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Even so, the settlement came unstuck —and another letter, dated Dec. 4, 1953, came from the FTC to Northfield, charging mislabeling. This letter so bewildered Bernard Goldfine, said he in sworn testimony, that he took it to his friend Sherman Adams to find out what it was all about. Adams then called FTC Chairman Edward Howrey, received in return a memo from Howrey that passed on advice on how the matter might be settled.
Lebandale Mills. New Hampshire's Republican Senator Norris Cotton has a 10% interest in this mill in Lebanon, N.H., controlled by Goldfine. Cotton's law firm, from which he still draws an annual salary, has represented both Lebandale and Lebanon Woolen Co., another Goldfine mill, for many years. In Lebanon, Cotton lives in a Goldfine-owned house at 4 Abbot Street, pays $75-a-month rent.
Last week Bernard Goldfine swore that Cotton had not represented him as a lawyer since going to Congress in 1947. Yet, in at least one instance, Norris Cotton still does represent Goldfine. The instance is that of the Rogers Hotel in Lebanon. Goldfine is the real owner of the Rogers. In 1943, Cotton negotiated the purchase of the hotel as a front for Client Goldfine, oversaw the title search and made the option payment from his personal bank account. Goldfine repaid Cotton for the option, but it was still necessary for Cotton to take final title to the hotel. As far as the public record is concerned, Cotton still holds the title, although he says he has filed with Goldfine a letter stating that he was Goldfine's agent in buying the hotel and would turn the property over to Goldfine or to Lebandale Mills whenever desired. Fifteen years later, the transfer has still not been desired.
In 1956, when Goldfine's East Boston Co. got in trouble with the Securities and Exchange Commission, Senator Cotton called the SEC's general counsel into the office of New Hampshire Senator Styles Bridges to put in a good word for Goldfine. Also present: Goldfine's old and great friend, Maine's Republican Senator Fred Payne. Payne has admitted receiving vicuna coats and hotel hospitality from Bernard Goldfine. And last week to a TIME reporter he confirmed a rumor that had received considerable currency around Washington: in 1952, Goldfine had advanced Payne $3,500 of the $5.000 needed for down payment on the purchase of Payne's $22,500 home in Hillcrest Heights, Md. The $3,500 came in the form of a loan: it has not been repaid, although Payne says he plans to make the loan good to Goldfine when he sells the house—"or before."
Mascoma Mill. This mill, also in Lebanon, is presumably another Goldfine property. In 1955, Textron Inc., then Mascoma's owner, served notice that it planned either to dismantle or sell Mascoma. Into the picture stepped Lebanon's First Selectman Joseph Perley, another Goldfine friend; Perley was a prime civic mover in reducing local taxes on Goldfine local properties, with the result that Lebandale Mills, listing assets of nearly $1,000,000, paid only $2,528 in town taxes last year. Perley said he knew of an Ohio textile firm that would buy Mascoma—although he declined to reveal its name. The Ohio firm never showed up. The county records show that Joe Perley himself bought Mascoma Mill from Textron on May 2, 1955 for $65,000.