Evening star., 1952-01-08
Promoter Summoned
For Questioning on
Mckinney Stock Deal

S~u
Frank Cohen, industrial pro-
moter whose dealings with the
Government drew some severe
official criticism, was called for
questioning in Philadelphia today
about an old Empire Tractor Co.
stock deal that netted a quick,
big profit to Frank E. Mckinney,
now Democratic national chair
man.
Mr.. Cohen, former head of the
defunct tractor concern and its
parent, the Empire Ordnance Co.,
which was assailed in a never
published 1943 Securities and Ex-
change Commission report, was
subpoenaed December 10 by Bank
ruptcy Referee L. Leroy Deininger.
Court-appointed trustees Of the
tractor company planned to ask
him whether the 1947 stock trans
action resulted in the firms
bankruptcy in 1948.
$6S,000 for $1,000.
1t was disclosed last month that
Mr.. Mckinney. Frank M. McHale,
Democratic national committee
man from Indiana, and others
bought Empire Tractor stock late
In 1946 from Mr.. Cohen and sold
1t back to him a few months later.
Mr.. Mckinney and Mr.. McHale
said they each needed about $685.
600 on investments Of $1,000 in
common stock.
AS the Philadelphia hearings
were about to be resumed, Govern
ment agency records here showed
that Mr.. Cohen, despite criticism
by the wartime Truman Commit
tee and in the SEC report, con-
tinued to have major business
dealings with the Government as
recently as 1850. The SEC report
was never given out by the late
President Roosevelt. President
Truman said recently he saw no
reason for releasing it now.
Contract Cancelled for S4OO, 900,
Commodity Credit Corp. records
showed that the American De-
hydrating Co. of Cuba, organized
by Mr.. Cohen, got a Government
contract in May, 1943, to provide
up to 40 million pounds of de-
hydrated food a year for the
Army. The contract was Cancelled
In October, 1914. with a $400, 900
settlement for the company.
Marshall Diggs, a Washington
attorney who represented Mr..
Cohen in the contract negotia-
tionS, told reporters today that
MIR. McHale and several others
interested in the Empire Contract
Co. at that time seemed to have
an interest with Mr.. Cohen in
the American Dehydrating Co. He
said, however, that he understood
they were interested primarily in
concern known as American
Steel OF Cuba which, he added,
was owned by Empire Ordnance
people"
Cohen Expands Activities.
In 1916, according to General
Services Administration records.
Mr.. Cohen acquired control of the
Cairns Corp, Brooklyn concern
which in November, 1945, had
bought the old Grumman Aircraft
Go. plant at Port Washington.
Long Island. from the Reconstruc-
ton Finance Corp. 4
Records also disclosed that the
original sale by RFC was recon-
mended by John H. Claire, an
RFC examiner who later became
an official OF the Empire Tractor
Co.
GSA records do not show what
became of the Cairns Co., but
records of the Empire Tractor Co.
bankruptcy hearings in Philadel-
phia several years ago contain
testimony that the Cairns aircraft
building venture was Completely
unsuccessful"
Plant ForecIOsed.
A GSA spokesman explained to-
day that the Government fore
closed on the plant in October,
1850, after rejecting request by
Thomas A. Farrell, a Washington
attorney for the Cairns company,
to give the company a chance to
re-arrange its stock ownership.
The principal reason for fore
closure. the spokesman said, was
that the Defense Department
wanted the plant for the defense
program.
Mr.. Farrell, according to pre-
viouSly published records, is an
attorney for the trustees in bank
ruptcy for the Empire Tractor Co.
in an effort to collect a claim from
the Argentine government.
Referee Deininger said recently
in Philadelphia that Empire ,
Tractors physical assets have
been liquidated. but the bank f,
ruptcy case is not closed because ,
of several pending claims and
suits. Most of the creditors have !,
received about IS per cent of ,
their claims he ren0rtad |,