Evening star., 1951-03-11
Missouri Collection Linked With RFC Lease
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also, that Mr.. Young introduced
Mr.. Finnegan to him.
The subcommittee brought out
that RFC spent S. million to re-
habilitate the nickel plant. Mr..
Jacobs said he had discussed the
leasing idea with Robert Hag-
gerty, a GSA official who formerly
worked for RFC.
Mr.. Haggerty's name came up
in testimony of witnesses who last
week linked him with Mr.. Jacobs
and Mr.. Young in a proposal by
Mr.. Jacobs for reorganization OF
the Lustron Corp, a big RFC
borrower.
In st. Louis last night Mr.. Fin
negan stated that my relations
with RFC were so remote and the
whole thing is so ridiculous that
it is not even funny" He ex-
planned, as Mr.. Jacobs did earlier
that he would have resigned his
Federal job If the nickel plant
lease had materialized.
Appointed by Roosevelt.
Mr.. Finnegan was appointed
Collector of Internal Revenue In
1943 by President Roosevelt to
succeed the late Robert E. Han
negan, former Democratic Ma
tional Chairman.
The high point OF subcommittee
questioning this week Is likely to
come Wednesday or Thursday
when RFC Director C. Edward
Rowe takes the stand. Senators
want to get to the bottom of
testimony by RFC Director Walter
L. Dunham, a Republican, that
Mr.. Rowe, Democrat, urged him
to resign and be the ,"goat" of
the agency's current troubles.
Donald S. Dawson, President
Truman's aide on personnel mat
ters, has ignored a written in
vitation to testify, Subcommittee
Chairman Fulbright disclosed yes
terday. He cancelled a speaking
engagement yesterday with the
American Society for Public Ad-
ministration. His subject was to
have been How Can the Right
Man Be Found and Developed to
Provide Essential Executives for
an Expanding Federal Govern
Society officials said Mr.. Daw-
son informed them President Tru-
man asked him to visit the Sum-
mer White House" at Key West.
Fla. Presidential Press Secretary
Joseph Short said at Key West
that Mr.. Dawson would arrive
there within a few days. Mrs.
Dawson told reporters last night
that her husband was still in
town but expected to go to Key
West.
COP Fights Truman Plan.
Mr.. Dawson, frequently men
toned in testimony at the sub
committees hearings, was invited
by the subcommittee In a letter
February 26 to testify at his con-
Senator Fulbright said.
The subcommittee chairman add
ed that no answer has been re-
celved.
Mr.. Jones wrote his letter to
Senator Fulbright suggesting abo-
lition of the RFC from Pasadena,
Calf. where he Is vacationing.
He said:
THE administration and the
Democratic Party would do well
to abolish the corporation be-
cause the revelations made by
your committee have shaken the
Of the country in the
administration. And there is no
lack of justif1able credit from pri-
vate sources"
The Chronicle also printed the
text Of the letter Mr.. Jones sent
Senator Fulbright last April 10.
It was in this letter that Mr.. Jones
said the RFC should "be given
a decent burial, lock, stock and
BARREL" He also commented at
length on RFC loans to Kaiser
Texmass Petroleum. Walt
nam Watch. and the Lustron
Corp. and said a thorough inves-
tigation of these loans "is clearly
Asked Further Comment.
Senator Fulbright had written
Mr.. Jones for further comment
on developments since the first
letter. In his reply, Mr.. Jones
made this comment regarding
letter from Congressman asking
consideration for loan applications
made by their constituents:
when I was with the corpora
ton we had many requests from
members of the Congress for ia
consideration Of loans and
1t is not an improper function for
a member to make such a request
for a constituent. but we always
reserved the right to determine
whether or not the loan should be
made.
1--WE had very few calls from the
White House, less than a half
dozen in a dozen years. and were
not able to make a single loan
requested from that source.