Milford chronicle., 1951-12-14
Rep. Gale Boggs Gives
Washington Lou Dovrl

COhen's law firm, on which she still
owes $500. Cohen disclosed fur
Their that he gave a 5000 television
set to Caudle for Christmas in 1948.
November 29-Caudle told the
Subcommittee how he had obtained
a $4,000 commission on the sale of
an airplane in September 1850 to
Larry Knoll, a friend of Samuel
Aaron and Jacob Friedus, whom
the Government cOntended owed
$218,000 in back taxes, penalties
and interest. Caudle said accep-
lance Of the commission had been
approved by his boss, Attorney
General J. Howard McGrath. The
Subcommittee tried to trace an ap-
parent effort by CaIdle and Charles
Oliphant, chief counsel for the
Bureau of Internal Revenue, to
discourage prosecution of Aaron on
the ground that he was suffering
from a serious heart ailment. The
trial of Aaron and Friedus was de-
layed for almost two years, when
they were convicted and sent to
prison in October 1850. The Sub
committee heard Caudle, Oliphant,
Turner Smith and Meyer Roth
wacks, chief of the Criminal Sec
ton of the Tax Division, all Of
whom suffered an extraordinary
loss of memory. subcommittee
Chairman Cecil r. King, Democrat
of California, scored the officials
for their inability to recall evil
dence of only one year ago." and
said there had been apparently
irregular activities on the part of
the Department of Justice"
December walter B. Mallon-
nee, former pilot of the eight-pass-
enger plane belonging to Troy
Whitehead, Charlotte, N. C. BUSH
nesslnan, said Supreme Court Jus
tice Tom Clark had accompanied
Caudle on two pleasure jaunts"
aboard the plane in 1916. At that
time Clark was Attorney General
and, according to the Charlotte
News, Whitehead was under a Fed
eral tax investigation. Clark COM
mented in Washington that he
could have made three trips with
Caudle in Whitehead's plane, and
said he had been a friend of Caudle
for years. Clark said he remember
ed flying in Whitehead's plane to
Ocean Beach Drive, and Myrtle
Beach, S. c., and to Atlantic City,
N. ].
December 3-John H. Mitchell, a
Department of Justice prosecutor,
said that Caudle snubbed him and
gave him no more work to do after
he obtained indictments in an Ala
bama tax case. The case involved
a 100000 tax claim against the
Gulf Coast Tobacco Co. of Mobile,
Ala, and the four partners, Mr.. and
Mrs. Joseph Mitchell and Mr.. and
Mrs. Samuel ]. Rips. John Nit
chell told what the Washington
Post described as "a fantastic story
of acknowledgements maneTvering
to discourage prosecution After
indictments were obtained in Feb
ruary 1850, Mitchell was given no
further assignments by Caudle, his
then boss, and was denied access
to Caudle's Office. Mitchell has
since transferred to the Criminal
Division of the Department of JUS
tice.
IS 81 TAX OFFICIALS DIS
MISSED, BUT ONLY 5 FACE
PROSECUTION: The widely her
aided (clean-up) of the Bureau OF
. Internal Revenue occurred NOvem-
Der 2S, with the firing of 10 tax
employees and the requested res
+ ignation of IL others.
The highest official Ousted was
San Francisco collector James G
Smyth, "fOr failure to manage his
Office properly The others in.
cluded a variety of underlings. The
tax Offices affected we're San Fran
cisco, Los Angeles. San Rafael, Cal
ifOrnia: New York City, Newark
N. j.; Boston, Springfield, ILL.,; Har.
risOn, Ark: Fargo, N. D.; Denver
! Syracuse, N. y; st. Louis, Phila
delphia, Baltimore, Detroit ant
Nashville. Tenn. No one in thu
Washington headquarters was
touched.
A spokesman for the Civil Ser
vice Commission said all the free
or resigned employees would b,
eligible for normal pension bene
fits, despite the circumstances an
der which they left the Fedora
service. AS for getting new job
with other Federal agencies, tn,
spokesman said each case wOulC
be decided on it's merits. The mer
fact that a person had been fire,
by the Bureau of Internal Revenue
would not necessarily make him in
eligible for another job, the spOkes
man said.
Charges against the 81 employ
ees ranged from back-dating of ia,
documents to improper sOlicita
ton of taxpayer. The Dismissal