davidaulloa/AmericanStories huggingface dataset:
Evening star. [volume] (Washington, D.C.) 1854-1972, 1948-08-09

Miss Bentley had ever told him the
information he had given her was
valuable. She said that she had
told him it was valuable and that
he should intensity his efforts to
get more. Perlo, Miss Bentley said,
told her he would do what he could
Did he know how this informa-
ton was going to be used?" Repre-
sentative Mundt. Republican, OF
South Dakota asked the witness.
Il gather that he did," Miss
Bentley replied. "Once he asked
me, is Joe getting all this informa-
ton safely? There was the barest
pause and no one answered"
Believes He Meant Stain.
by Joe, do you think he meant
Joseph Stalin," Mr.. Mundt asked
Miss Bentley Miss Bentley said
she was sure he did.
Mr.. Hebert: So it is safe to as
sumo there were innumerable other
groups operating under heads like
Nathan Gregory Silvermaster and
Perlo? (Silvermaster was named in
Miss Bentleys testimony last week.
Miss Bentley: 1t is extremely
likely.
She has told the committee of
having various contact men among
the Red agents as Jack, Bill or
Charlie-people whose last names
she did not know.
Recalled to the stand, Perlo was
asked if he furnished any tnforma-
ton to Miss Bentley, who had just
finished describing him as the most
energetic one in the entire group"
Perlo stood on his constitutional
rights not to answer.
Expected to Break" Case.
Representative Mundt has pre-
dicted that Koral's testimony will
break" the spy case. Asked after a
special executive session here yester-
day if Koral had come up to ex-
pectations. Mr. Mundt replied
The case is moving along salts
factorily."
The committee set hearings for
tomorrow and Wednesday also. One
of the Wednesday witnesses. Mr..
Mundt said, will be Lauchlin Currie,
former administrative assistant to
the late President Roosevelt, who
has asked the committee for q
chance to deny charges that he
gave information to an espionage
ring.
Committee members refused to
Evening star. [volume] (Washington, D.C.) 1854-1972, 1948-08-09
Clark s Special Prober
Of Lobbying Resigns
By the Associated Press

Irving r. Kaufman, the Justice
Departments special lobbying in
vestigator for the last 10 months,
has wound up his work and returned
to his private law practice in New
York.
Attorney General Clark an
nounced yesterday that he has &C
cepted Mr.. Kaufman's resignation
with deep reluctance but he said
the New Yorker is leaving behind
hi ma permanent lobbying section,
the first. ever set up in the Depart
ment of Justice"
Mr.. Kaufman noted in leaving
that on the basis of admitted activ-
ity, there now are three lobbyists
for every lawmaker on Capitol Hill.
He said he had recommended some
changes In the Lobbying Registra-
ton Act, but the Justice Depart
ment said these would not be made
public until they had been studied
by the Attorney General.
Evening star. [volume] (Washington, D.C.) 1854-1972, 1948-08-09

