The Washington times., 1925-03-14
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limitations "there would not have
been this trouble, and no assessment
would have been levied.
THE Senator from Michigan
should be the last man in the world
to attack the Secretary Of the
Treasury said Ernst. THE latter
has set a splendid example"
Couzens sat motionless In his
chair as Ernst piled verbal invec'
tive upon him.
Instead of ''punishing'' Couzens,
the department has been extremely
fair to him" said Ernst.
1.-THE assessment was laid to give
the bureau time to investigate
charges from an outside source that
Senator Couzens made too low
valuation of Ford motor stock IN
his 1919 income tax report, oe-
cIared Ernst. 1.-THE department OF.
fered Couzens q waiver to sign, ana
the Senator refused to sign II.
Could Have Avoided Trouble.
HAD the waiver been signed, no
assessment would have been made
and II. upon investigation, the de-
nartment found that its inIorma'
ton was correct, no other steps
would have been taken.
Senator Couzens is endeavorlns
to pose as a martyr" said ErnsI'
HE would have US believe ne Is
being prosecuted because ne Is m
vestigating the Internal Revenue
Bureau. The truth is, that II ever
an effort was made to oesmlrcn
a man or the head OF Govern
ment bureau, that effort mas oeeH
and Is now being made by the sen
ator from Michigan. 49,
9Had the bureau acted other than
IT did it would have been grossly
negligent, continued Ernst. II
could not have done other than 10
Investigate a charge that, II passeu
nv. might have lost the Govern
ment $4,000. 00O."
Denies Case was Delayed.
Ernst denied CouZens' statement
that the Treasury for two years
had known about the case and
therefore should have levied the as
sessment at that time instead OF
waiting until six days before the
statute OF limitations had run.
I Immediately endeavored to get IN
touch with Secretary OF the
Treasury Mellon" said Ernest. HE
was away. but this morning | re-
ceived a telegram from him In
New York. In the wire. Mellon
said: 4.
"I understand that you wish 70
learn from me when first was called
t6 nv attention the question OF an
additional tax being due from Sena'
tor Couzens. While the Senate FL
nance Committee last February was
considering extending the life OF
the investigating committee a per-
son who later furnished the bureau
a memorandum called upon me ana
stated that the minority stock
holders. including Senator Couzens
who in 1919 sold their holding T.
Mr.. Ford, owed a large additlonai
tax. .,.o,,,
new TO me. On March 6, / received
the memorandum with a detailed
valuation OF Mr.. Ford's stock. and
copy was given to Senator
Couzens.
Ernest declared he wanted the
country to understand the real
animus behind the investigation
conducted by Couzens.
The Kentucky Senator also com
pared the income taxes paid by
Couzens and Mellon in 1928.
Couzens Paid Only $5,676.
THE tax records show that while
Secretary Mellon in 1923 paid an
income tax Of $1,173, 987.85, Senator
Couzens, whose wealth Is said TO be
$50, 900 900, through the investment
of that wealth in tax-exempt sc
curities. paid only $3.50" said
Ernst.
Ernst further sought to show
that the investigation was inspired
solely by Couzens' animosity to
ward Mellon. Ernst said most OF
the cases under investigation had
been those OF companies in which
Mellon was interested.
Personal AnimOsity, He Says.
There has not been one minute
Of the time that Senator Couzens