Evening star., 1952-04-24
Nunan Got Fee
or'FeW' Phone
Ca||s,Probe Told
Attorney Says Firm
Paid $24,985 for
Minor Services
By Cecil Holland

W SSSH tIOlOUU
Joseph D. Nunan, jr., received
a fee of $24,985 from a st. Paul
company in 1947 for doing nothing
more than making a few telephone
calls, House tax investigators were
told today.
The testimony was given as the
House Ways and Means Subcom-
mittee. headed by Representative
King, Democrat. of California
continued to inquire into the
financial affairs of the former
commissioner of internal revenue.
Details of the payment of the
fee to Mr.. Nunan were brought
out as a Chicago attorney, Thomas
Sullivan. testified before the sub
committee. Mr.. Sullivan is one
of the attorneys for Brown &
Bigelow, st. Paul firm specialize
ing in advertising matters.
Mr.. Sullivan said he retained
Mr.. Nunan in August, 1947, in
connection with a fiotation of
stock for public offering in the
event difficulties arose in obtain
ing approval of the Securities and
Exchange Commission.
Many Have Got Appointment.
He also acknowledged that Mr..
Nunan may have called Revenue
Bureau officials to arrange an ap-
pointment in connection with the
involved stock transaction. Mr..
Nunan resigned as commissioner
June 30. 1947
At the time. Charles Ward, head
of Brown and Bigelow, had pend
ing before the Revenue Bureau
an application for a ruling and
closing agreement on whether
personal proceeds from options
involved in the stock transaction
should be treated as short-term
or long term capital gains for tax
purposes.
Mr.. Sullivan testified that he
had discussed the matter with Mr..
Nunan during 1916, when an
earlier application for a bureau
ruling was pending. The matter
involved some $4,000 shares of
Brown and Bigelow stock previ-
ously sold to the company en-
ployes with Mr.. Ward retaining
an option for repurchase.
In connection with the public
offering Of the stock, it was
brought out. MIR. Ward gave up
his option and received $1,191 900.
Paid in Firms Stocks.
Mr.. Sullivan contended that Mr..
Nunan was employed only in con-
nection with getting the stock
offering cleared by the SEC. The
matter went through in late 1947
and, Mr.. Sullivan said. Mr.. Nunan
came to St. Paul where Mr.. Ward
told him he was going to pay him
$25 900 for his services.
The payment was made by $3.50
shares of Brown and Biegelow
stock valued at $3.50 a share, or
a total of $24,985 worth of stock.
Charles Lyons, assistant COM
mittee counsel, summed up the
testimony by saying that what it
came down to was that Mr.. Nunan
received the substantial fee for
making only three or four calls. "
Mr.. Sullivan agreed there was
little service rendered. But he
said Mr.. Ward must have been
satisfied because he retained Mr..
Nunan in another SEC matter in
1850.
The 1850 matter drew a $4,000
fee. which, it was brought out,
was paid to Mr.. humans New York
law firm rather than to him per-
sonally.
"PersOnal Tax Matter"
In connection with the earlier
payment to Mr.. Nunan, Mr.. Lyons
had placed in the record an item
from Mr.. Wards personal busi-
ness records dated December 80
1947. It listed the $24,985 paid
to Mr.. Nunan in stock and added
that it pertained to personal in,
come tax matters of CharN S
Ward"
Investigators said the stock fee
consisted of $3.50 shares of Brown
& Bigelow stock valued At $3.50 a
share. They explained Chat it ap-
peared Mr.. Nunan received the fee
in connection with obtaining a
ruling from the Internal Revenue
Bureau and the Securities and Ex-
change Commission concerning
stock.
$161,609 Income Unreported.
The stock fee came under scru-
tiny as the subcommittee sought
to learn more about an unex-
planned $161 SOC which Mr.. Nunan
failed to show on his income tax
returns in the six-year period
1945-1950.
Mr.. Nunan himself failed for
the second time to appear for
questioning in a public session.
His attorney, Richard Burke of
New York. said he was confined
to his home with q heart ailment.
Representative King ordered a
COMMITTEE tee-appointed physician to
examine Mr.. Nunan and report
(See REVENUE, Page A-5.)