Evening star., 1928-03-13

transaction you tell of took place a
month later" Walsh said.
THAT may be-" Mellon replied. Il
can't follow all these Investigations ]
have troubles of my own and much
work to do
Did Mr.. Gilbert act in any other
capacity than that of messenger"
only as messenger"
Tax Inquiry Under Way.
Whats your recollection as TO the
time you had the bonds?"
las / said it's not clear. It may
have been several days or longer. !
nave no recollection positively. 1t was
an incidental matter that was dis
posed Of"
Senator Walsh read into the record
all the correspondence he has had with
Secretary Mellon relating to the Sinclair
bonds and the income tax that might
be due from the now extinct Con-
tneDtaI 1raQinR 20.
One of Melons letters said the agents
of the Internal Revenue Bureau had
been investigating the matter OF the
income tax the Continental should have
paid on its S3.0S0 900 of profits in the
oil deal with the late A. z. Humphreys
of Denver and the Prairie Oil and
Gas Co. and the Sinclair Crude OIL
Purchasing Co.
The Treasury Secretary said the In
quiry had not yet reached the state
where he could advise Senator Walsh
whether any additional legislation was
necessary 10 prevent companies IN the
future from escaping taxes as the Con-
tinental did.
Told Weeks OF Gift.
On March z. Mellon wrote Walsh pro-
testing against O publication. saying the
Treasury was not cooperating with the
Teapot Dome committee In the Conti-
nentaol inquiry. He said that the Treas
ury had assigned Secret Service agents
to aid the committee.
Replying 10 this letter. Senator Walsh
wrote Mellon that the publication had
been embarrassing to him. as the Treas
ury had co-operated
The file OF the Walsh-Melion letters
was complete with the exchange of last
Saturday. when Mellon disclosed for the
first time that Hays had sent $4,000
OF Sinclair bonds TO him for use for po-
liticai purposes.
ITO whom did you convey the infor-
nation that you would make a contribu-
tion?" Walsh asked. resuming question
ing.
ITO Secretary Weeks" Mellon replied,
"He was In the cabinet and was men,
ber Of the national committee"
DO you see any reason why any one
should have thought you wouldn't make
a subscription without its being secured
By bonds?"
Bond Talk Not Clear"
mo. I felt little ashamed OF riding
along and not doing my share for the
| party"
What did you say to Mr. Hays about
bonds2"
Il naturally suggested that he sell
| the bonds and use the money.
What did you understand about the
| bonds?"
TITS not very clear now. was going
| 10 make subscription anyhow"
| Mellon testified that previous To his
| time Hays approached him regarding
| the bonds. he had felt as a cabinet
| member he should make a subscrip-
/ ton and was prepared 10 go beyond
| s30.000 II necessary. hut he did not want
| 10 camouf1age his subscription. He look
! ed then upon the Sinclair contribution
as being lust like donation from any
wealthy man"
| Mellon testified that at the time he
mad no knowledge OF the Continental
! Trading Co.
| Questioned by Nye. Mellon said three
or four persons met him 10 discuss the
cleaning up Of the deficit but Hays was
not present
| Was the matter OF the Sinclair loan
discussed at that meeting?"
Found No Responsibility.
"Oh. no, that was before The bonds
were given"
You knew that Sinclair was In
VOWED. Won't you tell us why you did
not come forward sooner and tell the
committee of the Sinclair boDds?"
| We'll. would that have added any
thlng?" Mellon asked.
you had all the information and al
mat could have been added would have
been my name. II was AN lncidenta
thing, What purpose would have beer
served by that? could not have tolt
about $500 900 In bonds"
YOU had rfakOn 10 assume that tht
bonds Hays gave YOU were Continental
bonds" Nye said
'"'he bonds had been returned,
Mellon said. II never occurred 10 M
that there was any reason for me Il
tell about II, had no resp0nsibilit,
Wiih the Republican national commit,
lee OF with Mr.. Sinclair"
Origin Of Bonds Unknown.
you knew Of Mr.. Hays Testimony
here two weeks ago" asked Senator
Dill, Democrat, Washington,
'fes. he told 0f returning 800 900 ~
bonds and ! assumed that those Wnf'
the ones returned" Mellon replied
Have you talked with Hays re-
centiY?'
mo, ] have moi but have seen hin
frequently since 1924. There Nas ~
0ceaaion for discussing the bonds"
Hasn't u occurred L1 you since tina
these probably were Continental bnnda2
u hah iia more information on tha
ihan The committee had"
Senator Hlait1n, Democrat, New Mek
leo, pressed Mellon for his best rennl
! lection" as i9 ihe time hs got the hond
: from HAYS The Secretary said h
thought u VAS ~ lats November, hii
'ssssiasd that hs could not hs expected