Evening star., 1951-02-22

shire, as stated in the story.
The Star regrets the error.
two other company officials from
Michigan.
Senator Fulhright indicated the
open inquiry will delve deeper into
closed session evidence, sketched
lin the subcommittee report of Feb
ruary 2. The report said some of
the five RFC directors bowed to in
fuence exerted by Mr.. Young,
Mr.. Dawson. Joseph E. Rosen-
baum, Washington attorney. and
others.
The subcommittee said 1t has
memorandum by former RFC
Director Harvey j. Gunderson in
October, 1949. saying that Mr..
Young approached Kaiser
Frazer officials.
Got S44 Million Loan.
The memorandum does not as
sert Mr.. Young sought to be
rewarded" by the company. 1t
states he attempted to create the
impression that he had influence
with the RFC and that he had
brought about improvement of
conditions governing the Kaiser
Frazer loan," the subcommittee
report said.
Kaiser-F Frazer borrowed $44 mil
lion from RFC in 1949 and re-
ceived an additional loan of $25
million last December.
Mr.. Young, an RFC examiner
for several years before taking
high-paying jobs in 1948 with
the Lustron Corp. and the F. L.
Jacobs Co. of Detroit. both RFC
borrowers, denied he ever sought
or accepted "one cent in fees or
otherwise attempted to influence
RFC loans for any one. Mr..
Young now is an insurance broker
and estimated his 1850 income
at about $4,000.
| Mr.. Bohannon, a former FBI
employe, was attorney for Tex
mass at the time of $40 million
loan application. He asserted Mr..
Young suggested the fee arrange
ment-$l0,000 down and employ
ment for 10 years at $500 a year
when they conferred here in
January, 1949.
| Says Bohannon Made Offer.
Mr.. Young, a 38-year-old Miss
ourian, who assured the subcom-
mittee he is not related to Presi-
dent Truman, contended Mr.. Bo-
hannon made an offer involving
a "sizeable amount of money
He also said Mr.. Bohannon told
him William M. Boyle. jr., would
have to be in on the arrangement
as Washington lawyer.
Mr.. Boyle. now Democratic ma
tional chairman, was practicing
law here at that time but also was
active at Democratic headquar-
ters where Mr.. Young worked or
a voluntary basis. Mr.. Boyle never
was contacted and knew nothing
lof the Texmass loan, Mr.. Bohan'
non said. MIR. Young testified h
Informed Mr.. Boyle of the con
versation with Mr.. Bohannon bu
did not discuss the loan as such
Mr.. Boyle. he said. told him "tt
forget it.
| In any event. the fee PROPOSE,
ton never panned out. Mr.. Bo.
hannon said the company decided
not to hire Mr.. Young in connec-
tion with. the loan. Mr.. Young
testified he rejected the offer and
notified Mr.. Bohannon that, as
a former RFC employe, he would
have nothing to do with loan
applications to that agency.
Senator Tobey urged Senator
Fulbright to subpoena L. B. Gid
den, former manager of the Dallas
RFC office. and John B. Skiles
former personnel manager there,
as witnesses ito throw light on
this"
Both Mr.. Glidden and Mr..
Skiles were mentioned frequently
in testimony yesterday, as were
an affidavit read by Mr.. Bohan-
non and memorandum from
RFC files.
Now Out of RFC.
Mr.. Glidden recently left RFC
after clash with Mr.. Skiles. He
stated that "a stencil of politics
arises from RFC loans. Mr.. Skiles
also has left RFC, the Subcom-
mittee was informed. Mr.. Bo-
lannon's testimony indicated that
Mr., Young and Mr.. Dawson be-
Ilieved Mr.. Glidden should have
been discharged for not support
ing President Truman in the 1948
campaign.
The affidavit, containing SUBJ
stantially the same story that Mr..
Bohannon told on the stand, was
prepared at the request of former
RFC Chairman Harley Hise in
1949. Mr.. Bohannon explained.
1t related that Mr.. Bohannon
came here when Mr.. Skiles sug-
gested that he talk with Mr..
Young who, according to Mr..
Skiles. had a tremendous amount
of influence"
The memorandum, written by
Mr.. Glidden and sent to Mr.
Hise in May, l949, indicated that
the alleged fee arrangement in
cluded not only $4,000 for Mr..
Young. but $1,000 job for Mr..
Young's brother. The memoran-
dunn attributed that statement
originally to Mr.. Skiles who Mr..
Glidden said had told Mr.. Bo-
hannon that IF he wanted help
in connection with the applica-
ton, Merl Young could get him
the loan"
Mr.. Bohannon also was de-
scribed in the memorandum as
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