Evening star., 1953-08-04
AttorneySdys
DemOCratsGot
$4,000 Of Fee
Former Committee
Counsel Is Facing
Quiz in Tax Case
BY the Associated Press

BY the Associated Press
Welburn S. Mayock said today
he gave the Democratic Party
$4,000 of a $685. cash fee he
got in 1948 for obtaining a IA
vorable ruling from the Treasury
in an income tax matter.
Mr.. Mayock, former counsel
for the Democratic National
Committee, made the statement
to newSmen before a scheduled
appearance before a House Ways
and Means subcommittee.
William S. LaSdon of Kato-
nah, N. Y, drug manufacturer,
told the investigators yesterday
he paid the lawyer $65,Oe0 in
cash after Mr.. Mayock got him
a favorable tax ruling.
He Paid in Cash.
The subcommittee is investi-
eating charges of undue influ-
ence" on tax cases by high
Treasury officials. Mr.. Lasdon
testified he paid Mr.. Mayock in
currency at the lawyers request.
Today Mr.. Mayock told news
men "it is true" that $4,000 of
hsi fee went to the Democratic
Party.
He said he did not wish to talk
further about the case until he
went before the subcommittee
At that time, he said, I'll tell
the truth and not try to evade
or avoid the responsibility for
my conduct"
iii not try to involve any
one unnecessarily but I'll tell the
truth and shame the devil Mr.
Mayock added.
Testifies About Payment.
Mr.. Lasdon, president of the
Nepara Chemical Co. of Yonkers,
N. Y. testified yesterday he paid
Mr.. Mayock $65,000 cash less
than three months after Mr..
Mayock took the case on a con-
tingent fee basis.
Mr.. Lasdon denied ANY Sug-
gestion of a bribe or political
contribution" He said he
thought it rather unusual"
however, that Mr.. Mayock asked
payment in cash.
He said William Solomon of
New York arranged a meeting
with Mr.. Mayock after Mr.. Las
don's own attorneys failed to
obtain a tax ruling, and, in fact,
had advised against pressing his
application on grounds it would
be rejected.
Mr.. Lasdon told the commit
tee he met Mr.. Mayock in July.
194S, and that the favorable tax
ruling was handed down in Sep
tember, 1948.
Tells Of Phone Call.
Karl r. Price. then an attor-
ney in the Internal Revenue Bu-
reau, testified that in August,
1948-shortly after Mr.. Mayock
entered the caSe-former Assist
ant Secretary of the Treasury
Edward H. Foley telephoned him
urging "all haste" in considera-
ton of Mr.. Lasdon's tax applica-
tion.
Mr.. Price. now in private law
practice in Washington, testified
Mr.. Folye said John Snyder, then
Secretary Of the Treasury, had
inquired about it.
He said Mr.. Foley asked him
to discuss the case Immediately
with Charles Oliphant, then chief
Internal Revenue Bureau coun-
sci. and report whether you
would approve the application"
Says he Opposed Ruling.
Mr.. Price told the committee
he recommended against the rul-
ing, but that it was issued after
Mr.. Oliphant ordered him to
produce a justification.
Committee Counsel John E.
Tobin said the ruling in Mr.. Las
don'S favor involved income tax
savings estimated at between a
half million and ST. million.
The ruling involved Mr.. Las
don's desire to sell patent Ii
censes to a family-owned, tax
exempt charitable foundation to
benefit from capital gains taxes
on the patent royalties at less
than income tax rates.
BY selling his patent licenses
to the foundation as capital as
sets. M. LaSdon was able under
the law, with Treasury approval,
to pay at the rate of 25 per cent
instead of the income tax rate of
up to 80 per cent.