Evening star., 1933-06-14
BAKER IS ACCUSED
IN MITCHELL TRIAL
Prosecutor Charges Former
Bank President Altered
His Testimony.
BY the Associated Press.

BY the Associated PreSS.
NEW YORK, June 14.-United States
Attorney George T. Medalie today ac-
cused Hugh B. Baker, former president
make his testimony conform to that of
Charles E. Mitchell, on trial charged
with income tax evasion.
Cross-examining Baker, a defense
witness, Medalie asked him If it was not
true that Mitchell had outlined to him
in advance an action whereby the di-
rectors Of the company on December 80,
1929. passed q resolution stating that
| 81 ,860, 900 paid from q management
fund to II officers in July. that year.
was an advance to be paid back by
Baker said he could not remember
whether 1t was Mitchell who outlined
the plan to him.
Previous Testimony Cited.
Reading from a stenographic report
Of Bakers before-trial examination by
Thomas E. Dewey, assistant Federal at
torney, Medalie indicated that Baker,
in his reply at that time, had said
definitely that Mitchell outlined the
plan to him.
AS he continued to press Baker for a
more definite answer, Max D. Steuer,
defense attorney, objected.
THE Government contends" Meda lie
said, that this witness is trying as far
as he can to make his present testimony
conform with the long statements made
by the defendant when he was q wit
ness For this reason we are entitled
to show this witness, when examined
earlier, testified in an entirely different
way. both in form and in substance"
Apparently unrufaed, Baker insisted
that, although the transcript had
quoted him as replying yes when
lined the plan to him, he was not now
certain whether it was Mitchell or
some one else.
Called Mere Advances.
Mitchell received $500, ,66667 from the
management fund on July /, 1929, and
Baker 1920, 900. In December, that year,
both have testified, the directors, find
ing that the profits had been wiped
out as the market crashed, declared the
payments were only advances, to be
paid back out Of future fund earnings.
As result, none Of the officers re-
ported the payments in 1929 income
tax returns, and Mitchell's failure to
on which he Is now being tried.
neither the officers nor the directors
ever regarded these "overpayments" as
actual debts
isn't it q fact" Medalie asked,
that you and Mr. Mitchell never con-
suited about the possibility Of paying
back any Of the money you received
in the July management fund distri-
bution?"
well, not quite in that way" the
witness replied.
We'll isn't it fact" Medalie pur-
sued, that actual money payment by
you or him or any other of1cer was
never discussed"
$50 far as I can recollect, we never
did" said Baker.
Medalie asked Baker If Mitchell had
expressed anxiety about the price of
National City Bank stock the morning
of october 28, 1929.
HE said he hoped the price would
stay up" Baker said.
where did you get that word
'hope'?" Medalie demanded.
did you pick it up from Mr..
Mitchelrs testimony"
IT don't think So" the witness re-
piled.
Baker corroborated Mitchelrs testi-
mony that when, late In 1929, 10000
shares of National City Bank stock
were set aside for the employees at 5000
a share and 10000 shares for 1920
share for the junior offices. none Of the
officers or directors believed the stock
would 60 below 5000 a share except
perhaps for a brief dip"
The employees asked the right to buy
the stock, Baker said, and over sub
scribed their allotment Eventually
they were sold $4,000 shares and were
piyen four wears in which to nav for it.