davidaulloa/AmericanStories huggingface dataset:
Evening star., 1949-08-30

Woods testimony. where Mr..
Woods said Gen. Vaughan told
him, Some friends of mine are
interested in this" and asked Mr..
Woods to review the facts as to
their legality and merits.
Senator Mundt wanted to know
why Gen. Vaughan made this re-
quest. The Senator asked If this
implied Mr.. Woods didn't usually
review cases in that manner.
Gen. Vaughan said it didn't have
that meaning.
."I can think of no reason for it,"
he testified. 1T was just conver-
sation."
Said Senator Mundt: 1T was
pretty effective conversation" He
added that Mr.. Woods issued the
Tanforan permit a few days later.
On the eve Of Gen. vaughan's
appearance. the committee sent to
United States Attorney George
Morris Fay and the Bureau of In
ternal Revenue the official tram
scripts Of the hearings to date.
calling particular attention to the
testimony of Mr.. Maragon.
Mr.. Maragon admitted on
the witness stand last week that
he knew Gen. Vaughan but refused
to answer most other questions on
grounds the answers might in
criminate him.
The committee was informed
that Mr.. Maragon made bank de-
posits OF nearly $12o.o0o during a
five-year period in which he had
said his income averaged only
$1,000 a year. Mr.. Maragon also
testified in executive session that
he was never paid for represent
ing any company before the Gov
ernment. But the committee was
told of various deals in which
he got fees.
okuCI LAVA ntdhdUICs
In a letter to George J. Schoen-
eman, commissioner Of internal
revenue, Committee Counsel Will
liam P. Rogers said he was for
warding the transcript of the
hearings at Chairman Hoey's re-
quest, and added:
In addition. to this testimony
my staff has considerable
amount of financial data relating
to the affairs of Mr.. John Maragon
which we will be glad to make
available to you"
Mr.. Rogers also disclosed he had
taken steps designed to prevent
Mr.. Maragon from making a vol
untary declaration" and thus
avoiding a possible penalty.
In his letter to Mr.. Fay, Mr..
Rogers said: II call to your partic-
ular attention the testimony Of
Mr.. John Maragon both in execu-
tive session and in public session"
He added:
There are other matters which
may command your attentiortand
which I will be pleased to discuss
with you at your convenience"
Evening star., 1949-08-30
BY the Asseeiotsd Press

A partial transcript OF testi-
mony today by Maj. Gen. Harry
H. Vaughan at the Senate "fpe-
percenter" inquiry after he had
read his prepared statement:
Chairman Hoey-General, be-
lieve you stated that you had known
Mr.. Hunt for about five years?
Gen. Vaughan-Yes, sir; that is
correct, sir.
Hoey-What has been your associ-
alton with him during that time?
Vaughan-Well, just ordinary
friendly relations. have seen him
socially, I wouldn't have any idea
how many times. a dozen, maybe,
met him at social functions, he has
been in my ONCE a number Of times;
the majority of the times that he
has come to my office he had no par
ticular reason to see me; he has
dropped in to see John Steelman, or
some other member Of the staff,
with offices in the same wing as
mine, and would drop into my office.
Mr.. Hunt has never been In my
home, and I was in his home
twice. I was invited to a surprise
party that was given for Hunt by
his wife, and I was also invited to
party given, as I recall, for Gen.
Feldman.
Hoey-Gen. Vaughan, did you
make any request OF Mr.. Hunt, or
how did it happen that he furnished
the information with reference to
Gen. Watt?
Watt Matter Discussed.
Vaughan-well, I havnt known
until this inquiry started that Mr..
Hunt had anything to do with that.
I made the request of Gen. Watt,
after discussing it with the Presi-
dent, that he furnish me factual
data about the officers who might
appear on a promotion list. I
have done that on occasions before.
The President approves Of that, and
Gen. Watt furnished this material.
Now it never would occur to me
that Gen. Watt would write that
any place but in his own oft1ce, or
II he did not want 1t in his own
of1ce, in his own home. I did not
know that detail until later.
Hoey-You did not know that
Gen. Watt bad dictated that in
his office to Mr.. Hunt.
Vaughan-No. did not.
Hoey-General, when did you
first form the acquaintance Of Mr..
Maragon?
Vaughan-When I was secretary
to Senator Truman here in this
building, Mr.. Maragon was work.
ing for the B. and o. railroad, If I
remember correctly, and his duty
was to handle transportation mat
ters for the members of Congress.
He was a very energetic indivi-
dual, and was always around. You
could not order q ticket and a pull
man space. without 1t being de-
livered by Mr.. Maragon, so he was
in the Office.
I did not know him too well that
first year. When I came back from
overseas duty, the first time I saw
Mr.. Maragon he was handling O
trip to New York for the launching
of the battleship Missouri, a special
train: it was a large congressional
delegation.
I naturally accompanied Senator
Truman on that, and Mr.. Maragon
was the master OF ceremonies in
Evening star., 1949-08-30
Dear Jim Explained
BY yMundt-Hunt Had
CdtIedHim' 'DedrKorr

