Evening star. [volume], December 15, 1951, Page A-3, Image 3

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

Image provided by: Library of Congress, Washington, DC

                
Poncet Davis Gives Up
In Cleveland; Knohl
Faces New Tax Liens
New developments have been
reported in the tax cases of three
persons—Poncet Davis, Larry
Knohl and Henry W. Grunewald—
whose names have figured prom
inently in the House investigation
of the Federal revenue system.
Mr. Davis, Akron businessman,
gave himself up to Federal author
ities in Cleveland yesterday on
three criminal warrants charging
corporation tax dodging of about
$201,000. The warrants involve
Mr. Davis as president of the Rob
bins Tire & Rubber Co. of Birming
ham, Ala., the Associated Press
reported.
Pair Traveled Together.
Charles Oliphant, resigned chief
counsel of the Bureau of Internal
Revenue, identified Mr. Davis as
a close friend and said the two
had made a number of trips in
Mr. Davis’ plane.
“That had nothing to do with
this case,” Mr. Davis told a re
porter yesterday, in refusing to
comment on Mr. Oliphant’s testi
mony.
At Wichita, Kans., it was re
ported that tax claims against Mr.
Knohl and his wife, Rea, of Long
Island, N. Y., have been increased
from $60,584.45 to $197,800.94. Tax
officials said the additional liens
were filed at Russell, Kans.
Grunewald Named in Lien.
Mr. Knohl figured in the House
Inquiry largely through his pur
chase of an airplane in a deal
which netted a $5,000 commission
to T. Lamar Caudle, ousted by
President Truman as chief of the
Justice Department’s tax division. (
Mr. Grunewald, mystery figure ;
of the investigation, was named i
yesterday in a $51,157 income tax i
lien filed in District Court here.
The lien charges that Mr. Grune- ,
wald and his wife, Christine, owe <
that sum for unreported income, ,
interest and penalties for 1950. ■
Last of 3 Babies
Shot and Slashed
By Father Dies
By th« Associated Press
CHARLOTTESVILLE. Va.. Dec
15.—Eight-month-old Linda Sue
Conley, last survivor of her fa
ther's knife and gun assault on
his three babies, is dead.
Linda’s throat was sashed with
a knife on Juiy 23—the day po
lice say Raymond Wilson Conley
went berserk and assaulted his
children. The 39-year-old ship
ping clerk has been adjudged in
sane and committed to a mental
Institution.
Physicians at the University of
Virginia Hospital said Linda would
not to able to speak but she was
expected to live. Exact cause of
her death Thursday night has not
been determined.
The other two victims were
Wilson Lee. 212, and William Em
ery, 19 months. Wilson Lee was
shot in the stomach and he died
the following day. William Emery,
w’hose throat was slashed with a
dull kitchen knife died imme
diately.
Police said at the time of the
slayings that Conley had been
separated from his wife and that
he had to stay home from work
on July 23 because he was unable
to get a baby sitter.
Revenue
(Continued From First Page.)
Ices Administration, at his Gov
ernment offices.
4. Mr. Larson told The Star
that he probably called Nathan
“a half dozen times” to get him
straight on some oil matters. He
had previously testified that he
had Nathan, a self-style promoter
of “deals,” put on a “referred list”
at his Government agency as far
back as 1948 or 1949 and had done
everything he could to keep
Nathan from telephoning him.
5. Mr. Oliphant, who resigned
last week after his name was
brought into the shakedown story,
wound up two days of testimony,
protesting that, in his long years
of service, he had “only the in
terest of the Government at heart”
and adding: “I know of my own
Integrity and my pride in my own
name.’’
6. Chairman King declared, in a
formal statement to Mr. Oliphant
and the hearing, that Government
LOST.
BILLFOLD, red alligator, black lacing, con
tained driver's permit, valuable papers
and pictures; downtown area. Thurs.
Finder please keep money and return bill
fold. HP. 7025.—1«
BOTTOM of Shaeffer gold fountain pen
with name engraved. Wed. noon between
Press bldg, and Willard Hotel. Reward.
