Evening star. [volume], December 13, 1951, Page A-3, Image 3

About Evening star. [volume] (Washington, D.C.) 1854-1972

Image provided by: Library of Congress, Washington, DC

                
2 More Tax Officials
Ousted From Posts as
Investigation Goes On
Two more Internal Revenue
Bureau employes have been fired
in the still-spreading tax scandal
investigation.
Samuel J. Hamway, special
agent in Detroit, and George C.
Mulligan, deputy collector in
Philadelphia, were dismissed by
the bureau yesterday. They had
refused to comply with orders
to resign because of alleged ir
regularities.
Improper Dealings.
Hamway was charged with
"alleged improper dealings with
taxpayers,” and Mulligan was
accused of "alleged improper so
licitation of a taxpayer’” and im
proper dealings.
The bureau announced last
November 28 that it had dis
charged 18 employes and had
called on 12 others to resign.
Hamway and Mulligan were
among the latter.
A spokesman said that by re
fusing to resign and being dis
charged instead, Hamway and
Mulligan now will be free to
appeal their cases to the Civil
Service Commission.
Over 50 Now Out.
More than 50 Revenue Bureau
officials have been fired, suspend
ed or allowed to resign in the
wake of the widespread scandals
that have hit the Government’s
tax-collecting system in recent
months.
The number includes six presi
dential^ appointed regional col
lectors of internal revenue. Three
of them have been indicted on
charges growing out of disclosures
of irregularities in the handling
of their offices.
One of those indicted is James
P. Finnegan, former St. Louis
collector and close political friend
of President Truman.
Many lesser employes, including
revenue agents and deputy col- j
lectors, also have been dismissed.
—
Truman
(Continued From First Page.l
torney. were named special prose
cutors.
Gives Tart Reply.
The reporter referred to that
particular set-up as the Roberts
Pomerene committee, and the
President rather tartly responded
that if he set up anything it would
be an original group.
"A Truman committee?” he was
asked.
Mr. Truman responded that
that was correct.
Asked if he had discussed the
situation with the Federal Bureau
of Investigation and whether that
agency, headed by J. Edgar Hoover,
might be brought in in an investi
gative capacity, Mr. Truman said
that he consulted everybody in the
Government and that the FBI
would continue to do its duty.
He described as unfounded re
ports that Mr. Hoover might suc
ceed Attorney General McGrath.
When one reporter commented
that a member of Congress said
yesterday that the Attorney Gen
eral should be fired, Mr. Truman
responded that he didn't think
there was any member of the
cabinet that some member of
Congress hadn't wanted to have
fired.
The President smilingly told
another questioner that reports
that Mr. McGrath was to be
ousted had not reached the White
House and he said flatly that he
was not considering any changes
In the Government.
When it was pointed out to that
Mr. McKinney had said that he
looked for the President to set up
some special organization to deal
with the scandals, Mr. Truman
replied that he couldn't answer yet
if he would do that.
Critical of Newspapers.
It was then that the President
defended the Democratic chair
man and said he wasn’t going to
pull a rug out from under him
Just because some newspaper
didn’t like him. He added, acidly,
that when ever the newspapers
Jump on an appointee, he thinks
LOST.
BILLFOLD, lady's, green, lost In cab or
at Trailways Bus Station: contained
Identification; reward. Wa. 6497. —14
BOTTOM of Shaeffer gold fountain pen
with name engraved. Wed. noon between
Press bldg, and Willard Hotel. Reward.
RE. 8503._—15
fioXER. reddish brown, female, namepiate
on collar, "Appleyard, Chattanooga.
Tenn." Reward. JA. 8-3193. —15_
ErOWN. MALE, DACHSHUND, named
Roger; reward. Wesley Heights area. WO.
842(1_—13_
LVr, yellow Persian: vie. 36th and White
haven n.w. Reward. Call WO. 8457
after 6 P.m.—16
1»RESS, black; left In Veteran's Cab Mon.
evening. Telephone AD. 1421. Reward.
__-—14_
BARRING. Jade drop: about 10 days ago;
sentimental value. Call ST. 1063 and
_SH. 8733 after 6._
GLASSES, women's folding glasses; dark
tortoise shell frames; in blue case; be
tween Gude's and 617 10th st. Reward
If returned to 617 10th._—15
GREEN LEATHER WALLET at Wood
ward’s containing Christmas money.
