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$17,600 allegedly contributed by Senator McCarthy's relatives, were, in fact, personal expenditures of Senator McCarthy. Following is a list of withdrawals by Senator McCarthy from Wayne Hummer & Company in 1944, the ultimate disposition of which is unknown:

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In 1944, Senator McCarthy received $11,100 in Government bonds and, during that year, he deposited $11,250 with Dean Witter & Company, Los Angeles. These two items, together with the $17,600 allegedly contributed by his relatives to his 1944 primary campaign approximates the total withdrawals from Wayne Hummer & Company in 1944, which have not been traced. If the payments totalling $17, 600 were not those of Senator McCarthy, it would seem most unusual that the Senator would have called upon his relatives for financial assistance to the extent indicated immediately after he had profited by more than $40,000 in his market operations.

Although it would not appear that Senator McCarthy would have permitted Margaret F. Hagene to file an affidavit containing information which Senator McCarthy knew to be false, it is significant to note that the "Committee to Elect Joseph R. McCarthy to the U. S. Senate" reported that it received $5,100 from Howard and Tim McCarthy on May 12, 1944 (Exhibit 101) and the records of Wayne Hummer & Company reflect that Senator McCarthy withdrew stock market profits totalling $17,925.55 between March 1, 1944, and May 12, 1944, which are not otherwise accounted for. Included in this total is $11,100 which was presumably used to purchase Government bonds in which event there is $6,825.55 remaining unaccounted for.

The Committee reportedly received $6,100 from Roman Kornely and Howard McCarthy on June 14, 1944, and the Wayne Hummer & Company records reveal that Senator McCarthy withdrew stock transaction profits of $7,000 between May 24, 1944, and June 7, 1944. The Committee reportedly received $6,400 from Howard McCarthy on August 2 and 4, 1944, and the records of the broker disclose that between June 28, 1944, and July 14, 1944, Senator McCarthy withdrew $13,800 in profits. Although the figures cited are not conclusive, it is singular that on or about the dates that the Committee received amounts from relatives of Senator McCarthy that Senator McCarthy withdrew stock market profits somewhat in excess of the amounts reported by the Committee.

It might be of further significance that the only amounts reported as being received from relatives of Senator McCarthy in his 1946 campaign for the primary and general elections are:

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William P. McCarthy, a brother of Senator McCarthy, is employed in Chicago, Illinois, as a truck driver. He resides in a modest homé at 1938 Wolfram Street, Chicago, and appears to be a man of only moderate means. There is no evidence that William P. McCarthy had any experience in the commodity market prior to August 27, 1948.

On or about August 27, 1948, William P. McCarthy opened an account with Daniel F. Rice & Company (Exhibits 111 and 118) by depositing $10,000. When interviewed on June 19, 1952, by a Subcommittee investigator, William P. McCarthy declared that the $10,000 was received by him from Senator McCarthy, and represented the repayment of previous loans totalling $7,000 which he had made to Senator McCarthy since 1927, and $3,000 representing a loan by the Senator to him.

Investigation revealed that the $10,000 deposited with Daniel F. Rice & Company was comprised of three items: (1) a bank draft drawn on Drovers National Bank by the Appleton State Bank on August 25, 1948, in favor of Ray Kiermas (Senator McCarthy's Administrative Assistant) for $5,000 (Exhibits 112 and 118). This draft was endorsed by Kiermas to the order of Daniel F. Rice & Company for the account of William P. McCarthy; (2) check for $1,223.72 on the account of Ray Kiermas at Riggs National Bank, dated August 30, 1948 (Exhibits 113 and 118); and (3) an item for $3,776.28, drawn on the Appleton State Bank, which that Bank has been unable to identify.

