Evening star., 1953-11-09
House Unit Attacks Snyder
And Foley on Tax Intervention

inStallment, the report noted
what it called particularly un-
savory situations involving some
employees of the former Alcohol
Tax Unit.
THE subcommittee found that
during the postwar period de-
cisionS on personnel matters at
every level in the unit we're
made solely on the basis of po-
litical consideration" the report
said. During this period six
district supervisorships became
vacant. Three were filled by
men who had had no previous
experience whatsoever in the
unit, and one was filled by a
low-ranking administrative em-
ploye. Another was filled by a
Well-qualif1ed candidate who was.
nevertheless. instructed by top
bureau officials to obtain politi-
cal and industry support in order
to obtain the post. The sixth
was offered to a man acknoW,-
edged to be totally unfit for the
post but to whom it had been
promised for political reasons.
Similarly there were many
instances of appointments to
lesser posts in the unit which
were made solely for political
reasons. Indeed the subcommit-
tee has found that the records
of the various candidates for
these posts usually contained
summaries of their political sup
port and nothing else"
Donald Tydings Case.
The report cited the record
of Donald S. TydingS as "a typi-
cal case of unit personnel prac-
tices during this period" Mr..
Tydings. a cousin of former Sem
ator TydingS, Democrat, Of
Maryland. was an official of the
unit but no longer is with the
agency.
"Tydlngs had been appointed
to the unit in 1888 on the basis
OF political support and through
out his career was saved from
transfer or dismissal and OBJ
tained promotion after promo
ton solely because of his politi-
cal connections" the report
charged.
Two Investigations made of
him during the postwar period
resulted in recommendation for
disciplinary action which were
ignored because of Tydings' con-
nectlonS. In fact, he was pro-
noted following each of these
investigations notwithstandine a
great mass of derogatory ma
terial contained in his personnel
file"
Henry w. Grunewald. now
serving a 90-day sentence for
contempt of Congress, comes in
for frequent and especially Sc
we're criticism in the report.
He personifies the decay Of
the Federal tax system during
the period following World War
II, the report said. HE had for
many years been employed as a
confidential secretary by a
wealthy insurance executive.
Through this connection Grune-
valid became acquainted with
many important and influential
men in both the public and busi-
ness life of this country. He
uater set himself up as an in
VeStlgator and public relations
man in Washington. specializing
In the collection of uncompli-
mentary information on the past
life of his subjects.
Cases Under CaudIe.
THE fact that a man like
GruneWald could enjoy friend
SHIPS with most of the high off,
Gals in Federal tax administra-
ton is itself an indication of the
moral climate in which tax mat
ters were handled.
More Importantly, however.
The Grunewald investigation also
disclosed serious weaknesses in
our Federal tax laws which en-
abled GruneWald to Illustrate at
,emptS of bureau agents to audit
his returns"
Much of the reports first in
'tallment deals with the handling
IL criminal tax fraud cases in
he Justice Department when T.
lamar Caudle was Assistant At
.orney General in charge of the
Tax Division.