: Senator Mundt. Repub-
lican. of South Dakota. was
asked by reporters today why
he wrote James v. Hunt a
letter beginning Dear Jim"
if, as he said, he never knew
the management counselor
who has been a central figure
in the Senate "f1ve-percenter"
inquiry.
The letter was in reply to
one from Mr.. Hunt congrat-
ulating the Senator on his
election last November.
He called me Dear Karl"
explained the Senator. so
I thought I knew him. That's
why I called him Dear Jim.
Evening star., 1949-08-30
Crowd
Continued From First Page)

a row Of seats for interested Of
flcials on the staff and the press
and radio reporters were jammed
into seats at tables where every
available bit of space was occu-
pied. 49,.
SEach Senator on the subcom:
mittee was permitted to authorize
two spectators within the hearing
room. One spectator with more
than an idle curiosity about the
testimony, John Maragon, was
admitted before Gen. Vaughan
arrived.
The officers of the subcommittee
had rejected requests that the
hearings be held in a caucus room
with more space. Scores Of spec
tators were allowed to stand
around the walls when the seats
were all occupied.
Evening star., 1949-08-30
Partial Transcript Of Testimony by Gen. Vaughan

for the record I want to ask you
this direct question:
In these various matters in which
you have assisted friends, whether
they were friends or not, In the dif-
ferent agencies and departments OF
Government, have you ever at any
time received any fee or commission
or shared with anybody else in re-
ceiving any fee or commission In
connection with any of these
operations?
Vaughan-No sir; I have not at
any time.
Questioned by O'Connor.
Hoey-Senator O'Conor?
O'Connor-1 would like to ask
one or two questions following that
particular subject to which Senator
Hoey just alluded. I would like to
ask you whether you sought any
| fee or benefit or remuneration
from anything that you did in con-
nection with the various matters
that have been under considera-
ton.
Vaughan-No, sir: I did not. It
never occurred to me. My duties
at the White House in that con-
nection were a continuation Of my
duties, the same duties, practically
the same, here in Senator Tru-
mans Office.
O'Conor-Were there any par
ticular benefits which flowed to you
or any particular profit or remu-
neration that came as the direct
result Of anything that you may
haye done?
Vaughan can recall none, No
sir.
O'Conor-Now, you did at the
opening of your statement, in one
Of the earlier paragraphs. say that
insofar as you had given assistance
to business concerns, 1t has been
without any participation Of the
President in any way. In any OF
these matters. did you have occa-
sion to advise the President OF
what was transpiring, or did you
do it just on your own?
Vaughan-No, have never had
any occasion that I can recall to
advise the President of any action
I have taken in any particular In
stance. I didn't think it was neces-
sary because I was performing &C.
cording to the Presidents instruc-
tions that he had given to me before.
He had never had occasion to
change them. I would just continue
to operate in the same way, and
felt sure he would be the first one
to tell me If he wanted a change.
O'Conor-I see. Did you consider
that the various things you cid were
within or outside of the scope of the
duties that you were expected to
perform?
Nom Military Duties Performed.
Vaughan-They were certainly
outside-many of them were outside
of the scope of the military aide, but
they were not outside Of the scope
Of my job as also an administrative
assistant. It Is necessary that
everybody In the White House dc
that. There is such q volume OF
material of that kind to take care
of that II one person coasts it just
makes It harder for every one else
O'Conor-s Are there many
requests fer consideration along the
lines that / have been discussing
here today?
Vaughan-Oh, yes; I should
Evening star., 1949-08-30

