◆ SpookStack

Hr. &. Rosen seventy-five per cent completed while the Hotel is only sixty-five per cent completed Ther EE took the witness stand in behalf of subject Siegel he testified generelly to the effect that the Casino, Restaurant, and Hotel were all one project, maintaining tha o and Restaurant were only parts of the main building which is the Hotel. leo testified that this was the original pr intent of those interested in the construction of the Flamingo Hotel, further pointing out that the basements of the Restaurant and Casino go around and through the Hotel, thereby making it one edifice. Mr. Ostholthoff expressed the belief that these allegations may be false since investigation has established that separate building permits were taken out for the Casino and the Hotel and, secondly, because/fifferent contractor. was hired specifically and solely for the purpose of constructing the Casino and cestaurant. ver ED 20% the witnoos stand, ie: stated that he appeared to be testifying truthfully but noted that gave very careful and at tines confusing answers in reply to questions pb posed by the Government. Mr. Ostholthoff expressed the be it would be extrenely difficult to esteblish a case of perjury against’ put said he wished tc hold his final opinion in abeyance until he had an opportunity to study thoroughly the transcript of the minutes in this initial hearing. —— ves ED «0 represented the ouilders of the Flamingo Hotel, an took the witness stand on of subject Sie thoff advised |: testified along substantially the same lines as noting ol +3 also contended that the Cesino, Restaurant, and Hotel were one building an ’ further thet this had been the intenticn of Siegel and his associates from the : beginning of this project. Mr. sOetbaithoff again expressed the belief that some ve aE | the allegations made by witness may be false for the same reasons that some of the allegations made may be false. At the conclusion of this hearing Mr. Ostholthoff advised that the Com missioner found in favor of Siegel and his associates and directed that the construc- 7 tion of the Flamingo Hotel should proceed. However, the Commissioner also gave the Government until Thursday, September 5, 1946, in which to develop and present further be oe evidence to show that the construction of the Flamingo Hotel should be stopped forth- YY with. Mr. Ostholthoff steted that the San Francisco Office of the CFa has conducted — additionel investigation and is desirous of presenting additional information at the “A hesring to be held on September 5, 1946, in the hope that it can prevent the further woes construction of the Flamingo Hotel. Mr. Ostholthoff noted that the Sen Francisco or Office of the CPA is now cooperating fully with the Bureau in connection with this — inquiry. ACTICN TAKEN The writer requested Mr. Ostholthoff to make appropriate arransements to cover the supplementary hearing to be held concerning this matter on September 5, 194) and also to furnish the Bureau as soon as possinle with pertinent sections of the