HR 8503.—15
CAT, very lge.; long hair: black, white
feet, mouth, chest; nr. Alta Vista Gar
dens; possibly Unlv. Park. OL. 0399 after
6 p.m.—15
CAT, yellow Persian; vie. 35th and White
haven n.w. Reward. Call WO. 8457
after 6 p.m.__—15
COCKER SPANIEL, white and honey.
male; last seen Bethesda-Chevy Chase
High School. OL. 8957.
0OG—Broken harness allowed black and
tan male Airedale to leave home Fri.,
Dec. 14; also had D. C. tag and Identifi
cation cylinder on collar. WO. 2443.
—17
English SETTER, black ana white;
spayed female; lost or strayed from
Falls Church area; reward for informa
tldST JE. 3-9693.—16
GLASSES, women's folding glasses; dark
tortoise shell frames; in blue case; be
tween Gude’s and 517 10th at. Reward
If returned to 517 10th._—15
GREAT DANE, female, very thin, brlndle;
vie. Hillcrest s.e.; 2 children heartbroken
over loss. Reward for any Info, leading
to return of dog. VI. 8265, AT. 1111.
—16
IRISH SETTER wearing red collar. Va.
tags. Lost In vie. Silver Hill. Md. JO.
9-9314.—15
King, lady’s, diamond horseshoe; vicinity
Washington National Airport. Reward.
Finder call BT. 3881 or TA. 9587. 16»
KING, man's gold; blue and white stone;
lost vie. 21st and Bye n.w.; reward.
1932 Penna. ave. n.w. _—16
fAX EXEMPT CARD No. 2868 with other
misc.; MAJ. FERNANDO CALDERON,
Embassy of Peru. CO. 1734. —18
Left IN TAXI CAB. Conn. ave. and M st..
Friday. December 14, 11 a.m. Box con
tahiing^boys' camp pictures. Reward.
LOST—Diamond clip; circle bow knot.
Liberal reward. DP. 7861._—15
LOST—Brown billfold. Lansburxh store.
Thursday containing money, charge plate,
key. JP. 7-8342.__—16_
Lost on DEC. I, 1»»1. somewhere In
the District of Columbia; one platinum
diamond ring containing 14 diamonds
Reward to finder. NA. 1029. —15_
8MALI. RED DOG. mixed Cocker and
Setter, vicinity Rock Creek Hills. Ken
sington. Family pet; tag No. 10244. Re
ward. OL. 8739.
tvBIST WATCH, lady’s, platinum, diamond;
Dec. li, between Carlton and Statler.
Large reward. MCDANIEL ft RING, na.
5756. —17
FOUND.
tOXER. large brown, ears and tall clipped,
found vicinity Benning rd.. railroad
fikVto iS&.'wSA&H.9 tM lnfOrm**l0n
THE VEEP IS HOME AGAIN—Vice President Barkley waves as he and his wife alight from their
plane at Washington National Airport during yesterday’s snowstorm at the end of their trip to
Korea and defense installations in the Pacific. —AP Photo.
officials accepting lavish entertain
ment, as Mr. Oliphant acknowl
edged doing, "cannot but create
suspicion and bring discredit upon
the Government.”
7. Senator Bridges, Republican,
of New Hampshire declared in a
statement that Mr. Grunewald
“has never represented me in any
matter.” In his testimony yester
day, Mr. Oliphant quoted Mr.
Grunewald as saying he was “help
ing” Senator Bridges on a tax case
said to involve “at least six fig
ures.”
The House investigators brought;
out the records of telephone calls
with the obvious importance they
attached to them, since Mr.
Teitelbaum testified he had re
ceived telephone calls from a per
son named “Frank Watson” urging
him to go along with those seek
ing $500,000 to settle his tax prob
lems.
The records were produced after
Nathan was recalled for further
questioning and flatly contradicted
some of the testimony previously
given the subcommittee by Bert K.