running the train and handling all
the transportation.
Maraxon Incident Recalled.
Hoey-General. Mr.. Maragon
seems to have left an impression
with different agencies Of Govern
ment, when he would call them in
reference to matters, that he was
your representative. Was he author
ICED by you to make any representa-
tions in these various matters?
Vaughan-No. As I stated In my
statement that I just read, at no
time was Maragon authorized to
represent me or the White House in
any way, shape or form. 1t did
come to my attention a year or so
ago-I cannot recall that exact
time-somebody said that Maragon
was flashing a picture of himself and
the President, and I taxed him with
this and he denied it very vehe-
mently. He said that he had never
done any such thing, but I did not
know he was representing himself as
my agent.
Hoey-General, did you have any
knowledge Of the action of Maragon
in clearing contents Of a package
when he came back from Europe
through the customs officials, or
when did you learn of that incident?
Vaughan-That was told to me,
oh, 1t must have been year or SO
after-I cannot be sure of these exact
dates because I had no occasion to
fix them in my mind. That was told
to me by Maragon. He told me
about this incident, and the way he
related 1t to me, that it was entirely
. misunderstanding, that it was a
large package and he laid it on the
counter and he did not put it on the
manifest because he did not know
the value, or some such explanation
like that, and he said that it was
completely settled and the Justice
Department or the Treasury Depart
ment, whichever one was looking
into it believe it would be Treas
ury-was completely satisfied and
everything was all settled. I never
thought of it again until this was
brought out in the hearing.
Denies Getting Any Fees.
Hoey-Did you know anything
about this matter at all until after
Maragon told you 1t had already
been settled?
vauehan-No, sir, I did not.
have no recollection of it.
Hoey-Do you recall, General,
what arrangements. If any, you as
sisted In making in order to arrange
transportation for Mr.. David A.
Bennett to go to Europe soon after
We day?
Vaughan-Well I don't recall that
I made any assistance in getting
him over here. I had written some
letters to expedite his passport, If I
recall. I recall helping him get
home on one occasion when he was
stricken with a heart attack and
was In . hospital.
Hoey-Do you remember writing
letter to Maragon when he was
going abroad for this perfume
company?
Vaughan-Yes, yes, I think gave
him o letter of recommendation,
introduction. He was representing
Bennett. I mean he had gotten the
Job with Bennett. I just don't re-
member exactly when.
Hoey-Now, Gen. Vaughan, your
statement makes it clear, but just
Evening star., 1949-08-30

AAAS AAAAAJ woo "OAA1CAs wv ~NSAA.
Vaughan added, Il think I made
4 call" to the Air Transport COM
mand for Mr.. Benefits return on
4 military plane. The evidence
has shown this trip was made
shortly after VE-Day.
Senator O'Conor then ques-
toned Gen. Vaughan about the
memorandum he sent to the State
Department asking clearance for
Mr.. Maragon's trip to Italy. This
was the letter which bore a pen
ciled notation that Gen. Vaughan
had informed Mrs. Shipley that
the President was personally in
terested.
THE President never heard of
this" Gen. Vaughan declared.
1.-The President was not interested
In any trip Mr.. Maragon would
take or any detail Of Mr.. Mara
CONS life. He never heard any,
thing about It,"
Financial Records Available.
Gen. Vaughan said he consid-
cred Mrs. Shipley one Of the finest
public servants in Washington and
that if she said she got the i'm
preston the President was per-
sonally interested. Gen. Vaughan
had every reason to believe she did
get that impression. but he added:
Il certainly never said the
President was interested"
Are you willing" Senator
|O'Conor asked, Ito have the COM
mittee examine any of your ac-
counts to ascertain whether any
fees were ever paid to you?"
MY financial records are avail
able to the committee at any
time" Gen. Vaughan replied.
Asked why he said in a recent
statement that the .freezers given
him by the Verley Co. were factory
rejects. he gave two explanations.
First he said that the four freezers
he saw were all different and that
might have given him the i'm
preston they were just gathered
up and sent here. Then he said
that every time something breaks
down on his freezers the service
man apologies for charging him
$14 or SIG and explains that the
freezer is not a standard machine
and that the parts have to be
made.
Rejects" Term M-Adivsed."
THE term reject might have
been . very ill-advised express
sion." Gen. Vaughan acknowl-
edged.
THE first freezer that arrived
went to Independence, Mo-" he
said. That is President Truman's
home.
The next one was for the gen.
eral himself and was installed
several weeks later"
James K. Vardaman. former
White House naval aide and now
a member of the Federal Reserve
Board, received the third freezer,
Gen. Vaughan related. 1t was in
stalled at the Presidents summer
camp, Shangri-La.
A fourth one was installed in
the secretary's staf1 mess at the
White House.
Gen. Vaughan said he couldn' t
think of any connection at all
between" the freezeIs and his off,
cial duties at the White House.
Everybody at the White House
knew about it,, he said. and they
were shipped through regular
channels"
Didn't Check on Maragon.
Senator Mccarthy asked Gen.
Vaughan If he had checked on Mr..
Maragon's background before rec
ommending him for an American
mission to observe the Greek elec-
tions.
II never knew Mr.. Maragon
had q background" Gen.
Evening star., 1949-08-30

