Montana labor news., 1949-08-25
Race Track Seal
Goes To
Justice Department

~
WASHINGTON - dFPl - The
deal b, which the luxurious Tan
ioran race track at San Eruno.
Calf. got s. million worth ot
scarcc building materials III l'/
while millions oi veterans families
we're pleading ior housing will he
sent 10 the Justice Department M
mediatcly lor investigation ri pos
>ible perjury. Housing E~Npediter
Tiehe T.. Woods said August 9.
The statement came at the close
ri another sensation-paoked hearing
ON the dealings ri five percent
ers' which revealed that Maj. Gen.
Harry Vaughan, posTssor OF Ar
eentine medals. White Military
aide and long time personal friend
nj President Truman. interviewed i'll
the race track negotiations To get
a lair deal" ior the owners
The hearing also revealed that
No IDS. whose office has consistently
boosted rents and encouraged de-
control, got his job through an IN
terv;cw arranged by five %perccnter
and King Maker James Y. Hunt.
whose boas.s oi influence in high
places brought on the investigation.
Testimony showed that the race
track violated building restrictions
imposed to conserve scarce mater
iaIs. was enjoined and fined SO.00O
Tor contempt Of court after contin-
uing building operations IN face OF
the Injunction. Three OF its Of
iicers received 5-month Jail en-
fences and $500 fines and a fourth
was given lesser penalties.
After the supposedly new owners
held a series OF conferences i'll
Washington. arranged by John Mar
agon, another gentleman Of influ-
ence. They were told that no
building could proceed until the in
junction WAS n1ted.
Thereupon Samuel P. Orlando, as
secretary-treasurer OF the allegedly
new firm, filed an affidavit saying
the company had changed hands and
no one connected with its previous
operations now held stock in it.
At this point in the hearing Fran
els Flanagan. Investigator for the
Senate expenditures subcommittee
conducting the hearings, testified
that the two men who had bought
control OF the company. according
to the affidavit, had never concluded
the deal. +.
They were listed in the affidavit
as Eugene Mori and William &
Helis. Flanagan said Mort told
Thin he had negotiated with the for.
mer owners OF the track but had
never bought into it. William &
Helis Jr. who said he handled hi.
fathers affairs gave the same story
Committee Chairman Clyde r
Hoey d., MO- then won the prom
Use from Woods that he would sub
NIT the affidavit Immediately to the
Justice Department with a view To-
wards perjury investigation.
Vaughan entered the testimony on
two major occasions as demanding
that the owners OF the ace track
get a fair deal. .Aiter a conference
between Orlando. Mori, Maragon
and a group OF housing edministra-
ton officials, Vaughan, according to
evidence, called Hunt and com
planned tina: the housing officials
had given the three a fine brush
of"
A memo from Hunts lilies read
into the record explained Vaughan
had arranged the meeting and wa,
damn sore at the way his friend,
had been treated. He threatened
to take it up with Frank Creedon
then head OF the office, but Hunt
interviewed as a "peacemaker' be
cause he hated to see a misunder-
standing between the White House
and a good agency
After Moods took office, he ties
titled. he was called to the White
House by Vaughan and asked not
10 have any prejudice against tn,
Tanioran people. A few days later
a permi, to resume construction wa.
issued.
Woods testified that he first met
Creedon at an interview arrange,
by Hunt. 1t was then he "solt
himself TO Creedon and soon after
wards moved to Washington an,