Evening star., 1951-12-05
Nathan AssaiIed
AS an Influence
|Pedd|er' byKing
Probe Chief Assumes
Officials Had No
Part in Tox 'CIique'
By Cecil Holland

Slldll IIldIi AlllS SdlQ LOUdy IIlS
House Ways and Means Subcom-
mittee investigating tax scandals
has received no testimony" that
several present and former promi-
nent Government officials partici-
pated in an alleged attempted
"shakedown" of a wealthy Chicago
lawyer
Mr.. King made the statement
as the subcommittee resumed pub
lie hearings looking into the SEN
sational charge
Abraham Teitelbaum. the Chi
cago attorney. told the House tax
investigators yesterday that Frank
Nathan and a man named as Bert
Master tried last April to shake
him down for 100000 to settle q
tax case.
The attorney said he was told
that several high Government off,
cials and former officials had
formed combine to look for soft
touches"
Byrnes Withholds Judgment.
Mr.. King said the present and
former officials named as being in
the clique had denied "any in
volvment in the matter" and
lacking such testimony, we as
sumo they did not"
Representative Byrnes, Republi-
can. of Wisconsin. said Mr.. Kings
statement represented his own
views and not those of the COM
mittee. He added that he pre-
ferred ito withhold judgment"
until this particular part of the
sugcommittee's inquiry has been
completed.
The subcommittee called Ma
than, a Miami Beach and Pitts
burgh figure to continue testimony
about his associations with for
mer Assistant Attorney General
Theron Lamar Caudle and others
whose names were mentioned in
connection with Mr.. Teitelbaum's
testimony.
Highlights of the hearing in
cluded:
l. Chairman King, in his state
ment, denounced Nathan as "an
influence peddler" and said he
was able ito pose as man of in-
fluence" because Mr.. Caudle main
tanned with him" a constant and
public social and business rela-
tionship."
Lie Test Proposed.
2. Loring Black. Nathan's at
torney, suggested that Nathan be
given a lie detector test" in the
presence of the committee" on the
charge made by Mr.. Teitelbaum.
Mr.. King said the committee
would consider it later.
3. Nathan said that many peo-
pie tried to talk to him about
taxes because he knew Mr.. Caudle,
who headed the Justice Depart
ment's Tax Division until he was
fired three weeks ago by President
Truman. Il never asked Mr..
Caudle for no help with no tax
case at no time" the witness said.
4. Nathan said he and Mr..
Caudle frequently went to the
races together and that at the
Kentucky Derby once he might
have had a drink with Charles
IOliphant, general counsel of the
Revenue Bureau. Mr.. Oliphant
was one of those Mr.. Teitelbaum
said he was told was in the
clique.
S. Nathan was faced with a
possible contempt charge when he
refused, on the advice of his at
torney, to name a bookie to whom
he said he owed $4,000 on the
grounds his answer might incrimi-
nate him.
Keeps No Records.
6. Nathan admitted that for the
last three or four years he had
picked "out of the air" a figure Of
$4,000 to charge off as business
expenses for travel and entertain
ment on his income tax return. II
didn't keep no records" he testi-
| fed.
Two or three hundred persons
attracted by the sensational ma
ture of the testimony in the in
Ivestigation filled the large Ways
and Means Committee room as
the hearing was resumed. All seats
were occupied and a score or more
stood around the walls as Nathan
testified. The hearing recessed
until the afternoon without the
Teitelbaum charge being brought
up.
Graphic Story of Peddling."
Mr.. King, in his statement, de-
scribed the testimony as "a graphic
story of influence peddling" and
said Nathan is "a well-known
and widely recognized influence
peddler."
Nevertheless" he added" Mr..
Nathan was able to continue to
pose as man of inf1uence-very
largely, it is apparent. because
former Assistant Attorney Gen.
Continued on Page AS, Col. ~
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