The Wilmington morning star., 1946-08-19
Fair Enough
BY WESTBROOK PEGLER
(Canyrigh. by King Features, Incl

be recalled that Mr.. Warren discussed gov
eminent officials and employees and officers
of the Army who left the government service
for employment on better terms with private
interests with which they had had official
dealings on behalf of the government. Mr..
Warren deplored this practice.
Wallace O.. Heinze Was employed by the
government as director of the small war plants
corporation and in that capacity exerted him.
self to get contracts f1cni the materiel COM
mand Of the Army Air Forces for 5000 pneu-
matte life saving devices for the International
Latex Corrorationn at q price which the Army
service forces regarded as excessive. Brig.
Gen. Albert Browning, director of purchases
of the Army Service Forces, reported to the
Under Secretary of war or April 10, 1914, that
on February Is, 1913, the materiel command
received from smaller war plants a communi-
cation certifying International latex as a bidder
on 5000 1afts at $125 each. This figure was
not acceptable to the Army and International
and others later submitted further bids. In
ternationals price now dropped to SOL, the
highest OF the lot.
General browning reported to the under
secretary that Eeine. d few days later, tele-
phoned Wright Field at Dayton, Ohio, where
the procurement of these rats was being
handled, insisting on a contract for 5000 RATS
for International Latex. The Army still re-
fused to take the contract. General Browning
wrote for the record and smaller war plants
then took over the deal emo gave international
a contract for 5000 units at $85 each. He said
Internatioral's final, adjusted price was $72,
and that this figure was the highest OF six
orders with the exception of one other, by a
much smaller company having only IA en-
ployees at the time. This was the Anderson
Rubber Company, which quoted the same
price.
Having related the incidents and reported
the pressure from Heinze, General Browning
the War Department, officially. that,
a few months later, in September 1943, Heine
quit the government and became general man
ager Of he company whose interests he hao
so vigorously advanced. Heinze is now listes
as vice .president and general manager of In
ternatioral Latex, wiki a plant at Dover,
Delaware. His salary as a government Off
cial was about So, 900 a year. He has refused
to talk but doubtless could be required to tell
the facts by the Mead committee, including
the salary offered by international to induce
him to leave the government.
Abraham N. Spaniel, the PRESIDENT of the
International Latex, born in Russia, is an i'm
portant contributor to the propaganda of the
new deal, notably Henry Wallace, in the form
of a program of paid advertisement in a
large list Of newspapers, consisting of politi-
cal material. Heinze formerly operated in
Hollywood ard was, I understand, a tax con-
sultant tor movie actors and magnates.
Col. Phillips w. Smith, of the War Depart
ment, { Washington, stated that when he was in
Europe he was told by Major Mathew ]. Fox,
also formerly of the smaller war plants, that
there was white House PRESSURE" behind In
ternationa1's successful efforts to get contracts
at maximum prices. He said Major Fox, a
reserve officer, had formerly been connected
with Universal Pictures in Hollywood. Charles
q Rolte 1bo ch.jrrp an of tho ro1itico1 ,ceo,;,
ton OF war veterans, called the American
Committee, recently Unidentified
Mathew Fox, listed as a donor of 81, 900 to
the AVG as Mathew Fox of Universal Pic
lures"
Although International was classified as a
small corporation, it appears to be rich. 1t
sales offices in the Empire State building.
New York. and other Offices in Montreal and
London. There is a subsidiary called Ameri-
can Latex company and still another company
operates under patents controlled by Mr.. Spa
mel, who is a mar of large wealth. There is also
a Spaniel Foundation, described as a non-profit
organization, devoted to religious, charitable
and scientific purposes"
The foundation is a rich mans tax-gad-
get, now very popular among millionaires.
Thurman Arnold, { special assistant to the
attorney general and assistant attorney-gen-
eral until March is, 1913, was in charge of the
antitrust division. He was responsible for the
action to dissolve the Pullman interests and
to separate the company, which manufac-
lures pullman cars, from the operating CON-
pany.
The suit was successful and a special court
ordered the operating company sold to a group
OF railroads. The Department Of Justice ap-
pealed to the Supreme Court against this
sale and a group of private interests in Cleve-
land also objected, desiring to buy and oper-
ate the Pullman service themselves. Here the
of Justice appears as attorney for
the Cleveland interests. Mr.. Arnold, having
served briefly as : judge of the United States
Court OF Appeals for the District of Columbia.
resigned and reappearcd as private counsel
Tor the Ohio group. Although 1 had only asked
MN II this were true and did not impugn his
ethlcs, Mr.. Arnold wrote me an explanation
OF his ethical concept in the circumstances.
lnasmuch as we raised the question:, may
say l disagree.
Randolph Paul, a lawyer and tax expert, was
For several years general counsel of the United
States Treasury and tax adviser to Henry
Morgenthau when Henry was Secretary of the
Pau. was a ma1l OF powerful influ-
ence during his service there and il would
be unrealistic to believe that his prestige and
influence ceased abruptly. He appeared as
counsel for Elliott Roosevelt in July. 1915.
when the Treasury investigated the twisted
deal bv which President Roosevelt bilked John
Hartford. of the A and P grocery chain, out of
S196, 900 which Hartford had loaned to Elliott.
The disposition of the Treasury toward Mr..
par1 and Elliott was disclosed in an openino