Evening star., 1952-02-10
San Francisco Inquiry
Seen Squirting Plan 10
Revamp Tax Bureau
By Cecil HoIIond
Stor SteH correspcnden.

SAN FRANCISCO. Feb. "a
week Of public hearings by House
investigators Of tax scandals has
added up to a strong argument
for President Truman's reorgani-
zation plan of taking revenue col
lectorS out of politics.
Political favoritism, laxity, in
competence and similar short
comings rather than corruption,
in the operation Of the San Fran
cisco collectors Office by a tightly
knit little group Of men who re-
sisted all outside supervision have
been uncovered by the House Ways
and Means subcommittee thus far
in the hearings here.
1t was almost brought out that
the situation leading to the dis
misSal of James G. Smyth, the
collector, and several of his top
aides was of long standing and
had been known in Washington
for at least Is years with noth-
ing being done about it.
Hearings Resume Monday.
For this reason, according to
Representative Curtis. Republican.
Of Nebraska, one of the Subcom-
mittee members, Washington must
be held responsible for what hap
pened in the San Francisco Office.
my observation at the end of
this weeks hearing is that final
responsibility for laxity. incom-
petence and political favoritism
that existed here rests squarely on
the Revenue Bureau and Treasury
officials in Washington" Mr..
Curtis commented.
The subcommittee headed by
Representative King, Democrat.
Of California will resume hearings
Monday with Deputy Collector
Thomas j. Doolan as the witness
for the second time.
Mr.. Doolan, a revenue employe
since 1887, testified Friday that he
was the author of a so-called bill
Of particulars" which led to Fed
eral grand jury investigation of
Smyth's Office. The jury eventually
indicted Smyth and some of his
top assistants on fraud conspiracy /
charges.
O'Gara Is Summoned.
He will be followed by Charles
OGara. young assistant United
States attorney who stirred up
bitter row by trying last spring to
have a Federal grand jury inves-
tigate the Doolan charges. /
The matter was taken out Of /
his hands and the grand jury in
quiry later was assigned to an
other assistant district attorney.
Although indictments were re-
turned against Smyth and others,
there have been repeated charges
that the government through the
district attorneys Office tried to
smut on the inquiry.
! Mr.. Doolan said he turned theE,
Allegations against Smyth and
others to Mr.. O'Gara after the
Senate Crime Investigating Com
mittee failed to look into them
last spring. He said they were
designed to clear up any suspi-
eions that might obtain against
the bureau or its employees" and
that he did not know whether the
reports, collected over a number,
Of years, was true or false.
Afraid to Take Action.
He said there were many other
rumors concerning the San Fran
cisco Office but other individuals !
were afraid to do anything about
them because they might be out ,
on the street." =
The hearings also heard Stand. ]
ley v. McKenney of Los Angeles, ,
supervising auditor for the bureau, /,
testify that he had warned hisi
superiors in Washington as far ]
back as 1886 that conditions were
bad in the San Francisco office. h
Committee members said the {
disclosures should gain further +,
support for Mr.. Truman's reor-
ganization plan for the Revenue
Bureau. The plan has passed the !
House and is now in the Senate.
1t would abolish the Offices of COL !
lector, now presidentially appoint !,
ed, and create not more than 25I +
district commissioners with much
broadened authority for admins
tering the tax laws. !