an opportunity to deny her charges
under oath.
On the other side of the Capitol,
Senator FerguSon'S investigating
committee was in recess but not in
active. The Michigan Republican
followed up his Senate speech, &C
cusing President Truman of iron
curtain tactics, by writing another
letter to Attorney General Clark.
The Senate investigation which
resulted in Senator Ferguson's blast
at Mr.. Truman has revolved around
William w. Remington, suspended
S9,975-a-year Commerce Depart
ment official.
Miss Bentley named Mr.. Reming-
ton as one of her sources Of war
time secrets. He denied this, say
ing he thought she was a newspaper
reporter and gave her only infor-
nation that was available to any
one else.
Mr.. Remington at the time was
an employe of the War Production
Board. He later served as an ensign
in the Navy and, after the war, held
down jobs with the President S
Council of Economic Advisers and
with the Commerce Department.
Most recently he was head OF a
committee which passed on exports
to Russia.
Cites FBI Warnings.
In his latest letter to Mr.. Clark,
Senator Ferguson demanded to
know whether Government agencies
had ignored FBI warnings when
Mr.. Remington was transferred to
three different top confidential po-
sitions'' in each of which highly
regarded strategic information of
particular interest to the Russians
vas fully disclosed to him."
1t was a Clark rundown OF an
earlier Ferguson request which led
to the decision Friday to suspend
further hearings. Mr.. Clark at that
time noted that Mr.. Truman has
ordered loyalty data held con-
fdential to protect sources OF in
formation and prevent injury to in
nocent persons.
In his new request of the Attorney
General, Senator Ferguson said
names of informants and investiga-
tive techniques can be deleted.
But he said that when a man
being checked by the FBI can be
switched from one top spot to an
other, "a serious breakdown in our
loyalty program" is indicated.
Our inquiry" Senator Ferguson
wrote, is aimed at how this hap
pened, who was responsible and how
such serious mistakes may be
avoided in the 4uture."
Evening star. [volume] (Washington, D.C.) 1854-1972, 1948-08-09
Text of PerIo Statement

on them. A grand jury sat for over
q year investigating them and found
no basis for indictments in those
charges despite improper newspaper
pressure for such indictments.
Therefore, it is the height of
legal and moral improperly for
this committee to rake up these
charges which have been fully
sifted by normal judicial processes
l am q loyal American citizen
and I categorically assert that I
have never violated the laws or
interests of my country. am proud
Of my record of service to the
people while In Government en-
ployment.
I am particularly proud of my
present opportunity to contribute
to the great campaign of Henry
Wallace for peace, against infla-
ton and for decent living standards
and full democratic rights for all
the people. Nothing viii deter me
from continuing to make my small
contribution to building an abund-
ant and prosperous America.
1t is becoming increasingly clear
that despite headline spy sensations,
the people resent the failure of the
special session of Congress to act
on the urgent problems facing the
country. The people will echo Mr..
Wallace's call for more red meat
and less red herrings. The people
will increasingly demand election
of Congress and Government which
will bring prices down and incomes
up. which will provide housing, edu-
cation, health and peace.
am confident that public senti-
ment will be revolted by witch
hunts, and will demand, instead, the
investigation OF war investigators,
of fomenters of race hatred, and of
those who are truly endangering
orr very civilization TODAY.
Evening star. [volume] (Washington, D.C.) 1854-1972, 1948-08-09

Following Is the text OF the
statement given to the House Com
mittee on Un-American Activities
today by Victor Perlo, former econo-
mist of the War Production Board,
accused of revealing wartime avia-
ton production figures to Soviet
agent.
I was bon in 1912 in Queens
County, N. Y, where I now reside.
I graduated from Columbia College
In 1881 and received my masters
degree in mathematics at Columbia
University the following year. I
have contributed to various techni-
cal publications on economics, sta
tistical and mathematical subjects.
I did two years of research in wage
and price economics at the Brook
lings Institution.
From 1888 through 1887. served
at the NRA and the Home Owners
Loan Corp, helping in my humble
way to carry out the great New Deal
program under the leadership OF
Franklin d. Roosevelt.
From 1899 through 1947 served
at the Commerce Department, the
Once of Price Administration, the
War Production Board and the
Treasury. I contributed my small
part to the establishment Of the
price controls which prevented ruin
Gus imitation during World War II
to the acceleration of war produc-
ton necessary for victory and to the
development Of peaceful world trade
after the war.
I am now a consulting economist
in New York, employed for the cur
rent campaign by the Progressive
Party.
The lurid spy charges OF the Bent
ley woman and of Chambers are
inventions of irresponsible sensa'
ton seekers. The Government ha:
! g, lraoIy pnonf q holt million dollar.
Evening star. [volume] (Washington, D.C.) 1854-1972, 1948-08-09
Transit
Continued From First Page)