Naster, Hollywood (Fla.) busi
nessman. Naster was the second
man named by Mr. Teitelbaum as
having approached him last April
in what he described as “an at
tempted shakedown.” He also
testified the men told him they
were identified with a Washington
clique of present and former offi
cials, including Mr. Oliphant and
Mr. Larson, who were seeking “aj
soft touch” from taxpayers in
trouble.
As soon as Nathan took the
stand, he was asked about a con
flict in testimony given by him
and by Naster in connection with
a telephone call Nathan put in to
Naster last July. The call was
made from New York to Florida,
Nathan testified, after he received
a, telephone call from Mrs. Shyrl
Menkin.
Nathan stuck Dy nis earner
testimony that Mrs. Menkin had
told him, in another long-dis
tance call, that Naster had advised j
Mr. Teitelbaum to get a good law-.
yer and had said that it might
cost $125,000 or more. Nathan
said he called Naster about it and
was told by Naster that he had
in mind a very “high-class”
lawyer.
Naster denied any mention of a
lawyer and said that, in the con
versation, Nathan was concerned
about rumors that he (Nathan)
was trying to get money from Mr.
Teitelbaum.
As the investigation turned to
the Hotel Washington, Nathan
denied ever seeing Mr. Grune
wald there. He said he was “very
sure” he had met Mr. Grunewald
in some hotel lobby, however,
“maybe two, three or four months
ago.”
Questioned on Call.
Mr. Adrian W. De Wind, the
subcommittee’s chief counsel then
asked Nathan if he remem
bered receiving a call at his
Florida home from a "Frank
Watson” on the morning of July
22. This was the day before Mr.
Oliphant testified he was asked
by Grunewald about the Teitel
baum case. Mr. DeWind said rec
ords showed the Watson call was
placed at the Hotel Washington.
The name of Frank Watson en
| tered testimony earlier as the
name given by a mysterious caller
with a “guttural German accent,”
who, according to Mrs. Menkin,
advised Mr. Teitelbaum to co
operate with participants in Mr.
Teitelbaum’s story of the alleged
shakedown attempt.
After Nathan denied any recol
lection of the call, Mr. DeWind
asked if Nathan remembered that
he himself put In a call the same
morning to the Hotel Washing
ton.
Looking around at members of
the committee, Nathan said in an
incredulous tone:
“I did? No, sir, I don’t remem
ber. I would positively tell you if
I knew. I don’t absolutely know
what he is referring to in any way
at all.”
However, it was in the Hotel
Washington, Nathan conceded, in
Room 424, that he met and made
his contacts with the mysterious
“Arthur.”
Nothing Came or Deals.
He “didn’t catch the last name,”
Nathan declared, but "this Arthur”
was involved “in some deals going
back and forth all the time.”
Nothing, however, ever came of
the deals, and “I never made no
deal with him at no time,” Na
than insisted. He added:
“A lot of all kinds of deals here
from different companies he
showed me and all that sort of
stufT. He had a whole room full
of it.”
“A whole room full of deals?"
asked Representative Byrnes, Re
publican, of Wisconsin.
Nathan said Arthur “was sup
posed to have an engineering firm,”
the headquarters of which was in
Room 424, with a staff consisting
of one girl. In their dealings in
which “nothing ever happened,”
Nathan said, Arthur generally was
to provide contracts for plants dug
up by Nathan.
When Mr. DeWind mentioned
the name of A. A. Brevalre, Na
I
One Dies, Three Hurt as Freight
Hurtles Backward Down Hill
By the Associated Press
L’ANSE, Mich., Dec. 15.—A
freight train ran wild backward
for 9 miles down a steep hill un
til it shot off the tracks on a
curve.
One trainman was killed and
three injured last night as the
climax to a hurtling ride on the
Duluth. South Shore & Atlantic
Line freight.
The 22-car train, pulled by a
Diesel engine, had been* heading
up a sharp grade near the upper
peninsuia village of Herman when
the brakes on a steam pusher
engine suddenly failed.
