Indianapolis Times, Indianapolis, Marion County, 17 December 1951 — Page 12

> ov 4 oo ad

2 3 : ih ; eg a . or i > . 7 $ A Shey oe a . A rs T > , + : oD) od r $l £2 2 = hay : . : ® Xie ring « - : id by EG

. Fal RW - REE IE 3 : s

The Indianapolis Times TAX SCANDALS .. Byndoor TC he Be Ji, is TE — Everybody Wants To Hear The’Story ‘The Dutchman’ Has To Tell =.

or NP en a Se A x - 3

= ~~ Pb

A SCURIPPS-HOWARD NEWSPAPER

HENRY W. MANZ Business Manager

Monday, Dec. 17, 1951

7 A ROY W. HOWARD WALTER LECKRONE

PAGE 12

. nd ‘published daily by Indianapolis Times Publish. moa Ae Maryland St. Postal: fone 9. Member of United ress, Scripps-Howard Newspaper Alliance. NEA Servs tce and Audit Bureau of Circulation. :

rice in Marion County 5 cents a copy for dally an, 10 for’ Bunday: delivered by carrier dally and ‘Sunday. a week, daily only, 35¢, Sunday only 10c. Mall rates in indians daily and Sunday. $10.00 a vear.” daily. $5.00 a year. Sunday only, $5.00: all other states. U _ fons. Canada and Mexico, daily, $1.10 a month, Sunday. 106 a copy.

Telephone PL aza 6551 Give TAght and the People. Will Find Thelr Own Woy

Strawberry Jam [UNFOLDING in Washington these days is a sorry story

WASHINGTON, Dec. 17—The man whose “it to ‘the King committee investigating income tax scandals until next February. , ~ He is, of course, Henry (the Dutchman) Grunewald, Washington “public relations man,” linked by testimony to practically every other figure in the tax inquiry, .

_ story pverybody wants to" hear won't be telling.

Mr. Grunewald, currently in a local hospital

with ‘an intestinal ailment, won't be heard for “a while because there won't be anybody official around to hear him. E vin

The committee adjourned Friday so Chair. man Cecil R. King_(D. Cal.) could go home fér a few weeks. It will convene again Jan, 7—

.but in San Francisco, for hearings on: assorted skulduggery there. The San Francisco hearings-

Those Special Interests

P) “I'M ESPECIALLY

INTERESTED IN

PTS SCRAP/ b / Hh 772

"Me R0/* - PTR J

will take between three and four weeks—mean-

“ing it will be well into February before the

committes can return to Washington. ~All this seems too, bad, because Mr. Grunewald ‘looms as a particularly interesting wit-" ness. Only Friday, his name was on practically everybody's lips as’ a man who: ONE—Inquired of ' the Internal Revenue. Bureau about a $7 million tax case involving a Baltimore liquor man and represented himself as actipg for Sen, Styles Bridges (R. N. H.). TWO-—Picked up a local hotel tab for a man

' called “Arthur,” who frequently conferred with’

Pittsburgh gambler Frank Nathan, who two witnesses have named as a participant in an attempted $500,000 tax-fix shakedown, . THREE—Hinted to Charles Oliphant, resigned chief counsel of the Internal Revenue Bureau, that he could fix it with the White House so Mr, Oliphant’s’ salary would ‘be raised to $14,000. (Records indicate that a few months later Mr. Oliphant’'s pay was boosted from

Grunewald for $288.18 and made out to the Washington Hotel. > “Throughout the questioning of Nathan, Des wind sought to identify “Arthur” as the mysterious “Mr, Watson.” This is the man who allegedly phoned a Wealthy Chicago lawyer and advised him to “do business” with the. parties who told him to fork over $500,000 if he wanted to stay out of jail for tax fraud. - But Nathan insisted he never had heard “Arthur” referred to as “Mr, Watson"—in fact, never had learned Arthur's last name. So Bb HE ALSO denied again that he had anything to do with the alleged shakedown of Chicago

