Evening star., 1954-07-12
Carnegie Group Hits
Implications Left
By House Inquiry
BY shs Associated Pres.

BY the Associoied Press
NEW YORK, July 12.-The
Carnegie Corp. says witnesses in
a Congressional investigation
have attacked several tax-exempt
foundations through a shock
ing combination of innuendo
and implication"
In a statement sent to the
special House Committee to In !
vestigate Tax-Exempt Founda-
tions. Charles Dollard, corpora
ton president, said yesterday:
'"The question has been raised
in these hearings as to whether
foundations have supported pro-
American projects and. through
g shocking combination of in
nuendo and implication, the inn
preston has been left that per-
haps they have failed in this
respect"
He added: "As far as the Car
negie Corp. Is concerned, there
can be only one answer to such
a question. The corporation re-
CARDS its entire program as pro-
American =. It is the whole
purpose Of the corporation trust
ees and officers to work in behalf
of their country. to strengthen
it and to ensure its future.
No Chance to Testify.
An attorney for the multi-mil-
lion-dollar foundation also took
the committee to task for ending
the hearings before spokesmen
for the foundations had a chance
to testify, even though the foun-
dation critics were heard at
length land with full publicity"
Attorney John e. F. Wood con-
tinued, II doubt that any other
congressional inquiry ever fol-
lowed a procedure so alien to
American standards of justice
and so obviously unfair and
prejudicial to a group Of re-
spected persons and institutions.
The committee chairman, Rep
resentative B. Carroll Reece, Re-
publican, of Tennessee could not
be reached in Washington for
comment.
The foundations case was con-
tanned in a 32-page statement
and 19-page memorandum which
Mr.. Dollard asked the commit
tee to include in records Of the
hearing.
Mr.. Dollard defended the work
of foundations as valuable
asset to American education.
Public funds for education, he
said, are far greater than those
from private foundations. "Yet,"
he added, 'the private contribu-
tion is substantial and without
it the pattern of higher educa-
ton in this country would have
lost an element which has given
richness and diversity to the
whole system"
Started Before Tax System.
Mr.. Dollard denied that foun-
dations were used as a tax dodge
and added: Both the Rookie
feller and Carnegie Foundations
were set up at a time when there
were no Federal income or estate
taxes"
The corporation, endowed with
$135 million, is the largest of six
foundations established by the
late steel magnate, Andrew Car
negie, between 1896 and 1911.
The other five got endowments
totaling $53.1 million, and in
addition Mr.. Carnegie gave SLOT
million during his lifetime for
cultural and educational prof.
ectS.
Mr.. Dollard advised that gov
ernment avoid using tax exemp-
ton as wedge for controlling
the thinking of foundations or
other tax-free groups, such as
private schools. colleges or re-
ligious institutions.
The doctrine that tax exemp-
ton justif1es a political judg-
ment as to the soundness Of
ideas can be a very dangerous
two-edged weapon" he declared.
Indeed it can be the most de-
vastating weapon ever invented
for invading the private life of
this nation"