Please call HO. 5799. Reward._
GROWN ENGLISH SHEPHERD, male, black,
with white markings on feet. face, throat:
named "Jack"; reward. WO. 3383. —14
MUSH” SETTER wearing red collar. Va.
tags. Lost In vie. Silver Hill, Md. JO.
9-9314.___—15
Lewelry. four articles, in small
brown change purse, lost from handbag
since Thanksgiving, probably Chevy Chase
area: great sentimental value; please re
turn; reward. Call WO. 0497 between
8-9 p.m._•—13
MIXED TERRIER, male, white, brown eyes
and ears, answers to name of "Buster."
tag No. 6364; missing since Monday, lost
In vicinity of 4th st. and Pa. ave. s.e.
Reward offered. Call after 7 p.m., SNOW
DEN L. MAR8H. 214 4th st. s.e. 13»
PO( KETBOOK; brown leather: with ap
proximately $8; glasses, identifications,
gold fountain pen. keys, etc.; between
Conn. ave. and S st.. or 23rd and Ban
croft. Hyattsville, Md. Return po(£et
book and keep money. Call UN. 1-94.
—14
felNG. lady's, diamond horseshoe;. vicinity
Washington National Airport. Reward.
Finder call ST. 3881 or TA. 9587. 15«
Watch—Man’s Hamilton wrist watch, em
graved on back. "Edward T. Offutt. Jr. ’
Sat. a m. vie St. Charles Church or Lee
Shopping Center. Arlington. Va.; senti
mental value: reward. Call E. T. OF
FUTT, Jr.. NA. 2345 or OL. 4030, — 14
Wrist watch, lady's platinum, contain
ing 32 diamonds. 6 sapphires, black band;
sentimental value; reward. OR. 3806.
_—13_
S DIAMOND RINGS, in small envelope,
store tags attached; on 7th st. bet. G and
8 Kann's. AD. 7193. —13
WILL PERSON who found black corde bag
in Hecht's basement Tuesday p.m return
personal contents to MRS. H J. THOMAS,
JE 3-0134.__
Lost—Diamond clip: circle bow knot.
Liberal reward. DU. 7361. —16
LOSTi lower set false teeth on 7th street
carline going north between 6 and 6:30
Sm., Wednesday, Dec. 12. Reward GE.
493._—15_
LOST ON dec. I, 1951, somewhere In
the District of Columbia; one platinum
diamond ring containing 14 diamonds.
Reward to finder. NA. 1029. —16
FOUND.
LARGE short-haired black male dog. no
collar or tag: vie. Old Bladensburg rd.
Owner or good home. 6L. 5183 before
5 p.m. __
■MALL black short-haired female dog;
well trained; found Silver Spring. SL.
5183 before p.m.
LADY’S RING, found vie. s.e. Identify.
JO. 2-4150.
REVENUE OFFICIALS SURRENDER—San Francisco.—James
G. Smyth (left), discharged collector of internal revenue for
Northern California, and two of his aides, John J. Boland
(center), chief field deputy, and Paul V. Doyle, chief office
deputy, also discharged, pause in the corridor of the Federal
Building here. They surrendered to the United States marshal
on charges that they conspired to defraud the Government.
They were indicted by a Federal grand jury, posted $1,000 bond
each and were released. —AP Wirephoto.
he must have been right In mak
ing the appointment.
When the President was asked
if he would cite some examples of
the "drastic” action he had taken,
he said firmly that he would, and
in quick order recited that the
internal revenue collectors in Bos
ton, St. Louis and San Francisco
had been fired before their cases
came under congressional inquiry.
In each instance, he repeated,
these cases had been taken in
hand by the executive branch of
the Government and that was the
way it should be.
Then the President went on to
*ecall the Communists-in-Govern
nent furor some time ago and said
that he had devised a loyalty set
jp to handle that. Then he said
he Communists <a reference to
he New York trial of 11 top Com
nunists, presumably' were tried
and convicted by the Attorney
3eneral and that is the way it
should be.
Statement Challenged.
Raymond P. Brandt, a reporter
for the St. Louis Post-Dispatch,
challenged the President about
the case of the St. Louis collector,
James P. Finnegan. The reporter
said the case was under investiga
tion by Congress before the White
House acted. Mr. Finnegan since
has been indicted.
