Evening star., 1951-02-11
More Relationships
OF {. MerI Young and
RFC Attract Probers
By Robert K. Welsh

By Robert K. Welsh
Additional CLOSE relationships"
between E. Merl Young and Re-
construction Finance Corporation
matters, the careers of his BROTH
ers, and "a beautiful white mink
or ermine coat" said to be worn
by his wife, attracted sharper no
tice of a Senate subcommittee
yesterday.
Awaiting the return tomorrow
of its chairman. Senator Ful-
bright, Democrat. of Arkansas, the
investigating subcommittee of the
Senate Banking Committee hoped
to begin public hearings late this
week. 1t had tentatively set Feb
ruary 19 for the start of hearings
on influence and favoritism' in
RFC money lending. -
Faces Frequently Mentioned.
Mr.. Young, most frequently
mentioned in the recent report as
having tried to exercise influence
on RFC, seems likely to be men
toned even more frequently from
now on.
Subcommittee officials have re-
ceived numerous tips" and other
information about him. They said
they previously had not heard
about the mink or ermine coat"
brought into the influence" pic
ture by Representative Sutton,
Democrat. of Tennessee.
Mr.. Sutton, long critic of RFC,
gave this version of the fur coat
In Congressional Record state
ment:
This morning Qast Thursday
q person came to see me and
asked that I endeavor to get the
Government to investigate what
he understood to be loan or a
prospective loan to some furrier
and that. according to his advice,
that Mrs. Merl Young, who is one
of the confidential secretaries in
the White House, was wearing a
beautiful white mink or ermine
coat that he understood was
part of Merl's fee for interceding
with RFC."
Mr.. Sutton did not identify the
informant or reveal any other
details. Subcommittee officials
said they were interested in the
story but did not know of any
pending or past RFC loan to any
furrier.
Could Not Be Reached.
Mr.. and Mrs. Young, who are
'Missourians and now live at ITO
Kennedy drive, Kenwood, Md, |
could not be reached for COM
ment. Mrs, Loretta Young, a /
stenographer in the Office of
Presidential Secretary Matthew j.
Connolly, first became a stenog-
rapher in the Office of the then
Senator Truman in 1910.
The subcommittee interest in |
the business career of Mr.. Young, |
who II years ago was a $1,000 |
assistant messenger with the Gen
eral Accounting Office, has ex-
tended also to his two brothers,
Herschel and Gene, it was learned |
yesterday. There was no official
indication, however, that they will
come formally within the subcom-
mittee's field of investigation
of administration and activities
of RFC.
According to Mr.. Sutton, Hers
chel Young opened an Office here
as ali industrial consultant."
Gene Young, Mr.. Sutton reported, |
came here from Dallas, Tex, and
has a Government job. The Ten
nessee Congressman said he un-
derstood that Gene Young was "in
some way connected with Rex
Jacobs for some seven months"
Mr.. Jacobs has been identified
in the subcommittee report as a
Detroit industrialist and president |
of the F. L. Jacobs Manufacturing
Co. The report said Merl Young, !
an RFC examiner from 1945 to
1948, later had a $4,000 job with
the Jacobs Co. at the same time
he was an $4,000 vice president !
of the Lustron Corp. Both COM
panies were RFC borrowers.
Mr.. Sutton stated that Merl
Young recently visited his Office
for an interview arranged by "a
White House confidant." Mr..
Young, he said, denied ever hav-
ing worked for Rex Jacobs.
Mr.. Sutton added that James
Windham, secretary and treas
urer of the Jacobs Co., told him
later that Mr.. Young had been
on the company's rolls.
It is regarded as certain that .
Mr.. Young will be called as wit s
ness at the forthcoming hearings. ,
He has not announced whether he :
will ask to be heard.
Joseph H. Rosenbaum, Wash
lngton attorney, also frequently
mentioned as having exerted in Il
f1uence on RFC directors or in be-
half of loan applicants, indicated
he will appear if requested.
He told The Star that he is
"having a thorough analysis"