The rocking string of heavy
than identified that as Arthur’s
full title.
Asked if Arthur had an accent,
Nathan said he ‘‘talked a little
broken.”
‘‘I believe it w'as a French ac
cent,” he added.
But he could not be prevailed
upon to give his own version of
the w-ay "Arthur” talked. Nor
would he say that it was in a
"guttural” accent, associated with
the unknown "Frank Watson”
who wras said to have figured in
telephone calls to Mr. Teitlebaum.
Invoices Put in Records.
Mr. DeWind then placed into
the record six Hotel Washington
invoices, bearing the name of A.
A. Brevaire, with a notation of a
iharge to Henry Grunewald.
At the same time, he read from
i canceled check for $288.18,
signed by Henry Grunewald. The
imount, he said, covered the six
notel bills. The chief counsel also;
•ead from a notation saying, “I
ndorsed this on the Brevaire ac
:ount, Henry.”
Mr. DeWind wanted to know if
;he records "refreshed” Nathan's
nemory about either Mr. Grune
vald or Mr. Brevaire.
"No, sir,” Nathan declared. “Ij
never seen Mr. Grunewald in that
place in my life. I absolutely
didn’t. If they were friends at
that time, I positively didn’t know
It.”
At tms point, Mr. DeWind led
up.to questioning on the tele
phone calls he said were charged
to Mr. Larson by asking Nathan
if he remembered Mr. Larson's
testimony that, beginning in 1948.
he tried to "cut you off when you
sailed.” He also recalled that Mr.
Larson stated he had received as
many as 60 calls from Nathan.
The witness said he often called
Mr. Larson to ask about "oil
ieals” but gave no details of what
they were about.
Asked if he remembered re
viving any long-distance calls
from .Mr. Larson, Nathan said he
‘might have—I don’t remember.”
* Record of Calls Introduced.
Mr. DeWind then placed into
the record reports of “a number
Df Derson-to-person calls made to
you and charged to Mr. Larson.”
Those he read, covering last June,
included:
A 10-minute call on June 7, a!
5- minute call on June 8, a 6
minute call on June 13, a 5-mln
ute call on June 20, a 4-minute
call on June 21 and a 3-minute
call on June 28.
“I don’t remember those calls,"
Nathan asserted. "I swear I don’t.
I didn’t say you weren’t right. I
just don’t remember.’
A few moments later, Nathan
suggested that the calls might
have been made from Mr. Larson’s
office by “Mr. A1 Snyder,” whom
he said was Mr. Larson’s assistant.
Nathan said he had "kept both
ering Mr. Snyder about deals all
the time.”
Mr. DeWind then read records
of four additional calls during last
July, including a 20-minute call
July 13, a 16-minute call July 19,
a 13-minute call July 26 and a
6- minute call July 31. The counsel
said the calls all were reported
from “a private office line.” which
appeared to be "individually paid
for.”
Mr. Larson, reached while he
was dining out with friends last
night, said first he would have to
check his records before comment
ing. Later he called back to say
that he ‘‘must have called” Nathan
five or six times during the sum
mer.
During that time, he explained,
he was Interested in an oil-well
operation and Nathan, knowing
about it, had many persons call
him.
One call, he explained, was
about “a doodlebug”—a gadget
supposed to determine when there
is oil under a piece of land.
He said he had been required to
call Nathan several times to “set
him straight.”
Suspicious in 1948.
When he testified, at his own
request, before the King com
mittee right after Mr. Teitelbaum
mentioned his name in connection
with the shakedown story, Mr.
Larson said he had become sus
picious of Nathan as far back as
1948 and had his name put on a
“referred list.” This meant, he
*
cars, loaded with logs, picked up
speed as it shot down the hill.
Police estimated the train was
going as much as 70 miles an hour
when it hit a sharp curve near
the L'Anse depot.
There was a roar like a string
of thunderclaps as all 22 cars
crashed off the tracks. Logs were
piled along the right of way. The
pusher engine was upended, its
wheels in the air.
