Evening star., 1951-09-23
RFC Loan Talks
Are Defended
By Gabrie|son
Sought No Influence,
6. O. P. Chuirmun's
Letter to Hoey Says
By Gould Lincoln

NY 9O0t0 GuSOth
Republican National Chairman
Guy Gabrielson yesterday denied
there was anything improper in
his having conferred with Re-
construction Finance Corp. Off
lcials on loans to Carthage Hydro
Icol, Inc.
Mr.. Gabrielson, counsel and
president of the company, sent a
letter to Chairman Hoey of the
Senate subcommittee investigat-
ing charges that Democratic Ma
tional Chairman William M.
Boyle, jr,. exercised improper in
tiuence in RFC loan matters.
The report that Mr.. Gabrielson,
while chairman of the Republican
National Committee. recently con-
ferred with Stuard Symington,
IRFC Administrator, regarding the
loans to the Hydrocol company,
made by Senator Williams, Re-
publican. of Delaware, on the
Senate floor Friday. A number of
other Republican Senators prompt
ly criticized Mr.. Gabrielson and
suggested that he resign as COP
chairman.
Explains Sending Letter.
The letter to Senator Hoey,
Mr.. Gabrielson explained, was
being sent because the Senator's
subcommittee had been unable to
hear him yesterday. as Mr.. Ga
brielson requested.
Since delay would only &C
centuate the rumors and innuendo
concerning my business relations
with the Reconstruction Finance
Corp. I am submitting the basic
facts to the subcommittee in this
letter which I am also releasing
to the press. again request the
privilege of appearing under oath
at the subcommittee's earliest con-
Ivenience to answer all questions
and appreciate your assurance
that the opportunity will be forth
coming. the letter said.
Mr.. Gabrielson declared that
the rumors and innuendo were un-
founded. He added he was con-
vinced they have been spread
deliberately to confuse the public
in the hope of protecting crooks
within and without the Truman
Administration"
Refers to Democrats Attacks.
Mr.. Gabrielson was referring to
the fact that his connection with
RFC loans to Carthage Hydrocol
has been attacked from Demo-
cratic quarters on several occa-
sions. He made no reference in
his letter to the criticisms leveled
by the Republican Senators.
1t is understood the Republi-
cans believed two witnesses were
to be put on the stand yesterday
to develop the fact that Mr..
Gabrielson conferred with Mr.
Symington in recent weeks. Sem
ator Williams and other Repub-
Ilicans, who have been attacking
Mr.. Boyle for allegedly using his
influence to obtain loans for the
American Lithofold Co. of st.
Louis. decided to bring the Ga
Ibrielson matter out in the open
without delay.
Mr.. Gabrielson. referring to
the Democratic attacks on him,
said they had been launched be-
cause he was chairman Of the
Republican National, Committee
Attacks Came After Speech.
'"Those circulating these rumors
and innuendo would blacken a
reputation for morality and in
tegrity built up over so years.
They stop at nothing in their
frantic efforts to protect their
corrupt hides from the political
and legal repercussions of their
wrongdoing."
Mr.. Gabrielson said the cam
paign of Safeguarding him was
Launched under Congressional i'm
munity three days after he made
Ia political address at Elgin. ILL.,.
discussing the shocking moral
climate" Of the Truman Admins
tration. Soon thereafter, he said.
he released a six-page letter ad-
dressed to all Republican leaders
detailing the facts surrounding
an $18,5O0,000 loan to Carthage
(Continued on Page A-6. Col. ~