and received about so applica-
tons. Several emerged from
Capital Transit's training school
but the white operators struck
when the company attempted to
use the Negro employees. The
project then was abandoned)
After Mr.. Booth completed his
cross-examination OF Mr.. Heberle
the hearing was recessed until z
pm. Attorney Booth announced he
wished to call E. D. Merrill, presi-
dent of Capital Transit, to the stand
this afternoon and it was announced
that he would appear for cross
examination.
McElfresh to be Called.
If cross-examination OF Mr.. Mer-
rill is completed today, v. A. Nc
Elfresh, executive accountant and
auditor of the PUG, probably Will
take the stand tomorrow to give
testimony on his independent study
of the financial situation of Capital
Transit as related to the proposed
fare boost.
Mr.. Booth indicated he intends to
produce several witnesses OF his own
when Mr.. McElfresh completes his
testimoney. 1t is likely that Mr..
Booth will request time to prepare
exhibits on the behalf OF the OPP
ponentS.
All indications were that the
hearings would continue for the rest
of this week and probably longer.
In questioning Mr.. Heberle, Mr..
Booth asked if overtime payments
would be eliminated If the company
had adequate manpower. Mr.. Heb
erie admitted that overtime might
be reduced if the company had all
OF the desired operators.
Zone Fares Studied.
Asked If the company had studied
the possibility of instituting zone
fares here to attract short haul
riders, Mr.. Heberle replied that ne
had constantly studied that fare
method. but was unable to find
practical application. He said zone
fares were used in outlying sections
of the metropolitan area.
Mr.. Heberle testified today that
the proposed increase in fares would
bring tho company an additional
income of 81 800. 900 year. On its
$50, 600 600 investment, Mr.. Heberle
stated, the base rate of return thus
would be about GOT per cent. The
PUG ruled in 1945 that 7i2 per cent
would be a fair rate of return for
Capital Transit, but Mr.. Heberle
has testified the company would
need 10 per cent in order to pay
fair dividends to its investors and
attract other investments. Mr..
Booth asked if 4.78 per cent rate
Of return would enable the company
10 maintain its financial stability
and credit. Mr.. Heberle said 1t
would not
Evening star. [volume] (Washington, D.C.) 1854-1972, 1948-08-09
Failure Of Spy Probe
To Uncover Hit|erites
Charged by Wallace
BY the Associoted Press

NEW YORK. Aug. 9.-Henry A
Wallace, asSailing the current
spy" hearings, says the United
states Government has failed to
uncover those who aided Nazi Ger
many during the war.
The Progressive Party presidential
candidate said in statement
Yesterday:
The current unsupported allega-
tons of giving information to an
ally (Russia) during time of war
should be examined in the light of
the failure of the administra-
ton to seek the prosecution of
those who aided Hitler Germany"
Mr.. Wallace called the congress
sional investigation of alleged
Russian agents part of a pattern
Of terror and fear-making.
Says Germans Originated Pattern.
- The current hearings of the
House Committee on Un-American
Activities. Mr.. Wallace said, are
setting a pattern which lis the same
as that which developed in Ger
many IN the lS3US.
Mr.. Wallace said the way the
hearings are conducted means 1.-The
deprivation of due process of law:
the substitution of conviction by
headlines for judicial procedure;
the destruction of the constitutional
guarantees of free people.
Such procedures ARE the prod
ucts of both old parties Mr.. Wal
lace added.
The Federal Bureau of InveStiga-
ton heard the current spy stories
wears ago Mr.. Wallace said, and the
same stories were told to a Federal
grand jury without any substantial
in gevidence being found to justify
indictments.
Backs Red Herring" Charge.
Mr.. Wallace said the bipartisan,
unity in building fear has been and
remains an integral part of the
bankrupt foreign policy
He said President Truman was
correct in calling the congressional
inquiries a red herring" but Mr.
Wallace added that the Presidents
record contradicts the words"
Mr.. Wallace said the current pro-
eeedings mot only provide a diver
sion from real problems, but a
method for intimidating those who
fight back"
Evening star. [volume] (Washington, D.C.) 1854-1972, 1948-08-09
2Americons Reported
Arrested August 5,
Still Held by Reds

