Evening star., 1958-07-03
GoIdfine I eIIsof Giyino
Presents to Workers

again last night. He issued.
and recorded for television use
today, a statement seeking 10
Justify those business ex-
penses" he admitted having
claimed in his tax returns.
He explained that in his
business operations he deducts
hotel bills 'just the way some
big companies deduct airplanes
and automobiles and soSue even
deduct yachts" AS for the $2,-
400 rug which Mr.. Adams
previously testified he received
as q loan from Mr.. Goldfine,
the Boston textile magnate de-
clared he originally purchased
1t for his own ONCE headquar-
ters showroom. He lent 1t to
Mr.. Adams. he said, but "the
rug belongs to my company
and when he Is through with 1t
in Washington it will go on
the floor Of our showroom and
I will probably point 1t to our
customers and say: This rug
used to be in Gov. Adams
house.
AS for possible trouble with
tax authorities. Mr.. Goldfine
added: "If the bureau feels we
made a mistake, then they will
disallow those bills and we will
adjust our returns"
Mr.. Goldflne said the name
Of Mr.. Adams was on the hotel
bills, that "there was no secret
about it, and that Internal
Revenue auditors could have
seen it long ago.
Mack Is Critical
This advance explanation
failed to impress at least one
subcommittee member as the
hearing was resumed. Repre-
sentative Mack, Democrat of
Illinois. commented that Mr..
Goldfine's tax handling Of fav-
ors to Mr.. Adams apparently
amounts to Income tax eva
sion by falsely listing gifts as
business expenses" Mr.. Mack
said in an Associated Press in
terview that Mr.. Goldf1ne will
either have to declare his tax
returns were wrong or say his
gifts to Mr.. Adams. were in
tended to secure Federal favor
from Mr.. Adams!e
"The only way Sherman
Adams neck can be saved" Mr..
Mack asserted. would be for
Goldfine to take the rap for
him and plead guilty to income
tax evasion by falsely listing
gifts as business expenses.
So far as the subcommittee
record is concerned, Chairman
Harris informed reporters
earlier yesterday, it still has
no evidence or testimony of
such tax write-offs by Mr..
Goldflne and has not yet asked
for or obtained his tax records.
But Roger Robb, an attorney
for Mr.. Goldflne. remarked al
most casually to reporters soon
after the subcommittee recessed
yesterday afternoon that Mr.
Goldfine did list gifts, including
the luxurious rug, as business
expenses for tax purposes.
Harris Eyes Tax Issue
However, questions about the
tax actions promise to be in
evitable and particularly
searching. Mr.. Harris dropped
a strong hint that the subcom-
mlttee Is very much interested
in examining Mr.. Goldfine's in
1ome tax returns insofar as
they deal with matters peril
nent to the current investiga-
tion. Some Of his colleagues
said this might be necessary to
test the truth of assertions by
John Fox. former Boston news
paper publisher, that Mr.. Gold
fine gave money at various
times to Mr.. Adams IN years
past.
The subcommittee chairman
disclosed that Mr.. Goldf1ne's
lawyers this week have turned
over a considerable amount"
of documentary records but
that this does not include tax
data. Asked whether the SUBJ
committee would require Mr.
Goldflne to provide pertinent
tax records If he refused to an.
swer appropriate questions, Mr.
Harris commented: That's q
fairly good assumption"
Tax Service Interested
The Internal Revenue Ser
vice, it was learned today, is
equally interested in tax phases
of the Subcommittee's investi-
cation. While refusing to say
what the agency might do, q
spokesman said it would be
= derelict If it did not follow up
the remark of ME-. Robb con.
corning Mr.. Goldf1ne's buSines,
expenses claims. venue
, agents are attending the hear.
ing as observers. it was learned
Neither President Eisenhower
or anyone else Sat the White
House has asked for Goldfint
tax data, not has the House
subcommittee requested it, the
spokesman said. Explaining ir
general the law relating to gift.
and business expenses in max.
ing tax returns. he said q
claimed business expense mus
be shown to be ordinary, neces.
sary and reasonable before II
can be deducted. A claim of q
business expense likewise is re.
garded as meaning that some
thing was expected in return.
Query Presidents Comment
A cryptic comment by Mr.
Eisenhower at his news con-
ference yesterday likewise in