Evening star. [volume] (Washington, D.C.) 1854-1972, 1951-07-26
Newspaper Charges
Bowie Used Pressure
To Force RFC Loan


ST. LOUIS, July 26.-The Post
Dispatch took issue today with the
statement of Democratic Leader
William M. Boyle, jr.. that he had
nothing to do with negotiations
for a $565,0o0 Reconstruction
Finance Corp. loan granted a st.
Louis firm on its fourth try.
The newspaper reported the
loan to the American Lithofold
Corp. was made only after the
chairman of the Democratic Ma
tional Committee and his friend.
former Internal Revenue Collector
James P. Finnegan. exerted influ-
ence on RFC directors.
Mr.. Boyle, a close friend of
President Truman, has acknowl-
edged that he once represented
the company but he maintained
it was "in legal matters not con-
nected with the company's appli-
cation for an RFC loan."
Says He Was Approached.
The Post-Dispatch followed up
its disclosure Of yesterday that
Mr.. Boyle and Mr.. Finnegan had
been on the st. Louis printing
firms payroll-Mr. Boyle for $500
a month and Mr.. Finnegan for
81. 000-with a written statement
from the head Of the RFC here
which said he had been APP
preached by Mr.. Finnegan about
the loan.
The printing Arm was turned
down three times by the st. Louis
RFC head. Charles G. Alexander,
and once by the RFC directors
before it was approved.
A Federal grand jury here now
is investigating Mr.. Finnegan's
official conduct as internal reve-
nue. collector. He resigned the
post after the investigation began.
Jury Due. to Call Five.
The Post-Dispatch said three of
the five RFC directors responded
to "Boyle's pressure" All five,
since removed, are expected to be
called before the grand jury.
The Post-Dispatch said Mr.
Alexander's statement was pre-
pared for his superiors in the RFC.
In the statement, Mr.. Alexander
reported that Mr.. Finnegan had
expressed interest in the loan to
American Lithofold because of his
friendship for its management.
Mr.. Alexander's statement said
he believed Mr.. Finnegan once
had told him he was a stakeholder
in the company and that on one
or more occasions the former in
ternal revenue collector accom-
panied the president of the loan
applicant to the RFC Office here
Frequent Conferences.
The Post-Dispatch's story today
set out that shortly before the
loan was granted there were fire.
quent conferences in st. Louis
Washington and Florida among
Mr.. Boyle, Mr.. Finnegan, r. J.
Blauner, former vice president OF
the company, and his Washington
Office "greeter" Cecil A. Green.
The Reconstruction Finance
Corp. granted the firm the loan
in 1949. but none of the money
was advanced until January 6,
1850. The loan was to have ma
tured January 6. 1858, RFC said,
but it was paid of in full last
August 30 after the printing COM
pany obtained private financing.
Quit Company i'm 1949.
In its story yesterday the Post
Dispatch reported Mr.. Boyle re-
ceived $4,000 from the company
the payments being made in
monthly installments beginning
shortly after the RFC loan was
granted.
In his statement. Mr.. Boyle said
nothing about fees. He said he
severed his relations with the
company, and with all his other
law clients, shortly after assuming
full time duties as executive vice