Milford chronicle., 1921-10-07
CAPITALIZING INSIDE
INFORMATION

WASHINGTON - Especial Corre-
spondence) The Washington Post
remarks: Administration Democrats
knew what they were about when
they tangled up governmental affairs
and then organized law firms to take
over the resulting litigation" In the
language of the street, the Post said
a mOuthful.
An instance may be cited of GER
tain firm now doing business in Wash
ingtOn, the name of which will soon
er or later be made public when the
Administration decides to look into
the matter. The head of this firm,
which styles itself business and gov
ernment cOnsultants," was Commits
sioner Of Internal Revenue, for some
time under the Wilson Administration.
When the Democrats came into power
in the House in 1910, this gentleman
was a clerk in the Census Bureau, in
a division which is said to have been
under more or less suspicion in con-
nection with q cotton leak which was
played to advantage in the stock mar
ket by the parties who were given
the advance information on the cot
ton crop. He was selected by the
then chairman of the Ways and Means
Committee, now Senator Underwood,
of Alabama, as clerk of that commit
tee. lie brought with him to that COM
mittee an assistant who is at present
occupying a very confidential position
high up among the Republicans of one
side of the Congress, and whose run
ming mate occupies a similar position
on the other side.
In 1918 the Democrats came into
complete control of all branches OF
the Government. This former Census
Clerk was then made first assistant
postmaster general, and the man he
had brought with him to the Ways and
Means Committee, became clerk under
| Chairman Kitchin. From first assist
/ ant z. M. G., our hero went to the
Tariff Commission as a reward for his
I services to the Democratic party in
the campaign of 1916, when the kept
lis out of war" racket was worked on
a too credulous public. He remained
there but a short time when the prize
appointment of the Administration,
outside the Cabinet, was given to him
/ Commissioner of Internal Revenue
/ He soon brought his assistant with
/ him as deputy commissioner of Inter
nal Revenue, the position being Great
ed by the Revenue Act of 1918, which,
| incidentally, also, raised the salary
| of the commissioner from $4,000 to
! $4,000, and also provided for legls-
lative drafting service.
Our hero resigned the commission
ership April l, 1920, his assistant
staying on until March 3, 1921. On
March %, 1921, the assistant was
made chief of the legislative drafting
service, and three days after our hero
opened up his suite of offices in the
Munsey Building, Washington, in part
nership with three others, one OF
whom had been deputy commission
er and assistant to our hero in the
Internal Revenue Office, second hao
been assistant commissioner in charge
of the income tax unit, and thlro
had also been a deputy commissioner
under our hero.
There is good reason to believe thai
the majority of the division officers
who remained in the internal revenue
Office after the five aforementioned
had resigned to enter into private
business dealing mainly with taxatloI
and tariff matters, owed their ad
vancement in the service to the sub
ject of this story, who through a chair
of happenings which would impress
the average man as the reverse OF Tor
tuitous, had ensconced himself IN
position to know about everything
: that was going on with respect II
. tariff and taxation should the bene
ficiaries of his generosity with tn
public salary list see fit to acqualn
him herewith.
There has of late been considerable
J complaint on the part of the large IN
come taxpayers, that they were hell
} to account for excessive taxatlol
: which necessitated protest and the ad
t Indicating of their assessment
through the medium of claims agents
: who exacted a generous fee for thel
services. That may be one OF tn
: things the Post has in mind. Why no
} clean out the Internal Revenue Office
and forbid former officials to handl
4 claims within three years OF their sep
aration from the service?