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Fm a . “1/PA tot + 2 — re: ue ~ - In compection with the investigation in these cases 4% has deen necessary te conduct physical surveil laness ef the principal wsabjects, particularly Frank Gestelle. Hovever, the various communications emanating in your Division have Feperted that these surveillances have been spet ehecks whish would indicate a Leope coverage in the interest of discretion oxi econpay. é Motwithstanding the inferastion contained fa your ccamenications relating te the ourveillances, a repert has recently reached the Bureau which indicates .@hat the surveiliances have beex so regular and elese that the principal subjeste have besone aware of the Burean's interest im thes. woe : a7 ~~ 4 In view of these circumstances it is requested that you immediately edvise the Bureau as to the exact nature ef the surveillances which have been sont by your Division in eennection with this matter and the degree ef discretion bas been exercized in this important matter. is connection, reference is made to the report of Special Agest ated November 7, 1946, at Hew York in the case captioned ‘Lb iegel; Miscellaneous - Information Conesrning; Crime Survey". Page 2 of this report reflects that Agents ef the New York Division were assigned te conduct the surveillance ef Benjamin "Bugs" Siegel beginning with his arrival ot the Laguardia Field airport at 9:15 aM en October 5, 1946. Notwithstanding . 51 the fact that he apparently arrived as scheduled the report indicates that 4 was ant observed at the airport. Subsequently, it was ascertained that he » Fegistered at the Recesvelt Hote] in lew York City at 11 AW on Octeber 5, 1946. toe Perea: fs extrvnsly soncerna! in view of the fact that the survaltties @f Siegel was mt properly handled. Yeu should also submit a complete explanation regarding the failure of Agents to properly identify end surveil Siegel on this . -_ 4 a2 PISI¥ = G04 EE hod — oe ome hie ee 62-81518 eel 9 img at SENSE oF > - DEC 13 188