Evening star., 1952-10-31
Tax Case Probers
Accuse Dunlap Of
Spurning Subpoena
By Cecil Hollond

A long standing Squabble be-
tween House investigators of tax
scandals and the Treasury was
out in the open today after in
vestigators charged that officials
at the highest levels of the
Treasury Department" had dis
played IAN unusual degree of in
terest" in $50 million tax refund
case.
The controversy was revealed
when the House Ways and Means
subcommittee issued a sizzling
statement charging that Revenue
Commissioner John B. Dunlap
''has just dishonored" a subpoena.
The subpoena, the subcommit-
tee said, called for the production
of transcripts of telephone con-
versationS between Charles Oil
phant former general counsel of
the bureau, and Treasury officials
regarding an excess profits tax
refund claim filed by UNIVERSAL
Pictures, Inc.
I'VE have learned that this case
received expeditions handling,
both in the field and in Wash
ington," the subcommittee'S state
ment said, land was the subject
of frequent conversations in which
Charles Oliphant was a partici-
pant"
Denies Receiving Subpoena.
In Seattle to attend installa-I
tion of new tax officials, Mr.. Dun
lap said:
81 never have received a sub
poena on any subject. It is al
complete misstatement. We have
given them 100 per cent co-opera-
tion and we will continue to do SO.
I won't make any other COM
ment."
The subcommittee's statement
was issued jointly by Representa-
tive King, Democrat. of California.
the chairman. and Representative
Kean of New Jersey. the ranking
Republican member.
The statement mentioned no
names OF Treasury officials. Asked
if it was meant to include Sec
retary of the Treasury Snyder, h
committee aide emphasized that
1t said Officials at the highest
level of the department.
The squabble over these partic-
ular transcripts has been going
on for months. Similar tram
scripts were supplied the subcom-
mittee last December in it's sensa-
tional investigation of former AS
sistant Attorney General T. Lamar
Caudle.
Treasury Reverses Stand.
Thereafter, however, the Treas
ury reversed itself and refused to
make available to the subcommit-
tee the records of Mr.. Oliphant'S
telephone conversations regarding
the Universal claim for a tax re-
fund.
Representatives King and Kean,
in their statement, said previous
investigations by the subcommit-
tee "have disclosed Irregularities
on the part of officers of Universal
Pictures in connection with the
claim, and added: .....
while this claim was under
consideration. officers of the COM
pany provided the revenue agent
assigned to review the justice of
the company's claim with chauf-
fered car, free airplane transpor-
tation for his wife, free hotel ac-
commodations, and other lavish
entertainment. Thereupon,, the
agent recommended allowance of
a refund 10 times in excess of that
which was finally approved by the
excess Profits Counsel of the bu-
reau."
Settled for So Million.
That indicated the $40 million |
claim was settled for 50 million.
The subcommittee aired the
case to some extent in public
hearings last March and identified
the revenue agent receiving "lav-
ish entertainment" at the expense
of the company as Adrian Ash of
the bureaus New York Office. Mr..
Ash was reported i'll in a New
York hospital at the time and
did not testify.
Investigation Of the case con-