Evening star., 1933-03-24
MITCHELL INDICTED
ON j. S. TAX CHARGE
Former National City Chair.
man Accused of Evading
$573,312 Payment.
BY the Associated Press.

BY the Associated Press.
NEW YORK, March 24.-Charles E.
Mitchell, former chairman of the board
Of the National City Bank, was indicted
by Federal grand jury today on a
charge of willful evasion of his income
tax for 1929.
The indictment charges that in 1929
Mitchen's net income was $685.
405:95. whereas he reported net loss
OF sac, 900 and paid no tax
He was charged in the indictment
with evad1ng payment Of a tax Of
$573,31281.
Mitchell resigned the Craftsmanship
OF the board of the National City Bank
and also OF the National City Co. and
other af6liates Of the bank during the
period in which he was a witness be-
fore the Senate Banking Committee
in its investigation Of the Stock Ex-
change.
The indictment charged his income
tax for 1929 was erroneous in that he
reported loss from sale of stocks of
$1,484, ,067 SO, instead Of profit Df ST.
388, 8,237.97.
Bona Eide Sale Denied.
The difference is represented by a
loss set up by Mitchell from the sale
of 18,300 shares of stock of the Ma
tional City Bank. The Government
contends this was not bona fide sale
This was the stock which Mitchell
testified before the Banking Commit
tee he had repurchased from tuS wife
at S212 a share, the price at which he
said he sold it to Mrs. mitchell, al
though the stock at the time e.6 he re-
purchased it-March "a, 1932-WaS
IT,, .eIIino IN the omen market at $40
share.
For the past three days United states
Attorney George z. MedaIe and two as
sistants have been presenting evidence
to the Federal grand jury, which re-
suited In the indictment handed up TO-
Medalie began his investigation the
day after Mitchell testified before the
Senate Banking Committee concerning
the sale of the stock to "a member OF
his family for the purpose OF taking an
income tax loss on his 1929 return.
During the investigation Medale's as.
sistants examined a large number OF
bank accounts and made an exhaustive
study of the history of the securities
transactions of both Mitchell and his
wife for a number Of years back.
MANY Witnesses Examined.
Witnesses from various banks, attor-
neys and certain other witnesses VINO
were brought from Chicago and Florida
and whose names were not disclosed,
were examined in the course OF the
investigation. Medalie, 1t was said at
the Federal Building, also investigated
the question of how the income tax re-
turn was passed at the time it was ex-
amined
During the investigation Mitchell sub
mitted to two examinations and was
examined for almost an entire day,
having voluntarily offered to submit to
an examination.
The indictment contains one count,
as there is only one act of evasion
charged. The maximum penalty pro-
vided for conviction in such a case Is
a term Of imprisonment for five years
and fine Of $4,000, although either
imprisonment or fine in any term or
amount under the maximum may be
imposed at the discretion of the court.
The amount of taxes which the Gov
ernment charged should have been paid
Is about $4,000 less than that given
in complaint of Assistant United
States Attorney Thomas E. Dewey. A
warrant based ON the complaint was
issued early in the week and Mitchell
was arrested. He was released in
$40 900 bail for a hearing before COM
missioner March 29.
Mitchell was not in the Federal build
ing when the indictment was received
by Federal Judge Goddard, nor was his
attorney, Max D. Steuer Mcdalie said
the case would be moved for an early
trial.