» lawyer Abraham Teitelbaum. Teitelbaum has

testified that Nathan and Bert K. Naster, Florida electrical plant owner, were the shakedowners. Naster also has denied the charge, and several government officials—including Mr, Oliphant—have denied they were part of a clique organized to extort money from “soft touches.”

of reckless indifference to public responsibility. And 28 2 Ne 74) F10300 to Abo BLOND) oir Mr. Grunewald comes into the shakedown i 3 ' : : be alled “ rovelin Hw pg ih gE of; CRIMINAL prosecuti - story, too. Mr. Oliphant has testified that Mr, in some of its phases it well might ¢ g g ) Nh A v prosecution never Was recom- . ewald made inquiries about Teitelbaum’s

for groceries.” For, along with the. plain and willful corruption and fixing, is evidence of a cheap regard for the oath of office. High-placed" public officials doing favors for hams, turkeys, cameras, nink coats and deep freezes in the name of friendship. Other officials being lax in their business under the influence of luncheons and cocktail parties. Notable in this phase of the scandals which are rocking the Truman administration has been the amazing testimony

mended in the Baltimore tax case, involving Hyman Klein, according to Adrian W. Dewind, committee counsel. He said the case now is being settled out of court. Mr. Oliphant told the committee Sen. Bridges “did not want anything done that wasn’t correct,” but felt the Bureau and Mr. Klein “could get together.” ° A little later Friday, while Nathan was testifying about conferences with “Arthur” in room 424 in the Washington Hotel here, Mr. Dewind entered in the record receipted invoices for the room, marked “charge to Mr. Henry Grune-

tax case.and that he gave Mr. Grunewald information he wouldn't “necessarily” give to the press or ‘other unofficial individuals. Theron Lamar Caudle, the ousted assistant attorney general, also has involved Mr. Grunewald in the plot. Mr. Caudle has admitted to the committee that when he was told about “Mr, Watson's” phone call and informed that the caller spoke in a “guttural, German accent,” he surmised out loud, “that must be Grunewald.” But the way it looks now, Mr. Grunewald will have plenty of time to compose himself be-

06 M

of Charles Oliphant, head lawyer for the Internal Revenue wald,” together with a check signed by Mr. fore he takes that witness stand with his story. 15 Bureau. ! : 30 Sa 5M yo W # nn : s te MR. OLIPHANT resigned in a huff last week, saying LABOR . . . By Fred W. Perkins “ y : : : 4 . M it was beyond his endurance to stay in office trying to ‘Th D A (¢] | ’ 30 . 3 x s : Ce protect his name against “baseless and scurrilous” charges. * em ’ ays re one orever 45 Bi Then Mr. Oliphant takes the witness stand and with ; WASHINGTON, Dec. 17—1In government = tor” clauses in union wage contracts. Wages " N an “I-didn’t-do-anything-wrong ' attitude admits to blocking Sialistes tie 014 song is beginning to apply: rise, andcan fall to a prescribed degree, accord- 30 ) action in a $181.000 tax-fraud case merely because a SHY Daye Are Gone Forever "ing to the ups-and-downs of the index. When 4S Following orders from Budget Director {na new base period be ’ : pe comes effective, the bureau J Congressman asked him to. Frederick J. Lawton, a dozen agencies are - experts gay, there will be no trouble in adjust- 00 § He didn’t see anything improper, either, in tipping Nothing out Mew haze Shug Lor el num ing the new figures to labor contracts. 3 i is : , 30 1 off dismissed Assistant Attorney General T. Lamar Caudle past conditions in more than 100 economic feds. sensible Ch ‘ 1 that his tax returns were being inspected by Sen. John J. The Budget Bureau has resummended 1947-49 ensible Lhange: Se ili i i as the new base period generally. THE Bureau of Labor Statistics is expected : Williams (R. Del.), who has had a large hand in breaking The index best known to the public is the to begin using de ature 2 ected Hi the Internal Revenue Bureau scandals. Bureau of Labor Statics’ “consumers price in- year, The Federal Reserve Board already has 45 Mr. Oliphant saw nothing out of "line in telling a dex,” generally called the cost-of-living index. changed one of its indexes showing sales —r -mysterious wire-tapper around Washington how a tax Close to 100 Volumes, The Commence and Jasiuliare De 15 : 1d be handled. although he said Ii uldn't THE MOST recent cost-of-living index figure Partments are going to change the Indexes taey 30 Re evasion case would be handled, although he said he wouldn was 1874 on Oct. 15. That means the living Put out to guide buyers and sellers in many 45 give the same information to a newspaper reporter. necessities for a moderate-income family cost Delds 300 Gi 12 A 0 9 87.4 per cent above what they cost in the pres- Officials deny that the change in bases is 45 Sp AFTER Mr. Oliphant had stalled action in the $181,000 J ih ent base beriogthe years 1935-39, which rep- intended to sores] he inueéase in Jiving costs 1050 ; as : resen hy en the index change becomes ef- Or the decreased purchasing power 0 e ar. . tax fraud case until it no longer was legally possible to ; fective, probably in January, 1952, the base is They say the change is sensible for understand- 45 G rosecute, he received from the friendly Congressman a expected to be 1947-49. And unless there is ing as well as convenience, and will provide a 00 Ra p an jar of strawberry jam for Christmas, 2onmiie wikeesa! in the meantime, the index realistic measuring stick. 118 ‘ . gure will be close -to 100. Most government indexes now are based on . : ¢ Whether or not the jam was the direct result of the The index has attained much importance in the 1935-39 period or the single year 1939, A ps SIA

