Daily Worker Part 04

FBI Vault

Daily Worker

Daily Worker Part 04

77

4

Document text

e A  42 - UNIT] s GOVERNMENT
TO  , Director, FBI 1  M-rB= septamb 29, 1951{J ' g;i* gn.NIns§ectg;_L_&_Eg;ggn&;'§92 C°W_%1KT-»; . , aw ork gggrjlab __._
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FEDERAL BUREAU OF INVESTIGATION
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request.
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Documents originated with another Government agency ies!. These documents were referred
to that agency ies! for review and direct response to you.
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advised by the FBI as to the releasability of this information following our consultation
with the other agency ies!.
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For your information:
The following number is to be used for reference regarding these pages:
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9292
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f- .1The Jzreceor January 2, 19:2
L. H. Lodd
C&#39;E.&#39;§E;-FEE, ¢sonrr~.".s2" zr;~.1.c§"onAI Fin-=1iiI.NJ IH0&#39;DAI.ZY Bon,a&#39;us" -  ~ --
December 1?, 1951
 L5: _. 2..+5R£.6.n=rLoL,
£§.iB£2é£?= &#39;
To furnish you with foot: from lareau files eoncerning
allegations node agqlnet you in an article appearing in the
"Daily Iorker" of December 1?; 1951, in oooerdanoe with your
notation: "lnile I know some of below is absolutely false, some
are matters about which I never heard before. letter prepare memo
of facts as files reflect. 8-
§gC§Q§0QHD:
In the December 1?, 1951, issue of the "Daily Iorker," on
East Qeest Gonneniet nenepoper, on article appeared on page one
captioned "How FBI Chief Covered Up For The Ohio Gang." This article,
by Art Shields, oondenne you and your administration of the Bureau,
with particular reference to activities taking place during the
administration of former President Iorren 0. Hbrding and former
attorney General Harry H} Daugherty--
Let forth below are séeci is allegations mart in Tke ;ria,?
and the fhcta conoerning these allegations as r¬JleCt¬k in Jurcau
is o&#39;ao set oat below in_,"or=~.otion -:::.92n¢ern$n;;, files» Hero Mi£f7c;.
§§§EGATIQFs
That you stopped an investigation of a 825,000,000 fraudooainet the Government of the United States, and allowed the evideno
to vanish fro: Bureau files. ;
In saostantiotion of this charge, the "Daily iorier" ovate
szoerpte [rel the testinony of Hazel L. Boaife, former Agent of the
Bureau of Investigation, given before the Esleot Gonnittee on Inveai
potion of the Attorney General, United States Senate, who testified..... |.r..;-an 90 I091- FLA user-or-n-I-.e nun-nd hr thl "Dalila I&#39;lH"R&#39;Q1" UBPBrl u H G7] J-diet! .4-Irv I--&#39;1-evr-v&#39;92e --wvw --5 --- ----I _ V . w_- _.__, e
:$§*gp follows!
b6Ln&#39;.r __r___i fjir [ ..--[hen we began to dig into those  airplane graft!
audits it was apparent that it woe going to be blocked.
nd the blocking continued....And when we got...-as for as
I have detailed to you I was instructed to begin a brood
inuesti§otion..,. é/.-Qféaagi g
_   -L IHTQ.-§:>_§_&#39;E;&#39;6F!DED
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....I had already dug up cases with audits complete,
showing where the government had been defrauded to the amount
of ;2¢,0O0,000 at that tine. And I got instructions to go
ahead with the broad investigation."
Accsrdiag to this "Daily Yorker" article, Senator Jones
of Iaahington, a member of the Eeaate Cslaittee, then asked caife
who had given kin the abcve_referred to instructions.
Saaife is quoted Ge saying &#39;1 think it was Hr. Hoover."
lslatiee ts this pertieu ef 8eaife&#39;s testimony, as set
out in the Daily lurker, it is pointed out that Scaifs allegedly
was ordered to discontinue the iaesetigation sf the aircraft
industry and was instructed to gs on nits a 1g;gag&#39; investigation. r
.4: will be explained more jelly B91015 8eaife actually testified
that he nae ordered to go ahead with a &#39;brggQ" inoeetipationi
rergagnrram IE 53EAU FILES:
1 review of lureaa files reflsctsthct Saaife was appointed
by the than Attorney General, H. It Daugherty, as a Special Agent of
the Bureau of Investigation, Bepartnent of Jastice, en Botober 4,1921 and asst ned t% thi>iauestigatiou qf the aifcraft industry-||||&#39;lI|II||IliiIIII| 2- "?Q_
The files further reflect that during the course of this
investigation, Seaife, through the coopetatioo of the Air Qeroice
section of the Iar Bepcrtueut Eloise Hoard, had ascertained, as of
February 22, that certain aircraft sanufaetarsre had Dereharged
ou rnnent on In r I contracts to the auoant of appraxb the U8 G e
lately $25,000, ooo. ha !o"1¢__
Iauhere in the files reviewed at thie time ie there any
indication that you stepped this investigation-
fhie allegation is evidently based upon the above~quoted
portions of Seaifs&#39;s testimony before the Senate Ganaittee to the
effect that he, Bcaifs, was instructed to begin a_g;gg1 inveetigai
A review qf the qficial transcript of the hearinge conducted by
mm the Senate Committee reveals that Seaife, in responee to certain
wcagueetione asked by ueabere qf the Senate oamittee, testified as
::j~:fo11owe:
C 1Qgg__;_:____ -._ 1fT}- Eire Bcaife. &#39;-...iat Iiea as begin to dig up these and
jjjjit woe apparent it was going to be bloated. And this blocking con*mu»iinU£ds tot onlynthot, but after I got in just about as for aloe
Qfitus we are noa....
|-.: &#39;>
- 5 -

