Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1924-04-01
TALK ON MELLON

washington, March S1-A resolu.
ton designed to Gust Secretary Mel
lon from Office on Technical legal
grounds. launched last Friday by
Senator Mcclellan. Democrat, Ten
nessee, bobbed uc automatically in
the senate today only to land on the
table with no one demanding :. ZION
upon it.
1t was buffetted severely by MIR.
MELONS Republican defenders be-
fore it stranded, while Senator Nc
kellar's was the only voice urging It
on its way. Whether IT will be re-
fioated later, Is matter of dispute
among senate Democratic chieftains,
who conferred during the debate on
the wisdom OF pressing IL, while
Senator Robinson, OF Arkansas, tho
Democratic leader, who returned TO
Washington after an absence OF sew
eral days. disclaimed responsibility
for the move initiated by the Tenncs-
SEQ senator. ns-
Senator Mcclellan declared he was
not charging Mr.. Mellon with any
wrong doing or failure, but merely
Insisting upon enforcement OF Old
statutes forhidding the appointment
as federal fiscal officer OF men "in-
terested or concerned" In the carry
ing on of commercial enterprises.
Senator Reed. Republican, Penn
sylvania, who led the defenders as
serted from personal knowledge that
Mr.. Mellon had Invested himself OF
every commercial and industrial con-
nection that could be questioned in
any way before he went to the treas
ury.
The names OF the mellon COM
panies" were flung about In general
terms during the senate debate. Be-
fore the special senate committee in
vestigating the internal revenue bur-
, eau. howver. the Intimate tax affairs
OF the Gulf Oil Corporation, In which
Mr.. Mellon Is n minority stockhoidcr,
were aired In detail. Sparks few in
the committee room between Sena-
tor Couzens. Republican, Michigan,
! director of the inquiry and Senator
Ernst. Republican, Kentucky. who
, sprang to the defense of the treasury
head when Senator Couzens started
line OF inquiry which the Ken
lucky senator insisted looked as if
the committee was after Mellon"
The Mcclellan resolution was the
last thing before the senate when
1t adjourned Friday and the instant
, Senator Reed plunged into a detail
ed statement OF the interests Mr..
Mellon had at the time he was ten
dered cabinet post by President
Harding.
! Senator Reed. said his own law
partner, Judge James ii. Reed, OF
Pittsburgh. had called Mr.. Melons
attention Immediately to the restric-
tive statutes to which the Nickel
lar resolution turned as a basis for
proposing an investigation to deter
mine the secretary's legal right, to
his office. Mellon welcomed the
chance of escape of cabinet duty
saying he had mo particular en-
thusiasm." his defender stated,~and
fastened to Washington to consult
the late Senator Knox of Pennsyl-
vania. and seek withdrawal OF the
offer by President Harding.
Senator Knox would not agree but
submitted the facts to Washington
law firm for a legal opinion, Sena-
tor Reed said. which held that re-
fention OF non.controlling stock
holdings In commercial companies
was not bar to Office. Senator Reed
himself found later, however, q Sec
ton of the federal reserve act which
made it necessary for Mr.. Mellon to
dispose of ell his holdings In three
Pittsburgh and one New York bank
before he took his oath OF office.
Senator Reed said Mr.. Mellon had
stripped himself or any direct con-I
nection with tho Overholt Distiilery,
been sold or stolen" from the Over-l
holt warehouses. Mr.. Mellon, by I'm
appeal to the company officers since
he had no authority, had prevented
q sale of this liquor for shipment to
England because OF his fear that Il
might be "bootlegged" back again,
Senator Reed added.