Evening star., 1951-12-08
GrunewaIdLinks
To Ex-0fficiia|s
Will BeProbed
Oliphont Permitted
Big Case to Lopse,
Tax Inquiry Told
By Cecil HoIIond

House investigators MADE plans
today to explore fully the associa-
tions of two former high Govern
ment tax officials with Henry
Grunewald, mysterious Washing
ton figure whose name has cropped
up in the inquiry into spreading
tax scandals.
Mr.. Grunewald, known as "the
Dutchman." was located in George
town Hospital late yesterday after
being sought for two days. He
was served with a subpoena issued
by the House Ways and Means
subcommittee trying to untangle
conflicting stories about an alleged
100000 attempted tax shakedown.
Representative King. Democrat.
of California, the subcommittee
chairman, told reporters the House
group wishes to question the mys-
terious Mr.. Grunewald about his
relations with George J. Schoene-
man, who retired last summer as
commissioner of Internal Revenue,
and with Charles Oliphant. who
resigned three days ago as the
bureaus general counsel.
At Least 80 Visits Listed.
Mr.. King said the records of
Mr.. Schoeneman's Office, obtained
by the subcommittee investiga-
tors, showed that Mr.. Grunewald
was a frequent visitor there. More
than 80 calls were said to be listed.
Mr.. Oliphant, when he resigned,
released a statement showing his
financial worth and listing Mr..
Grunewald as one to whom he
owes $1,000.
The House subcommittee was
in a weekend recess from public
hearings after these fast breaking
developments in its investigation
of tax scandals:
!. A Justice Department lawyer
testified that Mr.. Oliphant played
a part in permitting the statute
of limitations to run out in a
$181 900 tax case against two local
business firms-the Washington
Beef & Provision Co. and the Witt
Co.-and their operators, Samuel
and Sidney Kolker.
House Member Intervenes.
2. Representative Morrison,
Democrat, of Louisiana was rep
resented as having interviewed in
the Kolker case in something of
the function "of a defense coun-
sel' and wrote Supreme Court
Justice Tom Clark, then the At
torney General, urging that tax
fraud prosecution against the two
Washington men be dropped.
In a statement issued through
his Office here. Mr.. Morrison COM
mented that "as Congressman, I
have helped 26,65l people in vari-
Gus troubles with Government de-
partments." and added that one
of them was one of the men in
volved in this tax case, Sidney
Kolker, "a personal friend of
mine"
MY only interest in the case
was to see that he received JUS
tice." Mr.. Morrison said.
Caudle to Testify Monday.
3 AHeveaue Bureau official tes-
tilted about an income fraud case
involving Abraham Teitelbaum,
wealthy Chicago attorney, and an
unusual" interest Mr.. Oliphant
took in the case. Testimony was
that Mr.. Oliphant halted a move
to send the record in the case to
the field for further consideration
and that Mr.. Grunewald had tele-
phoned him about it. Mr.. Teitle-
baum previously had testified that
his case was speeded up out of
normal channels after he had re-
jected a demand for $500,000 by
two men he said claimed to have
connections with a Washington
Clique" seeking soft touches"
4. Chairman King announced
Theron Lamar Caudle, ousted
three weeks ago by President Tru-
man as chief of the Justice De-
partment's tax division which
handles fraud prosecutions, would
be the witness when the subcom-
mittee resumes public hearings at
1890 am. Monday.
S. The subcommittee scheduled
Attorney General McGrath as the
(See REVENUE paoe A-sb