Evening star. [volume] (Washington, D.C.) 1854-1972, 1958-08-11
Influence Case Report
InconcIusive on Adams
ConlInued Prom FIrsl PaEe

Continued From First Page
Adams because we don't know
what the intent was"
Republican Representatives
Hess Of Ohio and Bates OF Mas
sachusetts maintained that the
hearings showed Mr.. Adams
did nothing deserving rebuke.
This Is not q clearing" Mr.
Hess said. This Is q finding
that Mr.. Adams had nothing
10 be cleared Of. ] venture 10
say Mr.. Adams never even saw
those letters from Raylaine.
They may have been sent along
by some secretary in his once.
This sort Of thing has been
going along for years. II Is
proper and the people Of the
United States expect service OF
this kind"
Mr.. Bates said he could not
see anything more routine"
than the way Mr.. Adams re-
layed the Raylaine letters.
Impact Is Seen
Democratic Representative
Hardy Of Virginia and Mr..
Hebert did not charge that Mr..
Adams influenced the boards
decision. But they agreed that
the sending Of Raylaine letters
along with requests for infor-
nation and for suggested re-
plies apparently had an i'm
pact" In getting board consid-
Grafton Of the company's APP
peal.
IF this is routine" said Mr..
Hardy. perhaps his routine
needs improvement. The
public can read the transcripts
of the subcommittee hearings to
Judge for themselves whether
the conduct disclosed conforms
either to their personal stand
ards or to the preachments
which have been voiced in high
Places
While Republicans and DEM
ocrats on the subcommittee
disputed whether the report
indicated Mr.. Adams, a very
happy" reaction came last
night from Bernard Goldfine
The Boston industrialist and
gift-giving friend of Mr.. Adams
was not involved in this case.
The Raylaine investigation was
a by-product Of hearings by the
House Legislative Oversight
Subcommittee relating to Mr.
Adams and Mr.. Goldfine.
The report speaks for itself, +"
Mr.. Goldf1ne commented to the
Associated Press in Boston. Il
am very happy. / have a lot
of respect for Gov. Adams and
] think he is a fine man."
Many questions and COM
ments by subcommittee men,
bers during the hearings bluntly
charged that Raylaine officials
generated" the letters in the
hope Of getting preferential
treatment and putting pressure
on the Army board. Some
letters were sent to Republican
Senators Bridges Of New Hamp-
shire and Ives of New York and
Representative Morrow of New
Hampshire. None Of those
members Of Congress was
criticized.
Testimony and documents
disclosed, moreover, that even
after the board voted unani-
mously last November to make
the refund, Raylaine officials
did not want to be kept waiting
too long for payment.
Leo Wolf, former company
president, wrote to Mr.. Adams
last January that ''if you would
again intercede upon our be-
half and request the Depart
ment Of the Army to accom-
plish prompt refund, it would
be extremely helpful"
The record showed that a
reply signed by Mr.. Adams ex-
planned that the board mad for
warded the award decision to
the Philadelphia Quartermas-
ter's ONCE for ''implementation
-. to insure prompt payment.
The subcommittee was told
that the refund was paid and
that $4,000 of it went to q
Philadelphia lawyer, Edwin j
McDermott, for his services to
the company. The remaining
$22.284 went to trustees for the
company that was liquidated in
1854.
The Hebert subcommittee
did not deal with the merits OF
the refund in the complicated
case that began when the COM
pany was penalized $49,7S4 in
1941 for late deliveries on It's
100000 contract to furnish
textiles to the Army.
First DiSalIOwed in 1912
The Raylaine appeal with a
request for a $25,462 refund
was denied by the General
Accounting Office in 1912. The
company's appeal was dock
eted again by the contracts APP
peal board in 1851 and finally
dismissed. In March. 1857, the
GAO rescinded its 1912 order
and indicated that the matter
could be appealed again to the
Army board.
The board heard a motion
for reinstatement in April,
1887. 1t agreed on June IL to
hear the case, and on Novem-
Der 81 decided on a $41,284
award. The actual payment
amounted to $40.382.
Roswell M. Austin, a former
member of the board and a
brother of the late Republican
Senator Warren Austin of YER
mont. was the first witness. He
1919 g.. (A..-S.,.1..A 1850,