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Senator Jones of Iaehington. Flam, tell us the fqgzs
showing the obstruction, and so on, and what made it apparent,"
D Ire Scaife. Fnll right, air. then we got about juat as
{tr on I have detailed it to you I had instructions to begin B bread
ilveetigatton.
yr. Chamberlain. Yen investigation of that?"
- Ir» Soatfet "Of bread -- feed» I had theee things
coring in. I had already dag up ounce Uith andtte complete, ehoming
where the Government had been defrauded to the eaeuet of $25,000,000
- at that tine» And I got tnetraotteee to go ahead with the bread
investigation. I paid absolutely no attention to theee £n8tru¢i$lnq
t P" Senator Jone: of Iaehington. Flo pave you theee in|tru¢.
tone
ax? n 2+. Scaife. "I think it use Ir. loeoer of er. lurne&#39;e
I I! e
the General» "Were they in writing, those instructions?"
ii T q J?  :i1 i 4!? i l!:?=?;&#39; i Q !&#39;Q
were fall 0} it,
A review of other testimony by Soaife, reliivn to th¢
alleged &#39;blo¢k£ng of hie investigation efforte, revealed that m
was instructed by 1. I. lwere in Jhnuary 1922, who was at that g
a Special Asstetnnt to the Attorney General in charge of the Far
Frauds Bureau of the Leparilent of Jhetioe, to obtain audit: prp
pared by the Air Service through ojfioial channel: rather than bydealing directly with Air ervioe ee had been done prior to that

