The Birmingham age-herald., 1924-03-05
CAPITALBACKED ANTI-BONUS BODY
 FOUNDER SAYS
Allen Says Mellon Gang Used Campaign Funds
 For Tax Fight
By E. B MACDONALD

(By Leased Wire to The Age-Heraido
 WASHINGTON, March 4.-Close business associates of Secretary of the Treasury Mellon backed the campaign carried on against adjusted compensa- tion by the Ex.Seryice Mems Anti Bonus league. George s. Davison of Pittsburg, president of the Gulf Re- fining company" Mellon" concern contributed $20,000 and raised other funds, according to Edward l.. Allen, founder of the league, but not now connected with it.
 At the same time, Allen charged that funds collected for the anti-bonus cam paign by the league were diverted into propaganda for the Mellon tax reduction plan, and that the so-called "citizen's s committees" organized to help the league, in reality concentrated their ef- forts on passage of the treasury measure.
 Allen told the ways and means com mittee of the House Tuesday that the same forces which were instrumental in deluging Congress with shower of petitions to pass the Mellon plan, have been the prime movers in the campaign to blockppassage of the bonus.
 Big business, he. said, swung in behind the league solidly, not only morally but financially and within short time after a campaign was instituted by the league for funds it, passed out of the hands of it's founders and became the tool of the "anti-bouns" and pro Mellon" forces.
 Can't Prove Diversion
 Allen stated, however, that he never had been able to prove his strong be- lief that the funds for the anti-bonus campaign were actually diverted; but S40,0O0 collected from the business in ton, never were accounted for and he had his suspicious that they wsst foI the wrong cause; l Disgust for the methods of the league led him to leave it two. months ago Allen stated. He pointed out that in their campaign members of the league used the name of the United States Chamber of Commerce as having in dorsed them. That organization, how ever, denies having done so. He also pointed to the solicitors who were given 20 per cent ''cut" on all funds col lected in the campaign.
 Allen declared that the league was not truly representing the opinion of any large section of the ex-service men that its membership was a scant 10000 that there were but 400 dues paying members, and that so per cent of its membership was made up of wealthy men who served during the war as com missioned officers.
 The list of contributors to the league 6 campaign fund includes the names of America's wealthiest men. Railroad magnates, industrial captains, oil opera tors and business men are represented in the list.
 Some of the more prominent meI with their connections follow:
 Elbert H. Gary, United States Steel company: the firm of Hornblower and Weeks, of which Secretary of War Weeks is former member; Thomas w Lamont, of J. P. Morgan and company Avery Andrews, Royal Dutch Oil; Ralph Pulitzer, newspaper publisher Harold $. Vanderbilt, New York Cen tral railroad; the American Can com pany Charles G. Auchinloss, New York banker; William H. Childs, Allied Chemical and Dye company; Lewis L. Clarke, international banker; Colgate and company; Seymour l.. Cromwell President of the New York Stock Ex- change; Cleveland II. Dodge. railroad magnate; Howard Elliott, Northern Pacific railroad Stuvesant Fish, rail road magnate; Julius Fleischman, bread king; Charles Hayden, director of more than 90 corporations; Charles H. Sabin, capitalist; the Thompson-Starrett com pany and Paul NJ. Warburg, inter. national banker.
 In addition there are 65O other names nf man nnuaIlv nrnminanf