Evening star., 1933-05-11
TRIAL OF MITCHELL
IN TAX CASE BEGUN
Former National City Bank
Head Is Accused of $685..
429 Evasi0ns.
BY the Associated Press.

BY the Associated Press.
NEW YORK, May 11.-Charles Z.
Mitchell. for years one of the giants
Of Wall Street, went on trial today
charged with juggling tax figures to
make q net income in 1929 and 1880
Of more than 100000 look like q
net loss.
The Government asserts that in those
two years Mitchell former head of the
National City Bank and its afIiliates,
should have paid income taxes of $685.
42968 He paid none at all. net losses
being shown through sale of securities
at price far below what he had paid
for them.
Charges Sales Spurious.
The Government charges that these
sales were spurious. were made solely
to show loss which did not really
exist. and with the understanding that
he would buy the stocks back after
income taxes had been evaded.
Selection Of the jury began in mid
morning with Mitchell. gray-haired and
stocky., watching intently from the
counsel tables as one talesman after
another was rejected.
After Federal Judge Henry w. God
dard ascended the bench, start Of the
Mitchell trial was delayed by the call
ing OF the calendar. Pending compile
ton Of this routine Mitchell and Max
d. Steuer. his counsel. left the court
room and went to another part OF the
building
After q score of nondescript prs-
oners were led to the bar to plead to
liquor. narcotics and other charges,
Judge Goddard announced an adjourn
ment until 10 O'Clock. Eastern standard
time. and the court room was cleared
OF spectators. A panel of 80 talismen
was ready from which to select the
Mitchell jury.
The Mitchell case was called at 1905.
Prosecutor Wife Remains.
Among the few spectators permitted
to remain when the court room was
cleared was Mrs. George z. Medalie.
Wue OF the United States attorney who
Is prosecuting the case.
Mitchell entered the room wearing 4
black suit and carrying a black top
coat and gray felt hat He seated HIM
self at the counsel table and began
Whispering to members of the defense
legal staff
In accordance with Federal court
procedure, II members of the Jury
panel we're called to the box and to
seats inside the counsel rail and were
sworn in to be questioned as to their
availability by attorneys for the Gov
ernment and the defense.
Steuer and Medalie drew chairs I'D in
front of the jury box and seated them
selves. Steuer began talking to the
No. juror, tall, gray-haired man.
Their conversation was carried on al
most in whispers. 1t was impossible to
hear them even at the counsel table,
and Mitchell leaned forward, appar-
emily catching a word only now and
then.
No juror. Frederick C. Bingham,
was excused by consent Of counsel for
both sides.
The second juror questioned. John J.
Fish, was excused for cause by the court
after he had said he had formed An
opinion from reading about the case.
Third Talesman Accepted,
The third talesman examined. Isadore
Amster. q draughtsman. was tentatively
accepted. He said his only experience
with banks was when he was caught
in the Bank of the United States crash"
Would that prejudice you in this
caSe?' Steuer asked.
mo, don't think So" Amster replied
After brief questioning. Steuer in five
minutes tentatively passed two more
prospects and came to John Barry. who
said he worked for a stock broker in
Wan Street and that he had discussed
the Mitchell case occasionally"
Judge Goddard had asked Steuer. 1t
developed. to question all II Of the men
in the box and then 60 back later to
those he wished to challenge.
John Barry who had occupied seat
number in the jury box, was excused
after telling Steuer he thought Steuer's
presence in the case indicated there
was something particularly difhcult
about the case"
Medalie, addressing the men tenta-
lively in the box, asked them II they
could try the case without being swayed
by feelings they might have toward the
National City Bank, the National City
Co.. Charles E. Mitchell, or banks and
bankers in general. No one replied.
Does any Of you entertain hostility
toward our income tax law?" Medalie
asked There was no reply.
At 1903 pm. court adjourned for
lunch until lis pm.