Evening star., 1958-07-11

Robh, one Of his attorneys, |
after an earlier attempt to
serve it ended with the paper
on the floor just outside the
hearing room.
The circumstances surround
ing the arrival of the little
pink slip on the floor were in
dispute.
Put First in Pocket
Deputy United States Mar
shal John Sullivan sought to
serve the subpoena on Mr..
Goldf1ne by putting it in the
breast pocket of Mr.. Goldfine's
coat. Witnesses said some of
those accompanying Mr.. Gold
fine told him, Don't take it."
and Don't keep it,"
AS Mr.. Goldfine pushed.
through the crowd, the sub
poena fell to the floor. It was
picked up by two reporters.
Then Sergt. Ralph H. Penley
|of the Capitol Police took the
paper in charge and delivered 1
it later to Chairman Harris.
Mr. Goldhne- afterward de-
clared:
Il didn't throw it on the
floor, was coming through
the crowd and someone said
something about q subpoena.
! just kept on going. If they
had handed it to me -"
Lawyer says IT'S Accepted
Attorney Samuel P. Sears.
who was sitting with Mr.. |
Goldfine, said the induStrialist |
had accepted, the subpoena.
In his statement on the per-
tinency of the subcommittee's
questions, Mr.. Harris went into
a detailed explanation of the
purpose of the investigation
and the question that Mr..
Goldfine had refused to an
swer. This was a step to
meet strict requirements laid
down in Supreme Court de-
cisions that a witness must be
fully informed of the purpose
of questions.
The question that Mr.. Gold
fine initially refused to answer
involved a payment of $4,000
to him in 1947 by the Boston
Port Development Co., in which
he is the largest stockholder.
Mr.. Harris said that a report |
by Mr.. GOldfine's own auditor 1
said there were no vouchers
available to support the pay
ment. The report, the chair
man explained, had been supA
piled to the Securities and Ex-
change Commission in compli-
ance with an order of the Fed
eral Court in Boston in a suit
involving the company.
Mr.. Harris emphasized in his
statement that the subcommit-
tee is authorized to investigate
Federal regulatory agencies and
the way they have admins
tered laws under their juris-
diction.
Sees Extension Of Authority
He added that this authority
gives the subcommittee power
to inquire into the affairs of q
company subject to SEC reg
ulations.
The chairman pointed out
that Mr.. Goldfine had testified
that he had never been an Off
Ger or director Of the Boston
Port Development Co. and its
subsidiary. the East Boston Co.
"The line Of questions now to
be asked you," Mr.. Harris con-
tinued, will. If truthfully an
swered, show that. contrary to
your previous testimony. you
paid a great deal Of attention
to the affairs Of the two COM
panies; that you ran their
affairs in complete disregard
of anyone except yourself.
The SEC knew or should
have known of these facts, yet
did nothing about it," Mr..
Harris added.
3 Developments
The contempt threat devel-
oped abruptly late yesterday
after a day-long hearing mark
ed by these developments:
/. The House subcommittee
released a summary showing
that Mr.. Goldfine had paid a
total of $3.096.56 in hotel bills
for Mr.. Adams and his family .
since 1853. This was an in
crease of $1,000 over the
amount indicated in previous
testimony for bills run up by .
Mr.. Adams at BoSton's Shera-
ton-Plaza. two visits at New
York's Waldorf-Astoria and a
summer outing in 1857 at the