Evening star., 1949-06-05
3Who Duped Red Spy
To. Testify tomorrow
On Agents in Industry
ey ths Asse<icssd Press

ey fhs Associates Press
House spy investigators are set
to break their first big case Of in
dustrial espionage this week-one
involving asserted Russian efforts
to pick OF wartime military secrets
ut the Bell Aircraft plant.
The committee on Un-Ameri-
can Activities disclosed yesterday
that 1t had subpoenaed at least
three witnesses from Buffalo and
Niagara Falls, N. Y. for hearings
starting tomorrow. The Bell fac
tory Is at Buffalo.
Those named as witnesses-an
described by the committee as
Loyal Americans"-are Mr.. and
Mrs. Joseph Franey Of Niagara
Falls, and Loren Haas Of Buffalo.
The committee said there may be
others.
The story is that they were ap-
preached by q Russian official. q
member of q wartime Russian
military commission in the United
States. to buy Bell Aircobra planes.
The official now is in Moscow, 1t
was stated.
Security Officials Were Informed.
The Russian picked the wrong
people, committee officials said.
Instead of providing information
on other United States military air
developments, the three played
along" with the Russian agent
while keeping American security
officials informed.
The committee identified Mrs.
Franey 90 O librarian for the Bell
company. Her husband was de-
scribed as an employe Of the
Hooker Electro Chemical Co. Mr..
Haas was identified as q former
employe of Bell and Westinghouse
Electric Co., now associated with
q research engineering f1rm.
The committee would like to
know why the Russian never was
arrested and prosecuted. A mem
ber told reporters the committee
will bring out details on how he
operated and what he was after.
Russian Got False Information.
Apparently the Russian wanted
information on jet aircraft, then
In the experimental stage. The
witnesses said that over a consid-
cradle time they fed him patches
of phoney material or information
of mo real value"
The Russian, the story goes. paid
OF In cash. The committee says 1t
has the serial numbers Of the bills.
along with lists Of items Of tnfor-
nation he wanted.
In Buffalo, MIR. Haas said some
one In our government" permitted
q top Russian agent ito get away"
after I'VE built UP an alright case
against him"
Mr.. Haas made the statement
Just before he left by plane for
Washington. TT
He said the Russians name
probably will come out at the
hearing. He was big wheel.
The NKvD Russian secret po-
lice) was close to him"
Was Risky Business.
MIR. Haas said he first was ap-
preached by the Soviet agent
when he was employed as an en-
gineer at the Bell plant in Buffalo
during the war. He added:
'The thing got started there.
It was continued-the bulk of it
when I went to work at Westing-
house Electric Corp. plant at
Philadelphia"
1T was a risky. nerve-racking
business" Mr.. Haas said. Tim
glad it's over"
Later, Mrs. Haas confirmed a
Buffalo Evening News report that
the Russian had paid the three
"informers" $500 a week each,
plus $50 to $50 for expenses while
they were working" for him. This
money was turned over to the
FBI.
disappeared I'm January, 1S47.
The news report went on to say
that In November. l946, the Rus
sian told the trio that he would
not be able to contact them again
until January. 1s47. when he dis
appeared and was not heard from
again.
The News said "It is believed
that the Russian assigned to Bell
had been tipped off by contact
in the Justice Department that he
was being followed and apparently
left Immediately for Russia"
Lawrence D. Bell, president of
the aircraft firm. refused comment,
referring inquiries to the FBI bu-
reau in Buffalo which also refused
to say anything about the case.
This will be the House commit
tees first big venture into the field
of industrial espionage. It's pre-
vious spy hunts have dealt with
espionage rings In Government or
military fields.
Spying Still Possible.
The member who disclosed the
case said industrial espionage was
one Of the most important aspects
of wartime communist spying. 1t
probably Is continuing today"
The committee plans to ques-
ton several witnesses Tuesday In
closed session. then get back on
Wednesday to the questions of
atomic espionage and whether
other countries have brought
agents into the United States
through the United Nations.
This is expected to take UP the
rest of the week.
Among the witnesses to be re-