Evening star., 1952-02-01
GabrieIson Defends
His Deals With RfC
AsG. 0. P. Chairman

Cr1t1ciZeo Mr.. G0Df1elSOn ana Will
liam Boyle, resigned head Of the
Democratic National Committee,
for their dealings with the Recon-
struction Finance Corp.
The subcommittee, headed by
Senator Hoey of North Caroline !,
aimed its sharpest barbs at Mr..
Boyle for his activities on behalf
of the American Lithofold Corp.
Of st. Louis. The subcommittee
credited Mr.. Boyle with getting
RFC loans for Lthofold.
The subcommittee hit MIR.
Gabrielson for representing pri-
vate company before RFC even
though he received no salary from
the g. o. p.
Sharply Objects.
Today. Mr.. Gabrielson sharply
objected.
II disagree and shall continue
to disagree p he said, with those
who seem to feel that an honest
businessman should be foreclosed
from engaging in honest business
relationships with his Govern
ment while serving as an unpaid |
oficial of National Committee.
It is plainly impossible to conduct
any business today without rela-
tions with some branch of the
Government"
MIR. Gabrielson is president and
consel for the Carthage Hydrocoll
Co., which obtained $18.5 million |
in RFC loans to develop better
methods OF producing high octane
aviation gasoline. Mr.. Gabrielsonl
said that, "even q business novice
knows that the president of any
company with loan must confer
with his banker (RFC) on the
servicing Of the loan"
Mccarthy Attacks Action.
Another Republican, Senator
Mccarthy, of Wisconsin, also at
tackled the subcommittee report.
He told the Senate, there is no
evidence Of pressure being applied
on RFC by Gabrielson." He also
protested that it was inconsistent
for the subcommittee to find that /
Mr.. Boyle used his influence at
RFC-but did nothing morally
wrong. For these reasons, Nc
Carthy. a subcommittee member,
refused to sign the report.
The Democratic National Com
mittee said it would not comment
on the subcommittee report be-
cause the group criticized activi-
ties of the committee under Mr.. i
Boyle and he no longer was Demo-
cratic Chairman.
Mr.. Boyle was not Immediately
available for comment.
The Hoey subcommittee last falll
held extensive public hearings onl
RFC operations. Its printed report
published late yesterday devoted
nearly three pages to commentS3'
on Boyle and only four paragraphs
to Gabrielson. 4
subcommittee Report. Il
The subcommittee reported: /,
l. MIR. Boyle was responsibleG
for getting an RFC loan for, the |,
American Lithofold Corp. of st. II
Louis, made statements Hcalcu-
lated to deceive the public" and !.
in general failed to follow taeI
course of conduct which the pub
lie rightly expects"
2. Mr.. GabrielSon also was less
than frank in discussing his con-
facts with RFC and should not
have represented Carthage Hy-
drocol before the RFC after hel
became chairman of the Republi-
can National Committee"
The subcommittee emphasized
that neither MIR. Boyle nor Mr.
Gabrielson engaged in illegal or
immoral" activities. and the COM
plants against them were made
because Of their high political po-
sitions.
Quasi-PubIic Trust.
As for Mr.. Boyle, the commit
tee stated:
when all Of his actions as dis
closed by this Investigation are
considered, 1t is evident that Mr.
Boyle failed to follow that course
Of conduct which the public Fight
ly expects of the chairman or
other officials Of q major political
party. ,.-... .....
"Ofhcials of the major political
parties, whether paid or unpaid.
hold positions in the nature Of |
quasi-public trust and they must,
therefore, follow the same stand
ards of conduct which are de-
manded of public officials"
The subcommittee said there
was no Conclusive evidence" that
Mr.. Boyle exerted influence on
RFC.
Cites Circumstances.
However" it continued, "the
circumstances surrounding the
making of the loan, including dec
lination of the loan at all lower
levels In the RFC and the rever-
sal Of the RFC boards earlier |
action after Mr.. Boyle made an |
appointment for company officials
with RFC Chairman Harley Hise,
give rise to the reasonable assump-
ton that the loan would not have
been made but for the telephone
call from Mr.. Boyle to Mr.. Hise.
The subcommittee refused to |
'condone'' the private employ
ment of Turney Gratz by Mr..
Boyle at time when Mr.. GratzI
was an RFC employe and MIR.
Boyle was a party official. I'll
found no evidence of illegality inl
the business relationship but It'll
remarked that such relationships
give rise to a suspicion of i'm 4
propriety."
Comment on G. O. p. Chief.
Referring to Mr.. Gabrielson, the
committee said:
Although there Is no evidence
of improper influence by Mr..
Cn1a,.ialrox, Iva nnv1v, Aofiox1 xx,;kt l,ir