Evening star., 1946-03-23
|Vardaman Affidavit
Originals DESTROYED,
Senate Hearing Told
BY the Associated Press

Originals of affidavits sought by
Senators considering qualifications
Of Commodore James K. Vardaman,
jr., for the Federal Reserve Board
were destroyed, a Senate Banking
Subcommittee was told late yester-
day.
IAN attempt was made to burn
them, but that was not feasible, so
they were torn up and flushed down
the toilet" Paul Decoster, former
controller Of the defunct Varda-
man Shoe Co., said in a day that
brought these developments:
Flat denials by both Mr.. Decos-
ter and Samuel E. Reyburn, former
Vardaman factory superintendent.
that they had any part in padded
or plugged" inventories, or that
Commodore Vardaman had asked
them to do this.
Comments by Senators McFar-
land Democrat, of Arizona, and
Millikin, Republican, of Colorado, to
Frank o. Bittner, jr., chief witness
against Commodore Vardaman,
about possible criminal prosecution
for perjury"
"Photostats" Produced.
Sharp exchanges over failure by
Mr.. Decoster, Mr.. Reyburn and Mr..
Bittner to remember details regard
ing the affidavits, and why repro
Iductions may have been made and
the originals destroyed.
Mr.. Bittner first brought COM
mittee attention to the affidavits by
producing a series of what Senator
Donnell, Republican, of Missouri,
first called "photostats of originals
OF affldavitS." They involved a set
Etlement between Mr.. Bittner and
Commodore Vardaman over sale of
stock in the shoe company less than
"a month before it was reorganzed
in bankruptcy in 1912.
Mr.. DecoSter, 42-year- auditor
and accountant, had difficult time
under questioning by Senator Dom
nell on a series of statements in
Mr.. Decoster's handwriting.
i don't know" Mr.. Decoster said
time and again between Il can't
recollect" or Il am not certain"
Finally the accountant conceded
that he had signed some statements
that were mot true" for Mr.. Bittner.
his new boss, to help Mr. Bittner
collect a claim against Commodore
Vardaman.
Recalls No Inventory Plugging
Senator Donnell, reading from
what he termed a "photostatic re-
production of the carbon COPY of the
original asked Mr. Decoster if
Commodore Vardaman had directed
changes in inventory.
Mr.. Reyburn was called to the wit
ness chair for similar questioning,
so he could catch a plane today
back to his shoe factories in Owens
vile, Mo. He denied knowledge of
any inventory plugging"
Mr.. Decoster, back on the stand.
conceded that he knew some in
ventories were all wet" and then
said he had tried to get his affi-
davit back
There was an agreement, the wit
ness said. that as soon as Mr.. Bitt-
ner and Commodore Vardaman
settled their stock sale claim the
affidavits would be destroyed. Il
thought everything that occurred in
that room was to stay there"
Mr.. Decoster previously had tes-
titled that the signature on the
reproduction was not his, while Mr..
Reyburn termed similar reproduc-
ton direct forgery"
Earlier Testimony Mentioned.
Senator Donneu recalled Mr.
Bittner to the witness chair to ex-
plain that the reproductions ac-
tually were of carbons on which a
notary had inserted the two names.
Senator Mcfarland confronted
Mr.. Bittner with his earlier testi-
mony that the signatures were
genuine
I saw them sign the originals"
Mr.. Bittner said.
Senator Mcfarland called Mr..
Bittner's attention to a telegram
from w. R. Gentry, trustee of the
Vardaman company while it was
reorganized, in which Mr.. Gentry
denied Mr.. Bittner's testimony that
a suit against Commodore Varda-
man had been dismissed because a
Federal judge and Commodore
Vardaman were good friends.
"Mr. Gentry said it to me- Nj
Bittner insisted. II remember j,
very WELL