tax case which n:ver was prosecuted is beside the point. It is a symbol of the influence of loose and sordid “friendships” on high government officials, as contrasted to their wanton neglect of the public trust.

Production Is the Answer

‘ reveals conditions and contrasts which are un- Spain. But it is the all-too-frequent picture. ; : believable unless actually seen. The rice fields and orange groves of Valencia “"''''!!!!itssssinensissinisntsstanes a REINER EERE EERE ETRE RR RRERRE RENEE Rasen FF UROPEAN members of the North Atlantic Alliance have The luxury and wealth found in Madrid, are very modern. : MR. EDITOR: . , l been told that they must raise their production an aver- Barcelona and the kpc There are. some irrigated districts where Bein 4 ith Help the Needy fige of 14 per cent by 1954 to absorb the projected increases Atlantic coast resort MENA oe American farmers could be taught a thing or g on tour with the orchestra in Elkhdrt, . MR. EDITOR: 8 P : city of San Sebastian ig BE two about intensive agriculture. I found The Indianapolis Times of that date and All of these write-ups in our papers of the

in military expenditures under the general rearmament program. It is recognized in advance that this recommendation, made by an American-French-British committee headed by W. Averell Harriman, will encounter vigorous resistance in France, Italy and Belgium. However, it is high’ time that the hard facts in this situation began to sink into some of the official heads in Europe. Every day can’t be Christmas, and some of our friends are going to have to buckle down and get to work if they expect our continuing assistance. Europe's dollar deficit is expected to reach a total of more than $4 billion next year —which is more than twice last year’s deficit. This situation is becoming chronic, and the only permanent solution is increased European production which will balance income , with outgo. ’ “The Harriman report appears to be unduly optimistic in one other respect. It assumes there will be a’ uniform

MIDDLE AGES . « . By Peter Edson

Snanish People Are Happy—

MADRID, Dec. 17—A 2500-mile* motor trip down the western side of Spain, across its middle and up the entire Mediterranean coast line,

is’ a bitter commentary on the extreme poverty seen everywhere in rural Spain. It 18 like going from New York's Fifth Avenue to America’s most backward rural slum. Only in- Spain, the jump can be made in ~ half an hour's drive, instead of 1000 miles RE or so. - In rural Spain ii 4 : you get the feeling of the 14th and 15th centuries of the Middle Ages—even of Bible times. It isn’t just the old castles on the hills, the old walled cities like Avila, the Roman ruins in Segovia, Malaga, Ampurias or the tomb of the Scipios outside of Tarragona. It isn’t in thé*Moorish palaces, the Alcazars, the reminders sof Visigothic conquest. It is a

