Evening star., 1953-10-27
Court Cancels
Report
In Ke|Ian1 Case
Document Expunged
From Record, But
Indictments Stund
. BY the Assoeioted Press


Judge Sterling Hutcheson ruled
today that the controversial
grand jury report that accom-
panied the income tax indict-
ments in the Kellam case should
be expunged from the courts rec
ords.
The highly unusual report rep
rimanded former official of the
Internal Revenue Service and
limited that a payof was involved
in a previous decision by In
ternal Revenue not to prosecute
the tax cases.
A motion to delete the grand
Jury report had been made by
Theodore c. Uhler. the retired
revenue official. who contended
that the jury's statement was
tantamount to an unwarranted
accusation that he took a bribe.
Mr.. Uhler was sectional head Of
Internal Revenues penal divi-
sion.
Indictments Not Altered.
Judge Hutcheson said he found
after reviewing all the authori-
ties cited by the attorneys that
functions of a grand jury have
been elaborately discussed but
not clearly defined"
Nevertheless. he added. II have
come to the conclusion that the
application to have this report
eXpunged be granted.
Expunging the grand jury's re-
port does not alter the indict-
mentS returned two weeks ago
against then Democratic Cam
paign Manager Sidney S. Kel-
lam and five others on charges
OF income tax evasion or con-
spiracy to evade taxes in the
operation of the Virginia Beach
Taxi Corp. Mr.. Kellam quit his
political job after being indicted.
Mr.. Uhler took the position
that the grand jury's action was
highly irregular in that its "re-
port" was neither a true bill Of
indictment nor a refusal to
indict.
Hint but No Names.
The report suggested that a
large sum Of money had been
paid to block earlier Federal
prosecution and then, without
naming names, said if this were
true the case could have broad
ramif1cationS in the State.
Mr.. Uhler was reprimanded,
by name, for his decision not to
prosecute Mr.. Kellam and the
others when he was with internal
revenue. Mr.. Uhler reached his
decision. he said later, on his
considered judgment that the
Government would be unable to
obtain convictions.
United States Attorney L.
Shields Parsons, jr., told the
court that the grand jury which
returned the controversial re-
port clearly had the legal right
to do so.
Acceptance at Discretion.
At the same time, he said, ac-
ceptance of the report would
lie within the discretion of the
judge.
Mr.. Parsons took the posi-
ton that today's proceeding, in
which attorneys for Mr.. Uhler
asked that the jury report be
expunged, represented a legal
controversy between Mr.. Uhler
and the court, with neither the
United States Attorneys office
nor the grand jury a proper
party to the dispute.
The indictments, coming with
in three weeks of the November
3 election for Governor, imme-
diately touched of cries Of
smear politics" by the Demo-
cratic leadership and prompt
denials by the Republicans
with their first United States
Attorney in Office in Virginia in
years-that politics had any,
thing to do with it.
Byrd Sees Political Motive.
Mr.. Kellam, Thomas B. STAN
ley. Democratic candidate for
Governor, and Senator Byrd,
head of the Virginia Democratic
organization, all said it was ap-
parent from the timing of the
preSentments to the grand jury
that the move was politically in
spired.
But G. o. P. Candidate Ted
Dalton-along with other lead
erS in his party-Said they didn't
think the indictment of Mr.. Kel-
lam should be campaign issue.
However, Mr.. Dalton made it
plain he would be content to
make an issue of it If the Demo-