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About The Oregon statesman. (Salem, Or.) 1916-1980 | View Entire Issue (July 15, 1954)
DotiEt Cast tin StatagBga Seleg Or TSarav. July !3, Cac B-3 ine Probe nous Perjury Cases WASHINGTON Iffl - The Senate Banking Committee, . which sent to the Justice Department a transcript of what it said was con Jlictine secret testimony by two New Jersey builders, found Tues-N day mgnt the witnesses may not have been sworn. Committee counsel William Sim on, questioned by newsmen, con ceded that "you have no perjury case if the witness was not under oath." . , The witnesses, heard in secret session June 22, were Sidney Sar ner, of Tenafly, N. J., and Ralph J. Solow of Englewood, N. J.f?Fhey were partners in construction of the Linwood Park, Inc.; apartment project at Fort Lee, N. J., financed through an FHA insured ban. Sarner. appearing in public ses sion Monday, refused to answer, any questions, claiming protection of the Fifth Amendment against self incrimination. The transcript of the June 22 testimony released Tuesday night quoted Sarner as saying that FHA officials ordered them to construct a shopping and business center in connection with the project Solow was quoted as saying the housing agency bad not given such an order. But the question of whether or not the witnesses were sworn out weighed the apparent conflict of their testimony, so far as any pos sible action against them is con cerned. ' -. - The transcript of testimony handed to newsmen, by Sen. Cape hart . R Ind, committee chair man, failed to show that either witness had been sworn, and the official reporting firm which pre pared the transcripts said it is customary always . to show .the swearing of witnesses in the rec ord. ' ' On the other hand, Sen. Bennett (R Utah), who presided at both mlrning and afternoon sessions of the secret hearing, told newsmen - he was "99 per cent certain' that the witnesses took the customary oath to tell the whole truth. It would have been Bennett's Job to administer the oath. He said he remembered distinctly the only reason he attended the hear ing was to administer the oath. The ' Banking1. . Committee voted Monday to -send the secret testi mony to' the Justice Department for "any action" that, might be warranted. Capehart indicated' at' the time the Justice Department would be interested only in pos sible perjury prosecution. , Solon Asks 'Foreclosure' On Tin Mine WASHINGTON (B Rep. Gam ble (R-NY) proposed Tuesday the government, 'foreclose on the U. S. Tin Corporation's operations at Lone River, Alaska, and "get what money out of it we can." . "That would cost money, but It win cost more money if this fool ishness goes on." Gamble told the Senate-House Committee on De fense Production, of which be is a member. The joint committee has heard evidence that U. S. Tin obtained three million dollars in direct or insured loans from the government since 1951 while producing virtually no tin from its Alaskan mine, 90 miles north of Nome. Gamble's foreclosure suggestion came after a government auditor testified that Kenneth Kadow, while assistant to Democratic Secretary of the Interior Oscar Chapman, was hired secretly by U. S. Tin two months before the company ob tained its first government-guaranteed loan of 1375,000, In March, 1951. The committee, had heard previ ous' testimony that Kadow lobbied for government approval of the loan: .: Clifford Smith, auditor' for the General Services Administration (GSA) in San Francisco, told the committee he discovered Kadow's early connection with the company through a study of its records. He said he found in the proceed ings of U. S. Tin's board of direc tors the acceptance in December, 1950, of "an employment contract" with Kadow,' to be effective April 15. 1951. : Kadow was then responsible to the secretary of the interior for checking on all Alaskan develop ment affecting the Interior Depart ment. Kadow said in Juneau, Alaska, last week that any inference that he supported the TJ. S. Tin appli cation for a loan just to create a job for himself is "100 per cent false." There is no question about his supporting the loan in the interests of Alaskan development, he said, but it was prior to any idea on his part or of company officials that be would join the wporauon, Kator as oeen asked to testify at executive sessions of the joint committee beginning July 26. . COLLECTOR CONVICTED MANXATO, Minn. W WiEiam B. Shouts, 33, whose home and garage looked like a warehouse, was sentenced to 10 years in prison after pleading , guilty to second degree larceny. 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