Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1929-01-04
Charges Mellon With Deliberately
Misleading The President And
Congress.

Charges that he has deliberately misled
the President and Congress in order to &C.
complish his own particular purposes were
made against Secretary of the Treasury
Andrew ". Mellon. by Representative Jno.
N. Garner, of Texas, ranking Democratic
Member Of the House Ways and Means
Committee, in a recent speech before the
House. At the same time. Mr.. Garner shed
additional light on the manner in which
the Treasury Department. as administered
by Secretary Mellon. has been making huge
tax refunds to large corporations. giving
rise to grave suspicion of favoritism.
Mr.. Garner told the House and the coun-
try that Mr.. Melons practices amounted
to fraud practiced on the President and
Congress to advance legislation he was
anxious to have Congress enact.
Calling the attention of the House to the
fact that on the opening day Of the pres
ent session Of Congress. on December a.
the President sent message to Congress
10 which he estimated the Treasury would
show a surplus Of $37.000.000 for this
year, Mr.. Garner said that on that same
day Secretary Mellon sent to Congress an
estimate for an additional appropriation
Of $75,000,000 which he wanted with
which to make tax refunds awarded by the
Treasury Department On information OBJ
tanned from his Secretary Of the Treasury.
the President told Congress and the coun-
try on December there would be a sur
plus Of $37 100000. On the same day
his Secretary Of the Treasury was asking
funds which would convert this $37 .000.-
600 surplus into deficit Of SIS. 000. 900.
and in so doing Mr.. Garner said. Mr.. Mel
Ion had deceived the President. for which
he ought to be asked to resign.
Mr. Garner charged that Mr.. Mellon
purpose in permitting the President to tell
Congress there would be surplus when
he. Mr.. Mellon. knew there could not be IL
the tax refunds were made. was to get
Congress to approve the settlement Of the
Greek debt. This settlem mt. which the
Treasury Department was so eager to get
Congress to approve and which 1t did ap-
prove by an almost straight party vote
permits Greece to settle her debt with the
United States on the basis Of about thirty
four cents on the dollar and also author
ICES an additional loan Of $l2. 000,0 900 out
Of the United States Treasury to the gov
eminent Of Greece. Mr.. Garner declared
that II Congress had known the true state
OF the Treasury. as it would have known
had Mr.. Mellon dealt honestly with the
President and Congress. the administration
would never have been able to induce
Congress to vote approval Of the Greek
debt settlement together with the addi'
tional loan.
Mr.. Garner also gave the House and the
country Information about who Is getting
these huge tax refunds being paid out Of
the Federal Treasury. Most Of the money
Is going back to large corporations. For
example, Mr.. Garner showed, the United
States Steel Corporation has already beer
paid back $3l.000,O0O in tax refunds. and
now Melons Department has awarded II
an additional refund of $5.000,000. a
part Of the SIS. 100000 he is now asking
Congress to vote. Furthermore. Mr.. Garner
showed. il other claims OF the Steel Cor
poration, still pending, are settled on the
same basis as those which have been al.
lowed. that corporation will receive a third
refund of from $28. 100000 to $50. OOO..
900 this fiscal year. This would make
the total refunds to the Steel Corporation
approximately $75.OOO.O00.
That there is something suspicious about
the character Of these huge refunds is in.
Dictated by the fact that Immediately afteI
the 1924 election. the largest sums eveI
returned to these heavy taxpayers wert
paid back by the Treasury and now. RICH
after the 1928 Presidential election. SINH
lar huge claims are being paid. Futhor
more. these claims have been pending 70
eleven years. yet now. with very erea
haste and despite the fact that their pay
ment would create Treasury deficit, which
the President has been so anxious to avoid
Mr.. Mellon is in great haste to get tn,
money from Congress SO he can pay thes,
huge refunds. creating the suspicion tina
he fears that possibly after March 4, wheI
there will be change of administration. h
may not be in position Of authority t,
allow such claims.
1t 10 fact shown by the record tina
throughout Mr.. Melons administration o
the Treasury Department. Treasury est
mates have been so thoroughly unreliabl
that Congress has ceased to pay any at
tention to them. but not before has Their
been situation SO serious as to bring
charge Of manipulation and misrepresen
tation In order to deceive the President a
well as Congress.