INVESTIGATIONS: Bernard Goldfine's Two Faces

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¶ Ducked responsibility for all the legalisms that had landed him in trouble with federal regulatory agencies: "Paper work has been out of my line." A good deal of that responsibility he tossed into the lap of faithful, longtime Secretary Mildred Paperman, seated near by at the hearings: "After all, I am not a bookkeeper. She is." (At one point, after Goldfine had repeatedly told the subcommittee that Miss Paperman could supply some of the answers it wanted, Miss Paperman indeed tried to pipe up with the answers. And Goldfine Lawyer Robert Robb distinctly admonished her: "Keep quiet, keep quiet, keep quiet.")

¶ Blamed "politics" for his troubles with committee, public and press. "Frankly. I like to meet important people. Is that so bad? In the country where I was born, it took two or three generations for a 'poor man' to get to know important people . . . Nor did I ever realize that it was evil to be generous. Perhaps I do give gifts to too many people, but if I do, it is only an expression of my nature." Another expression of Goldfine's nature came later when he tried to beat the House subcommittee to the punch by admitting to reporters that his gifts, including hotel expenses of more than $2,000, a vicuña coat and an Oriental rug to Sherman Adams, had been listed as tax deductible by Goldfine companies—i.e., legally valid if some "ordinary and necessary" benefit or advantage flowed to Goldfine businesses from the expenditure.

¶ Admitted that Sherman Adams had arranged an appointment for him to talk over his woolen-mill difficulties with the chairman of the Federal Trade Commission, but denied that Adams had exercised any influence "with these giant federal agencies where a little man gets lost without some kind of guidance from a friend."

¶ Recalled telling Adams in late 1955 or early 1956 that his real estate holding company, the East Boston Co., was "really being picked on" by the Securities and Exchange Commission, but denied that SEC pressure lessened as a result. Goldfine denied flatly and specifically that Sherman Adams had ever got him favorable treatment from Government agencies: "Mr. Chairman, I think you know Governor Adams is not that kind of man. And neither am I."

Santa Claus. The subcommittee had other ideas. When Goldfine finally finished his laborious script-reading, the questions came furiously. Counsel Robert W. Lishman asked Goldfine if, as ordered, he had brought along the records pertaining to $776,879.16 in treasurer's and cashier's checks* purchased by various Goldfine-controlled companies since 1941—and still uncashed as of last May 7.

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