Evening star., 1951-10-10
Snyder Tells Probers
He Advised Finneqan
To Quit Tax Post
By Cecil HolIond and
George Beveridqe


der testified before House investi-
gators today that he advised j. P
Finnegan in August of last year to
resign as Collector of Internal
Revenue because of general ru-
mors around st. Louis"
He said he made the same sug-
gestion in October. 1850, and that
the Commissioner of Internal
Revenue at the time, George j,
Schoeneman, followed it up "a
number of times with Mr.. Fin
negan.
Mr.. Snyder said he knew moth
ing about any advice to Mr.. Fin
negan to continue in Office and
added that it was his recollection
the st. Louis collector of internal
revenue had said he would resign
when the matter was discussed
with him year ago last August.
Urged to Stay on, He Says.
Mr.. Finnegan, who submitted
his resignation last spring, some
seven months after Mr.. Snyder
said he had suggested it, testified
yesterday that he tried three times
to resign-once in 1949 and twice
last year-and the White House
advised him to stay on. He said
the third time he sought to quit
he talked with President Truman
and the Presidents secretary,
Matthew Connally, at the White
House and was told to continue
in Office.
Mr.. Finnegan's activities as st
Louis collector are being scruti-
nized by a House Ways and Means
subcommittee as a part of an
overall investigation of reported
scandals and irregularities in the
Bureau of Internal Revenue.
Other high points of Mr.. Sny-
der's testimony included:
/. The secretary said he was
sure that at some time before Mr..
Finnegan'S resignation came in
the matter was thoroughly dis
cussed with President Truman.
Agrees on QUESTIONABLE.
2. Mr.. Snyder agreed to adopt
a subcommittee proposal for
circulating a financial question:
naire as a further check on most
employees of the bureau. The
QUESTIONABLE would produce in
formation on an employees sources
OF income outside Government
pay. security and other holdings
and similar matters.
8. Mr.. Snyder disclosed that
since last January l there has
been an understanding that per-
sons appointed as collectors of
internal revenue must devote
their full time to the Office instead
of engaging. as Mr.. Finnegan did,
in various outside activities.
4. The Secretary said that 'late-
ly we've been going very thor
oughly" into the matter of ability
and experience as well as char
acter and honesty of persons be-
ing considered for appointment
as collectors.
5. Bureau officials promised a
quick report to the subcommittee
after Representative Curtis, Re-
publican, of Nebraska said that q
number of lawyers and account-
ants disbarred from practice else
where, and some convicted of fell
onies, were still being carried on
the roll of attorneys permitted
to practice before the Treasury
Department.
6. Chairman King, Democrat,
Of California announced at the
conclusion of Mr. Snyder's testi-
nony that the subcommittee will
hold exhaustive hearings" in
connection with the bureaus San
Francisco Office. where the collec-
tor and several other employees
have been suspended. He asked
Mr.. Snyder to provide complete
report" on that situation, and the
Secretary said a deputy commits
sioner was now conducting an
investigation there and will testify
when he returns to Washington.
40 Answers Received.
7. Bureau officials disclosed they
recently sent letters to all COL
lectors and revenue agents in
charge of Offices throughout the
country asking information about
outside activities. Mr.. Snyder
said 40 answers have been re-
ceived and $50 are still outstand-
ing.
Mr.. Snyder's comment regard
ing the Finnegan resignation was
made as he was pressed for COM
ment about the outside activities
of the former St. Louis collector.
Chairman King said the commit
tee was shocked" and he felt
sure the people in the country
would be shocked, too, by Mr..
Finnegan's statements that he
spent only two or three hours
day in his Office and carried on
extensive outside interests.
The secretary's statement that
he had advised Mr.. Finnegan to
resign was made in reply to ques-
tons by Representative Kean, Re-
publican, of New Jersey, and Mr..
Curtis.
Mr.. Snyder said that Mr.. Finne-
gan had first discussed the reSig-
nation with former Commissioner
Schoeneman, and then came to
his Office.
why did you ask him to re-
sign !" Mr.. Kean asked.
Rumors Circulated.
Because of general rumors
around st. Louis" Mr.. Snyder
replied. adding that this was be-
fore I'VE had received a report of
an investigation.
Mr.. Kean inquired if resigna-
tions were suggested purely on the
basis of general rumors."
Mr.. Snyder replied that it
seemed sufficiently important" to
suggest the resignation because
those rumors were of a persist
ent nature.
Mr.. Snyder said an investiga-