Indianapolis Times, Indianapolis, Marion County, 15 March 1952 — Page 6

PAGE 0

‘By EDWARD F. RYAN HENRY (THE DUTCHMAN) GRUNEWALD knew in advance that his name was about to break «into the House “probe -of Internal Revenue scandals. The hearings neared a crisis for Grunewald on Dec. 4, 1951. That day, Abraham Teitelbaum, one-time lawyer of Al Capone, gave the House probers their biggest shocker. He charged that Frank Nathan, a Pittsburgh promoter, and Bert Naster, a Miami electrical manufacturer, tried to shake him down for $500,000, He said they hoasted their important Washington connections could get him out of his tax jam with the government. They denied it, That night Grunewald visited his old friend, Charles Oliphant, general counsel of the Internal Revenue Bureau. Grunewald suggested Oliphant need not necessarily tell about Grunewald’s Inquiry to him about the “racketeer status” of the Teitelbaum tax case. The racketeer label was one that speeded tax cases for prosecution. Oliphant took a firm line with Grunewald. He said if he were asked about the matter under oath he certainly would tell the truth. Oliphant did so on the afternoon of Dec. 5, in a closed door session of the House probers, after he resigned as chief coun-

sel. ” . . CHAIRMAN CECIL KING (D. Cal.) announced that a

wald. : Next day, Grunewald tel-

ephoned Oliphant. Obeying instructions of the King subcommittee, Oifphant told Grunewald about the subpena, That evening Grunewald went into Georgetown Hospital for treatment of what was described as “gevere nervous strain and intestinal upset.” He received the subpena there the following day. During Grunewald’s stay in the hospital, the King commit= tee went into the conversations involving Nathan and Naster, and the oficial records of the Teitelbaum tax case, Naster and Nathan admitted knowing Grunewald. Nathan linked him-self-by his testimony to a myster with "a roomful of deal” a few doors: away from the Grunewald office suite in the Wash-

wald on Sept. 19 paid Brevaire's hotel bill. The committee called on Grunewald in his hospital room and gathered the idea he

session. » »

» AFTER he left the hospital, Grunewald set out to prove the error of the idea that he would talk at all

attorney, Willlam Power Ma-

torney General, turned up Dec. b 21. Maloney wanted to read statement. Acting Chairman Eugene Keogh (D. N, Y.) refused to let him. A moment later, Keogh permitted Grune-

Grunewa

subpena was out for Grune- | ;

‘MYSTERY MAN’ GRUNEWALD . . .

Id Pla

EDITOR'S'SNOTE: This Is the last Installment of the life story of Henry W. Grunewald® the “mystery man” of the federal tax fraud investigation,

.wald to feéad the Maloney

statement, It was all about Grunewald, and about how ‘the committee had .placed him on public trial without the safeguards granted in court. Because of this, Ma‘Joney was advising Grunewald to answer no questions. After the reading Grunewald met a number of questions by “most respectfully” following the advice of Maloney and -declining to answer, On Jan. 20 the committee called him back. With Maloney present, Grunewald offered to read a statement saying why why he would not testify. Maloney’s outspoken protest at the committee's refusal to listen brought an order to remove the lawyer from the room. As Maloney was led out, Grunewald was told to return in an hour or so with a new lawyer, y ” » WHEN Grunewald returned to the witness chair, alone, he announced .that since he had

Named to Head Finance School

heen deprived of counsel of his

own choosing, he would answer no questions. This he proceeded

to do _in composed silence television set. On the long soundly wired for silence. through a barrage of questions, grey wall over the sofa are And it 1s left to Congress Finally both Grunewald and. three portraits in oil. The large .and the grand jury to tell Maloney were cited for con- One showed Grunewald in a Whether the wires Grunewald tempt. Grunewald left with or- banker's pose. The other two had learned so well to pull showed his attractive blonde would finally trap him er leave

ders to return for another session in early March.

” » ~

OLIPHANT said in his testimony ‘at one of their frequent luncheons, in which Grunewald always picked up the check, srunewald casually inquired about the ""racketeer status’ of the Teitelbaum tax case. The date was July 23--a few days after the time fixed by Teitelbaum as the most intense point in the alleged “shakedown.”

