Evening star., 1952-03-22
Revenue
Continued From First Page0

| ,
atmosphere" at the Mayflower
Hotel. He said the information
indicated the conference was at
tended by MIR. Grunewald and Mr..
Grunewald's chauffeur. Charles
Burke; Russell Brown, president
then Of the American Distilling
Co., and a group Of Washington
whiskey dealers.
The agent said it was the Gov
ernment's information that the
conference resulted from "a prop
osition" made by Mr.. Burke to a
local whisky dealer named
f"Aaronson that he could obtain
carloads OF scarce liquor.
Sat at Two Tables.
The witness said Mr.. Grunewald,
MIR. Brown and Mr.. Burke were
seated at one table and the local
men at another. with an inter-
mediary going back and forth be-
tween the groups in the discussion
of the proposition and financing
that totaled about $500, 900. ac-
cording to information the bureau
received.
Mr.. HarzenStein said the liquor
dealers financial hackers refused
1T as an outright black market
proposition" MIR. Harzenstein said
the tax people were informed that
MIR. Grunewald was referred to as
the Prince" and seemed to have
full authority. For that reason.
he added, the agents sought to find
out who he was "since we had
never heard Of him." and assigned
Mr.. Gill to shadow him.
Maloney's Aid Sought.
Mr.. Gill testified he learned
from 1t. Joseph Shimon of the
Metropolitan Police that Mr..
Grunewald was a friend Of Mr..
Maloney. then a special assistant
to the Attorney General. As q
result Of that information. Mr..
Harzenstein said, a conference
was arranged with Mr.. Maloney in
an effort to enlist his support in
getting a statement from Mr..
Grunewald.
According to a memorandum
introduced at the hearing, Mr..
Maloney told the tax unit agents
that he had talked with Mr..
Grunewald about the whisky
black market and that Mr.. Grune-
waid had told him he was not
dealing in the black market"
The memorandum said Mr..
Grunewald explained his meetings
with the liquor people by saying
that his chauffeur. Mr.. Burke, was
about to be married and that he
wanted to obtain a position for
him in the liquor industry.
Still Working.
'Mr. Grunewald further stated, /"
the memorandum said. ''that when
he found out who Burke was as
sociating with he dropped the
whole matter and had no further
contact with Burke"
Subcommittee members said,
however, that Mr.. Burke is still
working for MIR. Grunewald.
Mr.. Maloney, while testifying,
said he had no recollection of the
conference with the alcohol tax
lagents.
Representative Kean, Republi-
can, of New Jersey said ''bluntly'
that the lawyers testimony was
unbelievable"
It was on Mr.. Kean's motion
that the subcommittee ordered the
hearing transcripts sent to the
Justice Department for study to
see If a perjury action against Mr..
Maloney was justified.
Based ON Testimony.
This move was based largely on
the lawyers testimony in closed
sessions that he never received
a loan from Mr.. Gruenwald be-
fore 1916. In the public hearing
Mr.. Maloney admitted that he had
received several loans from Mr..
Gruenwald while in Government
service here and said he had re-
lpaid them with q 5000 check
in 1948.
Mr.. Maloney contended that
ISome details of his testimony may
have been inaccurate. but it was
mot false" He said he was unable
ito remember the dates or circum-
lstances Of the loans.
i The lawyer testified that he
lasked Senator Bridges to inter-
.lvene In the Klein case as "a per-
ISonal favor" He did this, Mr..
Maloney added. at the request
lof his law partner, I. Alfred Levy,
la long time friend of Mr.. Klein.