Evening star., 1951-10-14


and proposed to begin its investi- ,
cations by looking into what could
be done to see that such cl,arac-
ters paid full tax on their illegal
earnings.
But the revelations about corrup-
ton and irregularities within the
bureau setup switched the empha-
sis The subcommittee found itself
faced with the immediate necessity
of looking into these more serious
charges.
A preliminary survey by the SUBJ
committee indicated that most
cases of corruption and irregulari-
ties within the bureau occurred in
the field and involved collectors,
deputies and underlings.
That survey showed that criti-
cismS of the bureau included re-
ports Of taxpayers with an "in"
receiving unduly favorable treat
ment; that many bureau employees
received outside incomes, the par
ticulars of which often were not
explained; that there had been lit
tie supervision by the bureau over
matters in which the country's 64
collectors are involved; that gam
blers and racketeers were accorded
different and less exacting treat
ment than the ordinary taxpayer
receives, and that red tape, dupli-
cation of functions and inefficiency
prevailed within the bureau.
In more disturbing way, the
subcommittee learned that a num-
ber of bureau employees have been
living on a scale beyond anything
possible on their Government sala-
ries. Some of these matters have
been explored in closed sessions of
the subcommittee.
Shocking Revelations
What was turned up shocked the
subcommittee members. For ex-
ample, the subcommittee was told
by some agents that their usual
incomes were due to great pro-
ficiency at bridge and poker and
what Mr.. DeWind referred to at one
time in the recent public hearings
as IAN infallible system of win
ming on the horses"
The subcommittee, astonished by
such explanations of income, won
reluctant assent from the bureau
and Treasury Secretary Snyder for
circulation of a queStionnaire de-
signed to disclose the net worth of
most bureau employees, their sources
OF income, their holdings in securi-
ties and such matters.
Beset with the attacks on its in
tegrity, the bureau went further.
Tt sent out letters seeking to ascer-
tain which employees had outside
sources of income and announced,
somewhat belatedly, that since last
January there has been an "un-
derstanding" that collectors must
devote their full time to their du-
ties. ."1n many instances neglect
of duty and failure of integrity"
the subcommittee has already con-
cluded, may have been associated
with too extensive outside inter-
ests."
The subcommittee thus far has
held public hearings only on the
Olson case in New York and the
Finnegan case here.
It has scheduled hearings start
ing Tuesday into the Boston case in
which the former collector, De-
laney, is under indictment. In
those hearings it will explore fur
ther what Mr.. King has described
as indications of IAN organized plot
to corrupt collectors in several dis
tricts in various parts of the
country"
Finnegan, the former st. Louis
collector, figures in the Boston case
in an important way in what the
subcommittee suspects was an in
.surance scheme. not yet fully ex-
planned, involving the solicitation
of business from persons having
tax difficulties.
Finnegon's Brother
After the same que tion was
raised about the ST. Louis Office,
the hearings brought out that Fin
negan's brother Hugh, 48-year-old
Long Island IN. " resident, and a
New YORK insurance man, Daniel
Friedman. arranged interviews with
the Philadelphia collector and then
the Eoston collector.
They got brushoff in Philadel-
phia, but after their interview with
Delaney they saw Maxwell Shapiro,
a Boston woolen manufacturer, ard
obtained $4,000 worth of business.
The Delaney indictment charges
that the former collcctor received
$500 to influence his decision in a
tax claim against the WOODEN manu-
facturer. Strangely enough. both
the Finnegans received payments
from the New York insurance fl Il
shortly after it obtained the Shapi o
business, although both strongly
contend i. was for legal and other
services.
Testimony received by the SUBJ
committee also indicated that Fin