Evening star., 1950-12-27
RFC Shakeup Probed
By Senators on Hint
OF Political Purge
By me Assoeiesed Press

Senate investigators said today
they are looking into charges of
political intrigue In the Recon-
struction Finance Corp.
A special subcommittee investi-
eating the big Government lending
agency disclosed it is inquiring
into accusations that an RFC
personnel shakeup has been used
as an excuse to shelve employees
whose political views are not
fright"
The inquiry stems in part from
the recent resignation of L. B.
Glidden, loan manager of the
RIGS Dallas, Tex, Office. In a
public statement Mr.. Glidden said
he was quitting because his au-
thority had been undercut by a
subordinate who boasted of close
friendship with one of President
Truman's White House aides.
II am completely fed up with
politics and politicians" he de-
clared in the statement.
Visit to Truman Recalled.
His resignation came at a time
when relations between the White
House and the subcommittee,
headed by Senator Fulbright,
Democrat, of Arkansas was re-
ported as none too friendly.
Senator Fulbright recently led
a delegation to a closed-door
meeting with Mr. Truman. The
Senator since has refused to con-
firm or deny published reports that
he told Mr.. Truman then that the
Senate will not confirm the five
men the President has chosen to
constitute the RFC Board of Di-
rectors.
Twice the Senate has refrained
from approving the nominations
of the five man board which runs
RFC affairs.
Meanwhile the RFC confirmed
that John j. Hagerty, whose in
again career with the
agency had caused friction with
the subcommittee. is out again.
Figured in Waltham Loan.
Mr.. Hagerty. as manager Of
the RIGS Boston Office, figured in
negotiations that led to RFC
authorization of a S6 million loan
to the Waltham Watch Co. He
then resigned, became Waltham's
head, and returned to the RFC
payroll after the company went
into receivership earlier this year.
Without comment, the RFC
confirmed today that he now has
resigned again.
A spokesman for the subcom-
mittee told a reporter the group
is more interested now, however.
in Mr.. Glidden's accusations and
the reasons for an RFC personnel
shakeup in the Houston, Tex,
Denver, Detroit and Boston
branch Offices. and in the RFC
headquarters here.
The RFC has described the
shakeup as an economy move to
cut IS million a year from its
operating costs.
May Question Glidden.
The subcommittee spokesman,
declining to be named, said his
group may call Mr.. Glidden as a
witness at a public hearing, but
has held fire for various reasons.
One was it did not want to con-
flict with the civil service COM
mission, which also is looking into
some aspects of the shifts.
In his public statement Mr..
Glidden said that a subordinate,
hired with the aid of Donald 8.
Dawson, an assistant to Presi-
dent Truman, schemed to get Mr..
Glidden fired. He named the
subordinate as John B. Skiles.
chief of the Dallas Offices per-
sonnel and administrative divi-
sion.
Mr.. Glidden quoted Mr.. Skiles
as having boasted "of his political
influence" in RFC affairs.
Mr.. Glidden said he would have
been fired except for protests
from some Texas businessmen and
bankers. Instead. he said, he was
ordered transferred to Houston
but resigned, instead.