Oliphant said he checked for

"Grunewald, and reported to him

| then passed from Internal Rev-

it was doubtful whether Teitelbaum’s case would be classified as ‘“‘racketeer.” t was so clags-

ys The

’

not ostentatious. In one corner of their large step-down living room is a piano, in ‘another the

daughters painted by Howard Chandlet Christy. His pet canary, Hansi, 12 years old, keeps silent in a cage in the dining room, ov - - GRUNEWALD'S own confidence in the final outcome of his investigation Is shared by his daughter, Mrs, Hartzell, who says her father is “a wonderful guy.” B8he says her parents always are doing charitable things like helping two medical students to finance their schoolIng. 8he says her mother's heart was broken when Grunewald had to sell their $100,000 Flor-

THE INDIANAPOLIS TIMES

Silent Man

i a

‘Measles in New York

ment reported today that for the week ending yesterday 2235 new cages of measles were reported

to 14,262 since early January, its’ racketeer ‘status, On this 8 em and other Internal Revenue

questions,, Grunewald remained

him unentangled. (Copyright, 1952. by United Feature Syndicate

END OF A SERIES

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ROSSINI GERSHWIN TCHAIKOWSKY SIBELIUS

; was Ida ‘dreamhouse” to pay a vd ~~ ey Sie at The moment, bit Pedy $51,000 federal tax lien in Jan- GAC : : iii COINEL CHARLION _ SORSTING cago for further study. uy Jo. Hartzell ,2d0e0 INNESS TOAST OF wi ~ WILDE - HESTON - AMOUR s udly e taxes were honest- op OLONA you ENTE a y 1" ly owed and honestly reported.” Adults T0c—Students 50¢ Joe GRAHAME hob pi TWO DAYS later Oliphant Still unanswered was the COCOA - NTOINETTE CONCELLS ordered the case brought to question of how Grunewald shes STEWART be him from the mail room. Oli- came to know in such precise “A perfect Will heunt Ere LL ; detail about the Teitelbaum tax | | wedding you with ‘RE 10:30-1:10-3:50-6 40 phant’s action was taken to ol, "he could ask about | | Wem aslody and TIMES 9:20 and 12 Midnite mean the case would not be rn im and emotion! given further study in Chicago. . —Rodboot From the greet ® Prices This Engasement Only = —76¢c Till 12 N It was given some further UAW Names Unit ye, soc Tui 3b Mi in Aller SFM. | ren —50c mes thought in Washington, and To Cl MENOTTI'S (Tax Included) ean Out Reds

enue to the Justice Department

in November. Oliphant also testified Grunewald inqured about the multi-million-dollar tax case of Hyman Harvey Klein, a Baltimore liquor dealer. Oliphant told the committee he understood yrunewald was representing

DETROIT, Mar. 15 (UP) —The| |CIO-United Auto Workers Union| {today set up a special six-man {board of -administrators to clean {out alleged Communist officers in {rebellious Ford Local 600.

The move, one of the most

{drastic in UAW history, followed {on the heels of this week's hear{ings of

the Congressional un-

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BY < By

COL. JOHN C. LACKAS— |

Col. John C. Lagkas todagiiudy riy|

‘named commandant of the

ington Hotel. Into the record Finance School at Ft. Harrison. |

went the check by which Grune- |, J" a ndant, succeeds Brig.

{Gen. Emmett J. Bean, who “tontinues his other title as commanding general of the Army Finance]

would talk to them only in open Center.

Col. Lackas, who has been dep-|

During World War II, the new

commandant served as a com-| |munications officer in the cam-|

Bridges, however, sald he had (largest, is “Communist-domin-asked the bureau to seek some ated.” kind of settlement with Klein | The administrators will be

after the liquor dealer was hit in 1948 with a jeopardy assessment. The government assessed Klein $5,227,883.99 (of which one-third was penalty). It charged he reported only ahout $147,000 income for the

period 1944 through 1946 when | he should have reported more | Klein denied |

than $4 million. it. ® # =

HE IS understood to have

said he paid $1.2 million as a |

25 per Cént capital gains levy on the money the government claimed was subject to full income taxes. Oliphant also disclosed that Grunewald once called to make a friendly inquiry about a pay raise Oliphant later received. Of the tax officials he has known, Grunewald said “I've

Grunewald with his peppery |

loney, & former assistant At- |

never asked any of them for

lpaigns in Italy and later in the any favor at any time.”

alr offensive over Europe. After the war, he was transferred to

ithe Army Finance Corps. apartment is comfortable but

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Hoosier Ste Karl Malde: his original BI for the picturiz rar Named Ds as a steel wor rated in his h Ind. Malden first of the theater man Theater | trying few mec he got his f “Golden Boy.” became identi footlight’'s fi

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