Evening star. [volume] (Washington, D.C.) 1854-1972, 1951-11-21
Tax Probers Studying
Charges Against King
After He Asks Inquiry

After He Asks Inquiry
The House Ways and Means
Subcommittee probing scandals
within the Internal Revenue Bu-
reau met today to consider a re-
port on an inquiry into rumors
that its own chairman once tried
to influence tax cases.
The extensive two-day inquiry
which ended shortly before mid
night last night, was demanded by
the chairman himself, Representa-
tive King, Democrat, of California
who has denounced the rumorS
fatty as malicious and false"
After hearing nearly a dozen
witnesses, the subcommittee issued
no statement. but the groups
chief counsel, Adrian w. De Wind.
declared:
Relevant testimony to the al
legations of tax case mishandling
>. will be released in verbatim
form in conjunction with a re-
port"
Chief of Mint Resigns.
Meanwhile, as the subcommit-
tee moved back toward its main
line Of inquiry. there were these
new developments touching on
widening reports of scandal in
the tax collection service:
l. George B. Gillin, superin-
tendent of the Federal Mint in
San Francisco, resigned yesterday
ther than give up private in
|, Surance business. The resignation
followed increasing demands that
Federal officials should not have
outside business interests.
2. In st. Louis, both the Post
Dispatch and the Globe Democrat
said that Ellis N. Slack. acting
head of the Justice Departments
tax division. sought to interfere
with a grand jury investigation
into tax fixing there. Attorney
General McGrath named Mr..
Slack as acting division chief to
replace Theron Lamar Caudle, who
resigned the post last week at
President Humans request. Mr..
D Slack served as chief of the tax
divisions appellate section.
Cat Let Out of Bag"
3. The San FRANCISCO Examiner
reported that some one high in
Washington" has ordered an in
veStlgation to find out who let
the cat out of the bag" in con-
nection with the San Francisco
internal revenue Office, where sew
en- officials have been suspended
and two fired outright. The news
paper quoted Charles E. Davies,
head of the Treasury Depart
ment's intelligence unit in San
Francisco, as saying he received
orders to conduct such a probe"
but that he would not elaborate.
Chairman King turned the sub
committee direction over to Rep
resentative Combs, Democrat. of
Texas. in ordering the group to
investigate thoroughly persistent
rumors that he had brought in
1uence to stop Investigations of
certain tax cases in the Long
Beach-Los Angeles area.
Among those questioned in the
lengthy, secret tWo-day sessions
were George D. Martin. internal
revenue agent in charge at Los
Angeles, and George w. Bryant.
assistant district attorney there
when the tax cases to which Mr..
Kings name has been linked were
under scrutiny.
Announcing today's session, Mr..
DeWind said:
ITS quite clear to my mind
that the committee will not release
great deal of the testimony
which was clearly irrelevant to
the inquiry concerning tax in
duence rumors.
Relevant testimony to the al
legations of tax mishandling. how
ever. will be released in verbatim
form in conjunction with a re-
port"
Bonding Monopoly Involved.
Mr.. DeWind told reporters the
subcommittee also had received
some very general information"
about Mr.. Gillins insurance bust
ness, and said the group may
look further into the resigned
mint officials activities when it.
holds west coast hearings in
January.
But he said the circumstances
of Mr.. Gillins resignation and
activities are mot an important
matter in relation to the COM
mittee'S inquiry"
A Treasury spokesman said no
questions of irregularities or in
efficiency in Mr.. Gillin's work
have been raised He said simply
that Mr.. Gillin was given a choice
of giving up the $4,000 post or
giving up his insurance business.
The name of Mr.. Gillin, whose
resignation is effective November
30, appeared last month in con-
nection with the inquiry of inter-
nal revenue affairs in San Fran
cisco.
At that time, deputy collector
said he found there was bonding
business monopoly" in the San
Francisco collectors office. He
said three men, one of them Mr..
Gillin, received all the insurance
business involved in the compul-
sorry bonding of tax bureau en-
ployes through company which
had exclusive rights" for the last
20 years.
Barbara Wouldn't Forget
kooI Tnno e,ve II D;f4