Evening star., 1947-11-11
Jitters Reported Here
As Grand Jury Nears
Red Spy Ring Expose
By Edword NelIor

parent in Washington today as the
date nears for grand jury action in
New York which is expected to ex-
pose a Russo American espionage
ring that operated undetected inside
the Federal Government as early
as 1884.
Communist circles are especially
jumpy, in view of the fact that a
former Daily Worker employe, who
quit the party in disgust several
years ago, is aiding the Government
in ferreting out the suspected dis
loyal.
This individual, not Louis Budenz,
was active in the Red ring that
started in the Agriculture Adjust
ment Administration in 1934-5.
Actually, only so or so Federal
workers are alleged to be involved
in the plot.
The story of the Red intrigue has
been presented to the grand jury
since last July. 1t is believed to
include the underground transmits
sion of secret prewar and wartime
data, with allegations that vital in
formation such as the development
of Loran and other aircraft aids was
made available to Russia.
Ex-Employes Most Prominent.
The two most prominent individ-
uals said to be implicated in the
grand jury deliberations include a
former employe of the Treasury
Department, who held a position of
trust for more than 10 years. The
other individual, prominent in the
State Department, was later con-
nected with an organization of the
United Nations. Neither is now
employed in any Government ca
pacity.
If a grand jury report is forth
coming it will trace the operations
of the ring from 1934-5 that started
in the Agricultural Adjustment Ad-
ministration in the Agriculture De-
partment. From here the members
of this Red cell spread out into at
least six other cells, of approx
mately 10 members each. BY the
early 1940s the tentacles of the
cells had reached into the inner
most workings of the Government
and had provided the Soviet Union
with pipeline Of extraordinary
effectiveness. Data on production,
mines, manufacturing, and, later,
on war developments in the cate
cody of weapons and otherwise, was
funneled into the network and
across the seas to the Soviet mas
ters who pull the strings.
Confession Reported.
It is understood also at this time
that the former Federal employe
who appeared before the grand jury
has confessed to his part in the Red
plot. This reporter is also in pos
session of information which indi-
Gates that a top ranking security
agency has been anticipating con-
fession from another former Gov
ernment employe, who is even more
seriously implicated. So far this
individual has refused to talk, al
though he has been questioned re-
peatedly. Both of these individuals
are members of the Communist
Party, according to evidence In the
hands of various security agencies
of the Government.
Official notice of the grand jury
inquiry was taken today by the Ma
tional Committee of the Communist
Party. In a telegram signed by Will
liam z. Foster, chairman, and
Eugene Dennis, general secretary,
President Truman was urged tol
order the discharge Of the jury and
to remove from his cabinet Attorney
General Clark. The President was
urged also to demand the removal
from office of all Department Of
Justice officials involved In the
inquiry.
Political Intent Seen.
The Telegram saw, in the inquiry,
an attempt to disrupt the forthcom-
ing meeting of foreign ministers and
to stampede the special session OF
Congress into adopting the Mar
shall plan.
Communists here are keeping
abreast of developments taking place
before the grand jury. In a recent
meeting the best legal brains the
Reds could muster explored the va
rious activities open to the Commu-
nists when the full story breaks.
The Communists are as aware Of
the implications behind the Federal
roundup as any one else, and will
not be caught mapping without a
defense of some kind. However,
nothing offered by the Reds is ex-
pected to keep the lid from blowing
off Washington completely when the
disclosures are made known.
It. Is expected that the revela-
tions to be made to the grand jury
will shock the American public to
a degree heretofore unknown, since
one Official of a security agency has
declared that the story sis the big
gest thing the Justice Department
has ever tackled"