The Waterbury Democrat., 1933-03-22
Hoover Official
 Baked Arrest
(Continued from Page 1)

Evidence to support the govern- ments charge that Mitchell evaded q 657,152.40 tax due the United States on his 1929 income will be presented to the federal grand jury at once.
 As he moved against Mitchell. United States Attorney George z. Metallic announced that he had delayed taking action against an- other prominent banker, Joseph w. Hartman, on more serious charges for nearly three months upon t- ders from the Department of Jus tice in the Hoover administration.
 The delay was requested by the comptroller of currency to give time to reorganiZe the Hartman National Bank, it was explained. but the bank was not reorganized. It was not allowed to reopen after the national bank holiday, and Hartman, it's president, was ar rested, charged with financing bank stock purchases through false entries in customers accounts.
 The charge against Mitchell was based upon a stock transaction of a type admittedly not rare in 1929.
 Mitchell told freely of the trans action when he testified recently before the senate banking commit tee, and it was obvious that he had legal assurance in which he had confidence that there was nothing illegal involved. Many other fi- nanciers presumably had the same assurance, it was noted, and should the government win it's case against Mitchell, many millionaires and forpner million irnS may find fhen- selves in a quandary.
 Mitchell, according to his own testimony. sold 1S,000 shares of
 National City Bank stock to "a
 member of his family" late in 1923
 at $212 a share though the market price was down in the 40s by then. and wrote of a "loss" of $2.8O0, 900 l on the transaction. By this action he showed a net loss of $4S,000 for | the year and paid no income tax. ] He admitted that it was a sale of 1 convenience to reduce his income tax.
 l The charge filed against him yes- terday is based on the contention that the stock was sold to his wife
 that no money changed hands at
 any time in the transaction; that | the loss involved was not a legiti- mate loss on stock within the
 meaning of the income tax law: l and that actually Mitchell had a gross income of $3,0O6,7O5.76 in 1929, and should have paid a tax
 of $657,152.40.
 Mitchells 1929 income was made
 up, the government charged, of $1.206.195.02 salary; $140,105.47 interest on bank deposits and
 bonds: $1,33S.237.97 profits from sale of stocks and bonds: $262.- 874.4O dividends; $4.789.22 taxable interest on Liberty bonds, and $4,- 5O378 directors fees.
 Lawful deductions amounted to $183,299.91. according to govern ment statisticians.
 Mitchell resigned from the chair manship of the National City Bank and affiliates after revelation of the income tax maneuver and var ious bank operations In the Wasn- ington committee hearings. The New York county grand jury returned an indictment yester- day against Horace c. Sylvester, Jr vice president of the National City Company. one of the affiliates formerly headed by Mitchell charging third degree forgery in connection with $10.00O loan made to John E. Ramsey. general manager of the port of New York authority.
 The loan was made while Ma tional City Company was floating q bond issue for the port authority and the alleged ''forgery" came when Sylvester ordered the amount listed as incidental expense In the