The fireman of the pusher en
gine, James B. Bennett of Mar
quette, Mich., was killed.
His three fellow crewmen were
injured—suffering severely from
shock as a result of the harrow
ing ride.
explained, that any war surplus
deals in which Nathan's name ap
peared. would be closely reviewed
by Mr. Larson and his general
counsel.
Mr. Larson told the subcom
mittee he had received as many
as 30 telephone calls at his office
and 30 at his home from Nathan,
despite his efforts to break off re
lations with him.
As the testimony switched away
from Mr. Larson's telephone call
reports. Nathan asked to be per
mitted to make a statement. He
then, in greater detail, repeated
an account of friendly relations he
said he and his wife have had
with Mr. Teitelbaum and Mrs.
Menkin.
He said the purpose of his
statement was to show his loss of
an explanation for Mr. Teitel
baum’s charges against him and
added:
"It's such a frame-up on me
you can't visualize—you can't
realize.”
Concluding his testimony,
Nathan told the subcommittee
that, the night before he was sub
penaed by the House group, he
received an anonymous telephone
call, warning him that he had
"better get out of the country.”
When he asked who was calling,
he testified, the receiver was
slammed down.
Seizure Orders Removed.
Earlier, the subcommittee
brought out that Mr. Oliphant,
in October, 1948, took part in suc
cessful efforts by Washington offi
cials of the Internal Revenue Bu
reau to have tax-seizure orders re
moved from the Charlotte (N. C.)
manufacturing plant of Troy
Whitehead, over objections of the
internal-revenue collector in
North Carolina.
The investigators swung into
the Whitehead tax case immedi
ately after getting Mr. Ollphant’s
account of a flight he took in Mr.
Whitehead’s private plane for a
Florida fishing expedition, in
January, 1948. Mr. Oliphant said
T. Lamar Caudle invited him on
the trip and that he considered
himself Mr. Caudle’s guest.
At the time of the fishing trip,
Mr. Oliphant said, he did not
know about any tax case involv
ing Mr. Whitehead but that Mr.
Caudle and Mr. Whitehead called
these troubles to his attention
during the following June and
October.
On October 21, he said, Mr.
Whitehead called him and said
deputies had arrived at the plant
of the Whitehead Machinery Co.
to seize it "for non-payment of
additional taxes of $44,000.” Mr.
Whitehead, the witness related,
said he had arranged to sell his
house and could raise the money
by November 1.
Mr. DeWind charged that the
tax collector in the case argued to
have the seizure go through be
cause Mr. Whitehead failed to
keep previous agreements.
The solution eventually worked
out, however, testimony brought
out, was that the deputies oc
cupied the plant in order to safe
guard the Government’s interest,
but at the same time allowed Mr.
Whitehead to continue its opera
tion without seizure orders being
posted.
Defended as “Routine.”
Mr. Oliphant defended the
solution he took part in as a
“routine” handling, and said the
taxes were paid on November 10.
Mr. DeWind also brought out
that, in a later conversation with
Mr. Caudle, Mr. Oliphant said he
did not want to “rub" the North
Carolina tax collector “the wrong
r i
WHY n
NOT •
IT COSTS NO MORt
TO PARK AT THE
CAPITAL GARAGE
1320 New York Avenue N.W.
CHRYSLER-PLYMOUTH
SALES—SERVICE
Caudle Says Story
On 'Indiscretions'
Was Distorted
T. Lamar Caudle, former Assist
ant Attorney General, yesterday
branded as a distortion a story
saying that Tom Clark was in
formed of his "indiscretions” in
1945 before his appointment to the
high Justice Department position.
Mr. Caudle, recently fired by
President Truman, issued a state
ment in what he described as
"fairness” to Supreme Court Jus
tice Clark, who was then the
Attorney General.
(In yesterday’s late edition of
The Star a headline on this story
erroneously quoted Mr. Caudle as
saying Mr. Clark was not informed
of "indiscretions” in 1945.)
