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111-
N. Y., taking off in a rain.
vestigations of income tax returns
tion of the mystery fund of $447,500
1
Murphy and Hoover were met by
of several prominent Missouri poli-
spent in Missouri allegedly in con-
E. P. Guinane, in charge of the
ticians.
nection with the 80-20 insurance
rate settlement.
Kansas City field office of the
Money to Street
The recorder of deeds at St. Louis,
FBI; Maurice M. Milligan, United
Today the jury continued its
John P. English, appeared at the
States district attorney; Sam Blair,
check of business transactions of
federal building today in response
assistant district attorney, and sev-
T. J. Pendergast, Democratic leader.
to a subpoena instructing him to
eral special agents of the FBI.
It was understood the income tax
produce all books, records and in-
They walked from the plane to
returns of the party leader in 1936
formation with reference to cam-
a motorcar parked a few feet away.
were under scrutiny.
paign funds and expenditures in
A police escort of motorcycle pa-
It was in February, 1936, that the
1934, 1935, 1936 and 1937 by the
trolmen under Serg. George Mc-
bulk of the mystery fund, about
state committee or John Mangle,
Meachin was not used by the FBI
$347,000 of it, was turned over to
treasurer of the Democratic State
car. From the airport Hoover,
the late Charles P. Street, then
Committee.
Murphy and Milligan were driven
chairman of the subscribers' actu-
Bookkeeper First Witness
to the federal prison at Leaven-
arial committee for the fire iusur-
worth.
English's appearance was consid-
ance companies involved in the
Milligan was with Hoover and
ered for the purpose of continuing
compromise settlement.
the line of questioning indicated
Murphy throughout the five hours
Officials of the companies are un-
last week when members of the
they were here. Murphy would not
derstood to have testified, before
Jackson County Democratic Com-
comment on the present investiga-
the grand jury, they turned the
mittee were subpoenaed.
tion into the mysterious $447,500,
money over to Street when he told
The first witness today was Wood-
paid by insurance company execu-
them it was needed to settle the
row Glynn, bookkeeper for the At-
tives to the late Charles R. Street,
rate case in Missouri. They told
las Lumber Company.
co-trustee in the 80-20 rate settle-
District Attorney Milligan they did
Other witnesses expected to be
ment in Missouri.
not know to whom Street turned
interrogated today by the grand
over the money.
1
jury were W. T. Doherty, president
Procedure Complicated
S
of the Atlas Lumber Company, who
said he had sold lumber to Pender-
Street died in February, 1938.
S
gast for construction of barns and
Had he lived, the federal govern-
è
other buildings on the latter's farm
(
ment work of running down the re-
in Clay County; Lester Jordan, pres-
cipients of the mystery fund and
ident of the Sanitary Service Com-
}
collecting income tax on it would
tax matters.
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
could and, no doubt, would have
required him to pay the income
tax, plus the interest and penal-
ties on the $347,000.
Street did pay before his death
the income tax on the other $100,500
turned over to him by the insurance
companies in May, 1935. It com-
prises part of the mystery fund. He
never did reveal to whom he paid
the $100,500. He died before the
Treasury Department discovered
that an additional $347,000 had
passed through his hands from the
insurance companies to certain un-
identified persons in Missouri.
Trace Fund to Missouri
The present grand jury inquiry
here in Kansas City was launched
by District Attorney Milligan when
income tax investigators found that
the mystery fund trail led into Mis-
souri.
Apparently the district attorney's
office considers A. L. McCormack,
St. Louis insurance executive, a key
witness in the inquiry. McCormack
has been before the jury three times
and was excused two weeks ago
subject to recall at any time.
McCormack has admitted receiv-
ing $30,000 from Street, but he de-
clared that sum was for services
rendered prior to the compromise
settlement and had nothing to do
with it.
It was considered significant that
yesterday two attorneys represent-
ing McCormack, Forest W. Hanna
of Kansas City and James E. Car-
roll, St. Louis, a former district at-
Please Turn to Page 2, Column 5.
