Evening star. [volume] (Washington, D.C.) 1854-1972, 1951-03-05
Dawson and Family
Got Rooms Free at
Luxury Establishment

Murray. got a SCI ,UOU lee Tor SerV'
ices in that and allied cases.
The younger Murray is az
attorney here and was paid attor-
ney's fees.
In a fast-moving hearing, 6
Senate Banking subcommittee alst
made public hitherto secret testi'
mony which Chairman Fulbrigh1
said showed Donald Dawson,
White House aide, stayed on "a
complimentary basis at a luxuri.
Gus Miami Beach hotel that re-
ceived a Federal loan.
The committee swung its spot
light to the Murrays and Mr.
Dawson after first getting testi-
mony from Hilton W. Robertson
a loan examiner for the RFC, thai
he, his wife and daughter spent 6
rent-free To-day vacation at the
Saxony Hotel at Miami Beach ir
l949. Mr.. Robertson said he hac
helped put through SIS million
loan to the hotel.
Testimony of Owner Cited.
Mr.. Dawson's name came nc
when the subcommittee released
testimony it obtained in closed
session last month from George P
Sax, owner of the Saxony Hotel
Chairman Fulbright today identi-
fed Mr.. Sax as a Chicago manu-
facturer who has been called 1.-THE
king of the punchboard manufac-
turing industry"
Mr.. Sax, according to the testi-
mony, related that Mr.. and Mrs
Dawson and Miss Dawson stayed
at the Saxony Hotel on two &C.
casions in December, 1949. The
price of their room was approx
mately $50 day." Mr.. Sax said
HE paid for everything but the
ROOM" Mr.. Sax told the subcom-
mittee. The testimony indicated
that MrssDawsen did not accom-
pany her husband there on the
second occasion.
Refused to Accept Pay.
Before introducing this testi-
mony into the record. the subcom-
mittee brought out that Mr.. Rob-
ertson stayed with his wife and
daughter at the Saxony Hotel in
February, 1850, for 10 days.
Mr.. Robertson explained that he
paid for all meals but that Mr..
Sax refused to accept pay for
other expenses.
The RFC loan to the Saxony
Hotel has been repaid. But the
subcommittee said it wants tc
know whether the loan met the
public interest" requirement OF
the RFC law and why RFC direc-
tors overruled subordinate officials
who opposed it. They also want
to determine why the loan was
granted after completion of the
@O A4l41lOIl otl uCIulC
For the first time since the
hearings began February 81, E.
Merl Young. a former RFC ex-
aminer, was not on the formal list
Of prospective witnesses today
Mr.. Young, Mr.. Dawson, Joseph
H. Rosenbaum, Washington at
torney, and others have been
mentioned frequently in testimony
concerning RFC loans.
Mr.. Young's wife, Lauretta. a
White House stenographer. re-
fused to say yesterday whether she
has resigned her job. President
Truman last Thursday would not
comment on reports that there
had been some change in her
status at the White House.
2 Directors May Testify.
The question arose from dis
closures that Mr.. Rosenbaum, who
represented a New York City fur
rier that obtained RFC approval
of a loan, paid for a mink coat
delivered by that company to Mr.
and Mrs. Young. Mr.. Rosenbaum
explained it was loan to Mr.
Young.
Before ending public hearing
the subcommittee may hear from
two RFC directors. Director Wal.
ter L. Durham submitted a ply.
sician's certificate that he is tot
i'll to undergo the strain of al
open hearing but he agreed to ap.
pear in closed session.
c. Edward Rowe. who becam,
a director last August. has asked
to be heard. He, Mr.. Durham ant
William E. Willett were the three
directors specifically named in thu
subcommittee February 2 repor
as having yielded to outside in.
fluence.
Notwithstanding the subcom.
mittee's hope of ending the hear.
ings Friday, the staff was still
busy investigating various othel
cases they said indicated outside
influence on RFC loans.
Subcommittee members sait
they received a mimeographet
complaint today from William
Guido Of North Tonawanda, N
Y, that the inquiry seems likel,
to end in merely scratching tn
surface"
Mr.. Guido said he was a form
er dealer for the Kaiser Fraze
Corp. which got $37.5 million il
RFC loans. He urged the subcom
mittee to look more thorough.
into those loans. The subcommit
tee investigated them last yea
and discussed some aspects o.
them at the current hearings.
The mink coat incident, he de.
elared, should not become a rec
herring" to avoid exposure o.
intrigue IA high places"