Evening star., 1925-04-03
INDICTED DEPUTIES
UNDER SUSPENSION
Seven Accused of Extorting
"Hush" Money Removed
From Office.

Seven deputy collectors Of internal
revenue indicted yesterday in New York
on charges of extorting hush money
from business men were suspended
from Office on orders of Acting Commits
sioner Nash of the Internal Revenue
Bureau
Of1cisls here declined to discuss the
case beyond stating that intelligence Of
ficers of the bureau have been engaged
almost a year in running down COM
plants against the men involved. Those
indicted were Charles II. Green, AL
bert o. Nelson, William Snowden. Saul
c. Steinthal, Henry Mayer, David Ben
jamin and Charles Tremonti.
The intelligence unit. Internal Rev
enue Bureau, headed by Elmer L.
Trey, continues to make progress in
its campaign against persons sus-
pected of income tax Irregularities of
various kinds.
Three Men Arrested.
Three men were arrested in two
new cases Wednesday. and two more
men in a previous case, who had been
arrested in New Haven. arrived in
Washington. All were released on
bond. Two of them, employees OF the
Internal Revenue Bureau. were sus-
pended.
Maurice F. Vernon. an auditor in
the income tax unit. of 1928 Twenty
hrst street northwest, was the local
man taken into custody WedneSday
while shortly thereafter Ellis A.
Laskey. head of Brooklyn firm of
public ACCOUNTANTS, was arrested in
New York. Both were charged with
ment in connection with the income
tax case of Houlder, Weir g. Boyd"
a ship brokerage firm In Kew York
City. The allie cations are, accordin g
to a statement by the Internal Rev
enue Bureau, that Vernon and Las
key, by means OF the presentation of
brief containing false statements
and a balance sheet containing false
information, intended to have the
corporation classed as personal
service corporation. which would
have resulted in the elimination OF q
tax of approximately $4,000 The
taxpayers reported to the Commits
sioner OF Internal Revenue the pro-
posal made, and co-opersted fully
with the agents OF the intelligence
unit in the investigation. Vernon
was suspended.
Held Under bond.
Laskey was neld in 81, 500 bail for
a hearing April Is. while Vernon,
when a.raigned before United States
Commissioner Turnage here wednes-
day afternoon, was held in $4,000
bond for a hearing April Is.
Benedict Rabinowitz of Bridgeport,
Conn, an internal revenue agent, was
arrested on a charge of accepting q
bribe in connection with the tax case
OF the Naugatuck Lumber Co., OF
Naugatuck, Conn. He contended tina t
he had accepted money only for a
Hebrew fund. Rabinowitz has been
suspended revenue agent.
James J.. Clifford and John r. Nc
Carren,, former employees OF the Bu-
reau of Internal Revenue, who were
recently arrested in New Haven, were
brought here yesterday and released
on $4,000 bond by the District Su-
preme Court. They were charged, in
connection with Frederic Sutherland,
an auditor in the income tax unit
here. OF "an attempt to defraud the
New York, New Haven and Hartford
Railroad Co. Of a large sum of money
by means OF representing TO the COM
pany that the Government was about
to assess taxes of more than mil
lion dollars against subsidiary rait-
roads. and that the defendants could
have this tax reduced