Evening star., 1951-03-01

gerous to subject him to the strain
OF an open hearing"
A letter from Mr.. Dunham.
however. requested an opportunity
to testify in closed session. SEN
ator Fulbright said such session
would be held within a few days.
Mr.. Young. center of considera-
BILE testimony at the open hear
ings which began last week, was
not in the hearing room today.
Senator Fulbright explained, how
ever, that Mr.. Young had volun-
teered to appear whenever called
in connection with Mr.. Strand
lund's testimony.
Dawson Visits Described.
The subcommittee also heard
today that Donald Dawson, Presi-
dent Truman's aide on personnel
matters, made annual visits dur
ing the last five years at the
Florida estate of Rex Jacobs.
MI. Jacobs, according to Mr..
sStrandlund, had an active part
in the alleged attempt by Mr..
Dunham to unseat him as Lustron
president and transfer stock con-
troll to others including Mr.
Young.
Mr., Jacobs testified that Mr..
and Mrs. Dawson visited his Flor
ida home along with many other
people. He said he could not re-
member if the Dawsons were
there at time early in 1949, when
Mr.. and Mrs. Young also were
house guests.
Mr.. Dawson's name came up
again today in testimony that the
RFC directors at one time con-
sidered appointing Mr.. Young as
secretary of the agency.
81 think Mr.. Dawson was in
terested" Mr.. Gunderson testi-
fed. But at no time did he dis
cuss with me any question of Mr.
Young becoming secretary except
much later in casual conversa-
ton after another man had been
appointed"
Hise Suggested Young.
Mr.. GunderSon disclosed that
the appointment of Mr.. Young by
the Lustron Corp. was originally
suggested by former RFC Chair
man Harley Hise, He said he re-
layed that suggestion to Mr.
Strandlund and the appointment
was made.
Mr.. Strandlund described the
alleged moves against him as "a
plan of conspiracy" and "opera-
tions by wolves"
Mr.. Dunham stated in threat
ening language" MFR. Strandlund
charged, that the RFC board
members would close down the
plant, stop the operation, con-
solidate it with some other en-
terprise. the identity of which he
would not disclose. and made
other dire threats to force me to
have our directors vote full powers
and control of Lustron to a COM
mittee to be appointed by RFC."
Mr.. Strandlund did not specifi-
cally name the men to whom he
said Mr.. Dunham wanted to have
the stock transferred. He indi-
Gated, however, that Mr.. Young
was one of them.
Jacobs Denies Charges.
Mr.. Jacobs took the stand to
deny most of Mr.. Strandlund's .
charges. He said his survey re- /
port on the Lustron Co. was
merely designed to save money
and safeguard the RFC interest |
in the success of the concern.
He also explained that the re-
ported SIS "cut" that Mr.. Young /
was supposed to get on each wash /
ing machine used by the Lustron
Co. developed after the Jacobs I
Co. had sold its washing machine
business to another concern.
Subcommittee members esti-
mated that. if the plan had gone
through, Mr.. Young would have
received about $1,000 for each
days output of Lustron houses.
Naturally, I was disturbed
when I heard about Mr.. Young's
employment by the Jacobs Co.
while he was employed by the
Lustron Co.," Mr.. Strandlund de-
cleared. 4
Before Mr.. Strandlund took the
stand, Senator Fulbright disclosed
that Flint, Mich, brewery, in
which Mr.. Young invested money
last year, had applied for two
RFC loans of $150,000 each in
January and February, 1850. Both
applications were Withdrawn a
few months later.
Brewery Asked for Loans.
Testimony last Tuesday dis
closed that Joseph H. Rosenbaum
lent Mr.. Young $500 to invest
in the brewery owned by Demo-
cratic N tion ii Committeeman
George Fitzgerald of Michigan.
Mr.. Rosenbaum is Washington
attorney who, with Mr.. Young,
Mr.. Dawson and others, were
criticized in a subcommittee re-
port last month on alleged in
fuence in RFC lending operations.
Mr.. Strandlund testified today
that he hired Mr.. Young for the
$4,000 salary plus expenses that
amounted to about $4,000. He
said he did not know until later
that Mr.. Young at the same time
had $4,000 job with the