The President countered
promptly with a denial, declaring
that he had been trying to get
(Mr. Finnegan’s resignation for
some time before it was submitted,
but that it was difficult.
The President asked the report
er what he'd do in a case like
that and Mr. Brandt drew laughter
when he retorted, “What would
I do about Finnegan?”
Mr. Truman responded caus
tically that he knew what the
Post-Dispatch would do about any
Democrat and Mr. Brandt coun
tered by saying the Post-Dispatch
would do the same about a Demo
crat or a Republican.
Mr. Truman, who often has been
at odds with the St. Louis paper
in his long political career, said
he doubted that, remembering a
St. Louis Mayor whom he said the
Post-Dispatch loved very much.
Refers to GOP Mayor.
The reference was to a former
Republican mayor of the Missouri
metropolis.
Another reporter, seeking to
clarify the President's future
course, wanted to know if he was
indicating that he would pioceed
with any investigation he would
make through regular channels.
Mr. Truman said that he hadn't
said that. He added that he had
said the executive would do what
should be done and that he would
have to take his time about it.
The President counseled pa
tience and said that he would do
something later, perhaps this
week. He said also that new
legislation might be required.
Asked about Chairman McKin
ney's statement that the Presi
dent was angry because he felt
that he had been sold down the
river, Mr. Truman asked, well,
who wouldn’t be angry at disclos
ures about men who had taken an
oath of office.
Asked if he had reference to T.
Lamar Caudle, the Assistant At
torney General who was fired for
“outside activities,” Mr. Truman
said that he had reference to
everybody.
McGrath Statement Cited.
It was pointed out to the Presi
dent that when Mr. McGrath was
testifying before the House prob
ers, he said that he had seen
nothing wrong in anything Mr.
Caudle had done. The President
came back strongly to declare that
he didn’t believe that any key of
ficial in the Government had a
right to take an outside job. He
said that that was unethical and
if a person wanted this extra em
ployment he should keep ’out of
the Government. That situation,
he said, was one he intends to do
something about.
The President got back on the
Caudle subject and said that he
was ready to fire the Assistant
Attorney General before he did. As
the President phrased it, he had
been on Mr. Caudle for a long
time.
wnen a reporter recalled mat
Mr. McGrath was surprised by
the Caudle ouster, Mr. Truman
retorted that he doesn’t keep
books for the Attorney General,
that he keeps them for himself.
Another reporter wanted to
know why the President thought
that there had been such a flurry
of wrongdoing in the Internal
Revenue Bureau and wondered
how people who fall into evil ways
«et into the Government.
Under Constant Watch.
Mr. Truman disputed the con
tention that there was more
wrongdoing than ever. He said
there are more people in the
bureau and he added that the or
ganization had been under con
stant watch.
The President also said he’d
like to know how crooks get into
a bank and then rob the bank.
Mr. Truman also said that
whenever anybody in the Gov
ernment has gone wrong he has
had thorough co-operation from
some one on the outside.
The President also said he was
considering taking further in
v^tigative action because he
wants to show that the vast
majority of the Government’s em
ployes are honest and that he
doesn't want them smeared.
Mr. Truman said he agreed
with Chairman McKinney that
the “scandals” would not figure
in the 1952 campaign because be
fore that time they will be past
history, just as the Communists
in-Govemment issue is.
The President said firmly that
he had cleaned that one up and
that he would clean this one up.
adding that whenever it’s* been
necessary to fire anybody he
hasn't hesitated.
Follows Prediction.
Mr. Truman’s comment today;
followed a prediction by Mr. Mc
Kinney that the President would
weed out the ’’disloyal” who had
“sold him down the river.”
Just before Mr. Truman went
to lunch at 1 o’clock yesterday,
he called in Mr. McGrath, Deputy
Attorney General A. Devitt
Vanech and FBI Director Hoover
for a secret conference.
The group entered and left the
White House by a side door to
avoid reporters.
Later in the day, three top
White House aides—Administra-;
tive Assistant Donald Dawson, j
Press Secretary Joseph Short and
Charles Murphy—went to the Jus
tice Department for another and
equally hush-hush meeting.
Mr. McGrath said the Justice
officials would see the President
later in the week.
Representative Brynes, Repub
lican. of Wisconsin, a member
of the House subcommittee, yes
terday demanded the immediate
dismissal of Mr. McGrath.
