Evening star., 1946-08-07
.FBI and Revenue
Men Get Data in
Carson Probe
Meud's Committee
Faces Decision on
Subpoena for May
By Robert K. Walsh

AIN D4, VIC wal l1duQS SGt-
ton of the Justice Department
and the Internal Revenue Bu-
reau moved to the front today
IN the investigation of the Cars
son munitions combine. with a
possibility Of grand jury pro-
ceedingS later.
| The Senate War Investigating
Committee has mot closed the door"
on It's own investigate OF the COM
blne, Chairman Mead declared. He
announced that experts from the
intelligence unit and revenue agents
office of Internal Revenue Bureau
will be assigned Immediately to the
committee TO examine income tax
returns in the Carson case and
others.
But Chairman Mead said the
committee sees no present likeli-
hood of further public hearings on
this phase of its investigation un-
less a session is called to hear Rep
resentative May, Democrat, of Ken
lucky.
At an executive session FRIDAY
with the lawyer and Washington
physician Of Mr. MAY, the COM
m1ttee will hear reports about the
legislators physical condition and
then decide whether to call him for
questioning. The chairman of the
House Military Affairs Committee is
still at his home in Prestonsb,lre
KY.
Silent on Action on Nav.
The committee is arranging.
through three prospective subcom-
mlttees, to devote most of its time
to other current Investigations.
Committee Counsel George Meader
will confer late today with Con-
troller General Lindsay c. Warren
ton "other aspects" of the general
investigation. Mr.. Warren, testify
ing before the committee last month,
urged tighter fiscal and accounting
controls in the handling of war con-
tracts and renegotiation and termi-
nation procedures.
The committee staff also disclosed
1t was looking into mystery of its
own. Mr.. Meader promised state
ment later today on a report that
the committees office files were
molested by person who visited
the Senate Office Building early one
morning about year ago. The
visitor was reported to have re-
moved some Of the files concerning
the Carson case but returned them
before 6 am. after copying them
elsewhere.
Mead Refuses Details.
Chairman Mead refused to be
draWn into premature" discussion
OF action he will suggest Or the full
committee will take after studying
the report it expects to receive Fri
day on MI. Mays physical condition.
Nor would he say at this time
that we will investigate Mr.. May or
John Jones or any specific individ-
ual' in the income tax angle of the
Carson situation. He added, how
ever, that inspection of tax returns
will necessarily relate to practically
all the companies in the combine
anc might" apply to some of the
persons who figured in testimony.
Senator Mead disclosed that at
mis- conference late yesterday with
Attorney General CLARK he was in
formed the department is making
these major moves:
. The F'BI is conducting "a full in
vestigation' Of the Carson COM
bine's activities, Although the At
torney General didn't say So"
Chairman Mead said he assumed"
that this includes the Cumberland
Lumber Co, with which Representa-
tive May was linked in public near
ing testimony.
The decision regarding grand
jury proceedings will be made when
the FBI investigation, which in
wolves careful examination of the
books and records of the various
companies, is completed. Senator
Mead quoted the Attorney General.
Paisley Heads Justice Team.
A team OF Justice Department at
torneys, headed by William A. Pals
ley Of the war frauds section of
the Criminal Division, has been as
signed to work with the FBI and
to fully analyze the evidence"
A joint statement by the Attornev
General and Chairman Mead after
their conference contained the fol-
lowing other developments:
The Department of Justice is TAX
ing an active part in the Chicago
action before the Federal Court to
appoint receiver Tor the Batavia
Metal Products Co, a Carson COM
pany. The department hopes to-
protect the Government interest in
the overpayment by the War De-
paltment Of approximately Sl,O00,-
600 due to overstatement by the
company of its termination costs !
THE Erie Basin Co.. another
Carson concern, has filed in the
Tax Court here petition seek
ing to reduce the. amount (approxi-
mately S1.320,0O0) of excessive
profits fixed by the Price Adjust
ment Board. The Attorney Gen.
eral has ordered that the amount
of excessive profits be investigated. -"
Chairman Mead also conferred
with Internal Revenue Commits
sioner Joseph D. Nunan. jr., and
Thomas N. McCabe, foreign liqui-
dation commissioner.
Mr.. Nunan, as we'll as w. H. Woolf,
chief of the Internal Revenue Bu-
(See WAR PROFITS, Page Ala
Revin Rnrk nt Daek