Indianapolis Times, Indianapolis, Marion County, 20 December 1951 — Page 17
THURSDAY, DEC. 20,
Fevers Penalties Proposed—
1951
“Urges Congress Act To Curb Tax Bribes
# » »
By CHARLES LUCEY Scripps-Howard Staff Writer
. WASHINGTON, Dec. 20—Sen.
«4 Joseph C. O'Mahoney (D. Wyo.) = proposed recently that Congress « extend to the Intérnal Revenue 1. Bureau a ‘“padlocking” action
a
x voted this year to bar favoritism
4 in war contracts,
wih
The Senator is author of an
. amendment to the $56 billion De-
fense Appropriation Act in the last session. The amendment imposes heavy punishment on war], contractors offering gratuities in return for favorable treatment.
Under the amendment, not only would the government’s contract
with any guilty war goods manufacturer be cancelled, but the company concerned would be liable to damages ranging from three to 10 times the amount of the contract involved.
The Senator said he was cer-
tain that Congress, in the next session would try to prevent a
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(repetition of wrong-doing in the Internal‘Revenue Bureau, such as has been disclosed in recent months,
Proposes Big Penalty v “It would be very easy to provide by law,” he said, “that any taxpayer who offered any gratuity to any government employee
before whom a tax case was pending—directly or indirectly-—would be penalized three to 10 times the normal penalty.” Mr. O'Mahoney asserted that
action would have to be- taken. He suggested ‘that such action,
probably would be taken in the House, which set up the Ways and Means Subcommittee now digging into the tax scandals. -41e said there probably would be a supplemental appropriation bill fairly early in the new session, and that this might provide the vehicle for corrective action. Sen. O'Mahoney said he had been advised that a number of cases involving gratuities in connection with war, tontracts al(ready had heen referred to the Justice Department for investigation and possible prosecutjon.
Dayton Probe Set .
Gifts to military and civilian workers at Air Force procurement headquarters at Wright-Pat-terson Field, Dayton; will be the subject of an inquiry early in 1952 by Sen. Lyndon Johnson's (D. Tex.) Senate War Preparedness Subcommittee. In some of the cases turned up, gifts included household appliances, liquor and entertainment. Sen. O’Mahoney’s amendment was a direct attempt to whittle down this field of influence peddling, and since its passage the Defense Department has undertaken to write regulations putting the law into effect throughout the
J Army, Navy and Air Force. De-
fense Secretary Robert A. Lovett assured Sen. O'Mahoney the new provision would be diligently enforced. v
unk Bounces Back
| FT. WORTH, Tex. (UP)—W. |W. Harris, junk dealer, thought ithe scrapped automobile radiators ‘he had been buying looked fa{miliar. They were, too. Mr. Hariris found he had been buying {juhked radiators which were ‘being stolen nightly from his
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Sale Price $12 Million—
MEXICO CITY, Dec. 20 (UP) —The government announced last night that negotiations to buy the American-owned Southern Pacific Railroad of Mexico had been completed. The sale price was $12 million (U. 8.), of which $3 million is to be in cash and the remainder in special bonds to be issued by the Mexican government. Southern Pacific originally asked $17 million for its holdings, all in northwest Mexico. Reports that an agreement had been reached were current here following the return to San Francisco last Saturday of a group of Southern Pacific officials who had negotiating with government representatives.
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The government refused to con-| firm the reports until last night. | The Southern Pacific group was headed by G. L. Buland, vic president and general counsel. The sale price included all the holdings of Southern Pacific in Mexico, including rolling stock, buildings and property. Two bills were sent to Congress yesterday asking approval of the sale, which is expected to be only a formality. The first bill covers the sale of the railroad and the second the issuance of the bonds. The bonds are to be in denominations of $1000 and are to be amortized in 15 yegrs. They will draw 315 per cent interest, The| bill provides that none of the bonds may be sold in Mexico by the railroad. The agreement will go into effect on the date of its publication RANARGRARARER | | the official government record. In announcing acquisition of the Southern Pacific lines, the government said it is of “vital importance for the economy of the country.” The statement said the operation of the railroad, which is centered In the states of Sonora, Sinaloa, Nayarit and part of Jalisco, “has not given as good a service as is needed” under its American owners. Recent newspaper reports here said that a recent $5 million U, 8. Export-Import Bank loan to Southern Pacific of Mexico would be canceled following its sale, The government announcement did! not comment on this.
California Lifts Ban On Starlet
HOLLYWOOD, Cal, Dec. 20 (UP)—Blonde Lila Leeds, convicted two years ago with actor Robert Mitchum on a marijuana charge, received court permission yesterday to return to California from her “exile” in the Midwest. The 23-year-old starlet asked the court to allow her to come to live with her mother, Mrs. Leita Garcille. Miss Leeds said she could not afford to maintain |g separate homes in Chicago and |# here: Superior Judge Clement D. Nye ly
mendation of the county proba-|} tion department. He modified a 1949 court order that placed Miss Leeds on five years probation on condition she stay out of Cali-| fornia. The modification did not re-| move other conditions on Miss Leeds’ probation including report-~ ing once a month to the probation department on her activities. Deputy Probation Officer Mary D. Lakin told the court Miss|i Leeds had lived up to the proba-|§ tion terms and was a “good pro-|§i bation risk.” The actress served} 50 days in jail following her ar-|is rest with Mitchum and two others|¥ on marijuana charges. oi Miss Leeds sald she wanted to} make her home with her mother, |; a 8-year-old brother and her year-|§
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Cullum after leaving the state but |g they were divorced recently.
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THE INDIANAPOLIS TIMES __. a s
A Re RT RP RE TA To FT PT A Be or Fe TO Fh 0 rh To Fo ea Re 0 Be To Fe Wh Fo Fh Ts Fe Fo Pe Ph Fa Br Te Ph Tr gh For Tat Fr Fe Pr Pu PAA
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PAGE 17
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