Evening star., 1933-06-06
MITCHELL DENIES
CHANGING RETURN
Says He Did Not Change Fill
ing Office When U. S.
Agent Was Moved.
Continued From First Page.)

|
vised him regarding the sale Of $500
shares of National City Bank stock to
Mrs. Mitchell in 1929 for tax purposes
had told him the sale Of copper stock
| to Thornton would be a legal way OF
recording losses on his tax return for
| 1890.
Ryan. Mitchell said. anxious to keep
| the copper stock from being thrown
| on the market, volunteered to find q
| private buyer.
Mitchell told of calling the j. p.
| Morgan Co., at Ryan's suggestion. and
asking the Morgans to lend 1929 900 to
| Thornton for the purchase of the stock.
Mr.. Ryan was in my Office sitting
at my desk, when I called George Whit
ney and asked about the loan," Mitchell
seid
"Mr Whitney called me back, after
looking Mr.. Thornton up, and said the
Morgans would be glad to lend me the
money. At Mr.. Ryan's suggestion !
drafted a letter for Mr. Thornton to
sign, making formal application for the
loan"
Mitchell said Ryan first suggested
Thornton borrow from the National City
Bank the money to buy the stock.
To this proposal, Mitchell said, he re-
piled:
NO. John: can't do that. I've made
1t practice never to allow the bank to
make loan on any transaction in
which I am even remotely interested y
"Mr. Mitchell, in all this transaction, y
Steuer asked, did you ever in any way
obligate yourself to repurchase that
stock?"
Absolutely not" Mitchell replied.
"It never entered my mind
Q. Did you know Mr.. Ryan had
loaned Mr.. Thornton the $500 shares of
Anaconda as part of his collateral?
A. Absolutely not. I thought it was
Mr. Thornton's stock.
@. During the transaction. did you
have any conversation with Mr.. Thorn
ton?
A. No, sir.
In May, 1881, Mitchell said, Ryan
urged him to buy back his Anaconda
stock.
He said" Mitchell testified, "'Char-
lie, I'd like to loan you some stock to
use as collateral I said, John, don t
like to do that-I've never borrowed
that way in my nfe.'
Agreed to Purchase.
"He kept urging 1t on me, however,
and finally I agreed to purchase the
stock through Hornblower & Weeks.
II thereupOn arranged with the
Guaranty Trust Co. to borrow 5000 900,
putting up the $500 shares and the
$500 shares Mr.. Ryan was lending me
as collateral"
did you know" Steuer asked, "that
the $500 shares Mr.. Ryan loaned to
you had been previously loaned to Mr..
Thornton?"
A. Certainly not
@. Did you ever In any conversation
with Mr.. Ryan or any one else promise
to make good any Of Mr.. Thornton's
losses?
A. I certainly did not.
Steuer showed Mitchell q memoran-
dunn indicating Thornton had lost $212
on the transaction.
@. (By Steuer)-Did Mr.. Ryan ever
suggest that you were obligated to make
good Mr.. Thornton's losses?
A. No, sir.
Asked about the large gifts he had
, made to Mrs. Mitchell in 1880, Nit
chell said:
Il was greatly distressed over the
large amounts she was putting out In
insurance on my life and in interest
payments to me. Frankly, asked my
| just where Mrs. Mitchell stood on the
| transactions"
@. (By Steuer)-Was there actually
any money due Mrs. Mitchell from you
A. No, Of course-but that didn't
mean anything to me-
@. Did you execute mortgages on your
real estate in favor of J. P. Morgan g.
Co?
A. Yes, in March, 1891.
\ @. So, by March, 1881, you had de-
posted behind that loan practically
everything you had?
A. Yes, sir.
Q. Did you ever get anything back
on any Of that stock?
A. No, sir
Mitchell said the Morgan loan was
under -collateralized" by the Autumn
of 1881.