FRANKFURT. any,
Aug. 9.-Two Americans were
reported today to have been
arrested August 5 in the Rus
sian zone and have not been
released.
The Americans, one an officer
and the other a civilian, were
reported to have been arrested
after crossing into the Soviet
zone at Mellrichstadt, rs miles
east of Frankfurt.
They were identified by un-
official Army sources as:
First 1t. Sherman S. Turner
of the United States Military
Governments Civil Affairs Di-
vision in Berlin, and Roland
Myers, q War Department
civilian.
The two Americans were said
to have parked their automobile
at the border and then to have
crossed through the check
point.
Evening star. [volume] (Washington, D.C.) 1854-1972, 1948-08-09

his attorney, Ira Gollobin of New
York, and then refused to answer.
When she gave names of Govern
ment employees she had seen for in
formation, Miss Bentley last week
described Kramer as Communist
of long standing" who had worked
for Senators Kilgore and Pepper.
Mr.. Stripping said Kramer's real
name was Krivitsky.
Perlo refused again when he was
asked if various Government men,
named by Mr.. Stripping, had ever
turned any information over to him.
The witness was then asked to
step aside and Miss Bentley was
called.
Says She Knew PerlO.
She promptly testified that she
knew Perlo and that she had per-
sonally obtained information from
him in New York roughly seven,
eight or nine times"
When Miss Bentley said that she
understood Perlo was employed in
a part of the WPB where he could
get secret information about air
craft production, Mr.. STRIPPING in
terrupted to tell the committee:
I'VE are prepared to show that
Perlo was given special permission
to copy secret data from the
secret records of the Resources Pro-
lection Board"
The board was made up of Army,
Navy, Air Force, Civilian Defense,
and WPB representatives.
The secret information, he re-
ferred to, Mr.. STRIPPING said, in
Guided figures on shipbuilding,
tanks, explosive production, bomb
sites, aircraft production and the
chemical and mechanical parts used
in this production.
Says She Obtained Data.
did Perlo turn over this informa-
ton to you?" Mr.. Stripping asked
Miss Bentley. She said that he
had turned information on all these
subjects over to her except that
she did not remember anything
about bridges and she remembered
very little about B-29s.
Representative Hebert, Democrat,
of Louisiana, wanted to know if
Evening star. [volume] (Washington, D.C.) 1854-1972, 1948-08-09

