BAKER PROBE COUNSEL, SENATOR CLASH

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP66B00403R000100380014-3
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 1
• Document Creation Date: December 16, 2016
• Document Release Date: November 26, 2004
• Sequence Number: 14
• Publication Date: December 3, 1964
• Content Type: NSPR

approximately. $36,-i
lia insu- c ?ce," he contin-I
Approved For Release 2005/04/21 : CIA-RDP66B00403Rc i 380014-3
e said, the first intimation)
Page:
s
illiams mad 1.?Je.i.as.-.a'enat wae
when W
speech about, it last September,
1/iILWAUKtE, W IS.
JQURNALb
E. 3160,845
S. 542,218
Journal Wire Services
Washington, D. C. - Senate
hearings in the Bobby Baker
case Thursday exploded into an
angry partisan wrangle when
the committee counsel accused
g ator John Williams (Rep.,
.) of telling "an unalterable
untruth."
Senator Curtis (Rep., Neb.)
heatedly complained that the
remarks by Counsel Lennox P.
McLendon were an "imperti-
nence" such as "I've never wit-
nd before in my years in
e Counsel, Senator Clash
Democratic Senator Pell of
Rhode Island jumped in to de?
fend McLendon against Curtis
"The man has a r i g h t to
speak," Pell said. Then he add-
ed, "Because he (Williams) i
The exchange started whet
Williams charged that he ha3
told McLendon he had addition
al information about govern
ment contracts handled by tli
McCloskey Construction Co,
but that McLendon had said hi
was not interested in pursuinj
volved Baker, the former sen-
ate Democratic secretary, and
other figures in the current
hearing.
CIA Contract Mentioned
YMMMYTs`aid he had suggest-
ed to McLendon, that the staff
look into McCloskey's contracts
for construction of the central
intelligence agency headquar-
ters in suburban Virginia.
"You are absolutely, unalter-
ably untrue in that statement,"
yelled McLendon, a white
the information unless it itlhaired 74 year old attorney.
Matthew, McCloskey, Philadelphia con-
ttacttr,? held his hands to his head as he
Prom page 1, column 6
"Just a m i n u t e," shouted
Curtis. "This is the first timer
an employe of the senate has!
called a senator a liar. He has
disqualified himself."
Williams interjected that he,
did, too, make such a state-
ment to McLendon last Friday. `
"I deny emphatically any!
word of it," McLendon said. j
"There is not an ounce, not an
element of truth in it."
"I've Got a Right"
Curtis continued to demand
that McLendon remove himself;
from his post as special coun-!
sel, a job he was named to by,
the committee's Democratic ma
jority.
"I've got a right," said Mc-
Lendon. "I'm not going to sit:
here and be publicly misrepre-
sented."
Pell sought to soothe the ruf
fled feelings by commentingi
that both Curtis and McLendon;
were honorable men.
Williams sat quietly through
the sharp exchange of con-i-i
ments. He later commented', -
that McLendon had a perfect,
right to state his understandingi
of the conversation.
However, he added, "I will;
never sit with the rules com-
mittee again without a tran-J
script of everything being taken t
down." E
Williams is not a member of
the committee but, has been sit-
ting in on the hearings. He fur-1
nished much of the information'
that triggered the Baker probe.
Misunderstanding Hinted
McLendon sat in silence as!
Williams then suggested that
there might have been a misun-
derstanding of some sort or that
McLendon, whom Williams
called "the major," had not
heard some of what Williams
had said in offering the evi-
dence at the closed door ses-
sion.
McLendon referred to the
flare-up later when a request
was made by Chairman Jordan
(Dem., N. C.) that all corre-
spondence between Williams
and the committee he made part
of -the record.
ties of forjr senate aide Bobby Baker
ores Fly ~t faker HBaring
B. Reynolds in testimony befol was in the 52% top corporate
the. rules committee. income tax bracket then in
However, McCloskey attribe force, the practical effect of
ed it to a "goof" by a membj the arrangement that Reyn-
of his staff, olds said was made would be
Reynolds had testified thi that the company got 52% of
the overpayment had been a the amount back through a
ranged with Baker as a col lowered tax liability.]
cealed contribution to the Den McCloskey, former ambassa-
ocratic campaign fund of 1961
dor to Ireland and one-time
11 those who, heard. me,
t Alize that what I said was not
voluntary," McLendon 'said. "I
regret it. But ?I 'could not, sit
here and be accused of dis-
honesty and not reply."
"I .have been aware," he
added, "that this , rivest.igation
is 1) g cond}icte4- gyp atm1os-
p'here of politic lconf+ t,, and
that is somq over which I
have no co
The subteco?q build-
ing ryas -the ?fi,st?public men-
tion of any other ggntract in
the wide r40r>4giairy into
the outside; Q';' o
of
Baker, ,
Calls Payme? it a `Goof'
n Ne Xp r1 Ti.m9s News Service
Matthew ,McCloskey, builder!
Of the2p rriillion dollar District
of rnbia stadium, has ac-
knor ed a $35,000 overpay-
ment ot'a performance bond
; eliiaiup} .to insitrance man Don
[The Associated Press retreasurer of the Democratic na
ported that Reynolds, in an,,.,,,,
record, said it was mentioned ,tuality his company had paid
in the dealings that federal
law limited an individual to
a $5,000 maximum political
contribution.
[He added that there was
mention that whatever Mc-
Closkey & Co. paid, for the
Stadium 'performance b o n d
would be "a legitimate busi-
ness expense"-meaning de-
ductible in figuring income
taxes, -
[Since 'a firm the sire of
McCloskey & Co..presulpaiy
"I h pee Senator ..Williams.
McCloskey declared, that Reyn
Olds was accepted as "broker!
of record" only for the perform-i
once bond part of the, insurance
package.. i
The general liability and oth-ii'
er forms of insurance w e r of
placed elsewhere through the
Hutchinson, Rivinus Co., which
normally handled his com-I
pang's insurance business, Mc-1
Closkey added.
The calculated premium on
premium twonce the performance bond, the wit-'
l'nolds and once to the right-i ness said, came to approxi-a
I
recipient.
/IcCioskey testified that, he
Ij known Baker for a number
(years and that Baker had
11 him he was associated in
C insurance business, w i t h
Iynolds. Baker said he would
ligrateful if McCloskey would
lithem write the insurance in
t e'ent the McCloskey firm)
xs :the successful bidder on
t. stadium, the witness. said.
subseq`uentiy, developed,
approximately. $36,-j
lIa matt c ce," he contin-I
Approved For Release 2005/04/21 : CIA-RDP66BOO403R000
mately $73,000, and that on the!
g e n e r a l liability to approxi-1
mately $36,000.
When Reynolds sent the com-1
pany an invoice for the com-
bined amount of slightly more
than $109,000, covering both
the bond and general liability
coverage, McCloskey said,
"somebody goofed" and let the
bill go through.
ued.
He said the first intimation'
,o# Ale double payment was{{
when Williams made, a senate
speech about it last September,
J