Evening star., 1933-06-01
MITCHELL PROFITS
REVEALED At TRIAL
Minutes Show Banker Re-
ceived $666, ,666.66 in
1929 Division.
BY the Associated Press.

BY the Associated Press.
NEW YORK. June Prank j.
Mcguire, assistant secretary and assist
ant treasurer of the National City Co.
was called as a witness as the trial Of
Charles E. Mitchell, former chairman
Of the National City Bank, on charges
of having evaded payment of more than
$85o,oO0 in income taxes was resumed
in Federal Court today.
Mcguire who had testified earlier,
was recalled as a Government witness.
Prom a great pile of ledgers and records
he produced the minutes of meeting
OF the directors of the National City
Co. of January 25, 1927.
Resolution Read to Jury.
The minutes, he testified. contained
a resolution with reference to man.
agement fund That portion OF the
minutes was placed in evidence and
read to the jury.
The resolution set aside per cent
Of the net monthly earnings Of some
securities and 20 per cent of the net
monthly earnings of others to be placed
in the management fund, which at the
end of each year was to be divided
among operating and executive off,
GERS of presidential and vice presiden-
tial" ranks.
Minutes of a meeting Of the board on
June 8, 1929, were next placed in evil
denee. Mitchell in April, had been
elevated from the position of president
to its chairman, the witness said.
These minutes carried resolution
approving the 1927 resolution and di-
recting its continuation in 1929. The
president of the company was author
lied "to advise each officer privately OF
the percentage allotted to him"
Mitchell Got One Third.
A memorandum, dated January 9
1929, was read to the jury. 1t was
signed by Mitchell then president, and
was addressed to the treasurer. Mitchell's
own percentage was 331s. Hugh B
Baker, who In April succeeded Mitchell
as president, was allotted II per cent
The rest, III smaller amounts, was di-
vided among a dozen other officers.
George z. Medalie, Federal prosecu-
tor, next read to the jury memoran-
June 25, 1929. 1t carried the following
notation
Mr.. Maguire-Here is the resolution
I promised to write-C. E. M"
This resolution, which Mcguire noted
as passed, stated the accumulations Of
the management fund for the first six
months of 1929 had aggregated ap-
proximately 81 900 900 and directed that
$4,000 900 be divided among the eligi-
BILE officers on July /.
Another memorandum, of which
Mitchell was one of the signers, was
dated January 3, 1929. and directed the
treasurer to pay to the eligible officers
the amounts due them. Mitchells
share, the memorandum stated. was
s483, 1888.
A check was placed in evidence in
dicating payment of that sum by the
National City Co. to Mitchell. The
amount divided at that time, according
to a check placed in evidence, was
81 ,45C 900.
Another memorandum dated June
q, 1929, and signed by Mitchell and
H. j. Mayer, vice president, directed
distribution among IL officers of 81 $780,
900 from the accumulated earnings of
the management fund.
The memorandum stated Mitchell's
share was to be 1886, ,666.66, the amount
which he is charged with having failed
to report in making his 1929 income
! tax return.
Mitchell had never denied receiving
the money, but contends it was only
an advance, to be paid back later.
Receipt Introduced.
Medalie introduced an undated re-
ceipt signed by Mitchell
Received July /, 1929. from the
National City Co. $666,666.66. which
represented an overpayment to me oi
my share In the 1929 management fund
| to be repaid by me out of future dis
tribution from the management func
before 1 bscome entitled to any further
| paymenLs therefrom"