Evening star., 1949-08-01
Senators Probe Role
OF Maragon in Deal on
Surplus Machinery


ment surplus machinery, it was
learned today.
The one time bootblack who
calls top officials by their first
names also has been questioned
on his sources Of income. accord
ing to the oficial record OF Mr..
Maragon's secret testimony before
the Senate Investigations Subcom-
mittee.
The investigating group, which
is studying the operations of "five
per centers" in preparation for
public hearings next week also is
digging into the question Of how
Government clearance was given
for construction work at two race
tracks at the time building mate
rials were scarce shortly after the
war.
Housing Expediter Tighe Woods
disclosed yesterday that Senate
Investigators have combed the
files of his agency In following
the activities of James v. Hunt,
the former Army officer to whom
. Massachusetts, businessman says
he paid a fee for his alleged in
fiuence.
Maragon Describes Deal.
A Senate source told a reporter
however, that the check of hous-
ing files also produced infor-
nation which led to the ques-
tioning of Mr.. Maragon.
Mr.. Woods said the Senate in
vestigators showed particular in
terest In whether MIR. Hunt figured
tn clearing the way for construc-
ton work at the Tanforan Race
Track in San Bruno, Cal, and the
Foxborough Race Track near
Boston.
On the WAA surplus deal. Mr..
Maragon testified that he once
went to the War Assets Admini-
stration Office in New York with
two men who wanted to buy sur
plus machinery for use abroad. He
said they sought him out and
asked his advice as to how to 60
about it. and that he took them
to the WAA Office. He said also
that they bought $4,000 worth of
machinery and that they later
became dissatisfied with the trans
action and sold the machinery at
q $4,000 loss.
In reply to questions, Mr.. Mara
gon swore he never received a cent
for his part in the episode.
Mentions Pearson Report.
Also in reply TO question. he
said he never went to a WAA off,
cial in Washington and asked him
to help the men who figured in the
$4,000 transaction obtain addi-
tional equipment.
Mr.. Maragon told the subcom-
mittee that Drew Pearson, the
columnist, wrote that he Mara
eon) was paid $50,000 for aiding
the two men. -...
Mr., Maragon testified that when
that report got around he. vent to
j; Edgar. Hoover. director -of-the
FBf,- and made q statement hat
he never had negotiated any basi-
ness with any Government de-
partment. s>---r
'Metesttfied also that he went to
see Jess Larson. then chief Of the
War Assets Administration, and
asked Mr.. Larson to investigate
whether he ever had bought any
surplus materials.
Mr.. Maragon told the Senators
that Mr.. Larson later wrote him
stating that he CMaragon) never
had bought anything from WAA.
The subcommittee hammered
at length at Mr.. Maragon's bank
accounts and his income tax re-
ports.
37,74o Income Reported.
He reported to the investiga-
tors that his income for 1s45 was
$7,740-$1.740 of it from the Bal
timore G Ohio railroad, for which
he worked as a commercial rep
resentative. and $1,000 from the
Albert Verley Co., a perfume oil
firm.
Mr.. Maragon testified that in
1916 he earned $4,000 from the
Verley Co., and $1,000 from the
State Department in connection
with the mission to Greece. He
listed his 1947 income as $4,000
from the Charles M. Ingersoll Co.,
not further identified, and 1860
interest on Baltimore A Ohio
bonds.
In 194S. Mr.. Maragon testified,
he was paid S1,400 by j. Buncher
Co., also not further identified,
and $3.50 from the Verley Co.
He submitted income tax re-
ports in line with the earnings he
reported.
Time after time he was asked
whether he had any other income.
Each time he said no. He also was
questioned at length as to whether
he had bank accounts in other
than the one Washington bank
he listed. He said he had no other
accounts.
Asked About Race Track Case.
Mr.. Maragon, 1t was learned,
was questioned earlier by the
BILLFOLD, keep the money, return the
pictures Of the baby. Il. 3-7943. .