Evening star. [volume] (Washington, D.C.) 1854-1972, 1962-08-16

also pointed out that IN an
opinion last December Mr..
Bagwell had recommended the
cancellation of the Estes allot-
mentS.
Then with regard to Mr..
Bagwell'S proposals. Senator
Mcclellan suggested that they
were "a legal subterfuge i
to justify all these things that
went on"
Denies "BailOut"
He said there could have been
. no doubt in Mr.. Bagwell's mind
before April II that the Estes
cotton deals were a scheme and
asked:
why are we trying to bail
him out?"
Il didn't regard it) as bail
ing out" said Mr.. Bagwell,
explaining that his proposals
dealt with other individuals.
But he acknowledged under
questioning that there was
a great similarity between the
Estes transactions and those
involving other cotton growers.
Senator Mcclellan said the
proposals. if adopted, would
have been persuasive on the
department to accord Estes the
same treatment"
Secretary Freeman rejected
the proposals and ordered the
cancellation of the cotton al
lotments for Estes and others.
This occurred last April II.
six days after Mr.. Bagwell had
submitted his report and had
discussed the matter with the
Secretary.
Proposals Outlined
One of the proposals would
have permitted cancellation Of
the cotton allotments without
penalties being assessed. The
other would have permitted re-
negotiation of the contracts
under which Estes and others
sold land to displaced farmers
holding cotton allotmentS.
After the Agriculture De-
partment ordered cancellation
of the allotments last Deem
Der % the order was suspended
after a January 6. 1862. meet
ing in Undersecretary of Agri-
cultures Charles Murphy'S Of
flee attended by Estes. his
attorney and Senator Var
borough and Representative
Rutherford, Texas Democrat.
The order was held up. Ag-
riculture Department officials
have explained. to give Estes
and others time to prove that
the cotton transactions were a
valid sale of land.
No deadline was fixed by the
department for submission of
such proof and the matter was
still pending when Mr.. Bagwell
wrote his memorandum giving
the Secretary background in
formation on the Estes case.
Senator Mundt took Mr..
Bagwell to task for failing to
report in the memorandum
about the December % meet
ing at which time the decision
was reached to cancel the al
lotmentS. He also said that
among other things Mr.. Bag
we'll made no mention that
Estes had been arrested.
A Hurried" Job
Il believe that was known to
all the world" Mr.. Bagwell
said. The general counsel said
it was "a hurried memoran-
dunn" requested by the Secre-
tary only the day before it was
submitted and for this reason
lit couldn't tell the whole
story"
The Senate subcommittee got
back into the Pecos operators
cotton deals and the delay in
the Agriculture Department in
handling the problem after a
furry yesterday when the
names of several members of
Congress and Vice President
Johnson were mentioned on
both sides of the Capitol as
having known Estes to some
extent.
Some Of the names were in
volved in the testimony of Will
liam E. Morris. a dismissed
Agriculture Department aide
who testified June 20 and 80
before a House subcommittee
headed by Representative Foun-
tain, Democrat of North Caro-
lima. The testimony was re-
released late yesterday.
Others were mentioned in Mr.
Bagwell's April IL memoran-
dun.
Mr.. Morris, in his testimony
said that Representative An
dersen, Republican of Mime
sofa, asked him not to disclose
voluntarily Mr.. Anderse MS
dealings with Estes.
The former Agriculture De-
4 partment aide related in detail
a trip he made with Mr.. Ander-
sen to Estes Pecos home during
which the Congressman solo
Estes some stock in a family
owned coal mine. The trip took
place less than a week before
the Pecos operator was arrested
last March 90 on fraud charges
Andersen Distressed