Evening star., 1953-05-07
Mccarthy Unit Names
Former Tydings Aide
In Tax Fix Charge
BY the Assoeioted Press

A charge of tax-fixing at
tempts in California, with cash
as a reward and murder as a
threatened penalty, was made
today by Senator McCarthy's
Senate investigating subcommit-
tee.
The subcommittee filed with
the Senate report containing
highlights of testimony it took
behind closed doors in the case
of Russell w. Duke, West Coast
public relations man cited for
contempt by the Senate yester-
day.
The report pointed toward a
close connection between Mr..
Duke and Edward P. Morgan.
former general counsel to Sen
ate Foreign Relations Subcom-
mittee which investigated Sem
ator McCarthy's charges of
Communists in the State Depart
ment.
Charges Code Used.
Mr.. Morgan and Mr.. Duke, the
report said, exchanged code"
messages about tax cases and
prospects for more tax cases. Mr..
Morgan. however, denied having
any code arrangement with Mr..
Duke.
The report said that in the
"few cases" it cited, Russell w.
Duke received a total of $32, $50
in fees and approximately $2,500
in expenses, and Attorney Ed
ward P. Morgan received $13. 700
In fees and $3.50 in expenses.
1t said Mr.. Morgan loaned Mr.. |
Duke $500 on July %, 1949. and
added that, according to testi-
mony of Mr.. Duke and Mr.. Nor
gan, the loan was never repaid.
The Senate subcommittee for
which Mr.. Morgan was general
counsel was headed by former
Senator Millard E. Tydings,
Democrat. of Maryland, long a
favorite target of Senator Nc
Carthy.
The subcommittee in 1850 in
quired into Senator McCarthy's
charges of Red infiltration of
the State Department. The sub
committee concluded the accu-
sations were "a fraud and a
hoax"
Aftermath of 1850 Campaign.
Senator Mccarthy retorted
"whitewash" and campaigned
against Senator Tydings, who
was defeated in 1850 by Senator
John Marshall Butler, Republi-
can, of Maryland. The Senate
Rules subcommittee which looked
into the Maryland campaign de-
scribed efforts on Senator But
ler's behalf as of a "despicable
back-Street type"
Mr.. Duke, last reported in
Montreal, Canada, was cited for
contempt after he did not re-
Spond to a summons to appear
before Senator McCarthy's in
vestigations group last month.
The Senate ordered all facts in
the case turned over to the
United States attorney for the
District.
The Mccarthy subcommittee
report described several alleged
tax-f1xing attempts on the West
Coast. One. it said, involved
meeting in 1948 between Duke
and David Sullivan. a new en-
ploye Of the Bureau of Internal
Revenue who had been assigned
to tax case involving a $265 ,OO1
assessment against the l.. De
Martini Co. of San Francisco.
The report said Mr.. Duke has
received a $4,000 fee from the
company's treasurer and told
Mr.. Sullivan. while lunching. he
was "just the man we are look
ing for"
Says Payment Promised.
Mr.. Duke told Mr.. Sullivan,
the report said, that by accept
ing a position he would get
$4,000 check the next day and
$1,000 a month. The report
added:
Duke also told Sullivan he
would see that the mortgage on
Sullivan's home was paid and
in response to an inquiry from
Sullivan as to what action Duke
would take if Sullivan rendered
an adverse opinion on the De
Martini case, Duke answered by
saying Sullivan'S wife would not
make a very pretty looking
widow"
The report said: 1T is quite
clear that Russell w. Duke was
an influence peddler who special
lied in tax cases. In the absence
Of any legal. accounting. or
other technical ability, he used
his alleged influence with his
alleged contacts. There is no
evidence that he performed any
legitimate service to any tax