The sun. [volume] (Newberry, S.C.) 1937-1972, January 13, 1950, Image 2
THE NEWBERRY SUN, NEWBERRY, S. C
‘Airtight’ Case Iced
r ! IS NOT OFTEN that treasury
agents turn up a tax fraud case
against a big corporation. This is
partly because most big corpora
tions have their books audited by
reputable firms, but also because it
is almost impossible for the T-men
to scrutinize carefully the compli
cated books of the big corpora
tions.
The internal revenue bureau is
so understaffed—thanks largely to
the recent GOP 80th congress—
that it is impossible for its agents
to take enough time to go through
all corporate books.
Recently, however, treasury
agents stumbled into what they
considered an airtight ta": fraud
case against the Mid-Continent Pe
troleum corporation in Tulsa, Okla.
The case was considered so
airtight that there was not the
slightest doubt, they thought,
about criminal prosecution.
However, the wire-pullers got
busy and the criminal aspects
of the Mid-Continent case are
now on ice.
The oil company will not have
to pay a tax bill of six million dol
lars plus 50 per cent penalty, as
recommended by the T-men. In
stead, honest taxpayers will have
to make up the difference.
The reason for the treasury’s
case against Mid-Continent was
considered so airtight was that a
former accountant for the company
had furnished the evidence for the
government.
Employee Got Data
While working for the company,
he had caught it making capital
expenditures for plant expansion
during the war years and then
charging them up as “repairs.”
Though the lower offices of Mid-
Continent showed the real nature
of the improvements, these im
provements were changed to read
“repairs.” when the books went up
to the top office. Repairs, of
course, are tax deductible, while
improvements are a capital invest
ment abd not deductible.
Mid -vContinent officials gave
careful Instructions that - the re
ceipts anA orders for the improve
ments be ofcstroycd, but one of its
bookkeepersVjust as carefully
tained them \nd turned them
treasury. As aresi
The agentwho first handled ^his
case was Frank W. Lohn, chief of
intelligence for the Kansas City
district. He recommended crimi
nal prosecution and sent the case
on to Mike Seltzer, chief of the
penal division of the Kansas City
office.
Baft while fthe case was still
pending in Kansas City, Daniel
Bolich, deputy commissioner of
internal revenue in Washing
ton, requested a conference at
Oklahoma City. This was held,
and Bolich, for reasons best
known to himself, came all the
way to Oklahoma from Wash
ington to participate in the con
ference. Lohn and Seltzer, who
also participated, informed him
that the Mid-Continent case
was fraud and should be pros
ecuted.
Despite this. Commissioner
Bolich ordered the investigation
stopped and had the case trans
ferred to Washington.
When the case reached Washing
ton, a conference was held in
Bolich’s office, at which general
counsel Charles Oliphant was not
represented. This is highly unusual.
For, ordinarily, a criminal case
must go to the chief counsel’s of
fice for disposal. It does not^go to
the office of a deputy commission,
er.
loutisel By-Passed
Bolich ordered it to
his office and although the general
counsel was not represented, the
defaulting oil company was repre
sented by Benjamin Saunders of
the law firm of Charley Hamel.
Hamel, former head of the board
of tax appeals, and formerly in the
internal revenue bureau, is a Re
publican who sometimes has been
retained by leading Democrats
suffering from tax troubles. It was
Hamel who expertly handled the
income-tax cases of Boss Frank
Hague of Jersey City and Mayor Ed
Kelly of Chicago, both during the
Hoover administration.
At thin conference, commissioner
Bolich finally decided to let Mid-
Continent off for three million—in
stead of six million recommended
by the T-men. He also decided
against any appreciable fraud pen
alty.
Only after this was decided did
Bolich send the case to general
counsel Oliphant with instructions
to close the penal side of the case
—in other words, drop criminal
prosecution.
Deputy Commissoner Bolich was
former head of internal revenue
intelligence in New York, at which
time he was close to many Tam
many leaders. He was sent to his
present key spot in Washington by
Joe Nunan, another Tammany
yn* n , who once served as commis
sioner of internal revenue.
WEEKLY NEWS ANALYSIS
Change Seen for Health Measure:
Frenzied Reds Acclaim Stalin at 70;
Hungary Off-Limits for Americans
(EDITOR’S NOTE: When opinions are expressed in these eolnmns, they are those of
Western Newspaper Union’s news analysts and not necessarily of this newspaper.)
