Evening star., 1933-06-08
MITCHELL ADMITS
/ PAY WAS DOUBLED
Did Not Use Any of 5000, 600
to Pay Back "Advance," .
However, He Says.
By the Associated Press.

By the Associated Press
NEW YORK, June 8.-Charles E.
Mitchell testified at his income tax
evasion trial today that in 1881 Che
thought it was that year though he
seemed uncertain) he received a 100 per
cent salary increase-from 100000 to
100000.
And vet he used none of that extra
salary. he acknowledged under ques-
tioning by United States Attorney
George z. Medalie, to pay back any OF
a S666 666 81 payment he had received
from the National City Co. and which
he had not entered on his income tax
return, on the ground it was not IN
come but merely an advance 10 De
repaid.
He said the salary increase was from
$4,000 to SIS, 900 as chairman OF the
National City Co. and from $4,000 to
$125,000 as chairman of the National
City Bank.
Tells of $4,000 Fund.
Under further questioning. mitchell
told of another management fund split
up which brought him $50,000.
And you paid back no part of that
to reduce that $666,000 debt?" asked
Medalie.
mo, I paid back no part of it"
Mitchell replied.
Mitchell is charged with defrauding
the Government of more than $850,00O
in income taxes for 1929 and 1880 by
sham sales of stock to his wife and to
friend of friend, and by pretending
that the management fund payment
was an advance rather than gift.
Medalie started the session by asking:
Did the directors of the National
City Co. ever discuss collecting the ST.
100000 they had paid out to officers OF
the company from the management
fund in July, 1929, by any means other
than from future payments from the
fund.-"
Tells of Receiving Funds.
"No. sir" Mitchell replied.
Included In the Sl,860,000 was the
$666,666.67.
Did YOU" Medalie asked, receive
from the management fund in January,
1880, the sum of s380,00o?"
A I did.
O. Did you ever pay any part of it
back to the National City Co.?
A. I did not.
Medalie next turned to resolution
DY WHICH lIlG Isdt1Oldl oAbJ w. 49,
tors in 1881 split up among the officers
$4,000 still remaining in the manage
ment fund from the 1928 earnings.
did you prepare the resolution?"
Medalie asked.
"I don't remember. If did, 1t was
on advice of counsel"
@ Who first proposed that distribu-
ton? A. Mr.. Baker (Hugh B. Baker,
president of the company.
.. And you approved. A. Yes, sir.
@. You recall that on January 2,
1881, you received as your share $780,
900? A. do.
@ And YOU paid back to the COM
many no part of that to reduce that
S666 900 debt. A. No. I paid back no
part of it.
Questioned on Copper Deal
Medalie then questioned Mitchell
about his transaction in Anaconda
Copper stock with w. D. Thornton.
To record loss on his 1880 income
tax return, Mitchell in December. 1880.
sold to Thornton, friend and business
associate of the late John D. Ryan,
chairman of the Anaconda Copper Co.,
$500 shares of Anaconda stock at a
loss. he says, of more than S75o,000.
His testimony has been that Ryan,
desiring that the stock be not thrown
On the market, brought Thornton for
ward as a purchaser. Subsequently
Mitchell bought the stock back, anu
the Government contends the sale to
Thornton was not bona fide transac-
ton.
Mitchell said Ryan told him he
thought he ought to sell the stock to
Thornton at half point lower than
the market price at that time Oecem-
Der, 19301.
Mitchell repeated his previous testi-
mony that Ryan had never told him
that he had put up $500 shares OF
Anaconda stock at collateral toward the
1929, 600 loan from the j. P. Morgan
Company with which Thornton bought
the stock.
Did he never tell you at any timer"
Medalie asked.
"At no time" the witness replied.