Evening star., 1951-09-15
z Ex-RFC Aides
Can 'tRemember
Meeting on Loan
Quizzed on Reported !.
High-LeveI Session on
LithofoId Application
By Robert K. Welsh

Dy koDeTt n. WolSn
The former RFC division chiefs
today denied or said they
couldn't remember-several high
level discussions described to a
Senate subcommittee in a diary
concerning a st. Louis company's
efforts to get loans in 1949.
The subcommittee is trying to
determine whether the American
Lithofold Corp. got any help from
William M. Boyle, jr.. now Demo-
cratic National chairman, in OBJ
tanning loans totaling $565 900.
Chauncey Y. Dodds, assistant to
the RFC deputy administrator,
and Ernest B. Howard, until re-
Gently chief of the RFC Business
Loan Division, told the committee
they did not know Mr.. Boyle. They
also declared they had no recollec-
ton that any one representing the
Democratic National Committee
ever called them in connection
with the Lithofold Corp. applica-
tons, or any other loan matter.
Questioned on Diary Entries.
Mr.. Howard testified at today's
open session. The testimony of
Mr.. Dodds. who was head of the
RFC Small Business Division in
1949, was taken in closed session
late yesterday and was released
by the subcommittee today.
The bulk of the Questioning in
both instances dealt with diary
entries by John E. Toole, former
treasurer of the Lithofold Corp
Those entries, read at the SUBJ
committee sessions earlier this
week frequently mentioned Mr.
Howard and Mr.. Dodds as Mr.
Toole described his own activities
in behalf Of the company's loan
applications.
Despite prodding by subcommit-
tee members, Mr.. Howard repeat
Iedly said he had no recollection of
most of the things Mr.. Toole had
written about him in diary entries
in December, 1948, and January.
I1949.
He denied, however, a statement
by Mr.. Toole that on one occasion
in January, 1949, he took home the
Lithofold loan file from the RFC
Office and later suggested that Mr..
Toole confer personally with Har-
ley Hise,.. then RFC board chair
man.
Can't Recall Conference.
He said he could not recall hav-
ing attended a conference with
Mr.. Toole and Chairman Hise, as
related by Mr.. Toole.
Asked whether he had ever re-
ceived "gratuities" from Mr.. Toole
or any one else connected with
the company. Mr.. Howard saic
Mr.. Toole gave him a quart oi
liquor in 1945. He explained that
they were old friends and that the
gift had no connection with any
loan matter. He added that hi
did not drink, and therefore
passed the bottle on to a frienc
Of mine"
Mr.. Howard confirmed, for the
most part, Mr.. Toole's statements
that the company's loan applica-
ton, after receiving an $4,000
working capital loan in March
1949, was handled by "higher-ups'
in the RFC in the fall of 1949
This was an exceptional procedure
because such loan matters nor.
mally were reviewed by his divi.
sion before going to higher review
committees and the Beard of Di'
rectors, he said.
Mr.. Howard disclosed that he
conferred last week with Mr.
Dodds and several RFC examiners
and was assured by them that he
had never discussed the Lithofold
loan with them, as Mr.. Toole
stated IN his QldTy.
Unaware of Pressure.
Mr.. Dodds, according to the
transcript given out by the sub
committee. said he never received
any gifts from the st. Louis COM
pany and, so far as he recalled
there was no awareness of any
coercion or pressure of any kind.
He also said he did not recall
having discussed the loan with
Mr.. HiSe.
Subcommittee counsel Franci!
Flanagan called attention to ar
Office diary entry by former RFC
Director William E. Willett, saying
that James P. Finnegan was ir
MIR. Willett'S Office in March, 1949
and met Mr.. Dodds. Mr.. Dodd'
testified he had no recollection oi
meeting Mr.. Finnegan who unit
last April was internal revenue
collector and has been mentioned
in connection with the Lithofolo
Corp. loan.
Meanwhile, Senator Nixon, Re.
publican, of California today
urged the subcommittee tt
broaden its investigation to fine
whether Mr.. Boyle has hac
connections having or nOlitical