HEALTH BILL:
Changes Planned
There was little likelihood that it
would amount to anything in the
long run—since the bill seems fore
doomed to failure—but Oscar
Ewing, federal security adminis
trator, let it be known he will rec
ommend some changes in the ad
ministration’s medical - insurance
bill now before congress.
EWING’S conviction that the
measure as drawn could stand
some revision came after he ob
tained a personal insight into the
socialized health program as prac
ticed in England and other Euro
pean countries.
Ewing said his recommenda
tions were not completely formu
lated, but indicated there would
be a provision in the bill to re
duce the opportunity for collusion
between patients and doctors to
augment medical fees.
The approach under considera
tion by the U.S. survey group is to
require the patient to pay a part
of the cost of the medical service
—not to a doctor, but to an insur
ance fund.
AS THE U.S. BILL is now
drafted, doctors would be compen
sated in any or all of three ways
—a per capita payment irrespec
tive of service, a straight salary,
or a fee basis.
However, it might very well be
much ado about nothing, as it
seemed apparent neither the peo
ple of the U.S., the medical profes
sion, or a sufficient number of con
gressmen are in the mood for in
stallation of socialized medicine
in the United States.
HUNGARY:
Off-Limits
The United States, irked and
with patience worn thin, placed
Communist-controlled Hungary off
limits for Americans traveling
abroad.
The action^jtfSs taken because
tt*© ^iftgtirian government has
no attention to U.S. demands
that Robert A. Vogeler, an official
of ^ie International Telephone &
Telegraph corporation had not
-aftet.
Labor Honored
This is a photograph of the
new three-cent U.S. postage
stamp which will be issued to
commemorate the 100th anni
versary of the birth of Samnel
Gompers, great American la
bor leader. It will be printed in
purple and will go on sale in
Washington on January 27.
STALIN:
iber 18. .
ovember 18. At that time, several
other Americans were taken into
custody by the Hungarians.
The American note placing the
travel-ban on Americans to Hun
gary again demanded Vogeler’s
release and reserved the right to
claim damages for any injuries
he may have suffered.
Although the U.S. protest was di
rected only to the Vogeler case,
a state department spokesman
said that it applied also to the ar
rest of Israel Jacobsen, head of
the American joint distribution
committee’s Hungarian office.
It was a strong note and indi
cated the temper of the U.S. state
department, but its effect could
be determined only in the release
or further detention of Vogeler and
his imprisoned fellow-Americans.
CUPID:
Busy Fellow
Cupid was a very busy fellow
indeed as the holiday season came
and went. And most of his activity
was centered in the upper brackets
of U.S. celebrities.
Hardly had he sat down to rest
after bringing Vice-President Al-
ben W. Barkley and Mrs. Hadley
together at the altar, when he was
up and off again, this time to bring
about the union of New York Mayor
O’Dwyer and fashion stylist Eliza
beth Sloan Simpson. This romance
culminated with a wedding in
Florida.
BUT the little fellow with the
wings and the bow and arrows
wasn’t having any rest. With the
ink barely dry on the press an
nouncements of Mayor O’Dwyer’s
wedding, headlines carrying a real
ly romantic wallop were scream
ing again.
And this time, Cupid had hit
where it hurt. Thousands of movie-
struck females across the nation,
with a goodly number of them be
ing Hollywood’s own fair and
famous, were shocked, then
grieved as they learned that long
time movie idol Clark Gable had
wed.
HANDSOME, he-man Gable had
taken to wife the widow of the late
Douglas Fairbanks, Sr. She was
the former Lady Ashley. Gable
gave his age as 48, his bride said
she was 39. The marriage was the
fourth for each.
Big Birthday
The Soviet-dominated world went
into a frenzy as each nation and
satellite strove to outdo the others
in paying tribute to Russia’s
Joseph Stalin on his 70th birth
anniversary.
THE RUSSIANS were in their
usually rare form, using the oc
casion to hurl a thunderous de
mand for peace at the world. In
order to achieve it, they would set
up, they said, annual awards for
those doing the most to preserve
peace and to confound the “war
mongerers.” That category in
cluded, of course, all nations and
governments out of sympathy with
tiie Soviet aim of expansion.