imagine there are scores OF them;
maybe hundred 4 day.
O'Conor-I see. Nov, you did
refer, in response to question OF
the chairman. that in regard to
the Gen. Watt matter, that you
did discuss that with the President,
I think?
Vaushan-Oh yes; yes, I dis
cussed that with the President.
O'Cornor-WAs that In line with
your accustomed duties?
Vaughan-Yes. Senator, you may
or may not be familiar with the
fact that when a. chief OF branch
Is to be appointed, q selection board
considers all of the eligible officers,
and they send over 4 list to the
President, I believe the law says 1t
must contain three, and sometimes
1t has four or five names on 1t, at
least three, I believe, and the Presi-
dent picks one OF the men on that
list for the position.
Now, If the names come over and
there are five names, it Is possible
that the President never met any
of those officers, knows nothing
about them; in some branches II
might be possible that I wouldn't
know any of them, so when the
President said, do you know any
thing about these officers, I would
be Of no help to him at all, to
advise him as to the abilities OF
these men, and so try to anticipate
that and get some information.
believe that Gen. Waits re-
placement was due about this time
or maybe last month, don't recall
so I asked him for an expression
a frank expression, a paragraph on
each ofhcer in the corps that would
be qualified, or might be considered
by the committee, and I told the
President I was going to ask him
for It, and showed it to him after
I received 1t.
Travel Assistance.
O'Conor-Now, general, in regard
to any assistance that you may
have given to persons travelling over
seas, was there any particular rea-
son for you to extend any such as
sistance at this time to Mr.. Bennett
or to others, was there an unusual
thing, or was there any desire on the
part of either business interests here
or the interests abroad, to give
encouragement to that?
Vaughan-Oh, yes. There was
definite desire. 1t was q policy OF
the State Department., which they
had, believe they had put out
circulars in regard to their interest
in rehabilitating, even before the
war was over, in rehabilitating the
liberated section Of France, and ]
believe Mr.. Benefits first trip was
at this time, which I had nothing to
do with, his getting, mean, I don't
think, at that time I made any
gave him any assistance in getting
that priority. He got over on his
own. He got his ticket back on a
commercial line on his own. But he
was stricken with q heart attack
and was taken of the plane and
hospitalized in the Azores.
OF course, his family was very
much excited, and very distressed
and called me and aked me If, they
had visions of him being there TO,
q long time and not being able to-
so he came back on, I made a,
think I made a call to the ATC and
he came back, I believe. on mail
plane, although he had his ticket
on q commercial plane.
Evening star., 1949-08-30

