Evening star. [volume] (Washington, D.C.) 1854-1972, 1932-01-15
Agent Tells House Probers
Secretary Controls No
Corporations.
Continued From First Page.)

poration, a company controlled by Mel
Ion interests.
Asked later If he meant Mellon was
never consulted about the Barco con-
cession, Gregg quickly answered:
II was careful not to say that, I
don't know. He never suggested that
the Gulf Oil Co. confer with repre-
sentatives fthe Colombia government
to arrange the concession.
The Gulf Oil Co. owns rs per cent
Of this concession, which was reinstated
last Spring by the Colombian Congress.
1t was a compromise settlement"
Mr.. Mellon does not own personally
any sea vessel" Gregg continued. He
is not personally interested in any i'm
ports. Some Of the corporations in
which he is stakeholder may be,
don't know"
Il have investigated every fact I pre-
sent and am prepared to prove every
statement Gregg continued
Sitting behind Gregg was a second
Mellon representative, D. D. Shepard of
Pittsburgh. At the same table Patman
also sat. listening intently.
Taking up the charge Mellon had
made large tax refunds to himself and
companies in which he is interested
Gregg drew on his own Government ex-
perience to outline in detail tax case
procedure
Refunds Must Be Approved.
He emphasized that the commissioner
of internal revenue is appointed by the
President with the approval Of the Sem
ate and lis not an employee of Mr.. Mel
Ion"
Gregg said a tax refund never IS
made until approved by the Joint Con-
greSsional Committee on Internal Rev.
enue Taxation and that never has
refund been made over the protests Of
this committee"
II was in the Treasury from 1921 TO
1927" he stated, land I never knew the
Secretary to consider a specifice refund
case"
Representative Tarver. Georgia, Dem
ocrat brought out that during the early
part of Melons term neither the joint
committee nor the Board of Tax Ap-
peals had been created.
THE Secretary of the Treasury has
never passed on refund since 1920"
Gregg replied
Mr.. Mellon told me he had never
heard of the Federal Architect
Gregg added.
Patman said Mellon, through this
publication, had increased the use Of
aluminium in public buildings.
Il know that of my own knowledge"
he said.
Tax Additions Cited
Gregg denied any knowledge on Mel
Ions part of the huge amortization re-
fund made several years ago to the
Aluminium Co of America, in which the
Secretary has an interest.
Since Mr.. Mellon has been Secre-
tary of the Treasury he has received
s91 900 in refunds and has been as
sessed 5000 900 in additional taxes, max
Ing net addition of S108,0 00," he said.
Gregg added the Joint Congressional
Committee had ruled the largest of the
Mellon refunds-s72, 900 in 1926
clearly allowable"
Mr.. Mellon personally owns no bank
stock" he said. He sold it all before
he took Office
Sold Stock Outright.
Il checked up to see if he sold it to
a corporation in which he is interested;
he did not.
Il checked up to see if there were any
strings on it; there we're not.
Mr. Mellon OWES about Is per cent
of the stock of the aluminium company.
That company owns 100 shares In the
Bank of East st. Louis. This Is Mr..
Melons only connection with any bank
stock"
Referring to the charge Mellon en-
gagged in the liquor business, Gregg said:
THE Overholt Co. went out Of busi-
ness three years before prohibition.
When Mr.. Mellon took office he created
an irrevocable trust with the trustee
having the sole power to dispose of the
liquor interest. 1t was liquidated in
1926"
Cites Former Secretaries.
Gregg named several of Melons pred
ecessors and said they had stock hold
ings Included were William G. Nc
Adoo and Senator Glass of Virginia,
Secretaries Of the Treasury during the
Wilson administration.
1T seems to me-" he said, that the
history and the uniform construction
has been that ownership of stock is
not in itself sufficient to disqualify q
man under the statute under consider
alton"
Gregg had not finished his statement
when the committee adjourned until
Monday. He intimated he would want
five minutes more and then Petman
will ask permission to reply.