The Birmingham age-herald., 1920-05-27
PALMER CANDIDACY
 1. GIVEN DEATH BLOW BY SENATE PROBE
Manager Carlin Represents Clients Making Millions of Fraudulent Income
 Tax Returns
By CLINTON W. GILBERT

Ny AiiNION w.
 Washington, May 26.-(Spe- cial. Mitchell Palmer's cam- paign for the presidency got it's death blow this morning be- fore the Kenyon campaign fund Investigating committee.
 Charles C. Cnrlin, campaign
 manager for Palmer the
 stand and the committee developed
 the fact that he was counsel for
 Herbert DuPuy, former chairman
 of the board of directors of the
 CrucibIc steel Company, which
 was charged with defrauding the
 government through false in-
 come tax return and which made
 restitution of more than $9,o00.o00.
 Moreover the government has
 claim against DuPuy and wife for
 S1.50O,0O0 for fraudulent income
 tax returns. Mir. CarIin repre-
 sents the DuPuys in this contest.
 MAY BE CRIMINAL CASE
 Criminal prosecution for fraud is possible under the statute and thus Mr. Carlin, the Palmer campaign man. ager represents as a client a man who may be prosecuted for fraud by MT. Palmer. Under the law it is possible for the government to waive criminal prosecutions, accepting mere civil settlement of the amount defrauded plus penalties. Mir. Carln dwelt on this.
 Thus it is possible for Mir. carlin to arrange a compromise by which his cieM will escape prosecution by his presidential candidate.
 The committee by persistent ques- tioning brought out the fact that there had been no criminal prosecutions in- stituted by the attorney general either personally against Mir. Carlins client Mir, Dupuy or against the Crucible Steel Company officials. He said he would not represent Mr. DuPuy in ease criminal proceedings were brought or at least, he hedged nothing had been said to him about appearing as coun- sel in criminal proceedings.
 But he admitted the government was represented in it's claim of $1,500, 900 against the DuPuys by D. M. kelleher. who was special assistant of the de- partment of justice, subordinate of MT Palmers Thus, in the civil case the Attorney Generel is on one side and his campaign manager is on the other.
 This arrangement between Dupuy and Carlin was entered into in Fehru- ary by an agent of MT, DuPuy. At ! that time Cariin was either already i Falmer's campaign manager or was 1 indicated for prominent place in the 1 Palmer campaign by the close politi- l cal association with Palmer.
 RELIEF TO REPUBLICANS | It was n great relief to the re- pubIicans on the Kenyon commit tee to shift the unpleasant lime light to the democrats today. The i development with regard with 1 Palmer relieved the minds of sena- tors like Edge md Spencer, who were worried by the extent to which the inquiry was developing into n drive upon Wood. Today they feel the inquiry will eliminate all the republican can- 1 didates who have participated in 1 the primaries aud open the way for Knox or some dark horse. The Palmer evidence will strengthen l the determination of the committee to go i to the bottom of campaign expenditures ! While it reflects only on Palmer and l the administration, it will tend to Iyake the preliminary campaigns generally smell bad to fasten public attention upon camaign methods and to make unlikely the nomination of any of the big spend- | CTS.
 WILL DELVE INTO STATES l The committee shows disposition not | to stop with the expenditure of the na- 1 tioral organizations Of the various candi- l dates, but to go into the states where i there were contests and call the state | managers to find out what they spent | For example. Congressman Cramton. 1 Senator Johnson's manager in Michigan. was in the committee room with the fig i urges of Johnson's expenditures in 1 Michigan These totaled about $i2.0O0. of which none came from Manager Mc- l sjween. Congressman j. A. Elston of Cal l iforna had contributed s6,e1Q of this ST. I 000 Most of the rest of it was still I owed, was a deficit.
 There is sort of twilight zone in cam 1 paign expenditures. National campaign 1 (Continued on Page Six)