Evening star., 1951-02-26
|Tobey Demands
RFC Abolition
AS Trading Unit
Conflicting Testimony
On Political Dissension
Heard at Inquiry
By Robert K Walsh


Corp. was denounced as "politi-
cal trading bureau" and its aboli-
ton was demanded today by Sem
ator Tobey, Republican, of New
Hampshire, at Senate subcom-
mittee hearing.
Highly conflicting testimony
concerning political dissension at
the Dallas (Texas) branch of the
agency caused the New Hampshire
Senator to exclaim:
"RFC actions have been an
abortion and miscarriage of the
intent of the law that created it.
Listening to this sordid story, I
believe the agency should be abol-
ished. The individual taxpayer
will cry 'unclean' and order
thumbs down on RFC."
Earlier testimony had brought
in the names of E. Merl Young.
Democratic National Chairman
William M. Boyle, jr., and Donald
Dawson, an aide to President
Truman.
Ex-Personnel Manager Testifies.
John B. Skiles, who was per-
sonnel manager at the Dallas of
flee until he resigned month ago,
told the subcommittee that he
suggested Mr.. Young. now a
Washington insurance broker. as
a person who might possibly help
in getting a loan for the Texmass
Corp.
He made that suggestion, he
explained, to Ross Bohannon,
then an attorney for the COM
pany, at cocktail party in the
Office of a friend in Dallas in
January, 1949.
Mr.. Bohannon called him later
and asked him to have Mr. Boyle
help on the loan. Mr.. Skiles de-
clared he told Mr.. Bohannon that
Mr.. Boyle. as well as Mr.. Young.
would have to speak for himself.
Mr.. Skiles disclosed that Mr..
Dawson had recommended him
for the Dallas job in 1946. At that
time, Mr.. Dawson was still on ac-
tive duty in the Air Transport
Command here, Mr.. Skiles ex-
planned.
Had Been Superior Officer.
''Mr. Dawson would have been
a heel If he hadn't recommended
me because he had been my supe-
rior officer in ATC," the witness
said.
Mr.. Skiles denied. however. that
he ever had any dealings with Mr..
Dawson or Mr.. Young concerning
any RFC loan applications.
Another witness. B. M. Linds-
ley of Dallas, testified that Mr..
Skiles told him in 1949 that Mr..
Young not only had attempted to
get a large fee for handling the
Texmass matter, but that he also
had tried to make a IDEAL" that
would include a $7,000-a-year job
for Mr.. Young's brother.
Solution to Conflict Sought.
The subcommittee devoted to-
days session to an attempt to get
to the bottom of conflicting testi-
mony last week by Mr.. Young and
Mr.. Bohannon.
Mr.. Bohannon had testified that
Mr.. Young demanded an SIS, 900
fee to handle the application and
that the offer was rejected. Mr..
Young testified that the offer
came from Mr.. Bohannon and
that he turned it down.
Senator Tobey, who last week
declared that one of the two men
was committing perjury. listened
quietly to the testimony of Mr..
Skiles and Mr.. Lindsey today. but
finally interrupted with his de-
Inunciation of the entire RFC
setup.
He was particularly angered. he
said, by testimony of political
fight between Mr.. Skiles and L. B.
Glidden, then manager of the
Dallas Office.
The subcommittee closely ques-
toned Mr.. Skiles as we'll as Mr..
Young about a letter written by
Mr.. Skiles to Mr.. Young in Feb
ruary, 1949. One sentence stated:
"Joe and I have had some
lengthy discussions but have
gotten nowhere on the business Of
his coming to Washington"
Referred to Feminine Aide.
Both witnesses declared that
this was reference to a girl, Miss
Hannah 10 Paris. They ex-
planned that the Joe" and the
"his'' was a form of double talk
and really referred only to the
possibility that Miss Paris might
take job as secretary to Mr..
Young in Washington. The young
(See RFC, Page A-4.)