Evening star., 1951-03-27
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the idea of the committee contin-
uing its inquiries.
'If your work is continued" the
Secretary's statement added. you
may count on the Treasury giving
you it's fullest cooperation"
The statement from Mr.. Snyder,
who is recovering from an eye op-
Grafton. was presented by Under
secretary of the Treasury Edward
Foley.
He said he called the commit
tees attention to the Treasury's
action in creating a special fraud
section with expert personnel that
will center its attention on the
tax account of gamblers, rack
eteers, and others of their kind"
The announcement of the crea-
tion of this special fraud section
was announced by the Treasury a
Few days ago.
$500 Under Investigation.
George J. Schoeneman. COM
missioner of internal revenue, told
the committee that about $500
persons identified with rackets
and gambling are under active
investigation by the bureaus in
telligence unit. He pointed out
that this list and other detailed
facts on the records of those in
the hoodlum class had been sub
mitted to the committee.
: Mr.. Schoeneman added that
special agents had conducted
1,671 investigations of individuals
involved in gambling activities, as
well as bootleggers, corrupt Off
cials and others associated with
the underworld.
These Investigations. he added,
have resulted in 248 indictments
and additional tax assessments
against those concerned of nearly
$129 million.
Committee members took the
Bureau of Internal Revenue to
task for allowing mobsters and
others in the underworld fringe to
get away with listing their sources
Of income on their tax returns
simply as miscellaneous. ""horses"
and such other words. They
noted par ticularly that Jacob
(Greasy Thumb) Guzik, Chicago
Capone gangster. had listed in
come totaling 100000 from mis-
cellaneous sources"
Mr.. Foley said the bureau had
exhausted every possible means to
obtain full disclosure in the Guzik
case.
Tobey Cites Pattern of Returns.
Senator Tobey, Republican, of
New Hampshire interrupted to say
that the committee had found
pattern of such returns from mob
sters in its inquiries throughout
the country.
"I think it would arouse such a
sense of indignation among the
bureau agents." Senator Tobey
added. "that they would call these
hoodlums in and put them on the
carpet"
Senator Kefauver said he
thought the special tax fraud unit
set up within the bureau would
go a long way toward correcting
such conditions.
Senator Wiley. Republican, of
Wisconsin called attention toI
some West Coast scandals involv-
ing some Bureau of Internal
Revenue employees and said he
was suggesting a rowing force be
set up within the bureau to check
on the operations of the person.
mel. However, Mr.. Schoeneman
said he thought such work could
best be done by the special agent
in charge of particular Offices of
the bureau.
Dwight E. Avis, assistant dep
uty commissioner of the Treasurys
Alcohol Tax Unit. told the Com
mittee that interstate transporta-
tion of tax-paid liquor into dry
States was "a racket"
MI. Avis, who is in charge of
the units enforcement work, in
dorsed a pending bill in Congress
to require annual renewal of LIQUOR
permits.
Suggestions Are Outlined.
From the Snyder statement and
the testimony of other Treasury
officials these suggestions were Of
fered for strengthening enforce
ment weapons against gamblers
and racketeers:
!. Increased prison sentences
for narcotic traffiickers beyond the