living thing. On all too many roads of Spain you see

use a hand-cranked blower to let the wind carry

away the chaff. . This is not the universal picture of rural

There are vineyards and olive groves on some hills, carefully terraced for centuries— where there are record yields. And the people work long hours, steadily, cheerfully, carrying intolerable loads on their own backs when they are too poor to own any beast of burden. Their poverty finally gets you. Construction workers and farm hands may earn 20 pesetas,

* equivalent to 40 cents a day in the U. S. Police

get $12 a month. Office workers and teachers $16 to $20. “Prices and living standards are definitely. kept down.

The average per capita income is estimated *

at $120 a year. That is lower even than Italy's $200. There are beggars everywhere,

Bread Ration

BREAD and edible oils, principally olive oil in which everything is cooked, are rationed. The bread ration is the lowest in Europe—about five ounces per person. It doesn’t make sense. There were olives rotting on the ground all over Spain, or being fed to pigs.

recent years because of the numerous “escala-

QUYIRTRRRERRNRNNNNNIIRNRIR RENE RRRNS -

"I do not agree with a word that you say, but

Hoosier Forum—‘Good Editorial’

few are based on even earlier periods.

| will defend to the death your right to say it."

Tesesvseesessnennsans

read your editorial page about the Boy Scouts

' and a tragic mistake.

May I again congratulate you on the fine editorials you are writing, and I subscribe to your thought very heartily that over a fault of one man the organization or community cannot be blamed. We cannot control the mind of one person because we are living in such a difficult time when human minds very easily could be distorted. : More of this kind of editorial will make this world better to live in. Thank you again.’

—Fabien Sevitzky, Conductor, Indianapolis Symphony Orchestra.

Views on the News

By DAN KIDNEY

PRESIDENT TRUMAN is so mad about the tax scandals that he’ll not take collector Finnegan “on agin.” o>

needy who would appreciate some sort of nice Christmas, and asking for contributions of money, clothing, food, etc.—a wonderful thing. Now, why don’t we Christians get on the ball and back iow-rent housing for these same people so that they can be happy and secure all year round as well as for two or three days around Christmas? A warm home for one’s entire life is certainly more comforting to one's children than that two or three day food and candy spree, when a rickety house can still burn and the whole family with it. Let's have real spirit and be real Christians. —Barbara Browning, 34th and Keystone.

. FOSTER'S FOLLIES

PARIS—A man walked into a Paris police

ftation with a kitchen knife between his .

shoulder blades. He said it was his wife's work. “Monsier Le Prefect, can it be, “Zis marriage she is failing? “In mad shrill volume ma cherie

