Evening star., 1951-10-16
bostonian Tells
OF $4,000 Paid
.ToCut u. ). Tax
House Inquiry Hears
Witness on DeuI'With
Indicted Collector
By Cecil HoIIond and
George Beveridee

A Boston wooden goods manu-
Ifacturer testified today that he
paid $4,000 in return for a prom
ise that his Federal tax liability
would be reduced from $4,000
Ito about $4,000" =
The testimony was given by
Maxwell Shapiro to House Ways
and Means subcommittee investi-
eating scandals in the Bureau of
Internal Revenue.
Mr.. Shapiro said the $4,000
was paid in two inStallments after
he had checked with Denis w
Delaney. former Boston collector
of internal revenue, and was told
that the men who called on him
about the matter were 20. k"
Delaney was indicted recently on
charges including the acceptance
Iof a bribe to influence his deci-
sions in the Shapiro case.
Finnegan's Brother Named.
Mr.. Shapiro said the payments
were made to Daniel Friedman of
the Estate Research Bureau, a
New York insurance and real es-
tate firm, after Mr.. Friedman
called on him in his Boston office
on April 81, 1949. He added that
Mr.. Friedman was accompanied
by a man introduced to him as
Hugh Finnegan. brother of James
P. Finnegan. former st. Louis COL
lector who also has been indicted
on bribery charges.
Another witness was Louis He'll
man. principal owner of the Acorn
Clothing Co. of Boston. He said
he employed by Mr.. Friedman in
June or July. 1949, on the recon-
mendation of Mr.. Shapiro, to help
him settle tax liabilities totaling
|about $4,000.
No settlement was ever worked
out, Mr.. Hellman testified, and
he paid the full amount of his
TAX liability last June.
Tells of Reinsurance.
The witness said that after get
ting several tax bills he tried to
Iget in touch with Mr.. Friedman
in New York and was always told
that he was out Of the office.
Mr.. Hellman said that MIR.
Friedman finally called him and
assured him that everything was
going to be all right" 1t was
after this conversation. the wit
ness continued. that he had his
accountant obtain the correct fig
ures on his liability and that he
had paid every cent of it,"
AS the days final witness,
Jerome Friedman. New York in
Iternal revenue agent, listed checks
paid to Delaney and the Finnegan
brothers by the Estate Research
Bureau, according to his investi-
CATION of the firms books. Jerome
Friedman is no relation to Daniel
Friedman. principal owner of Es-
tate Research.
Goes Over Checks.
The tax official said the books
showed three checks totaling So
600 were paid to James Finnegan
between May 2, 1949. and Febru-
airy 6, 1850: four checks for So, 500
each went to Denis w. Delaney or
the Denis w. Delaney Co. during
August and September 1949, and
three checks totaling $1,250 went
to Hugh Finnegan in May and
August 1949. The agent explained
that his investigation indicated
one of the three checks involving
Hugh Finnegan was made out to
Daniel Friedman and deposited to
the Finnegan account.
Mr.. Shapiro testified that the
two men called on him without ap-
pointment and said they wanted
to see him about IAN important
matter"
He added that they told him
they could "straighten out your
tax matter" The proposal, Mr..
Shapiro said, was made by Mr..
Friedman and that Finnegan
didn't open his mouth"
The witness said he inquired as
to how they knew about his tax
matters and was told they had
"just come from friend of yours
MIR. Delaney.
He added that Mr.. Friedman
(See REVENUE, Page A-7.)