Evening star., 1953-12-18
Charity Fund Probers
To0fferC Control Plans
For New York Action
BY the Asseeiated Pres.

NEW YORK. Dec. Estate
probers of charity racketS-who
have heard revelations ranging
from phonies soliciting over the
telephone from behind closed
doors to fake nuns" begging in
public-plan to offer control
measures early in the 1854 legis-
lative session.
A Joint legislative investigat-
ing committee wound up four
days of public hearings here yes
terday. and plans to hold others
later in various parts of the
State.
State Senator Bernard Tomp-
kins, the committee chairman,
expressed hope that the dis
closures of racketeering and the
bonanzas reaped by collectors in
some charity drives would not
deter the public from giving
literally to honest and we'll
managed charity and welfare
groups.
Reduced Gifts Reported.
Mr.. TompkinS, a New York
Republican, took note of reports
from some reputable charities
that contributions had dropped
off since his committee launched
his probe. He said he hoped the
loss would be only temporary.
He also declared that reputable
and efficient charity organiza-
tionS would benefit in the long
run as unethical promoters were
driven out of the business and
the public became more wary.
Among yesterdays witnesses
on various frauds was Assistant
District Attorney Joseph P. Hoey
of Brooklyn, who told about
nuns" in rented habits who paid
a self styled bishop" $3.50 day
for religious certificates.
These certificates made it pos
sible for the women to beg in
the streets without interference
from the City Department of
Welfare. They took taxicabs
back to the bishops" place at
the end of the day to change
clothes-and take home their
collections.
Mr.. Hoey said the bishop"
and the nuns" finally were ar
rested and their cases are pend
ing before a grand jury.
High-Cost Drive Detailed.
The Gold Star Wives Service
Foundation of Chicago spon-
sored a drive which raised $2.5
million at cost of $2,122, 900,
said Edward V. Mergarde, vice
president and director of the
solicitation division of the Ma
tional Better Business Bureau
Senator Tompkins said Gay
ton Associates, Inc, of Chicago
was the largest promotional or
ganization in the United States
and that it had made millions
of dollars through promotional
campaigns for the Kids Day
Foundation, the Disabled Ameri-
can Veterans, Inc, of Cincin-
natl, and other organizations.
Senator Tompkins said Gayton
Associates retained major
part" of solicitation proceeds.
Control Suggestions Made.
The probers received many
control suggestions from public
officials and representatives of
charities and legitimate fund
raisers. Among them were:
Legislation requiring regiStra-
ton of all charity drives and
submission to a state agency
of financial reports, to which
the public would have access.
One essential part of these re-
ports would be how much of the
money collected finally was spent
on charitable or welfare work.
Also. State licensing and fin
gerprinting of professional fund
promoters, and a requirement
that solicitors wear large but
tons showing what percentage of
each donation would go to &C
tual charity.
Charity Fund PrOberS."
An official of the Disabled
American Veterans Service Foun-
dation said yesterday that use of
President Eisenhower'S name in
a fund-raislng drive was discon-
tinued before the White House
protested.
Millard w. Rice. the founda-
tion's executive secretary. said
testimony concerning DAV &C
tivities given Wednesday before
State legislative committee in
vestigating charity rackets was
distorted.
Witnesses testified that the.
organization used the names of
President Eisenhower, former
President Truman and promi-
nent army officers without au-
thorization and that only 18 per
cent of about $21 million it
raised in the last three years
went to aid veterans.
Commenting yesterday on the
use of President Eisenhowers
name. Mr.. Rice said literature in
connection with fund raising had