he made the request 50 that he
would be able to give information
to the President when thesnames
of eligible officers came9tO the
White House for Mr.. Truman to
fmake his selection.
Chairman Hoey told Gen.
Vaughan that Mr.. Maragon
seems to have left the impression
he was your representative" The
chairman wanted to know If Mr..
Maragon was authorized to rep
resent the general.
Gen. Vaughan replied that
about a year ago some one told
him that Mr.. Maragon was fash
ing a picture Of himself with the
President.
Never Got . Fee.
II taxed him with this and he
denied 1t very vehemently," the
witness went on.
Did you have knowledge of the
action Of Mr.. Maragon in falsely
declaring the contents Of 4 pack
age when he came back from Eu-
rope?" Senator Hoey asked.
THAT was told to me by Mr..
Maragon," Gen. Vaughan replied.
He told me about this incident
and the way he related it to me
it was entirely . misunderstand-
ing. He didn't put in on the man
ifest because he didn't know its
value. He said it was completely
settled. I never thought Of it
again"
Chairman Hoey asked Gen.
Vaughan directly If he ever re-
ceived any commission in connec-
tion with any assistance he gave
his friends or others with Govern
ment departments.
mo SIR" came the answer in
q strong voice. Il have not at
any time"
No Return for His Keep.
When Senator O'Conor, Demo-
crat, of Maryland asked him If
he ever sought any fee or remun-
feration, Gen. Vaughan answered,
mo sir. it never occurred to me. %
did you receive any remun-
Grafton that came as 4 direct re-
suit Of anything you did in this
connection" Senator o'Conor
went on.
II can recall none," replied Gen.
Vaughan.
No Occasion to Tell Truman.
Senator O'Conor asked the gen.
eral If he had ever advised the
President about any Of his activ-
tiles for his friends.
II never had. any occasion to
advise the President Of any action
I've taken in any particular in
stance" the general said. II
didn't think it was necessary. I
was performing in accordance with
the Presidents instructions"
When Senator O'Conor asked
him If these activities were part
Of his duties, Gen. Vaughan said
that they were outside Of his scope
as q military aide but not outside
Of his scope as an administrative
assistant to the President.
ITS necessary for every one at
the White House to do that" Gen.
Vaughan explained. If any one
coasts it makes it harder for
every one else"
Stricken in Azores.
Senator O'Conor asked Gen.
Vaughan whether he gave assist
ance to David Bennett, president
Of the Verley company, to get to
Europe.
Gen. Vaughan replied that Mr..
Bennett got to Europe on his own
and planned to return on . com
lmefetal Nae but was stricken with
Evening star., 1949-08-30

Vaughan replied. He was q Sen
ate once Building character"
Then Mr.. Mccarthy asked the
witness If he knew Mr.. Maragon
had been accused in q criminal
case.
You mean smuggling?" the
general asked.
mo, more than smuggling,
Senator Mccarthy replied.
Senator Mccarthy then asked
Gen. Vaughan if he was sure Mr..
Maragon's record was not written
up in 1947 and called to his at
tention.
NO" Gen. Vaughan insisted,
II didn't know he had GRIM
inal background"
Possible Error in Judgment.
Senator Mccarthy asked Gen
Vaughan if he now thought he
had made a mistake in not check
ing with the Justice Department
on Mr.. Maragon before recon-
mending him for the Greek mis-
sion.
If all the things that have
come up about Mr.. Maragon turn
out to be true, made an error in
Judgment" Gen. Vaughan replied
do you think you made a very
serious mistaken" insisted Senator
Mccarthy.
Gen. Vaughan started to explain
that 10y Henderson of the State
Department was taking over &c
or 40" people. and "as Mr.. Mara.
gon had not seen his brother in q
number of years"
That wasn't what asked.
interrupted Senator Mccarthy. 81
asked if you don't think you made
a very serious mistake"
If Mr.. Maragon," responded the
witness, has been proven OF
wrongdoing. then I made an error
in judgment.
Would he do the same thing
over again. asked Senator Nc
Carthy.
II still think so-yes." Gen
Vaughan replied.
That's very interesting" Sen
ator Mccarthy commented.
Senator Mundt, who has called
Gen. Vaughan a "flnagling bar
gamer" took up the questioning
He began by reminding Gen
Vaughan that he was quoted re-
Gently as saying at the Union Sta
ton that he knew at least SOC
five-percenters in Washington
Senator Mundt asked Gen
Vaughan to supply the list.
Gen. Vaughan said that in the
first place that was not my state
ment."
You were misquoted."
Il was"
Gen. Vaughan said he had just
returned to this country at thai
time, had not been reading the
newspapers, and when he encoun.
tered a crowd of reporters al
Union Station:
II said, What's all the excite.
ment about Hunt? There mus
be at least 300 people in Washing
ton in the same business I didn''
say I knew them"
Senator Mundt asked if Gen
Vaughan could throw any ligh
at all" on any of the 800. Gen
Vaughan said no.
+ Tanforan Case Reviewed. .
Then Mundt returned to TIT
Tanforan case. - - -
He quoted from a memorandum
found in Mr.. Hunts files, datec
October %. l947, addressed tt
Gen. Vaughan. concerning thu
.Tanforan case, and ending witt
the notation. Reviewed orally
with Hf1V."
| Gen. Vaughan said he doesn't
recall receiving the memorandum
and doesn't even recall reviewing
1t orally, but that he could hav.
reviewed it orally with Mr.. Hun
and later forgotten it.
| Gen. Mundt quoted from Mr.