1.
Establishing material -- shows B. Everett Jordan, (democrat of N. Carolina) the committee chairman, Mr. Lennox P. McLendon, Committee Counsel, and Mrs. Gertrude C. Novak and her counsel Kenneth D. Wood -- shows her being sworn in and includes gv's of committee room.


2.
McClendon asks how did Mrs. Novak's husband die, and she says it was an accident as far as she concerned.


3.
McClendon asks how Baker passed on stock purchase tips--she says they came up in conversation, and describes how the Novaks became involved in Mortgage Guarantee Insurance purchases, says she and husband put up all money, but shared profits with Baker.


4.
McClendon questions Mrs. N. on documents indicating source of stock purchase - she indicated Baker relayed the 12 thousand dollars paid to him by the Novaks for the stock to its owners.


5.
Discussion of letter from Baker acknowledging his share of profits in stock sale.


6.
Sen. Carl Curtis (Rep, Nebraska) asks why Baker expected to share the profits without putting up any money (in purchase of Mortgage Guarantee Stock). She says presumably he would have shared a loss too -- they had faith in him, she says.


7.
Claiborne Pell (Dem, Rhode island) asks if influence involved and she says no.


8.
questioning by Committee counsel reveals that Baker wanted his participation in the venture with the Novaks to be a partnership rather than a corporation because the former had tad advantages.




Initials



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Background: Bobby Baker public hearings held 17 December in Washington, DC.