Evening star., 1952-05-12
Lustron's Big RFC Debt Cited
WhenIt Bought Mccarthy Book
Item Listed for Tax After Years Lapse,
Senators Told; Benton Seeks Wider Scope

of Wisconsin. He apparently had
reference to charges that Mr.. Nc
Carthy campaigned for election
to the Senate in 1946 before re-
signing as a State judge.
Senator Benton also referred to
allegations that the court over
which Senator Mccarthy presided
had operated as a divorce MILL"
He also asked for a review of Fed
eral and State income taxes paid
by Senator Mccarthy.
$8,412 Loss on Book Reported
Senator Benton declared fur
ther that the Lustron Corp. took a
loss of $8,412 on the book 1t
bought from Senator Mccarthy.
John Moore, counsel for the
subcommittee. introduced records
to show Senator Mccarthy was a
member of powerful committees
in the Senate at the time he re-
|ceiyd $4,000 from LuStron for his
book. One Of these was an in
vestigating subcommittee of the
Committee on Expenditures in the
Executive Department.
A letter was introduced to show
the subcommittee was inquiring
into RFC loans to Lustron during
November of 1948.
The letter was signed by Will
liam P. Rogers, counsel for the
subcommittee, and directed to the
chief of the investigation section
of the RFC.
Also introduced was memoran-
dunn written by Walter L. Dun
ham, then a director of the RFC,
regarding a meeting in July of
1949, with Carl Strandlund, presi-
dent of Lustron, and other officials
Of the corporation.
Influence Intimated.
During the meeting" Mr.. Dun
ham wrote. "Mr. Strandlund in
timated that he had powerful sup
port within the administration
and in Congress. He said he
thought that the RFC, Congress
and the administration, had a
moral commitment to him to carry
on his obligation regardless of ex-
Ipenses until his complete success
had been established. I regard
this attitude as distinctly danger
GUS to promotional type of man,
which I believe Mr.. Strandlund
to be-"
Chairman Gillette read into the
record a letter which he received
from Senator Mccarthy this
morning. It expressed his deep
regret that the subcommittee was
forced to open its public hearings
without the presence of the star
witness" The Senator said that
the fact that this witness had
been Committed to an institution
for the criminally insane" in Ohio
should not deter the Senators from
Subpoenaing him. The Senator ex-
pressed the opinion that such tes-
timony would go well with that
offered by Mr.. Benton.
Senator Hennings, Democrat. of
Missouri. asked that the commit
tee counsel identify the witness
to whom Senator Mccarthy re-
ferred. Mr.. Moore replied that
Robert ByerS, Sr., a Columbus
home-builder, had been found to
be mentally unstable" as a re-
suit of a stroke he suffered in re-
cent months.
Mr.. Moore said he had in
Structed subcommittee agent in
Ohio to make a careful inveSti-
CATION of Mr.. Byers' condition be-
fore serving a subpoena on him.
He said the agent returned the
subpoena unserved when Mr.. By
ers appeared unable to testify.
Mccarthy Won't Testify.
Earlier Senator Mccarthy
told a reporter he would not &C
cept a subcommittee invitation
that he take the witness stand
during the hearings.
In testimony last fall, Senator
Benton said that if facts in the
housing article case develop as
they seem to promise this
case, alone, would warrant the
immediate expulsion of Senator
Mccarthy from the United States
Senate"
/ AS q result of Senator Benton's
Icharges, Senator Mccarthy has
flied q So million libel-slandel
suit against the Connecticut
democrat.