Evening star. [volume] (Washington, D.C.) 1854-1972, 1951-09-22
RFC.,
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business relations with the Re-
construction Finance Corp. as
president and counsel for Carthage
Hydrocol. Inc. Comment on the
Senate floor this afternoon makes
it obvious that misunderstanding
has developed"
Senator Williams said he was
certain that there has been nc
law violation but if the facts are
as they have been given to me, Mr.
Gabrielson is just as guilty OF
violating the code as Mr.. Boyle
has BEEN" Previously he had
called on the Democratic chair
man to quit and yesterday he
made a similar demand on Mr.
lGabrielson.
Thorough Study Promised.
Said Senator Ferguson, Repub-
llican, of Michigan:
IF the facts are as presented to
the Senate. Gabrielson should re-
sign"
Senator Millikin, Republican, OF
colorado, and chairman of the
conference Of all G. o. P. Senators,
promised the matter would be
thoroughly examined"
Climaxing disclosures that Presi-
Dental Secretary Matthew j. Con-
nelly accepted camera and prob
ably turkey from the American
Lithofold Corp. The Hoey SUBJ
committee decided to question Mr.
Gabrielson next week.
Senator Hoey announced the
subcommittee program is so full
and its investigative staff so busy
that Mr.. Gabrielson cannot be
heard until the schedule of wit
nesses permits.
But Mr.. Gabrielson will have
his chance to testify as soon as
possible next week. Meanwhile,
staff investigators will dig deeper
into the Carthage Hydrocol situa-
ton, the chairman added.
Because Of unusually heavy
work this week, the subcommittee
decided not to meet today, as It
did last Saturday. It will resume
open hearings on Monday to
question several former Internal
Revenue Bureau employees who
according to previous testimony
received payments from Lithofold.
Resignation Suggested.
Senator Nixon, Republican, OF
California who has carried on a
relentless drive to get to the bot
tom Of any role Mr.. Boyle might
have had in influencing RFC loans
to Lithofold, declared:
IF our staff investigators, and
the testimony of Mr.. Gabrielson
develops that Mr.. Gabrielson, after
becoming Republican national
chairman, took part in RFC mat
tiers. for one believe that Mr..
Gabrielson should resign as ma
tional chairman"
The speech of Senator Williams
drew praise from Republican Sem
ators, Dirksen of Illinois, Case
of South Dakota. Cain of Wash
ington, Schoeppel of Kansas and
Ferguson. Senator Dirksen de-
clared: I'VE cannot point the fin
ger of scorn and accusation at
somebody else unless our own
house is in order"
Senator Williams, who in recent
weeks provided much of the am
Imunition fired at Mr.. Boyle, told
the Senate he has evidence that
Mr.. Gabrielson is still represent
ling private company before
IRFC."
Former General Counsel.
Another subcommittee inquiry
earlier this year into influence
and favoritism affecting RFC
brought out that the Carthage
Hydrocol. Inc, got loans. 1t was
explained that the loans were OBJ
tanned long before Mr.. Gabrielson
became G. o. P. national chair
man.
Former RFC Director Harvey j.
Gunderson told the Hoey subcom-
mittee this week that Mr.. Gabriel
son. visited him early in 1850 in
connection with the company's
still outstanding debt of Sc mil
lion to RFC. Mr.. Gunderson indi-
Gated Mr.. Gabrielson's visit was
somewhat in the nature of a cour-
tesy or routine call to introduce
other company officials who dis
cusSed the status of the loan.
Senator williams, however, in
Dictated that Mr.. Gabrielson Wis
tied RFC in recent months in
behalf of the company to confer
about possible extension of the
loan repayment provisions.
That sudden turn in the Hoey
subcommittee hearings overshad-
owed testimony taken late yester-
day from James P. Finnegan,
former Internal Revenue collector
in st. Louis, and Cecil A. Green,
Lithofold's $10,000-a-year Wash
ington representative since No
vember, 1948.
Dramatic Scene.
Mr.. Green, who testified he once
operated a saloon in Kansas City
and later was an investigator for
the former law firm of Mr.. Boyle
here, figured in a dramatic scene.
After he had been on the stand
almost an hour and given answers
by the subcommittee as
conflicting, he was temporarily ex-
cused. Several Senators said he