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COMMITTEE ON APPROPRIATIONS

JOHN TABER, New York, Chairman

RICHARD B. WIGGLESWORTH, Massachusetts CLARENCE CANNON, Missouri

CHARLES A. PLUMLEY, Vermont
EVERETT M. DIRKSEN, Illinois
ALBERT J. ENGEL, Michigan
KARL STEFAN, Nebraska

FRANCIS H. CASE, South Dakota
FRANK B. KEEFE, Wisconsin
NOBLE J. JOHNSON, Indiana
BEN J. JENSEN, Iowa

H. CARL ANDERSEN, Minnesota
WALTER C. PLOESER, Missouri
HARVE TIBBOTT, Pennsylvania
WALT HORAN, Washington
GORDON CANFIELD, New Jersey
GEORGE B. SCHWABE, Oklahoma
IVOR D. FENTON, Pennsylvania
RALPH E. CHURCH, Illinois
P. W. GRIFFITHS, Ohio

LOWELL STOCKMAN, Oregon

JOHN PHILLIPS, California

ERRETT P. SCRIVNER, Kansas

CHARLES R. ROBERTSON, North Dakota FREDERIC R. COUDERT, JR., New York CLIFF CLEVENGER, Ohio

LOUIS LUDLOW, Indiana

JOHN H. KERR, North Carolina
GEORGE H. MAHON, Texas

HARRY R. SHEPPARD, California
ALBERT THOMAS, Texas
JOE HENDRICKS, Florida
MICHAEL J. KIRWAN, Ohio
W. F. NORRELL, Arkansas
ALBERT GORE, Tennessee
JAMIE L. WHITTEN, Mississippi
GEORGE W. ANDREWS, Alabama
JOHN J. ROONEY, New York
J. VAUGHAN GARY, Virginia
JOE B. BATES, Kentucky
THOMAS J. O'BRIEN, Illinois
JOHN E. FOGARTY, Rhode Island
HENRY M. JACKSON, Washington

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1949

164

COMMITTEE ON APPROPRIATIONS

HOUSE OF REPRESENTATIVES, EIGHTIETH CONGRESS

On December 8, 1947, the Subcommittee for the Treasury and Post Office Departments unanimously adopted the following resolution:

The executive secretary of the subcommittee is directed to transmit to each of the following officials a copy of the hearings conducted on December 4, 5, and 6, 1947, regarding an investigation of the Bureau of Internal Revenue:

The Secretary of the Treasury.

The Attorney General of the United States.

The President of the United States Civil Service Commission.
The Commissioner of Internal Revenue.

These officials are requested to take appropriate action on the matters divulged
by the investigation and hearings and to advise the subcommittee thereon.
The executive secretary is further directed to transmit a copy of the hearings
to Mr. Basil O'Connor, president of the National Foundation for Infantile
Paralysis.

III

THE TREASURY DEPARTMENT APPROPRIATION BILL

HEARINGS CONDUCTED BY THE SUBCOMMITTEE, MESSRS. GORDON CANFIELD (CHAIRMAN), EVERETT M. DIRKSEN, P. W. GRIFFITHS, CHARLES R. ROBERTSON, J. VAUGHAN GARY, JOE B. BATES, AND HENRY M. JACKSON, OF THE COMMITTEE ON APPROPRIATIONS OF THE HOUSE OF REPRESENTATIVES IN CHARGE OF THE TREASURY DEPARTMENT APPROPRIATION BILL FOR THE FISCAL YEAR 1949, ON THE DAYS FOLLOWING, NAMELY:

THURSDAY, DECEMBER 4, 1947.

INVESTIGATION OF BUREAU OF INTERNAL REVENUE

INVESTIGATION OF OFFICE OF COLLECTOR OF INTERNAL REVENUE,
BOSTON, MASS.

Mr. CANFIELD. The committee will come to order. The committee will recall that after the passage of the appropriation bill for the Treasury and Post Office Departments for the fiscal year 1948 reports came to this committee alleging improper distribution of the cuts contained in that bill.

An investigation was ordered by the committee, and pursuant thereto, the investigative staff went into the field and made a preliminary report. This staff is now engaged in preparing a more complete report, and one of the places visited was Boston, Mass.

During the investigators' investigation in Boston they came across serious matters which they felt should be called to the immediate attention of the committee, and we have with us today Mr. Robert E. Lee, a former FBI agent, who is chief investigator for the Appropriations Committee, and he has prepared a report based on the findings of his men in the Boston office of the collector of internal revenue.

I am going to ask the clerk of our committee, Mr. Hobbs, to read this report at this time, and I would request that it be read without interruption on the part of the committee and thereafter, if agreeable to the members of the committee, we will follow the usual procedure of rotation, Mr. Dirksen, Mr. Gary, and so forth, in cross-examination after the chairman has proceeded.

Mr. HOBBS (reading):

Re Internal Revenue Bureau,

Collector of Internal Revenue,
Boston, Mass.

Memorandum to the chairman:

DECEMBER 3, 1947.

Pursuant to instructions of the subcommittee of the Treasury-Post Office, this staff instituted an investigation into the affairs of the Internal Revenue Bureau in July of 1947. The scope of this investigation was to determine the efficiency of the operations of the Internal Revenue Bureau service and to analyze the

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