INVESTIGATIONS: Natural Royal Pastel Stink

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The story of Stenographer Lauretta Young's mink coat was not exactly earthshaking, but at least it was almost understandable. That was more than could be said for the rest of the bewildering array of doubletalk, political shenanigans and obvious perjury inscribed last week on the records of the Senate subcommittee investigating operations of the Reconstruction Finance Corporation.

Mrs. Young, a stenographer in the White House, got the fur coat—a "natural royal pastel" mink, one of "the better" types—because of her husband Merl's vast capacity for making "friends." Merl did not even have to lay out a dollar for the coat. Joseph H. Rosenbaum, a Washington attorney specializing in clients who want RFC funds, paid for it and took Merl's note for the $8,540 purchase price. Had Rosenbaum picked up the tab for the fur coat because of Merl Young's influence at the RFC, the W7hite House and with "many very important people"? Of course not, replied Rosenbaum, righteously. Merl was just a friend.

The Senators brought out that Rosenbaum and others interested in getting RFC loans had lent Young about $135,000 during one period in question. During that period, Young's own insurance business brought him only $1,900, but he bought—in addition to the mink coat—a $52,000 house and pieces of several business deals. Snapped Arkansas' J. William Fulbright, chairman of the investigating subcommittee: "You don't expect this committee to believe that just out of a clear sky you suddenly fell in love with Mr. Young, do you? Do you think we are so naive that we think you did it just because you liked the color of his eyes?" ..Blair Spelled Backwards. From that point on, the week's developments got somewhat hazier. As one witness explained, "There's no law against double-talk." Rosenbaum, blandly talking of his and Young's financial maneuverings, declared that he had been following no less an authority than Federal Judge Learned Hand by obeying the precept: "Every citizen has a duty to minimize his taxes ..."

There was, for example, one incomprehensible deal involving what he called "one-half interest in the down payment on the option of $100,000." Then he mentioned an outfit called the Rialb Corp. "What is that?" asked Fulbright. "That," said Rosenbaum pleasantly, "is Blair spelled backwards." Fulbright, with a gesture that got to be common during the week, shut off the witness and exclaimed: "It's too complicated for us ... It's beyond my comprehension."