. } : Tas : ; ; and An American county agent from Texas, long “Gives forth ze constant wailing.” a tn delivery of American military equipment throughout the Jepested reminders of Bije stories, Mary ond Wy i ont Pi Sl dl gi RLOLR 3 fri 8 305: next three years. That is likely to depend largely on how by a ragged Joseph on foot. Only sometimes it their wheat yield by modernizing their farming tration finally has concluded “You ask me what about zis knife? 45 much Western Europe does to help itself. There will be - js the Joseph who rides and the Mary who methods. They could wipe out the fruit fly ‘it can no longer use the Tea- “Such thrusts I hold quite cheaply. 00 Ww Ra : ss : 3 which destroys so much of the olive crop. ot Dome for an I Cur- “But, ah, ze sharp tongue of my wife— 15 He little point in our sending arms to our allies if they do not walks, see’ nen plowing Helly wil: HOF There are signs on village walls all over pot : n trop Lor “Zat always cuts me deeply.” 30 Bi produce the troops to use them. handled mattock-hoes, the only tool they own. Bban saying iis inprovement of villages and . Ts a 45 Ne x : . raising the standards of the farmer were the v We don't want to send arms to Europe which can be Some, better-off, plow with a steel-pointed SEN. McCARTHY is be- FAIRY TALE OR FACT sa ony : MO . They walk miles to their fields hope of the country. Yet little is done about it. i ; : picked up by the Russians or their fifth columns and used ro ling pore plodding slowly be- My Texas friend’s answer was that the peo- = i whim WHEN we were children we were told . . . 3 i against us. That's for sure. hind wheeled donkey carts or pack mules. ple are too proud to change--too proud to ask other congressional colleagues about a fairy queen... who wouldn't let a 45 Ro In the villages modern Rebeccas’ gather -at for help. U. 8. technical assistance for Spain have switched over to Mec- thing we did...get by or go unseen , .. and we —_— : the wells and carry water home in huge earthen could do wonders, for the human and material Grath and Snyder. were told if we were good . . . then she would 00 A The South Korean Arm - jars. They wash clothes in cold water streams resources are all there. Sen. McCarthy i treat us fine . . . and so it was that most of 15 y or at public “laundries” near the well. Often But the government youla Reyer Sapt Sain + + . obsolete THAT SENATE ETHICS US... would really toe the line . . . but every 3 on oi : ’ . lot spread on was “under-developed,” and ask for that kind .e M) once so often . . , some of ee 4. J INITED STATES military authorities in Korea : have De ai Te Seles Sa of help. ? yardstick for tax EE A and do most everything a our a orders to build up the South Korean army until “it can °° Shepherds with their feet and legs bound The great paradox of Spain today is how its they can be to Congressmen without being called guardians would say ...and for a time we 10:8 stand on-its own two feet,” according to Gen James A in rags, a blanket their only protection against ge SE Sau be ® happy, can dance, Sing crooks. would get by . . . with everything we did . . . 130 6 > : * rain or cold, tend flocks of sheep and goats and enjoy life as they do, in the midst of all Sb at then as time went on we found . . . that evil 45 Ro Van Fleet. along every road, over-grazing the already im- their poverty, dirt and disease. . . - can’t be hid . .. for just as sure as shootin’ r—<b CW : : 4 JOHN FOSTER DULLES telling the Japs . $80 00 Ww : n poverished soil. : Among other things, the country needs a someone always found us out... and then ‘ Obviously, that BE the only way to salvage Byun They thresh their wheat as it has been done good WPA-type privy-building campaign. lo work han is like advising rug cleaners 10 \,;1q come the punishment . . . it hurt without 1 A out of the Korean situation, whatever the outcome of t € since Bible times—draft animals dragging a My Texas friend had an answer for the rid- e puppies. oe’ 2 a doubt . . . and so the legend of the queen . . . 45 0 current truce negotiations. * We cannot afford to maintain log over the straw. : dle. “You don’t need to feel sorry for these who knows our every act . , . still lingers till — A : A in K indefinitely. and it would be They sow by hand, they harvest by hand, people,” he said. “They have it better now than THEY FOUND a Vassar girl who could the present day .., in fiction and in fact, 00 Gl an American Army in horea 1 Ys they throw the grain up in the air, or at best they've ever known before.” bake a cake and gave her $25,000. 5 —~By. Ben B 45M : a y. Ben Burroughs. 12 nothing less than criminal to pull out our forces and leave ; 30 Hi the South Koreans defenseless. l ANC . ; . uy. Gen. Van Fleet has outlined a training program which SIDE G NCES By Galbraith CHRISTMAS eo By Frederick C. Othman He 3 should give the Korean Republic the kind-of an army it 7 ; > ® * 30 K needs, if the plan is followed through, and provided the —/H A Forget i 54 Pro es—Eye i & Ho ; ay Spirit 458 force is adequately equipped. If such a plan had been ; : 2 : vt K adopted in 1945, the Red invasion probably would not have a ASTINGTON, Des. 17-1 the Trade Togulsijons, Jnae J 30 : : agree wi e con- almost impossible to buy the . been launched last year. ; , gressional tax investigators, stuff for his friends at a dis us_M South Korea was twice as populous as the Russian zone now wending their weary way count. Ah, well, : - 100 W \ home for Christmas. We've Maybe you heard about Mike 3s

to the north and should have had twice as large an army, with enough tanks, heavy artillery and fighter planes to discourage an enemy attack. But our strategists in the 1945-50 period preferred to trust the Communists, rather than the South Koreans, so when the invasion came the Koreans were virtually helpless. That proved to be one of the costliest mistakes in our history. It must not be repeated.

