The Waterbury Democrat., 1946-12-18

Washington, Dec. 8--tUP)-Sen Theodore G. Bilbo's former secretary testified today that @ war contractor willingly turned over S25,000 to the Mississippi Democrat because he fig- ured he could deduct it from his in- come tax.
 Edward P. Terry, for seven years Bilbo's private secretary, told a Senate War Investigating Subcom- mittee that Mississippi war con- tractors gave him or the Senator various sums for various purposes, including payment of Bilbo's ali- mony debt.
 Terry told of gifts from war con- tractors totaling S3S,750.
 The S25,000, Terry said, came from Felix T. Newton, one of a group of contractors who shared in a $14,000,000 job Bilbo helped them get at Keesler Army Airfield at Biloxi, Miss. The money, he said, was for the unsuccessful runof pri- mary campaign of former Sen. Wall Doxey, whom Bilbo was supporting.
 Paid in Four Checks
 Newton, according to testimony before the subcommittee, paid the money to Bilbo in four checks on Sept. 2, l942.
 Terry testified he was called into a hotel room where Bilbo and New ton were talking. He said the Sena- tor instructed him to type the checks out on 6 typewriter and make them out ito me-Theo. B. Bilbo."
 The next morning, Terry con- tinued. he had breakfast with New ton and remarked casually to the contractor that he had been held up."
 Newton, Terry testified, replied: "Oh, well, hell, I can charge them out on income tax"
 Nothing About Fee
 Terry said Newton said nothing about it being flee" for Bilbo. He added that Doxey, now Senate sergeant-at-arms, was surprised when he and Newton told him later about the $25,OO0. Terry concluded this phase of his testimony with this remark:
 That is all the information I have about the $25.O00."
 Earlier Terry had told of an agreement by A. B. Friend, former Bilbo campaign manager turned contractor, to pay the secretary $4,350 for helping him get $2,000,- co contract at the Armys Key Field in Meridian, Miss.
 He said $3,6OO of this sum was to compensate Terry for money spent on Bilbo's l94O campaign. And S75O was to pay one-fourth Of a $3 600 debt the Senator owed Abe l.. Shushan, New Orleans dry goods wholesaler and political associate of the late Huey Long.
 Aided In AlimOny
 Shushan had lent the money to Bilbo on a note to help the Senator pay an aliinony debt owed his tor- mer wife, Terry testified.
 Terry said Bilbo did not expect at first to have to repay the note. But the Senator failed in an att tempt to help Shushan out of in- come tax difficulties with the Gov ernment, Terry said, and the New Orleans man threatened to sell the note to Bilbos political opponents.
 So Terry and some contractors Bilb0 had helped got together and paid of the note, the witness said.
 Shushan subsequently, settled a civil income tax action against him in New Orleans, but apparently without any help from Biibo.
 Refused By Rogge
 Terry said Shushan came to Washington early in 1899 and had a private talk with the Senator. What they talked about, Terry said. T do not know"
 Terry said he later made an ap- pointnent for Bilbo to see an assist ant attorney general and accom- panied the Senator to the Justice Department. He said that O. John Rogge, then special assistant at- torney general in charge of the Shushan case, told them nothing could be done"
 At this point Sen. Homer Fergu- son, R.-Mich.), suggested, "then in effect the $3.O00 Shushan note was to be paid by the contractors on Key Field"
 "Yes." Terry said.
 Terry came here from Mississippi today to appear before the commit tee. He has said that he and his wife