Evening star., 1952-09-02
House Probers
Quiz Caud|e at
Secret Session
Justice Aide Fired
By Truman Questioned
On Tax Fruud Cases

House investigators called IT,
Lamar Caudle into a closed ses-
sion today to tell about his han
ding of tax cases before he was
fired as an Assistant Attorney
General last November 16.
The investigators also arranged
to hear open testimony tomorrow
from James A. Mutually, a Justice
Department attorney who was
suspended August 20. Represen-
tative Keating, Republican, of
New York, said Mr.. Mullally would
be asked whether he split a legal
fee while he still was on the Gov
ernment payroll. Justice Depart
ment witnesses will explain Gov
|ernment rules about such prac-
ticeS.
Mr.. Caudle's name figured in
two cases which came under the
scrutiny of House Judiciary sub
committee last week.
The first was the alleged at
tempt to "whitewash" a grand
jury investigation in st. Louis
which eventually led to the indict-
ment and conviction of Internal
Revenue Collector James p. Fin
negan on charges of misconduct in
office. Finnegan is appealing.
The second was a war frauds
case against a Detroit man which
languished without prosecution
for six years and finally was
dropped. because, as subcommit-
tee counsel, Robert A. Collier, put
it, became "enfeebled by age"
Was Tax Prosecution Chief.
Mr.. Caudle was in charge Of
tax prosecutions for the Justice
Department at the time both cases
were pending:
Whether he will appear later
lat a public hearing depends
largely, said Mr.. Keating, on what
develops at this afternoons closed
door session. Mr.. Heating is rank
ing minority member of the sub
committee.
Mr.. Caudle,' before leaving his
home at Wadesboro, N. c., last
week end. said he would be "de-
lighted to cooperate with the
committee. as I have with other
committees.
Federal Judge George H. Moore
told the subcommittee in a state
ment last Thursday that the JUS
tice Department. from former At
torney General j. Howard Nc
Grath on down, dragged its feet
in the grand jury investigation Of
the st. Louis revenue Office.
Judge Moore said the depart
ment took no action to get a COM
plete investigation going until he
served notice he was going to Or
der an inquiry himself.
Report Called Whitewash.
There was earlier testimony
that, until Judge Moore inter-
vened, the st. Louis grand jury
did nothing but present a pre-
liminary report which one juror
called a whitewash.
Ellis N. Slack, who was Mr..
Caudle's assistant at the time and
who now holds Mr.. Caudle's for
mer job, denied suggestions that
he had approved this preliminary
report.
Mr.. Caudle accompanied Mr..
Slack to st. Louis when the grand
jury was starting its inquiry.
Representative Chelf, Democrat,
of Kentucky, chairman of the sub
committee, declared in a state
ment last week:
1T appears to me that there
was a definite attempt to either
flag down, delay. sidetrack, derail
or entirely wreck this grand jury
investigation"
SAT,VVV TIAuu NudTScUs
The Detroit case involves an
Indictment returned early in 1914
charging Norman E. Miller, an
industrial engineer and designer,
with defrauding the Government
of $4,000 in charges for work on
Government contracts.
After numerous delays, during
which Mr.. Miller changed law
years several times, the case
finally was dropped in October,
1850. The Government lost four
of its key witnesses during the six
year hiatus.
Mr.. Caudle's name appeared on
one Of the letters read into the
record last week. Replying to a
letter from one of Mr.. Miller's
attorneys in August, 1945, Mr..
Caudle suggested the defense
lawyers be given opportunity
within reason" to present facts
bearing on the truth or falsity
of the charges in the indictment.
Mr.. Caudle was fired by Presi-
dent Truman for engaging in
Outside activities" not in keeping
with his duties as chief tax prose-
lcutor.