Evening star., 1951-04-05
RFC Probers
Start New Move
.ToCaII Dawson
Fresh Complaint Also
Studied as FuIbrieht
Continues Inquiry
By Robert K. Welsh

Continues Inquiry
By Robert K. Welsh
A new effort to have Donald
Dawson testify and a study of a
new complaint against the Recon-
struction Finance Corp. were un-
derway today by the Senate sub
committee investigating that
agency.
The subcommittee voted late
yesterday to refer various matters
to the Senate Expenditures inves-
tigating subcommittee for
broader inquiry into subjects
ranging from surplus tankers to
loopholes in tax laws.
But it will not shut up shop,
Chairman Fulbright' said. Mem
bers decided, he disclosed, that
something more should be done
about trying to bring Mr.. Daw-
son, an aide to President Tru-
man. before the subcommittee for
questioning about frequent testi-
mony linking him to influence on
some RFC directors or. activities.
Method Not Worked Out.
The way this will be attempted
has not yet been worked out in
detail, the chairman added. He
reported that such varied sugges-
tions as these were discussed at
the two-hour closed session yes
terday:
That Mr.. Dawson be SUBJ
poenaed, course that Senator
Fulbright personally does not ia
vor.
That the subcommittee send a
stronger invitation than the Feb
ruary 26 letter, which Mr.. Dawson
never answered.
That the subcommittee write
directly to President Truman and
ask that he advise his aide to go
before the subcommittee.
That the committee set a spe-
cial time possibly to be known
as "D-day'-when it would sit in
session to see whether Mr.. Dawson
would appear voluntarily.
The new complaint against RFC
was brought by Senator Tobey,
Republican, of New Hampshire.
Neither he nor any member Of
the subcommittee would reveal its
nature. Senator Fulbright said it
does not concern an RFC loan.
Another member disclosed it
dealt with apparent political in
f1uence' and might involve some
big names"
!. Preliminary Check First.
"Cur investigators will have to
check it before we can say any
thing about it," the chairman ex-
Eplained. There are certain gaps
that would have to be filled be-
fore we would be justified in max
ing anything public. The whole
thing may not turn out to be-
worth Investigating"
The principal case the subcom-
mittee will refer to the Expendi-
lures subcommittee headed by
Senator Hoey, Democrat. of North
Carolina. developed from testi-
mony last month by former Rep
resentative Joseph E. Casey, DEM
ocrat, of Massachusetts,.
Mr.. Casey headed a company
that had an original capitaliza-
ton of 100000, got $40 million
loan from an insurance company.
bought five surplus tankers from
the old Maritime Commission in
1947 and sold them last year at q
$2.8 million profit.
At least two of the tankers now
are owned by a group known as
the China International Founda-
ton, headed by Newbold Morris
of New York.
Investigation by the Hoey sub
committee is expected to go be-
yond the Casey groups transac-
tions and to explore many other
aspects Of Maritime Commission
operations and policies.
Tax Disclosures Possible.
Fulbright subcommittee mem
bers said they voted in favor Of
the Expenditures Subcommittee
instead of the Commerce Commit
tee mainly because questions Of
''tax evasion or avoidance" as
well as possible evidence of polit-
ical influence, might crop up in
the inquiry. Republican Sena-
tors Capehart of Indiana and
Bricker of Ohio voted to send the
matter to the Commerce Com
mittee.
Referrals to the Expenditures
Subcommittee will include several
other subjects developed by the
Banking Subcommittee in its
probe of RFC, Senator Fulbright
said. A letter detailing those mat
ters will be sent to Senator Hoey
probably today, he added.
The next open hearing by Sen
ator Fulbright's subcommittee will
be on complaints by a former off,
cial of the Mobile (Ala.) Paper
Co., that he was forced by RFC
authorities to give up company
control. A large interest in the
company went to relatives Of Rep
Boykin, Democrat, Of
Alabama. the official complained.
Mr.. Boykin has denied there
was any wrong-doing or improper
pressure, and he has asked for
hearing. Senator Fulbright said
that. at the subcommittee's re-
quest. the RFC has been invests
eating the matter here and in Ala
bama. AS soon as the RFC report
Us ready, the subcommittee will
schedule hearings. he said.