Evening star., 1953-08-05
By Crosby S. Noyes

House investigators today con-
tinued digging into the case of
Washington tax lawyer whose
interceSSion with the Treasury
Department in 1948 brought a
$4,000 contribution to the DEM
ocratic Party and a favorable de-
cision to his client.
Scheduled to testify at this
afternoons session of the Ways
and Means subcommittee was
Louis Markus, New York busi-
nessman who helped arrange the
transaction and received a fee of
$3.50, according to the testimony
of other witnesses. Still to be
called for questioning are Ed
ward H. Foley. former Assistant
Secretary Of the Treasury: Karl
r. Price, then an attorney in the
Internal Revenue Bureau and
William Soloman, New York in
surance man. who received the
same fee as Mr.. Markus. .
NO ran 70 Cal snyder.
Subcommittee Chairman Kean
Of New Jersey announced there
was no plan at this point to sub
poena former Treasury Secretary
Snyder. If he wished to appear
voluntarily. the chairman said
the committee would be glad to
hear from him.
At yesterdays hearing, Wash
ington Attorney Welburn May
ock told the committee he called
on Secretary Snyder on two
occasions to argue the legal case
for his client, New York drug
manufacturer William S. Lasdon.
He emphasized. however. that
he did not mention the proSpec-
tive contribution to the Demo-
cratic campaign fund at the
time.
In the course of the explosive
and somewhat histrionic session,
this is the story that Mr.. Mayock
told the subcommittee:
In 1948. just before the time
Of the Democratic convention in
Philadelphia, Mr.. Mayock was
serving as a volunteer legal coun-
sci for the Democratic National
Committee. Through Mr.. Mar
kus, a client of his, he had been
introduced to Mr.. Soloman. Mr..
Soloman. in turn, told him about
Mr.. Lasdon, who was having
difficulties with the Internal Rev
enue Bureau over a tax case. It
was suggested that if Mr.. May
ock could secure a favorable rul-
ing, a substantial contribution
to the party Golfers would be
forthcoming.
S65,OO0 Fee Set.
Mr.. Mayock said he had un-
dertaken to raise $50, 900 for the
campaign fund. The sum finally
agreed on as a fee with Mr.. Mas
don was $65,000. The difference
was to be divided between Mr..
Markus, Mr.. Soloman and Mr..
Mayock.
The deal was to be in cash,
and there was no written agree
ment.
Il was hopeful that the matter
would never become a matter of
public knowledge" Mr.. Mayock
told the committee. Writings
have a way of showing up Curl
ouSly at a later date. I wanted
to avoid the appearance of evil"
With no further prompting,
Mr.. Mayock continued:
"I took a chance. I see no
reason to whine about it now.
much money in cash, with no
The tDemocratic) party was in
desperate shape and took a
chance. If what I did was ille-
gal. the blood be on my head"
Refers to Diary.
The witness referred to his
diary to explain his meetings
with Treasury Secretary Snyder:
August 17th," he read. ITO
Secretary Snyder. Good meeting. !
I was little abrupt. but can't
be too diplomatic in a legal dis
cuSSion. His department is
wrong. They admit I am sound
legally, but I have no way to
force them to do their duty"
Although admitting that Mr..
Lasdon undoubtedly hired him
for his political position rather
than his reputation as a lawyer,
Mr.. Mayock insisted that his
argument with the Secretary
was entirely on a legal basis. |
Any other approach, he said, |
would have been bad judgment. |
II have found that party off,
cials, far from deferring to you,
tend to rare back" if approached |
on political basis, the witness
declared.
Mr.. Mayock said he could not |
recall discussing the case with |
other Treasury officials. although |
office logs secured by the COM
mittee indicate conversations
with both Mr.. Foley and Mr..
Price.
The favorable ruling, issued |
in September, involved savings |
up to 81 million for Mr.. Lasdon,
according to subcommittee coun-
sci John E. Tobin..