Evening star., 1946-02-19
Committee 10 Study
Request 10 Call 2S in
Vardaman Hearinu
By Joseph Young

By Joseph Young
A Senate Banking Subcommittee
today called an executive session fol-
2:30 pm. to act on Senator's request
that it subpoena 28 more witnesses to
testify on the qualifications of Com
modore James K. Vardaman, jr.
naval aide to President Truman, to
be director of the Federal Reserve
System.
The request for extended hearings
was made by Senator Donnen, Re
publican, of Missouri, who asked that
former business associates of Com
modore Vardaman be called as wit
neSses.
Subcommittee Chairman Radcliffe
indicated in advance of the executive
meeting that the committee would
not issue subpoenas for all % wit
nesses.
Suggests Getting Letters.
I'VE haven't time to hear all these
witnesses" Senator Radcliffe told
Senator Donnell. Cant you get
letters Of opinion from various busi-
nessmen in st. Louis regarding Com
modore Vardaman without bringing
them here?"
Senator Radcliffe informed Sena-
tor Donnell that the committee was
anxious to hear any witness who
could give definite information re-
garding Commodore Vardaman's
qualifications for the job. His view
point was seconded by Senators Mil
llkln, Republican, of Colorado. and
Mcfarland, Democrat, of Arizona.
At the committees request, Sena.
tor Donnel listed the names of each
person he wishes subpoenaed and
explained what light they could
throw on the subject.
Senator Donnell placed the group
OF witnesses into two groups: Bank
ers and businessmen who could give
an opinion of Commodore Varda-
mans fitness, and business asso-
ciates of Commodore Vardaman who
could relate information about
various incidents in his career.
Tells of Affidavit.
Senator Donnell said he under
stood" that Frank o. Bittner, ir,.
manager of the st. Louis shoe firm
that Commodore Vardaman for
merly headed, was In possession of
an affidavit bearing on Commodore
Vardaman's activities with the COM
pany.
II don't know if there is any,
thing to it, but I do think Mr.. Bitt-
ner should appear before this COM
mittee and relate the facts" Sena-
tor Donnen said.
A suit for misappropriation Of
company funds brought against
Commodore Vardaman by a trustee
OF the shoe company was given as
another reason by Senator Donnell
as to why officials of the shoe firm
should be called as witnesses. Al
Though the suit later was dropped
by the trustee without court action,
Senator Donnell said that witnesses
should be called to determine why
no action was taken.
foAA AACAs WAlAdlu ". 1eIlIIys VINO
was appointed trustee of the shoe
company after it became insolvent,
testified that the suit was dropped
after the firm was reorganized and
had Settled up" with its creditors.
Quizzed on Shoe Company.
The latest Of President Truman's
nominees to run into trouble over
Ser xate confirmation, Commodore
Vardaman was closely cross
examined during yesterdays open
ing session regarding various finan-
cial transaction.
The beribboned, gray-haired wit
ness emphatically denied he had
anything to do with the tampering OF
inventory records of the shoe COM
pany he headed.
He told the committee he had
been completely exonerated" on
charges of "misappropriation of
funds" Commodore Vardaman said
the charges were investigated by his
bonding company and the Ofice of
Naval Intelligence and that he was
completely exonerated by both.
Under questioning of Senator
Donnell the witness acknowledged
that he continued as president of
the company and drew his salary of
$500 month and per cent of the
firms profits until the company
became insolvent The witness also
said that during this period he
signed necessary business papers for
the firm,