Evening star., 1950-04-21
Prosecution Attacks
Dual Employment
Denial by Maraeon
By w. H. Shippen, Jr.

By W. H. Shippen, Jr.
The prosecution at the perjury
trial of John F. Maragon sought to
prove today that he lied in swear
ing he was on no payroll except
the State Departments when he
returned to his native Greece in
1856 as an interpreter for the
mission observing elections there.
State Department records were
introduced to show Maragon was
placed on the Federal payroll on
November 81, 1945, and served un-
til March IA. 1916. at a salary of
$5 800 annually.
| Maragon, the dictmen n t
charges, was in the pay of the
Albert Verley Perfume Co. of
Chicago during the time he was
on the Federal payroll. The wit
neSSeS on this phase of the four
count indictment were expected to
wind up the Governments case
this afternoon.
Department Job Conceded
Defense Counsel Irwin Goldstein
conceded that Maragon worked
for the State Department at the
time stated. Payroll and employ
ment records were identified by
William c. Holcombe, of the per-
sonnel branch, and Emmett C.
Rhodes, of the State Departments
payroll section.
Maragon's statement before
Senators investigating the per
cent racket that he had negotiated
no Government business, between
1945 and 1949 was countered fur
ther today by testimony from At
torney George A. Chadwick, jr., of
Washington.
Mr.. Chadwick testified he was
treasurer of the, Trans-American
Traders Corp. which engaged
Maragon in 1948 to help negotiate
purchases from the War Assets
Administration.
Identifies Three Checks.
He identified three checks total
ing $505 which he said he issued
to Maragon for expenses in trav-
cling to Gary, Ind, and to cities
in New Jersey and New York to
gather information about Govern
ment property declared surplus.
Mr.. Chadwick said that one of
the deals in which Maragon in
terested himself resulted in a sue
cessful bid for $4,000 worth of
electrical equipment which the
corporation learned later was un-
acceptable to its customers
The firm was permitted to can
eel its bid, Mr.. Chadwick said.
Vaughan Not Called.
There was no testimony that
Maragon received a fee for his
services or that one had been
agreed upon.
Assistant United States Attor-
ney Charles B. Murray's last wit
nesses do not include Maj. Gen.
Harry H. Vaughan, it was said,
although tha defense may sum-
mon the Presidents military aide
and Maragon's former friend.
The generals name was men
toned frequently yesterday by
witnesses quoting Maragon, and
by Agriculture and Maritime
Commission officials who said
Gen. Vaughan had telephoned
about matters in which Maragon
had interceded before Federal
agencies.
Contentious Of Both Sides.
While the defense is trying to
show that Maragon was mere
messenger in Washington's "bu-
reaucratic jungles," or "a peanut
vender among princes" the pro-
secution contends he was in busi-
ness for himself and received SUBJ
stantial fees from men impressed
by his connections here.
Nevertheless. Maragon's Clients"
appear to have prof1ted little if at
all from his services.
The zinc and tin ore which was
to have been reclaimed by the At
lantic Marine Salvaging Co., with
Maragon's help, is still at the
bottom of the sea somewhere off
Key West, Fla.
Likewise, the Allied Molasses
Co. of Perth Amboy, N. j., whose
officials testified they retained
Maragon to get them out of quota
difficulties in 1886, got a hearing
but no molasses after Maragon
entered the picture.
Agriculture Department officials
said the company would have
been given the hearing with or
without Maragon's assistance.
Party Contribution?
The defense tried to show that |
part of the $1,000 given Maragon
for expenses by Milton R. Poland
in behalf of the molasses firm was
actually a contribution to the
Democratic Party.
Gen. Vaughan had testified be-
fore the Senate "f1ve-percent" in
vestigating committee that Mara
gon passed on some campaign
contributions to him.
The principal charge against
Maragon is that he lied when he
told Senators he had negotiated
no business with Federal depart
mentS and taken no fees between
1945 and the time his appearance
before the subcommittee on last
July %.