answer any questions about Mr..
Koral in advance of today's hearing
It was reported from New York,
however, that he is Board of Ed
ucation engineer in his early sos.
He is married and the father of two
grown sons. both of whom are col
lege graduates.
Lives in Brooklyn.
Mr.. Koral lives in a four-room
apartment in Brooklyn. He report
edly was witness before the Fed
eral grand jury in New York dur
ing its long investigation of Com
munist activities.
Mr.. Mundt said Mr.. Koral was
believed able to lead the committee
to another man, unnamed, who was
one a spy ring courier.
While in New York, committee
members also heard Perlo be-
hind closed doors. 1t was learned
that a subpoena was served on him
at the headquarters of the Progress
sive Party.
Perlo's name cropped up in the
testimony of both Miss Bentley ano
Whitaker Chambers, avowed for
mer Communist agent who is now
a senior editor of Time Magazine.
Mr.. Chambers listed Perlo as
one of the leaders of Com
munist underground seeking the in.
filtration of Communists into key
Government posts before the war
Miss Bentley said Perlo headec
a wartime espionage ring and gave
ner aircraft production figures while
employed at the War Productions
Board.
Mr.. Chambers also testified at the
closed door sessions in New York
presumably to back his previous
testimony that Mr.. Hiss, former
State Department official, was a
leader in the Communist under
ground
Mr.. Hiss has denied the charge
under oath, thereby precipitating
further investigation of himself and
Mr.. Chambers.
Likely to Confront Hiss.
1t appeared likely that after this
investigation is completed, Mr.
Chambers and Mr.. Hiss would be
brought face to face before the
committee to give Mr.. Hiss chance
to say then whether he has ever
seen his accuser.
A sworn statement was to be put
into the record today carrying a
denial from Aiger Hiss brother,
Donald. Mr.. Chambers also accused
Donald Hiss of being leader in
the prewar Communist underground.
Mr.. Mundt said that since Donald
Hiss was so linked with the Hiss
Chambers controversy, there was no
point in calling him to testify at
this time.
Wednesdays witnesses, in addition
to Mr.. Currie. will be Frank Coe
and DR.. and Mrs. Bella Gold. All
three have asked to be given a
chance to deny Miss Bentley's
charges that they were members of
an espionage ring. Miss Bentley
mentioned a William and Sonia
Gold The Bella Colds, who live in
Pittsburgh, said she apparently was
referring to them and asked for
Evening star. [volume] (Washington, D.C.) 1854-1972, 1948-08-09
Wundt Seeks to Quiz
Two Russian Teachers

The House Committee on I'm
American Activities today await
ed State Department advice on
how it can reach the key figure
in a row between Red and White
Russians without creating an
international incident
Acting Committee Chairman Mundt
said the committee wants to ques-
ton Mrs. Oksana Stepanovna Ko-
kenkina, who is now out of reach,
at least temporarily, in the Soviet
consulate in New York.
Mr.. Mundt said he also would
like to question a second Russian
school teacher. Michael Ivanovitch
Samarin. who repeatedly walked
into FBI offices in New York yes
terday and asked to be interviewed.
We think Mrs. Kosenkina can
throw light on espionage. Commu-
mist intrigue and the whole story
covered by our hearings Mr.
Mundt said, referring to the COM
mittees current inquiry into Com
munist espionage in the American
Government
He said he understood she would
be willing witness.
Mr.. Mundt revealed the commit
tee knew of Mrs. Kosenkina before
the story of her adventures came to
light Saturday.
Immunity Question Studied
He said he had talked to the FBI
about the case and that they are
"hard at work" on it,
The State Department, Mr..
Mundt said has been asked whether
the diplomatic immunity of for
eien embassy also covers a con-
sulate.
If you are advised by the State
Department you are entitled to serve
q subpoena in the consulate, then
you expect to serve it?' asked a
reporter.
That's correct" Mr.. Mundt re-
piled.
On the other hand, if diplomatic
immunity covers the consulate, Mr.
MunQL aQQeQ, we are not going
10 waltz in and create an inter-
national incident"
He said he had informally ques-
toned Charles E. Bohlen of the
State Department on the immunity
question. He said Mr., Bohlen gave
an effhand opinion that there
might be a difference between ar
embassy and consulate
In New York. Soviet Consul
General Jacob M. Lomakin said
absolutely not when asked if
Mrs. Kosenkina could be served
with a subpoena in the consulate9
Amazed at Coercion.
Mr.. Mundt said he had gathered
there was a sort of twilight ZONE
on the degree of immunity of con-
Sular offices.
He said he found it amazing anc
startling that police agents of g
foreign power can go into an Amer
lean home and. roy any type of Sc.
duction or COERCION, whisk away
person to their consular Office"
The committee, Mr., Mundt said
Evening star. [volume] (Washington, D.C.) 1854-1972, 1948-08-09
CONGRESS
Continued From First Page.

