Newspaper Clipping, "Indictment Talk Spiked by Milligan"

Indictment STRUMANT News Continued From Page NARA Talk Spiked No Indictments torney at St. Louis, and a law part- ner of William L. Igoe, a St. Louis political leader, were closeted in By Milligan conference with District Attorney Milligan for nearly two hours. Much Work May Remain If McCormack, who knew Street well and was familiar with the Murphy and Hoover Quiz Continues compromise settlement negotiations, has been able to give the grand In Transactions jury any light on the subject of Make Short Visit the mystery fund payees, then the Of Pendergast investigation may be nearing defi- nite results and a report to the federal court. Officials Depart Maurice M. Milligan, Otherwise, the range of witnesses United States district attor- going before the grand jury seems After Prison Trip to indicate that there remains a lot ney, branded as without of investigating to do before the Frank Murphy, Attorney General foundation today, a report final report can be made and the inquiry closed. of the United States, and J. Edgar that the federal grand jury Concentrate on 1936 Hoover, Director of the Federal already had voted indict- The investigation of Pendergast's Bureau of Investigation, may know ments in the $447,500 fire business affairs was understood to the secrets of Kansas City's federal be based entirely on efforts to de- grand jury, but they had nothing to insurance compromise mys- termine whether he had made ade- say about it in the short time they tery fund investigation. quate income tax returns in 1936. } This would seem to indicate an 1 were in Kansas City late yesterday. The grand jury's work in this in- attempt on the part of government i Murphy and Hoover, on a routine vestigation is not complete," Mr. investigators to tie in the income 1 inspection tour, arrived at the Mu- Milligan said, "and no indictments tax returns of prominent Missouri 1 nicipal Airport at 3:55 p.m. yester- have been prepared so far. political figures with the investiga- ( day by Transcontinental & Western tion of the mystery fund of $447,500 1 The district attorney has been spent in Missouri allegedly in con- Air from St. Louis. They left Kan- working closely with the grand jury nection with the 80-20 insurance sas City at 9:15 p.m. for Brooklyn, in the inquiry, which includes in- rate settlement. N. Y., taking off in a rain. vestigations of income tax returns The recorder of deeds at St. Louis, Murphy and Hoover were met by of several prominent Missouri poli- John P. English, appeared at the E. P. Guinane, in charge of the ticians. federal building today in response Kansas City field office of the Money to Street to a subpoena instructing him to produce all books, records and in- FBI; Maurice M. Milligan, United Today the jury continued its formation with reference to cam- States district attorney; Sam Blair, check of business transactions of paign funds and expenditures in assistant district attorney, and sev- T. J. Pendergast, Democratic leader. 1934, 1935, 1936 and 1937 by the eral special agents of the FBI. It was understood the income tax state committee or John Mangle, They walked from the plane to returns of the party leader in 1936 treasurer of the Democratic State a motorcar parked a few feet away. were under scrutiny. Committee. A police escort of motorcycle pa- It was in February, 1936, that the Bookkeeper First Witness trolmen under Serg. George Mc- bulk of the mystery fund, about $347,000 of it, was turned over to English's appearance was consid- Meachin was not used by the FBI car. From the airport Hoover, the late Charles P. Street, then ered for the purpose of continuing Murphy and Milligan were driven chairman of the subscribers' actu- the line of questioning indicated to the federal prison at Leaven- arial committee for the fire iusur- last week when members of the Jackson County Democratic Com- worth. ance companies involved in the mittee were subpoenaed. Milligan was with Hoover and compromise settlement. The first witness today was Wood- Murphy throughout the five hours Officials of the companies are un- row Glynn, bookkeeper for the At- they were here. Murphy would not derstood to have testified, before las Lumber Company. comment on the present investiga- the grand jury, they turned the Other witnesses expected to be tion into the mysterious $447,500, money over to Street when he told interrogated today by the grand paid by insurance company execu- them it was needed to settle the tives to the late Charles R. Street, 1 jury were W. T. Doherty, president rate case in Missouri. They told co-trustee in the 80-20 rate settle- S of the Atlas Lumber Company, who District Attorney Milligan they did $ said he had sold lumber to Pender- ment in Missouri. not know to whom Street turned e gast for construction of barns and over the money. other buildings on the latter's farm Procedure Complicated in Clay County; Lester Jordan, pres- Street died in February, 1938. ident of the Sanitary Service Com- I tax matters. Had he lived, the federal govern- ment work of running down the re- cipients of the mystery fund and collecting income tax on it would have been simplified. Under ordinary procedure in such matters, Street would have been subjected to inquiry by federal in- come tax agents as to who got the money. If, for reasons of his own, he declined to reveal names of the recipients. then the government