Evening star., 1933-05-18
M|TCHE[L1S DEALS
WITH WIFE SHOWN
Defense Produces Evidence
to Show Financial
Dealings.
BY the Associated Press.

BY the Associated Press.
NEW YORK, May l8-Defense coun-
Sci produced evidence today TO show
that financial dealings were common
over a period OF years between Charles
E. Mitchell former chairman Of the
National City Bank who is charged
with tax evasion. and his wife
Edward F. Barrett, who handled
Mrs. Mitchell's affairs for many years,
identified paper showing frequent in
stances of dealings between the
Mitchelis. which we're confirmed by ex-
change of letters.
Letters Written on Sale.
Such letters were written by Mitchell
and his wife to record sale of stock by
Mitchell to Mrs Mitchell in 1929. That
he had no net income for that year and
so had to pay no tax The Government
charges the sale was only pretense.
Max D. Steuer, chief counsel for
Mitchell. placed in evidence documentary
proof that many other deals were car
ried on between the Mtchells, recorded
by such letters, and that Mrs. Mitchell
profited by them 1t is the defense con-
tention that the 1929 stock sale was
genuine. that both Mitchell and his wife
expected her to profit by it. but that
when she didn't, Mitchell bought the
stock back.
The statement Of MiIchell's counsel
that the former head of the second
largest bank in the world is now worse
than broke" stood out above a tangled
tale of big money deals today.
Steuer declared the former interna-
tional banker still owes the House Of
Morgan S5,585 ,038 on loans which are
secured by collateral now worth ST.
100000 less than that amount.
Almost any other man except Nit
chell," Steuer shouted yesterday. would
file a petition in bankruptcy and clear
himself of that burden. Every scrap he
possesses is pledged against that loan
and he hasn't cent"
Federal Attorney George z. Medalie
introduced letters which Mitchell, for
mer head of the National City Bank,
exchanged to complete sale OF 18,300
shares of the banks stock in 1929. He
produced the letters to support his con-
tention that this sale to Mrs. Mitchell,
whereby Mitchell established loss Of
s2,SoOOOO and avoiding any 1929 in
come tax payment, was fraud.
Keyes Recalled to Stand.
Leonard A. Keyes. office manager for
j. P Morgan & Co., was recalled to
the stand when the trial OF Mitchell
was resumed.
Keyes, who testified yesterday as a
Government witness concerning loan
of nearly $4,000 900 the Morgans made
to Mitchell in 1929. was called for fur
ther cross-examination by the defense,
He brought with him list of securi-
ties now held by J. P. Morgan g. Co. as
collateral on more than S5,000,000 that
Mitchell still owes them. The list was
introduced in evidence, but not read to
the jury.
Testimony revealed that the Morgans
had advanced $3.50 and $3042 in
March. this year, to record three mort !
cages they hold as collateral on Mitch !
ellis loan. The mortgages were on
Mitchells homes in New York, Tuxedo. |
and Southampton, N. Y.
Check Copies Introduced.
Photostatic copies Of checks intro
duced in evidence while Keyes was on
the stand indicated that checks for the
loans Mitchell obtained from the Nor
gans in 1929, using his own stock as
collateral, actually were drawn to the
National City Co.
Barrett followed Keyes back to the !
stand. Barrett, who from 1918 to early
in 1880 handled Mrs. Mitchell's busi-
ness affairs, was on the stand most Of
yesterday afternoon. While he was
testtfying yesterday number Of letters |
Charles" and recording various business
transactions between Mitchell and his
wife, were placed in evidence and read
to the jury.
Continuing his testimony about the
business transactions of Mitchell, Bar
rett said it was not uncommon for Mrs.
Mitchell to borrow money from her hus-
band. In 1919, for instance, Barrett re-
called consulting ledger opened across
his knees. she borrowed from her hus-
band $23, 900.
During the period of IL years that he
handled Mrs Mitchell's affairs there
always accomplished by exchanges Of
letters between Mitchell and his wife,
he said.
Minor Dealings Outlined.
A number Of minor transactions were
outlined and the accompanying letters
read to the jury.
One entry in Barrett's ledger indi-
Gated that in 1922 Mrs. Mitchell par
ticipated in syndicate purchase of
Illinois Central Railroad stock, buying
1000 shares and receiving about $1,000
in profits.
In 1928. correspondence revealed, Mrs
Mitchell participated in a syndicate in
Westinghouse Electric stock, buying
100000 shares.
Barrett was on the stand under cross
examination by Steuer, but. except for
identifying documents, he had not said
word all morning