Evening star. [volume] (Washington, D.C.) 1854-1972, 1951-12-20

Representative King, Democrat,
Tox Seondol Methods Are SimiIor to
Those Of Teapot Dome Cose. Pose A. IS
Of California set a pm. meet
ing at which Mr.. Grunewald. a
friend of several present and for
mer Washington officials, was
subpoenaed to appear.
Mr.. Grunewald left a local hos
pital Monday night. While I'M
der treatment there he refused to
talk with members of the sub
committee and demanded a pub
lie hearing.
The subcommittee, however,
planned to question him first in a
closed meeting. Public hearings
of the investigators are scheduled
to resume later.
Other Developments Listed.
AS he was called before the sub
committee, there were these other
developments bearing on the in
vestigations of tax scandals:
l. Senator Monroney, Democrat,
Of Oklahoma said he would intro
duce in January bill to prohibit
any member of Congress inter-
fering in tax case pending before
the Bureau Of Internal Revenue.
2 The Oklahoma Senator said
his proposed measure also would
(a) place collectors of internal
revenue under civil service; ID re-
quire publication of any interven-
ton by a lawmaker in RFC loan
cases, and Co prohibit pensions
for any officials convicted of a
breach of trust.
3. H. j. Anslinger, commissioner
of the Treasury's Narcotics Blu
reau, disclosed that he had rec
commended prosecution of Lipe
Henslee, former Nashville (Tenn.)
revenue collector. on charges of
narcotics law violation. Mr.. Hens
lee resigned from Office October 10
and has charged he was being
made scapegoat in the tax scan
dalS.
Friend Of Oliphant.
In the Grunewald matter, the
House investigators have brought
out that he has been a friend of
Charles Oliphant. resigned chief
counsel of the Revenue Bureau,
and George j. Schoeneman. for
mer commissioner.
Mr.. Oliphant, In announcing his
resignation, released a financial
statement showing that Mr..
Grunewald was one Of several per-
sons he owed money. The amount
he listed was $1,000.
The former revenue counsel also
testified that Mr.. Grunewald in
quired about the status of the tax
case involving Abraham Teitel-
baum, wealthy Chicago attorney,
who has charged that he was the
victim of an attempted 100000
shakedown by two men-Frank
Nathan and Burt K. Master.
Says Bridges Represented.
Mr. Oliphant testified also that
Mr.. Grunewald once took an in
terest in another case and told
him he was representing Senator
Bridges, Republican, Of New
Hampshire in the matter.
The House investigators were
told by Mr.. Oliphant that Mr..
Grunewald asked him not to dis
close to the subcommittee the in
tereSt he had indicated in the
Teitelbaum case.
Mr.. Grunewald was a central
figure in the Senate District Com
mittee's investigation last year of
overlapping here. At the time
he described himself as q public
relations counsel and also as an
investigator. He maintains quar-
tiers at the Washington Hotel, has
an apartment in the Westchester
and homes in New Jersey and
Florida.
Wants Facts Known.
Senator Monroney, one of the
authors Of the 1916 Congressional
Reorganization Act, told reporters
he thinks members of Congress
would welcome a prohibitionI
against their interfering in any
tax matters except their own.
He said he believes any member
of Congress who feels he must
intercede for a constituent seek
ing an RFC loan ought to be will
ing to have that fact published in
the Federal Register.
Mr.. Anslinger said the recon-
mendation for prosecution of Mr..
Henslee was sent more than a
month ago to United States At
torney Ward Hudgins in Nashville,
in whose hands the case now rests.
The disclosure came as Revenue
Commissioner John B. Dunlap de-
clared Mr.. Henslee has admitted
narcotics purchases which Mr.