Evening star., 1951-02-23
Truman Gets Hundreds of RFC Letters Involving Congessen
Continued From First Page.)

gone to the White House.
imagine they were for the Presi-
dents USE"
Mr. Smith then testified that
Mr.. Harber asked him about two
weeks ago to collect the letters
That was the first such request he
had ever received during his 10
years with the agency, he added.
Taken to Mr.. Dawson.
II took them to Donald Dawson
at the White House on two differ
ent occasions, once about week
and a half ago and again last
week. There were about 700 or
S00," Mr.. Smith testified.
"On whose instructions did you
take them there?" Chairman Full
bright demanded.
1T was my understanding in
the meeting in Mr.. Harber's office
that they were to be delivered tc
Mr.. Dawson" the witness replied.
Mr.. Smith said he received M
instructions to look for letters from
any specific member of Congress
or of the Senate subcommittee.
II hope you didn't miss any OF
mine" Senators Fulbright and
Douglas said. do you think you
got all of ours?"
Il think so. Senator" Mr.
Smith said.
Told by Some One in RFC.
When Mr.. Smith related that
Mr.. Dawson did not indicate how
the letters were to be lsed al
the White House, the subcommit-
tee called Mr.. Harber back to
the stand.
who at the White House re-
quested you send those letters??"
Senator Capehart. Republican, OF
Indiana, inquired.
Il don't recall" the RFC chair
man answered. "It wasn't some
body from the White House who
first told me. I believe it was
somebody in RFC."
WAS it William E. Willett (an-
other RFC director) ?" Senator
Fulbright asked.
II wouldn't want to say it. was
and I wouldn't want to say it
was not" Mr.. Harber answered.
Discussed With President.
It was at this point that Mr.
Harber. in response to persistent
questioning by Senator Capehart
disclosed that he had discussed
1t with the President on one occa-
sion and also with Mr.. Dawson
The President" Mr.. Harder
continued, did not tell me why
he wanted the letters. woulo
not want to say what though'
he wanted them for"
Other developments earlier TO-
day at the hearing included:
l.. E. Merl Young, former RFe
examiner whose wife is White
House stenographer. told th'
subcommittee he would ash
Democratic National Chairman
William M. Boyle. jr.. to testify
He said he wants Mr.. Boyle tt
substantiate his story that he wa
offered and rejected an $3.50 fet
to influence the RFC on a $1(
million loan to the Texmass Corp
in 1949
2. Edward P. Morgan, a former
FBI agent, testified that he in
vestigated Mr.. Young at the re-
quest of Ross Bohannon, former
attorney for the Texmass concern
Mr.. Bohannon testified earlier this
week that Mr.. Young demanded
an $4,000 fee to influence RFC
Mr.. Morgan testified he talked
to a friend of his in the White
House, whom he did not identify
The friend told him, he said, that
Mr.. Young was not related to
President Truman and had nc
entree to the White House"
The friend also advised him tc
"save your money" and have nc
dealings with Mr.. Young. Mr.
Morgan testified.
Earlier today the Subcom'
mittee brought out that $50
a-day press agent has beer
hired by the RFC directors to help
them in connection with the in
vestigation.
Mr.. Rarber told the subcom-
mittee that Eugene Kelly a for
mer newspaperman here, was en-
ployed last week and was. recon-
mended by James K. Vardaman
jr.. a member of the Federal Re
serve Board. =
The disclosures came aftel
Senator Fulbright had charged
that IAN attempt is being made
to embarrass me and to discredi
the work of this subcommittee.
He and Senator Douglas sait
RFC officials apparently planned
to launch a "counteroffensive" b!
trying to show that members o.
Congress sought to influence RFC
loans.
I'm order that there may be NJ
misunderstanding of where thi!
subcommittee stands" Senator
Fulbright declared, II now invite
the directors of the RFC to bring
before this subcommittee at th'
earliest possible time any cast
study which they consider throws
any light upon the question of i'm
LOST
RIIIEOIn. black red design. bet. II