Evening star., 1953-01-03

nator Mccarthy, Republican, of
,e Elections subcommittee re-
,rence with Senator Butler, Re-
epublican caucus yesterday.
-AP Photo.
Alvin Bentley" and whether the
81 900 obtained from Mrs. Bent
ley was to aid the Senator in his
alleged anti-Communist drive" :"
The subcommittee said another
question was why Senator Nc
Carthy gave Mr.. Bentley a five
year note for $4,000 when Mr..
Bentley was willing to donate
that amount, and did it have any
bearing with respect to the pay
ment of future income taXes?"
Special Account Mentioned.
The subcommittee said it be-
lieved that Senator Mccarthy
opened a special account in the
Riggs National Bank here as a de-
pository for funds received in his
anti Communist fight, and added
that the Wisconsin Republican de-
posted $20.732.97 there.
] Senator Mccarthy, in his state
ment, said that all contributions
Ito the Communist fight" were
deposited in this account and used
solely for such activities.
The subcommittee report said
however, that items identified
against this account included
1880 to the collector of internal
revenue, a $1,000 check to Ray
Kiermas. his administrative as
sistant, and two cash checks.
Brothers Transactions Detailed.
In connection with the discus
sion of whether Senator Nc
Carthy used close associates and
members of his family to conceal
income and dealings in the stock
and commodity markets, the sub
committee detailed some of the
market transactions of the Sen
ator's brother. William P. Nc
Carthy, of Chicago.
The report described William P.
Mccarthy as a truck driver who
resides in modest home in Chi
cago and said there is no evidence
that he had any experience in
the commodity market prior to
August q, 1948.
On or about that date, the sub
committee said, William P. Nc
Carthy opened an account with
the Daniel F. Rice & Co. by de-
posting $4,000. When inter-
viewed on June 10, 1852, by sub
committee investigator, the report
said, William P. Mccarthy de
clared that the $4,000 was re-
ceived by him from Senator
Mccarthy and represented the re-
payment of previous loans totaling
$1,000 which he had made to
Senator Mccarthy since 1927, and
SO. 900 representing a loan by the
Senator to him."
The subcommittee said William
P. Mccarthy began his market
operators on September %. 1948,
and the overall transactions for
the period ending December z,
1948, resulted in a profit of $2,-
967.5O.
1t added that the operations in
volved short selling, which it de-
scribed as "a most dangerous form
of speculation. in general INDUCED
in only by the most astute and
experienced operators" Since
William P. Mccarthy had had no
previous experience, the subcom-
mittee said the questions "arise as
Ito whom and what influenced
these trading operations.
Debt to Bank Noted.
In raising numerous other ques-
tions about these matters, the
subcommittee asked why Senator
Mccarthy advanced money to his
brother to speculate in the COM
modify market "at a time when
he was heavily indebted to the
Appleton State Bank (of Apple
ton, Wis., and the bank was con-
stantly calling on him for a re-
duction in the loan or an increase
in the collateral?"
It also asked. without answer
ling. whether Senator Mccarthy
was speculating in the commodity
market in the name Of his brother
and whether the Rice account was
Ia partnership account.
The subcommittee said an at
tempt was made on November II,
1852. to interview William p. Nc
Carthy at his home for an ex-.
Iplanation of "his unusual trans
actions. but he declined to be in
terviewed."
In other discussions of Senator
McCarthy's affairs. the subcom-
mittee questioned what it de-
Iscribed as "his acceptance of
$4,000 favor" from Russell M.
Arundel. Washington represent
ative Of the Pepsi-Cola Co.
The subcommittee said this oc-
Cured "at the very time he (Sen-
ator Mccarthy was attacking the
Government for its manner of
handling sugar controls" and
added that it makes it difficult to
determine whether Senator Nc
Carthy was working for the best
interest Of the Government, as he
saw it. or for Pepsi-Cola."
On Sugar Subcommittee.