Evening star., 1951-10-04
u. ). Collector Paid
By Agency Insuring
Firms in Tax Trouble
WV washington, D. e.
THURSDAY, OCTOBER a, 1881
CONTINUED From First Page

WAN AAAAAA S44S GAAAA wac W 81
to Mr.. Finnegan" Out of his
dealings. however, Mr.. Clark said
he realized only about $870, when
his books showed he was due
$4,000.
Insurance Transaction Cited.
Asked about Mr.. BrodSky's
success. the witness cited one in
stance in which Mr.. BrodSky was
able to sell automobile insurance
to a firm II had been trying to
sell for years" The firm, he
added, always refused him be-
cause it had had it's policy with
another company for so long.
Mr.. Clark said Mr., Brodsky also
told him on occasions that Mr..
Finnegan was bleeding me white"
and that IF he doesn't get off my
neck I'm going to drop dead"
At one meeting with Mr.. Finne-
gan, however. Mr.. Clark said the
. former tax collector told him. "in
no uncertain terms he was not in
the insurance business. never was
and never would be and that he
merely received legal fees for serv-
ice to the agency
The second main witness, Don
D, Kelly. general agent of the
John Hancock Mutual Life InSur-
ance Co., told the subcommittee
he was asked by Mr.. Brodsky to
send to Mr.. Finnegan in Washing
ton a check for $700-repreSenting
advance commission on an insur-
ance policy which later was turned
down.
Sought to Get Policy.
Mr.. Kelly testified Mr.. BrodSky
was attempting to arrange
policy for an employe of the Valley
Steel Co. in st. Louis. Checks
totalling about $4,000 were forth
coming in this instance, represent |
ing paid-up premiums for a 10
year payment insurance policy,
Mr.. Kelly said.
The witness said he understood
the policy had been written for
minor official of the firm after
top executives had failed TO pass
physical examinations. He added
he understood the firm was having
tax troubles.
While the policy application was /
still pending. Mr.. Kelly declared.
Mr.. BrodSky asked him to send
a S700 check to Mr. Finnegan. /
When he refused, because no
commissions can be paid until ap-
proval of the policy. Mr.. Kelly
said. Mr. Brodsky asked him if he
would so advise Mr.. Finnegan by
letter.
Mr. Kelly said he wrote to Mr..
Finnegan at the Mayf1ower Hotel
here. but got the letter back I'M
opened a week later. The witness
said he destroyed the letter after
refusing to turn it over to Mr.. .
Brodsky
Mr.. Kelly told the subcommit- .
tee he wanted to have nothing to
do with the scheme after the in
cident of the requested payment
to Mr.. Finnegan.
Mr.. Finnegan, who resigned
last spring as a grand jury probe
into his Office got under way, also
was recalled as witness, as the
subcommitte pushed its inveSti- /.
cation into activities that Chair |
man King, Democrat, of Cali
fornia. said have shaken the
peoples confidence in the Gov
ernnent's tax collection agency. I
Mr.. Finnegan was an unan-
nounced witness late yesterday.
1t was brought out that he had
received payments totaling $3.50 .
during tWo-year period in 19489
from a st. Louis firm and an in
dividuaI who, the testimony indi-
Gated, were delinquent in their +.
tax payments.
Payments Called Legal Fees.
Under as biting and pointed
questioning as has been seen in
Capitol Investigations, Mr.. Finne-
gan, a short. forid and quick
tongued witness. insisted the pay
mentS represented legal fees en-
tirely apart from his duties as
the ST. Louis collector of internal
revenue.
Thirty seven year-old Adrian
w. A. DeWind. the subcommittee
counsel, making his Washington
bow in this capacity, also linked
Mr.. F'innegan's name to an appli-
cation for a Reconstruction FL
nance Corp. loan by a St. Louis
firm not previously mentioned in
connection with Senate inVeSti-
cation of RFC affairs involving
Mr. Finnegan and William M.
Boyle. jr., chairman of the Dem
ocratic National Committee.
Through Mr.. DeWind's oues-
tioning, it was brought out that
the payments to Mr.. Finnegan
and his part in an application for
an RFC loan we're made by the
Karol Kell Garment Co., Inc, of
St. Louis.
Mr.. Finnegan insisted, in the
face of repeated questioning, that
he had no connections with the
garment company and that any
payments he received were from
Samuel Abramovitz, a St. Louis
contractor who had an interest in I,
Karol Kell. Mr.. Finnegan con-
tended the payments were for
legal services to Mr.. AbramovitZ in
connection with real estate mat
tiers.
Two Others Also Testify.
Mr. Finnegan and two officials of
the st. Louis office of the bureau,
Louis Ligibel, deputy collector and
Henry Rathert, special agent-Were
under questioning during most of
the long afternoon session that be-
gan at 2 o'clock and ended shortly
before 6 o'clock with numerous
matters involving Mr.. Finnegan
still under dispute.
First Payment Set in 1948.
The TWO st. Louis tax officials
kaIJ tho e,,Ioonro m iffoa +bo ToroI |