The times-news. [volume] (Hendersonville, N.C.) 1927-current, 1933-05-16
PROBE MORGAN
TAX RETURNS
Justice Agents Still Busy
Investigating Income
Transactions
By THOMAS I. STOKES
United Press Staff Correspondent
Copyright 1888 by u. p.

by lElohHO -. d oNbo
United Press Staff Correspondent
Copyright 1888 by u. p.
WASHINGTON, May 16. (UP).
Income tax returns of J. p. Nor
gan and his partners in the big
New York banking firm are being
investigated in connection with
the pending senate inquiry into
operations of the international fl
nancial house, the United Press
learned last night.
A banking and currency COM
mittee expert has been porting
through records of the j. P. Nor
gan firm on file at the internal
revenue bureau here for several
days. The committees investiga-
ton Of the far-famed house of
Morgan covers the period from
1927.
Findings in the income tax
phase of the exhaustive prclimi-
nary inquiry probably will be in
troduced early in the committee
investigation which is scheduled
to begin May 90.
This investigation extends still
wider into the governments in
quiry into the income tax records
Of nationally and internationally
prominent figures. Only a few
days ago, Attorney General
Homer Cummings announced the
justice department was looking
into charges that former Secre-
tary of Treasury Andrew w. Mel
lon had evadcd income taxes in
1881.
1t was before the senate bank
ing and currency committee,
which is conducting the Morgan
investigation, that Charles f.
Mitchell, former chairman of the
National City bank, admitted in
come tax transactions for which
he now is being tried in New
York City.
The charges on which Mitchell
is being tried and those which
were made against Mellon by
Representative Louis T. Mead
den, Republican, Pennsylvania,
involved alleged sale of stock,
which was later bought back, as
a means of showing losses for
deduction from income taxes. The
government claims $85S,428 in
back taxes due from Mitchell.
One of the purposes of the
senate banking and currency COM
mittee inquiry is to determine the
various ways in which taxes may
be evaded, and to recommend
legislation to plug un the loop
holes. Previous inquiries by con-
gresSional committee have shown
numerous methods of tax evasion.
In a recent speech, Chairman
Peter Norbeck Of the senate bank
ing and currency committee said
that million dollars had been
recovered by the government as
a result of his committees in
quiry and that millions more
would be saved because of its
work.
Just what line of inquiry is be-
ing followed in the Morgan and
company case will be disclosed
later.
There is a possibility that the
committees inquiry into Morgan
and company, which reaches into
all the operations Of the interna-
tional banking house, may not
begin on May %. But the COM
mittee's counsel, Ferdinand Pc
cora, is making every effort to
gather all the data which the
senate has authorized and which
he now is seeking in New York
by careful examination of the
company's records.
The committee has received re-
ports that Investigators have en-
countered some delay in getting
just what they want, though on
the surface they are receiving CO.
operation. The senate passed
broad enabling resolution which
permits the committee to reach
into all the operations of the
giant banking firm after Morgan
and company, though John W.
Davis, its counsel, questioned the
authority of the committee to in
quire into certain matters with
out specific delegation of power
from the senate.