Agency: FBI
Originator: DEPT. OF JUSTICE
From: DOJ/CRIM
To: HQ
Document date: 03/21/1952
Document type: PAPER, TEXTUAL DOCUMENT

## Page 1

Released under the John F. Kennedy Assassination Records Collection Act of 1992 744 05C 2107 Note).

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JFK Assassination System

Date:

6/8/2015

Identification Form

Agency Information

AGENCY :

RECORD NUMBER :

FBI

124-90134-10017

RECORD SERIES:

HQ

AGENCY FILE NUMBER :

CR 62-92991-43X

Document Information

ORIGINATOR: DEPT. OF JUSTICE

FROM:

DOJ/CRIM

TO:

HQ

TITLE:

DATE: 03/21/1952

"PAGES:

12

SUBJECTS :

EDWARD PIERPONT MORGAN

[Restricted]

DOCUMENT TYPE: PAPER, TEXTUAL DOCUMENT

CLASSIFICATION: Confidential

RESTRICTIONS: Consulted

CURRENT STATUS : Withhold

DATE OF LAST REVIEW: 09/25/1998

OPENING CRITERIA: APPROVAL OF DOJ

COMMENTS:

MEMO, REFERRED TO DOJ

v9.1

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Released under the John I. Kennedy Assassination Records Collection Act. of 1992 (14 USC 2107

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Hate)r

STANDARD FORM NO. 64

Tolun

•Office Memorandum • UNITED STATES GOVI

ERNMEN

TO

FROMI

SUBJECT:

.: Director, Federal Bureau of Investigation

James M. McInerney, Assistant Attorney General

Criminal Division

Lois Paula Christensen

Bribery

DATE: March 21,

1952

JMM: JFC: cd

146-41-15-161

719144)

CONFIDENTIAL

Let 10770

Christensin

Reference is made to your memoranda of February 14, March 1, and

March 10, 1952, relative to the subject matter.

You state that in

November, 1951 the subject was arrested in Marin County, California

on a bad check, charge, and

subsequently made lengthy statements to the

County District. Attorneyconcerning her alleged association with the

Walter butler Corporation, and certain Government officials,

transarpus of which statements (attached to your nemorandun of February 1ir /

(1952) you advise were furnished to the Bureau by Senator Richard MYNixon

As you are aware, some of the activities involved in

Mrs. Christensen's statement to the Marin County, California officials

were the

subjects of investigation in 1950, the results of which were

incorporated in the reports of Agent Milton L. Snyder, made at Minneapolis,

Minnesota, on October 17 and November 8, 1950, and the report of Agent

Rosser L. Nalls, made at Washington, D.C. on October 19, 1950.

upon the information submitted at that time it was concluded that the

subject's described conduct was not in violation of any Federal. law, and

you were advised on November 29, 1950 that no further investigation of

the matter was desired at that time.

In view, however, of the present allegations

made by the subject

about officials of the Butler Corporation, as well as various Members of

Congress and Government officials, it is desired that further investigation

be made to determine whether there is evidence of the substantive, violation

or a conspiracy to violate,

any Federal law, particularly 18 U.S.C. 201,

202, 204, 205, 216, 218, 432 and 433.

In conducting the interviews involved in this requested investiga

tion, consideration should be given to the questionable reputation of the

subject for moral conduct, integrity, truth and veracity.

The depart

mental files reveal the following background information about the subjec

Lois Paula Christensen, nee Lois Paula Lauckner, was born in Aubur

Michigan, on September I2, 1919, the youngest of three children.

mother states that as a child the subject was headstrong, untruthful,

self-willed and bent upon having her own way.

The subject attended high

school in Saginaw, Michigan from 1934 until May, 1938 when she quit without

graduating.

Upon inquiry, an official of the high school,

by letter of

December l, I9lil, stateDEXED

Lois Lauckner:

RECORDED

502-92991-

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While she attended our high school, Lois was

considered very silly, boy crazy, and overly

mature physically.

She was dishonest and

unreliable.

Her excuses for absences were.

usually quite fantastic.

It was rumored

around the school that she indulged in liquor

and drugs so that we were not sorry when she

left school.

According to the Parole Report of Agent J.P. Gleason, dated

January 2, 1942, at New York City, the subject advised that during the

period February, 1938 to February, 1939, she carried on an affair with

a married attorney of Niagara Falls, New York.

