Evening star., 1951-04-22

Dangerous SIfudfl0ll,
FuIbrighi Tells Editors
Senate investigators Of the Re-
construction Finance Corp. ex-|
posed a dangerous situation in
thine for a new administrator toI
Lieut. the lines OF influence into
the agency. the American Society
lof Newspaper Editors was assured
yesterday.
Senator Fulbright, Democrat of
Arkansas. chairman of the sub
committee on RFC, told the edi-
tors it was political immaturity"|
Ito urge that the agency be abol-
lished because of the disclosures.
'I think / may have been guilty
lof over-emphasizing things that
have been wrong with RFC," he
lsaid. in reviewing the course of
the inquiry and suggesting reform
lof the agency.
"I think we caught the RFCI
situation in time and no great
damage has been done. I don't
agree that RFC ought to be
abolished because of evidence of
inefficient management, improper
Influence or abuse of lending pow
er. If you did that, a great many
Government agencies would have
to be abolished"
Senator Fulbright did not men,
tion w. Stuart Symington whose
nomination by President Truman
to head RFC comes up for con-
]sideration Tuesday by the Senate
Banking Committee. But he re-
called that his subcommittee, as
well as a bill he personally spon-
|sored, called for appointment of
a single administrator in place
Iof the present five-member board
of directors.
l Truman Action Praised.
The Presidents reorganization
lplan, that narrowly got through
Congress. was~a step forward, he
lsaid. The first major step the
new administrator can take, he
added. is to "cut the lines of in
Ihuence." Those lines, according
to the subcommittee's earlier state
ments, reached into the White
House.
! Referring to Donald Dawson,
the Presidents aide who has ig-
! nored the subcommittee invitation
to testify. Senator Fulbright told
the @editors at Hotel Statler
luncheon:
HE occupies a somewhat diff
ferent position than the other wit
nesses. We intend to send him
another invitation when he re-
turns to Washington. But there
is quite a question whether we
have power to subpoena him. We
don't have power to subpoena the
President and he is an admins
trative assistant to the President.
| "I feel it is his duty to come.
He ought to want to come. He
does not want to come. But !
don't think his testimony is that
important. The subcommittee
brought out quite enough to prove
the assertions in our report. If
that's the way he and the Presi-
dent want it. I'm content to let, it
stand"
Subcommittee Might Differ.
\ Sena tor Fulbrightl indicated,
however. that the subcommittee
might differ with him to the ex-
tent of issuing a subpoena for Mr..
Dawson. If the Presidents aide
then refused to testify and raised
constitutional issues the subcom-
Imittee conceivably could decide
to pursue the matter up to the
, Supreme Court, he remarked.
But personally don't think
we're warranted in undertaking
that kind of contest with the
President when there is nothing
in particular to be gained by it,
he said.
He ended his talk by assuring
the editors that the subcommittee
suppressed nothing pertinent to
the inquiry" He said there was no
foundation for rumors that the
subcommittee soft pedaled evil
dence that members of Congress
enjoyed free visits at Florida ho-
tells that got RFC loans. The SUBJ
committee. he explained, obtained
no evidence of that kind.
|. Besides taking up the nomina.
! ton OF Mr.. Symington this week
the full Banking Committee will
: hold public hearings on a half
dozen bills dealing with the fu.
ture Of RFC. Some of them pro.
pose that RFC be liquidated ano
others. such as Senator Full.
bright's, provide numerous re.
J forms. Former President Hoove,
and Jesse Jones, who was RFc
chairman for several years. are
scheduled witnesses.
u