Evening star., 1950-01-18
Vaughan Is Hit
In 5-Percenter
ReporttoSenate
Committee Criticizes
Freezer Acceptance,
AssoiIs Morogon
By Miriom Gutenberg

Committee today publicly repri-
manded Maj. Gen. Harry H.
Vaughan, the Presidents military
aide.
The committee sent the Senate
a unanimous report following up
its sensational inquiry of last
summer into activities of men who
sold their services to businessmen
by claiming they had influence
with Government officials.
Gen. Vaughan, in his two-day
appearance on the stand during
the inquiry. had denied any wrong
doing in accepting gifts Of home
freezers for himself and other
Washington notables from a bust
ness firm. President Truman let
it be known then that he did not
intend to discipline his aide.
The committee today took O
different view. It took Gen.
Vaughan to task not only for ac-
cepting the home freezer. but also
for befriending John Maragon.
intervening in behalf of a race
track and giving the impression
he was speaking for President
Truman.
Gen. Vaughan's reaction to the
criticism was terse I have no
statement to make whatever. I
am too busy"
Maragon Called "Fixer."
Maragon, the Washington man
about-town, who once boasted
ready entree to the White House.
was indicted earlier this month on
charges of lying to the Senate
committee. His trial is set for
February 20.
The committee described Mara
gon as an outright f1xer," and
added:
There is no doubt that Mara
CONS friendship with Gen. Harry
H. Vaughan made his activities in
his dealings with the Federal Gov
ernment possible"
The committee termed it "in-
credible" that Maragon could con-
tinue his "nefarious activities in
dealing with Government officials"
over period of years, particularly
because several of his dubious ac-
tivities of recent years have been
publicized and because he was
caught smuggling" perfume oils
into the country in 1945.
COP Approves Report.
Republicans joined Democrats
on the committee in approving the
report. Last week, the three
Republican members protested to
the chairman, Senator Hoey.
Democrat, of North Carolina, that
the report dealt to easily with
Gen. Vaughan. AS result, the
report was revised.
Along with its review of past
abuses exposed at last summers
hearings, the committee outlined
steps that have been taken to
make it easier for businessmen to
deal with the Government
without benefit of influence
peddlers."
And the report concluded with
a pledge that the committee will
hold more hearings. One of the
subjects of the future hearings,
the committee noted. will be
matters involving the Verley
Co."-the perfume firm that do
mated the home freezers to Gen.
Vaughan.
The names that made news
last summer were touched on by
the committee to illustrate "spe-
ciflc abuses" and no new names
were added to the roster.
"10-Percenters" Halted.
The report. however, did cite
one new case-that of two un-
named former employees in a Gov
ernment procurement division,
whose scheme to become Topper
centers" was nipped in the bud.
The committee said it withheld
their names, because it believes
the two young entrepreneurs have
Learned a lesson" and are now
in legitimate business; but the re-
port added that the evidence
against them will be turned over
to the Justice Department to see
if it warrants criminal prosecu-
ton. The committee did not re-
veal how the scheme was exposed.
The two men. according to the
committee, found out future Gov
ernment needs for a specific item
while Government employees. When
they left the Government, the re-
port went on, they borrowed
letterheads from a bona f1de
manufacturers agent and ad-
dressed identical letters to 10
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