Evening star., 1951-10-20
Startling Expose Seen
As Tax Investigation
By House Is Widened

~ NA susSSssSNssVu
By House Is Widened
By Cecil HolIond
House investigators hinted to-
day at new and more startling dis
closures in their widening inves-
Itigation of scandals in the Bu-
reau Of Internal Revenue.
The hints were thrown out as
the House Ways and Means sub
committee headed by Representa-
tive King, Democrat, of California
began a weekend recess to pre-
pare for further public hearings
next week.
The subcommittee, investigating
the spreading scandals, has sched-
uled hearings Monday. Tuesday
and possibly Wednesday, It
planned to look further into the
scandals in the bureaus Boston
Office and then turn to a new
phase Of the inquiry.
This phase, it was indicated,
would involve irregularities in the
Governments tax collecting sys-
tenn even more sensational than
those already brought out regard
ing the refusal Of four New York
internal revenue agents to supply
statements showing their net
worth. Two of the fou ragents ac-
counted for incomes outside their
Government salaries with tb,
bizarre explanation of unusual
luck at trotting races in the New
York area, and the Belmont tracks
daily double.
Hits McGrath on Interference.
Other developments bearing on
the tax scandal investigation in
cluded:
l. Representative Bakewell, Re-
publican. Of Missouri accused At
torney General McGrath of having
sought to lSverfere in grand jury
Investigations of tax scandals in
ISt. Louis and San Francisco. He
introduced a resolution calling on
President Truman to fire the At
torney General.
2. Mr.. McGrath, who has heat
edly denied obstructing the in
quiries, and other Justice DEPART
ment officials conferred for sew
eral hours with Chairman King
and the subcommittee on giving
the subcommittee access to files
on tax cases.
3, The Bureau of Internal Reve-
nue. announced the suspension OF
three OF the New York agents who
refused to tell the committee their
net worth. The fourth was sus-
pended Thursday within an houl
after he appeared before the SUBJ
committee.
4. Undersecretary Of the Treas
Jury Foley, under whose general
supervision the bureau operates
was scheduled as a witness for the
subcommittee Monday hearing
1t was indicated he would be ques-
toned as to investigations made
by the Treasury in naming col
lectors.
In a statement accompanying
his resolution, Representative
Bakewell charged that the Attor.
ney General was unfit to hold the
position of the country's chief Law
enforcement officer. He asked the
House Judiciary Committee to in
vestigate the Justice Departments
action before Congress meets again
in January.
Asked about the Bakewen reso-
luton. Mr.. McGrath said: II am
sure the Congressman didn't know
the facts. Even a Republican
should be honorable enough tt
come around and get our side o.
the story"
Judge Asked to Name Cases.
He said he himself brought ur
the st. Louis matter during thu
conference yesterday afternoon
: with the King subcommittee. H,
. explained that Federal Judge
George H. Moore of st. Louis wa!
asked to name the cases so tina
the Justice Department might ex.
pedite those to be presented to &
grand jury. But. he added, Judge
Moore named no cases.
Mr.. McGrath said the cases hae
nothing to do with James P. Fin.
negan, former st. Louis collector
and friend of President Truman
He was indicted last week OF
charges Of bribery.
II can't see but that there wa
the best Of cooperation with tn,
Judge, the district attorney ane
> the grand jury" the Attorne!
General added.
/ Mr.. McGrath told reporters tina
co-operation between the Justic.
Department and the King sub.
committee had been explored a
the conference.
i Reports an Understanding.
II think we probably have al
!, understanding between us tina
!; will work out satisfactorily" h
J, added.
l He explained this understand
ing" concerned the subcommittee
access to department files "in :
| way so as not to jeopardize case
before the courts"
Chairman King refused, how
ever, to say whether the confer
ence was satisfactory" to him.
II would have liked it to hav,
been better as to committee acces
to Justice files" he remarked.
He reported the Attorney Cen
:. eral as saying he contemplated