Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-11-13
u. 5. Narcotics
Accused
Anslinger Denies
Fraud Scheme Role
By HOWARD L. JDUTKIN


"A Washington attorney today
accused Harry j. Anslinger. COM
missioner of the United States
Narcotics Bureau, of completely
in an alleged fraudulent pur-
chase-voucher scheme.
The lawyer, Paul F. Leonard
made his allegations in asking
for a delay in the trial of Frank
F. Lilly, a former official of the
Narcotics Bureau. Mr.. Leonard
is a former assistant United
States attorney. His request for
continuance was rejected by Fed
eral Judge Alexander Holtzof
in U. S. District Court.
| Mr.. Lilly is accused of making
out false purchase vouchers and
collecting funds for materials
that never were bought. He was
head Of the Office services section
of the Narcotics Bureau.
Mr.. Anslinger told reporters
the charges apparently were
the acts of a desperate man
(Lilly) grasping at a straw"
The commissioner said he had
turned the case over to the
Federal Bureau of Investigation
after evidence Of improper ac-
tivities were uncovered.
Anslinger Denies Charges
He declared the assertions
made in court concerning him
are completely false" He said
he stood ready to be a witness
in Lilly's trial at any time.
Mr.. Leonard told Judge Holt
zoff he had submitted a state
ment to the Secretary of the
Treasury which we feel in
substantial Justice in this case
requires full investigation of
matters pertaining to allie
cations as they are contained in
the indictment"
The attorney continued: I'VE
say a proper investigation such
as we hope is being made will
show that these monies either
in whole or in part were di-
rected to the personal use of
the present commissioner"
The attorney, at another point,
declared the vouchers were pre-
pared "at the direction of and
with the consent Of, either in
whole or in part, of the present
commissioner of the Bureau of
Narcotics, Harry j. AnsIinger. +"
During Mr.. Leonard's state
ment Judge Holtzof inquired:
How does that affect the guilt
or innocence of the defendant?
What you are doing is making
countercharges against a SUI
lperior officer"
Lawyer Saw Gasch
Later Mr.. Leonard stated he
had taken the question of the
charges up with United States
Attorney Oliver Gasch last Fri
day. I'm stating the nature Of
these charges we feel the in
Iterest Of justice requires further
investigation" Mr.. Leonard
stated.
He asked the delay to allow
for completion of the inquiry.
In opposing the move for de-
lay, Assistant United States At
torney Frederick @. Smithson
asserted that the allegations
seemed to be countercharges
against possible Government
witnesses and he added that Mr..
Anslinger would testify as a
witness.
Judge Holtzof ordered the
Lilly case marked for trial and
there was a possibility it would
get under way later today.
The Treasury Department had
nothing to say Immediately as to
the alleged investigation.
According to Mr.. Smithson, a
total Of $4,000 was involved in
the voucher transactions. The
prosecutor said that Lilly would
obtain cash from various COM
panies for the purchase of
supplies, such as paper and
similar materials. in the open
market. He then would put
through fictitious vouchers TO re-
imburse the firm for the money
he had obtained for the supplies
that were never purchased any
where. Mr.. Smithson declared.
Liquor Toxes S51 Billion