William P. McCarthy began his market operations on September 23, 1948, by selling 10,000 bushels of July wheat short (Exhibit 114). That particular transaction resulted in a loss of $1,367.50, but his overall operations for the period ending December 7, 1948, resulted in a profit of $2,967.50. There were no more trades prior to February 10, 1949, at which time $10,000 was withdrawn from the account, leaving a balance in the account of $2,967.50. The $10,000 was transferred by Daniel F. Rice & Company to the Appleton State Bank through the Continental Illinois National Bank and Trust Company of Chicago (Exhibit 115). Against this $10,000, the Appleton State Bank issued Demand Certificate of Deposit No. 97257 for $10,000 and this Certificate of Deposit, together with an additional $2,613.16, was used to purchase Appleton State Bank Draft No. 77874, drawn on Marshall & İlsley Bank, Milwaukee, to the order of Wayne Hummer &

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Company in the amount of $12,613.10, dated March 3, 1949 (Exhibit 116). The $12,613.10 was used to purchase 500 shares of Dana Corporation stock, which were issued in the street name of Goodbody & Co. (Exhibits 117 and 117A), and were pledged as collateral for Senator McCarthy's loan at the Appleton State Bank.

William P. McCarthy permitted the aforementioned balance of $2,967.50 to remain inactive in the Daniel F. Rice & Company trading account from December 7, 1948, until December 5, 1949 (Exhibit 118), despite the fact that he had an interest-bearing savings account at the First National Bank in Chicago. On December 5, 1949, William P. McCarthy purchased 10,000 bushels of May corn on margin, which was sold on December 13, 1949, at a profit of $82.50. There were no trades until late in 1950, so all through 1950 there was a balance in the account of $3,050.

On January 29, 1951, William P. McCarthy deposited $2,000 with Daniel F. Rice & Company, which amount was withdrawn from his savings account with the First National Bank in Chicago on that date (Exhibit 119 and Exhibit 126).

Of possible significance in connection with this deposit are unexplained transactions in this savings account of William, which appear to be direct transfers of cash from Senator McCarthy and are as follows:

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Shortly after each of the above dates, similar amounts were charged to the general account of Senator McCarthy at the Riggs National Bank (Exhibit 86). It should be noted that the deposit by William with Daniel F. Rice & Company of the $2,000 after receiving the above $2,025.00, appears to be the only time that William took money from his savings account to play the market.

Trading between December 22, 1950, and March 8, 1951, resulted in a profit of $2,109.00 and, as of March 8, 1951, William had a credit balance with Daniel F. Rice & Company of $7,159.00, represented by trading profits of $3,050 and $2,109, plus $2,000 deposited on January 29, 1951. On March 9, 1951, he closed his account and, on that date, Daniel F. Rice & Company issued its check to William P. McCarthy for $7,159 (Exhibit 120). The check was cashed at the Lincoln National Bank, Chicago, on March 19, 1951.

On March 19, 1951, an account was opened with Daniel F. Rice & Company in the name of Julia Connolly, which is the maiden name of Mrs. William P. McCarthy. The account was opened with a cash deposit of $7,000, being a portion of the proceeds of the $7,159 check issued by Daniel F. Rice & Company to William P. McCarthy on

March 9, 1951. Operations in the name of Julia Connolly in 1951 resulted in a profit of $3,300 and in 1952 to September 4, 1952, in loss of $2,912.09 (Exhibit 121), or a net profit to September 4, 1952, of $387.91. On March 7, 1952, a check was issued to Julia Connolly by Daniel F. Rice & Company in the amount of $1,200. As of September 22, 1952, there was a credit balance of $6,187.91 in the account and there were no open trades at the time (Exhibit 122). The $6,187.91 is represented by the following:

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The profits totalling $5,546.91, plus net cash deposits of $641.00 are still carried in the account of Julia Connolly by Daniel F. Rice & Company. When interviewed on June 19, 1952, William McCarthy stated that the account was opened in the name of Julia Connolly with the idea of concealing the account in the event of an investigation of Senator McCarthy's affairs.

