Evening star., 1952-02-28
1ax Scandal probOrs
Plan Showdown Soon
On New York Inquiry
By Cecil HOIIand

by Cecil Holland
House tan investigators are
planning a closed session within
q day or two feF q showdown 0n|
what 70 DO abeut q possibly en-
pleslye inquiry Into scandals In
the New YeFk area,
A sharp, baekAtaae fght Ia Te,I
parted underway within theI
eeVen'ENan King subcommittee re-
gardlng its Investigation that hasI
produced 0 rift with the Treasury
and Secretary Snyder,
At least two members Of the
subcommittee - Representatives
Keogh of New York and o'nrien
OF Illinois, both Democrats--are
said to favor bringing the far.
reaching tax Investigation TO an
immediate close.
Appeal 10 RAybuFn.
They are reported TO have up.
pealed 10 Speaker Rayburn TO
take q hand In closing out the
inquiry.
Representative King, Democrat,
Of California, the subcommittee
chairman, returned 10 Washing.
ton yesterday after conducting
hearings In San Francisco and
held q conference with Mr.. Ray
burn,
There was no announcement
regarding what was discussed Al
The conference and hethiha 10
indicate that The New YeFk In
curry, involving several former
hleh effelals In the seaRdalshit
Internal Revenue Bureau, weuld
be called on,
Mr. keegh IA said 10 take the
position that there IA no need
tor the subcommittee 10 continue
with its New York Investigation
since the Justice Department has
convened q Federal grand jury In
Brooklyn TO lock specifically into
tax matters,
The gFand Jury was ordered
while the subcommittee was In
the midst OF the San francisco
hearings, The action brought
Representative King q charge that
the grand jury inquiry was Or
deFed "foF the purpose Of sitting"
the suhcommittee's own prolonged
investigation In the New York
area,
Battle Over Records.
Mr.. King ordered the subcom-
mIttee's records removed from
New York and placed In custody
Of the House sergeant at arms ITO ,
protect" the House groups in 7,
quiry. The records were being
sought, II was understood, by the
grand jury.
The House subcommittee chair
man contends there was an tin.
defstandlhs with the Treasury
that matters would not be pre-
Sei1ted 10 d gfatd jury Until the
Sube6filif1ittee's investigation had
been completed. Secretary Snyder, |
Oh the 6thef hand, denied there
was any such agreement.
AT least f6uf former hlgh feves
Hue 6Itleiais are figuring III the
New Y6fk Investigation. Fhese
ore Joseph b. Nuhah, H., New
Y6Fk lawyer and former Revenue
commissioner BaHlei A! B6iIeht
f6Fhief high 6ffielal In The HeVes
1ue Bureau here and In the New
f8Fk aFeai eaFF0il Mealey, former !
head OF the Aleehel FaS UHlt, and \
James b, H. 6lSen, who headed
the New FeFk district OF the ALI
eehel Fax UnIt,
Tax Plan Faces Battle, |,
Meanwhile, PFesldnet FFpmaH'SI,
plan W FeeFganlse the Bureau of
Internal ReVenye faced GtFgng bl- :
partisan opposition In the senate
that could spell lts defeat,
Senator Geprgf, Democrat, nf :
Georgia, and Senator Millikin,
Republican, OF Colorado, intro
duced q Tei lluLian late yesterday
asking the senRlA 10 kin the plan
that already has passed the House
hurdle,
Senator George Is chairman and
Senator Millikin is ranking Re-
publican member of the Senate
Finance Committee which handles
oil tax legislation, Senator Milli-
kin also heads the conference of
oil Senate Republicans.
Senate Vote Sought.
Their resolution was introduced
90 opponents Of the presidential
reorganization proposal moved TO
obtain O Senate vote on the plan ,
before the March IL deadline. The
reorganization would 20 into ef.
feet automatically II the Senate
should not vote 1t down before !
then.
Chairman Mcclellan OF the ,
Senate Expenditures Committee,
which Is considering the proposal.
said the group would vote on the
disapproval resolution early next
week.
He also opposes the Presidents
plan. Yesterday no introduced q
bill which would eive the Treasury
Department the authority 10 set
up q reorganiSed tax.collectins
system similar 10 that proposed by
President Truman.
- II