The presence of Mr. Hoover at
the White House conference had
indicated the FBI would be given
a major role in looking into
wrong-doing in the Government
—a course suggested from the'
Capitol at various times.
Speedy Cleanup Demanded.
While there was no indication
directly of what Mr. Truman pro
posed to do. members of Congress
were quick to demand speedy ac
tion to clean out corruption in the
3overnment.
Senator Q'Mahoney, Democrat.
)f Wyoming said he thought the
icandals “ought to be cleaned up
is rapidly as possible” because
hey "undermine confidence of i
-he people in their Government.
From Senator Humphrey, Dem
ocrat, of Minnesota, an adminis
tration supporter, came the state
ment that “the one answer is a
very bold and drastic program of
cleaning up and cleaning out.”!
He said “every one has a right j
to expect honesty in Government.”!
Senator Taft of Ohio, candidate
for the Republican presidential
nomination, predicted in New
York that the tax scandals may.
become a major issue in the 1952
campaign.
Douglas Pins Scandal
Blame on Democrats
By th* Associated Press
TFMPE, Ariz., Dec. 13.—Senator
Douglas. Democrat, of Illinois,
says it is his belief the Democratic j
Party must bear its share of the
blame for disclosures in the Wash-!
ington investigations.
"The executive branch has been
too lax in dealing with graft,” he
said in a speech last night at
Arizona State College. "Perhaps
is hasn’t always kept close enough
touch with conditions. We have
our share of sinners.” He out
lined a four-point proposal for
curbing graft among public offi
cials. He proposed:
1. All citizens who believe in
a candidate should. contribute to
his campaign so he will not be
tied to large contributors who
demand a return on their money.
2 There should be a maximum
limit on campaign expenses, in
cluding amounts spent by inde
pendent groups.
3. Campaign costs should be
paid from Government taxes ■
rather than from contributions
from private sources.
4. Every public official and pub
lic employe who makes $10,000 a
year or more should file an annual
statement of earnings.
Fire Destroys Garage
BUTLER, Pa.. Dec. 13 (/P).—Five
families are homeless as the re
sult of a fire that destroyed a
brick garage and badly damaged a
three-story apartment house here.
Firemen estimated the loss at'
$140,000 to $150,000.
Christmas Shopping
Made Easy
There’s everything that can "be
found in town...except the
rush and crush. Come down
and shop around now!
For more Information write Room lift
Chamber of Commerce, Atlantic City, N. J.
•y ?.'
Nixon Asks Truman
For Secret SEC Study
On Empire Ordnance
By th« Associated Press
Senator Nixon, Republican, of
California pressed today to end
nine years of secrecy which veil
the findings of a Government re
port to the White House on the
stormy affairs of Empire Ord
nance Co. of Philadelphia.
Mr. Nixon made public a letter
to President Truman asking for a
copy of the Securities and Ex
change Commission report, drawn
originally in 1942 on orders from
the late President Roosevelt.
The Californian said he wanted
a Senate probe of the report and
of relations between Democratic
National Chairman Frank E. Mc
Kinney and Frank Cohen, who
headed the Empire firm.
Mr. McKinney made a "6,800
per cent profit” on a deal involv
ing stock of the Empire Tractoi
Corp., a sister to the ordnance
firm, Senator Nixon’s letter said
Profit in 10 Months.
The top Democratic official
acknowledged Monday that in
1947 Mr. Cohen paid him $68,
000 for 1,000 shares of the tractor
concern’s stock. He had bought
it 10 months earlier for $1,000.
He said he had to sell back some
preferred stock for the same $25.
000 it cost him. to swing the deal.
In Philadelphia, trustees of
bankrupt Empire Tractor in
structed their attorneys to look
into the possibility of suing Mr.
McKinney and others for profits
made in the stock transactions.
Frank M. McHale, Indiana
Democratic national committee
man and a McKinney friend, also
made a $68,000 profit. Mr. Cohen,
his wife and Mr. McHale's wife
benefited from similar invest
ments.
Insolvency Came Later.
Testimony at the tractor firm’s
bankruptcy hearing indicated its
insolvency developed two months
after the stock sales were com
pleted.
Senator Nixon wrote Mr. Truman
that the 1942 Empire Ordnance
report “is reputed to have alleged
that larceny, bribery, perjury, and
other acts of fraud had been com
mitted by certain individuals"
whom he did not name.