His statement was:
"I note with a great deal of
interest the Associated Press re
lease, datelined Charlotte, N. C„
December 12,1951, which appeared
on the front page of The Wash
ington Evening Star and other
publications with the heading
’Tom Clark Informed of Caudle
! “Indiscretions” in 1945, Paper
Says’.
This story is so distorted that
in fairness to Justice Tom Clark
and myself I make the following
statement:
"Before being, confirmed for my
appointment in 1945 for Assistant
Attorney General in charge of the
Criminal Division, there were ru
mors about me which I had rea
son to believe were spread by Mr.
Littlejohn, the police chief of
Charlotte. 1 called all these rumors
to the attention of Mr. Clark, the
Attorney General, and requested
that the Federal Bureau of In
vestigation investigate. This was
done. In view of this fact and
before my appointment was ap
proved, I appeared before the
Senate Judiciary Committee in
July, 1945. My appointment was
|approved without debate and I
| was completely exonerated."
jTide Has Wide Effect
NEW YORK. — The Hudson
River is affected by the Atlantic
tides as far north as Albany which
i is 150 miles inland.
way,” and that he had done so
“on the other matter.”
Mr. Oliphant testified that at a
later date, Mr. Whitehead also
called him in connection with
further tax troubles and that he
j referred Mr. Whitehead to the
!collector, rather than “say a good
word” for him. Mr. DeWind said
he thought this later action—as
contrasted to the first—was “en
tirely proper and correct.”
The subcommittee then turned
to frequent trips Mr. Oliphant
took to sporting events with at
least part of his expenses paid
Included were flights to the Ken
tucky Derby in 1947 and 1951 in
the plane of Edwin Pauley, Cali
fornia oil man who. Mr. Oliphant
has testified, now has a tax case
before the bureau.
Most of the trips, however, in
cluding flights to the World Series,
ithe recent Sugar Ray Robinson
fight in New York and the Belmont
Stakes, were made in the plane
of Poncet Davis, Akron (Ohio)
manufacturer, whom Mr. Oliphant
described as a long-time friend
| and “one of the finest men I have
ever met." The witness said he
disqualified himself from taking
| any part in a tax case involving
Mr. Davis when it reached the
j bureau.
Thought Gift From Finnegan.
The subcommittee also touched
on the Polaroid camera Mr. Oli
phant received from an official of
the American Lithofold Corp. of
St. Louis.
Mr. Oliphant said he believed at
the time he received it that the
camera was a late Christmas gift
from James P. Finnegan, ousted
internal-revenue collector in St
Louis, whose name also figured in
the RFC probe. Finnegan has
been indicted on bribery charges
in connection with his tenure as
collector.
Finnegan, the witness stated,
also purchased two suits and an
overcoat at discount for him and
on other occasions gave him a
Ronson cigarette lighter and a
ceramic tray. In return, however,
he said he had given gifts to Fin
negan’s wife.
Asked about other gifts, Mr
Oliphant said he had, on a few
occasions, received case lots of
liquor. Asked who had given him
whisky within the last year, the
witness named only Amon Carter,
whom he identified as "our great
Houston friend.”
King's Reaction.
As Mr. Oliphant finished his
testimony, Representative King
recalled his associations with va
rious persons in tax troubles and
others and said:
“Testimony received by this
committee has shown that high
Government officials have accepted
more or less lavish entertainment
from persons who have, or may
have, matters before their depart
ments. This entertainment is
often on a scale which makes it
impossible for many of the officials
to properly reciprocate.
“Perhaps this would not con
sciously influence an official’s de
partmental decisions. It does,
however, lead to at least two im
portant results:
“First, the official who is enter
tained and cannot reciprocate in
kind, is lender some obligation to
his host. If the host should have
a case before him, at best the offi
cial must disqualify himself. By
so doing he is depriving the Gov
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718 11th St. N.W.
Phone MB. 1323.
»
' A
Tax Requests Limited
To 'Proper' Action !
