Evening star., 1946-07-11

told Mr.. Meader by long distance
telephone what had happened.
Mr.. Paynter denied before the
committee Tuesday that he signed
or authorized or knew anything
about telegram sent to several
newspaper offices charging that
President Truman, Chairman Mead
and Senator Ferguson, Republican,
OF Michigan all had done what Mr.
May was accused Of doing-sought
war contracts for friends.
Two newspapermen contradicted
Mi. Paynter yesterday afternoon.
They were Benedict M Morgan,
Times Herald reporter, and Ben Gill
bert, city editor of the Post. Both
said they talked TO Mr.. Paynter
by telephone Saturday and that
he discussed the telegram, indicat-
ing clearly that he had sent it and
was familiar with its contents
Testimony Of Newsmen.
Mr.. Morgan said Mr. Paynter told
him he had sent the telegram out
as "a news lead" MI Gilbert tes-
tilted the publicity man told him
he had been retained by the Erie
Basin concern.
Chairman Mead. commenting on
the testimony of the two newspa-
permen. said he was referring the
record TO the Justice Department
for appropriate action
A Justice Department spokesman
said today that the transcript Will
be studied by the criminal division
TO determine what action should be
taken on Mr.. Paynter. Pertinent
parts of the transcript. Mead
Committee spokesman explained,
include Mr. Paynter's testimony, the
testimony of Western Union officials
and of the two neWspapermen, the
telegram and a statement by Secre-
tary of War Patterson.
Attitude Called COntemptuOus.
Senator Mead said that. while
Mr.. Psvnters attitude before his
committee. his charges against it
and his refusal to answer questions
had been contemptuous, 1t preferred
not to take time from this impOr-
tant INQUIRY to bother with a con-
tempt cnarge, but the alleged per-
Jury was another matter"
In the judgment Of the commit
tee" the chairman added, refusal
10 answer questions and generally
contemptlous conduct, grave as
they may be. are not comparable TO
outright perjury or false and fraud
ulent statements obviously calcu-
lated to impede and deter the COM
mittee in a search for the facts In
carrying out its mandate from the
Senate
He added the committee will not
be swerved from the true purpose of
its gatlon-the examination
OF war proflteering.
Senator Mead thus spoke OF Mr..
Psynter'S testimony. An admitted
paid publicity agent for corporations
and individuals whose affairs are
the subject OF the committees in
yestigation was openly defiant and
insolent TO this committee. The
witness conduct, the chairman
added, was such as TO have justified
immediate punishment for con-
tempt"
The committee planned to call,
some time today. Albert w Jacob
son, legal consultant in the Chem
icsl Warfare Service.
Mr. Jacobson was TO be asked
TO explain why, as shown in cor
respondence in evidence, he was so
insistent that field officers effect
termination agreement with Batavia
and Erie by negotiation" and on
"giveand- take basis
Col. c. w. Cheatham of the in
spector generals Office agreed in
testimony late yesterday that Mr.
Jacobsons instruction that it was
absolute necessary" to reach an
agreement with the Carson con-
Germs would have had a strong IN
f1uence on field officers in trying
to effect such settlement.
The committee learned that war
accounts with Erie Basin were closed
with payment by the Govern
ment of Sl.638 900 and Batavia was
awarded 81. lot 200 Later. records
showed, the War Department found
it had overpaid Batavia to the ex-
tent OF something over $1,000, 900,
and Undersecretary Kenneth c.
Royal asked the Department of
Justice 10 investigate this matter
to see whether the Government had