The SEC said all copies of
the special 1942 study were sent to
the White House and that only
the Chief Executive could release
it.
Senator Nixon told a reporter he
believes Mr. Cohen’s industrial
operations—which have been un
der fire in Congress repeatedly
since 1942—and his relations with
political figures “should be stud
ied" by the special Senate Investi
gations subcommittee of which
Senator Nixon is a member.
Involved in Turkey Loan.
He said he has independent in
quiries under way. but “I am
counting heavily on the Presi
dent's co-operation in making
that report available.”
A sidelight on Mr. Cohen was
disclosed by Herbert E. Gaston,
president of the Government's
Export-Import Bank.
Mr. Gaston said that in 1946
the bank refused to approve a
oan to the Turkish government
because the money was to be used
with a company in which Mr.
"ohen held some shares of stock,
he Vulcan Iron Works, Wilkes
3arre, Pa.
This company was low bidder
>n an $8 million contract for lo
:omotives which Turkey wanted.
Mr. Gaston revealed the bank
stated it would make the loan
>nly if Mr. Cohen placed his stock
n a trusteeship for the life of
he contract. Mr. Cohen sold his
itock and the contract then went
hrough, he said.
IHe
Oliphant Allowed D.C. Tax Case
To Die, Congress Probers Told
(Continued From First Page.)
Abraham Teitelbaum, wealthy
■Chicago lawyer.
Charged “Concoction.”
Naster, in his testimony,
charged that Mr. Teitelbaum
; "concocted” the story saying he
and Frank Nathan of Miami
Beach, a self-stvled promoter of
"deals,” had sought the money
from him to keep him out of tax
i difficulties.
After giving his version of a
brief Florida friendship with Mr.
Teitelbaum, Naster denied that he
ever asked Mr. Teitelbaum for
any money.
j The witness, appearing nervous
and holding frequent conferences
with his lawyer, Jules Yablok,
also denied ever having suggested
that Mr. Teitelbaum get himself
■a good Ihwyer. Earlier, Nathan
told the subcommittee Naster had
^related to him that he had told
■ Teitelbaum to get himself a good
"expensive” lawyer to handle his
tax case.
Subcommittee Counsel Adrian
W. De Wind asked Naster specifi
cally whether he ever discussed
■ with Mr. Teitelbaum "a fee of
$100,000 or more.”
"I never discussed money with
him at any time under any cir
cumstances,” the witness replied.
“I have no interest in the case
whatsoever.”
Queried on Nathan.
Mr. De Wind then asked if the
witness had ever discussed the
Chicago lawyer's tax case with
Nathan.
"Not to my recollection," Naster
responded.
He added, however, thaUNathan
last summer put in a long-dis
tance telephone call to him in
Florida from New York and told
: him that "Teitelbaum or some
I body was saying he < Nathan)
was demanding $500,000 from
Teitelbaum."
Representative Kean, Republi
can. of New Jersey wanted to
know why, if some one had told
Nathan of the accusation against
him, he thought it necessary to
call Naster about it.
“I don't know," Naster said.
He added that he asked Nathan,
“How come you're asking me
about it?"
“What did he say?" Mr. Kean
asked.
"Don’t Know What He Said.”
“I don't know what he said,"
Naster replied.
A moment later Naster volun
teered that “it is very evident now
that Mr. Teitelbaum concocted
the whole story.”
Naster testified that the last
meeting with Mr. Teitelbaum he
recalled was at Mr. Teitelbaum's
home in Miami Beach about two
weeks after the pair met. He said
the meeting concerned a home
which Naster had up for sale. A
prospective buyer from Chicago,
named Greenberg, Naster said,
was supposed to have come to
Florida to look at/ the home but
did not show up.
Naster said Mr. Teitelbaum put
a call in to Mr. Greenberg in Chi
cago and that "he did not seem
to know anything about the
house."
Naster said he was "angry” at
Mr. Teitelbaum "because he had
lied to me" about the house deal.
"I walked out of the house,” he
said, "and I believe that is the
last time I saw him.”
Direct Conflict.
