Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-05-04
MELLON UPHELD
BY SENATE GROUP
PROBING HOLDINGS
Judiciary Committee Votes
8 to 5 That Secretary Is
Not Disqualified.
NORRIS MOVE CHARGING
VIOLATION is DEFEATED
Borah and King Announce They
Will Submit Reports to
Upper House.
By the Associated Press.

BY the Associated Press.
The Senate judiciary committee
voted eight to five today to report to
the Senate that Secretary Mellon was
not disqualified to hold Office because
Of his stock holdings.
The committee by a similar vote re-
fused to call Mr.. Mellon for an open
investigation of his relation with the
companies in which he is a stock
holder.
The report of Chairman Norris de-
claring that Mr.. Mellon as stock
holder violated a statute forbidding the
Secretary of the Treasury to be inter-
ested in carrying on trade or commerce
was defeated by vote of 10 to 3.
Walsh and Blaine Favor Report.
Senators Blaine, Republican, of Wis
consin, Walsh, Democrat, of Montana
and Norris voted for the Norris report.
Senator Steiwer, Republican, of Ore
gon presented the eTeport which received
the committees approval.
Senators Borah, Republican, of Idaho
and King, Democrat, of Utah, however,
announced they would submit individ-
ual reports to the Senate.
Chairman Norris also will place his
report before the Senate.
The eight Senators who supported
the report of Senator Steiwer included
Burton. Ohio; Hastings, Delaware; !;
Waterman, Colorado; Deneen, Illinois;
Gillett, Massachusetts,, and Robinson,
indiana, Republicans, and Overman,
North Carolina, Democrat.
Senator Walsh put the motion to call
Mr.. Mellon for an investigation. He
Blaine and Borah, Republicans. and
King, Democrat.
Report Cites Intentions.
The report of Senator Steiwer de-
clared:
ut is clear to the signers of this re-
port that the statute condemns only an
interest or concern, direct or indirect,
in carrying on the business of trade
or commerce. With respect to cor
poation this means that the Secretary
of the Treasury shall not hold Office as
a director or as an officer and that he
shall not, by any means, either direct or
indirect, participate in any activity in
carrying on the business of a corpora
ton If the corporation is engaged in
trade or commerce.
'The Interpretation by the under
signed members Of the committee is
supported by the fact that numerous
Secretaries of the Treasury have owned
stock in corporations engaged in trade.
It is inconceivable that all these Sec
retaries wilfully violated the law. and
equally inconceivable that the Presi-
dents under whom they served would
have appointed men of known ineligi-
hility, or that the Senate would have
confirmed ineligible appointees. Obvi-
ously it has been thought in many ofh-
cial quarters that the section referred
to did not apply to mere ownership of
corporate stock.
Jurisdiction Is Questioned.
"Some of those signing the report
question the jurisdiction of the COM
mittee to proceed in this inquiry be-
yond an Interpretation of the statute in
question. on the ground thai it would
be a judicial inquiry and is not in aid
OF any legislative function OF the Sen
nate, and that there is no legislation
pending or proposed which would bring
the investigation within the lawful
power of the Senate or of the commit
tee on the judiciary. They believe that
1t is improper for the Senate to prose-
cute this investigation because by the
Constitution the initiative has been
vested in another body"
The report further suggested that If
there had been violation of the law
by Mr.. Mellon he might be reached by
indictment by grand jury or by
initiation of articles of impeachment
in the House.
Four absent Democratic members.
Ashurst, Arizona; Caraway, Arkansas;
Dill, Washington, and Stephens, Mis-
sissippi, are yet to be polled. While
their votes may be cast against the
SteiWer report. it is certain that their
support for the report of Chairman
Norris could not change the result.
Senators Borah and King concurred
in a third report declaring that while
Mr.. Mellon as a stockholder did not
violate the law, that any participation
directly or indirectly, in business by the
Secretary of the Treasury would con-
stitute violation Of the statute.
BOrah Explains Position.
Explaining his position later, Senator
Borah said: My view is that the owner
ship of stock does not of itself render
a person ineligible to this Office.
But while the ownership of stock
does not of itself render the person
ineligible, certain activity or concern In
carrying on the business in which he is
e stockholder would be violation o1
the law. The Secretary of the Treasury
under the statute is compelled to di-
vorce himself completely from advising
counseling or directing the business.
Il take the view also that the statute
ought 70 be amended and made more
tod tn dorr
business. The statute was adopted 14(
years ago and it is indefinite in tht