Bad Company?

More doubts about Donovan

In the first week of the new Administration, only one of President Reagan's Cabinet officers remained unconfirmed: Labor Secretary-designate Raymond Donovan. A Senate committee still had questions about some allegedly dubious dealings of the Schiavone Construction Co.; Donovan was executive vice president and part owner of the firm. The FBI reported to the panel that it had developed information, which it could not confirm, that the New Jersey company's upper management was "closely aligned with organized crime."

Donovan vehemently denied any improprieties and testified: "We were never extorted." By...

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