U.S. TAXATION SCANDALS

Press, Volume LXXXVII, Issue 26605, 15 December 1951, Page 7

U.S. TAXATION SCANDALS

PRESIDENT PROMISES DRASTIC ACTION WASHINGTON, December 13. President Truman said to-day that he would take drastic action immediately to “clean house” following the recent tax collection and other scandals. Mr Truman made his statement at a press conference at which he was questioned ; on the recent Congressional investigation into outside transactions between taxation officials and business interests. Yesterday the President conferred with the Attorney-General (Mr Howard McGrath) and the Federal Bureau of Investigation chief (Mr J. Edgar Hoover). The United Press states that these conferences have prompted reports that Mr Hoover will have the job of ridding the Government of all officials tainted with any form of corruption. The chief among those likely to suffer Mr Truman’s indignation is Mr McGrath. His Justice Department figures prominently in the current Congressional inquiry on taxation irregularities.

Last week Mr Truman dismissed Mr McGrath’s chief assistant (Mr Lamar Caudle) for dealings with delinquent taxpayers. The President said to-day: “Wrongdoers have no house with me,* no matter who they are or how big they are."

He added that he did not anticipate the voluntary or requested resignation of any members of nis Cabinet in the course of his clean-up. Mr Truman compared the current wave of criticism of the alleged corruption in the Government to what he called the “ballyhoo about Communists in the Government.” He said the great majority of those who worked for the Government were honest.