Evening star., 1951-07-29
RFC
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ton, reliable sources disclosed yes
terday that Senator Williams, Re-
i publican, of Delaware. who last
I May brought one aspect Of the
RFC loan situation to the Senate's
attention, is prepared 10 let loose
with Stror ger and wider blasts.
Demands for an all-out investi-
CATION and possible action by the
Justice Department probably will
await the outcome of requests for
legislative probes.
/ Some Senators" have asked
the Senate Expenditures Commit
tee to investigate the loans to
the Lithofold company. Chairman
McClelland said yesterday.
He disclosed that the commit
tee staff is "alerted." He added,
however, that Il believe We must
first see what the grand jury in
ST. Louis does"
The immediate aim of Senator
Williams and others. it was eX-
planned, is to unearth further in
formation on what he described
last week as unusual interest
shown by Mr. Boyle. E. Merl
Young and former Internal Reve-
nue. Collector James P. Finnegan
IN the RFC loans to the St. LOUIS
company.
Capehart Plan Faces Defeat.
A demand earlier yesterday by
Republican Senator Capehart Of
Indiana for Senate subcommittee
questioning Of Mr.. Boyle and Mr,
Young was given little chance of
success. Senator Frear, Democrat,
Of Delaware, the subcommittee
only member to comment, sad
he saw no need for more hear
ings in view of the recent RFC
reorganization and special inves-
legations being made by RFC Ad-
ministrator w. Stuart Symington.
Subcommittee Chairman Full
bright has taken the position that
the subcommittee achieved the
goal of its hearings on influence
and favoritiSm" affecting RFC and
that re-opened hearings could
produce nothing more than cor
roborative cases"
The subcommittee final report,
expected to be issued late this
week. will contain no mention of
the st. Louis loans for which, &C
cording to the Post-Dispatch, Mr..
! Boyle, Mr.. Finnegan and Mr..
Young put pressure on RFC.
Majority Report Approved.
The majority report has been
approved. Republican Senators
Bricker Of Ohio. and Capehart.
plan to give out a dissenting re-
port because the majority did not
mention or criticize Donald S.
Dawson. an assistant to President
Truman.
Senator Williams. in his speech
last May, confined himself to crit
lcism of reported relationship
between Mr.. Finnegan and RFC
loans not only to the Lithofold
company but also to the then
owners of the st. Louis Browns.
American League baseball team.
At that time he did not mention
Mr. Boyle.
Mr.. Finnegan resigned as In
ternal Revenue Collector last
April. A federal grand jury is in
vestigating the conduct of his
office.
1t was recalled that Senators
Williams. Capehart, Bricker and
others last May urged the Full
bright subcommittee to investi-
gate charges by Senator Williams
against Mr.. Finnegan. The Della
ware Senator declared that Mr..
Finnegan, while Collector of In
ternal Revenue. received sub
Stantial" attorneys fees for rep
resenttng the Lithofold company
and the st. Louis Browns corpo-
ration in connection with the
Government loans.
Senator Williams also declared
that Justice Department officials
did not give "the full story" to a
grand jury at that time.
Pressure Tactics Charged.
Congressional sources also noted
yesterday that House Ways and
Means subcommittee staff workers
last spring began looking into the
st. Louis situation insofar as it
might relate to Internal Revenue
Office administration.
According tn tho ct Ionic poc+