Evening star., 1951-03-11
Missouri Tax Collector Linked
With Trying to Get RFC Lease;
Fulbright Hints Spread of Probe
House Showdown Due
On Truman Proposal
To Revomp Agency
By Robert K. WoIsh
By Robert K. Walsh

A Senate subcommittee turned
the heat on an Internal Revenue
Bureau Collector in Missouri yes
terday as its disclosure of Recon
struction Finance Corp. affairs
spurred the House toward show
down this week on continuance of
RFC itself.
The subcommittee resumes pub
lie hearings tomorrow. At the
same time, grand jury here be-
gins an inquiry into certain as
poets" of testimony and evidence
at the hearings thus far. Subcom-
mittee investigators have cited the
possibility of perjury and other
law violations such as tax evasion.
In another development yester-
day, it was revealed Jesse Jones,
former RFC head, wrote Senator
Fulbright. Democrat, of Arkansas.
that he has been shocked" by
facts uncovered by the senator's
subcommittee.
Suggests Abolishing Agency.
"The situation is much worse
than I had any idea it could be-"
Mr.. Jones said in letter, the text
of which was printed last night
by the Houston Chronicle. Mr..
Jones is publisher of the news
paper.
Mr.. Jones repeated recommen-
dation made last year that the
RFC be abolished.
Senator Fulbright yesterday
wrote to Internal Revenue Com
missioner George j. Schoeneman
about testimony concerning James
Finnegan, Internal Revenue Col
lector at st. Louis. He told re-
porters this was part of the new
leads and loose ends" in a pic
ture that might be pursued by
other congressional committees
or administrative agencies. The
subcommittee, he said, hopes to
wind up its inquiry this week into
influence and favoritism" affect
ing RFC.
During the course of a hearing
held before this subcommittee
March g." he wrote Mr.. Schoene-
man. REX c. Jacobs, president of
the F. L. Jacobs Co. of Detroit,
testified concerning his efforts to
lease certain facilities from the
Government of the United States. |
According to his testimony. James
Finnegan. the Collector of Inter-
nal Revenue in st. Louis, was to
be his associate in operations un-
der the lease.
Excerpts Are Copied.
Believing that this might be a
matter in which you would wish to
take an interest, I have had the
pertinent excerpts copied from the
transcript of the hearing and send
you copy of them with this letter.
If you find that you wish to take
an interest in the matter, I would
appreciate your advising me of
your inquiries and their outcome ;"
Mr.. Jacobs, as we'll as White
House Aide Donald Dawson, E.
Merl Young, a former RFC ex-
aminer. and others have been
mentioned frequently at the sub
committee inquiry. They have
been named as figures in what
Senator Fullbright describes as "a
pattern of influence" touching
some RFC directors and loans.
In that connection, subcommit-
tee sources revealed yesterday
that Mr.. Young notified them he
and his wife expect to visit Mr..
Jacobs at his estate near Home
stead, Fla, this week "for a rest"
Mr.. Young is an $18,000-a-year
employe of Mr.. Jacobs.
Mr.. Jacobs testified March 2
that he once tried unsuccessfully
to lease the Nicaro Nickel Co. of
Cuba from the General Services
Administration. Mr.. Finnegan, he
said, was to be his partner if the
lease went through. He recalled.
Continued on Page AS, Col. A.