Evening star., 1951-05-12
|RFC Probers indicate
Report WiNCriticize
Dawson Severely
By Robert K. Walsh


By Robert K. Walsh
The Senate subcommittee that
has been hearing Donald Dawson
indicated today it's forthcoming
report may criticize him more
severely than did the report of
last February, which President
Truman called Jasmine.
The Presidents administrative
assistant in charge of personnel
matters left the stand yesterday
He declared the inquiry Clearly
demonstrated there was no i'm
{propriety on my part" in connec-
ton with Reconstruction Finance
Corp. matters. ...
Subcommittee Chairman Full
bright and other members took a.
different view. Senator Fulbright
said there were wide differences
between the subcommittee and the
witness as to the meaning and
scope of influence" and "impro-
priety" in official conduct. But
the discussion at the hearings
during the last two days will
have salutary effect on Govern
ment agencies, he maintained.
Senator Douglas. Democrat, of
Illinois, declared that "the UNI
bilical cord which connected Mr..
Dawson to RFC has been severed"
Recessed Until June.
The subcommittee recessed un-
til probably early in June. It's
unfinished business includes pre-
paration of report on the hear
ings held since February on lin
f1uence and favoritism" touching
RFC. ...
1t also includes plan for open
hearings on a complaint by a
Mobile (Ala) manufacturer that
RFC forced him to give up control
of paper mill and turn it over to
relatives of Representative Boykin,
Democrat. of Alabama.
Members said the report will
contain consider able comment on
Mr.. Dawson. Senator Fulbright
explained, however, that the sub
committees main purpose in the
investigation was not to examine
activities Of Mr.. Dawson. It was
to determine whether any RFC
directors yielded to outside in
f1uences. he said.
1--WE feel the report will show the
the hearings accomplished that
purpooe. the chairman declared.
Senator Fulbright said the
forthcoming report Will supple
ment" the February report but
make no essential change in the
earlier findings.
Senator Douglas predicted the
ultimate effect of the inquiry and
public hearings since February
will be Ito put the fear of Cod
and of committes-into a lot of
if1xers."
Defended Conduct.
Mr.. Dawson. however. vigorously
defended his official conduct from
an ethical, as we'll as legal, stand
point.
He noted that the subcom-
mittee's earlier report and the
testimony obtained at the hear
ings made no charge that he did
anything wrong. He insisted his
associations with some RFC direc-
tors and others who had dealings
with the agency were entirely pro-
lper, from an official standpoint,
and mostly social, from personal
standpoint.
In contrast to the quiet start
Iof the questioning of Mr.. Dawson
last Thursday, the windup yester-I
day was marked by frequent
clashes, particularly between the
witness and Senator Fulbright.
The Senator told Mr.. Dawson
the denials of using influence on
RFC were "a little beyond my
belief" Senator Douglas re-
marked that perhaps Mr.. Dawson
might have been unaware Of the
Influence he welded.
Senator Fulbright agreed that
the position Mr.. Dawson held in
the White House made his state
ments and actions "very impor-
tant." They could influence RFC
officials and other people. even
Iif he did not deliberately seek to-
exert influence. Senator FulbrightI
added.
Not a Subtle Person.
Senator" Mr. Dawson pro-
tested, Il am not a very subtle
person"
The Senator suggested that per-
haps Mr.. Dawson was too modest
in not recognizing the significance
Iof his position as a White House
aide and a former RFC official.
ut is my opinion" he told Mr.
Dawson, that all you needed to
do was to call up your friends at
the RFC and ask them to inter-
view an applicant. 1t is my be-
lief that such applications would
have been granted. 1t seems clear
that the board of directors was
weak and too easily influenced. 81
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lODWver Friend knneaIs