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Document data
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DTO data
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Context sent to Scholar
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"ocrText": "111-\nN. Y., taking off in a rain.\nvestigations of income tax returns\ntion of the mystery fund of $447,500\n1\nMurphy and Hoover were met by\nof several prominent Missouri poli-\nspent in Missouri allegedly in con-\nE. P. Guinane, in charge of the\nticians.\nnection with the 80-20 insurance\nrate settlement.\nKansas City field office of the\nMoney to Street\nThe recorder of deeds at St. Louis,\nFBI; Maurice M. Milligan, United\nToday the jury continued its\nJohn P. English, appeared at the\nStates district attorney; Sam Blair,\ncheck of business transactions of\nfederal building today in response\nassistant district attorney, and sev-\nT. J. Pendergast, Democratic leader.\nto a subpoena instructing him to\neral special agents of the FBI.\nIt was understood the income tax\nproduce all books, records and in-\nThey walked from the plane to\nreturns of the party leader in 1936\nformation with reference to cam-\na motorcar parked a few feet away.\nwere under scrutiny.\npaign funds and expenditures in\nA police escort of motorcycle pa-\nIt was in February, 1936, that the\n1934, 1935, 1936 and 1937 by the\ntrolmen under Serg. George Mc-\nbulk of the mystery fund, about\nstate committee or John Mangle,\nMeachin was not used by the FBI\n$347,000 of it, was turned over to\ntreasurer of the Democratic State\ncar. From the airport Hoover,\nthe late Charles P. Street, then\nCommittee.\nMurphy and Milligan were driven\nchairman of the subscribers' actu-\nBookkeeper First Witness\nto the federal prison at Leaven-\narial committee for the fire iusur-\nworth.\nEnglish's appearance was consid-\nance companies involved in the\nMilligan was with Hoover and\nered for the purpose of continuing\ncompromise settlement.\nthe line of questioning indicated\nMurphy throughout the five hours\nOfficials of the companies are un-\nlast week when members of the\nthey were here. Murphy would not\nderstood to have testified, before\nJackson County Democratic Com-\ncomment on the present investiga-\nthe grand jury, they turned the\nmittee were subpoenaed.\ntion into the mysterious $447,500,\nmoney over to Street when he told\nThe first witness today was Wood-\npaid by insurance company execu-\nthem it was needed to settle the\nrow Glynn, bookkeeper for the At-\ntives to the late Charles R. Street,\nrate case in Missouri. They told\nlas Lumber Company.\nco-trustee in the 80-20 rate settle-\nDistrict Attorney Milligan they did\nOther witnesses expected to be\nment in Missouri.\nnot know to whom Street turned\ninterrogated today by the grand\nover the money.\n1\njury were W. T. Doherty, president\nProcedure Complicated\nS\nof the Atlas Lumber Company, who\nsaid he had sold lumber to Pender-\nStreet died in February, 1938.\nS\ngast for construction of barns and\nHad he lived, the federal govern-\nè\nother buildings on the latter's farm\n(\nment work of running down the re-\nin Clay County; Lester Jordan, pres-\ncipients of the mystery fund and\nident of the Sanitary Service Com-\n}\ncollecting income tax on it would\ntax matters.\nhave been simplified.\nUnder ordinary procedure in such\nmatters, Street would have been\nsubjected to inquiry by federal in-\ncome tax agents as to who got the\nmoney. If, for reasons of his own,\nhe declined to reveal names of the\nrecipients, then the government\ncould and, no doubt, would have\nrequired him to pay the income\ntax, plus the interest and penal-\nties on the $347,000.\nStreet did pay before his death\nthe income tax on the other $100,500\nturned over to him by the insurance\ncompanies in May, 1935. It com-\nprises part of the mystery fund. He\nnever did reveal to whom he paid\nthe $100,500. He died before the\nTreasury Department discovered\nthat an additional $347,000 had\npassed through his hands from the\ninsurance companies to certain un-\nidentified persons in Missouri.\nTrace Fund to Missouri\nThe present grand jury inquiry\nhere in Kansas City was launched\nby District Attorney Milligan when\nincome tax investigators found that\nthe mystery fund trail led into Mis-\nsouri.\nApparently the district attorney's\noffice considers A. L. McCormack,\nSt. Louis insurance executive, a key\nwitness in the inquiry. McCormack\nhas been before the jury three times\nand was excused two weeks ago\nsubject to recall at any time.\nMcCormack has admitted receiv-\ning $30,000 from Street, but he de-\nclared that sum was for services\nrendered prior to the compromise\nsettlement and had nothing to do\nwith it.\nIt was considered significant that\nyesterday two attorneys represent-\ning McCormack, Forest W. Hanna\nof Kansas City and James E. Car-\nroll, St. Louis, a former district at-\nPlease Turn to Page 2, Column 5."
}