The overall trading picture for both accounts shows that during the period of trading operations, September 23, 1948, to September 4, 1952, a total of 905,000 bushels of commodities were traded in for a net profit of $5,546.91. Of the total bushels traded, 215,000 bushels represented short trades resulting in a net profit of $3,668.00, and 690,000 bushels represented long trades resulting in a net profit of $1,878.91. Commodities traded in were rye, corn, wheat, barley, and beans.

To be noted are the short operations. Short selling involves much greater risk than long, and short sales of commodities is a most dangerous form of speculation, in general indulged in only by the most astute and experienced operators. The first two operations in the William P. McCarthy account involved a short sale of 10,000 bushels of July wheat on September 23, 1948, and 5,000 bushels of December beans on the same day. Apparently, he had no previous experience in either security speculation or commodity speculation and questions arise as to who or what influenced these trading operations.

William McCarthy formerly resided in Milwaukee and on January 25, 1939, opened a savings account with the First Wisconsin National Bank of Milwaukee (Exhibit 123). The only substantial deposit in the account was one of $3,000 made December 10, 1940, the source of which is not known. The account had a balance of $2,734.12 on March 12, 1942, when it was closed and a joint account was opened in the same amount with William P. McCarthy and Julia McCarthy (Exhibit 124). This account had a balance of $3,124.72 on June 24, 1948, at which time it was closed and a Cashier's Check for that amount was issued to William P. McCarthy (Exhibit 125).

Julia Connolly opened a savings account with the First National Bank of Chicago prior to 1941, and on September 11, 1942, it was made a joint account with William P. McCarthy (Exhibit 126). On July 3, 1948, the check for $3,124.72 issued by the First Wisconsin National Bank was deposited in the First National Bank of Chicago. According to the Wisconsin State Income Tax Returns, Senator McCarthy paid William P. McCarthy interest of $2,258.00 in 1949 (Exhibit 127). No portion of this was deposited by William P. McCarthy in the savings account with the First National Bank of Chicago and it was not reported as 1949 income by William P. McCarthy, although he did report this as 1950 income. None of the $2,025 paid to William P. McCarthy in 1950 by Senator McCarthy is shown by the Senator as interest expense in his 1950 State Income Tax Returns. There is no indication that William P. McCarthy has ever had the financial capacity to loan anyone an amount that would earn interest of $2,258 in one year, or even that much interest in several years.

An attempt was made to interview William P. McCarthy at his home on November 17, 1952, for the purpose of obtaining an explanation of his unusual transactions, but he declined to be interviewed. Senator McCarthy has been invited to appear before the Subcommittee to explain his financial transactions, but has repeatedly declined to do so.

In view of the above facts the following questions remain unanswered.

Was the $10,000 deposited by William P. McCarthy with Daniel F. Rice & Company on August 27, 1948, received directly or indirectly from Senator McCarthy? If the $10,000 or any portion of it was advanced by Ray Kiermas, why was the eventual return of this amount paid to the Appleton State Bank for the benefit of Senator McCarthy?

Why did Senator McCarthy advance money to William P. McCarthy to speculate in the commodity market at a time when he was heavily indebted to the Appleton State Bank and the Bank was constantly calling on him for a reduction in the loan or an increase in the collateral?

Did Senator McCarthy speculate in the commodity market in the name of his brother, William P. McCarthy, or was the account with Daniel F. Rice & Co. a partnership account?

Were the payments totalling $2,025.00 by Senator McCarthy to William P. McCarthy in 1950 made for the purpose of bolstering the Daniel F. Rice & Company account, and, if so, why were they not paid directly to the broker?

On what balance was the $2.258.00 interest reported by Senator McCarthy as being paid to William P. McCarthy in 1949 and for how long a period did the payment cover? How was the payment made by currency or check, etc.?

The Appleton State Bank transactions

On February 13, 1945, the Appleton State Bank, Appleton, Wisconsin, loaned Senator McCarthy $1,800 which was used to open a checking account with that bank. In July, 1945, the bank loaned Senator McCarthy $73,000 (Exhibit 91) which was used by the Appleton State Bank to purchase, through its omnibus trading ac

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