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felt certain that Johnson could "fix things
up" for them. This stato of mind went even
further. The corruption of Johnson's machine
induced many of the individuals under investigation
to make false statements to the agents,
and, as will subsequently appear, even to commit
perjury, intimidate witnesses, tamper with juries
and generally to obstruct justice in Federal
proceedings just as they were accustomed to doing
in the courts of New Jersey.
Because of these factors, the direct Treasury investigation
extended from April 1937 to May 1939, at which time
the inquiry became a joint undertaking in cooperation with
the Tax Division of the Department of Justice. During the
resultant trials and grand jury proceedings and up until
the Johnson trial in JUly 1941, the agents were compelled
to engage in further extensive investigational activities
in order to assist in completely breaking the stubborn
resistance of the racketeers. The results of the Treasury
investigation along the four major lines indicated above
will now be set forth in detail. .
Investigation of Contract Graft
In April, 1937, the Treasury Agents began their
direct investigation of those contractors which rumor
had as paying graft to Johnson. These individuals were
businessmen who kept books and records and maintained
bank accounts, so the agents were able to make fairly
rapid progress in their cases, By December, 1937, they
had submitted reports recommending the criminal prosecution
for tax evasion of 7 individuals and the assessment
of approximately $125,000 in additional taxes and
penalties. The trial in United States District Court
of these cases and their final disposition will be
covered later in this report.
. In their preliminary survey the agents had ascertalned
that one John B. Tomlin, Republican leader of the
1st Ward in Atlantic City and for 20 years a political
henchman of Johnson's, had a son, Morrell B. Tomlin, who
Was engaged in the road contracting business. They had
also ascertained that John Tomlin was a Freeholder of
Atlantic County and was serving as Chairman of the Board
of Freeholders Road Committee. They made the Tomlins
their first subjects of investigation.
. (