92w92~&#39;
MKl
these aeaoranaa and reports
Bureau files. lhile it was
"Bureau files indicated that
others, were turned oner to
U gs
G581
mad8 by Baaife,
 It Idyé
coananicated mi _
of this particular report.E
aade by caife could not be located in
not possible to determine definitely,
these reports and nemoranda, along with
Colonel Guy D. Gqf, then Assistant to the
1922 se in the prosecution in the
- s tm~  _ .
Relative ts the eneral Sarisg report if fsiruary 6, I922,
Iureau files reveal that under date of June 2, 1923,
than a Special Assistant ts the Attorney General,
th the Bureau and transmitted to the Bureau a copy
This letter qf transmittal, which was
addressed to Hr. J. B. Cunningham, states is part: "Is will assist
ou is doin all re can is tr is ts ed a ether e i I 9
original and if we do will
Indications in Barsaa_files are that the Dpartsent had
received this particular co fro Scat e eubse uent to his 8caife&#39;:s 0 fl es 9P
send then at ones ts you."a be»
PU Q s
resignation from the Bureau. }_ 1 &#39;
The Bureau eoidentally nade copies sf this particular regor"
&#39; as ef Jane, 1923. These co is re destroyed as being "oat datedon October 82, 194-6.   J!;
Concerning the specific allegation that Scaife resiined
"in disgust after finding his reports had vanished from the files,
there is no indication whatsoever that Scaife&#39;s reports were not in
Bureau files at the time he resigned. e review of his testimony
before the Senate onaittee reveals that he testified that besides
the February 6, 1922 report he had prepared other reports on the
aircraft industry under dates of February 2d_and February 28, 1922,
reporting what he called "obstructions" and which reports had been
forwarded to the Attorney General. Scaife further testified that on
er about larch 26, he ventpersonally to the Atterneg General, had
called his attention to his February 6, 84 and larch 18, 1922 reports
and according to the testimony, the Attorney General had told Baaife
that he had read those reports.
1415-§___
Nichols
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ill!-.9292".!"
~~ The article alleges that an FBI agent named Dave iershoe
~aj:&ho had found that gaa=ranning was being finance by Eduard Iohe
- 4 -

