Evening star. [volume] (Washington, D.C.) 1854-1972, 1955-05-24
Contract Probe
Told Of 'Payoff'
Notes in Arabic
Clothing Maker Tells
Senators of Secret
Record on Deals
BY JAMES Y. NEWTON

A man who kept notes on the
transactions in Arabic told Sen
ate investigators today of alleged
payoffs to Government employees
aggregating $6,699.94 in connec-
ton with contracts for military
clothing.
Leon Levy, elderly New York
clothing manufacturer. said most
of the numerous alleged payoffs
were in cash and went to vari-
Gus employees in the armed serv-
ices procurement agencies, in
Guiding an Army major and an
Air Force captain.
Mr.. Levy, born in Lebanon,
testified before the Senate In
vestigations Subcommittee which
is holding hearings on charges
of alleged graft and corruption"
in procurement of clothing for
the armed forces.
The witness was treasurer of
Bonita Originals. New York
and Puerto Rico firm, which had
three contracts in 1852 and 1858
to make garrison caps for the
Armed Forces Textile Procure
ment Agency.
Kept Tab of Deals
Speaking with an accent, Mr..
Levy said he kept tab OF the
alleged payoff transactions in
his native Arabic so that his
notes would remain secret in
case they were lost.
The witness was suffering
from a heart condition and the
subcommittee allowed him to rest
several times during his testi-
mony.
Mr.. Levy said he turned over
nearly all of the alleged payeH
money to Marvin Rubin Of New
York, who got the contracts for
the Bonita firm and was to re-
ceive a third of the profits. Mr..
Rubin an earlier witness at the
hearing, denied making any
payoffS.
Mr.. Levy said the cash and
presents were given both to OBJ
tain the contracts and to obtain
approval of the products after
they were made. One sum went
for the transfer of an Army
clothing inspector who was not
working out to the satisfaction
of Mr.. Rubin.
Rubin Gifts Related
The cash and presents, Mr..
Levy said Mr.. Rubin told him.
went to a Capt. Wool. identi-
fed by a subcommittee aide as
Capt. Raymond Wool, formerly
with the Armed Forces procure
ment in New York and now sta
toned at Woodley Air Force
Base, Ohio: a "Mr. Farnell."
identified as Mai Eric Farnell,
now stationed with the Army
in Italy; Joseph Porreca, former
chief inspector at the Army
Quartermaster Depot in New
York and now in the feather
business: Mrs. Mella Hort. ad-
ministrator for Armed Services
Procurement of the Bonita con-
tracts and others.
Mr.. Levy identified Mr.. Por-
reca (also a previous witness)
as "the man who helped Mr..
Rubin remove an inspector if
he thought he was no good"
The witness called off num-
erous alleged payoffs in cash and
other gifts.
He said Mrs. Hort received
a coat for herself and one for
a child: Mr.. Porreca got home
freezer alnG- more than 500
worth of lingerie.
Checks Put in Evidence
Then there was a $500 check
introduced in evidence which
the witness said Mr.. Rubin told
him went to Mai. Farnell and
a "Mr, Pollock" identified as
David Pollack now with the
Army Quartermaster in Phila-
delphia.
There was another $50 which
Mr.. Levy said went to Maj Far
nell and $71.94 worth of whisky
which he said went to George
Earnshaw, described as a buyer
for the Army Quartermaster.
There followed a check for $50
which Mr.. Levy said Mr.. Rubin
told him was for Mrs. Hort and
another check for $496, on which
the witness said. Mr.. Rubin
failed to identify the recipient.
/ There were other payments
including a check for $l.750
which Mr.. Levy said Mr. Rubin
told him was split up in this
way: $500 to Mai Farnell,
$3.50 to Mrs. Hort and 500 to
Mr.. Pollack. This was the larg-
est of the transactions and the
check was dated May %, 1858.
Mr.. Levy said another check
of 5000 was to go to Capt. Wool
and added that his company
also paid a doctor bill for the
officer in the amount of $685..
The 5000. Mr.. Levy said, was
to go to Capt. Wool as down
payment on the subcontract to
make military raincoats which
the officer was supposed to get
for the Bonita company. 1t was
alleged that Capt. Wool was sup
posed to receive $500 total in
connection with that subcon-
tract, but the deal fell through.