Evening star., 1951-12-07

in the Teitelbaum tax case which
has been sent by the Revenue Bu-
reau to the Justice Department
for possible fraud prosecution.
The current hearings of the
subcommittee. revolving around
the handling of tax fraud cases,
are expected to run into next
week.
McGrath May Testify Monday.
1t was indicated that Attorney
General McGrath would be called
for questioning Monday about
some of the activities of Mr..
Caudle while he was head of the
tax division. These will include
a $4,000 commission Mr.. Caudle
received on the sale of an air.
plane-a commission which Mr..
McGrath approved.
The subcommittee has decided
not to call Supreme Court Justice
Tom Clark. The justice appointed
Mr.. Caudle to the post of Assistant
Attorney General in charge of the
Criminal Division in 1945 while he
was the Attorney General, and &C
companied Mr.. Caudle on some
Iairplane trips as the guest of a
man later investigated for tax
troubles.
Mr.. King said he thought Mr..
Clark might want to submit a
statement to the subcommittee.
The subcommittee explored yes
terday the circumstances of the
Iairplane deal by questioning Larry
Knoll. New York businessman,
about it.
Amazed" at Commission.
Knoll. who angrily admitted
having served a prison sentence
for embezzlement in the 1930s,
bought the plane from w. A. Ston-
nell, friend of Mr.. Caudle, for
$4,000.
He told the investigators he did
not know Mr. Caudle was receiving
"a commission and was amazed"
and couldn't believe" it when he
learned of the matter.
The deal took place in Septem-
ber, 1850, when Knoll was trying
to develop new evidence to get two
New York business associations
Samuel Aaron and Jacob Freidus
out of tax difficulties. Both men
were subsequently tried, convicted
and sentenced to prison.
The King subcommittee has re-
ceived testimony and documents
indicating that shortly before the
trial the Justice Department and
the Revenue Bureau agreed to
have the charges against Aaron
dropped because of the defend
ants heart condition.
Mr.. Caudle has emphatically
denied, however. that he inter-
vened in the case and has insisted
he believed the men were guilty
and wanted them tried.
In addition to the Knoll testi-
mony, the subcommittee heard
two other witnesses yesterday.
Nathan's S0n-in-Law Heard.
One was Leslie Sale of Miami
Beach, Fla. a son-in-law of Ma
than who described himself as a
broker. He denied that he had
ever told Mr.. Teiltelbaum that his
father-in-law was "blackmailer"
or that he had advised that Mr..
Ieltelbaum Cooperate" with
them in getting his tax case
settled. He said such charges
were "a rotten lie"
Another witness was j. Kenneth
Edlln. Chicago real estate man
and a friend of Mr.. Teitelbaum.
Mr.. Edlin said he introduced Mr.
Ieltelbaum to Nathan on a Miami
street sometime last fall. He said
they became acquaintances, but
declared he had no recollection of
any discussions between them of
tax matters.
Mr.. Edlin said Mr.. Teitelbaum
came to him last July and said
Nathan was trying to get money
from him on the tax case, then
under investigation.
Mr.. Edlin testified he at once
called Nathan on the telephone.
with Mr.. Teitelbaum listening in.
He said Nathan denied it and said
1T was Master" or "it may be
Master"