Evening star., 1953-05-15
Explanation Of Fee
Lies With GrunewaId
House Prober Says
BY the Associoted Press


BY the Associated Press
House tax fraud investigators
left it up to Henry w. Grunewald
today to explain or to leave a
mystery the disposition at $50 900
or 100000 in cash a retired New
York businessman said he gave
the reputed Washington wire
puller.
William H. Wander Poel. a for
mer official of the Union Carbide
& Carbon Corp, testified yester-
day he paid the money to Grune-
wald in 1889 as a fee for supposed
legal aid in settling a tax prob
lem
But Counsel John E. Tobin of
the investigating Ways and
Means Subcommittee stated the
money did not appear on Grune-
wald's income tax returns for
1889 or 1910.
Committee Washes Hands.
Grunewald, who says he was
friendly with many former Off
Gals of the Bureau of Internal
Revenue, has been questioned at
length by the subcommittee
Pleading illness, he missed a
scheduled appearance yesterday
and so was not present at Mr..
Wander Poel's account of the in
cident.
The committee in effect
washed its hands of him here
after. Chairman Kean an
nounced that investigators have
been "considerate of his al
legged illness" up to now, but
that if he expects to testify in
the future it will be up to him.
Mr.. Kean said the committee no
longer will wait on his con-
Venience.
Mr.. Wander Poel was the first
witness to come before the COM
mittee and testify to handing
GruneWald money in connection
with a tax case. Grunewald has
repeatedly denied ever inter-
fering in tax cases.
Met Grunewald in 1917.
The witness testified he didn't
know anything about the case,
which involved his father-in-
laws estate, but agreed to go
along with Grunewald on the
basis of a fee of Is per cent of
any tax savings.
Mr.. Wander PoeI said he had
known Grunewald in 1917 when
both were Justice Department
agents, and thought he was "all
right"
He said he hadn't "the faintest
idea" how Grunewald knew there
were tax problems involved in
the estate, which was being
settled in Santa Barbara, Calf.
He just indicated to me he
knew some capable lawyers here
in Washington who were better
than the lawyers in California
who would handle the case for
Is per cent" he said.
Asks Settlement in Cash.
After the case was settled, Mr..
Wander Poel said, GruneWald
came to his Office to claim the
fee. He said an attorney had
computed it at between $4,000
and 100000.
He said he offered Grunewald
a check, but that Grunewald
asked for cash. Mr.. Wander Poel
said he acquired the money in
packets Of 500 bills, placed them
in an envelope, and handed them
over to Grunewald.
He said thank you very much,
and walked out. He never even
counted it," Mr.. Wander Poel
said.
Committee Counsel Tobin said
the tax case rested on a decision
to make an 100000 trust fund
part of the estate of the late
Cornelius K. G. Billings. Mr..
Wander Poel's father-in-iaw.
AS such, it would have been
subject to estate taxes amount
ing to about 100000, Mr.. Tobin
said, adding that at Is per cent
Mr.. Wander Poel shouldn't have
paid as much as he did"
Earlier Ruling Reversed.
Mr.. Tohin said that at about
the time Grunewald approached
Mr.. Wander Poel, tax agents
changed their minds" and re-
verSed a previous decision to
make the trust subject to estate
taxes.
MIR. Tobin said this was un-
usual, because the Internal Rev
enue Bureau was then challeng-
ing in the courts previous de-
cisions exempting such funds
from taxation. Normally, he said,
a settlement would have been
withheld pending legal de-
ciSion.
Mr.. Tobin also told the COM
mlttee that so far as staff in
vestlgators have been able to
learn" there were no other law
yers who represented the estate
except the California lawyers"
NlR - ~