Evening star., 1924-03-26
From Yesterdays 5;ao Edition of The star
MELLON ASKS OWN
TAXES Be PROBED
Asks Senate Act as Matter
OF JuStice-Promises to
Aid Inquiry.

Secretary Mellon denied that he had
ever interfered in authority with the
bureau of internal revenue in any way
terday laid before the Senate special
committee investigating the bureau.
At the same time Mr.. Mellon offered
the committee full information on tax
matters of companies in which he is
personally interested, adding that, in
fairness to himself and to the CON-
panies, the committee should make an
immediate investigation.
Refers to Hearing.
TN the hearing before your com
mittee yesterday" said the state
ment, what purported to he a copy
of a memorandum delivered by an
ex-employe TO member of your
committee was introduced, and has
been made the basis for headlines in
the new spapers. which might lead the
public to believe I had sought to in
ffuence the bureau of internal rev.
enue in its consideration of the tax
liability of certain companies in
'As l have already stated, ! have
never interfered in any way with the
bureau OF internal revenue in any tax
matter. Least of all, would ] do so in
cases in which it might be charged that
/ was personally concerned. l feel, how
ever, that it is due to me, and to the
companies involved. that your commit
tee make an immediate investigation. in
order that you may thoroughly satisfy
yourself and the public whether or not
these companies have received any fa-
vors from the government.
Waive Right to Privacy.
Three companies which have been
mentioned are the Gulf Refining Com
pany and its subsidiaries. the Stand
ard. Steel Car Company and the
Aluminium Company of America.
Each of these companies has advised
the commissioner of internal revenue
under the statute and the commits
sioner is authorized to produce to
your committee. without restriction
of any kind, all of the tax returns
and accompanying papers for each
tax year.
'Messrs Ernst & Ernst, certified pub
lie accountants, are familiar with the
tax adjustments of these companies.
since they handled their presentation be-
fore the bureau. They can undoubtedly
be of assistance to your committee in
explaining the complicated questions in
VOWED and j am Informed are ready to
respond to any call of your committee
Mr.. A. G. Ernst will be in Wash
ington on the 10Th and will be avail
able then or thereafter. If question
is later raised with respect to any
other companies in which / may be
interested, | shall be glad to do what
] can to obtain similar publicity to
their returns"
Cousens Tax Discussed.
Solicitor Nelson Harrison of the bu-
reau. at the request of Senator Cou-
zens, republican, Michigan, who is
conducting the inquiry. produced the
senator's own tax returns involving
a proposed additional tax in 1919 of
s2,147.000. The main question at is
sue was an allowance to be made as
to fair market value of a "chari-
Couzens, valued at the time of the
gift at s1,7s6,995. An opinion by
Harrison in 1928, in another case, laid
down principle resulting in a re-
duction of the Couzens assessment by
about s1.0oO,o0o.
Senator Couzens said he had no
knowledge of the details of the case
until he heard them from Harrison.
The senator suggested that the rul-
ing that proposed the additional as
sessment against me was the fairest."