Evening star., 1951-11-30
Revenue
Continued From First Page

of the New York tax fraue
defendants. should not be prose,
cuted because of his poor health
although his trial was Sc
for only a few days later. And
according to the documents, the
alleged agreement was dated only
a few weeks after Mr.. Caudle re.
ceived his $4,000 commission.
In his statement on the lengthy
investigation, Chairman King
declared:
Il want to call to the attention
of the Attorney General that here
is an important case with appar-
emily irregular activity on the part
OF the Department of Justice only
year ago.
Three Have No Recollection.
Three important Justice off.
cials involved state that they have
no recollection of the matter. One
states he would not have acted as
he did but for instructions giver
him by one of the other two. The
chief counsel of the Bureau OF
Internal Revenue is involved and
he also states he has no recollec-
ton.
There is $1,000 payment tc
one of the Justice officialS-DaiC id
under circumstances apparently
involving a defendant in the
criminal proceedings-the accept
ance of which payment the Attor-
ney General approved"
Mr.. Caudle testified he got his
commission after Larry Knoll of
New York. described as the in
veStlgator for the tax fraud de-
PENDANTS. bought a tWin-engined
plane for $4,000 from a friend of
Mr.. Caudle. He said he accepted
the $4,000 check only after clear
ing with Mr.. McGrath.
McGrath Explains.
Later in the day, the Attorney
General gave reporters his own
version of the Clearance:
Mr.. ,Caudle came to my home
one evening ostensibly to tell me
that he was going to New York
for a few days.
During the brief conversation
We had, he told me he had re-
ceived a check for $4,000. as a
commission on the sale Of an air
plane for a friend of his.
He told me that Mr.. (W. A.
Stonnell. the seller, who paid him
the commission. was a fine man
and very close to him.
Il asked Mr.. Caudle if the Gov
ernment was involved in any way
or at any time with the plane
and also whether the parties to
the sale were involved with the
Government in any way. and es-
pecially with the Department Of
Justice. He assured me that the
Government had no connection
with the plane and the parties to
the sale were not involved with
the Government.
Relied on Integrity.
"On the basis of this assur-
ance, told him that it would
not appear that there was any
reason for me to question his ac-
ceptance of the commission.
had never heard of these persons,
so what I told Mr.. Caudle was
based on what he had told me
and in reliance on my confidence
at that time in his integrity.
Il would like to point out that
the records of the Department OF
Justice with relation to the Aaron
Friedus Jacob Friedus) cases
now mentioned in the testimony
show that these cases were prose-
cuted to conviction and substantial
jail sentences and fines were i'm
posed upon the defendants. In
the Aaron case. the sentence was
two years imprisonment on each
OF three counts concurrently, and
a fine of 100000: in the Friedus
case. the defendant received q
sentence of four years on each OF
four counts concurrently, and a
fine of $4,000"
During the hearing, Mr.. De
Wind, at one point. accused Mr.
Caudle of "engineering at least
three delays" in the Erie
dus trial, resulting in its post
ponement from March until Oc-
tober 9, 1850.