Evening star. [volume] (Washington, D.C.) 1854-1972, 1951-11-20
Resignation Of Bolich,
Third Top Tax Aide 10
Quit, Spurs Inquiry
By Cecil Holland

By Cecil Holland
Financial affairs of Daniel A..
Bolich, who has resigned as a top
official Of the standardized Bu-
reau of Internal Revenue. are be-
ing investigated by the House
Ways and Means subcommittee
inquiring into corruption in the
Federal tax-collecting system.
The investigation has been 60
ing on since August and the sub
committee, 1t was learned, has
obtained net worth statement
and other material bearing on
Mr.. Bolich's financial condition.
MIR. Bolich, the third high rev.
enue official to step out in recent
months, resigned yesterday, Civ
ing Ill health as the reason.
The resignation was announced
without comment by Revenue
Commissioner John B. Dunlap
after an unannounced closed
meeting with the House .subcom-
mittee headed by Representative
King. Democrat. of California.
After the announcement. Adrian
w. DeWind, the subcommittee
counsel, confirmed that Mr..
Bolich was under investigation by
the House group and the bureau
itself.
The investigation will con-
tinue," Mr.. DeWind said.
Other developments in the fast
spreading investigation of tax
scandals included:
/. The House subcommittee
continued closed hearings on
some Southern California tax
cases which have involved rumors
that Chairman King had sought
to influence their handling. Mr..
King disqualified himself from
taking part in the inquiry.
Detroit Disclosure Promised.
2. An official announcement by
the subcommittee and the bureau
was promised on an investigation.
now under way, Of the revenue
offices in Detroit. The nature of
the announcement was not dis
closed.
3. Snator Williams. Republican,
OF Delaware. conducting his own,
one-man inquiry into tax scandals.
disclosed that the Revenue Bureau,
reversing a previous policy. had
agreed to supply him with re-
quested information on tax cases
rather than send it to the Ser<.e
Finance Committee of which he
is a member.
4. Attorney General McGrath
designated Ellis N. Slack as act
ing head of the Justice Depart
ment's Tax Division. succeeding
temporarily Theron Lamar Caudle
who resigned last Friday at the
request OF President Truman. Mr..
Caudle is under investigation by
the House subcommittee and is
expected to testify at public hear
ings starting next Monday.
O'Gara Won't Be Fired.
5. Senator Williams also an
nounced that Attorney General
McGrath had assured him that
Charles O'Gara would not be fired
as an assistant United States at
torney in San Francisco for tell
ing Senators there was "a shock
ing system Of corruption in the
Internal Revenue Office there.
Commissioner Dunlap, in an
nouncing Mr.. Bolich's resignation.
made public this letter by the
Official: .,.E
In view Of my present physical
condition. I feel I shall be unable
to resume my official duties for a
considerable period of time. Under
the circumstances hereby tender
my resignation to become effective
Immediately"
Mr.. Bolich, 50. Joined the reve-
nue. service in 1922 at Cleveland
He was assistant commissioner
from September l, 1913, until
September 81 of this year. Then
he resigned from that position
attributing the move to i'll health
and was appointed to the bureau
management staff. This is a group
OF about 10 high-level policy ad-
ministrators.
Two Others Left Earlier.
Two other high officials in the
revenue bureaus headquarters
here have resigned in recent
months, giving reasons of Ill
health, were George j. Schoene-
man. as commissioner, and Carrall
E. Mealey as deputy commissioner
in charge of the Alcohol Tax Unit
They have been among the wave
OF designations, dismissals and