◆ SpookStack

ir. A. Rosen seventy-five per cent completed while the Hotel is only sixty-five per cent completed Then 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’ io and Restaurant were only parts of the main building which is the Hotel. lalso testified that this was the original pa 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/Mifferent contractor. was hired specifically and solely for the purpose of constructing the Casino and xestaurent. he: ED :20: tre witness stand, thoff stated that he appeared to be testifying truthfully but noted that al... very careful and at times confusing answers in reply to questions b posed by the Government. Mr. Ostholthoff expressed the be it would be extremely difficult to establish a case of perjury acon Allg but said he wished te hold his final opinion in abeyance until he had an opportunity to study thoroushly the transcript of the minutes in this initial hearing. — es TS represented the builders of the Flamingo Hotel, fy took the witness stand on be of subject Sie Ve thoff advised —' testified along substantially the sane lines as' noting that} = also contended that the Cesino, Restaurant, end Hotel were one building an . further thet this had been the intention of Siegel and his associates from the b: : beginning of this project. Mr. thoff again expressed the belief that some of mE the allegations made by SS may be false for the same reasons that some “8 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-— Zz tion of the Flamingo Hotel should proceed. However, the Commissioner also gave the ge Government until Thursday, September 5, 1946, in which to develop and present further = evidence to show that the construction of the Flamingo Hotel should be stopped forth- ‘ with. Mr. Ostholthoff stated thet the San Francisco Office of the CFA has conducted additional investigation and is desirous of presenting additional information at the heering to be held on September 5, 1946, in the hope that it can prevent the further construction of the Flamingo Hotel. Mr. Ostholthoff noted that the Sen Francisco 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 arrangements to cover the supplementary hearing to be held concerning this matter on September 5, 194! and alsc to furnish the Bureau ss soon as possinle with pertinent sections of the