In January, 1939

she was hospitalized in Saginaw, Michigan and received medical treatment

for complications resulting from an abortion.

In February, 1939

she married one Carl Bose in Indiana, whom she claims to have left

after three weeks, obtaining a divorce in September, 1939.

Upon interview,

subject stated that following her divorce in

1939, she renewed relations with the attorney in Niagara Falls and

became pregnant around December, 1939°

It appears from Lauckner's

statement that the attorney was fearful of his reputation, and that he

paid her $10,000 on condition that she would never see him again.

subject states that she accepted the $10,000 and went to Detroit, Michigang.

where she gave birth to a daughter in a private hospital on August 28,

1940, and thereafter arranged through the attending physician for the

child's adoption.

While in Dotroit, Michigan the subject states she met an attorney.

by the name of Vince."

She says that she moved to New York City in

September, 1940, and thereafter lived at an apartment hotel, during which

time "Vince" regularly gave her $150. per month.

Subject states that

she never had a steady job and never tried to obtain one during the time

she was in New York City.

She admits that during December, 1940 and

January, 1941, she was employed by Polly Adler, operator of a house of

prostitution in New York City, which employment has been verified by a cow

worker.

She also claims to have worked in New York during this period

as a model and night club entertainer, but according to her probation

report did not supply any verifiable information of legitimate employment.

During the spring of 1941 some of the employees at the apartment-

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:..

hotel where subject was living concluded that she was possibly a call

girl because of her drinking activities and the number of men who

visited her rooms:

She was described by some of the tenants in the

building as a girl who used foul language and who

was constantly endeavoring to interest men in her.

Investigation at a number of bars and grilles fre-

quented by Lauckner indicated that she was a general

nuisance, a terrible liar, and a thorough tramp.

She was

also described as being noisy and objectionable

after drinking and it appears from the number of

different stories which she told that she was

an invet-

erate and consummate liar.

It is reported that of this period "she tells fantastic

stories of being wined and dined in 'cafe society,' of meeting

an elite crowd that knew gay times.

According to her account, life

was a series of cocktail parties, penthouse gatherings, and men

waiting to serve her pleasure. ** In order to give herself notoriety,

she identified herself with the German sea-raider in the last war,

Count Von Lauckner, claiming to be his cousin.

(All connection

with the Count has

been disqualified by subject's sister who maintains

thatthis was but another of subject's lies in order to gain publicity.) "

Subject claimed that from "Vince" she learned sufficient legal

jargon to enable her to talk in a lawyer's vernacular.

various aliases during this period, and under the name of Carol Hille

began representing herself to be an attorney in the Lands Division of

the Department of Justice.

In June of 1941 subject was badly sunburned

while at the beach and upon returning to her apartment fell and injured

her hip. She was hospitalized at Mt. Sinai Hospital in New York for a

period of eight days.

Upon being presented a hospital bill of $160.69

she gave a bad check in payment and induced the hospital officials to

accept it upon the representation that she was an attorney in the Lands.

Division of the Department of Justice. Upon discharge from the hospital

subject went to Saratoga, New York, where she was arrested on August 21,

1941 for impersonating a Federal officer.

It is reported that from the

time of her arrest until the date of her trial on October 23, 1941, the

subject took advantage of the circumstances to obtain publicity for her-

self.

She was convicted in the Southern District of New York, on three

counts of impersonating a Federal officer and was sentenced by Judge Grover

Mo Moscowitz, on October 30, 1941, to be imprisoned for one year and a

day in the Federal Reformatory for Women, at Alderson, West Virginia, and

to be placed on probation thereafter for

a period of three years.

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The following comments are made in the pre-sentence probation

report submitted to Judge Moscowitz:

Defendant herself admits having indulged in promiscuous

sex activities, but claims to have been "discreet":

in her choice of "customers." Defendant also reluc

tantly admits that she drank heavily, but is inclined

to look upon this as part of her assets as a "glamor

girl.". Defendant is completely egocentric.

She

considers herself beautiful and "photogenic" and is

proud of her attempts to live "dangerously." Her present

offense she feels is unimportant except as it contri-

butes to her publicity as a desirable figure in so-

called "cafe society."

She appears to have no intention

of altering this sordid way of life unless authoritative

means are used.

****

She drank heavily, indulged

in promiscuous sex activities and committed this offense

with no thought of consequences to herself, to her family

and upon others whom she involved..

She appears to be

utterly conscienceless and completely without remorse.

