Evening star., 1951-12-02
Justice Clark
Recalls Trip
with CaudIe
Didn't Know Owner
Of AirpIone Had Tax
Difficulties, He Says S

N'Nu'''SSs iiS SOyS
Supreme Court Justice Tom
Clark said last night that, while
attorney general. he made trips
with Theron Lamar Caudle In
the private airplane of Troy
Whitehead but did not know then
that Mr.. Whitehead was being
investigated by Federal tax off,
cials.
Activities and associations of
Mr.. Caudle. ousted two weeks ago
by President Truman as an as
sistant attorney general in charge
of prosecuting tax violators, are
due for further examination TO-
morrow by a House Ways and
Means subcommittee Mr.. Caudle
testified for four days last week
and is to return for more ques-
tioning at 10 am. tomorrow.
Justice Clark recalled that
he made three trips to Ocean
Drive Beach and Myrtle Beach,
S. c., and also to Atlantic City
with Mr.. Caudle in the plane
of Mr.. Whitehead. a Charlotte
IN. c. businessman. He explained
that he has been a friend of Mr..
Caudle for years and that Mr..
Caudle made the arrangements for
the trips. He added that either
Mrs. Clark or their daughter or
both accompanied him on the
trips.
Pilot Tells of Trips.
AS for the tax investigation of
Mr.. Whitehead at the time of the
flights in 1916 and 1947, Justice
Clark said he did not know about
it until he read recent newspaper
accounts.
Justice Clark, who has served
on the Supreme Court since 1949.
was mentioned earlier yesterday
in a Charlotte News interview
with Walter B. Mallonee. former
pilot Of Mr.. Whitehead's twin-en-
gined. eight-passenger plane. The
news story quoted Mr.. Mallonee
as saying he had taken the then
Attorney General Clark on two
pleasure jaunts" with Mr.. Cau-
die.
Mr.. Caudle told the House sub
committee last week that he had
made two flights to Florida as a
guest in the Whitehead plane at
time when Mr.. Whitehead was
under tax investigation. But the
former Justice Department Off
cial insisted he did not know then
that his host was having tax
difficulties.
Mr.. Caudle faced the prospect
of detailed questioning about the
handling of several important
cases while he headed the Justice
Departments Tax Division, and
whether he intervened at any
time to prevent prosecution OF
cases.
Record to Be Classified.
The investigators indicated they
would pursue further whether Mr..
Caudle and Charles Oliphant, gen.
eral counsel of the Bureau of In
ternal Revenue, agreed to drop
prosecution of a New York defend
ant on a tax fraud charge after
he had been indicted.
Both Mr.. Caudle and Mr.. Oil
phant. as we'll as Justice Depart
ment associates of the former
assistant attorney general, were
questioned about some phases Of
the case last week. Their combined
testimony left beclouded just what
action had been taken in the case
Iof Samuel Aaron, the defendant
in the case along with Jacob
F'reidus. Both were tried and con.
victed late in 1850.
Committee sources said records
had been obtained to clarity the
steps taken in the case by Mr..
Caudle and MIR. Oliphant and
these are expected to be presented
tomorrow.
Admits $4,000 Commission.
A memorandum from the Rev.
enue Bureau files was placed in
the record last week indicating
that Mr.. Caudle and Mr.. Oliphant
had agreed on no prosecution in
the Aaron case, for health reasons.
Ia few days before the defendant
went to trial in New York.
Mr.. Caudle acknowledged in his
testimony that he received a $4,000
commission on the sale of an air.
plane to Larry Knoll of New York.
"a private investigator for Aaron
and Freidus, at the time the tax
trials were pending.
He insisted, however, that he
(see REVENUE, Page A-4)