Co. official;
former Representative Robert
Ramspeck of Georgia, who is now
an airline industry official: Gordon
Clapp, chairman of the Tennessee
Valley Authority, and former Rep-!
resentative Jennings Randolph of
West Virginia, also an airline
Both Mr. Ramspeck and Mr.
Randolph are former chairmen of
the House Civil Service Committee.,
Neither is seeking the job, but,
a lot of their friends feel either
one would make an excellent com
mission chairman.
PAY—Legislative and judicial
employes also will be taken care
of by Congress in the event it
approves general Federal pay re
Incidentally, a move also will be
made on the Senate floor to in-1
crease the salaries of members of,
Congress from the present $15,000
to $20,000 or $25,000 a year.1
Privately, many Senators and
Representatives say they feel 'they
deserve a pay boost because the
Government’s top officials are in
line for a raise that will give them
more money than members of
Congress are making.
The rub is that most lawmakers
don’t w'ant to make the initial
move toward raising their own
pay. They feel that it might be
the political kiss of death.
Meanwhile, Chairman Murray
of the House Civil Service Com
mittee says he is in favor of re
vising his $50 average reclassifica
tion bill to give lower-salaried
employes a little better break The
increases wouldn’t be much, but
they would be a little better than
the $1.72 or $6.48 yearly increases
that some of the lower-salaried
workers would get under the
original bill. The committee is
expected to report its bill either
Friday or Saturday.
(Be sure to listen in Sundays
at 11:15 a.m. over WMAL, The
Star station, for Joseph Young’s
broadcast version of the Fed
eral Spotlight, featuring addi- '•
tional news and views of the \
Government service.)
Senate Votes 2 Curbs
On AEC in Passing
7i-Billion Funds Bill
The Senate voted two curbs on
the Atomic Energy Commission be
fore passing the $7,600,000,000 in
dependent offices bill late yester- *
The restrictions placed on the
Atomic Energy Commission would:
1. Require an FBI check of all
students receiving fellowships from
the commission for scientific re
2. Require the commission to
get Budget Bureau approval be
fore starting any new construc
tion projects costing more than
$500,000. The Budget Bureau
would be directed to advise Con
gress of its action in such cases.
These and other amendments
made by the Senate during its
five-day battle over the Independ
ent Offices bill must go to con
ference with the House.
House O.K. Expected. »
The House is expected to accept
?the Atomic Energy limitations.
Although both limitations were
i drafted in an Appropriations sub
! committee headed by Senator
O'Mahoney, Democrat, of Wyom
ing, they are an outgrowth of the
general investigation of the com
mission's work by the Joint
: House - Senate Atomic Energy
Committee. The Independent
Offices bill carries the annual
' funds for the Veterans Adminis
| tration, the Maritime Commission
! and a score of other separate
| agencies.
The requirement for an FBI
checkup on AEC fellowship ap
pointees is an outgrowth of the
disclosure last spring that Hans
Freistadt, an avowed Communist
at the University of North Caro
lina, had been awarded a fel
Shortly after the Freistadt case
became public, the National Re
search Council, which administers
the multi-million-dollar fellow
ship program for the AEC, agreed
; to require a loyalty oath and non
Communist affidavit from fellow
ship candidates.
Strengthens Safeguard.
But many Senators thought this
did not go far enough. So Senator
O’Mahoney prepared a stronger
His amendment specifies that no
part of any appropriation for the
;AEC shall be used to confer a
\ fellowship on “any person who
, advocates or who is a member of
jan organization or party that ad
, vocates the overthrow of the Gov
ernment of the United States by
force or violence.” It provides for
the FBI check of candidates and
makes violation of the amendment
a felony punishable by a $1,000
fine, one year imprisonment, or
j Senator O’Mahoney said the
■spending amendment provides for
“closer supervision” by the Budget
Bureau and Congress over funds
granted to the AEC.
Jupiter, the largest planet mov
ing around the sun. is more than
! 1,300 times bigger than the earth,
on sole Thursday at 9 a.m.
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$65 Sports Jackets-32.50
Closed Saturdays During August

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