Evening star., 1951-11-23
|Probers Still Await
Files on Tax Frauds
Dropped by Officials
By the Associated Press

Nations tax collection system to-
day neared the date scheduled 70,
hearings into tax fraud prosecu-
tions still lacking Justice Depart
ment files it has asked President
Truman to order turned over to it
With hearings, set for Monday
a spokesman for the subccmmit-
tee said failure to get department
records would hamper" the Ways
and Means subcommittee efforts
to learn why, as Chairman King
put it, cases were dropped at
higher levels" without prosecu-
ton.
After weeks OF negotiation with
Attorney General McGrath during
which it did not get the type of
access to Justice Department files
it wanted, the subcommittee ap-
pealed to Mr.. Truman. At Key
West, Fla, Presidential Press Sec
retary Joseph Short said its re-
quest is still under considera-
ton"
Detroit Shakeup in Prospect.
Elsewhere. this was the picture
/. An impending shakeup of
personnel in the Detroit Internal
Revenue Office repeatedly was in
prospect. Committee sources said
a number of Detroit employees were
expected to be reassigned. trans
ferred or suspended.
Senator Moody. Democrat, OF
Michigan. recently referred to the
group what he termed evidence OF
irregularities in the Detroit office
of the Internal Revenue Bureau
The bureau itself and the House
committee conducted investiga-
tions. An announcement relating
to the inquiry-set originally for
this weeks now expected nexI
Monday or Tuesday.
2. A special investigation is be-
ing made of J. Frank Wilcox, chief
of audits in the Oklahoma City
Office of the Collector of Internal
Revenue. Shortly after the Inter
nal Revenue Bureau made the an.
nouncement. Mr.. Wilcox's attor.
ney disclosed in Oklahoma City
that the audit chief had submit
ted his resignation November 6.
Was Indiscreet. Lawyer Says.
The nature of the investiga-
ton was not disclosed. But Charles
E. Dierker. attorney for Mr.. Will
cox, issued a statement saying: 81
believe Wilcox was quite indiscreet
In some instances, but I'm sure
he has done no real harm"
3. The House committee pre-
pared a formal report on its pre-
announcement Wednes-
day that it had found mot one
scrap of evidence" that its chair
man. Mr.. King. had intervened
improperly in three Southern Cali
1Ornla lax cases.
The committees finding on Mr..
King resulted from a three-day in
quiry, undertaken at Mr.. Kings
direction, into rumors that the
had exerted improper
influence in behalf of certain tax
payers. Mr.. King denounced the
as malicious in intent
and designed to embarrass the
committee. ....
With or without the Justice De-
partment files it wants. the COM
mittee says it is going ahead with
public hearings Monday. morning
+. Lamar Caudle. whom Mr.. Tru-
man ousted as head of the de-
partment Tax Division, is to be a
witness.
Wants Record of Action.
Adrian w. Dewind. chief COM
mittee counsel. told newsmen the
would be hampered
by lack of department records.
But he said it would not prevent
the hearings.
The committee already has
from the Internal Revenue Bureau
the complete records of more
than a dozen cases in which it is
These repeatedly are
cases referred to the Justice De-
partment for prosecution follow
ing bureau investigation.
What the committee wants Is
a record Of Justice Department
The department offered
it instead a synopsis of action in
cases but not the COM
plete files.
Chairman King discussed the
impasse by telephone with Mr.
Truman at Key West 10 days ago
Mr.. King said then he was salts
fed the President would grant the
request. Mr.. Truman later told
a news conference he had made
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