Evening star., 1951-10-14
Internal Revenue Scandal May Be Hot POTATO in 1852


flung tax gathering Offices?
A House Ways and Means sub
committee headed by Representa-
tive King, Democrat, of California,
has faced up to that question In
series of public hearings that are
expected to continue intermittently
well into next year.
With two internal revenue COL
lectors already under indictment on
bribery charges, with another sus-
pended on charges Of inefflciency
and with reports of unsavory con-
ditions in bureau Offices pouring in
from San Francisco to Boston, the
truth, it was admitted by all, needed
to be ascertained.
In a comparative sense, the Gov
ernment could stand scandals in
other bureaus. The RFC might be
accused of Irregularities; there
might be five-percenters stalking
the halls of other agencies; else
where. outright thievery might
prevail.
But when it came to the Bureau
Of Internal Revenue, that was a
different matter. This was some
thing that struck at the very core
of the whole moral fiber of the
Government; something that con-
cerned every one in a personal way.
This was something like a scandal
In the FBI.
Chairman King, expressing the
feelings of many who have followed
the growing list Of reported scam
dals In the tax Offices. said that
public confidence has been shaken
by indications of corruption and
inefficiency" within the bureau.
"The foundation stone of our Amer
ican tax SYSTEM" he added, "is the
belief of the American taxpayer in
the integrity of those who admin
lister the system"
Citizens Right
Mr.. Kings point was that today
Americans, who are being billed
for the heaviest taxes in the Ma
tion's history, have the right to
expect utterly fair and dispassion-
ate execution OF tax laws. But the
King Committees findings have
touched 80 many Offices Of the
Internal Revenue Bureau, and have
turned up so many questionable
instances, that the public Is en-
titled to hold serious doubts about
the whole tax setup.
Complaints already have in
volved seven Of the largest collec-
ton districts in the country-San
Francisco, st. Louis, Kansas City,
Detroit, New York, Newark and
Boston.
The former Boston collector,
Denis w. Delaney, was indicted
several weeks ago. A bribery in
dictment was returned only last
Friday against the former st. Louis
collector, James P. Finnegan. This
ruddy-faced, fast-talking friend Of
President Truman figured promi-
nently In the House subcommittee's
recent hearings here. Indictments
have been returned or are under
consideration against lesser officials
In some Of the Offices.
And that is not all. "This is only
the beginning" one official said
wryly.
Mr.. King said his subcommittee
is looking into the affairs" Of
"two or three other collectors"
Another report said the bureau it
self, working closely with the House
investigators, is checking on five
or six other offices"
What those inquiries would turn
up was anyone's guess. Subcom-
mittee members expressed shock at
Finnegan's testimony that he spent,
at most, only few hours a day in
his Office, and that he conducted on
the side, q lucrative law practice
that included, curiously enough,
several clients having tax difficult
ties and others seeking RFC loans
or having some sort OF business
with the Government.
More coses Hinted
Asked If other Offices might turn
up patterns similar to those re-
vealed in the Finnegan hearings,
Mr.. King said, Don't be too sur
prised."
Whatever the extent of corrup-
tion, there apparently is no evi-
dence that the Richmond and
Baltimore ofices-to which Wash
ington area taxpayers send their
returns-are involved.
Whether the irregularities might
extend into the bureaus Washing
ton headquarters was left hanging.
To such a question, Adrian w. De
Wind, the subcommittee 37-year-
old, hard-hitting chief counsel,
replied:
"It's too early to say"
But Mr.. King interposed, "It's a
little bit too early"
Mr.. DeWind, who learned the
ins-and-outs of Washington while
serving as the Treasury's tax legis-