Defendant is obviously not material for probation.

She is

in need of medical and social treatment in a controlled

environment.

Following conviction the United States Attorey submitted the

usual report on convicted prisoners in which he stated that he regarded

the subject as an habitual criminal and that neither he nor the Judge

considered parole advisable in the case.

Subject was admitted to the Federal Reformatory for Women at

Alderson, West Virginia, on November 13, 1941, and in her Admission Report

it is stated:

The subject gives the impression of one who has been

a problem to her family. since childhood; who has been

willful, and has deliberately lived a daring life.

She has projected her wilfull thinking into situations,

centric, independent, unscrupulous and an impressionist.

Subject

can unmask, can discard her mannerisms and

affectations, and be an unassuming, pleasant person.

She has warped ideas on social conditions and needs in-

sight regarding her conduct, morals, and standards.

This

sentence has come as a bitter experience yet the publicity

and notoriety has been but a part of the thrilling adventure;

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she fails to comprehend the seriousness of her

offense.

Until subject realizes the necessity

of working legitimately, can overcome her passion

for telling untruths, and the desire for decent

standards is aroused, it is felt that she will

continue being a social parasite.

on January 15, 1942 the subject made application for parole to

which she became eligible under the law on March I, 1942, and after a

hearing on February 4, 1942 by the Parole Board her application was

denied on March 6, 1942.

In a Progress Report to the Parole Board, dated January 31,

1942,

it is stated:

Subject has been a problem since admission. Her

many untruths and fantastic stories regarding herself

have made her very unpopular with the inmate groups.

Correction makes no impression and she profits little

by reprimand.

Her desire for attention, both from

girls as well as

the officers, makes her most annoying

at timese:

She is affable, has a sense of humor, and

can be pleasant when she drops her many affectations.

She has projected her wilful thinking into situations, and

has wished to identify herself with society and professional

circles for so long, that she is unable to shed this

cloak of imagery.

In a Special Progress Report dated May 21, 1942 it is stated:

She tells such big tales that some girl is always

calling her down and then there is an argument to

settle. No one in the dining room wishes to eat with

her because of the tall tales she tells of her past

experiences. She is courteous to the officers, but this

is merely on the surface.

She is not popular with the

group because of her concentrated efforts to make out

that she is so much better than anyone else.

5.

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In a Release Progress Report dated August 13, 1942 it is stated:

1o Custodial: Continued assignment in the Dairy until

July 19, 1942. Did not do satisfactory work and because

of her inefficiency was moved from one department to another,

but on every occasion it was still like trying to fit a

square peg into a round hole. She is capable of doing good

work, but is so enamored by her own estimated good looks and

pretty hands that her work is done in a neglectful and hap-

hazard way. When reprimanded always has her alibis fixed up,

which in her own opinion is sufficient to explain her failure.

In the cottage she is an unstable type, who cannot be depended

upon to perform any of her duties without the maximum amount

of supervision and direction.

She does not keep a neat

room and is usually untidy about her personal appearance.

She misquotes both officers and inmates, thus often causing

friction.

Cannot be depended upon for self direction, much

less to assume responsibility for others.

Warnings, repri-

mands and other forms of discipline slide right off her back

as easily as the proverbial "water off a duck's back.". She

typifies the ogomaniac.

2o Social:

*rox It is not believed that this sentence has

made much of an impression on subject. She does not like to

work and will hope to find some man to support her so that

it will not be necessary for her to work.

It is not expected

that she will ever make a satisfactory adjustment to society k

and that she will again be in difficulty with the law.

Training: --- Because of subject's difficult personality,

it was necessary to excuse her from the formal classes which

had been assigned.

4 Psychiatric: Patient is a psychopath utterly incapable

of handling her emotional reactions. Possesses no judgment

and her life will be one difficulty after another.

The subject became eligible under the law for conditional release,

from confinement on August 19, 1942, at which time she moved to her mother's

home in Grand Rapids, Michigan.

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Available information indicates that after her release

from prison in August, 1942, the subject lived at the home of her

parents until October, 1942, at which time she was employed as an

inspector and later as a tool designer by the Detroit Iool Engineering

Company, Detroit, Michigan', engaged in the performance of Goverment

contracts.

