Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-11-05


$1,000; Aluminium Co. OF America
$1,000; o. P. and M. j. Van Sweringen
of Cleveland, 81 900; Armour g. Co.
81 900; the Kellogg Co. Battle Greek
Mich, $500; Illinois Central Railroad
Co. of Chicago, $500, and w. L. Mellon
Pittsburgh, $1,000.
MELONS contribution was listed as
miscellaneous. Blaine asked Arnold II
he knew of any reason Mellon should
wish to hide it.
No" the witness said, "I suppose
there are men who do not care to have
it known" He said Mellon had con-
tributed 81, 900 year to the Taxpayers
League for the last three years.
do you mean to say that the Secre-
tsry of the Treasury has contributed
to your organizations" Chairman Cara
way asked, confused by the similarity
Of names. w. L. Mellon was tdentined
as the nephew of Secretary Mellon.
Blaine Becomes Sarcastic.
"I suppose" Senator Blaine said.
that YOU wanted to educate Joseph
r. Grundy in taking a citizens part
in his Government. Just what ap-
proach did you make to Grundy and
these corporations that gave small
amounts?
Each time q committee member
sought to obtain comprehensive de-
scription OF what Arnold gave in re-
turn for contributions the witness re-
ferred to "educational service" He
said In reply to questions that the two
organizations had no expert and that
most Of the matter sent out as bull
letins was prepared by himself.
Blaine read into the record the cor
respondence between Arnold and the
firm Of Hornblower a. Weeks, bankers
and stockholders of Boston. 1t was
brought out that the flrm had con-
tributed $500 to the Taxpayers League
and on one occasion requested Arnold
for certain information about inner
itance tax laws in several States. Blaine
brought out that the information Vas
not furnished for q month and finally
vas obtained by Arnold from q flTm OF
tax experts in New York City.
Arnold Replies 10 Blaine.
did you represent to your contribu-
tors that you could influence legisla-
tion?" Blaine asked.
Il did not" Arnold answered. He
added that he supposed that legislation
was influenced by education, Blaine
asked him if he thought for . minute
his bulletins would educate anybody
Arnold said he hoped so.
Commenting on numerous statements
Senator Blaine made in ridiculmg
ArnoldS services, the witness repeatedly
stated, well, they are satisfied, Sena-
tor" At one point, he asserted that II
he sent q years bulletins to the CON-
mittee, the members would be satisfied
Of the value Of his work. 1T Is their
money" Arnold said. 1T Is not the
taxpayers money. These people are as
smart as you or l."
DO you expect to get contributions
from these companies this year?"
Blaine asked.
1T DO" Arnold asserted. IT am sure
they will contribute, II they haven't
already"
Blaine Questions Arnold.
Senator Blaine, when the hearing
was resumed this morning, questioned
Mr.. Arnold about the activities Of MRS.
Ida NJ Darden, Vance Muse and w. r.
Myrick. Mr.. Arnold said they were sal
aried canvassers, who collect money and
do orEanisation work throughout the
country both for the Southern Tar1n
Association and the American Taxpay-
ers' League. He denied that these So
licitors were working on commission.
Senator Blaine read what was pur-
ported to be an agreement whereby
these three solicitors were to receive 40
per cent of the money they collected,
but Arnold said the agreement had
never been signed and was not IN enect.
Mr.. Muse, according to the witness, Is
now in South Carolina setting up an
organization" for the Southern Tarln
Association. During the Summer, ne
said, Mr.. Muse was working for the
Taxpayers League in Minnesota.
Replying to questions by Senator
Blaine, Mr.. Arnold said the three So
licitorS had made no collections for the
National Council of State Legislatures.
That organization, he explained, was
directed by John Henry Kirby OF Hous-
ton, Tex, its president.
Answers Held Evasive.
When Senators Blaine, Caraway and
Walsh endeavored to get the witness to
explain in detail how various corpora
tons and individuals are induced to
contribute to the Southern Tarih Asso-
citation and the American Taxpayers
League the witness answered in way
characterized by the Senators as eva
Sive." At one point Mr.. Arnold admit
ted that some of the books showing the
financial transactions of these organi-
cations prior to 1929 had been thrown
into the waste basket" or otherwise de-
Htroyed.
why were these books destroyed2
demanded Senator Blaine.
We had no further use for them,
declared Mr.. Arnold.
Il am curious to know" continued
Senator Walsh. how you induce people
TO contribute to your taxpayers league;
We tell business men about the poll
cies of the league" declared Mr.. Ar
mold, adding that in 1924 the league
had Endorsed the tax revision plan
recommended by Secretary OF the Treas
ury Mellon.
well. what have you done since
1922" asked Senator Walsh.
We have been getting men to study
the tax question" declared Mr.. Arnold
Western Contributors Barred.
A little later Senator Blaine read .
letter found in the files In Mr.. Arnold
ONCE in the Munsey Building in Wash
ington. indicating that the Taxpayers
League was opposed to Federal fnheri'
lance tax and also was working to have
the corporation income tax reduced.
From a transcript Of Mr.. Arnold
books for 1928, Senator Blaine read va
rious items, showing contributions b!
corporations IN Kansas City, Missouri
and other cities of the Middle West ant
Far West TO the Taxpayers League. HI
asked Mr.. Arnold whether these entries
in the books were correct.
II can't recall the details" Tepliet
the witness, but l suppose they ar
all right. When we go into a city W
try not to miss anybody"
While contending that he did no
have anything directly to do with tn
National Council of State Legislatures
Mr.sArEold admitted that several thou
sand letters addressed to members
State Legislatures had been sent on
from his ONCE in the Munsey Building
He said they were signed with ia
sinile signature Of Mr.. Kirby with hi
authorization.
Senator Blaine called attention
the fact that Mr.. Arnold had write
letter recently suggesting that none
be solicited for the Southern Tari