A Good Man Goes

SUMNER PIKE has decided the time has come to leave his job as a member of the Atomic Energy Commission. He has been the kind of public servant the government needs, especially now. He is a tough-minded New Englander, with private busness experience in various parts of the country, and a prior record of good service to his country in wartime, He was

“Ap

one of the original members of the AEC Board. He saw

that enterprise survive a lot of trials and tribulations. Its apparent success now is due in no small part to him. Certainly Mr. Pike has earned a chance to get away from the awesome atom and just loaf. : anih

husband of yours to ma down hove and

heard about enough for a while of the Lamar Caudles, the Charlie Oliphants, the mink coats, and the free airplane rides. It's time to get a little Yuletide spirit. In that connection a local dairy, which has not heard that it_1s bad business to give Christmas presents to anybody in Washington this year, just sent around a large noggin, wrapped in red cellophane and holly, of nonalcoholic eggnog. Not being a tax collector, myself, I accepted it without compunction. Tasted fine, straight. Like sweetened milk with a touch of nutmeg. The record shows that the + tax boys in years past took a wide assortment of Christmas loot from their pals. This included—and I'm taking this straight from the official trangeript—such items as strawberry jam, baked hams, smoked turkeys, whisky, silver trays, cameras, television sets, and

even taking the time of day. yal on

12:19 fur coats. This year they're not

Lamar Caudle « + « just about enough

a lobbyist for a big distilling outfit. He said the latter used to send with his greetings cases of his product to a wide

assortment of bureaucrats. This year, the attorney continued, the regular recipients of this fluid have asked the donor, please, not to. repeat. Some of them have suggested that they'd be delighted, however, to buy some liquor wholesale. This presents a problem to the lobbyist. He easily can

DiSalle’s rule of thumb about Christmas gifts for his helpers in the OPS. He has ruled they are not to accept anything from anybody that they cannot consume within 48 hours. What if one of them got a box of cigars? Probably become a mighty sick bureaucrat. ” » o SO THAT brings us to one

of my favorite Senators, whose

name no investigators ever will drag from me. He phoned the other afternoon, wondering whether I'dsbe embarrassed by accepting a Christmas turkey from him. I told him that I didn’t embarrass that easily. If he wanted to send me a turkey because he was my friend, I'd be delighted to eat

it.

So he made the arrangements. They turned out to be a little complicated. The idea seemed to be that he wanted to buy the “turkey at a local meat market, which was to delive T - through a middleman, so the

. butcher never would know that

: Mr. DiSalle ses rule of the thumb Gad. This goes to show that the exchange of gifts this year by Washingtonians is difficult, because they never know when they'll be investigated, If anybody wants to investigate my turkey, I'll beat ‘em to the draw. Fact is, it is my annual custom to list here all the gifts I received from the great and the near-great. Some of these remembrances have

there probably won't be many, on account of the free publicity

We wish him good loafing, but we regret to see him - wy, tell that fini ‘into : i y ] 5 I RAN into a lawyer the distribute unlimited amounts. I was taking a free turkey I ha the donors leave government service, Lo a complain fo my face instead of talking behind my back!" other day who is the friend of of liquor free, but, because of from a U. ato. key So . a & ' ed, « { * Ni 2 » ‘ : : 3 : - 1 - ; fg :

AA LN Fa

Np A ts De ST

. wh A wo WN

Rf Bs I DE AI 3 CE

iA pb i aaa i Ss, f