Evening star., 1950-01-18
Vaughan Is Censured
In Senate Report on
Five-Percenter Probe
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manufacturers, boasting of inside
information and intimating they
could help get the contract for
fee of 10 per cent. They signed
their letters with the name of a
third person who, like the manu-
facturer's agent, had no knoWl-
edge of their scheme.
AS for Gen. Vaughan, the COM
mittee repeatedly indicated its
belief that his name will figure
in the Maragon trial. just as the
names of the two men were en-
twined during the public hearings.
The committee withheld its con-
clusions on several Maragon-
Vaughan incidents because of the
part they may play in the trial.
Track Interest Not Clear.
The committee noted that Ger
tain features" of the case involv-
ing the Tanforan (CalifO race
track now are being considered
by the Justice Department. In
touching on this case, the COM
mittee said:
up to this time, it is not clear
to the subcommittee why Gen.
Vaughan, who held the position of
Co-ordinator of Veterans Affairs,
attempted to expedite the applica-
ton for the obtaining of building
materials for a race track at
time when he must have known
that, in so doing, he was reducing
the materials available for veter-
ans housing, although Gen.
Vaughan maintained that his only
interest was in having the matter
determined.
For its opinion of the gift of
home freezers to Washington Of
flcials, the committee referred to
another section of the report in
which it condemned the practice
of Government officials accepting
"gratuities" from businessmen
especially Officials in high public
Office" The committee said it had
discovered that some Govern
ment officials do accept gratuities
from businessmen dealing with
the Government.
The committee also criticized
Gen. Vaughan's failure to make
it clear to Government agencies
that he was talking for himself
and not the President when he
intervened in Government trans
actions.
There seemed to be general
acceptance by the Government
officials of the view that, when
Gen. Vaughan called about some
matter pending before that de-
partment, he represented the
President and consequently more
attention was given the matters
than would have been the case, if
it had been known that the Presi-
dent was not concerned and knew
nothing about the CALL" the re-
port said.
Maragon Used Prestige.
Maragon, commented the COM
mittee, used "the great prestige
of the White House for his own
private advantage" The report
said Maragon appears to have
been" a member of the fraternity
Of operators who '..go to ingenious
lengths to convince businessmen
that the day-to-day decisions of
Government are based on collu-
sion rather than on merit"
AS for the others whose names
cropped up during the inquiry, the
committee criticized some for
working for private firms while
Government employees. some Gov
eminent officials for assisting
"five-percenters" and some five
percenters" for taxing their serv-
ices.
James v. Hunt, the self styled
management counsellor, whose ac-
tivities in behalf of private firms
precipitated the inquiry, was cited
among those who, the committee
said. mixed public and private
employment. The committee spe-
cifically recalled testimony that
Mr.. Hunt was employed as a $50
a-day consultant by the War
Assets Administration while taking
fees from firms doing business
with WAA.
Watts Case Cited.
Maj. Gen. Alden H. Watt, the
chief of the Chemical Warfare
Service, who was suspended be-
cause of evidence uncovered by
the committee and then retired,
was described by the committee
as IAN illustration of a Govern
ment official who actively assisted
five-percenter."
THE evidence is clear" said the
committee, that Hunt succeeded
in influencing Gen. Watt to give
special and unusual consideration
to his (Hunt's) client because he
felt that Hunt could help him in
the furtherance of his military
career"
In the case of Maj. Gen. Her.
man Feldman. the quartermaster
general, who was suspended and
then ordered back to duty, the
committee commented that he
used bad judgment in his deal
ings with Hunt because he knew
the kind of business Hunt was
conducting"
The committee reported that,