Evening star., 1946-03-21
Senator's 10 Continue
Probe Of vardamdn's 5
Past Business Deals
BY the Assoeiossd Press

Senators who heard references
to burned statements, a farm
mortgage and "jimmied" file
cabinet called for more testimony
today concerning past business
transactions of Commodore
James K. Vardaman, jr., Presi-
dent Truman's naval aide.
Frank o. Bittner, jr., st. Louis
shoe manufacturer, who answered
questions at two sessions yesterday,
was summoned back before the Sem
at Banking Subcommittee consider
ing Commodore Vardaman,s nomi-
nation to the Federal Reserve Board.
Senator Donnell, Republican, Of
Missouri, leading the fight against
Commodore Vardaman, read q
memorandum late yesterday which
said that Commodore Vardaman and
Frank Williams, attorney for Mr..
Bittner, stepped into a toilet room"
Of Williams's law Office in st. Louis
and burned two signed statements" !"
oAssACk N1hAI1S EIAuQs
This was done, Senator Donnell
said, to settle Bittner's claim"
against Commodore Vardaman in
volving the sale Of 9,375 shares Of
stock In the Vardaman Shoe Co.
Mr.. Bittner told the Senators earlier
he had been "defrauded" on this
stock sale.
Senator Donnell said the signed
statements were burned after Com
modore Vardaman ION Cliffords
advice" gave Mr.. Bittner a mortgage
Ion farm owned by the Navy officer.
Navy Capt. Clark Clifford is Com
modore Vardaman's assistant as
naval aide and has been serving as
his counsel at the hearings.
Senator Donnell also brought the
name of Democratic National Chair
man Hannegan into the hearing,
but Mr.. Bittner said he had not
talked to the party chairman who
also Is Postmaster General.
Asked Not to Oppose Choice.
Instead Mr.. Bittner said a friend
Of his. also knows Mr.. Hannegarl
asked Mr.. Bittner to call at a st.
Louis hotel room. When he did, Mr..
Bittner said Walter Wulfner, a st.
Louis coffee man, and second man
named Macy" urged him to not
oppose Comdr. Vardemans nomina-
ton.
Senator Donnell said Richard
Macy is an aide to Mr.. Hannegan,
but the Democratic National Com
mittee later issued a statement by
Mr.. Macy, executive vice chairman,
denying he had ever talked to Bitt-
ner and adding:
IF any one spoke with Mr.. Bitt-
ner and represented themselves to
be Richard r. Macy, they were an
impositor."
Mr.. Bittner also testified that a
Federal court suit to recover $2,804
in funds of the Vardaman Shoe Co.
from Commodore Vardaman was
dismissed over his protests because,
he was told, the judge was an in
innate friend of Vardaman."
Informer by Lawyer.
He said his informant was Will
liam r. Gentry, veteran st. Louis
lawyer who served as trustee for the
Vardaman Shoe Co. when 1t was re-
organized in bankruptcy with Mr.
Hittner becoming the new PRESIDENT 4
Mr.. Gentry at an earlier hearing
testified he dropped the suit be-
cause the bank financing the new
company wanted it to be free from
any litigation.
Commodore Vardaman in previous
testimony about the suit told the
committee he had BEEN gexonerateda
by both his bonding company and
the ONCE of Naval Intelligence.
The "jimmied" file case was re-
ferred to by Mr.. Bittner as having
contained an inventory which en-
ployes later told him was padded"
Senator Donnell said he would
ask Commodore Vardaman about
this matter later