Naster s testimony developed a
direct conflict with what Nathan
had previously told the subcom
mittee about the conversation be
Christmas Gifts for
the Gentlemen
Woodbury's Shaving Outfit, con
taining lather shave cream, after
shave lotion and shampoo, in
beautiful gift box, very spe
cial _99c
$1.98 Gillette Gift Set, containing
Gillette razor, 20 blue blades
and 2 tubes Gillette shoving
cream, very special_ $1.491
$2.00 Williams Shoving Set, con
taining shave bowl ond large
bottle of Aqua Velvo, very spe
cial ---. $1.60
$1.00 Williams Shave Bowl, spe
cial -80c
$1.50 Old Spice Shove Outfit, con
taining Old Spice shave cream,
Talc and after shave lotion,
very special -$1.201
I pt. Michelsen Bay Rum, spe
cial -75c
10 gal. Hat-Shaped Ash Tray, spe
cial - 30c
Quantitiea Limited
No Delivery
Coametica and Toilet Articlea
Subject to 20% Exciae Tax
i OPEN THIS THURSDAY EVE.
UNTIL 9 PM.
THE GIBSON CO.
917 G St. N.W.
HOLIDAY SPECIAL^^;^^
^ _ _ Including labor and
sofa & SCQ.00 zz"^ ,z:
^ Li AID ■■ ^^B where necessary.
** *» ^0 up Pick-up and delivery.
v 3-year guarantee.
I
slip $ A Q.00 lAfj?.
/“rtVCDC B tion of materials,
VrfWTEIVJ ^B^# up plain or floral.
★ HOFFMANN ★
Custom made furniture, upholsterers, interior decorators
2447 18th Street N.W. CO. 5116
Estimates given within a 50-mile radius
Factory showroom open every evening until 9 P.M.
I tween the two regarding the
'Teitelbaum tax case.
Nathan had testified that Naster
was the one mentioned as being
involved in the case. He said
Naster told him he had only
recommended a lawyer to Mr. Tei
telbaum—“ a high-priced lawyer.”
On the other hand, it was
Naster's testimony that Nathan,
and not himself, was the one
being mentioned by Mr. Teitel
baum as trying to obtain $500,000
from him to settle the tax case.
The testimony of Naster. who
once served a prison sentence for
tax fraud, was punctuated by
frequent objections from his at
torney to some of Mr. DeWind’s
questions.
Ordered to Limit Actions.
At one point. Chairman King
told Mr. Yablok that he must
confine himself to advising his
client and to cease raising objec
tions and making statements.
One of the encounters occurred
when Mr. DeWind inquired of
Naster what he had done here
last Tuesday morning after get
ting back from a week-end trip
to his Florida home.
Naster, a nervous witness who
turned frequently to confer with
his attorneys and to ask that
questions be repeated, finally said
he had conferred with counsel that
morning before coming to the
! Capitol for the hearing.
1 At first he said he would refuse
to answer when asked where the
conference took place.
Directed to Answer.
Mr. DeWind promptly asked
that the witness be directed to
answer—a groundwork procedure
for a contempt charge.
Before this was done, however.
Naster blurted out that he had
conferred "in Washington.” Under
further questioning, he testified
that he went to “the office of
Mr. Rover” but did not retain
him. Edward Daly, Washington
lawer and one of Naster's attor
ney’s, told reporters later he had
suggested his client seeing Leo
Rover, former United States At
torney here, about the case. Mr.
Daly said he did this because he
thought he would have to be in
Chicago for another case.
When Naster was excused after
more than an hour of questioning
he was directed to remain here for
another possible appearance be
fore the subcommittee.
Grunewald Won’t Talk.
Henry W. Grunewald, a some
what mysterious Washington fig
ure, refused to talk with House
investigators who visited him in
Georgetown Hospital to question
him on the “shakedown” story.
Committee Counsel De Wind
said that Mr. Grunewald. on
the advice of his attorney, insisted
on a public hearing, but said he
was too ill to go to the Capitol
for testimony at this time.
Mr. Grunewald’s name was
brought into the investigation of
the shakedown story and the sub
committee issued a subpoena for
him. He was found in George
town Hospital after a search of
several days.
Chairman King, Mr. De Wind
and two members of the sub
committee—Representatives Kean,
and Keogh, Democrat, of New
York—went to the hospital yes
McGrath Got Gift
%
From Munitions Man,
Newspaper Asserts
By th« Associated Press
PHILADELPHIA, Dec. 13.—The
Philadelphia Inquirer said today
that Attorney General J. Howard
McGrath received a $395 reducing
machine in 1949 from an Austrian
munitions maker whose applica
tion for citizenship was in the
hands-of the Justice Department.
