Milford chronicle., 1951-12-14

Sorsnlp on Corruption lntor-
nation
5. Republican Congressman Pro-
vide n Percent of Economy
Votes
s. Senate Subcommittee Finds
, Military Production is Lag
ging
z. Where They are Now
8. OPS Stretches Law Too Far
3 8. Former Postal Official
Charges "Inept" Operation
10. Radical Policy Differences
Between ECA and State De-
partment
"a HALF.MILLION DOLLAR
SHAKEDOWN CHARGED: The
House committee investigating in
come tax scandals on December 4
heard Abraham Teitelbaum, Chi
cagO attorney, testify under oath
that he could have pending income
tax difficulties settled by payment
of 100000. Teitelbaum testified
that he was approached by two men
who he said we're part of a Wash
ingtOn combine" allegedly linked
with high-ranking officials of the
Truman Administration. The Chi
cagO attorney said that in April
Bert X. Master and Frank Nathan
attempted to extOrt $4,000 in cash
from him and demanded $325,000
additional within 70 hours. Teitel-
baum said that the two men told
him he would have trouble" UNI
less he became a shakedOwn vic
tim. Teitelbaum told the commit
tee he refused to make the extor-
ton payment and that he did have
trouble and the Justice Department
is now prosecuting tax cases
against him..
Teitelbaum testified: "They
Master and Nathan) said there
was clique in Washington. They
mentioned Charles Oliphant, Jess
Larson, Joseph human, and a Mr..
. SchoenC1Nan. T. Lamar Caudle was
= also named" (Aliphant is chief
counsel of the Internal Revenue
Bureau: Larson is head of the
General Services Administration
Nunan and Schoeneman are both
former Commissioners of Internal
Revenue; Caudle was fired as As
sistant Attorney General in charge
of the Justice Departments Tax
Division on November 49,
Mrs. ShyTl Menken of Chicago
and Miami Beach, Fla, friend OF
Teitelbaum, cOTrObOrated the tes-
timOny of Teitelbaum. She said
that Master and Nathan talked to
Teitelbaum in her home in Miami
in April. Mrs. Menken testified:
Master said to Teitelbaum
You're in trouble, bad trouble. You
81 need my help whether you know
b it or not. l have seen your file
and there are forty or fifty aftida-
, Wits that you attempted fraud Tel
telbaum said: You're a liar Mas
ter said: You're going to be in
dicted and sent to the penitentiary
without my help Teitelbaum said
his case was being settled on five
percent penalty basis. Master said
You refuse my help and see the
pressure you get. / don't have the
= power to send people to the peni-
Tertiary, but 1 have friends-Cau-
die, Oliphant, Larson. I'm ready
to talk business, and this is what
r. business means: $4,000 immedi-
ately and S325,000 in 72 hours"
Mrs. MeEken testified that SHE
had seen Mr. Caudle, in Miami
Beach, put his arm around Ma
than's shoulders with the remark
Frank, you know there's nothing
wouldn't do for you"
All of the Truman Administra
ton officials mentioned by Teitel
baum and Mrs. Menken in their ties
timOny denied the existence of any
3 fixing clique" in Washington anC
also denied charges made by Tel
telbaum and Mrs. Menken.
- Master was sentenced to fiVt
years i'm prison for tax evasion il
>, 1947 on a charge that he evadel
S221,OO0 in income tax. Nathan
was arrested on charges of suga
black marketing. He was freeC
when the charges were dropped
with the approval of Caudle, at tina
time head of the Criminal Division
of the Department of Justice.
FUR COATS, $4,000, AM
POOR MEMORIES: The House in
: vestigatiOn of the Internal Revenue
Bureau revealed other irregulari
ties, mostly centering around for
mer Assistant Attorney Genera
Caudle. The inquiry disclosed:
November Isl. T. Cohen, At
lanta tax lawyer, and a friend o
- Caudle, told the Subcommittee tina
his law firm paid for a SIPS mOu
ton coat in 1948 for Caudle's daugh
ter and another fur coat for tn,
wife of Caudle's then assistant
Turner L. Smith, who resigned I
few months ago. Caudle described
Mrs. Smiths coat as "a pretty cheal
lii cOat-a muskrat or dyed SPUR
rel or something" COhen's Law
firm, which handled some so case
with the Tax Division of the JUS
tice Department for over two years
charged off the costs of the fu
costs as business expenses" Il
addition, Mrs. Caudle purchased