1948-Continued July 2: J. C. Keys, of Hydro-Carbon Research in New York called long distance; call canceled. July 13 (12:30): Lunch with Mr. Gabrielson. He will get in town about 11:30 and phone us. July 15: Carthage Hydrocol letter seven-14 sent to Mr. Howard. August 9 (2:30 p. m.): Meeting in Mr. Hise's office; Mr. Keith, all Board members, Mr. Martney, and Mr. Willard. August 11: Mr. Keith phoned from New York wanting to have lunch with you Thursday. I told him you were not expected in. However, he wants to get down here to discuss with you the matter of his getting hold of Stanolin Co. He has done so and they are interested in exploring the matter further. I think he wants to get Stanolin people and you together. DI 9-1480. 1949 February 28: Mr. Gabrielson calling from New York our operator 1. March 2: Mr. Gabrielson phoned that he will be here next Wednesday March 9 for lunch with HJG. March 9 (12 noon): Lunch with Mr. Gabrielson; will arrive District of Columbia about 11:30 and will phone from station. March 10: Gabrielson. Neilson and Hagerty. March 11: Gabrielson (canceled). May 16: Mr. Gabrielson talked long distance to Mr. G. re $6,000,000 application approved April 25. June 6 (4 p. m.): Mr. Gabrielson (sent to Ronan). June 15: Mr. Gabrielson to meet with Mr. Ed Willard and his group. Wants Mr. G. to lunch with him. Lunch with Mr. Gabrielson. June 27: Mr. Gabrielson calling. June 30: (Attached on separate sheet of paper on date of June 30, 1949.) Mr. Gabrielson's suggestions: (1) That Carthage puts in its money 50-50 with RFC, (2) that the stockholders' agreement to complete the plant be eliminated. Mr. Dunham will agree to both of these. Mr. Willitt will also agree to both. Mr. Mulligan agrees to the first suggestion and will be very glad to consider No. 2. Mr. Hise same as Mr. Mulligan. June 30 (reading from diary): Gabrielson, Statler, EX 1000, extension-621, made appointments for him for Dunham 2: 30 today; Willett 3 p. m. today; Mulligan and Hise at 4 p. m. today. July 5: Mr. Gabrielson, Digby 8-1123. July 6: Call Mr. Gabrielson re Board action, Digby 8-1123. August 9: Mr. Tom McNamara with Drew Pearson called and talked to Mr. Gunderson re Carthage Hydrocol loans. Gabrielson will call this p. m. August 29: Carthage resolution went out Friday p. m. Northwest Airlines resolution went out August 18. November 1: Mr. Gabrielson phoned you for lunch (Mr. Gunderson out of town). November 9 (12:30 p. m.): Lunch with Guy Gabrielson, Mayflower lobby. November 23: Henrich re Carthage. November 25: Gabrielson, Hu 6600? January 9: Mr. Foote phoned re lunch. Will call him back when you return to office. Re chat with Gabrielson. January 27 (2:30 p. m.): Mr. Gabrielson HU 6600 canceled. Instead, lunch next Friday. February 3 (12:30 p. m.): Lunch with Mr. Gabrielson (Mrs. Shields). Check time and place later, HU 6600. Meet at 12:30 in Mayflower lobby. February 9: Mrs. Shields, secretary to Mr. Gabrielson, phoned saying Mr. Gabrielson asked her to thank Mr. G. for his letter regarding membership in the Met Club. He already belongs. March 1: Mr. Gabrielson phoned from New York. March 3 (12:30 p. m.): Lunch with Mr. Gabrielson and Mr. Frank Dawson at Mayflower. Suite 376. March 10 (12:30 p. m.): Mayflower, Mr. Gabrielson, Mr. Souther, and HJG: lunch. 1949 Continued April 5 (4:00 p. m.): Mr. Gabrielson and Mrs. Messervy, Republican National Committee Woman from South Carolina. (1) Carthage. (2) Mrs. Messervy. April 20 (12:30 p. m.): Lunch with Mr. Gabrielson. Call him and tell him Statler. HU 6600. April 28: Mr. Gabrielson in for a moment. See Jim Hood for sure re Carthage. May 1: Mr. Gabrielson phoned from New York this a. m. re this matter and if there is any further information wanted can reach him in New York. May 2: Mr. Gabrielson re Carthage; asked Jim Hoover to get necessary Board action today. Call him after Board action; HU 6600. May 17 (12:30 p. m.): Meet Mr. Gabrielson at his apartment (376 Mayflower) for lunch. May 22: Mr. Gabrielson phoned from New York (Digby 8-1123) re elimination of final sentence in resolution requiring stand-by agreement. Wants it eliminated. Think that was discussed with HJG recently. Jim Hoover 315 not in office today. Called Mr. G. back and promised to call him in the morning. May 23: Called Mr. Gabrielson back this a. m. after checking with Henrich and Hoover. (NOTE.-Seems Luce, Burton, Hoover, et al., can't come to an agreement.) I told Mr. G. we hoped to get it to the Board sometime this week for approval. 