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. ‘ _ 7 fa, Ss ease ate 7 S : , “) . . fi! ‘Off Memorandum - UNITED STATES GOVERNMENT &: A. Rosen ‘DATE: Septenber 3, 1946 FROM - Call 12:15 P.¥. tolso - th ; ew SUBJECT: BENJAMIN “BUGS ff celts i On September 3, 1946, Mr. Ostholthoff called the Bureau from the los Angeles Division to furnish the following information concerning the hearing held before the Civilian Production Administration at San Fran- cisco, California, pursuant to Bureau instructions. BZ Se NRE C TES RSTRNT After reviewing the transcript of the minutes taken at this hearing and 4% made available to hin by the CPA in San Francisco, Mr. Ostholthoff advised that the witnesses who testified therein were pot placed under oath ay the Commissioner }|eefore furnishing their testimony. However, itr. Ostholthoff atatea That beroére ( taxiTe any vesttmeny whe Commissioner informed all of the witnesses that it would | be a violation of law for them to make false stat t the hearing, but the also i their taking the witness stand that they did not have to testify to anythin; which might incriminate themselves. . ,Ageerding to the transcript of testimony Mr. Ostholthoff advised thet ; the foblowing three individuals testified on behalf of subject Siegel: b: c During this hearing Mr. Ostholthoff stated that the Government contended that the Casino and Restaurant, which are presently under construction at Las Vegas, Nevada, constitute one building project which is separate and apart from the_pro- posed hotel which is also now under construction consisting of approximate rooms. The Government has indicated no objection to the completion of the Gag and Restaurant since its construction was started prior to the stop order ig6 by the CPA on March 26, 1946, prohibiting al] new commercial buildings. At” the game time, however, the Government also contends thet since the construction of the Flamingo Hotel was sterted efter the issuance of the CPA stop order and is physi- | cally separated from the Casino and Restaurant. by a space of approximately 120 feet, | its fur ther construction must 7 stopped pursuant to the CPa stop order of Mareb 26, Ure oBEvitnort + further stated that subject Jems Le LAS Ss maintained that the Casino, Restaurant, and Hotel are all he she building project and were intended to be one building from the dgte SEP tHE ‘A6tiel planning. They contend, therefore, that since the construction of this project was instituted pricr to March 26, 1946, when the CPA issued its stop order on new commercial con- struction, they are at liberty to proceed with the building of the Casino, Restaurant and Hotel. At this time Mr. Ostholthoff advised that the Casino and Restaurant are COPIES DESTROYED \ co ; NOV wv br 1 >