Evening star., 1951-02-07
Attacks FuIbright in
Rejection of Demand
For Prompt Hearing
By Robert K. Welsh

TOR TTOmPr HeuFtn9
By Robert K. Welsh
Joseph E. Casey, former Massa-
chusetts member of the House,
now practicing law here. accused
a Senate Banking subcommittee
today of giving the public a
twisted account of his conduct
in connection with the Recon-
struction Finance Corp.
1--WE been virtuous, positively
sanity in this" he declared.
Factual references to him in a
subcommittee report about alleged
influence and favoritism in
RFC lending of Government
money were essentially true ex-
cept in one instance of sheer
hearsay." Mr.. Casey told The Star.
But the subcommittee-and not
he-deserves censure, he said, for
presenting the account in such g
way that the public might get
wholly unwarranted" impression,
that he benefited by friendship
for c. Edward Rowe, one of the
five RFC directors.
Attacks Fulbright.
Mr.. Casey, who served in the
House from 1885 through 1912
and was defeated for the Senate
in 1912 by Republican Senator
Lodge. also attacked Subcommit-
tee Chairman Fulbright, Demo-
crat, of Arkansas.
He related that Senator Full
bright, in telephone conversa-
ton earlier this week, assured him
the report did not intend to imply
that Mr.. Casey was influential
in getting the RFC post for Mr..
Rowe last August. The Sen
ator also assured him, he said,
that there was no implication he
had improper dealings in RFC
matters since Mr.. Rowe has been
on the Board of Directors.
But Senator Fulbright, he de-
.clared. rejected his demand for
an opportunity to be heard i'm
mediately by the subcommittee.
HE told me there would be
hearings in two or three weeks"
Mr.. Casey said. II told him I
wanted hearing while this thing
is hot. I don't want warmed
over biscuits weeks or perhaps
months from now"
"Smearing" at Issue.
The attorney contended the
real issue" is whether a citizen
and in this instance "a lawyer
who for years has specialized in
trying all sorts of cases for other
lawyers" should be subjected to
"smearing" and refused a quick
hearing.
Senator Fulbright was out of
the city today but the subcom-
mittee issued a statement which it
said Mr.. Casey had cleared" with
the Senator last night.
The statement noted that one
paragraph in the report described
Mr.. Casey as a close friend and
associate of Mr.. Rowe in Massa-
chusetts. The next paragraph
said Mr.. Casey collected fees from
the Washington law firm of Good
win. Rosenbaum, Meacham &
Bailen for presentation of loan
before the RFC.
Because. of the order in which
these two paragraphs were in
serted" the statement continued,
many newspapers had implied
that Mr.. Casey collected fees for
presenting loan applications after
his friend and former associate
in the practice of law became
an RFC director and as the result
of such appointment. This is in
correct"
The subcommittee announced
that it's investigation showed no
evidence that Mr.. Casey collected
such fees after Mr.. Rowe became
a board director last August.
The reports direct references
to Mr.. Casey were
''It has been reported to the
subcommittee that former Con-
gresham Joseph E. Casey was
instrumental in bringing about
Rowe's appointment.
Casey was associated in Wash
ington with the firm of Goodwin,
Rosenbaum. Maecham g. Bailen.
Though he was neither a member
nor an employe of the firm, he
was its key representative on RFC
matters and he shared to the cx-
tent of 20 per cent in She fees
which the firm collected for the
presentation of loan applications
Or the conduct of other business
with the RFC. -.
"The subcommittee has made
study of the circumstances sur
rounding the loans which RFC
made to Central Iron & Steel Co.
William E. Willett Can RFC di-
rector brought about a substitu-
ton of examiners in this case.
Loans were granted over the OBJ
lection of all examiners with a
single exception of the substitute
examiner. Hubert B. Steele.
Zone month after the second
loan was authorized, Steele left
the RFC and obtained employ
y,oort of S15 nm a yoor u,i+l,