Only, Bridges Says
By tht Associated Press
CONCORD, N. H., Dec. 15.—]
Senator Bridges, Republican, of j
New Hampshire admits frequently 1
contacting the Bureau of Inter
nal Revenue concerning income
tax cases, but says he always in
sisted any subsequent action by
the bureau be “entirely proper and
correct.”
The Senator made the state- (
ment last night after testimony
before the House tax investigators
in Washington by Charles Oli- ’
phant, resigned chief counsel of ’
the Internal Revenue Bureau.
Mr. Oliphant quoted “mystery
man” Henry Grunewald as saying
he was "helping”* Senator Bridges
on a big tax case involving “at
least six figures.”
Senator Bridges said in a state
ment:
“I have made and I will con
tinue to make inquires of the In
ternal Revenue Bureau on cases
called to my attention where Ij
think inquires should be made1
which involve injustices or undue
hardship in this 'great sprawling’
bureaucracy.
Wants to Check Facts. .
“In the Instance mentioned by
Mr. Olifchant in his testimony, I
have only a general recollection
at this time and would want to
check to make certain of my
facts.
“But as I recall at the moment
it was a case involving a jeopardy,
assessment, where the person in-1
volved was planning to leave for a
vacation and my contact with the
bureau was for the purpose of in
quiring as to the possibilities of a
conference between the agents of
the bureau and the principal or
his representatives for a discus
sion of the matter.
"Whenever a contact has been
made from my office in the past,
the Internal Revenue Bureau has
always been informed that I did
not want anything done that was
not entirely proper and correct,
and that the Government should
be protected in every respect and
emment of his services. At worst,
the official will act, notwithstand
ing his obligation. No matter
what the official's decision may be,
it cannot but create suspicion and
bring discredit upon the Govern
ment. Even when he disqualifies
himself, he may exert an ines
capable pressure on his subordi
nates.
“Second, the person supplying
the entertainment, when dealing
with the official’s associates or
subordinates, can give color to a
claim that he is a good friend of,
the official he entertains. The
tangible or Intangible benefits of
such a claim are difficult to meas
ure.
"Government officials must
realize that it is often the position
and power of their office, rather
than personal qualities, which is
responsible for the entertainment.
They must be careful indeed not
to allow themselves to be ensnared
by or become obligated to self
seeking individuals.”
Oliphant Makes Statement.
When Mr. King had finished,
Mr. Oliphant asked permission to
make a short statement.
The wispy, graying former offi
cial, whose life work has been in
Government service, leaned for
ward and, in a voice scarcely
audible even with amplifiers, said:
“My case may be closed. I
would like to state, and unquali
fiedly so, that, in the event of a
:full examination of all the files,
during the time I was employed by
the Government, they will show
that I had only the interest of
the Government at heart.
“As to the character of Mr. Pon
:cet Davis, I w’ould like to respect
fully say he is one of the finest
men I've ever met. As to Henry
Grunewald, he is a long-time
j friend of mine.”
Mr. Oliphant paused briefly and
then added that, until Mr. Grune
wald asked him not to mention
his Interest in the Teitelbaum
case, as previously brought out
before the subcommittee, he “had
no question with respect to him.”
"As to Prank Nathan, I do not
know him.” he said. Then he con
tinued:
“I also would like to say that, if
irresponsible individuals are able
recklessly to blacken the character
of those who seek to perform their
duty, or deliberately to fabricate
and give circulation to baseless
charges, then training, education
and the long years in public serv
ice, the establishment and main
taining of integrity can be de
stroyed overnight.
“I know of my own integrity
and my pride in my own name.”
—■■i i —— - ■ ■ !.
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hat the taxpayer pay whatever
s due the Government.
"I have known Henry Grune
vald for a period of several yeans,
'ver since he was an employe
>f my friend, the late Henry
tlarsh of Winchester, Mass. He
las never represented me on any
natter. My contacts with him
lave been casual but pleasant.”
Truman
(Continued From First Page.)
vorse than it has been for a long
ime—admitted he was angry al
he acts of "wrongdoers.”
