Evening star., 1951-04-15
Investigation Of RFC
To Take Up Letters
From Congressman
By Robert K. Welsh

By Robert K. Welsh
The Senate subcommittee in
vestigating the Reconstruction
Finance Corp. this week viii start
looking into scores of old congress
sional letters that might give q
new twist to the inquiry.
Chairman Fuibright announced
yesterday he will ask RFC for
copies of several hundred letters
written to that agency in recent
years by members Of Congress
concerning loan matters.
Existence of the letters has been
known since late in February
when the White House obtained
copies. The President said later
that he found nothing Illegal in
them. The subcommittee, follow
ing protests by some of its men,
bers that the White House was
trying to 'intimidate" them in
the RFC inquiry, also asked for
copies but never went after them.
A Burning Issue.
Content of the letters, however,
/ suddenly became a burning issue
. as well as something Of q hot
potato-last week. Senator Tobey,
Republican of New Hampshire,
disclosed he recorded a telephone
conversation in which President
Truman last February claimed
to have good information" that
some members of Congress took
fees in connection with RFC loans.
In a later conversation, also
recorded, the President said he
had no evidence of that kind,
Senator Tobey related.
I'm view Of all the furore caused
by Senator Tobey's statments. II
will send for the letters" Senator
Fulbright told reporters.
Hard Task Ahead.
The task Of examining the 500 to
800 letters will require consider
ably more than cursosy reading"
subcommittee officials explained.
just how it will be handled is
something for the subcommittee to
decide at a meeting this week,
the chairman said.
In order to get a fair under
standing Of the nature and pur-
pose Of particular letter, it was
explained, the entire folder" of
the individual loan application
will have to be studied in most
instances.
Senator Bricker. Republican, of
Ohio. as well as Senator Full
bright and several other members
Of the subcommittee said they
doubt that anything illegal or
unethical will be found.
But this cloud raised by the
Presidents statement just can't
be left hanging in the air." Sena-
tor Bricker commented. <$E II
Appointments Awaited. - I ,
Meanwhile. RFC found itself
temporarily in a somewhat sus-
pended state pending appoint
ment OF $17,50o-a-year admin
istrator to replace the present
f1ve-member board of directors.
w. Stuart Symington, chairman
Of the National Security Resources
Board, is repeatedly in line for
the position if President Truman
can persuade him to take it.
Another report heard at the
Capital yesterday was that Jess
Larson. General Services Admin
istrator and former War Assets
Administrator, Is being considered
by the President.
Deputy Also Required.
The Presidents plan for RFC
reorganization calls also for ap-
pointment of a deputy admin ,
strator of the agency. Subcom-
mittee sources said they would
not be surprised if the present
RFC chairman, w. Elmer Harber,
an Oklahoma Democrat, or Walter
e. Cosgriff, a Utah Republican,
might be offered that job.
The Presidents appointees as
administrator and deputy admin j
tstrator would have to be con- ]
firmed by the Senate. Mr.. Harber
and Mr.. Cosgrif were not named
in the Senate subcommittee's re-
port that said some directors 6
yielded to influence by outsiders, s
including Donald Dawson, an aide ,
to the President.
Prompt appointment Of the new
RFC administrator is expected.
The Presidents reorganization
proposal narrowly got through the /,
Senate late Friday when oppo-
nentS Of the plan failed to get !.
- votes necessary to reject it.
The plan legally goes into ef- :
feet next Friday but its major !.
changes cannot become operative !
until the administrator and dep Z
uty are named and confirmed.
Senate committee hearings might
be held on the nominees. 4