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Senators Want Report
On GSA Worker Cited In 2 Investigations By Miriom Ottenberg Chairman Hoey of the Senate “five-percenter” committee said today he expects General Services Administrator Jess Larson to re port to the committee the results of his investigation into the case of a GSA employe whose name has figured in two different Senate inquiries into influence-peddling. Mr. Larson told the Senators yesterday he would be ‘ surprised” if it were the same man in both cases but the employe—Joseph Major—later told a reporter he “certainly would assume” he is the man named in both inquiries. Mr. Major's name was intro duced into the renewed "five percenter” inquiry yesterday by Senator Nixon, Republican, of California. A Joseph Major, Senator Nixon pointed out, was mentioned dur ing the sensational "five-per center” hearings as the War As sets Administration employe who steered surplus property custom ers to a “five-percenter.” Good Friend of Vaughan. Mr. Major testified at the time that he served briefly during World War I in President Tru man's old artillery outfit. He add LARSON TESTIFIES — Gen eral Services Administrator Jess Larson is shown testify ing at the opening of the new Senate inquiry into “influence peddlers.” —AP Photo. ed that ever since 1918 he had been a close friend of Maj. Gen. Harry H. Vaughan, the Presi dent's military aide. A Joseph Major. Senator Nixon went on, also was mentioned dur ing the Reconstruction Finance Corp. investigation recently. The diary of RFC Director Walter L. Dunham, produced at the Senate Banking Subcommittee's RFC hearings, noted that on Novem ber 4. 1949, White House Aide Donald Dawson “made an ap pointment for Mr. Dunham to see a Mr. Joseph Major, who is a very good friend of the Presi-: dent and Mr. Dawson, interested in application submitted by the Community Hotel Corp.” Commenting on the loan appli cation, Mr. Major told a reporter: “It was purely a question of trying to help a friend. I can't understand it. When you ate working for the Government and a friend asks you to help—why can’t you take 15 or 20 minutes to try to help? Maybe I’m naive or something, but it doesn’t seem W'rong to me.” Ised white House Entree. When Senator Nixon heard about this comment, he remarked that it ‘‘shows a complete lack of understanding of what the real issue is in his and all cases in volving influence—not what is legal but what is morally right and the proper thing for a Gov ernment employe.” ‘‘In this instance,” Senator Nixon added, ‘‘he made use of his White House entree and ap parently used the name of a top White House adviser in present ing a case which he was interested in to a Government official, who had to rule upon it.” Senator Nixon said Mr. Larson should be given a chance to con duct his own investigation of the case but he added that if Mr. Larson does not investigate and report to the committee, the Sen ators should look further into the case themselves and question Mr. Major. Public Hearings Later. The Senate Investigations Sub committee—formal name for-the group inquiring into influence peddling in defense contracts— plans to go behind closed doors for awhile to investigate individual cases of operators attempting to trade on their alleged influence with Government officials. Senator Hoey said if the staff develops any cases to the point where public hearings are desir able, they will be held later. The committee also plans to hold public hearings on negotiated contracts. For Falls Church Band A fried chicken dinner will be i«rved from 5 to 7:30 p.m. to morrow by the Palls Church High School Band and the parents’ club, the Band Aid, at the Oak Street Elementary School cafeteria. ) Pianos t (for Rent With Option to Buy Phone STerling 4900 JORDAN’S Corner 1 3th and G Sts. N.W. k Fulbright Hits Charges of RFC Whitewash (Continued From First Page.) from Representative Hays, Demo crat of Ohio. Senator Fulbright invited him to testify about his charges that Republican National Chairman Guy Gabrielson and two Senators, unnamed by Mr. Hays, tried tc influence RFC on $18.5 million in loans in the mid-1940’s to a com pany of which Mr. Gabrielson was president and legal counsel. Mr. Hays replied late yesterday that "the truth of what I said can be easily verified by you or any member of your subcom mittee.” Authorizes Statement. Senator Fulbright’s only public ; reaction was to authorize issuance of a subcommittee staff statement | that investigation "showed no in dication” Mr. Gabrielson or any one else exerted improper in fluence on those loans. The sub committee does not plan to look further into the matter in view of the Hays letter, he said. While another Arkansas Demo crat, Chairman McClellan of the Senate Expenditures Committee, w-as scheduling open hearings on President Truman's proposal for reorganization of RFC, Senator Fulbright declared he would fight any move to abolish the agency. The drive for abolition took on added steam in the Senate when ! Senators Byrd, Democrat, of Vir ginia, and Bricker, Republican, of Ohio, introduced bills to kill the Government’s multi-million dollar lending agency. GOP Loses on Reorganization. President Truman’s recom mendation for an RFC reorgani zation had a close call in the House earlier in the afternoon. Republicans, who made no secret; that they hoped eventually to abolish RFC, narrowly lost a move to reject the recommendation. They needed 218 votes for a con stitutional majority. Even witli the aid of 18 Democratic votes,1 they got only 200 in support of a 1 ; resolution to reject. The