Evening star., 1952-08-30
| |Probers SET 10 DeIve
Deeper in Tax Case
Whitewash' Charges
By George Beveridqe

Dy 0eoFge beverage
House investigators today
planned to delve deeper into
charges that the Justice Depart
ment failed to cooperate with q
grand jury tax-case probe last
year. and even tried to- short
circuit it.
Disclosure Of further details on
the Justice Departments attitude
toward the st. Louis grand jury
inquiry was assured when former
Attorney General j. Howard Nc
Grath accepted an invitation to
testify.
Chairman Chelf of the House
Judiciary subcommittee said Mr..
McGrath telephoned him yester-
day from Providence R.I.0 and
offered to appear. Mr.. Chelf said
he hopes to reopen the matter
in hearings about September Is.
Others Invited to Testify.
Similar invitations were sent
yesterday to former Deputy At
torney General Peyton Ford and
to Theron Lamar Caudle, former
chief Of the Justice Departments
Tax Division.
Mr.. McGrath figured largely in
charges made by Federal Judge
George H. Moore of st. Louis in
"a deposition he sent the subcom-
mittee. Judge Moore said the de-
partment had baked at co-opera-
ton with the grand jury inquiry
he ordered. In one instance, he de-
clared, he asked Mr.. McGrath for
assistance personally and never
got a reply.
Representative Heating, Repub-
lican, of New York indicated that
the subcommittee also may get
into other matters concerning Mr..
McGrath's administration as At
torney General, when he gets in
the witness chair.
Figured in Testimony.
Mr.. Ford and MIR. Caudle figured
in the testimony in connection
with the departments dispatch
of Ellis N. Slack to st. Louis in
March of last year. Mr.. Slack,
now acting chief of the Tax Di-
vision, was accused in Judge
Moore's deposition Of fostering a
report that would bring the grand
jury inquiry to a close. Mr.. Slack
denied the charge.
Meanwhile, the subcommittee
plans further hearings next week.
Yesterday, it spent all day airing
Ia war fraud case, which hung
fire for six years in the Justice
Department before it was closed
without termination Of criminal
or civil suits.
Mr.. Chelf said hearings next
week will cover testimony by
James Mullally. a veteran Grim
inal Division attorney, who re-
signed recently. His resignation
was accepted a day after he was
suspended by Attorney General
McGranery. pending an investiga-
ton Of outside activities"
Detroit Firm Involved.
Yesterdays hearing involved
Norman E. Miller and Associates,
Inc. Of Detroit. q large wartime
engineering, drafting firm, which
had numerous military subcon-
tracts. A $4,000 fraud claim was
filed in March, 1914, and later q
civil claim was fled. But the GRIM
inal case was dropped in October
1850. and the civil case died in
January. 1851.
Subcommittee Counsel Robert
A. Collier led Justice Department
lawyers through 43 official docu-
ments to bring out an amazing
story Of delays and setbacks in
the handling Of the case.
The case was cited by the SUBJ
committee as an example that the
Justice Department has been
most dilatory in prosecuting GER
tain cases." Mr.. Collier pointed
out that it was selected because it
involved virtually every type Of
delay involved in such matters.
Numerous times, the testimony
brought out. the defendants were
granted special conferences. FIRE.
quent changes Of defense at
torneys were made, and there were
implications Of political pressure
and favoritism. In addition, court
delays set back the case.
Spent Years on Case.
However. Franklin Knock, a
Justice Department lawyer who
spent years on the case, said it
began to fall of" from its be-
ginning as IAN excellent case
about 18 months after it was in
stituted. First, he said, the Gov
ernment began to lose key wit
nesses. Later, he said, the Navy
Department reversed procedures
and allowed the defendant credit
for some of the employe time
sheets he had been accused OF
padding.
Relatively early in the case, 1t
was brought out. FBI Director J.
Edgar Hoover urged that it be
brought to trial. Two years later,
in answer to queries, Mr.. Hoover
was being, told the case was "still
under consideration"
Mr.. Chelf said the case was q
clear-cut example 'of too much
outside interference on the inside
and too much inside interference
on the outside"
/ Both he and Mr.. Keatine
lpraised Mr.. Knock for his persist.
lent efforts to bring the case tt
an early settlement benefitine
the Government. He had testi.
fled that, during the last year.