Evening star., 1952-03-26
Bridges 10 Tell
OF His Role in
Big Tax Case.
Will Testify on Part
In 81 Million Affoir
At Inquiry Tomorrow
By Cecil Holland

Senator Bridges of New Hamp-
shire, Republican floor leader, will
appear before House investigators
of tax scandals at 1890 am. to-
morrow to explain his interven-
ton in a 81 million tax case of o
Baltimore liquor dealer.
Chairman King of the House
Ways and Means subcommittee
announced today that the hearing
WAS arranged after confidential
Bureau of Internal Revenue rec
ords disclosed extensive, behind
the-scenes activity in the case by
Senator Bridges and Washing
toms mystery man. Henry w.
Grunewald. I
Mr.. King said he had been
in communication with Senator
Bridges after the records were,
disclosed at a hearing yesterday.
He said the Republican leader
expressed the desire" to be heard
as soon as possible.
Mysterious Offer Disclosed.
The bureau records also dis
closed mysterious offer-an offer
the retained attorneys in the case
said was unknown to them-to
settle the 81 million claim for 81
million.
The subcommittee pursued its
investigation of the mystery Of
the outside interest displayed in
the tax case of Hyman Harvey
Klein. the Baltimore businessman,
by taking sworn testimony from
Mr.. Klein's personal attorney.
Ellis Rosenberg. of 5000 New
Hampshire avenue NE.
Mr.. Rosenberg testified he had
no knowledge of any connection
that Senator Bridges and MIR.
Grunewald had with the case 9TH
er than what he had read in the
newspapers.
He added that he. first learned
of their interest in the matter
from newspaper accounts of the
subcommittee's hearings last De-
cember.
Says Klein Didn't Know.
The lawyer said it was his i'm
preston that intervention by SEN
ator Bridges and Mr.. Grunewald
was without the knowledge of Mr..
Klein.
What do you think happened?"
asked Representative Curtis, Re-
publican, of Nebraska.
Il don't know, sir" Mr.. Rosen-
berg replied. and expressed the
1opinion that somebody imposed
on Mr.. Klein"
The witness was questioned in
detail about a complicated setup
of foreign corporations through
which Mr.. Klein operated a
wholesale liquor importing and
exporting business. He acknowl-
edged that the company received
royalty and dividends but did
nothing to get them"
Mr.. Klein himself has testified
under oath that he did not even
know Senator Bridges or Mr..
Grunewald and authorized no
one except a firm of New York
tax lawyers to act in the case.
Records Produced.
The mystery of the outside in.
terest shown in the case was
heightened when Adrian w. De-
Wind, the subcommittee's chief
counsel, produced the records of
conferences and telephone calls
involving Senator Bridges and Mr..
Grunewald. He submitted them.
after a number of witnesses, in
addition to Mr.. Klein, testified
they had no knowledge of the
backstage activity in the case.
The records revealed that Sen.
ator Bridges held at least two
conferences and had several tele-
phone conversations about the
case with George j. Schoeneman.
former commissioner, and Charles
Oliphant, former general counsel
of the Revenue Bureau. They
also reveal conferences and tele-
phone calls with Mr.. Grunewald.
This part of the records was
brought out while I. Alfred Levy.
(See REVENUE, Page A-S)