1950 June 6: Ned Foote phoned and says he started to work this a. m. with Great Lakes Carbon Corp., ST 6674. Mr. G. should talk with Mr. Gabrielson. June 20 (12:30 p.m.): Lunch with Mr. Gabrielson, room 376 Mayflower. HARVEY J. GUNDERSON DIARY-REFERENCES TO DEMOCRATIC NATIONAL COMMITTEE 1950 March 30: Miss Jean Carney phoned at Mr. Bill Boyle's request and made appointment for 3 p. m. Friday to see Mrs. Florence Lynch, National Committee Woman from Iowa. March 31 (3 p. m.): At request of Mr. Bill Boyle, Miss Jean Carney called and made appointment for you to see Mrs. Florence Lynch, National Committee Woman from Iowa re Pacific Paper-Board Co. June 26: Mr. Boyle, Democratic Committee, called; invited you to dinner at Statler on June 29. June 29 Statler. (6:30 p. m.): Mr. Boyle, cocktails and dinner, Pan American Room, Pursuant to your telephone call of yesterday, As this letter requested assistance in obtain- To the best of my recollection, Mr. Gabrielsor. called me twice on the phone during the first part of this year with respect to the needs of Carthage Hydrocol, Inc. for materials. Secretary of the Interior, Department of the Interior, Washington, D. C. DEAR Mr. SECRETARY: As you know, our synthetic fuel and chemicals plant at Brownsville, Tex., is in the operating shake-down period and satisfactory progress is being made. A problem has arisen, however, due to our inability to procure certain materials, the lack of which may jeopardize our placing the plant in continuous operation at an early date, and it the purpose of this letter to request your assistance in this connection. You will appreciate the fact that our plant is equipped with an unusually large number of tubular heat exchangers. Spare bundles were originally purchased for some of what were initially felt to be the most important exchanger services, but actual corrosion experience during the past few months, with the sea water used for cooling purposes, has dictated the necessity of retubing certain other exchangers vital to our operation. Consideration of our own experience and a survey of practices by other industries using salt water along the Gulf Coast has led to the conclusion that we must replace the Admiralty tubes in certain of our units with 70/30 Cupronickel tubes. We have been partly successful in procuring 70/30 Cupro-nickel tubes for some of these new requirements, but there are two lots of tubes which we have been unable to procure for immediate delivery and the best promised delivery of January may be too late. These urgent requirements of Cupronickel tubes are indicated as follows: The 5,200 %-inch tubes are required for the imminent retubing of two surface condensers serving the steam turbine drives of the main air compressors of the oxygen plant. These condensers are now equipped with Admiralty metal tubes which have proven unsuitable and which are now leaking in sufficient number to have already created delays to oxygen plant operation. The 1,285 4-inch tubes are required to fill out what we feel to be a necessary minimum stock for tube replacements in the 31 exchangers and coolers in the plant which are equipped with over 18,000 tubes and for which we have no spare bundles. We have made intensive efforts to secure these tubes from the various alloy tube manufacturers, but January delivery is the best promise we have been able to secure. Since we are greatly concerned that our inability to secure these tubes will delay our initial operations, we felt it necessary to request your assistance in securing a priority for these items. Further, since there will no doubt be other equipment items which may be urgently needed in the near future, may we request your consideration of a general priority for our project if this is in keeping with your policy. Your assistance in this connection will be most appreciated. Very truly yours, CARTHAGE HYDROCOL, INC. EXHIBIT No. 42 President. To All Republican Leaders: MARCH 27, 1951. On March 10, 1951, in a political address at Elgin, Ill., I discussed the shocking moral climate of the Truman administration as disclosed by the RFC and other investigations, and suggested that the situation warrants a revival of the blunt, harsh, political battlecry, “Turn the rascals out." I anticipated that the Democrats would try to smear me following that speech. Three days later, on March 13, Representative Wayne L. Hays, Democrat of Ohio, made the following statement on the floor of the House: "There has been a lot of talk and newspaper comment about the investigation of the Reconstruction Finance Corporation by another body. I have information that testimony was brought out in executive session by this committee of another body which would show that Mr. Guy Gabrielson, chairman of the Republican National Committee, and also president of the