Almost fantastic was the extent
to which tht Stalin-worshippers
-wentjir'adulation qf Stalin. Thou
sands of parcels and-crates, train
loads of merchandise,\whole ex
position halls of trinkets'sund pic
tures, factories and socks, yooks,
and horses, wine and toys, dejica-
were funn<
Moscow from the Elbe to Chiha,
from the Arctic to the Black sea.
NO ONE MAN could ever use
all the gifts, or read all the hon
ors. No one man could ever dis
tribute them. What it was all
worth was anyone’s guess, but cer
tainly millions of dollars.
Eastern Germany alone col
lected 70 freight cars of gifts—
one for each year—as a sort of
whimsical reparations.
The western world paid little
heed to the Soviet chest-beating
over a desire for peace and, so far
as the press recorded, England was
the only nation among the North
Atlantic pact signatories to send
congratulations to Stalin on his
birthday.
But for the Russians, them
selves, to most of whom Stalin is
more legendary than real, the
thrilling, dramatic high spot of the
anniversary celebration came in
Moscow when Stalin, himself,
walked out on a stage to let the
people see him.
INDONESIA:
Uneasy Freedom
The United States of Indonesia
was an established fact. It had be
come formally free after 300 years
of Dutch rule.
But the birth of freedom was no
routine, casual affair. Just like the
case with most republics, the
birthday was grim and turbulent.
Even as freedom was declared,
the new nation deployed troops
and maintained a state of siege in
wide areas to prevent anticipated
disturbances.
IT WAS EXPECTED that Com-
-munists and some die-hards would
attempt to make trouble for the
new republic and to embarrass it
by creating disorders.
Hundreds of troops patrolled the
streets of Batavia and machine-
gun posts were set up at intersec
tions. Dutch troops throughout the
country were confined to barracks
for two days to prevent clashes.
A UNITED NATIONS commis
sion set a truce in the islands
which ended the bloody fighting
between the Indonesians and
Dutch, and also supported a Dutch-
Indonesian roundtable conference
at the Hague last fall which led to
the granting of Indonesian inde
pendence.
MECHANICAL BRAIN
Instrument Plots Airplane Performance
A giant computer, which engi
neers believe can do just about
anything except eat and sleep is
performing amazing feats in con
nection with analyses of airplane
performance even before the air
plane is built.
Hie device imitates an airplane
in flight as it develops information
vital to engineers planning air-
uraft for the future. It was lent by
the navy’s research section for use
at the Vought aircraft company
plant in Dallas.
According to engineers describ
ing the device’s functions, it’s
simple. They admit, however, that
it takes years for an operator to
learn how to interpret the an
swers which the machine gives.
However, those studying the device
say it’s time well spent
EINSTEIN:
One Gre&t Law?
Most schoolboys would react
with surprise if told that gravity
is still one of the most puzzling ol
natural forces. They would de
clare that Sir Isaac Newton had
settled all that when, after watch
ing the falling apple, he stated a
theory that may be over-simpli
fied by explaining it as a fact that
“everything that goes up must
come down.”
However, Albert Einstein, friz
zle-haired, unpretentious scientist,
ranked as among the greatest in
the world, and a key figure in the
development of atomic power,
wasn’t content to leave it at that.
EINSTEIN, after a lifetime of
work, had made a great discovery
—a discovery he believes will ex
plain the mystery of gravitation.
One of the greatest of the scien
tific enigmas, gravitation keeps
humans from floating off the
earth, keeps the earth and other
planets spinning always in the
same path around the sun.
According to the new Einstein
theory, which was announced by
the Princeton university press, all
the basic physical laws would be ex
plained in terms of gravitation. It
is an attempt to describe in one
law everything that goes on every
where—from the inside of one
atom to the limits of the universe.
Einstein has been trying to do that
for 30 years.
If Einstein is right, he may hold
the key that will unlock all the
secrets of the universe.
LIKE RELATIVITY, the new
theory is expressed in mathemat
ics. The heart of the explanation of
gravity is four equations, given
In letters or symbols, not numerals.
There was no explanation of
what the symbols mean, but no
physicists were ready yet to try
to talk publicly about the new
theory. It still had to be tested to
see whether it covers all the known
laws or observations about the way
matter and energy and gravitation
aehave.
TAXATION: |
A Warning
It would be charged to politics
and an effort to smear the “Fair
Deal” program, but house GOP
leader Joseph W. Martin struck a
logical note when he warned that
a tax increase in 1950 might throw
the nation into an economic '’tail-
spin” and cost millions of workers
(heir jobs.
