Evening star., 1952-09-20
CaudIe viii Resume
Testimony tuesday in
Probe Of Tax Cases
By George Beveridqe

by N5eorge Beverage
Theron Lamar Caudle today
began tlree-day intermission inl
his loquacious recital Of the top
level role he played for six years
In the Justice Department.
The 48-year-old North Caro-
linian. who yesterday dwelt onI
visits he had from favor-seeking
members Of Congress, will re-
sumo testimony Tuesday before
a House subcommittee investigat-
ing the Justice Department.
Meanwhile, Subcommittee
Chairman CheH said Attorney
General McGranery has ordered
a continuing search Of Justice files
for any records bearing on the
part the department played in a.
1851 Missouri grand jury tax case
inquiry.
Mr.. McGranery discovered and
turned over to the House group
yesterday a letter from the late
Drake Watson, former United
States attorney in st. Louis.
stating the Justice Department
approved a so-called "white-wash
report" Mr.. Watson's Office drew
up and the grand jury presented
in March. 1851.
The preliminary report was re-
jected by Federal Judge George
II. Moore. and the jury subse-
quently made q more extensive
probe in the politically hot Mis-
souri, area.
Develops as Major Issue.
The question of whether the de-
partment did, in fact, exert i'm
proper influence on the grand
jury. has developed into the major
issue of the Chelf groups inves-
tigation.
Judge Moore has quoted Mr..
Watson as saying, shortly before
his death last year, that Ellis N.
Slack. a Justice lawyer, nudgedl
him into writing the preliminary
report and approved it. Mr., Wat
sons newly disclosed letter. dated
May /, 1851, and addressed tol
Mr.. Caudle as head Of the tax
division. referred directly to ap-
proval Of the report by. your
Office"
Mr.. Caudle contended he had
never seen the letter and testi-
mony brought out that q reply
to it was prepared by one Of Mr..
Caudle'S aides.
Department officials deny they
fostered or approved the contro-
versial report. Former Attorney
General McGrath has pointed out
that Mr.. Watson-at the time he
talked to Judge Moore-was "a
very, very sick man." who knew
the Judge was aggravated because
the report was prepared in MIR.
WatSon's Office.
Gaps In Key Facts.
Mr.. Caudle, meanwhile, painted
q greatly detailed, but often made
quate. picture Of how he was ap-
preached by Senators and Repre-
Sentatives whose constituents were
in trouble with the law.
Digging into his memory, with
prompting from the subcommit-
tee, the ex-Assistant Attorney
General more often than not was
unable to come up with names,
amounts and other key points in
volved in the cases he discussed.
But on some details, including
the blood pressure Of one defend
ant. he was crystal-clear.
Mr.. Caudle directed no criticism
at any Of his Capitol Hill callers
and made plain he was always
glad to see all who wanted to see
me-" But he said he never devil
ated from his duty.
On one occasion, he said, he
held up, for about 30 days, a tax
case against a North Carolina man
on the request Of Representative
Doughton. Democrat. of North
Carolina. He said the case in
volved q man named Barnes and
. substantial amount Of money.
Victory After Delay.
After one conference with twol
lawyers and Mr.. Doughton's ex-
ecutive aide. Mr.. Caudle said, he |
agreed to hold UP the case for q |
month or so. He said no harm was
done because there was no danger
that the statute Of limitations
would run out. Anyway. he added,
he had made up his mind he
would send the case to the United
States Attorney In North Carolina
for prosecution and later did $50.
Mr.. Barnes, he said, plead guilty
and served time"
Mr.. Doughton, who is retiring
after many years service as chair
man Of the House Ways and
Means Committee, called me one
time and chided me for being a.