COMMITTEE ON APPROPRIATIONS JOHN TABER, New York, Chairman RICHARD B. WIGGLESWORTH, Massachusetts CLARENCE CANNON, Missouri CHARLES A. PLUMLEY, Vermont FRANCIS H. CASE, South Dakota H. CARL ANDERSEN, Minnesota 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 HARRY R. SHEPPARD, California ялове 6,7R ·A5 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. These officials are requested to take appropriate action on the matters divulged 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, 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, 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 1 |