Mr. OLSON. And Liquor, I believe that is the name of it.
Mr. FLANAGAN. Alpine Wine & Liquor Co.?

Mr. OLSON. And Liquor; yes, sir.

Mr. FLANAGAN. Where is that located?

Mr. OLSON. In Brooklyn.

Mr. FLANAGAN. Brooklyn, N. Y.

Mr. OLSON. Yes.

Mr. FLANAGAN. Was that client for the American Lithofold obtained through the assistance of Mr. Nunan?

Mr. OLSON. I believe that is so.

Mr. FLANAGAN. And you received half of the commissions on those sales?

Mr. OLSON. Yes, sir.

Mr. FLANAGAN. Were there any others obtained by Mr. Nunan? Mr. OLSON. I believe there was the Peerless. I believe it is Peerless Wine & Liquor. I do not know the correct name, but I think that is it.

Mr. FLANAGAN. Peerless Wine & Liquor Co.?

Mr. OLSON. Yes.

Mr. FLANAGAN. Where are they located?

Mr. OLSON. In Brooklyn, I believe.

Mr. FLANAGAN. Brooklyn, N. Y.?

Mr. OLSON. Yes, sir.

Mr. FLANAGAN. Was it Mr. Nunan that obtained that business for the American Lithofold?

Mr. OLSON. I understand through his connections that it was obtained by Mr. Nunan.

Mr. FLANAGAN. And did you again receive half of those commissions?

Mr. OLSON. Yes, sir.

Mr. FLANAGAN. Were there any other sales made through the efforts of Mr. Nunan?

Mr. OLSON. I believe there were additional, but I do not recall them." Mr. FLANAGAN. Were all of the other liquor companies or companies engaged in the alcohol-beverage business?

Mr. OLSON. So far as I know; yes, sir.

Mr. FLANAGAN. Did you ever call any of these other companies or these companies we are now talking about, Blue Crest or Alpine Wine, Peerless imports?

Mr. OLSON. No, sir.

Mr. FLANAGAN. They were entirely handled by Mr. Nunan?

Mr. OLSON. Yes, sir.

Mr. FLANAGAN. Recalling your testimony of yesterday, you say that you contacted only two organizations or companies with regard to selling American Lithofold products?

Mr. OLSON. Yes, sir.

Mr. FLANAGAN. That was Ruppert's Brewery and the AustinNichols Co.?

Mr. OLSON. Yes, sir.

Senator NIXON. At that point, just a moment, Mr. Flanagan.

What do you mean by a contact?

Mr. OLSON. I called them on the phone, Senator.

Senator NIXON. Did you write any letters in addition to that?

Mr. OLSON. No, sir.

Senator NIXON. Did you authorize the writing of any letters, the use of your name-did you authorize anybody else to call them or write them in your name?

Mr. OLSON. I never authorized anybody at any time.
Senator NIXON. Did anybody else?

Mr. OLSON. I understand they did.

Senator NIXON. You do?

Mr. OLSON. Yes. But I never authorized it.

Senator NIXON. You did not know anything about it?

Mr. OLSON. No, sir.

Senator NIXON. Were you greatly surprised?

Mr. OLSON. Yes, sir.

Senator NIXON. Go ahead.

Mr. FLANAGAN. Did you make any other efforts to obtain business for American Lithofold other than these two calls that you mentioned now, to Ruppert's and to Austin-Nichols?

Mr. OLSON. No, sir.

Mr. FLANAGAN. Did you take any part in approving a Treasury Department form known as 52-B, which is a transcript of a wholesale liquor dealer's monthly report form?

Mr. OLSON. Yes, sir.

Mr. FLANAGAN. I have in my hand a copy of one of these forms and will place it in the record at the appropriate time.

Will you tell me the story as to what you did in connection with

this form?

Mr. OLSON. Mr. Circele from the American Lithofold Corp.————— Mr. FLANAGAN. That is Mr. Vonne Circele?

Mr. OLSON. Yes, sir.

Mr. FLANAGAN. He is sales representative of New York?
Mr. OLSON. Yes.

Mr. FLANAGAN. Proceed.

