Evening star., 1951-03-12
RFC,
Continued From First Page.)

sold the ships, Mr.. Casey replied:
Believe it or not, Senator, ]
don't remember"
The witness also said he could
not recall offhand how many
others were associated with him
in the two companies. He said
he thought there were "30 or 40
or So" He said he recalled that
the treasurer was a man named
James Mackey of New York.
Subcommittee members pressed
him closely for information about
the manner in which the twin
companies were able to borrow
$40 million from an insurance
company when the companies had
"a total capitalization of only
100000. He said there were va
rious other assets such as the
ships themselves and the charter
of the companies"
The Senators also were curious
about the tax record of the COM
panies. Mr.. Casey said that, so
far as he could recall, the Ameri-
can Overseas Tanker Co. did not
have to pay any income tax. He
indicated that the American COM
pany did not have to pay tax on
earnings obtained by the Green
wich Marine Co. under it's
Panamanian registry of the ships
themselves.
Firm Got "Tax Ruling"
Mr.. Casey declared, however,
that the American firm got tax
ruling" from the Treasury De-
partment. He said he could not
recall what official gave that rul-
ing or what member of the Ameri-
can company obtained it.
The questioning turned to the
tanker purchases after Mr.. Casey
said he had an arrangement with
Mr.. Rosenbaum's law firm for 20
per cent of the fees on all RFC
cases in which he participated
with Mr.. Rosenbaum. The Massa-
chusetts Democrat explained that
the agreement ended last August
when Mr.. Rowe, his former legal
associate. was appointed an RFC
director.
Meanwhile, the subcommittee
was split on whether to continue
sessions beyond this week.
Senators Capehart and Bricker,
Republican. of Ohio demanded
that the hearings dig into some
OF the numerous other cases or
complaints brought to the sub
committees attention in recent
months. They declared the Sub
committee has just scratched the
surface"
Democratic members want to
wind up the hearings this week.
They believe the subcommittee has
achieved its purpose by showing
that some RFC directors yielded
to outside influence. Further dis
closures, they said, would be
"repetitious. They explained that
the subcommittee has compara-
lively little time and money be-
fore its April 80 expiration date
but that other committees could
carry on Investigations of other
angles.
M;ehauv raSo cf,,d;oJ
The $3.5 million lent by RFC
several years ago to a housing
project sponsored here by Elder
Solomon Lightfoot Michaux,
Washington Negro preacher, is
one of "scores" of cases in which
subcommittee investigators re-
quested RFC records, subcom-
mittee official said.
That ties in to some extent
with the RFC loan status of the
Trust Co. of New Jersey, he said.
The official explained RFC owns
SIT million in preferred stock of
the Jersey City bank which in
1916 purchased RFC mortgages
on the housing project known as
Mayfair Mansions, Inc.
Elder Michaux yesterday issued
statement saying he was sure"
former RFC Chairman George E.
Allen never helped obtain any RFC
loans for the housing development.
Mr.. Allen, once prominent in
White House circles, was director
of Mayfair Mansions and an "hon-
orary deacon" in Elder Michaux's S
church here.
The scene shifted also to Florida
where President Truman awaits a
visit from Donald Dawson and
where the status of Mrs. E. Merl
Young as a White House employe
was officially reported "un-
changed"
No Word From Dawson.
Mr.. Dawson, the Presidents ad-
ministrative assistant in charge
of personnel matters, has been
formally invited to testify con-