The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-05-25
SWOPE TELLS
OF MITCHELL
PLEA FOR AID
Financier, on Trial for Tax
Evasion, Asked Bank to
Help Him on Stocks.
GIVEN ONLY SYMPATHY
Indicated Compensation
Due Him for Protecting
Institution.
BY SIDNEY b. WHIPPLE
United Press staff Correspondent

NEW YORK, May 25.--CharleS
E. Mitchell, indebted to J. P. Nor
gan for Sc, 200, 900, and watching his
$25, 900, 900 personal fortune crumble
beneath him, turned to his own
board Of directors Of the National
City bank for aid, it was revealed
in federal court today.
The directors gave him Sympa-
thetic attention and that was all.
Closing the first phase of the
governments cas- against the for
mel chief of the National City en-
terprises, accused of making fcti-
tious sales Of stock to establish a
technical market loss" and thus
escape income tax payments, George
z. Medalie, United States attorney,
brought to the stand Wednesday
Gerard Swope, president of the
General Electric company and a
director of the National City.
SwOpe Tells of Plea
SWope, one OF the nations lead
ing industriallst bankers, spoke
crisply and nervously, with a touch
Of brogue, as he replied to Medalie's
questions.
1t was n CT the high lights of
the trial, which has been under way
Tor ten days.
MitchelTs plea to his directors,
SWope said, made no specific sug-
gestion of what the bank should do
70 assist Mitchell in his miSfOrtunes.
Mitchell did point out, he said,
that he had incurred the Morgan
debt because he bought %, 300 shares
Of National City bank stock to boil
ster its price in the falling market
and thus protect" the bank.
1t was this stOck-part of which
he claims to have sold to Mrs. Mitch
ell in 1929 that was being held
by Morgan as security for the S.
900 900 loan.
Entitled to Help
The ebb tide of Mitchel'S for
tunes apparently occurred in 1892,
when Mitchell approached the
board-not all Of them, but just a
few of us, at a meeting in March,"
Swope Said-With his suggestion
that he was entitled to some COM
penSation for having incurred such
a loan for the sake of the institu-
ton.
The directors discussed the prob
lem. They considered taking Mitch
ellis stock off his handS-the stock
he had bought at 1857 a share and
sold to his wife at 1912 a share
land which then was selling for $40
a share). They considered taking
up a part or all of the Morgan
loan. But nothing was done.
The General Electric president,
obviously relieved at getting away
from the stand and back to bust
ness, seized his hat and strobe
rapidly from the courtroom at the
conclusion Of his brief testimony.
Didn't Tell Him of Sale
The governments contention, in
placing SWope on the stand, was
that he would offer additional proof
that Mitchell's sale of the 1880
shares Of National City bank stock
a not genuine. since he was of
fering' it to the directors as his own
stock.
In direct examination, further
more, Swope said, Mitchell didn't
tell him he had sold the stock"
But he didn't tell you he hadn't"
Max D. Steuer, Mitchell's counsel,
int~erjected. and Swope concurred.
This testimony in effect brought
to a close the governments case on
the first count against the eX-
banker, accusing him of making a
false sale to his wife.
Another Sale Sifted
The presentation of evidence con-
corning the second count, alleging
that Mitchell made a similar
sham" sale OF $500 shares of Ana
conda Copper company stock to w.
D. Thornton, President of the
Greene Cananea Copper corpora
ton, then began.
Daniel T. Bergin. Office manager
of the brokerage house of Horn
blower and Weeks, was the principal
witness Wednesday afternoon. He
identified records and eXplaiend de-
tails Of various transactions sur
rounding the alleged sale by Mitch
ell to Thornton.
30 0NIINTIEN 70 Nr-