Evening star., 1951-12-04
Reports to Caud|e on Tax Case
Were Stopped Because Of Leaks
Defendants Peyton Ford Says
Probe Will Turn
Charge of Big
Offer for Fix
By Cecil HoIIond

SC(u tIOltoHQ
Peyton Ford. former Deputy At.
torney General, told House inves
tigators today he ordered Theron
Lamar Caudle cut off from receiv.
ing reports on an Alabama ia,
fraud case because of leaks Of
information from the Justice De-
partment.
Mr.. Ford, who resigned in Au-
gust to enter private 1aW practice
here, acknowledged that his actor
was "unuSual-but not unique
and that it indicated a lack OF
confidence in Mr.. Caudle's discre-
ton ito some extent"
He testified before the House
Ways and Means subcommittee
investigating Mr.. Caudle's activ-
tiles as Assistant Attorney General
in charge of the tax division. Mr.
Caudel was fired more than two
weeks ago by President Truman.
Teitelbaum to Testify.
Mr.. Ford was called as witness
as the subcommittee sought to
clean up testimony yesterday indi-
eating that Mr.. Caudle and Repre-
sentative Boykin, Democrat of Ala
bama took IAN unusual" interest
In the Alabama tax case.
After hearing Mr.. Ford, the sub
committee planned to turn to a
new-and possibly sensational
matter-involving charge that a
large sum was solicited to fix an
other tax case.
Adrian w. De Wind, the sub
committees counsel, told report
erS the next witness would be
Abraham Teitelbaum, a wealthy
Chicago attorney. 1t was indi-
Gated that his testimony may
bring into the public hearing the
name of Frank Nathan of Pitts
burgh, said to be a friend of Mr..
Caudle'S and an associate with
him in some oil lease speculations.
Mr.. Ford said he cut Mr.. Caudle
out of the Alabama case after re-
ceiving reports that information
regarding what the Government
would do was reaching the de-
PENDANTS through "a Congress-
mans office"
Told Caudle of Instructions.
Il did not want to take any
chances of anything jeopardizing
the case" Mr. Ford said.
Under questioning, Mr.. Ford
said he was certain he talked
with Attorney General McGrath
about the matter and told him
what he had done. He was not
asked what was Mr.. McGrath's
reaction.
He said he told Mr.. Caudle that
he had instructed John H. Mitchell.
a Justice Department attorney
handling the case, to report di-
rectly to him. Asked what Mr..
Caudle's attitude about this
action was. Mr.. Ford replied:
i don't think he minded so
much. 1t took some heat off him."
Mr.. Ford said Mr.. Caudle was
under great pressure in the case.
When he talked with him. he
said Mr.. Caudle told him he would
be discreet and did not think he
had given any improper informa-
ton to Mr.. Boykin's office in
numerous calls about the case.
Transferred In June.
Mr.. Mitchell testified yesterday
that Mr.. Caudle refused to give
him any more work in the depart
ment after he had obtained in
dictments in the Alabama case.
MIR. Forld told the subcommittee
today that Mr.. Mitchell came to
him about this and that he as
signed the attorney to Kansas City
tax fraud cases.
He worked directly under Mr..
Ford until he was transferred last
June to the Justice Departments S
criminal division. He is now as
signed as special prosecutor in the
bribery case against Denis w. De-
laney, former Boston collector of
internal revenue.
Mr.. Caudle took the witness chair
late yesterday to deny, in strident
tones. that he sought to discourage
prosecution of the case about
which, he testified, Mr.. Boykin
telephoned him many times.
Il did want this case prose-
euted," he declared, land no one
can say I didn't"
Mr.. DeWind sharply countered
TINS contention, saying:
"On the record, Mr.. Caudle VOL,
never recommended prosecution
All you recommended was review
and evaluation of the case. Mr.
(See REVENUE, Page ABB