Evening star. [volume] (Washington, D.C.) 1854-1972, 1949-06-21
Influence Story
Brings 3-Way
Contract Probe
Johnson, WA, Senate
Subcommittee Act in
'5-Percenter Case
Bv Joseoh A. Fox
By Joseph A. Fox

Three investigations Wer e
launched simultaneously today
after charges were published that
q Massachusetts, businessman had
paid a $1,000 fee to procure Of
ficial influence" in obtaining a
Government contract.
The National Military Establish
ment, the War Assets Administra-
ton and Senate Expenditures
subcommittee moved in after the
New York Herald Tribune. in a
copyrighted story from Washing
ton entitled "A Washington Five
Percenter." said that a one-time
Army officer. formerly employed
by the War Assets Administration.
had been paid the fee on repre-
sensations that his Washington
connections enabled him to do
business here advantageously.
The individual named by the
newspaper was James v. Hunt.
management counsellor" who
has offices in the Barr Building.
He was identified as a former lieu
tenant colonel in the Army Quar-
termaster Corps.
Larson Asks Investigation.
In dealing with Paul Grindle.
president and treasurer Of the c.
w. Laing Woodworking Corp. of
birmingham. Mass, furniture
factory, according to the news
paper, Mr.. Hunt reported some
of his reputed operations with
War Assets, and mention the fol-
lowing as men he knew:
Jess Larson. former WAA head
who now is Federal Works ad-
ministrator; Mai. Gen. Harry H.
Vaughan, President Truman's
Army aide; Secretary of Defense
Louis A. johnson. Maj. Gen. Her.
man Feldman. Army quartermas-
ter general; Maj. Gen. Alden H.
Watt, chief of the Army Chem
tcal Corps; John r. Steelman, as
sistant to President Truman. and
1t. Col. Roy T. Evans. jr., execu-
tive officer Of the Supply Divi-
sion of the Office of Quartermas-
ter General.
The story brought an immediate
disclaimer from Mr.. Larson, who
called on WAA to make an in
yestigation with the thought Of
giving the findings to the Justice
Department and to Congress.
johnson Orders Probe.
AS War Assets announced that
this would be done. Secretary OF
Defense johnson said he was Or
dering a similar move, and Sena-
tor Hoey, Democrat. of North Car
olina, the expenditures subcom-
mittee chairman, said William p.
Rogers, chief attorney for the
committee, would 60 after the
facts. He said the subcommittee
then would decide what further
steps were called for In the public
interest. He emphasized that the
subcommittee was not prejudging
the case.
Secretary johnson said his in
curry would be designed to de-
termine II any one had obtained
percentage" contracts with the
military establishment.
The Secretary did not 60 into
immediate details, but associates
quoted him as saying that II don't
even know the fellow"-meaning
Mr.. Hunt.
~'. Hunt Surprised"
Mr.. Hunt refused comment to-
day until he has had a chance to
talk to his attorney whom he said
he expected at his Office this after
noon.
This took me by surprise" Mr..
Hunt said. II have only had an
opportunity to read the headlines
of the story because I've had SO
many telephone calls. I want to
know what I'm accused Of. I have
called my attorney and I want to
talk to him before / make any
comment. But I can't get a min
ute to read the story"
- He indicated his attorney may
make q statement later.
- The case had its inception, &C
oording to the Herald Tribune,
when Mr.. Grindle came here In
April in hopes Of getting some
work for his factory. He had
been referred to Mr.. Huet by a
Boston friend, and the manage
a y