The Inquirer said the machine,
a species of stationary bicycle,
was ordered by Antoine Gazda of
Providence, R. I„ who had been
seized and held three months by
the Federal Bureau of Investiga
tion after the Japanese attack on
Pearl Harbor December 7; 1941.
The newspaper reported that
the reducing machine was de
livered to Mr. McGrath in Wash
ington by James Caskey of Col
lingswood, N. J„ a salesman for
Exercycle of Philadelphia, Inc.,
the distributor.
Bill Fails to Pass.
A Senate bill to shorten the
waiting period for Mr. Gazda and
his wife was introduced by Sena
tor Green, Democrat, of Rhode
island, January 24, 1949, when
Mr. McGrath was the second
Senator from Rhode Island. The
bill was not passed.
The Inquirer said two days after
Pearl Harbor the Gazdas were
taken by the FBI to Ellis Island as
enemy aliens. It said Mr. Mc
Grath vouched for their "security”
and they were released under
guard until given a clean bill of
health in March, 1942.
Sold Guns to United States.
Mr. Gazda, who is 56. came to
the United States from Switzer
land in 1940. He brought exclu
sive American rights to the Swiss
terday afternoon to question Mr.
Grunewald.
May Testify Later.
They reported later that Mr.
Grunewald refused to talk in a
closed hearing. The committee
had a public health doctor
examine Mr. Grunewald and it
was reported that he was suffering
from nervous tension but possibly
could testify by next week.
The committee, however, plans
to wind up this phase of the in
vestigation this week. Mr. King
said the committee would call Mr.
Grunewald, after the San Fran
cisco hearings if it is unable to
question him before then.
WHY O
NOT f
IT COSTS NO MORE
TO PARK AT THE
CAPITAL GARAGE
1320 New York Avenue N.W.
CHRYSLER-PLYMOUTH
SALES—SERVICE
J developed Oerlikon cannon and
! established the American Oerlikon
| Gazda Corp. The Inquirer said
I it was reported he sold $75 million
worth of guns to the United States.
The Inquirer stated also that in
1946 Mr. Gazda gave $500 to Mr.
McGrath’s senatorial campaign,
and that earlier, when Mr. Mc
Grath became United States So
licitor General and went to Wash
ington. the Gazdas moved into
the Senator's 10-room town house
in Providence.
Two years ago Mr. Gazda bought
the house from Mr. McGrath, the
newspaper related.
World Economic Aid Fund
Voted Over U. S. Protest
By tH« Associated Press
PARIS, Dec. 13.—The economic
committee of the U. N. Assembly,
over strong United States objec
tions. adopted today a small power
resolution proposing establishment
of a huge new world development
fund.
A United States delegate had
warned the committee United
States support for the project
could not be counted upon. The
vote was 28 for, 20 against and
9 abstentions. The Western Big
Three voted against it, the Rus
sian bloc abstained.
Representative Mansfield, Demo
crat of Montana, American dele
gate, said the plan woudln't work
because only the United States ha*
any money at all for it and it al
ready is deeper into the purse
than any other country.
"That's undiplomatic language,”
he said, “but the truth.”
Burma, Chile, Cuba, Egypt and
Jugoslavia sponsored the resolu
| tion.
CHRYSLER
PLYMOUTH
SAL'ES—SERVICE
CAPITAL GARAGE
Direct Factory Dealer
1320 New York Ave. N.W.
— ft l
CATHOLICS
flu/fieitlic
RELIGIOUS
ARTICLES
♦ ESTI8JSME0 (Ml
♦ 7 8 It" ST N VMSHi.lt
♦ P«0Vt ME I32S
an pye i ty,mn n—j ■
- GALLERY ^ 1
Important Occasions First Tux
Make sure every detail is correct, from the midnight blue
wool fabric to the "hang” of the trousers. Our shop for
young men offers a complete formal wardrobe of precisely
right content. Tuxedos, single- or double-breasted, sizes
35 to 42 regular, 37 to 42 long, 72.00. Cummerbunds,
midnight blue or maroon, 5.50. Pleated shirts, with collar
attached, 6.50. Black silk ties, 1.50. Nylon hose, 1.50.
Shop for Boys and Young Men, second floor
Also at Spring Valley
JULIUS GARFINCKEL &> CO.
F St. at Fourteenth . Maeeachneette Ave. at 49th