Evening star., 1952-02-14

OF Internal Revenue into GER
tain matters In the New York
area. information developed by
these agents was submitted to
the Department Of Justice for
such action as it saw at to take,
Denies Interference.
("The Treasury Department
has never sought to interfere in
any way with the activities OF
the King subcommittee. On the
other hand, the Treasury has
sought to- cooperate with the
subcommittee In every way pos
sible.
C"Bureau Of Internal Revenue
agents who carried out the New
York investigations were moi
loaned to or assigned to work
under the direction Of the Kine
subcommittee. These agents
continued to work for the Bu-
reau Of Internal Revenue under
the direction Of bureau officials
and the results Of their work
were to be reported to these
bureau officials. These agents
have supplied to the subcom-
mittee full information ON the
progress Of their work.
. Files Made Available.
("The Bureau Of Internal Rev
enue. in furtherance Of the
agreement to fully Cooperate
with the King subcommittee,
has made available to the SUBJ
committee all its files, as well
as reports developing in current
Investigations.
("All information which the
bureau has. in the usual course
made available to the Depart
ment Of Justice was made known
to the King subcommittee.
"(We expect to continue to
Cooperate with the King SUBJ
committee.")
(Revenue Commissioner Dunla,
meanwhile. charged that file
moved by the subcommittee fror
New York to Washington-con
tanning agents documents-belon
to the bureau and not the sub
committee. He said the Hous
groups action Is unprecedented
I never heard of such q thin
before.")
The exchange with the Treasur
developed as the subcommis.te
pushed ahead with its investiga
ton of the San Francisco collec
tors Office with these develop
/. John Malone. suspended Ia
official here, and Brother Of vii
liam Malone, chairman Of the Sal
Francisco Democratic Committee
was indicted on fraud conspirac
charges In connection with tn
alleged back-dating Of excise ta
returns. A drug firm and 1t
secretary were, indicted with hin
Tax Probe Not Pursued.
2. The subcommittee receives
testimony that an investigation Q
the 1946-48 tax returns Of Georg
T. Davis, prominent San Fran
cisco attorney and Northern Cali
fornia manager for President Tru
mans 1948 campaign was no
by revenue agents despit
a request by immigration authori
ties here.
8. Mr.. King said Attorney Davi
failed to take advantage Of q sub
committees offer to explain dis
crepancies between his bank de
posits and reported income for tla
three-year period. He added tina
the subcommittee had been unabl
TO locate Mr.. Davis to serve
subpoena.
The subcommittee carried aheaa
with It's San Francisco inquir.
despite the pressing demand
made on Its attention by the de
velopments In washington owe
the projected grand iliry investi
cation in the New York area.
First Formal Comment.
His statement was the first for
NAL comment he has made on TIL
proposed action. The statemen
follows:
Press reports Of statement
made by officials Of the Treasur.
Department and Of the Depart,
nent Of Justice concerning tll
steps which have been taken {,
safeguard vital evidence In thl
dles Of the subcommittee on ad
ministration Of the internal reve
nue. laws make It desirable IA
me to explain the reasDns tha