Evening star., 1951-11-25

Release Of Tax Files in Probe Undecided
"h'te House Soys. Poee A-4
torney General in charge of the
Justice Departments Tax Divi-
sion.
Mr.. Caudle. 47-year-old North
Carolinian. is scheduled to be the
principal witness in the hearings
expected to last for a week. He
resigned recently at the request
of President Truman who said his
outside activitie. were inconsistent
with the position he held.
Five or More" Case.
The case of the Washington
f1rm, it was learned, will be, one
OF five or more" tax cases about
which Mr.. Caudle will be oues-
toned when he is called as a wit
ness early in the hearings.
The subcommittee, headed by
Representative King, Democrat,
OF California. plans to question
Mr.. Caudle about his own activi-
ties and income tax returns as
a part OF an overall Investigation
OF the Justice Departments
handling of tax fraud cases. Mr.
King has said the subcommittee
is interested in learning why sew
eral tax fraud causes recon-
mended for prosecution were
dropped "at higher levels"
The Washington case was said
70 involve a provisioning firm.
But the details of it and the
amount of tax involved were not
disclosed.
= Questioned About Coat.
The House investigators also
said they would question Mr..
Caudle about reports that a New
York lawyer. who formerly prac-
ticed in Washington. paid 5000
on the purchase price OF a 50, 400
mink coat bought wholesale by
Mrs. Caudle two years ago.
Mr.. Caudle. it was learned, was
asked about the mink coat when
he testified recently before the
subcommittee in closed meeting
preliminary to the pubic hearings
starting at 10 am. tomorrow.
An earlier mink story came out
during the Senate's RFC investi-
cation, involving Mrs. E. Merle
Young. then a White House ste
nographer. and her husband, who
figured prominently in that in
qulry into whether political inf1u-
ence played part in the making
OF multi-million dollar Govern
ment loans.
Refuse to Comment.
Neither Mr.. Caudle nor Mrs
Caudle would comment about the
new mink coat story when a call
was placed to their home at
2939 Newark street NV. Mrs
Caudle was questioned by the sub
committee in closed session yes
terday afternoon.
Other developments in connec-
ton with the subcommittee's
spreading investigation of tax
scandals included:
l. Internal Revenue Commits
sloner John B. Dunlap said he ex-
pected to have an announcement
next week concerning the Revenue
Bureaus investigation of reported
Irregularities in the San Fran
cisco office which have resulted
in the suspension of James
G. Smyth. the presidentially-
appointed collector, and several of
his assistants. There were uncon-
firmed reports that Mr.. Smyth and
four of the six aides suspended
with him would be dismissed.
Announcements Expected.
2. Mr.. Dunlap also indicated
there may be some official an
nouncements as result of investi-
cations of reported irregularities
in the New York and Detroit Of
fees of the bureau.
8. Senator Fulbright. Democrat,
OF Arkansas. said the top people
must be held responsible" in Gov
ernment agencies where wrong
doing crops up. He added that
putting collectors of revenue under
civil service, as Mr.. Truman has
announced that he will ask Con-
gress in January to do, might
help but it would be no panacea. :"
4. The King subcommittee oues-
toned Frank Nathan in closed ses-
sionS throughout yesterday about
his associations with Mr.. Caudle
in an oil lease speculation. Mr..
Nathan is expected to be one of
the principal witnesses during the
hearings involving Mr.. Caudle.