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Se Thi - The Direcior January £, 19S CHAKSLS AGAINET PIALCTOH Ai PbARING INOAZILY BORKLR" po. OT December 17, 1951 tes fo furnish you with facts from Bureau files concerning allegations nade agatnet you tn an article appearing tn the "Datlp Worker” of Decenber 17, 21061, in aocerdence with your notations “While I know aome of below is absolutely false, sone ore matters about whitch IJ never heard before. Better prepare meno of facte ae files reflect. aH.” BACKGROUND: In the December 17, 1951, tasue of the “Datly Eorker,” an East Ceast Communtet newspaper, an article appeared on page one captioned "How FBI Chief Covered Up For The Ohie Gano." hie article, by drt Shields, condemns you and your administration of the Bureau, with parttoular reference to aotivittes taking place during tie administratton of former President Warren @. Harding and forner Attorney Jeneral Harry Me. Daughertys » i ot wu ®. 0 cencerning these allegatione as re, lecter itu +o 3 SUT ea =atnan eet agt Ratam fn feren tt on é ° Gigi & GUse CELGD sh GTRG es on concern in, Zam be LiGaT Lone forth below are speci vic allegations mace In the arvici 1 1: That you stopped an tnuestigation of a $25,000,000 fraud against the Government of the United States, and allowed the evidenc to vanish from Bureau fileass In substantiation of this charge, the "Daily Worker" quote excerpte from the testinony of Haxel Le. Scatfe, former Agent of the Bureau of Investigation, given defore the Select Comnittce on Invest gatton of the Attorney General, United States Senate, who testi fted tien March 88, 1984. The excerpts queted by the "Dally Worker" were wun G8 followse delmirt, wyraete cleas. ine | “,.eeWhen we began to dtg into those (atrplane graft) a audits it was apparent that it was going to be blocked. nd the blocking conttinued...eAnd when we gotesseas far as I have detailec to you I was instructed to begin a bread investicationesse b/- + wh pot Be CORDED