Mr. OLSON. He called me several times in regard to these forms. I was not familiar with the form. That was around about 1948. And after numerous phone calls, I made an appointment with him, and he came to the ATU office, the Alcohol Tax Unit's office at 253 Broad

way.

Mr. FLANAGAN. When was this?

Mr. OLSON. I should say that was the latter part of 1948 or might have been the first part of 1949.

I looked at it and I was not familiar with it. And I called one of my assistants in and he explained it to my assistant. They went over the matter, not with me, but several times I understand subsequently, and my assistant came back to me and stated that he thought the suggestions propounded by Mr. Circele would be very good for the Bureau and it would help the Bureau and it also would help the taxpayer.

Subsequent to that Mr. Circele asked me what did I think about it. I took the word of my assistant, but I told him that I had no authority as a district supervisor to approve or disapprove it and it would have to be taken up in Washington by the Bureau. My assistant knew the man that handled it in the Bureau. And he wanted to know— Mr. Circele-were there any objections to that if he went down to

see him. I said there was no objection whatever. He wanted to know if it was all right to use my name. And so far as I was concerned, or my office was concerned, was it approved. I said, "As far as my office is concerned, it was approved and you could state it to whoever you saw in Washington and leave it up to them for their decision." Mr. FLANAGAN. And what happened then, did Washington approve this form?

Mr. OLSON. I think about a month or so after that Washington approved the form.

Mr. FLANAGAN. And this form was then issued by the Treasury Department to be used by all wholesale liquor dealers throughout the United States to make out their monthly reports?

Mr. OLSON. I do not think, Mr. Flanagan, it was issued by the Treasury Department or the Bureau of Internal Revenue, but the form was approved in case that anybody could print it, so they could use that modified form.

Mr. FLANAGAN. The forms actually would be bought, then, by the liquor dealers themselves?

Mr. OLSON. Yes, sir.

Mr. FLANAGAN. And that form was approved by the Bureau of Internal Revenue?

Mr. OLSON. Yes, sir.

Mr. FLANAGAN. Did you receive any commissions in connection with the sale of any of those forms?

Mr. OLSON. None whatever.

Mr. FLANAGAN. How do you know that none of those commissions that you received were in connection with the sale of that type of form?

Mr. OLSON. I have never had an accounting from the American Lithofold Corp., and at this moment I do not know what I

Mr. FLANAGAN. As a matter of fact, you do not know?

Mr. OLSON. I do not, Mr. Flanagan.

Mr. FLANAGAN. I will place that form in the record.

(The form 52-B was marked "Exhibit 26" and will be found in the appendix on p. 1238.)

Senator NIXON. As a matter of fact, you were not even paid on a straight commission basis, were you?

Mr. OLSON. I did not hear your question.

Senator NIXON. You were not paid on a straight commission basis, were you? You were paid, you had a drawing account?

Mr. OLSON. Yes, sir.

Senator NIXON. So you would not know whether that drawing account included some compensation for having assisted in the development of this form or not, would you?

Mr. OLSON. I would not know that, Senator.

Senator NIXON. That would be because you had no accounting to indicate that this was excluded or included, either way?

Mr. OLSON. It was a drawing account against commission.

Senator NIXON. I see. But have you ever had any accounting on the commissions to indicate your drawing account exceeded or was less than the commissions you earned?

Mr. OLSON. No, sir.

Senator NIXON. In fact, from what you have told us today it is quite likely that the drawing account was considerably more than the commissions you earned, is it not?

Mr. OLSON. It could be so, Senator.

Senator NIXON. Actually it was so, was it not?

Mr. OLSON. I think so.

Senator NIXON. Yes. And so it is very possible that some of the drawing account might have been attributed to this form? Mr. OLSON. Yes, sir.

Senator NIXON. That is all.

Mr. FLANAGAN. Mr. Olson, at any time while you were collecting commissions from the American Lithofold or negotiating business on their behalf, did you receive authorization from any of your superiors or from anyone in the Bureau of Internal Revenue to engage in this type of business?

Mr. OLSON. No, sir.

Mr. FLANAGAN. Did you then or do you now feel that it was proper for you as the supervisor of the Alcohol Tax Unit to engage in this type of business with the very people that you were supervising? Mr. OLSON. Yes, sir.