While so employed, it appears that she met RoyKehristensen,

an army engineer, assigned to work at the company; that the subject

married Christensen in 1944 and shortly thereafter accompanied him to

California where he was

assigned to Hamilton Field; California.

the war subject returned with her husband to Chicago, Illinois in 1946,

where Mr. Christensen was employed in the engineering department of the

Socony-Vacuum Company•

The allegations in the testimony of the subject given on November 30,

are summarized as follows In

formulating. your

rath cont

r investigation no

however, 1tis desired that recourse also

be had to the

testimony itself, and exhibit

and exhibits.

In April, 1950, because of her connections in Washing

ton, D.Co subject was made president of the National Manage

ment Corporation of Chicago, a holding company formed for

the purpose of procuring Government construction contracts,

and in June, 1950 she came to Washington for the purpose of

securing such contracts.

she heard that a clique of leading

Senátors in Congress, including Brien McMahon,- Scott Lucas,

Klara ELydings, =

together with Cordon

Dean, Chairman of

the Atomic

nergy commission, controlled

the construction of a proposed

the award of contracts fol 1215000 000, and that the entree

hydrogen bomb plant to cost?

to this clique

Morgan, member of the law

firm of Welch, Mott

of washington,

on, D.Co, whi

gating Committee.

She retained the firm of Welch, Mott

and Morgan as legal counsel, at an annual ree **$20,000,

In order to secure hydrogen bomb plant constraction contracts,

and Morgan told her in the presence of Dick Paxson and

Vincentwelchhispartner.that_contracts could be obtained

be return $200,000 to 8a 0,000 ts ten hey on the 1111."

her associate,

to lay before the officers of National Management Corporation

the matter of opening a Washington office, but the proposal

was turned down because of the prohibitive cost.

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She returned to Washington, D.l. in July, 1950,

and Morgan told her he was glad National Management

did not approve her plans as she could form her own

corporation and represent the Butler Corporation of

Minneapolis, Minnesota, headed by Robert Butler, the

Ambassador to Cuba, which company was interested in

securing atomic energy contracts.

Morgan told her

not to worry about financing as that could be arranged

through the Reconstruction Finance Corporation, which

arrangement was later confirmed to her by the Chairman

of the R.F.C., in the presence of' Morgan..

In Morgan's

office, in the presence of Dick Paxson, she then called

the Chicago firms affiliated with National Management,

and obtained their consent to forming her own corpora-

tion, such conversations being preserved on a tape re

corder.

Morgan and a former Bureau agent took her to

Senator lydings' office around August 6, 1950; the

Senator was told of her interest in getting contracts

for atomic enerer construction and said that he would

be happy to be of any assistance he could, and his

office made an appointment for her to see a Me milliams,

head of construction for the Atomic Energy Commission.

Around Aeust 14, 1250 Ed Morgan and Senator Brien

McMahon took subject to lunch at the Occidental Restau-

ranted Washington Do, where they discussed the

award of atomic energy construction contracts to the

Butter Corporation.

Senator McMahon stated he could

be helpful because he was on the Senate Atomic Energy

Committee and his former law partner, Gordon Dean, was

chairman of the Atomic Energy Commission, who he felt

would look favorably on the Butler Corporation.

The necessary papers were then prepared and

Christensen Corporation was organized under the laws

of Delaware on August 18, 1950.

Shortly thereafter

she telephoned the Butler Corporation in Minneapolis, but

Robert Butler was not in; thirty minutes later Robert

Butler called her from Cuba and said he would immediately

ee here reset even and one to a cineton tinees

That evening

of Butler Corporation, met her in the offices of welch, Mott

and Morgan, at which time Paxson, and Welch were also present.

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Morgan told "Andy" the Christensen Corporation could be

instrumental in getting Government contracts for Butler,

Corporation and indicated that because of his dealings

with Senators McMahon, Tydings and Connally, no diffi-

culty would be experienced.

That evening a further

conference was held between the same parties, attended

also by a Butler Corporation attorney from Virginia

near Washington, D.C., who was also a newspaper publisher

and bank president.

The Butler attorney remarked that

subject would have to make large campaign contributions

to the senators involved, and also discussed the fee to

be paid him. Shortly thereafter the subject went to

che Butler Corporation offices in Minneapolis and dis-

ussed the matter with Robert Butler, his son Walter

Butler, "Andy" (Longbothem)

and Hatriksen, treasurer of

the Butler Corporation, as a result of which a contract

was entered into between Christensen Corporation and

Butler Corporation under which Christensen was to act as

Washington representative for Butler in consideration

of 10% of Butler's net profits on Government contracts

procured, plus an additional 5% for expenses.

