Evening star. [volume] (Washington, D.C.) 1854-1972, 1958-06-19
ADAMS

ADAMS
Continued From First Page
counting Of the favors he re-
ceived in return.
Tax Action Uncertain
COMMITTEE sources indicated
mat Mr.. Goldfine might be
called some time next week.
sim undetermined was whether
the investigators would ask the
President to order the Bos-
tonian's income tax returns
made available for inspection to
see whether the cost Of thous-I
ands Of dollars in hotel bills
and gifts for Mr.. Adams we're
charged of as business ex-
penses.
The House investigators
remained unimpressed by the
White House announcement
that it considers no law or rule
was violated in q memorandum
supplied Mr.. Adams about a
Goldfine case before the Federal
Trade Commission. -
White House Press Secretary
James c. Hagerty released ell
statement yesterday regarding
q January 4, 1854 memorandum
received by Mr.. Adams. at his
request, on a Goldfine case be-
fore the FrC.
Complainant Revealed
It was sent by Edward r.
Howrey, then FTC chairman,
and revealed among other
things the name of the COM
plainant against Mr.. Goldfine,s
Mortified Mills, Inc. Mr.. Hag-
erty said Mr.. Howrey had in
formed the White House that
the name had been revealed
publicly before the memoran-
dun was prepared; hence there
was no violation Of any law or
rule regarding the confidential
nature Of the information.
House investigators insisted,
however, there was. They took
the position that disclosure by
the former FTC chairman Of
the complainants name was
bad enough, even If the COM
plainant. Einiger Mills, had
revealed its own identity
earlier. as the White House
contended.
What was much worse, ac-
cording to the House investiga-
tors, was another part Of the
memorandum indicating that
II Mortified Mills would give
adequate assurances that all
their labelling would be cor
rected "the case can be closed
on what we call a voluntary
cooperative basis"
Violations Charged
This, according to the inves-
tigators, was not only q viola
ton Of the FTC's own rules, but
also Of a number Of statutes.
Some of the statutes provide
penalties ranging up to $1,000
fine and a year in prison.
One reason why the investi-
gators are pointing to the APP
pearance OF Mr.. Goldfine is
that they consider many things
were left unexplained by Mr..
Adams both in a June II letter
he wrote to Chairman Harris
and in his testimony Tuesday
before the House subcommittee.
In his letter, Mr.. Adams said
that late in 1853 Mr.. Goldfine
gave him a letter he had re-
ceived from the FTC's wool
labelling division and asked
me what prompted It," In turn,
Mr.. Adams said he telephoned
Mr.. Howrey and asked If the
information could be made
available for Mr., Goldfine.
Chronology Of Events
To understand the develop
ments, according to the inves-
tigators. certain dates and ac-
tons must be kept in mind.
These included:
December 4, l953-The FTC's
Wool Division. which had re-
ceived complaints in the past
regarding Mr.. Goldfine's opera
tons, addressed a lengthy letter
to the textile manufacturer. !
The letter called attention to
complaints that some materials
from the Mortified mills had
been mislabeled. Among other
things, the letter asked the
names of all concerns buying
the material and demanded
that Mortified take steps to
correct what the ETC called
the miSlabeling.
Late in December, Mr.. Adams
telephoned Mr.. Howrey and.
according to his own letter.
sought TO find out what had
prompted the letter.
Memorandum Supplied