25,000-DOLLAR GRATUITY

Press, Volume CIII, Issue 30536, 3 September 1964, Page 17

25,000-DOLLAR GRATUITY

G.O.P. Senator’s Accusation

(N.Z. Press Association—Copyright)

WASHINGTON, September 2.

A Republican Senator said today that a former United States ambassador to Ireland, Mr Matthew McCloskey, made a 25,000 dollar “pay-off” to the 1960 Kennedy-Johnson campaign fund after getting the construction contract on a big stadium in Washington, D.C. Senator John J. Williams, of Delaware, said in the Senate that the political contribution was made through the former Senate aide Robert G. (Bobby) Baker, the key figure in a sensational Senate investigation.

Senator Williams said that the 25,000 dollars was part of a 35,000 dollars “pay-off,” The contribution was concealed in a cheque for a performance bond, said the Republican Senator.

Senator Williams, a prime mover in the Baker Investigation, said the additional 10,000 dollars went to a Maryland insurance agent, Mr D. B. Reynolds. Mr Reynolds, he said, acted as an intermediary in the “dispensation of the kickbacks.”

Senator Williams said he based his claims on statements given to him by Mr Reynolds.

Mr McCloskey was appointed by the late President Kennedy to the Irish ambassadorship after serving for many years as finance chairman of the Democratic Party. He is the wealthy head of a Philadelphia construction firm. Senator Williams told the Senate that the “pay-off” was set up w r hen Mr McCloskey, in paying Mr Reynolds for the performance bond, made out a cheque for 109.205 dollars instead of the 73,631 dollars owed. The odd figure was used to confuse auditors. Senator Williams demanded recently that a special committee reopen the Baker investigation to look into new charges. “Perhaps after today's report it can be more readily understood why someone in the high command ordered these hearings closed,” Senator Williams said. He said Mr McCloskey cir-

cumvented a law which prohibits political contributions in excess of 5000 dollars. He said the manoeuvre also enabled Mr McCloskey to charge the item off as a business expense, deductible for income tax purposes, and “in effect charge it. to the American taxpayers by adding this on as a cost item of a Government contract” for the District of Columbia stadium. Williams said the 35,000 dollars was in addition to “kick-backs” previously discussed at the Senate hearing by Mr Reynolds. Mr Reynolds testified that out of his commission of slightly more than 10,000 dollars he paid Baker 4000 dollars, and William McLeao, a former clerk of the House district committee, 1500 dollars for their help in getting him the insurance on the stadium contract. In his statement, Senator Williams asked President Johnson and the Senate leaders to join him in demanding a new investigation. “The Johnson Administration in Atlantic City last week said that it believes in integrity in Government,” he said. “Here is a chance to demonstrate whether they mean it.” Mr George Reedy, the President’s press secretary at the White House, said -that “we have no knowledge of it (the new charge) whatever.”