MARTIN took a jibe at President
Truman’s indication that some ex
cise taxes might be lowered by
ieclaring:
“It appears Mr. Truman is about
to fly a 600-million-dollar kite
%. n&uftau tall
That referred to previous state
ments by administration leaders
ihat they knew of no way to avoid
a deficit without higher taxes.
THE PRESIDENT’S PROPOSAL
was referred to as a “package
deal” which Martin said congress
would reject. The plan would sug
gest lopping 600 million dollars off
the excise levies, but would call for
a multi-billion dollar increase in
income taxes.
Martin made it clear that he
would go along on the excise tax
slash, but that he and fellow Re
publicans would do everything pos
sible to prevent any increase in
Income taxes. /
THE REPUBLICAN LEADER
was on good tactical ground for
the simple reason that; 1950 is u
congressioanal election year and
many Democrats would feel com
pelled to go along with the GOP in
an anti-tax hike fight.
Has Everything
CROSSING THE BAR . . . Still clutching the cash register till, a gun
man, identified as Frank Kamick, was killed instantly, by a single shot
by Martin Conroy, an off-duty detective, as Kamick and a masked pal
attempted to hold up a tavern in which Conroy was a patron. As the
gunman’s companion fled. Detective Conroy chased him down the
street, firing twice, but the other gunman escaped. Medical aid was of
no avail as the wounded holdup man failed to regain consciousness.
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This “queen” has everything
—beauty, brains and great
wealth. She is Senorita Anna
Maria Alvarez Calderon, 20,
Peruvian brunette visiting New
York who holds the title of
“beauty queen of the Ameri
cas.” She is heiress to a 32-
million dollar fortune.
BERLIN:
Just in Case
Although an announcement made
it clear that no emergency was ex
pected, the United States army or
dered riot-control training for all
American troops in Berlin.
“Riot control, or street fighting,
is what troops in Berlin presum
ably would have to face if any
thing would develop,” said Col
Julian Ewell. He added that
trouble might comd from the east
ern (German) police, or anywhere.
HgriT to BE TIED—BUT HAPPY . • • Bob Hamilton (left) of Landover,
:d. t and Fred Haas, Jr., of New Orleans, La., gaze soulfuUy Into each
*» eyes, but keep their fingers crossed, after they tied in the Miami
boys tied for the lead _with l99_apiece^for 54
par record for toe 72 holes. Hamilton finally won the tournament.
NEW COMMANDER . . . Gen.
Clement Blanc has taken over the
job as commander-in-chief of toe
French army with headquarters
in Paris.
CLASSIFIED
DEPARTMENT
BUSINESS A INVEST. OPPOR-
ZOO INCOME PROVIDES you with an in
come of $10.00 to $20.00 weekly. A new
eoin operated business machine in big
demand by restaurants, hotels, cocktail
lounges, bus stations, railway stations,
etcT Machine unconditionally guaranteed
for two years. Nothing to get out of
order. We will either ship machine to you
prepaid or place on locations and maU
your income from machine weekly. Never
sick and never wants a day
24 hours a day. Write P.O. Be* 234 -
JaeksenvUle 1, Fla.
DRUG AND SAdrles • «*5 0 eUe i , A c 1 £'
cation, lease, includes fixtures, stock.
Price: $20,000. J. E. TAYLOR. 1M.
gtaart, Florida.
MODERN, best equipped cabinet shop In
North Alabama. Reason for aale, ill
health. Write Pox $»$. Sheffield, Ala. _
HELP WANTED—MEN
PROFITABLE repeat baslness especial
ly* attractive if you contact buslnessor
professional offices. Details | r ee- ft???
Marr Sapply, Bex 1<$, Walled Lake. Mlea.
MACHINERY A SUPPLIES
FOR immediate male, sixty textile chen-
ille machines, both single
Also tables with individual mo
tors for same. Information upon reouest.
P.O. Bex 11. Calhesa, Qa. _
MISCELLANEOUS
vmNisY—Pure extracted sourwood _1
Nerth Carelixa. ± —
' iTirir WINE FOR $5® GALLON
Fathef^BcMdlct’I secret wine
rm No fuss.. Easy directions •LOO.
g/ggaurer, Glen Sattea, Gashes, Canaaa.
