The Waterbury Democrat., 1940-01-12

4IlQldIld has SOC lISelI SIldrl
In fact, 1t may be one of the
major tax scandals of 1910.
McNutt personally is not in
volved. There is no faint upon
his personal integrity. But APP
parently he failed to keep an eye
on several big-shots around him.
They are mired deeply. The
repercussions are expected to be
strong enough to blow McNutt's
presidential ambitions out Of the
water.
The case revolves around the IA
nous Indiana two per cent plan.
whereby state employees donate two
per cent of their salaries to the
party. There was nothing illegal
about this, but 1t now appears
from the Treasury Departments
secret Investigations that two
per cent--or more-was collected
on lot of things-road contracts,
purchases Of furniture and various
supplies.
]. Edgar Hoover has some Wig
OrOuS ideas about the sale Of pa
roles, especially the parole Of
the famous John Dillingcr, who
killed some Is people after be-
ing paroled from an Indiana
pcnitentiary.
The gentlemen now being in
vestigated made the grave mistake
Of failing to report some of this
revenue on their income tax re-
turns.
HOW CASE STARTED
Unique phase of the case Is the
manner in which 1t got started
The man who precipitated 1t was
Pleas Greenlee, former secretary to
McNutt. Greenlee had been a
member Of tn Bituminous Coal
Commission, but when 1t was put
under the aegis Of Harold 1ckes,
Greenlee's job automatically fold
ed, and he was recommended as
Collector Of Internal Revenue for
Indiana.
But the Treasury Department
was not anxious to appoint Green
lee. Morgenthau was quite salts
fled with Will Smith, the incum-
bent. However, he had his Treas
ury investigators go through a
routine checkup of Greenlee, which
disclosed that the proposed Inter-
nal Revenue Collector had not
always made out an income tax
return.
Greenlee's omissions, however,
were relatively minor compared
with others In the McNutt camp,
and his differences with the Treas
ury have been adjusted. Also, ac-
cording to Internal Revenue
agents, he became helpful In lead
ing them through the maze Of In
diana politics and tax receipts.
The Treasury expects to send
the case to the Justice Depart
ment in two or three weeks, and
II should break wide open Short
~ thereafter.
NOTE-President .Roosevelt's
move to put Josephine Roche in
charge of his health committee,
thus superseding McNutt, came
shortly after he got Morgenthau's
report on the brewing scandals.
SUGAR LOBBY
The clan Is gathering on Capt.
toll Hill. Not until the end Of this
year does the Sugar Act expire,
but the sugar lobbyists already
have come to town, registered at
the best hotels, and begun to roll
up their expense accounts.
First contingent to arrive was
from Louisiana. That's cane.
Then came the beet boys from
Colorado, then more cane boys
from Florida.
The boys have been moving
around. wishing a Happy New
Year to all their friends-NOT in.
GLIDING Cordell Hull, who hates
the sugar lobby as much as he
hates the Smoot- Hawley tariff.
They have put out no publicity.
but the Congressman know that
the sugar lobby Is in town.
MERRY.GO-ROUND
The income tax move which At
torney General Murphy Is maxi
ing against "Sweet william" Bioff
Hollywood labor leader, Is based
upon the allegation that Bioff did
chalk UP on his income tax re-
turn q payment Of 100000 made
TO him by Joe Schenck Of Twen-
tieth Century Fox in connection
with calling off q movie strike :. !.
Colonel Lindbergh got lot Of
criticism when he reported, Just
before Munich, that the Russian
air forces was weak reed to lean
on. Now It looks as II he was
right At the jackson Day