Evening star., 1951-04-04
Commerce Committee
Or Expenditures Unit
To Probe Ship Deals
By Robert K. Walsh

The course of the investigation
Of the Reconstruction Finance
Corp. was involved in a decision
to be made by a Senate subcom-
mittee today on what other group
should carry forward a probe of
surplus ship deals disclosed by
the subcommittee.
The Banking subcommittee
headed by Senator Fulbright.
Democrat, of Arkansas, arranged
a meeting for late today to select
either the Commerce Committee
or an Expenditures subcommittee
for the inquiry.
Broad Inquiry Likely.
Whichever committee gets the
nod seems likely to start a broad
investigation not only of ship sales
by the old Maritime Commission
but also of other matters brought
to light at the hearings on RFC.
Decisions on whether to call
Donald Dawson and Joseph E.
Casey also may come out of to-
days closed session of Senator
Fulbright's seven-member sub
committee.
MIR. Dawson, an aide to PreSi-
dent Truman. has not replied to
a subcommittee invitation last
February to testify about frequent
statements linking him to some
RFC directors and loan activities.
Fulbright Opposed Subpoena.
Senator Fulhright has opposed
issuing a subpoena for Mr.. Daw-
son but has said the Presidents
aide ought to appear voluntarily.
Several other members have indi-
Gated they would move for show
down today on the question of
bringing Mr.. Dawson before the
subcommittee.
Mr.. Casey, former Massachusetts,
Democratic member of the House,
recently challenged the subcom-
mittee's authority to question him
about a company that turned a
100000 investment into $2.8 mil
lion in profits by buying tankers
from the old Maritime Commission
in l947 and selling them last year.
The subcommittee has brought
out that Mr.. Casey had dealings
with RFC as an attorney, although
the ship company he headed had
no business with that agency. Som
members of the subcommittee sal
they will attempt today to have
him called back for further Ques-
tioning on aspects which they be
lieve are within the subcommittee S
Jurisdiction.
The full-scale investigation OF
the ship transactions should be
made by the Expenditures 1nves-
tigating subcommittee, in the
opinion of Senator Fulbright. That
subcommittee, headed by Senator
Hoey, Democrat, of North Caro-
lima, is the successor of the old
Truman committee and has un-
usually broad authority, he said.
Others Back. Commerce Unit.
The Commerce Committee,
headed by Senator johnson, Dem
ocrat, of Colorado. however, has
the backing of at least two mem
bers of Senator Fulbright's sub
committee.
Senator Magnuson. Democrat,
of Washington, chairman OF the
Commerce subcommittee on ner-
chant marine, proposed to Sen
ator johnson that his group was
the appropriate one to carry on
the investigation. He noted that
the subcommittee during the last
Congress launched a continuing
investigation" of tanker charter
and sales practices.
Senator Johnson told reporters
he believed the full Commerce
Committee should conduct the in
quiry if selected by the Fulbright
subcommittee.
Senator Mcfarland, who saw the
President with other congressional
leaders this morning. told report
ers that he expected to see the
Presidents plan get by the Senate.
He said he expected to bring up
this RFC measure before long.
Arrangement Made at Farley.
The unusual arrangement where
by the Fulbright subcommittee
will choose the Senate group to
investigate the ship deals was
made at a meeting of Senate
Majority Leader Mcfarland and
Senators johnson, Fulbright and
Hoey late yesterday.
It followed the close of hearings
by the Expenditures Committee on
President Truman's plan for re-
organization of RFC. Chairman
Mcclellan announced the commit
tee would meet tomorrow to rec
ommend approval or rejection of
the plan.
Unless rejected by at least 49
Senate votes the plan will go into
effect April 20. 1t would SUBJ
stitute a single administrator for
the present five member Board of
Directors.
The Expenditures Committee,
members predicted, probably will
uphold the plan by a narrow mar
gin. But even if the plan is disap-
proved by the committee it could
be called up in the Senate at any
time by Senator Capehart, Re-
publican. of Indiana, sponsor of a
rejection resolution.