Evening star., 1952-08-28

Ing said-before the grand jury
inquiry was .started-that au-
thorization from the Justice De-
lpartment for him to cooperate
had been denied"
s. Declared Mr.. Watson saic
lie was given "the go sign" by
Justice only after Judge Moore
had advised him that he was 60
ing ahead with the inquiry, re-
lEardless of the departments CO.
operation.
Z. Said he had warned the
Justice Department through Mr.
McGrath that the st. Louis stu
alton was too serious and un-
wholesome to be ignored" and
that it calls for surgery and
cutting to the bone"
Talked to Caudle.
Today under direct questioning
by the subcommittee counsel
Daniel G. Kennedy. Mr.. Slack de-
clared:
/. That he talked only to T.
Lamar Caudle, at that time head
of the Tax Division, and received
no specific instructions on March
5, the day he was ordered to St
Louis. He said he was told only
to go there and report to Mr.
Watson.
2. That he had been reluctant
to take the trip on short notice
because he was involved in other
work and his speciality was moi
dealing with criminal matters.
8. That it was fair to say that
Judge Moore's reason for order
ing the inquiry was that he fell
regular channels for handling taa
cases "had become. clogged ano
needed blasting"
Explains Routine.
Mr.. Slack explained that taS
cases routinely follow many steps
through the Internal Revenue sys-
tenn before they are cleared by the
Justice Department and sent te
a United States attorney fol
presentation to a grand jury. Con.
gress. he said, has given the Rev
, enue Commissioner broad powers
to compromise and otherwise taxi
special steps on tax claims.
l BY the time he reached st
| Louis, he said. the Justice Depart
ment had agreed, after earlier re-
luctance. to cooperate in the pre-
sentation of tax fraud cases II
the grand jury directly from rev
/. enue agents.
However. he said, he told tn
/ judge that he still felt case
should 60 through regular chan
nels and I think so today"
The witness said he did not be-
lieve he had talked with Peytor
Ford. then Deputy Attorney Gen
eral. but he said he thinks Mr.
Caudle had told him that Fore
wants some one to 60 out ther'
who won't lose his head"
i Succeeded Caudle.
Mr.. Slack succeeded Mr.. Caudlt
as acting chief of the Tax Divi.
sion when the latter was oustec
from the job by President Truman
last November.
In his statement Mr.. Slack sale
he reviewed a number of case,
before the grand jury. most o.
which had not yet been referred
to the Justice Department. HI
said the jury indicated to hin
it was satisfied the cases has
been properly handled"
Referring to the charge that h,
lhad cleared the controversial par
tial report, Mr.. Slack asserted:
"The report was read to m,
over the telephone. I do not re-
call my exact comments, but
may have said that it sounded
like an excellent report. I wisl
to emphatically state that I die
mot ask the United States attor.
ney to telephone me and thai
I did not know he was going tx
lido so.
Didn't Tell Superiors.
"I did not know what evidenc,
had been produced before tn,
grand jury and therefore was no
in a position to say what shoult
or should not go into any repor
to the grand jury. After the re.
port had been read to me over tn,
telephone, dismissed the inciden
from my mind. To the best of m,
knowledge I did not report to m,