makes of the bills passed at the spe'
cial session with due attention being
given to Mr.. Humans refusal t.
turn over employee records to the
dual congressional Communist espi.
onage inquiry.
Some of Mr.. Humans closest
friends are urging that he sign the
housing and credit measures which
are little more than token legisla-
ton in comparison with the
ambitious program he outlined fol
checking imitation.
Hatch Urges Signature.
Other of his proposals which
went before the session, including
the explosive civil rights issue, went
by the boards as the legislators
went home to resume the campaign
Senator Hatch, Democrat, OF New
Mexico, was among those urging
the President to sign the housing
and credit bills.
A tip-off on the Republican
strategy came just before adjourn
ment when Chairman Ferguson OF
the Senate Expenditures Subcom-
mittee, investigating Communist
and spy activities, accused Mr..
Truman of throwing up IAN iron
curtain between Congress and the
public business The Michigan
Senator talked about impeachment,
but in Detroit East night, he said he
had no intention of pressing pro-
ceedings against the Chief Executive.
Says People Will Gust Truman.
II think the American citizen will
use his own method during the pres
idential election to remove Mr.. Thu
man." he said in an interview.
The end of the session prevented
an immediate Democratic response
to Senator Ferguson's outburst on
the Senate floor, but yesterday, Sen
ator Hoey, of North Carolina, who
broke with the President earlier in
the year over the civil rights ques-
ton, came to his defense.
Senator Hoey, speaking in radio
interview over Station WINK, de-
clared that Senator Ferguson's
speech was right good justifica-
ton" for Mr.. Humans description
of the Communist hearings as "a
red herring" to divert public at
tention.
President Truman is entitled to
commendat lions instead of condem-
nations" for his own effort to rid
the Government of Communists
and their sympathizers, Senator
Hoey said.
Senator Hoey said there is moth
ing new in the Investigations ito
the FBI or the Justice Depart
ment." and that all the informa-
ton they held had been presented
to New York grand jury. He also
said that every President since
George Washington has followed a
policy of Withholding data on Fed
eral employees.
Following the Presidents lead
the Democrats seem likely to con-
tend that the espionage probe is
only a red herring" and to talk
at the top OF their voices about
the high cost of living.
Senator McGrath of Rhode Island
the Democratic National Chairman,
said in a weekend statement that
the "only relief the American public
can get from further increases In
prices already shockingly high is to
elect President Truman and DEM
ocratic Congress in November"
This struck fire with Senator
Wherrys of Nebraska, acting Re-
publican floor leader and bitter foe
of price controls.
Il think the special session OF
Congress passed every constructive
proposal offered by the President"
Senator Wherry said in an inter-
view.
I'm my opinion. Congress won't be
called back into session before jan
uary."
Evening star. [volume] (Washington, D.C.) 1854-1972, 1948-08-09
White Russian Term
Now Used to Refer
To Anti-Communists
BY the Associated Press

NEW YORK, Aug. 9.-The
term White Russian" origi-
nally referred to the peoples Of
White Russia, a relatively small
area of Russia adjoining Poland
and Lithuania.
Since the Bolshevist revolu-
ton, it has become a generic
term and often is used loosely
in referring to Russians who are
opposed to the Communist or
Red regime.
Evening star. [volume] (Washington, D.C.) 1854-1972, 1948-08-09

was called some time ago by
person who said Mrs. Kosenkina
could give information. He placed
the time as between July 30 and
last Saturday.
Mr.. Mundt's assertion that he
would like to call Mr. Samarin for
questioning cs( ne after he received
a report that the Russian school
teacher had v unteered to give in
formation to e FBI.
Evening star. [volume] (Washington, D.C.) 1854-1972, 1948-08-09
Virqiniu Store Burns

BRIDGEWATER, Va. Aug. 9 (4).
"A fire yesterday damaged mer-
chandise and fixtures at the w. H.
Sipe Department Store. H. B. Sipe,
manager, estimated the loss at
$4,000.
Evening star. [volume] (Washington, D.C.) 1854-1972, 1948-08-09

Spain is to give extra rations TO
babies and expectant mothers.