Evening star., 1951-07-25
FBI Probe Warranted
Al Detroit Arsenal,
House Member SAYS
BY the Assoeiotad Press

saSWOS sSssssSSh S~
BY the Assoeiotsd Press
DETROIT. July 25.-A House
subcommittee investigating activ-
tiles Of defense contractors and
personnel at the Detroit arsenal
and tank-automotive center di-
rected its investigators today to
keep digging"
The subcommittee from the
Committee on Executive Expendi-
lures headed back to Washington.
but its chairman, Representative
Hardy, Democrat, Of Virginia, said
it might return here-depending
on what new information investi-
gators find.
Representative Shelley, Demo-
crat, of California told reporters
as the subcommittee ended two
days of hearings into alleged &C
ceptanceS of gifts and favors by
Federal personnel that he believes
disclosures warrant FBI and
Treasury Department action.
Mr.. Shelley also said that he
believed removal of Brig. Gen.
David j. Crawford as commander
of the arsenal and center was
warranted.
Pace Promises Action.
In Washington Secretary of the
Army Pace promised appropriate
disciplinary action" would be
taken for any shortcomings"
brought to light by the inquiry.
Mr.. Pace also revealed that the
Army was conducting its own in
vestigation into the handling of
more than $1.4 billion in defense
contracts by the tank-automotive
center and operations of the
arsenal.
AS Mr.. Hardy's committeeman
departed, United States marShalS
were searching for Wayne r.
Campbell, 40-year-old Oetroiter,
through wholll witness testified
he had loaned large sums -four
or five times" to Federal employees
at the military establishments.
Campbell disappeared yesterday
after having sat in on part of
the previous days hearings.
MarshalS want to serve a COM
mittee subpoena on him to force
his appearance as witness.
In Anti-FreeZe Case.
Deputy Marshall Abel Lezotte
said Campbell was sentenced to
six months in 1945 for theft of
Government owned anti freeze
fluid while he was employed at
the arsenal.
Joseph WieSner, a Detroit
manufacturer who said he had
obtained contracts through Camp
bell, identified Campbell as the
man through whom he had made
loans to Federal employees. Mr..
Wiesner said he had been repaid
in every instance.
Gen. Crawford admitted dur
ing the hearings that he had
shipped trees from Michigan to
his Maryland home via Army
truck. had used Salvaged Govern
ment material to build a boat, and
had used for two days a hotel
suite maintained by firms to
which $33 million in defense con-
tracts had been let by the tank
automotive center.
Former Captain Mentioned.
The committee brought out in
its closing session that a former
Army captain and his brother
made more money in six months
obtaining defense contracts for a
Detroit firm than the companys
officers made in a whole year.
Nathaniel C. Patton of the
Governments General Accounting
Office said that the Metro En-
gineering g. Manufacturing Co.
paid John j. O'Haire, the former
ordnance captain, and his brother,
James P. O'Haire, $37,715 in COM
mission in the last half of 1947
while its two salaried officers, Bob
and Paul Canstein, drew $4,000
in pay for all of 1947.
Mr.. Patton testified that the
OHa1reS had been paid $138,599
through last December as commits
sions on $2,280,041 in contracts
secured for the Metro company.
Government Paid for Gifts"
Listed among expenses which
the Government paid under its
Metro contract was $55,000 for
gifts" and entertainment" and
such other items. Paul Canstein
said the outlay covered buying OF
drinks and+meals. sending bottles
OF whisky around at Christmas
time" and throwing a big Christ
mas party that drew 100 to 1875
Government employees.
These parties" he observed
ARE necessary evil"
Representative Bender, Repub-
lican, of Ohio said he planned to
press upon his return to Wash
ington for 81 million appropria-
tion to continue investigations OF
reports of influence in awarding
Of defense contracts.
LOST.