Evening star., 1953-10-18
'KeIIam Affair
Is Hot Issue
For Both Sides
Dalton Is Disputed
Over Claim Scandal
Isn't Election Issue
By Alex R. Preston

ways in the States gubernatorial
campaign.
Never within the memory of
seasoned Virginia politicians has
such strong suggestion of
scandal reached so high into the
conservative Democratic organi-
Zation as when a Federal grand
jury indicted Sidney S. Kellam,
campaign manager for Democrat
Thomas B Stanley, for income
tax evasion.
Coming at a time when Re-
publicanS were making their
strongest bid since the Civil War
to capture the Governors chair,
the indictment of Mr.. Kellanr
along with a supplementary re-
port by grand jurors, seemed to
strike the chances of MI. Stan
ley a mortal blow
Jury Hints Bribery.
For, in reporting on its de-
liberations on the Kellam case
which also involves four other
stockholders and an auditor for
Virginia Beach taXicab COM
pany. the grand jury referred to
possible conspiracy in high
circles" 1t said criminal prose-
cution of the case seemingly
had been evaded by the payment
of large sum of money"
eff true" the jurors went on,
"the ramif1cations, potentialitieS
and possible repercuSsionS could
be far-reaching throughout the
State"
Simultaneous with the resig-
nation of Mr.. Kellam, Demo-
cratic strategists attempted to
turn the situation in their favor
by laying the blame on the Re
publicanS.
State Senator Ted Dalton, the
Republican opponent of Mr..
Stanley, said he didn't regard the
Kellam case as a campaign is
sue, but if my opponent wants
to make it one then I am
willing to answer" Other Re-
publican leaders joined in the
chorus of denials.
Senator Robertson Explains.
Yesterday Democrats seemed
to be abandoning the point as
Senator Robertson, Democrat. of
Virginia, let it be known that
he had arranged an appoint
ment in 1949 for Mr.. Kellam and
w. F. Hudgins, another indicted
cab company Stockholder, to see
"a relatively minor official" in
the Bureau of Internal Revenue.
Senator Robertson said he eX-
tended them the same courtesy
he gives to any of his constitu-
ents in arranging appointments
with Government officials.
Representative Abbitt, who
heads a flve-man committee that
took over Mr.. Stanleys campaign
from Mr.. Kellam, was asked yes
terday to comment on Mr.. Dali
tons statement about issues. Mr.
Abbitt said:
1T is our intention to put on
as vigorous a campaign as we
know how. We will base our
campaign on the record of the
Democratic Party and of Tom
Stanley as an individual. I don't
see how the Kellam case has
anything to do with the cam
paign."
In another development yes
terday, C. Leonard Fisher,
grand jury witness. took full re-
SponSibility for initiating the
complaint against the company
and its five stockholders.
Claims Delaying Tactics
In a statement to Reporter
James Latimer of the Richmond
TimeS-DiSpatch, Mr.. Fisher re-
piled to Democrats who have
been saying that the timing of
the prosecution of the case
shows that it was politically in
spired. Mr.. Fisher said:
MY attorney had indicated
that. in his opinion, the statute
of limitations would preclude
further action after March Is,
1854. After having realized the
delaying tactics used in Wash
ington for reasons that should be
obvious to any person, l took it
upon myself to bring the issue
to the front"
Internal Revenue Commits
sioner T. Coleman Andrews,
reached IN Chicago, commented
on Mr. Fishers reference to a de-
lay. He said this was "a grossly
erroneous" assumption by Mr..
Fisher.
Mr.. Andrews, prominent
member of the Byrd organiza-
ton who was appointed by Pres
ident Eisenhower. said that as
far as he knew Republicans had
nothing to do with initiating the
Kellam case.
Tax Records to Be Studied
State Tax Commissioner c. H.
MorriSSett said his department
would examine Virginia income
tax records of the Beach Taxi
Service, Inc, owned by Mr.. Kel-
lam and his associates, to de-
termine whether a deficiency ex-
lists.
Mr.. Kellam said he had only
a small interest in the taxi COM
pany, which, along with four
other stockholders. was accused
in the Federal indictment of fill
ing false tax returns from 1914
through 1947 and underpayment
of nearly $4,000 in taxes.
Leaders in both parties were
unable to agree on how the
Stanley-Dalton campaign will
be affected by the rapidly de-
veloping events. Certainly. the
events have the State in an up
roar.
A concern previously expressed