Investigations: A Pleasure Worth the Price

To hear the witnesses tell it last week, doing favors for former Senate Majority Secretary Bobby Baker must have been a pleasure worth the price. Testifying before the Senate Rules Committee, two of Baker's one-time business associates explained how they helped Bobby boost his personal net worth to $2,000,000.

Max H. Karl, president of Milwaukee's Mortgage Guaranty Insurance Corp. (nicknamed "Magic"), sketched in the background of the now familiar Magic stock deals. Baker, he said, had tumbled to the potential of the infant home-mortgage insurance company as early as mid-1959. Naturally, he...