Senator Asks
Powell Face
Legal Action .
WASHINGTON I Sen. Byrd
(D-Va) Tuesday called on the Jus
tice Department to start "immedi
ate legal proceedings against Clyde
L Powell." the former housing of
ficial whom he described as "the
key officiaT in current investiga
tions of excessive FHA-guaranteed
loans.
He asked the department also to
look into other programs of the
Federal Housing Administration,
using income tax returns if neces
sary, to "bring to justice any who
may be criminally liable" and to
seek recovery of excess profits
which he said could exceed 100
million dollars.
Powell himself could not be
reached for comment, but his at
torney. Daniel Maher, said be
would have no immediate comment
on Bvrd"s letter. Powell resigned
es assistant FHA commissioner for
rental housing. FHA said Tuesday
Its files show his separation as
"removal with prejudice."
There was no immediate reaction
from the Justice Department.
Byrd. addressing his letter to
Atty. Gen. Brownell. wrote as
chairman of the Joint Committee
on Reduction of Non-Essential Fed
eral Expenditures.
Powell appeared as a witness
last week before the Capehart com
mittee but refused to answer any
qustions, claiming his right
against self-incrimination under
the Fifth Amendment.
Byrd noted that In his letter and
said because of it Powell "is be
yond the power of a congressional
committee to compel him to testi
ty. and the Justice Department
ghould take action without delay."
Statesman. Salem, Orsw Thurs April 29, 1954 (Soc 1) 9
Prostitution
Said Linked to
Police Payoff
PORTLAND W Prostitution
was a half-million-dollar-a-year
business in Oregon until a recent
suppression campaign, Atty. Gen.
Robert Y. Thornton said here
Tuesday.
Thornton said he and other
officials started the drive that
crippled organized prostitution, but
be said it was not wiped out
completely.
"Every investigation of prosti
tution we've run has shown
Indication of police payoff."
Thornton told the Pacific North
west Bakers Conference.
"Not long ago I had occasion to
trace the ownership of a brothel
building. I found that while the
property was assessed at only
$850. it was sold for $16,000," he
added.
He described prostitution as
"a substantial business In every
state."
It hangs on. he said, because
th nnlir are Daid off. arid because
part of the public believes there
are fewer sex crimes wnere
restitution is tolerated.
Th truth is that Destitution does
nothing to reduce sex crimes, he
said. Statistics show that tnere
are fewer sex crimes in areas
without prostitution, Thornton said
Russ Create
fState Security
Committee'
MOSCOW iJP The Soviet Gov
ernment has created a new agency
in the security field, si tl the
in the security field. It is the
"Committee on State Security"
headed by Col. Gen. Ivan Alexan
drovich Serov, a police service
veteran.
The jurisdiction of the committee
was not announced Tuesday.
"State security" in Russia means
secret police, intelligence and
counter-intelligence?
Some diplomatic sources in Lon
don took the view that the com
mittee represents a new secret po
lice set-up, with Serov as the new
supreme man in secret police, and
the minister of internal affairs.
S. N. Kruglov, subordinate to
Serov.
Another view is that the com
mittee may turn out to be an or
ganization with only limited staff
for the purpose of coordinating in
telligence and police activity.
Nixon Tells
Governors of
U. S. Policies
WASHINGTON Vice Pres
ident Nixon sought Tuesday to re
assure Americans governors, dis
turbed over the possible political
dynamite lurking in talk about
sending U.S. troops to Indochina.
Nixon presided over a closed -door
meeting, arranged by Presi
dent Eisenhower, of the govern
ors of the At states and the ter
ritories of Guam, Alaska and the
Virgin Islands.
A news briefing afterward by
Frank Bane, conference secretary,
avoided details of the talks by
Nixon. Acting Secretary of State
Walter Bedell Smith and others.
Bane called It an "intimate, off
the record" meeting.
But it was learned that, in ques
tioning Nixon, some governors
voiced a fear that the Eisenhower
administration might be running
too far ahead of the voters on
foreign policy in a congressional
election year.
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