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and Abert Full erreeted tun gun-runners, but la: inediatelg ordered
to release then and to return tie Illpnl to then, eke qfieinl ee-
plaaatin being that the pane were to be need ta e Eezicen movie
_ productive. A further allegation te nude that the Bureau attemptedta frame Gerehon on e bribery °harge when it was learned that he woe
~ V,;e&#39;te_qgper bq{efe_a 6enete_inaeet¬pa¢£ng committee. ;
M1:
_ A anotlber, Gm»!JI_ Ilalive and hie tee lone, tegeiher-8il_ q! ere
e=- eel llllliilen, leer are P7991-§51lf3?F!e that they
*  pr-me end lmnattten were intended  the It pS.e$_lre-
5v-¥&#39;ae&r the Hnxican porter. After Che [knit bud I$fl"e»A _&#39; the {Inked State; Attorney in Lea lngdll end -the lteorney jeieral "
a t I hire his can &#39;and ti! PPQ grii,-lire QFGIPQ3 H in facing _, M  é ; _r11eaeed. ha; b?1L;? @;f&#39;@~?_f ._ =;f;fiif?mif¢;
&#39; the repariéqf the spa¢r¢1 s¢5¢¢& cw=a::e¢¢¢a»ii§é=ei§&%i3iL
" ef the Attarney General reflects that on Hhy 17, 193i, you testifiedbefore that Conmittee to the qfect that you had dictated the teleiam
ick erde:-ed it flltl of the 9888; it the rlquelt qf fke then
nirsetar, Iv. Burns, phi esgaee the t¢¥varuI», .,<.;~ ~  je H,
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Department if-Jillfitt nployee who taaftcd bcfarc than "mould
be fired by J, Edgar Hoover." The article indicated that a Ira.
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mma that In main panm1.uu¢r;.;;r ;q:¢q;nqa_¢=: _g;.1-4_s=gj&#39;a rife.
She also recalled typing letters for Smith pertaining to &#39;iuhf81&#39;ep"&#39;
permits, although aha was unable to rccall any specific details
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Senrtere as Robert H. La Iellette, 8?-, and Burton I. Healer, and
leaking fer eeaething to /rune then about becauee they were push tag
an investigation ef the Department of Juetioe.
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&#39; On larch I4, 1921, Gnatenv  "&#39;h=e¢i¬"¥§A%&#39;»i&#39;, I811.
Utty, appeared before the Senate Gnatttee investigating Harry H.
Daugherty, former literacy General Of the Fitted Shite. In his
-teettneay before that antttee, lune stated at egleeqapent to .
13.11.1912, he had been ;&#39;_eepeut	e_!er aring in effjee e,f_ Sepetor
Ieberi In Iuefellee, 89-, -gene rlugl,&#39;»~n1e.r._e itreeel  =&#39;
Er. line atth ill Ir. I. fl. Inderuegla _Ie nrer __feef_te4l tic? "A
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Your letter dated September 4, 1952, and the
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vSeptember ll, 1952
Piaaae be advised that the ccatcntc of yourcommunication are being nude a matter qf pcrauncnt record
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AC, New York October 8, 1952
Director, FBI __, _  _  3,I15! *~ . . l,
Lulu: WQRKER . to i. _ . .,;&#39; 92:,__,.&#39; --  .1, ._&#39;-ln ; srzcumrr MATTER - c fl  g_,O&#39;_92
Some specic information concerning the mach?-nics of
editing the Dailz Worker is desired in connection with some writing
_ being done at the Bureau. It is thought that your office might bein
possession of this lmowledge or would be able to secure it without any
difrultv I_._._-_.., .
v It would be helpful to know just how the Dell! Worker is
edited. What are tho mechanical steps taken inqethertng the rnateriel,
evaluating it, and running it through the different processes until the
final end is reached and the Dailz Worker appears on the street? Who
are the really important individuols determining the policy and prepara-
tion of the Dell! Worker at this time? Do you have any knowledge of
jealousy, envy, the clash oi pereomlitiea in the eteli of the Qeilv! worker?
Do you have any examples of the lack of independent thought and individual
iniative and creativenees prevailing among its staff members? Do you
have any other example: which touch upon matters of human interest or
personality items which vimald be interesting to the man in the street?
It is though: that Agents familiar with the activities oi theDa.ili&#39; Worker might be able to cite some instances from memo Further,
J
E2! -iii 3576/
In forwarding your reply to the Bureau, please mark
to the attention of the Central Reeearch Desk.
|//l» 41¢ 7.>.T/45!I-"LL---4 -I--=*=kq Q, RECORDED - 27 {]3 &#39;;7T| :9 1952
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D1:-ector, FBI 1 4478!
 "DAILY WORKER"
INTERNAL SECURITY -SAC New York November 14 1952
It in noted thlt the Bu:-can 1| in receipt of only one
lune of the "Daily Workur" for October 30 1952.
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Section 552 Section 552a
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Page s! withheld entirely at this location in the file. One or more of the following
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Sectign 552 Section 552a
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advised by the FBI as to the reieasability of this information following our consultation
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92»92
5.Q-.5 J I
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Oi  - UNITED ststss GOVERNMENT
TO Mr. A. H. Bel n oars; January 11, 1953
mom = Mr. J. E. Dunn /&~n d FIFE? _ iT!ngsumscn THE DAILY WORKER 1h:_ -. e Eht_ ,
INTERNAL sscozirr-c "&#39; i iiseserri/64°
.;~<_ . &#39; :._ -e --" """ _ {""&#39;f_ _n___M ;__&#39;  8 ZBees ;n=w~ ~ "
At 4-4-&#39;5 PM tvdey Supervisor 
furnished the following information telephonically ?&#39;ro""&#39;TH.&#39;m E
New York Office;
"this press release was received today by the New
York Times for release on Monday AM, January 12. This is the
text of the release.
~ "The New York Daily Worker in a telegram to Attorney
General McGranery revealed that FBI Agents have been accosting
and harassing members of its staff and charged an invasion of
freedom of the press. The paper cited two specific staff mem~
bers, Negro Affairs Editor Abner W. Berry and Assistant Business
Manager Emanuel Levin, as having been subjected to attempts at
intimidation The text 0 the wire si ned by Alan Mar, Hanaging
Department of Justice,- J" &#39;9
Editor_follows: &#39;Attorney General VcGranery,/"Tc ll-11&#39;:
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Washington, D. C. During past fe months a number of Daily horker
stdf memo rs, including Abner L errg, our Negro Affairs Editorand Emanu8§92BQEin our Assistant Business Manager, have been /V1/ J
accosted and ha,assed by agents of the FBI. In some cases our
staff members have been repeatedly accosted by agents who made
it clear that an attempt was being made to recruit stool pigeons
and to frighten people into leaving the paper. In several cases
the activity of the FBI Agents was of such a character as to
impress friends and neighbors of their victims that a job on our
-nnmunnno-r92 nnw-r~~|ar¬ :1-.1-1-I: 1-r&#39;- +}1§ +n1&#39;n+ nu" /921-n&#39;m-innT1&#39;1~n In I1n]r§&#39; fhnfII92|l |J92J1-!921.l924l uullvuw uvwvlv vv mu. v92-Ivanu ud N-lI&#39;I|92.w|u92A;.Ivt1n  Iv "v.¢.u- |.-.---0»
this activity of the FBI is an invasion of the freedom of the
press,
these secret agents, many of whom snooped among friends andfreedom of speech and personal freedom. The activities of
neighbors of our staff members, have borne no fruit. Such activity..:|»......-..-.-I--e~-J».-92.-I -J-I92 ..-92 -J-Ln .921-.-H.-Ann n--A "4-4-5.-.1-i-L." nu-1. -in -m!-.-Ah 4-IhnLl-:||HU|&#39;l§ U! Uv|lCFL|r UU NU UFIG QUILSC I UIJD LSIILL D I-IULl|,I.l.rJly HJIJH lrli l.lJl&#39;l1 our» UJiG
personal freedom of all citizens claimed by the Bill of Rights
are being undermined. We stand by the Constitutional ri ht o9 f
our editors and staff members to fight both personally and pro-
ifessionallg for a peaceful world for the cause of the working
:class and the Negro people without accounting to your Departme
ED - -u92J=~= =-F*" REQQRYB
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or any other Government agency. re demand that the FBI be &#39;
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publication. Signed - Alan lax, Managing Editor." _
}¢0ntact§_I{th atly Yorker xnglgyeee and Gontgibatinglrritere
followsThe other individI
uale who have been contacted are as

