Evening star., 1951-10-06


Martin Brodsky, st. Louis insur-
ance agent. indicated I'VE are
dealing here with what may be
deliberate untruths."
Denies Boston Incident.
3. Hugh Finnegan denied ever
telling Boston wooden manufac-
turer that his brother James
would be named commissioner of
internal revenue, replacing George
j. Schoeneman. and that he would
permit the manufacturers tax
difficulties to be adjusted. The
House investigators indicated they
would explore fully whether Mr..
Finnegan was seriously consid-
erred for the position of commits
Sioner from which Mr.. Schoene-
man resigned two months ago.
4. The subcommittee chairman
announced that Francis r. Smith,
the Philadelphia collector, will tes-
.tify Tuesday. Mr.. King stressed,
however. that "all that we have
heard indicates that Collector
Smith conducted himself with
great discretion and propriety."
S. Senator Moody, Democrat, of
Michigan said a report on alleged
irregularities in the bureaus De-
troit office, including the handling
of $558,000 income tax, would be
turned over to the House Subcom-
mittee for investigation.
Testimony involving the Boston
office and Philadelphia offices was
developed while Hugh Finnegan
was in the witness chair.
1t followed lengthy and con-
f1icting testimony on whether
James Finnegan had been con-
nected with the st. Louis insur-
Iance agency headed by Mr.. Brod-
sky and whether he had supplied
Mr.. Brodsky with a list of delin-
Iquent taxpayers as prospective
clients.
Hugh Finnegan Admits Calls.
Under rigorous questioning by
Adrian w. DeWind, the subcom-
mlttees 37-year-old chief counsel.
Hugh Finnegan admitted calling
on both the Boston and Philadel-
phia collectors of revenue with
Daniel Friedman Of New York
real estate firm by the name of
Estate Research Bureau.
He testified that his brother
James called Mr.. Smith and asked
the Philadelphia collector if he
would grant us an appointment. .
AS for the call on the Boston COL
lector, Mr.. Finnegan said he called
directly and did not mention the
matter to his brother in st. Louis
He testified that the calls were
made in April. 1949, but he re-
mained vague about what was dis
Icussed. except that it was 'insur-
ance matters"
Isn't it a fact" asked Mr.. De
Wind, that shortly after this trir
to Boston, the Estate Research
Bureau paid Mr.. Delaney S2.500
and you and your brother, 81. .5OO?'
/ Il wouldn't know what Mr.. De-
laney received" Mr.. Finnegan re-
piled. He added that money he
had received from the real estate
firm included 81 900 as an advance
and $3.50 for expenses for thu
Hydroplane Corp, of which ht
was president. He explained thi,
was for the company to get or.
ganized in return for possible in.
surance business later.
Claims Legal Fee.
| Under questioning, both tn,
iFinnegan brothers said the,
thought they had received check
from state Research in May. 1949
But both insisted the payment
were in connection with the Hy
droplane Corp. in which they sait
owners of Estate Research owned
stock. James Finnegan said hi
;heck was for acting as legal coun
sci of Hydroplane Corp.
! Under questioning by Mr.. D
WIND. the witness, who said h
had retired from the theater busi
ness because of heart trouble. ac
4 knowledged he had made tw
other trips to Boston. On one @
8 them, it was brought out, he an
s Mr.. Friedman saw Mr.. Delaney
: the formercollector, for only
t few seconds as Mr.. Delaney wa
engaged in church drive.
On another trip to Boston, M,
i. Flnnegan said he went over wit
= Mr.. Friedman to try to sell som
E insurance" to Maxwell Shapiro
E president Of the Maxwell Shapir
: Woolen Co.
!, Mr.. Finnegan said that Nj
8 Friedman explained his insuranc
; proposal to Mr.. Shapiro but tha
/; he, Hugh Finnegan, did not un
!. derstand it.
Don't you recall that you sal
fIyour brother was about to be
l come commissioner of interns
l. revenue, replacing Mr.. Schoene
lgg man?" Mr.. De Wind asked.
q Denies Statement on Brother.
! Hugh Finnegan denied maxim
In Iie the statement, and Mr.. De Win
t. continued:
~ - You definitely deny maxim
that statement?"
t. Il definitely deny it, Mr.. Fir
i;eeInegan replied.
ii There is no doubt about it?
= Mr.. De Wind pressed.
There's no doubt about it
lg the witness said.
i He added that Mr.. Shapiro &C
T. cepted the insurance prouossl fte