Evening star., 1952-08-29
Explore the Mess Further

Tne pubic mas Deen given shocking glimpse
into the inner workings of Department of Justice
machinery in the sordid st. Louis tax-fraud
mess. The revelations by House Judiciary
subcommittee support the charges by Federal
Judge George H. Moore that department officials
tried to head of grand jury investigation that
eventually brought the Indictment Of Tax Collec-
tor James Finnegan. The mysterious role which
Ellis N Slack, acting Assistant Attorney General,
played in the devious doings needs further
clarifcation.
According to Mr.. Slack, he made special
trip to st. Louis to confer with the United
States attorney about the pending grand jury
inquiry-but carried no particular instructions
from his superior, T. Lamar Caudle, then
Assistant Attorney General in charge of the
Tax Division. He denied sponsoring the white
wash" report which the grand jury issued shortly
after Mr.. Slack returned to Washington and which
Judge Moore angrily rejected. He admitted,
however that the report was read to him on
the telephone by the prosecutor "a highly irregu-
lar procedure) and that he might have
discussed such report prior to its preparation.
The position of the department. the committee
was informed, was that all tax-fraud cases should
first be cleared in Washington before being
presented to grand jury-the usual procedure
in routine cases.
But Judge Moore's deposition raises serious
doubts as to the routineness of the departments
actions in the st. Louis inquiry. Judge Moore
told the committee that when he asked the
United States attorney, the late Drake Watson,
to conduct an intensive investigation into the
handling of tax cases in the st. Louis collectors
office, Mr. Watson told him that the Department
of Justice had denied him authority to conduct
such an inquiry. The judge then telephoned the
then Attorney General, Howard McGrath, urging
his cooperation in the inquiry, without result
To Mr.. McGrath's comment that the matter
should go through regular channels, the juriSt
said he replied that the channels were clogged
or blocked and needed to be blasted out" Not
hearing anything from Washington, Judge Moore
convened the grand jury anyway. Only then did
the United States attorney offer to cooperate
explaining that he had received "the go sign"
Within three weeks after cursory proceedings
during which the visit to st. Louis by Mr.. Slack
occurred, the grand jury presented to Judge
Moore an extraordinary report exonerating the
collectors Office of any wrongdoing. Judge
Moore ordered the jury to resume the investiga-
tion, with the result that Collector Finnegan and
number of tax payers were indicted.
The handling, or mishandling, of this i'm
portant case reflects no credit on those in the
Department Of Justice-then or now-who had
anything to do with the peculiar goings-on
Attorney General McGranery, who has evidenced
a determination to clean house, ought to give
prompt attention to the deposition Of Judge
Moore and the conflicting testimony OF Acting
Assistant Attorney General Slack. Meanwhile
the House subcommittee has sufficient grounds
for extending its investigation until all the dark
corners have been completely explored.