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The Communist Party has lately noted with alarm the
increase in contacts by the FBI and is repeatedly warning the
comrades to refrain from talking to Bureau representatives
in absence of counsel. its Pbrty has evidently become so jitte
that they decided to try to apply pressure on the Attorney
General by accusing the.Bureau of intimidation and the use of
threats both of which are jbleee It is believed that we should
ignore this attempt by the Party to force us to cease our
interview program and in fhct this should give iapetus to the
program as the Party is undoubtedly very much concerned over
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FOIPA DELETED PAGE INFORMATION SHEET
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TO: A,h. BELNCHT June 1?, 1353 Q
i SUBJECT: JULIUS OSENBERG,
w ETHEL ROSENBERG
ESPIONAGE - R
i __ _______,at Jzup P.., SAC Hood advised that Justice Burton hasagreed to see defense attorney Bloch and a men named Short  believedto be a nrofessor from Chicago! anon Burton: return froghlunch. Heis now out to lunch. Virginie Gardner, reoorter for the _paily Worker!has called her newer. They 8?: arranging to tell Julius R6§enber§T§"mother of the action of the Court and to try to null her toceth
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PUBLISF-_i:.RS NE1-J PRESS, INC.I$&#39;Cf92 . §FB5TJ{6dL
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Reliulet 1/6/5L; captioned "THE DAILY mnrusml Is-c."
The New York Office has conducted preliminary inquiry
aa requested by the Bureau in reBulet. Concerning the first
seven individuals nantioned in raBu1et, the following is noted
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NY 97-169
case e
with Bureau
Above-men ti one dce in
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article . _:&#39; Ava» 92
A eecuri ty matter cane is being opened in the HYO
in an effort to identify this individull. -.
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etter is being directed to the Knoxville
on consi ring them officeeof origin in this case, with
leads directed to the Memphis and Denver offices directing
investigation to identify this individual.
 57¢
A security matter case in being opened in the
New York Division to conduct investigation to identify this
individual,
&#39; Concerning the remaining ZL individuals, the
following action is being taken in this dirieicn.
&#39; security matter cases are being opened on the
following individuals in an effort to identify them and
determine their subversive connections:
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Letter to Director, FBI
HY 9?~l6¬
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Security matter cases are presently open on the
following individuals and investigation will be directed
for ascertaining if these individuals are identical with
individuals writing in the "Daily Worker.

