Evening star., 1933-05-19
100000 ERROR
! IN MITCHELL DEAL
Mistake in Ledger of Trans.
actions Between Financier
! and Wife Revealed.
by the Associated Press.

8y the ASSOCltteo EIcSe.
NEW YORK, May ia $4,000, 900
error in the ledger recording business
transactions of Mrs. Charles E.
Mitchell in connection with stock
sale by which the Government contends
Mitchell sought to evade his income
tax was described in Federal Court to-
day.
Mitchell is on trial charged with
cheating the Government Of taxes on
an alleged 100000 income in 1929
and 1880 by fake sales Of securities,
the one In 1929 to his wife,.
Secretary Tells Of Accounts.
Edward Barrett, vice president OF the
National City Bank, which Mitchell for
meriy headed, continued his testimony
concerning his activities when he was
Mitchelrs secretary and handled all
MRS. Mftchell's- financial affairs. He
told of numerous instances in which
Mitchell participated in syndicates and
pools in his wife's behalf, all these
transactions being entered IN
ledger.
He said. under redirect examination
BY United States Attorney George T.
Medalie, that Mitchell's sale to his wife
of 1890 National City Bank shares,
the sale Of which the Government says
was a fake, also was entered in TINS
ledger. The purchase price, he said.
was entered IN the ledger as sS79 500,
although the price agreed on In letters
exchanged between Mitchell and his
wife was $3,000,00o more than that.
Declared Oversight.
sHow did the first figure Of the pur-
ase price happen to be omitted|
Medahe asked.
at was an oversight on the part OF
my secretary" Barrett replied.
"You mean your secretary made q
mistake and forgot to put it IMP"
Yes, sir"
Barrett also testified again. under |
Medalie's questioning. as to numerous
letters between the Mitchells regarding !,
financial activities entered into by |
Mitchell in his wife's behalf. Many of |
these letters. addressed to Dear Charles"
and Dear Elizabeth" have been entered |
as evidence.
Barrett said that although such let |
ters were always written to record these |
Mrs. Mitchell did not |
always write hers herself and some |
times for months at time did not |
know what Mitchell was doing for her. |
Answered Her Letters
"She had given me authority 10
answer for her" Barrett said.
Barrett said that when Mitchell In |
formed him he had sold Mrs. Mitchell |
securities for $3,s79 800, Mrs. Mitchell |
could not have taken the stock up.
IF the value Of the securities had
declined rs per cent could she have |
taken the lose?" Medalie asked.
mo, SIR" said Barrett.
The Government alleges that the sale |
was q fake In that Mrs. Mitchell paid /
nothing for the stock and didn't have |
the mopey to pay for 1t or to meet the |
los II the stock fell far in value. Nit
cheH used the sale to show that an ap-
parent net income had been turned into
q foes and therefore that he didn't have
DO pay any income tax.
Political Touch.
There's side issue to the main battle
against Mitchell going on beneath the
cupolas Of the old-fashioned Federal
relic Of the last century.
It's the struggle Of Medalie, Repub- |
iican United State attorney, to carry |
through to conviction the case against |
the banker which q Democratic admin |
istration in Washington put under way, |
against the opposition Of Max D. Steuer,
chief Of defense counsel.
Steuer himself Is q Democrat-mem- |
Der of Tammany Halls Law Committee |
but the Mitchell case hardly draws q |
political line Rather it's regarded by |
many as struggle of Medalie to vindi- |
cate himself with his Democratic SUI
periors.
Alike In Appearance.
Outwardly there is no sign Of this |
issue, for Medalie and Steuer are much |
alike in appearance. Steuer is older,
of course, gray and grizzled, while |
Medalie is ruddy-faced and bright-eyed. |
But they are of the same height and
the same build, their features are much |
alike. they both wear glasses. they both |
are bald, they recline in similar postures |
and they both speak slowly IN low |
voice.
In their background the difference is |
found, and their background is such |
that paradox is presented by Steuer's |
sitting on Mitchell's side of the oilcloth- |
covered counsel table while Medalle |
conducts the prosecution.