Evening star., 1951-11-02
Tax Probe Shifts
To High,Leve|
'JusticeCirc|e
CuudIe Is Questioned
On Associations and
His Own Returns
By Cecil Holland


into a high-level Justice Depart
ment circle with Assistant Attor-
ney General Theron Lamar Caudle
being questioned about his per-
sonal associations and his own in
come tax returns.
Mr.. Caudle, At, is head of the
Justice Departments Tax Divi-
sion. which is charged with prose-
cutting tax violators.
The Ways and Means subcom-
mittee, it was learned, has OBJ
tanned Mr.. Csudle's personal tax
returns for scrutiny in connection
with the spreading inquiry.
Chairman King, Democrat, of
California. and Adrian w. De
Wind. the subcommittee counsel,
refused to comment about the
sudden shift of the inquiry to
the Justice Department and Mr..
Caudle.
Will Quiz Caudle Again.
The Assistant Attorney General
was called before the subcommit-
tee yesterday for an unannounced
closed meeting which lasted about
two hours.
Afterwards. Mr.. King said Mr..
Caudle would be questioned, again.
1t was indicated that another
closed meeting might be held with
Mr.. Caudle this afternoon.
Earlier in the week. Mr.. King
said the subcommittee has been
disturbed by the very high per-
centage of cases" recommended
for prosecution which have been
dropped at higher levels"
He made the statement in an
nouncing a six-point program of
inquiry mapped out by the sub
committee with special emphasis
on "the question Of possible i'm
proper influences" in decisions not
to prosecute cases in which fraud
investigation have been made.
To Meet Snyder, Dunlap.
The subcommittee scheduled a
closed meeting this morning to
discuss the program with Treasury
Secretary Snyder and John B..
Dunlap. commissioner of internal
revenue.
In addition to the handling of
fraud cases, the investigation laid
down by the subcommittee in
cludes the procedures for civil
settlement Of tax claims, the oper-
alton of the alcohol tax unit,
supervision of tax lawyers and ac-
countants who practice before the
Treasury Department and pro-
posals to strengthen administra-
lively the country's tax collecting
system.
The subcommittee turned to the
broadened field Of inquiry after a
series Of public hearings which re-
vealed corruption and Irregular
tiles in several Offices Of collectors
Of internal revenue.
Representative Scott, Repub-
lican, of Pennsylvania, said today
he has asked the House subcom-
mittee to inquire into the Phila-
delphia internal revenue office.
Mr.. Scott, former Republican
National Chairman. said in a news
letter to constituents he asked the
committee to investigate whether
Several employees have been per-
to resign quietly for rea-|
sons Of official misconduct" if all
had been paying their
income taxes, and If some have
large, unexplained" incomes.
Request Ignored, Scott Says.
He said thus far his request has
been ignored" by the committee
but added perhaps they will come
to Philadelphia after the munic-
lpal election" scheduled this
President Truman announced
yesterday that he will recommend
to the next Congress the placing
OF collectors under civil service
and removing them from the field
of political patronage. At pres
ent, collectors are appointed by
the President.
Representative King said the
President had not discussed the
recommendation with him. It
has been indicated the subcom-
mittee would propose such a move.
The widening investigation pro-
duced overnight an acknowledge
ment by Jess Larson, head of tn
General Services Administration,
that he and Mr.. Caudle had en-
gagged in an oil speculation about
a year ago.
But Mr.. Larson denied that
three other men, one of them a
gambler and another with an ar
rest record in Pittsburgh, had
taken part in the venture.
(See REVENUE, Page A-2)