One action the President says
le will take is forbidding key offi
:ials from having outside em
iloyment. It’s certain, too, that
re will crack down on the prac
tice of officials taking gifts or
rospitality from people who want
special favors from the Govern
ment—people who would like ar
ncome tax case "fixed,” for in
stance.
Mr. Truman also plans to ask
Congress next month for special
legislation designed to keep the
Federal service honest. He is not
saying yet just what sort of laws
he has in mind.
Representative King, Democrat,
if California, chairman of the
House subcommittee which has
been digging into tax scandals,
talked 35 minutes with Mr. Tru
man yesterday.
Neither the White House nor
the Congressman had any com
ment on the meeting. But Mr.
King was reported to have been
ready to advise the President on
the anti-corruption program.
Mr. Truman also had a long
inference with Solicitor General
Philip Perlman of the Justice De
partment. Mr. Perlman could be
expected to give advice on legal
angles of a drive on wrongdoers
In Government.
McGrath Acknowledges Donation.
The head of the Justice Depart
ment, Attorney General J. Howard
McGrath, acknowledged yesterday
that he got a $500 campaign gift
from Antoine Gazda, a former
Austrian held as an enemy alien
in World War II.
The donation was made to help
Mr. McGrath's senatorial cam
paign in Rhode Island in 1946,!
before Mr. Gazda attained United
States citizenship through the
Justice Department. Mr. Mc
Grath described Mr. Gazda as one
of his “closest and dearest
friends.’’
Justice Department lawyers said
informally yesterday they knew
of nothing illegal about the con
tribution.
Senate records revealed that
Mr. McGrath also reported a $250
contribution from Henry Grun
wald in 1946. It was not clear
whether this was the Henry
Grunewald who has been a mys
terious and elusive figure in the
King subcommittee's probe.
Brewsters Reach Formosa
TAIPEH, Formosa, Dec. 15 UP).
—Senator Brewster, Republican,
of Maine and his wife arrived
from Takyo today for a brief visit.
The Senator may visit President
Chiang Kai-shek tomorrow. Gen.
Chiang is now with his Nation
alist troops in Southern Formosa
Schoeneman Bought
Grunewald's Lots,
Land Records Show
Henry W. (the Dutchman)
Grunewald has sold eight lots in
Chevy Chase for $32,000 to George
W. and Eloise O’Keefe, 4704 Har
rison street, Chevy Chase.
The deed, recorded Thursday
j in Montgomery County Circuit
Court, showed that the property
is along Western avenue between
Kirkside drive and Cedar park
way.
Other court records revealed
that Mr. Grunewald sold parts of
two lots in Chevy Chase to George
jj. Schoeneman, former Internal
[Revenue Commissioner In June,
1949.
ueed or irusi issued.
The price, according to tax
stamps on the deed, was approxi
mately $4,400.
A week after the sale was re
corded, Mr. Schoeneman received
a $13,000 deed of trust on the
property, apparently to build a
house on the property, from
Thomas J. Fisher, Inc.
Land records showed a house
belonging to Mr. Schoeneman is
on the property, located on Club
drive, just off Connecticut avenue
near the Columbia Country Club.
The house is assessed at $7,600.
Mrs. Schoeneman said purchase
of the site at 3810 Club drive re
sulted from a telephone conversa
tion with Mr. Grunewald.
Talks With Mrs. Grunewald.
! She recalled Mr. Grunewald,
whom she described ae “a friend*
of my husband for several years,"
telephoned Mr. Schoeneman one
| night and that in her husband s
absence, she talked with the
caller.
During the conversation with
Mr. Grunewald, whom she said
she had never met before that
time, Mrs. Schoeneman 6aid she
remarked that she was looking for
a lot on which to build a house.
Mr. Grunewald, according to
Mrs. Schoeneman, told her he
might have a suitable lot and
suggested they examine the Club
drive property. The purchase
followed the inspection, Mrs.
Schoeneman said.
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