Evening star., 1951-10-05
Insurance Man Denies
Saying Tax Agent
Helped Get Clients
Continued From First Page.O

e~o~@J S@fSAA Ny 4SOAO4RIl IL 1ldl
mann. senior intelligence agent of
the bureaus ST. Louis Office, on
the same matter. He added that
If he had said anything like that
I'm correcting it now"
Then the witness continued:
Mr.. Finnegan at no time sup
piled me list of taxpayers who
had tax deficiencies or difficult
ties"
Earlier, Mr.. Brodsky had denied
emphatically that Mr.. Finnegan
was associated in a partnership
with him in the insurance agency.
Did Discuss Matter.
Mr.. BrodSky admitted, however
that he and Mr.. Finnegan, former
collector of internal revenue in St
Louis. had discussed the matter
OF partnership before the insur-
ance agency was established in
1948. He added that Mr.. Finne-
gan decided it would not be pos
sible for him to become associated
in the agency, and that he, Mr..
Brodsky, concluded that it Was
mot advisable"
The witness described previous
testimony linking Mr.. Finnegan
with his insurance agency as ''er-
roneous. false or misrepresenta-
ton of fact"
Under further questioning by
Mr.. DeWlnd, the witness said he
had made arrangements tor Mr..
Finnegan to act as his counsel for
$500 month as retainer fee.
MIR. BrodSky admitted under
questioning that he had made
payments to Mr.. Finnegan's wife
and son as well as to Mr.. Finne-
gan himself. Testimony was
given yesterday indicating that
Mr.. BrodSky'S business-the Dud-
mar Insurance Agency-had paid
Mr.. Finnegan and members of his
family more than $4,000 IN l949
and 1850.
"Not a Salesman"
Mr.. Brodsky bristled at one
point when Mr.. DeWind suggested
that it was somewhat unusual for
"an insurance salesman" to pay
a lawyer $500 a month as a re-
tainer fee. He quickly retorted
that he wanted it understood that
he was not "a salesman" but
headed his own agency, and had
statesmen working for him.
He suggested that Mr.. DeWind'S
question was for the purpose "of
casting an improper reflection" on
the payments.
The witness, however, was un-
able to give details about the pay
ments to Mr.. Finnegan, and said
he would have to consult my
records"
Earlier, he said he established
the insurance agency to deal in
all forms of insurance, but parti-
Cularly in the sale of life inSur-
ance. He said he planned to sell
to persons in the high income
brackets who were able to OBJ
tain bank financing for their
policies.
You're saying there was some
income tax angle to what you are
saying?" Mr.. DeWind suggested.
I'm not saying that at ALL" Mr..
Brodsky retorted.
The subcommittee, headed by
Representative King. Democrat, of
California. continued its investiga-
ton as the collectors Office in
Detroit was added to the list of
those having reported irregulari-
ties and demand was voiced for
Senate investigation also of the
Bureau Of Internal Revenue.
irregularities" Cited.
The demand for a Senate in
quiry in Detroit was made after
Senator Moody, Democrat, of
Michigan called public attention
to reports of serious irregulari-
ties" in the Office there. He also
submitted report from a Senate
subcommittee on a preliminary
inquiry that said new automo-
biles, deep freezers and commits
sions as finders" on scarce steel
were involved in complaints
against members of the bureaus
Detroit Office.
Senator Moody told the Senate
that the irregularities in the De-
troit Office had been uncovered
about a month ago and had been
partly checked by Senate Small
Business subcommittee which he
heads.
He said the subcommittee had
learned that two special intelli-
gence agents in the Detroit office
netted $1,100 each on a steel
transaction in 1913. He identified
them as Joseph j. Weyn and
Frank eastman.
Senator Moody said that Mr..
eastman located 100 tons of
waste steel in a Hamtramck
(Mich) tool shop and that Mr.
Weyn passed this information on
to Herman Golanty, steel dealer
Then, Senator Moody added, Mr.
Golanty sold the steel and paid
a finders fee to the two revenue
bureau employees.
Statements Included.
The Moody report also included
statements involving Henry R
Sunball, chief of the Detroit
Offices intelligence unit and MI
Weyn'S superior.
Mr.. Sunball, it was said
bought a freezer through Mr.
Golanty in May, 1851, paying
$129.78 for model that sold al
retail for $21995 and at wholesale
for $148.24. 1t also was said tha
Mr. Sunball obtained a new auto
mobile early in 1851 through tn,
efforts of Detroit attorney rep
resenting company currentl,
under investigation by the intel
ligence unit for tax fraud.
Senator Moody's report Saic
DANCING.