Evening star., 1953-10-15
KeIIam Is Indicted
In Virginia in
Tax-EVasion Case
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IdX-EVdSIOn LdSe
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mend most highly Mr.. William D.
Owens, special agent of the In
telligence Division of the Bureau
of Internal Revenue for his dill
gence and thoroughness in the
investigation and his fairness
and full and complete co-opera-
tion before the grand jury.
Reprimands UhIer.
"The jury reprimands in no un-
certain terms Mr.. Theodore C.
Uhler. former sectional head of
the penal division, Bureau of
Internal Revenue, for his re-
versal of the recommendations
to prosecute the matters we have
considered.
1T is our belief that we have
now completed our work and are
now presenting to your, sir; our
final report"
Mr.. Uhler, reached at the resi-
dence of a relative, issued this
statement today:
My original decision three
years ago against recommending
criminal prosecution in this mat
ter was based on my own con-
sidered conclusion, after a review
of all the facts. that the evidence
then available did not offer a
reasonable chance of obtaining a
conviction. It is my understand
ing that this entire matter was
reviewed in the Bureau of Inter-
nal Revenue in April and May
of this year, and that as a result
of that review three new attor-
neys reached the same conclusion
that did. In other words, a
new administration, taking a
fresh look at the case, also con-
cluded that the evidence avail
able three years ago did not offer
a reasonable chance of obtaining
a conviction"
Mr.. Uhler retired from the
revenue service December 81,
for reasons of health, after
career which began in 1928. He
has since been living in retire
ment in Florida.
The penal division of the rev.
enue service has been changed
since Mr.. Uhler's retirement to
the enforcement division.
Charge Politics.
An attorney for Mr.. Kellam
and the four others issued a
statement which implied that
the action was inspired politi-
cally and that the tax matter
had been settled some years
back"
Meanwhile, a question mark
curved around what effect, if
any, the indictments against
Mr.. Kellam would have on his
party's chances at the polls Mo-
vember 3. when it faces the
greatest test of its strength in
a generation against the Repub-
licans. The grand jury also
took note of possible conspiracy
in high circles" and likewise
hinted a possible "ramifcation."
Mr. Kellam's own statement
said the grand jury's action E. .
came as complete surprise to
me and is entirely without
basis"
Prospects appeared very slight
that the charges might reach the
trial stage before the November
3 election. A Government at
torney said Federal District Court
already was confronted with a
heavy docket of income tax cases
awaiting trial.
The procedure in such matters,
an attorney said. is for the dis
trict attorney to send the de-
PENDANTS letter requesting them
to post bond for their court ap-
pearances. The defendants are
usually given two or three weeks
in which to post the bond.
4 Others Indicted.
Indicted with Mr.. Kellam on
charges that grew out of the
operation of the Beach Taxi
Service, Inc, at Virginia Beach
were:
w. Russell Hatchett, former
town manager at Virginia Beach
who ran for the Democratic
gubernatorial nomination earlier
this year. but who pulled out be-
fore election time. He formerly
was a strong organization man
who broke with it and ran un-
successfully for State Senator on
the Peoples Ticket. He also
formerly was county commits
sioner of revenue.
w. F. Hudgins, former clerk
of Princess Anne Circuit Court
who also broke with the admin
istration forces.
Herbert A. Holt, jr.. head of
an automobile firm, former Vir-
ginia Beach Town Council men,
ber and associated with the
dominant wing of the party.
Frank L. Gresham. operator
of the taxi service, which at the
time of the alleged offenses did
most of the business at the
resort. Mr.. Hatchett. Mr..
Gresham and Mr.. Holt declined
comment, Mr., Hudgins was un-
available.
Mr.. Kellam, Mr.. Hatchett and
Mr.. Hudgins were political allies
in the county at one time. but a
rift between them developed
about four years ago. That was
when Hudgins and Hatchett
aligned themselves with the