Evening star., 1952-03-21
Bridges Aided
Him in TaxCase
MaIoney Says
Senator Brewster Tells
Of Using GrunewoId to
Aid COP. Candidates
By Cecil Holland

Dy \eCiI T10Ii0n0
The name of a second United
States Senator came up in a House
Subcommittee's investigation of
tax scandals today when William
Power Maloney testified that he
got Senator Bridges. Republican,
of New Hampshire to take up with
the Bureau of Internal Revenue a
multimillion dollar tax claim in
volving a Baltimore businessman.
Mr.. Maloney, a New York law
yer and former Justict Depart
ment official, said he asked Sem
ator Bridges to inquire about the
case, although he did not repre-
sent Hyman Harvey Klein, the
taxpayer.
Yesterday, the subcommittee
brought out that Senator Brewster,
Republican, of Maine had made
contributions of $4,000 each
through Washington's mystery
man, Henry w. Grunewald, to the
1850 primary campaigns of Re-
publican Senators Nixon of Cali
fornia and Young OF North
Dakota.
Session Is Hectic.
Mr.. Maloney's activities in the
Klein case-involving jeopardy
assessment against the business
man totaling about 81 million
were brought out in a hectic give
and-take session with the subcom-
mittee. The lawyer was overruled
in his protest against disclosing
Senator Bridges name on the
grounds that it would serve only
to embarrass the Senator.
Chairman King, Democrat, of
California, pointed out that pre-
vious testimony had disclosed that
Senator Bridges had inquired
about the case at the Revenue
Bureau.
Mr.. Maloney said that his law
partner, I. Alfred Levy. and Mr..
Klein were friends of long stand
ing and that Mr.. Levy had asked
him to see if there was some way
to bring about a settlement of the
case. He added that on one of his
trips to Washington he went to
see Senator Bridges, whom he de-
scribed as a good friend. and asked
him to take up the matter with
the bureau.
Chief Committee Counsel Adrian
w. DeWind asked Mr.. Maloney if
he knew at the time he took up
the Klein case with Senator
Bridges that it involved whisky
imported from Canada and for
eign corporations - Panamanian
and Cuban-set up to receive the
whisky before it was sent to the
United States.
II knew nothing whatever about
the details of the case," Mr..
Maloney replied. He added that
he had heard Mr.. Klein complain
long and loud" about the matter
while visiting in Mr.. Levy's Office.
He said he understood it involved
a capital gains tax matter and
that Mr.. Klein had disclosed all
the facts to the Revenue Bureau
and had paid a large tax.
Under further questioning by
Mr.. DeWind, Mr.. Maloney said he
believed he mentioned the Klein
case to Mr.. GruneWald. The SUBJ
committee has received testimony
from Charles Oliphant, )rmer
general counsel of the hevenue
Bureau, that both Senator Bridges
and Mr.. Grunewald made in
quiries about the case.
Called Friendly Favor"
Mr.. Maloney testified he had
known Senator Bridges for 10
years and asked him to take up
the Klein case with the bureau as
"a friendly favor" and added:
"It is a matter of great regret
to me that as a result of doing
q favor for me, that Senator
Bridges name has been brought
into the matter"
At one point, Mr.. DeWind asked
if Mr.. Maloney did not consider
it was representing the taxpayer
to ask Senator Bridges to inter-
vene with the bureau about the
case.
Certainly not" Mr.. Maloney
retorted. "You know better than
to ask such a question if you
have any sense at ALL"
In constant sparring with Mr..
DeWind and some of the Subcom-
mittee members, Mr.. Maloney de-
scribed some of the questions he
was being asked as silly" and
(See REVENUE, Page A-2.)