Evening star., 1951-12-09
Tax Shakedown
FigureGri||edin in
Secret Session
Probers Are Silent
On Testimony of
Bert K. Master
BY the Associotsd Press

by the Assoeoted Press
Bert K. Master of HOLLYWOOD.
Fla, a key figure in a sensational
$500,000 tax "shakedown" story,
was questioned yesterday by House
investigators behind closed doors.
Members of the Ways and
Means Subcommittee would not
divulge the nature of the testi-
mony given by the businessman
during several hours of question:
ing.
But Adrian W. DeWind, COM
mittee counsel. indicated that Mr..
Master would be called to testify
in public hearings this week.
Mr.. DeWind also ntimated that
Henry Grunewald, mystery
witness" in the case, will be ques-
toned early this week. Mr.. Grune-
Wald was served a subpoena Fri
day at Georgetown Hospital here.
Named BY Teltelbaum.
Abraham Teitelbaum, wealthy
Chicago lawyer who once repre-
Isented Al Capone, named Mr.. Mas
ter and Frank Nathan, Pittsburgh
and Miami promoter, as the men
who tried to get 100000 from him
to settle Mr.. Teitelbaum's tax Diff
flculties.
Mr.. Teitelbaum testified the
pair claimed to have influence
with Clique" of high Washing
ton officials looking for soft
touches" like himself. They
warned him of a prison sentence
if he ignored them. he said.
Both Mr.. Nathan and Mr..
Master have denied Mr.. Teitel-
baum's story of the alleged Shake
down" Mr.. Master in a statement
made in Florida and Mr.. Nathan
in sworn testimony before the in
vestigating subcommittee.
Mr.. Nathan called the story a
dirty lie"
Story Reportedly Denied.
Although committee members
refused comment on Mr.. Masters
secret testimony, he repeatedly de-
MED fatty the story told by Mr..
Teitelbaum.
Mr.. DeWind said the House sub
committee plans to adhere to its
present schedule of winding up
the current phases of public hear
lngs next Thursday and then re-
cesslng until January for public
sessions in San Francisco.
Caudle to Return.
Mondays lead-off witness is
scheduled to be Theron Lamar
Caudle, ousted recently by Presi-
dent Truman as Assistant At
torney General in charge of tax
law violations prosecutions. He
previously has testified at length.
Also scheduled to be heard this
week are Charles Oliphant, who
resigned last Wednesday as gen.
eral counsel for the Internal Reve-
nue. Bureau; Attorney General
McGrath; former Internal Reye-
nue. Commissioner George J,
Schoeneman, and Mr.. Grunewald,
The subcommittee received tes-
timony Friday that Representa-
tive Morrison. Democrat, of LOU
iSiana intervened in a tax evasion
case against two Washington
businessmen. The House member
said yesterday he did so only in
the interest of justice.
Morrison's Statement.
| r. D. Mclean. a former Justice
Department attorney, told the
committee that Mr.. Morrison
asked that there be no criminal
prosecution in the case on the
ground that there had been an
agreement not to prosecute if the
taxpayers volunteered all infor-
nation sought before formal in
vestigation.
In a statement issued through
his Office here, Mr.. Morrison said
that as a member of Congress he
had helped 26.651 people in vari-
Gus troubles with Government de-
partments." One of them, he
added. was Sidney Kolker, one of
the men involved in the tax case
and "a personal friend of mine !"
My only interest in the case
was to see that he received JUS
tlce," Mr.. Morrison said.
The subcommittee has not
called Mr.. Morrison as a witness
but has indicated a willingness to
hear him If he wishes to testify.