The Washington times., 1929-05-03
MANY TREASURY
HEADS OWNED
STOCKS
By WILLIAM X. HUTCHINSON
International News Service

Amt6Pnat1On0I news service
The effort to force Andrew W.
Mellon out Of the Cabinet because
of his large stock ownership in
corporations suffered a setback to-
day when it was learned that the
three Democrats who served a.
Secretary of the Treasury under
Woodrow Wilson all owned stock.
William Gibbs McAdoo, the war
time presidents son-in-law; Carter
Glass, now a Senator from Vir-
ginia, and David F. Houston all
possessed corporation securi les
while Secretary of the Treasury.
The question, whether their hold
ings made them ineligible for the
Treasury post under the 100-year-
old law forbidding the Secretary
from being interested in or carry
ing on the business of trade or
commerce" never was raised against
any of them.
Senator Glass told International
News Service how he and his Demo
cratic colleagues held stock while
at the head of the Treasury. He
incidentally announced he would
oppose the present move to Gust
Mellon.
WOuldn't Starve
"Of course, / owned stock while
Secretary of the Treasury" said
Glass, in his Virginia drawl. $50
did McAdoo and Houston, too. Why,
was the largest individual stock
holder in an industry down in my
State all the time 1 was in the
Treasury. But l did give up my
bank stock, though that wasn't
hard to do because 1 owned so
little"
Then Glass demanded: ''Are you
in favor of going to the poorhouse
in order to become Secretary Of
the Treasury"
When his question went unan-
swered, the Virginian added; We'll,
that's what you would have to
do if their Interpretation of this
law is correct"
1t previously was brought out
that Alexander Hamilton, first
Secretary Of the Treasury, owned
banking stock while in the Cahi-
net of George Washington. The
Treasury Department also supplied
information showing that secre-
taries in the administrations Of
Cleveland had owned securities.
without the legality of their service
being questioned. zs
Want to Quiz Mellon
The controversy now raging at
secret sessions of the Senate Ju-
dietary committee has developed to
point where one faction demands
the personal Interrogation of Mel
lon on his security holdings. In
a deposition he made last July
in civil lawsuit. Mellon described
himself as a factor" in the af-
fairs of the Aluminium Company
of America and revealed he had
taken a leading part in negotiating
a merger between this concern and
Canadian company. He then
told of owning Is per cent of the
stock of the 100000, 900 concern.
A Democratic-Insurgent coalition
in the committee has contended
this holding forces Mellon to be
interested or concerned in carry
ing on the business of trade and
commerce. They argued the
Secretary had to show some in
terest in the management of the
concern because OF his large in
'SSbhAChNs 4h he
admitted being consulted on dues-
tions of policy and they pointed
to this as indicating his interest
ir the business affairs of the com.
pany.
Seek Limited Inquiry
The Mellon group. however, has
fought to limit the committees In.
quiry to a mere decision on the
meaning OF the law. This faction
argued that the committee should
merely iuterpret the law for the
Senate and allow the Senate to
determine whether further steps
should be taken. To investigate the
legality OF Melons continuance in
office and the question whether he
has violated any law In the past,
this group contended. would lie with
the House Of Representatives. which
has tha anla nO~ar Of impsashmena. s.