Robert

Butler told her,

"how you buy your groceries, I don't

care at all; that is your business, you are there to

represent me and to do ito"

no an, hot chi an an or a g

$20,000, payable to Welch, Mott and Morgan for legal

fees.

While she did not have sufficient funds on de-

posit

at that time to cover the draft,

the bank had been

advised that a $30,000 deposit was on its way, which

amount had been loaned to her by a friend.

The draft

was not put through for collection and she later cancelled it.

Around this same time she also entered into negotiations

for a lease of office space in the World Center Building,

Washington, DoCo, at an annual rental of $6, 600, for

which she gave a check but later recalled it when the proposed

deal fell through.

In the latter part of August 1950 she met Robert Butler

and Ed Morgan in her suite at the Mayflower Hotel,-at which

time Morgan informed her that she was to be the pay-off man.

The pay-off to Senators Connally, Tydings and Lucas was to

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be made by the Butler Corporation through Christensen

Corporation to Welch, Mott and Morgan, and the law firm

in turn was to issue

controlled by Morgan to the Senators.

This arrange"

ment was confirmed by Vincent Welch to Dick Paxson,

general manager of Christensen Corporation.

On August 3101950, subject

come part in

her suite at the Mayilaner Hatel, attenden by Senators

Brien McMahon and Tom Connally, together with paxson,

and others.

Around September 1, 1950 the subject met with Robert

Butler, Butler's secretary, Morgan and Mott in her suite

at the Mayflower Hotel for the purpose of confirming the

fee to be paid to the Christensen Corporation, at which

time Morgan said he had started the ball rolling and that

it would be just a matter of a couple of weeks until the

contracts could be signed.

Between September I and 11, 1950, Senator McMahon mailed

to subject a memorandum at her hotel

suite, in which he

summarized the procedure to be followed by Butler Corporation

in securing Government contracts on the hydrogen plant

project (included as an exhibit to the transcript. of subject's

testimony) .

On September 10 or 11, 1950, subject met Robert Butler

in his suite at the Mayflower Hotel for the purpose of securing

brochures to substantiate the construction responsibility of

Butler Corporation, at which time she gave him a memorandum,

dated September 11, 1950, setting out information to be supplied

to her by. Butler Corporation (included with the transcript of

subject's testimony as an exhibit).

Butler, his secretary;

GoA, Meyer, superintendent of Butler Corporation, and subject's

secretary, Deg Dew, were present.

Between September Il and 13, 1950, subject was told by

Morgan that it would be necessary for her to make campaign

contributions to the Senators involved, and she decided not

to go through with the transaction.

Paxson tried to persuade

!

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her to continue in the deal, but on September 13 she

telephoned the Butler office in Minneapolis that she

was withdrawing

The following day she received a

telegram from Butler Corporation stating that all

connections between it and Christensen Corporation

were severed.

Subject was later informed by Paxson

and Dee Dew that the deal was ultimately consummated

and the pay off made through the virginia attorney 1or

Butler Corporation, mentionea above.

She stated that

a newspaper reporter in Washington, told

Brin Me anon am there a va ta see sie senators

Symington, Robert Butler, and the law firm of Welch,

Mott and Morgan.

dicates that the allegations by

that R. G. Paxson,

of Butler Corporation, were led to believe the subject was the head

of a responsible engineering company and that they promptly severed

connections with her when, after a brief association, they found"

she was a "phony"; that she never met or had any transaction with !

any of the Members of Congress involved in her allegations; that

according to reports the subject was a "blackmailer" intent upon selling

her story to the Republican Party, press columnists, radio commentators,

or anyone else who would buy it.

and the intes at on tready conducted by the see te sapore,

the allegations in her statements to the officials of Marin County,

CaLifornia are

entitled to no credence unless

corroborative evidence.

made by the subjectin

into her accusations be made

The persons

In view of the previous investigation -

cooted the extend he senten mane in 417-24 ted, to.

subject's charges

It is suggested that the Members Of Congress involved

on behalf of her or the Christensen Company with any Government agency.

Where any corroboration of subject's charges appears, of course,

the

investigation of such phase should be pursued without limitation to its

logical conclusion.

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Although it is not requested at this time, the Bureau may,

It deened advisable, interview the subject at any stage of the

requested investigation.

-12-

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