Senator MCCLELLAN. What do you mean, "Yes, sir"?

Mr. OLSON. That I do.

Senator MCCLELLAN. You think it is all right?

my

Mr. OLSON. They never influenced me in any way. I have never been influenced in any way. I have never used influence in any way, and I think morally and legally that it was correct, providing I did not do business direct with them.

Senator MCCLELLAN. How can you say that they were not influenced by the fact that you were the supervisor and contacting them and suggesting they give their business to a particular firm; do you not know it was the intent to influence them?

Mr. OLSON. Senator

Senator MCCLELLAN. You did influence them, do you not know that? Mr. OLSON. No, sir. I called two people, Senator.

Senator MCCLELLAN. Do you have any influence with them?

Mr. OLSON. I have known them a long while.

Senator MCCLELLAN. Did you get any business?

Mr. OLSON. Yes, sir.

Senator MCCLELLAN. You had influence then, did you not?
Mr. OLSON. Yes, sir.

Senator MCCLELLAN. They would not have gotten the business if you had not called?

Mr. OLSON. One of them had been doing business prior to that with the American Lithofold Corp.

Senator MCCLELLAN. All right. Apparently you had to contact them again to get some more business, that is why you contacted them to earn a commission?

Mr. OLSON. Yes, sir.

Senator MCCLELLAN. To influence them to get business. Now did you influence them or did you not?

Mr. OLSON. I believe I did.

Senator McCLELLAN, I think so, too.

Senator NIXON. Have you ever sold printing before?
Mr. OLSON. No, sir.

Senator NIXON. The first time you ever did it?

Mr. OLSON. Yes, sir.

Senator NIXON. Why do you think the American Lithofold put you on a drawing account of $750 a month?

Mr. OLSON. I thought because I knew a lot of people in New York. I was born there. I knew a lot of manufacturers.

Senator NIXON. Speak just a bit louder.

Mr. OLSON. I was born in New York. I am 56. I knew a lot of people in New York, a lot of people knew me, I knew a lot of manufacturers.

Senator NIXON. Of course, Mr. Olson, there are a lot of people born in New York, it is a big city, a lot of them would have liked that $750 a month, a lot of them know lots of manufacturers-why did they pick out you and say, "We are going to give you $750 a month," unless it was because they knew you would influence and could influence people to buy printing from them-people with whom you were dealing in the Alcohol Tax Unit? You see that is the question that concerns the committee.

Mr. OLSON. That was never mentioned to me by Mr. Blauner.

Senator NIXON. Obviously it would not be mentioned. If it would be mentioned then it would put some aura of illegality about the deal, would it not, but from a practical standpoint no other conclusion can be drawn, can it, but that the American Lithofold employed you, you had a full-time job with the Alcohol Tax Unit and paid you $750 a month because they expected you to go out and shake down these people who were dealing with the Alcohol Tax Unit for printing-that is exactly what the deal was, was it not?

Mr. OLSON. I never felt like that.

Senator NIXON. You never felt that way, but they must have felt that way, must they not?

Mr. OLSON. Mr. Senator, I could not account for how they felt or thought.

Senator NIXON. You never sold printing before, had you?

Mr. OLSON. No, sir.

Senator NIXON. You were born in New York, however, you knew lots of people in New York?

Mr. OLSON. Yes, sir.

Senator NIXON. Therefore, you felt that that was the reason they came and were willing to give you $750 a month-it just does not add up, so far as I am concerned.

Mr. FLANAGAN. Mr. Olson, when did you first meet Mr. R. J. Blauner or anyone connected with the American Lithofold Corp.?

Mr. OLSON. I believe it was in the fall of 1948, about November or December.

Mr. FLANAGAN. Under what circumstances did you meet Mr. R. J. Blauner?

Mr. OLSON. Mr. Finnegan introduced me to him.

Mr. FLANAGAN. Mr. James Finnegan?

Mr. OLSON. Yes, sir.

Mr. FLANAGAN. At that time, in the fall of 1948, did you have any discussion with Mr. Blauner concerning the possibility of your working for that corporation?

Mr. OLSON. Yes, sir.