Evening star., 1951-09-21
Probers Told Of Gift
OF Camera 10 Aide
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ernment employees. Those re-
corded payments were listed in
the company's books mainly as
commissions" or advances to
statesmen" The payments to Mr..
Boyle between February II and
April 80, 1949. also were listed
as commissions" in the company's
books.
Before the committee had gone
far in questioning Mr.. Blauner,
it was confronted with the prob
lem of getting testimony from his
son, r. A. Blauner.
The elder Blauner testified that
some Of the reported payments
by Lithofold to various former or
present Government employees,
apparently were authorized by his
son. The younger Blauner, how
ever, is In Cuba.
Ralph A. Cusick, a Washington
attorney now representing Litho-
fold. informed the subcommittee
today that r. A. Blauner would
be willing to answer any ques-
tions under oath, If the questions
were sent to Cuba.
Mr.. Cusick added that the
younger Blauner "haS certain per-
sonal reasons for not wanting to
come back to Washington at this
time"
Heated Exchanges.
Senator Nixon asked whether
those reasons had anything to do
with R. A. Blauner's income tax
difficulties. Mr.. CuSick replied
that he advised Mr.. Blauner to
sign release so that the subcom-
mittee could examine his income
tax returns. Mr.. Blauner. the
attorney said, informed him that
he would think it over.
The elder Blauner's repeated as
sertions that Mr.. Boyle was re-
taiped only for legal work caused
heated exchanges between him
and several subcommittee mem
bers. Senators Nixon and Mundt,
Republican. of South Dakota,
seemed particularly angered by
Mr.. Blauner'S testimony that he
saw Mr.. Boyle only six or seven
times and could not remember
exactly what Mr.. Boyle or Mr..
Siskind did to earn their fees.
do you mean to say" Senator
Nixon demanded, that your COM
pany paid $3.50 to Mr.. Boyle
before he left to become a Demo-
cratic National Committee official
and then paid another $4,000 to
Mfr. Siskind since that time and
you don't remember the first time
you met Mr.. Boyle or exactly how
you employed him?"
II assure you I do not remem-
ber." Mr.. Blauner retorted. IT
don't keep a diary"
Tax Agents Visited Office.
Mr.. Blauner did disclose, how
ever, that visits by Internal Reve-
nue. agents to the Lithofold Office
in st. Louis, prior to the COM
pany's employment of Mr.. Boyle,
might have had something to do
with listing the Boyle payments
as commissions.
He did not elaborate on that
explanation but insisted that
James P. Finnegan, who resigned
last spring as Internal Revenue
Collector in st. Louis and cur
rently is being investigated by a
Federal grand jury, had nothing
to do with examining company
records.
The committee indicated today
that recent disclosures have de-
cided its members to widen the
scope Of its probe.
Subcommittee Chairman HoeyI
said also that transcript of all
testimony is being sent to the
Justice Department.
Late yesterday the st. Louis
company'S controller, Homer W..
Stanhope, testified that:
Joseph D. Nunan, former Inter-
nal Revenue commissioner, re-
ceived $4,055 in commissions from
Lithofold since 1949 while in
private law practice in New York
City.
John L. Kelly, then chief of the
investigative unit of the Labor De-
partment's Wage and Hour Divi-
sion Office in New York, got $13,-
942.47 from the company since
1949.
$5,851 to Olson Listed.
James B. E. Olson, who resigned
as New York district supervisor
Of the Treasury Departments al
cohol tax unit last month, was
paid $5,851.29 in commissions byl
the company.
Walter Doxon, Internal RevenueI
Bureau agent in Newark, N. J..I
according to Senate subcommittee
investigators. was sent $1,000 inI
April, 1949, by Mr.. Olson under
instructions of Mr.. Kelly.
A man, named by Mr.. STAN
hope as "E. Kelly" and identified
by him as brother Of Daniel j
Connerty, supervisor of the
Treasury Departments alcohol tax
unit in Chicago, was paid COM
pany commissions totaling about
$500 in 1949-50.
Charles Nolling, described by
BILFOLD, mans hrowp cor+,,nIu-