Evening star., 1951-11-29
CaudIe Admits
Getting $4,000
lin P|aneDea|
Paid Fee by Friend
For Helping Sell Croft
To Tax Investigator
BY Cecil Holland
and George Beveridqe

Theron Lamar Caudle acknowl-
edged today that while chief of
the Justice Departments Tax Di-
vision he accepted a $4,000 COM
mission on the sale of an airplane
to an investigator for two New
York men later convicted in a tax
fraud case.
Mr.. Caudle testified he dis
cuSsed with Attorney General Nc
More Firnes Expected in InternoI Revenue
bureou Shokeup. Poee AS
Grath the propriety of accepting
the commission. He quoted Mr..
McGrath as telling him:
I don't see any objections to
you accepting the commission.
Mr.. Caudle, ousted two weeks
ago by President Truman as AS
sistant Attorney General, gave
the testimony before a House
Ways and Means Subcommittee
investigating tax scandals.
Obtained Delay in Trial.
A Justice Department memo
randum was introduced to show
that Mr.. Caudle interviewed in
the case to obtain a delay in the
trial after it had been sent to
United States Attorney Irving
Saypol in New York for prosecu-
ton and the defendants had been
indicted.
With Mr.. Caudle as the witness
for the fourth straight day. the
subcommittee headed by Repre-
sentative King, Democrat, of Cali
fornla turned to the airplane deal
after receiving a maze of testi-
mony yesterday including the
story OF the purchase by Mrs
Caudle and others prominent
here OF fur coats at cut-rate prices
Under searching questions by
Adrian w. De Wind, subcommit-
tee counsel, Mr.. Caudle revealed
the way in which he acted as a
sort OF broker in the airplane sale
while holding one of the most re-
sponsible top positions in the JUS
tlce Department as head Of the
division charged with prosecuting
tax violators.
He said the plane-a Lockheed
Lodestar-was sold by a friend of
his. w. A. Stonnel, to a man iden-
titled as Larry Knoll, a New York
resident and investigator for the
two defendants in the tax fraud
case.
Linked to Embezzlement,
| Knoll was formally identified
on the record as having criminal
record in a New York embezzle-
ment case. A memorandum from
Mr.. Saypol's files was introduced
and referred to him as a shady
character"
Mr.. Caudle testified that he met
Knoll when Knoll came to see
him at a Justice Department con-
ference about the tax case. In
involved two defendants identified
as Samuel Aaron and Jacob Erie
dus, who were indicted February
rs, 1949. on tax fraud charges.
The former Justice official said
Knoll called him from "out in
Kansas" one night and asked his
help in finding an airplane he
could purchase since he was in
the oil business and was handi-
capped in trying to travel by COM
mercial lines.
The witness related that Mr..
Stonnel had the Lockheed plane
for sale-"a very beautiful ship"
and had asked him to let him
know If he knew of any one who
might purchase it.
Consulted McGrath.
The sale was carried out and.
Mr.. Caudle testified, Mr.. and Mrs.
Stonnel came to his house one
afternoon and brought him a
|check for $4,000. He said the sale
price of the airplane was $4,000.
Mr.. Caudle testified that he
told his wife that he was going
to see Attorney General McGrath
"and tell him about it" before ac-
cepting the check.
He added that he went to Mr..
McGrath's home.
II asked him if he thought it
would be improper for me to &C
(See CAUDLE, Page A-5.)