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_ 2. | MEMORANDUM FOR THE DIRECTOR: oa 7 August 26, 1946 him that I €id not believe that was the case, that in any court proceeding by analysing the facts presented by the Government and those presented by the defense you can obtain the reasons for a decision. then reverted back to the theory that the matter was highly tehonical. I n asked him why the stop order was sent to the builders of the Flamingo Hotel, and he said that was based on investigation oon- - ro 4 - aoe Pl tn hel ducted by the Compliance Division of the ¢.P.A. which had been furnished to the Washington headquarters of the C.P.A., who had issued the stop order. J asked him in view of the fact that this investigation had been conducted if they were not in a position at that time to present a case } before the commissioner which would wphold the contention of the Govern- 2c ment, and he stated that they were supposed to be in a position to do that but sometimes they were caught short on a stop order and they do not have enough evidence to present. He said that he felt that if the F.B.I. conducted an investigation of this matter at this time it would harm the investieeation of the C,P A T esbaead him how tt eeutd hae the op td eS wai wel sie Bh MBE CE A Oe Ce ee oe oA. investigation, and he said he did not kmow. I then advised him that I did n that our investigation would interfere with the C.P.A, case. WME oer 03 about swarms of agents out investigating this 7 matter ad been duplicating the C.P.A. investigation and said that the builders of the Flamingo Hotel would came up to the hearing with — high-price lawyers and technical experts. I asked him if the builders of the Flamingo Hotel were not already on notice that his organization was conducting an investigation, and he admitted that they had already appeared at the first hearing with hizgh-price lawyers and technical assistants. then proposed that we hold off our investigation until after the C.F.A. hearing September Sth. He said that if both the C.P.A. and the F.B.I, investigate this matter we might both fail, but that if C.P.A. alone investigates it the chance of C.P.A. failing is less. pe However, he stated that if the C.P.A. fails to make its case then they will turn the matter over to us. JI told him that he himself stated that we would be going over the same investigation, and I pointed out that if that is true that if the C.P.A. fails then the F.B.1. fails. He ade mitted that thia was true, The only thing nat Fe: reveal as to the future investigation of the C.P.A. was they plamed to take photographs of the work as it now stands on the Flamingo Hotel and to try te get tech- pr nical assistance. He said that they might not be able to get this tech- nical assistance and then he did not know what the results of their case might be. He said that they thought they might try to get additional plans used by the construction company.