Evening star., 1952-02-20

ates were all men of character and
reputation. The important thing
was their ability to borrow more
than SO million dollars from the
Metropolitan Life Insurance Co.
We didn't borrow money from the
|RFC or from the Government"
The late Secretary of State Ed
ward R. Stettinius, jr., Fleet Ad-
miral William F. Halsey and Julius
C. Holmes, now minister at the
American Embassy in London,
were in the original group with Mr..
Casey.
Chicago u. Stockholder.
An early addition to" the stock
holders was the University of Chi
|cago, the subcommittee disclosed.
1t bought 1900 shares of stock for
$4,000. That represented Is per
cent of the original capital of
AOTC, of which Mr.. Casey held
20 per cent.
The subcommittee and MIR. Casey
did not give further details. In
Chicago last night, the university
treasurer, j. Parker Hall, ex-
planned the stock purchase was
undertaken as an investment of
endowment funds" The uni
verSity, he reaveled, sold its stock
for $500. 900 in the summer of 1850.
After the ships were bought by
AOTC, about 80 other persons or
institutions acquired shares of
stock, mostly as gifts, the subcom-
mittee was informed. Dudley was
given $50 shares for his early aid
in setting up the plan. Dudley
sold his stock eventually at profit
of more than $4,000 MIR. Casey
testified.
Another eight shares were listed
IN the name of Diana Hopkins.
Subcommittee officials identified
her as the daughter of the late
Harry Hopkins. Mr.. Casey told
how he gave several shares of
stock. not only to members of his
family and close friend but also
to hospital in his home town.
Clinton, Mass.
Admits He Was Novice
1nsistent questions by sub
committee members concerning
tax and corporate technicalities
brought from Mr.. Casey an ad-
mission that he was merely a
novice" on some of those points
He said he. could not explain ex-
actly why AOTC set up the Green
wich Marine Corp, with the same
officers and stockholders, for char
tering and Il sub-chartering five
tankerss to- 9 Panamanian sub
sidiary. S
He said he seriously doubted"
that the setup was devised to
avoid taxes. AOTC probably would
not have had,to pay any taxes in
any event, because it was entitled
70 an annual tax deduction of more
than $1.3 million for such things
as loan interest and tanker depre-
citation. he declared.
The subcommittee indicated it
would dig deeper today into a
$3.50, 900 profit it said Mr.. Casey
and two of his associates made
from an original investment of
$1,000. This involved the sale of
three Of the tankers in a trans
action in which Mr.. Wasson was
named as negotiator. The two
others who prof1ted with Mr..
Casey in that transaction were
Mr.. Holmes and E. Stanley Klein,
New York broker. They were the
original incorporators of AOTC in
1947.
The three tankers were bought
for $450.000 by the United Corp. :,
from the National Trading Corp.
which the Casey group in AOTC
organized. Nationalist Chinese
interests owned stock in United
through the China Trading and
Industrial Development Corp. The
subcommittee said the latter con-
cern gave $4,000 worth of its
United Corp. stock to the China
international Foundation, Inc.
the nonprofit philanthropic or
ganization headed by Mr.. Morris.