Carthage Hydrocol, Inc., secured a loan of $9 million on April 8, 1946, for his company, and subsequently on April 2, 1948, another loan of $3,500,000 and still a further loan on April 25, 1949, of $5 million. "It seems that Mr. Gabrielson, in addition to being chairman of the Republican National Committee, has been doing a little influencing at RFC, since this testi mony would tend to show that he charged his own company, the Carthage Hydrocol, $100,000 for his services in securing these loans for it. By way of explanation, I might say that Carthage Hydrocol is engaged in the manufacture of high-octane gasoline from natural gas, the most expensive way of getting highoctane gasoline, and certainly in 1946 there was no pressing need for this commodity. "Another interesting thing is that two members of this other body whom the House rules do not permit me to mention by name, were exerting pressure to get this loan for Mr. Gabrielson's company. Although the House rules may prohibit me from mentioning the names of these members of the other body, I will most certainly name them tonight at 10 o'clock over the Mutual network." Had this statement been made off the House floor, I would have brought suit promptly for slander. My only other recourse was to issue a statement to the press denouncing Representative Hays' statement as an "unmitigated lie" designed to divert attention "from the rascality rampant in Washington under the administration of the political party to which Mr. Hays is affiliated." Representative Hays did deliver a more cautionsly worded rehash of his statement over the radio that evening. The Senate Banking Subcommittee investigating the RFC, at the insistence of its Republican members, invited him to testify. On March 14, Chairman J. William Fulbright, Democrat, of Arkansas, addressed to Mr. Hays the following letter, and I invite your attention particularly to the second paragraph: "DEAR CONGRESSMAN HAYS: You are reported in the press to have stated on yesterday that you knew of two Senators who had brought influence to bear upon the RFC in connection with a substantial loan to the Carthage Hydrocol Co. From the report of your broadcast of last evening, the inference could be drawn that two members of the subcommitte may have been the members of the Senate to whom you referred earlier in the day. "As you probably know, the subcommittee held public hearings on this loan last summer. I did not think the loan was justified, on its merits, but the committee did not have any information that influence was brought to bear upon the RFC in connection with the granting of this loan. "The subcommittee on the RFC, of which I am chairman, is interested in obtaining any information which you may have concerning influence that was brought to bear upon the RFC in connection with the Carthage Hydrocol loan. As chairman of the subcommittee, I invite you to present such information as you may have to the subcommittee on the morning of Thursday, March 15, or Friday, March 16, at 10:30 a. m. if such hour is convenient to you. If these dates are not convenient, I shall be glad to try to set a time that meets your convenience. I trust that you can let me have your answer as soon as possible this afternoon in order that I may notify the other members of the committee. "With best wishes, I am "Sincerely yours, "J. W. FULBRIGHT." Mr. Hays declined to testify. His letter replying to the investigation follows: "DEAR SENATOR FULBRIGHT: I am in receipt of your letter of March 14, 1951, in relation to certain statements I made on the floor of the House of Representatives yesterday. "The truth or substantial truth of what I said can be easily verified by you or by any member of your subcommittee or your staff making an inquiry of the Reconstruction Finance Corporation. "Furthermore, any other pertinent information in relation to the loan that I discussed can be obtained particularly by a committee appointed by a branch of the Congress possessing investigatory powers. "With kind personal regards, I am "Very sincerely yours, "WAYNE L. HAYS, M. C." In his radio broadcast. Representative Hays mentioned the names of Republican Senators John W. Bricker, of Ohio, and Homer Capehart, of Indiana, members of the Fulbright subcommittee. However, he failed to carry out his promise to identify, on the radio, the two Senators he had accused in his floor speech of "exerting pressure to get this loan." I am advised that Mr. Hays told newspaper reporters "off the record" that Mr. Bricker and Mr. Capehart were the Senators he had in mind. Now I didn't know Mr. Bricker personally until after he came to the Senate in 1947, and the |