Evening star. [volume] (Washington, D.C.) 1854-1972, 1953-03-23
Iozia Tax Figure Says
He Saw CaudIe for
Democrat Backer
By Robert K. Welsh

Joseph i. sherman, VINO SAID
he got more than $4,000 from a
New Jersey businessman in
volved in a tax investigation,
testified today he talked with
Justice Department tax officials
about another man who con-
tributed $1,000 to the Demo-
cratic campaign fund.
The man escaped prosecution.
Mr.. Sherman. an Alexandria
resident, who described himself
as a manufacturers agent, APP
peared before a House Ways and
Means Subcommittee investigat-
ing the tax case of Garry D.
LOLA of Paterson, N. j.
He refused on grounds of pos
sible self determination to an
sWer questions about his own
tax affairs. The subcommittee
reported he did not file any re-
turns during the last six years.
Borrowed $500.
The witness disclosed, how
ever. that he not only was en-
ployed by the Iozia firm in 1850
under a $1,000 retainer and a
$300-a-month salary, but also
borrowed $1,000 from the COM
pany's tax lawyer, Paul Arnold.
He said he has not repaid the
loan. He explained that he used
the money for personal expenses
to campaign for a Democratic
friend running for Federal Office
in the Midwest.
This testimony was almost
overshadowed by his story of
having talked with T. Lamar
Caudle. then Justice Depart.
ment Tax Division chief, about
the tax troubles of Vernord F.
Bond. Mr.. Sherman testified that
MIR. Bond contributed $1,000 to
the Democratic National Com
mittee in 1913. The subcommittee
did not bring out Mr.. Bonds
address or business connection.
1t noted. however, that Mr..
Bond never was prosecuted by
the Justice Department, not
withStanding a long investiga-
ton of his tax difficulties.
= Mr.. Sherman was a volunteer
worker at Democratic National
Headquarters here during every
election campaign since 1910. He
said he was generally with the
Speakers Bureau or assigned to
the treasurer's Office. He re-
vealed that he received $1,000
from the national committees
campaign fund for travel ex-
penSes in 1913. That was about
the same time Mr.. Bond con-
tributed the $1,000 to the COM
mittee.
Mr.. Sherman insisted that
there was no connection between
the $1,000 contribution and the
$1,000 he got from the commit
tee.
Had to Sell Farm.
In 1850. Mr.. Bond lent him
$4,000, Mr.. Sherman revealed.
He used it for a down payment
on a farm and has never repaid
the money, he said. The $780,
600 farm subsequently was sold
because he could not keep up
the payments, he said.
1ozia has testified he paid
$115,000 to lawyers and would be.
flxers to try to keep the Justice
Department from prosecuting
him on criminal income tax
evasion charges. He said some
of the money went to Mrs. Hope
Rulings Miller, former Washing
ton society editor, and to Wal
lace M. Cohen, a Washington
attorney.
Mr.. Sherman explained that
he was retained by Iozia as a
full-time employe of one of
1ozla'S plants. He got about
$3.50 under an original $1,000
retainer arrangement, but later
the retainer was increased to
$500 and he was guaranteed
$500 a month in salary when the
extent of the work became ap-
parent, he said.
''Back-Dated" Letter Involved.
Subcommittee members asked
him why he "back-dated" a let
ter in May, 1850, to Iozia, speci-
flying the financial arrangements.
Mr.. Sherman explained he did
1t as a convenience to Iozia after
rejecting Iozia's suggestion that
the payments be made in cash.
The witness declared Mr..
Arnold told him that Iozia made
direct contact" with some one
in the tax division of the JUS