vote j against the resolution was 196. The reorganization plan, pro viding for a single administrator instead of the present five-mem ber board of directors for RFC, will take effect April 20 unless vetoed by either branch of Con gress. Senator Fulbright, whose sub committee issued a critical report of RFC that President Truman denounced as asinine, declared to day that the House vote indicated RFC has a good chance of sur vival. Texmass Attorney Testifies. Meanwhile Ross Bohannon, an attorney for the Texmass Petro leum Corp., testified for nearly two hours today before the Fed eral grand jury investigating the RFC. Mr. Bohannon, who was sum moned before the jury from his Dallas (Tex.) home, was followed by Carl G. Strandlund, pres RFC probe, who testified for more than two hours yesterday after noon. Mr. Bohannon testified before the banking subcommittee last February 21 that E. Merl Young, a former RFC examiner, offered to use his influence to help Tex mass get a $10.5 million RFC loan in return for an $85,000 fee. The Texas lawyer said he rejected the alleged offer of Young in January, 1949, and added that the oil firm got the loan anyway. Young firmly denied Mr. Bo hannon’s testimony and the con-, flict between the two witnesses! prompted one committee member, to declare: “One of these men is! lying.” The committeeman. Sen ator Tobey, Republican, of New| Hampshire, said at the time, "Some one is committing per-j jury.”_ Labor (Continued From First Page.) of the problems facing his stabili zation agency. He mentioned, it was said, the opposition of Cotton-State Sen ators to the new ceilings on raw cotton, the signing by labor and management of wage contracts which exceed pay ceilings, among other things. A few hours later Mr. Johnston turned down the 11-cent wage increase which had been won February 8 by CIO and AFL pack ing house workers. It would ex ceed the 10 per cent wage in crease formula by 8 cents, he said. Meat Workers Threaten Strike. Employes of the big meat pack ers had received another pay in crease last summer. The control formula sets a ceiling on pay raises of 10 per cent above levels of January 15, 1950. But the unions claimed that their mem bers had trailed workers of other industries in the matter of wage increases in other postwar years. Alter me jonnston action, Ralph Helstein, president of the CIO union, told reporters: “There will be a strike later if this is not approved." He said the union feels it is free to strike March 26, but that a strike date would be set later. Mr. Johnston said he will not tamper with the wage-ceiling formula and that he believes that such cases should be handled by a tri-partite board having labor, public and industry representa tion. The Wage Stabilization Boards which had such representation, has been unable to function since the three labor members resigned four fceeks ago in protest ovef the wage formula. Mr. Johnston said that until Iran (Continued From First Page.' tators in the chamber cheered and clapped for the vote. The vote was the climax of growing anti-British demonstra tions in recent months. It came one week to the day after Premier Ali Razmara, who opposed na tionalization, was assassinated by a Moslem fanatic who accused j the premier of selling the coun try to foreigners. British Feel Threat Is Grave. British diplomats and oil com pany officials, last fall openly scornful of the nationalization talk, now’ feel the situation grave ly threatens one of Britain’s major oil sources. The British embassy disclosed that Ambassador Sir Francis Shepherd called yesterday on Premier Hussein Ala to deliver a note on the nationalization question. An embassy source de scribed the note as friendly and said its contents would be an nounced in London. The company owns a 60-year concession which expires in 1993 on 100.000 square miles in Iran. labor and management agree on the basis for re-creating the board, he will issue no orders that seem to break through the pay ceiling. He has been trying hard to win an agreement but labor-manage ment differences continue. Labor insists that a new wage board should have authority to handle labor disputes as well as power to set w'age control policy. Industry says the board should have very limited, if any, dispute-handling authority. New Board Held Likely. Some officials believe that Mr. Johnston will establish a new wage board on his own if he is still unable to win agreement from labor and management by the week end. It also was believed that a wage board might have approved the packinghouse workers pay in crease under a provision of wage controls which allows exceptions in instances where workers have trailed in wage increases. In his off-the-cuff lecture to the mobilization board earlier in the day, Mr. Johnston was re ported to have been equally em phatic. as me story was tola by official sources, Mr. Johnston waggled his finger in turn at Secretary of Ag riculture Brannan, Secretary of Labor Tobin. Secretary of Com merce Sawyer, and Federal Re serve Board Chairman Thomas B. McCabe. Addressing each directly, Mr. Johnston said their actions fell short of the country's need when their own fields of interest were affected—Mr. Brannan in connec tion with farm prices, Mr. Tobin on wages, Mr. Sawyer on business earnings, and Mr. McCabe on credit financing. The Government's' leaders have the responsibility, Mr. Johnston went on. to set an example for the country. The stakes, he said, I are great—the success of the en tire defense program. After Mr. Johnston's talk, De fense Secretary Marshall was said to have told the group he agreed