Evening star., 1951-02-27
Mrs. Young's $3.50 Fur Coat
Paid for by RFC Case Attorney,
Dealer 7 estifies at Senate Probe
Rosenbuum Also
Linked to Young
In Stock DeuI
By Robert K. Walsh

An $8,540 mink coat was de-
livered to E. Merl Young and paid
for by Joseph H. Rosenbaum,
Washington attorney who handled
the fur company's loan applica-
tion to the Reconstruction Fin
ance Corp, a Senate subcom-
mittee was told today.
This disclosure came from Louis
o. Wheeler, vice president of the
Gunther Jaeckel Co. of New York
City at the Senate Banking SUBJ
committee hearings on alleged in
fluence on RFC.
His testimony apparently con-
tradicted the story that Mr.
Young, a former RFC examiner
told the subcommittee last week
Mr.. Young had said that he
bought and paid for fur coat for
his wife, who is a White House
stenographer.
Mr.. Young. a $1,000 assistant
messenger at the General Ac-
counting Office 10 years ago. took
the stand with Mr.. Rosenbaum,
but was not Immediately ques-
toned about the fur coat incident.
Reference to Collateral
Mr.. Rosenbaum, who. with Mr.
Young, was frequently criticized in
the subcommittee February 2 re-
port dealing with influence and
. favoritism in RFC. volunteered a
partial explanation.
He said he took collateral from
M. Young for money Mr.. Young
had borrowed from him." The
questioning. however, temporarily
took another turn and Mr.. Rosen-
baum did not Immediately explain
whether he had lent money to Mr..
Young to buy the coat for Mrs.
Young. -..
The other line of questioning
brought an admission by Mr..
Young and Mr.. Rosenbaum that
the attorney enabled Mr.. Young
to buy at only 81 share 60 shares
of stock in an investment firm
they had formed. The company
had contracts with Western Elec-
trio and dealt with radio distribu-
ton.
Mr.. Rosenbaums admitted that
the same stock was selling for
$500 a share only a short time
later.
This prompted Subcommittee
Chairman Fulbright to declare
that the inquiry today has seer
tainly demonstrated that there is
a relationship between Mr.. Rosen-
baum and Mr.. Young and that
Mr.. Young must have done some
thing for you to get such very
succulent tidbits."
Young Gould Be of Help"
When Mr.. Rosenbaum protested
that there was nothing illegal in
the various transactions between
him and Mr.. Young, Senator Full
bright continued:
I'VE don't say there is. We are
not just fishing. We consider that
Mr.. Young has had influence in
connection with the RFC and at
one time was employed by two
concerns that were borrowers from
RFC.
''It looks very much as if Mr..
Young, who held himself out n
was held out by his friends as a
man of considerable influence in
Washington, could be of very much
help to you, Mr.. Rosenbaum.
Testimony about the fur coat
developed as soon as the sub
committee started today's open
session. For an hour previously,
however, the subcommittee met
in closed session with Mr.. Young
and Mr.. Rosenbaum. Senator Full
bright explained that the in
vestigators wanted to determine
whether the fur coat incident,
mentioned in testimony last week,
was pertinent to the question of
possible influence affecting RFC
loans.
Loan Never Disbursed.
Mr.. Wheeler testified at the
open session that his firm last
September received a telephone
call from Frank Rosenbaum,
brother of the attorney. He was
notified that Mr.. Young, a friend
of Joseph Rosenbaum would go
over to New York to get a coat.
Several days after Mr.. Young
visited New York and obtained the
mink coat. Frank Rosenbaum
again called the company and told
them to charge it to Joseph
Rosenbaum, Mr.. Wheeler testified.
Mr.. Rosenbaum, according to
Mr.. Wheeler, was an attorney for
(See RFC, Page A-6.)