Evening star., 1951-09-18
MerI Young Is Slated
For Quiz Tomorrow
In LithofoId Probe
By Robert K. Welsh

amlnlng stores that Democratic
National Chairman William NJ.
Boyle, jr., influenced RFC loans
to a st. Louis company worked
today on a long list of questions
to ask a major and much-men-
toned witness-E. Merl Young.
Mr.. Young. a Missourian who
was a volunteer worker at Demo-
cratic national headquarters dur
ing the 1948 campaign and once
was an RFC examiner, has been
called to testify tomorrow. The
subcommittee. taking a breathing
spell today, expects also to queS-
ton former RFC Directors William
Z. Wlllett and Harvey Gunderson
tomorrow.
Mr.. Young figured frequently in
an inquiry by another Senate sub
committee this year. That group
described him as part of a pat
tern of influence and favoritism"
affecting RFC. 1t disclosed he held
JOBS with two big borrowers from
RFC. 1t brought out that he and
his wife, then a White House
stenographer. received an $4,000
mink coat paid for by Washing
ton attorney for a New York
furrier.
References to Boyle.
AS a spectator at yesterdays
hearing, Mr.. Young heard several
references to his fellow Missourian,
MI. Boyle. These were made
mainly by: Frank Prince. former
RFC official, who resigned at the
request of Administrator w.
Stuart Symington last May.
Mr.. Prince headed the agency's
loan operations Office during most
OF the loan proceedings with the
American Lithofold Corp. of st.
Louis. The concern got loans to-
falling $565 900 in 1949. Previous
ly the RFC Review Committee
and several subordinate officials
recommended that the RFC Board
of Directors reject the applica-
tions.
The subcommittee immediate
aim is to learn whether Mr.. Boyle
helped Lithofold get the loans.
MI. Boyle has denied he had
anything to do with them. He
will have an opportunity to give
his side of the story probably next
week.
The St. Louis Post-Dispatch re-
ported that Mr. Boyle got $4,000
from the company in 1949. Mr.
Boyle said he received $1,250 for
about two months of legal work
unrelated to the loans and before
he became a paid official of the
Democratic National Committee in
April, 1949.
Interested in Other Activities.
The trend Of questions and an
swers yesterday, however. indi-
Gated that the subcommittee is
interested in more than any asso-
citation Mr.. Boyle might have had
with Lithofold.
1t did not stop with Mr.. Prince
after drawing out an admission
that he accepted such varied gifts
as Sl00 camera. perfume. tur-
key. ham and baskets of fruit in
1949 and 1850 from R. j. Blauner,
q Lithofold Corp. officer
1t confronted him with his
former Office entries listing nu-
merous visits and calls by Cecil
A. Green. Washington representa-
tive of Lithofold. Those contacts,
MI. Prince conceded, were not
only in behalf of Lithofold, but in
connection with applications or
information requests from 20 or
80 other companies
When Mr.. Prince, answering
questions, replied that he saw
nothing wrong in accepting small
gifts, Senator Mccarthy, Repub-
lican, of Wisconsin tried to pin
down a definition of small" The
Senator asked the witness how
large a ham he thought an RFC
official might accept Mr.. Prince,
after hesitating finally said:
oh, I think Id stop at u
pounds"
Two of the companies named
were in Kansas City, where Mr.
Green as we'll as Mr.. Boyle for
merly lived, subcommittee men,
bers noted. They were the Nc
Pike Drug Co., which got a S700,-
600 loan. and the Vendo Corp,
the diary indicated. The Vendo
Corp. Mr.. Prince said, did not
seek a loan, but wanted informa-
ton on how to switch to war work
for the Government.
Used to Work for Boyle.
MI Prince told the subcommit-
tee that Mr.. Green informed an
other man in 1949 that he, MI.
Green, used to work for Bill.
Boyle" Mr.. Green, Mr.. Prince
related, made that remark to a
Mr.. Dry" president of the Dry
Lumber & Construction Co. of
Fair Mount. Ga.
Mr. Green visited Mr.. Princess
Office several times concerning a
loan application of the lumber
company. Mr Prince testified.
That concern got a $45 900 loan
in February, 1949, Subcommittee
Counsel Francis Flanagan re-
ported.
Describing Mr.. Green as Litho-
folds $10.000-a-year Washington.
representative since, November,
1948, Mr.. Prince said he assumed
this was Mr.. Green's sole source of
income in 1949 and 1850. He
supposed, he said, that Mr.. Green's
frequent calls at his Office in con-
nection with other applications
we're in the nature of favors to
friends.
On one occasion, according to