fully. Soaring prices are increas ing the cost of defense, lowering national morale, and jeopardizing the mobilization, he was quoted as saying. The session of the board, which was set up to advise Mobilization Director Wilson, was given over almost entirely to the stabiliza tion problem, it was learned. The shape is built-in for the life of the hat! Its good looks STAY that way! Only $7.50 Wear it now —for Easter .. . and right through April showers, high winds, low doorways —the shape stays smart, the felt stays smooth. Factory experts hand blocked that shape right into the hat. The felt is woven from rich, weather-resistant imported fur. And you’ve a choice of new spring colors, bound or welt edge. A terrific hat at only $7.50. Open Thursday Evenings Until 8:30 1335 F STREET N.W. See Bend's new television show "Hands of Mystery" on WTTG, Fridays at 9:00 P.M. mmmmm t * * >. mmams james f. McLaughlin. Guarded gambler against wire-tapping. Crime Probe (Continued From First Page.) of supply in Mexico and Califor nia. Mass arrests here and in Arizona partially cracked this operation in late 1941, he said. Luchese escaped punishment, he added. Television cameras, whose lights played over the hearing room, did not show Levine on the screen at the request of the narcotics bureau. Costello, threatened with possi ble perjury charges as a result of conflicting testimony over tele phone wiretaps, is slated to be called later today. Former Policeman Testifies. Following Mr. Levine, the form-! sr head of the New York City j police anti-rackets squad, Frank C. Bals, testified he never ordered investigations of well-known rac keteers. Bals, named a seventh deputy police commissioner during the administration of former Mayor William O’Dwyer, said he knew' underworld figure Joe Adonis had a “reputation of being connected” with rackets. He also conceded he never probed into the affairs of Costello. He said he and Mr. O’Dwyer, now Ambassador to Mexico, worked out the plan for the anti rackets squad, which Bals de scribed as “more of an informa tion squad.” The witness said he believed —AP Wirephotoi. SENATOR TOBEY. Weeps at Senate crime hearing. "some of the top brass of the po lice department are crooked.” Questioned About Death. Bals was questioned closely about the death of Brooklyn gang ster Abe Reles several years ago as a major witness in Brooklyn's Murder, Inc., case. Bals' description of the circum stances brought this caustic com ment from Senator Tobey, Re publican. of New Hampshire. "This whole thing is a tawdry mess, smelling unto heaven, and I don’t believe the whole truth will be told until judgment day.” Yesterday, James F. McLaugh lin, a former New York telephone company employe, told the crime committee that Costello several years ago paid him between $300 and $400 to check for phone wiretaps at the bigtime gambler’s residence. In earlier testimony yesterday, during three hours of questioning, Costello said he never paid any one to check for wire-tapping on his phone. Chairman Kefauver threatened to bring perjury charges. Offense Called Complete. Rudolph Halley, the committee’s chief counsel, said “the offense is complete” even if Costello takes it back today. i At the suggestion of an ac quaintance of Costello’s, McLaugh- [ lin continued, he did some wiretap checking on the telephone of Mr. O’Dwyer in 1945. In that year, Mr. O’Dwyer was campaigning — successfully — for Mayor of New York. The witness did not make clear whether Mr. O’Dwyer, himself,) had asked to have his phone ! checked or w'hether he even knew' it was being checked. Mr. O’Dw'yer, who resigned last year after being re-elected Mayor.j now is United States Ambassador to Mexico. He is scheduled to! appear before the committee at its final session here next Monday. At one point during yesterday’s hearing. Senator Tobey called for a return to religion. Tears stream ing down hi« face, he declared re ligion is just as important as a resolve for honest law enforce ment. The strange scene before the television cameras in the hearing room drew applause from some of the spectators. ’ Gray Lady Graduates Get Certificates Tonight Graduation exercises for 43 Red Cross volunteers who have com pleted Gray Lady training will be held at 8 o’clock tonight at Gal- | linger Hospital. Pins and certifi cates will be awarded. Other graduations for similar training will be held tomorrow' and ———— Saturday. At the United States Soldiers’ Home Hospital, six Gray Ladies and nine Arts and Skills Service volunteers will graduate at 8 p.m. tomorrow. At 2:30 p.m. Saturday, 51 Gray Ladies will receive the pins and certificates in the auditorium of the Home for Incurables. Of this group, seven were trained at the home and the others received training at Children’s Hospital, Episcopal Hospital, Garfield Hos pital, George Washington Univer sity Hospital and the Kabat Kaiser Institute. BRAKES R E L I N E D While Yon Wait Buick Spec. . £■■ ap Pontiac '41 l9|l>79 Olds 60 j ** _| f Other Care DOdge Equally Low Johns-Monville Lining Duplicate D. C. Testlnr Machine 1940-1950 PLYMOUTH Qg CLUTCH (Installed) *40 --- D. C. INSPECTION SERVICE WHEEL BALANCING—ALIGNMENT VAN NORT-^r ST. 5361 429 K St. N.W. Warren Davis, Prop. Open Sun., 9-4 rJUNKl WANTED NEWSPAPERS AUTO BATTERIES CARDBOARD RAGS CAST IRON COPPER LEAD WE WILL MEET COMPETITIVE PRICES GEORGETOWN JUNK CO. Rear of 3254 M Si, N.W.Adams 9211 9212 The MOST COMFORTABLE thing since bare feet! BOND'S AMAZING Wonder Walk SHOES FOR MEN 0 ► 10.95 « What foam rubber is to furniture, sponge rubber is to shoes. 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