Evening star., 1927-11-08
H. c. Powell, Chief Collector
in D. c. Office, Arrested
at Hospital.
WARRANT IS ISSUED
BY U. S. COMMISSIONER
Accusation Follows Probe by Bu-
reau Agents-Formal Complaint
Involves $4,000.

II. Clay PoWeil, assistant Chlef neld
deputy collector of internal revenue,
in charge of the Washington office,
was placed under arrest today at q
local hospital, where he has been i'll
for some time. Powell is charged in
warrant issued by United States
Commissioner Needham C.. Turnage
with the embezzlement of $4,000 be.
longing to the United States, which
came into his possession as deputy
collected at Washington.
Commissioner Turnage went to the
hospital where bail of $4,000 was ar
ranged for Powell's appearance before
him on December s.
The complaint was sworn to by
Frank j. Wilson of the Intelligence
Unit of the Bureau. following an in
vestigation OF the accounts Of Mr..
Powell after ne had been taken to the
hospital. He was in charge of col
lecting delinquent taxes and it is
claimed that some of the tax payers
paid him in cash and others gave
checks, which. it is alleged, he en-
dorsed and converted the receipts to
his own use.
$500 Theft Charged.
The formal charge in the warrant
is violation of section AZ of the penal
code. 1t is alleged that between
January 25. 1926, and August Z. 1927,
Powell unawfuly and feloniously
did embezzle, steal and purloin Ger
tain money. to wit. $4,000. lawful
money of the United States. being
then and there property of the United
States, which he had collected in his
official capacity as deputy collector.
the said money being due the United
States as internal revenue taxes"
Although the amount named in the
warrant is only s2,500, Assistant
United States Attorney Leo A. Rover,
who directed issuance of the warrant.
declared that much larger amount
is involved.
Galen L. TAFT, collector for the
Baltimore area, which includes the
Washington district. here today in
connection with the investigation
and turning over of the Office to A.
Parks Rasin, declared that he was
doing some necessary houseclean-
ing and said that the information in
the case had been turned over to the
United States attorney.
Mr. TAFT issued the following state
ment:
1T would appear that the amounts
involved are not excessive and are COW
cred by bond of the individual re-
sponsible."
Lies i'm Hospital.
Mr.. Powell, who was relieved Of his
position, was in George Washington
University Hospital this morning from
a recent appendicitis operation. but Of
ficials there said he was in condition
to be removed to his home, 1903 CAL
vert street, this afternoon in an am
bulance.
Mr.. Tait's statement in full follows:
With reference to my recent re-
moval of H. Clay Powell from the
position of assistant chief field dep
uty. in charge of the Washington
Internal Revenue Office, 1 would say
that / am doing some necessary
housecleaning.
"A few weeks ago started care
full investigation by my force of the
Washington office. which. to my re-
gret- disclosed the existence of cer-
tain reprehensible matters. / then
asked Mr.. Blair. commissioner of In
ternal Revenue, to instruct the Spe-
cial Intelligence Division of the Bu-
reau to assist my deputies in working
them out.
II have today turned over the facts
and further action in the affair to the
United States district attorney for the
District of Columbia. A warrant of
arrest will undoubtedly be issue. 1t
would appear that the amounts In
volved are not excessive and are GOV.
cred by bond of the individual re-
sponsible."
Handles All Z. S. Taxes.
The local office handles not only in
come taxes. but all other taxes which
residents of the District of Columbia
pay to the Federal Government.
Thousands of taxpayers file through
the small place on each quarterly in
come tax payment period. March,
June, September and December.
Not all taxpayers. however. clear
their accounts through the local office.
as many are sent by mail to the col
lector's office at Baltimore.
How much money goes through the
local Office as compared to the total
collected for the District of Columbia,
does not show in the latest reports at
the Treasury Department. But the to.
tai amount of internal revenue col
lected from the District for the fiscal
year ending June 80. last. was s1S,.
227,332. OF this. $l6,019,922 was in
come tax. and the remainder miscel
laneouS.
At the Treasury it was learned that
operatives from the special intelligence
unit of the Bureau of Internal Rev.
enue have been working on the inves.
tigation for some time. Several men
have been detailed to the work, ac.
cording to Elmer l.. Trey. chief. who
would not. however. amplify the mere
announcement that his men were
working on the case.
Mr.. Powell has been in charge Of the
local office for several years.