Evening star., 1951-09-11
Ex-Tax Aide Admits
Firm Paid Him While
He Held Federal Job
BY the Associated Press

NEW YORK. Sept. Thames
B. Olson said before a Congress
Sional committee yesterday that
he was paid by the American
Lithofold Corp, of st. Louis, to
solicit printing business while he
was serving as an Internal Rev.
enue official.
The testimony was given be-
fore the House Ways and Means
subcommittee which is investi-
eating Mr.. Olson's conduct as
district supervisor of the alcohol
tax unit of the Internal Revenue
Bureau.
Mr.. Olson. who has resigned,
testified that while he was on
the Government payroll he made
two telephone calls, to a liquor
and beer firm, trying to sell
them printing from the lithofold
firm.
Mr.. Olson. who was vice presi-
dent of Lithofold, resigned his
Government job last August 25
after being questioned by an agent
for the Internal Revenue Bureau
He had held the post since jan
uary. 1947.
Code Violation Charged.
Mr.. Olson told the subcommit-
tee that arrangements which led
to his business connection with
the printing firm were made by
James P. Finnegan, then Internal
Revenue collector in st. Louis. Mr..
Finnegan resigned last April.
After Mr.. Finnegan's resigna-
ton, Attorney General McGrathI
said the Justice Department had
been informed that Mr.. FinneganI
and unknown persons had vio-
lated the Internal Revenue code.
The violation, Mr.. McGrath said,
was "by receiving or agreeing to
receive compensation for services
rendered in relation to matters in
which the United States is a party
or indirectly interested"
Yesterdays investigation opened
with a statement by Representa-
tive King, Democrat, of California
that Mr.. Olson resigned after
questioning about his connection
with Lithofold.
Mr.. Olson testified that he had
told the agent who questioned
him that he had telephoned the
Rupert Brewery and the Austin
Nichols Co. in soliciting printing
contracts.
Tells of Prospects List.
Mr.. King commented that a
District supervisor for the alcohol
tax unit has great powers" over
liquor firms in his area.
Vonne V. Circele, sales repre-
sentative of Lithofold, told the
probers that Mr.. Olson gave the
firm list of liquor companies as
prospective printing customers. (
The witness said he later sold
printing to practically all" of i
about 20 firms on the list which
he contacted.
Mr.. Olson testified that he and
Joseph D. Nunan, a former COL
lector of internal revenue in
Brooklyn, each received $3.50 a
month salary from Lithofold from
February to April, 1949. Mr..
Nunan was not working for the
Government at that time.
Later. Mr.. Olson said, he worked
for Lithofold on a 10 per cent /
commission basis.
Mr.. Olson told the committee he ,
became connected with Lithofold /,
after Mr.. Finnegan asked me if ,
I would be interested in a busi-
ness proposition and I said, yes"
Met Head of Firm.
The witness continued that he i
met Mr.. Finnegan and R. j. Blau- {
ner. president of Lithofold in New /
York and arrangements were made ,
then for Mr.. Olson to act for the
printing company. II
Mr.. Circele, recalled to the t
SCano, teStlneQ that Mr.. Blauner !
had instructed him to seek Mr.. i
Olson's aid in connection with I
other accounts. Mr.. Circele said {
Mr.. Olson was of no help in this, (
explaining that he was not &C
quainted with officials of the firms ;
whose business was sought. {
The st. Louis Post-Dispatch said Il
recently that fees totaling $4,000
once were paid by Lithofold to !
William N. Boyle, jr., now Demo-
cratic national chairman, in con-
nection with a $565 900 Govern
ment loan. Mr.. Boyle denied he
had anything to do with the loan.
RnvIn Drnhnre Gall