MUSICAL INSTRUMENTS
DENOUNCES SANTA . , . Rev.
John Sinnott Martin, editor of toe
Catholic Review, editorialized that
“Santa toe saint has been lost in
Santa toe sngai daddy,” and that
toe original St. Nicholas has be
come toe forgotten man in toe
orgy of commercialism surround
ing Christmas.
What Don a Mother Want
For Hor Little fiirll
Admit, it. Mother. You want ear
thing—beauty, brains, beaus. Fine
clothes, poise, perjonaUty. You want
her to be a good dancer, to stana
straight and true, to play better ten
nis or golf than other gjrie- _.
But are you giving her that extra
insurance T Music to enjoy. !
alone—if the beaus aren’t as frequent
asymT hoped? Music to make up for
other things that may not be as
e entiful as you planned? Music to
>ep her heart happy. and her soul
OC Today! ? more than ever before,
thoughtful parents realize Jb®
tance of the benefits of nuisic. As
your WurUtzer dealer, we invite you
to come in and see the' new Wurlit-
zer S pinette pianos . . . to find out
how these more attractive
bring music into your home at mod-
era YOlTR t ' WURUTZER DEALER
E. E. F®rb«* & Sonj ~
Plan* Co., Inc,/
Branch ^ores* Annlstx^, G^lsden, De
catur, Florence, Montgomery.
V
PERSONAL
ARRESTED BY REDS . . . Israel
Jacobson, head of American Joint
Distribution Committee’s Buda
pest office, has been arrested by
Hungarian Communist police, the
Vienna office of too committee
announces.
BOUQUET OF VIOLETS . . . Here is the newest in twin swim suits.
Movie starlets Dorothy Abbott and Jean Ruth model the 1950 swim suits
named “wild violets” at the pool of toe Franciscan hotel In Hollywood,
Calif. The design of these modern suits was inspired by 18th century
French porcelain. The suits are made of nylon and laton. They have a
chaukelle finish. Both toe two-piece and toe single-piece suit are of toe
same material. Wonder if the girls plan to get ’em wet?
QUEEN OF TANGERINES . . .
It’s sweets for toe sweet as Neva
Langley, Lakeland, Fla., chosen
queen of toe seventh annual tan
gerine contest, bites into a seg
ment of a tangerine after winning
toe contest at Cypress Gardens,
Fla., from a group of 17 girls from
over toe sunshine state.
SILVER-HAIRS OF THE SILVER SCREEN . . . The fabulous days of
Hollywood when movies were in their infancy arc fondly recalled by
these three pioneers of toe industry. In happy reunion arc Claire Wind
sor (left), Reginald Denny and Mae Murray, who were among toe
brightest stars of toe sUent screen. They were guests at a recent testi
monial given for Cecil B. DeMiUe on the occasion of his 35to anni-
BEST BRITISH NEWS PICTURE
. . . This photo of King George VI
won for Reginald Palmer, I. N. S.,
toe top award as the best British
news picture of toe year in the
British division of toe annual En
cyclopedia Britannica contest.
LOSINfi YOUR I HAIR? |
New scientific discovery of the
cause, treatment, and preven
tion . of bdldness offered by
noted Hollywood authority.
team too scientific facts on
“HOW YOUB HAIR GROWS/*
and “WHY MEN (AND WOMEN)
City,
. POULTRY. CHICKS * EQUIP. _
FIRST CLASS COCKEREL CHICKS
83.00 per 100 and UP _ _ .
White Leghorn cockerel# Friday and Sat-
Atlaata $, Oa.
BEAL ESTATE—HOUSES
TORic, ALA. 4 hedrita.. 2 bath frame,
half block main hwy.. thriving torn*
2500 pop., radiant gas heat, lot «xl80.
New churches and schools within 3
block*- $8750.
40$ College St.,
York. Ala.
Keep Polled on Values
By Reading the Ads
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2 drops of Penetro Nose Drops
In each
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5fSg£ PENETRO NOSE
brecthe 0,-^
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benefits of a mustard plaster without
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it on chest, throat and back.
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WNU—7
02—50
FBI UIIBI AC1IS All PAH! IP
RHEUMATISM
NEURITIS-LUMBAGO
« T MCNEILS
MAGIC
iREMEDY
BRINGS BLESSED RELIEF
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