Decatur Daily Democrat, Volume 55, Number 50, Decatur, Adams County, 28 February 1957 — Page 4

PAGE FOUR

Five Men Indicted For Evading Taxes Attempted To Help Company Evade Tax CHICAGO (UP) — Ernest J. Sauber, former head of the internal revenue office here, and four other men were under indictment today on charges of trying to help

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a company evade its income taxes. A 10-count indictment against Sauber and the others was returned Wednesday by a federal grand jury. They were accused of conspiracy to defraud the government in the exercise of its tax functions and of concealing the taxable income of the Shotwell Manufacturing Co. Sauber, a veteran of 21 years with the Internal Revenue Service, was dismissed from his post as Chicago area district director last August. Others named included Harold

E. Sullivan, executive vice president of the defunct candy company; Byron Cain, the firm's president and treasurer, and Leon J. Busby, a public accountant The fifth man cited was Ralph R. Johnson, chief of the field audit branch of the district director’s office under Sauber and now employed by the Internal Revenue Service in a lesser capacity. Named by the jury as co-con-spirators but not indicted were Frank J. Huebner, a vice president of Shotwell, and Patrick J. Grace Jr., a Brooklyn, N.Y., attorney • ■ r • •• , _•

THE DECATUR DAILY DEMOCRAT, DECATUR. IWDIAWA * ■I !■■—■■ I „■»■■■.,■,.„ ,|| 18... | .■■■■.,—ll ■«! —

‘ ' '”■—f - now dead. The indictment charged that Cain asked Huebner in July of 1948 for SIO,OOO to “take care of and fix” tax difficulties. The indictment said the payment was made, but it did not say who got the money. The indictment alleged that in 1953 Sauber gave false testimony at the Shotwell company’s trial on charges of evading $288,807 in income taxes for 1945. He testified that the firm made a voluntary disclosure of its dealings in 1947 and thereby invalidated the prose-

cutlon. However, the company and three of its officers were found guilty and the firm was fined and the officers were fined and sentenced. The case was appealed and the U.S. Court of Appeals reversed the Federal District Court verdict. The litigation now is before the U.S. Supreme Court. Sauber was dismissed on grounds he showed poor judgment in his personal relations. He protested that all. he had done was go to a football game with a friend and buy oil leases in his wife's name.

The grand jury held 70 sessions and questioned 86 witnesses in the case before Returning the indictments. '. Four Arab Nations Report Agreement Pledge Neutrality In World Affairs - CAIRO (UP)— The rulers of _ .__ a .

four Arab nations reached agreement Wednesday night on a sixpoint resolution proclaiming their "positive neutrality" in world affairs between the blocs led by the United States and Russia. The four nations pledged an alliance to work for Israel’s "immediate and unconditional withdrawal" behind the armistice lines, but did not threaten action if Israel failed to comply. A communique issued by the governments of Saudi Arabia, Egypt, Jordan and Syria indicated the conference had sidestepped

THURSDAY, FEBRUARY M, IM*

■ a joint decision on the Elsenhower Doctrine, leaving the way open for any of the fur to accept or reject the President’s new polli cies. The communique d:d commend • the “highly appreciated efforts” • of King Saud of Saudi Arabia in explaining Arab' policies to Presl- : dent Eisenhower during their i Washington talks and making clear Egypt’s claims to sovereign- ! ty over the Suez Canal. It did not , mention Communism. 1 Trade in a good town — Decatur