In the event it is determined that these individuals
are not identical with the person writing articles appearing
in the "Daily Worker, additional case files will be opened
in an effort to identify these individuals and to determine
their subversive affiliations.
The fOllOWig,idiVidU&1 is believed identical
with the case file existing in the NYC which is being reopened
for investigation as directed by the Bureau:
L7c__
A ease file has previousl b k the
roll F
ga on e
a1 and to ascertain
his subversive affiliations.
r j be
Separate communications are being drected to the
divisions indicated below to conduct investigations to identify
persons having written in the "Daily Worker" who appear to
reside in the respective divisions. -
-3-

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Letter to Director ,FRI
NY 97169
Di ision
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Investigations conducted above will be reported
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Dear
I have received your letter postmarked
Huron 22, 1954, and I appreciate the interest
uhioh prompted you to write.
Ihtle I would like to asetet you, the
FBI does not have any material of the type you
requested which we can send you.
It is 0 pleasure, however, to enclose
some other data concerning Communism, in view of
your interest in this subject.
I do hope that thin material will be
of value to you.
Sincerely yours,
92
L Edgar Hoover
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Your letter dated October -3&#39;, 1954., has beenreceived. &#39; 92D
While I would like to be of service, it isnot possible for me, as a matter 0} policy, to adviseyou as to the course of action you should take. Itis a pleasure for me to enclose some material which
I thought you would like to have.
S&#39;l;T1C¬T&#39;E.l1.|&#39; yours,
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Nichol 7"{A0, New York November 22, 195
fpgreotor, FBI 1-4478!
&#39;DAILY WORKER"
INTERNAL SECURITY - cI":-S1
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Reference is nude to Jureau Form 5-1 dated .
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November 2 and 8, 1954, islues of the abovecaptioned
A check at the Bureau has fbiled to locate the
referenced form. You are requested to advise the Bureau,
attention Central Research Unit, as to whether this form
was returned and the statue of these issues.
¢_/1 ¢&#39; -  £7, q nzcoamzn 52 &/"r-5&1 W 55&#39;7C;/

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SAC, New York November 29
Director, FBI 1-4-we!
"DAILY F-ORKER"&#39;
Iiv&#39;TER.=1AL SECURITI - C
1 dated November
Fevenbcr 2 uni
publication.
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. Reulet dated Ieuenber 22; 1954, requesting your
qfice to advise the Bureau an to whether Bureau Fern 5-1
9, 1954, was returned and the status of the
3, 1954, issues of the aboueceptiened
qftce should disregard the abovereferenced &#39;
letter tnaanuch ne the referenced Bureau fora and iaaues
have since arrived at the Bureau.
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Dire ctor , FBI   61-1.1178 DATE J
ATT: CENTRAL RES? YCH BU°EAUJA
SAC , Iicr: York
"DAILY&#39;KORKE3"
ISC
Reurlet 11/22/Sh
Bureau form 5-1 reqnestlng three copies each os the Nowenb.r 2 and3, l95L issues of the "Daily 1orker" was returned to the Bureau, ll/22 Sh
attached to above described coples.
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Mr. Tolson DATE: Dec. 6, 1954-&#39;1 Nf**l:<1T1@"
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92_ ll.-, __/L. 15. Nichols &#39;7
INDEXING or DAILY WORKER
ISSUES 1934 _ 1946
V I;
vat5;t§eta+ called. s sponsoring -  »n exmg, or the Arnericanisg Commission, prominent names 
and Organizations which have appeared in Daily v&#39;vorker iseues from 1934
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Domestic Intelligence Division and it was ascertained that the New York Office
has indexed the Daily" Worker back to 1941. The exact date that indexing was
initiated in our central records at the Seat of Government is unknown; however,it is believed that we did not go back as far as 1934. as
y of therefore advised that we would appreciate being inforrnauy g1/6513
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ACTION:
Intelligence Division for information.
cc; Mr. BoardrnanIt is suggested this memorandum be forwarded to the Domes
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