Evening star., 1934-05-08
MELLON CLEARED
BY.GRAND JURORS
BraWny LaborerS and White
Collar Men Refuse TO
Indict Banker.
Continued From First Page. }

have been exonerated by a Jury Of nv
fellow-citizens. The fact the grand
jury reached a sound conclusion, not
WithStanding the unusual methods
pursued il: my case, is proof of the
good sense and fairness OF the Ameri-
can people"
In statement last Friday, Mellon
SAID he really had 'overpaid" rather
than underpaid, and that he would
seek refund.
He charged his affairs we're being
"railroaded" to the grand jury in an
attempt to discredit former admins
trations in which he participated
Mellon claimed the grand Jury pro-
ceedings were irregular and that he
was given no hearing by the Treasury
before the charges were made public.
H. S. Dumbauld of UniontoWn,
United States district attorney, pre-
sented the case to the jurors.
In his statement last week. Mellon
said he was in the dark" about The
charges. and Attorney General Cum
mings replied "he knows perfectly well
the basis upon which the Treasury
Department made the additional as
sessment."
Cummings also announced an in
quiry into the Mellon n-controlled
Aluminium Co of America. The com
pany, long a target Of monopoly
charges, was described by CUMMINGS
as "a 100 per cent monopoly in TIE
producing field
Mellon interests control the Gulf
Oil Co and have huge holdings in the
steel and coal industry.
For years an outstanding Hgure in
business and finance. Mellon was ap-
pointed Secretary Of the Treasury in
1921 by President Harding. He held
the post through the Coolidge admin
istration and part of the Hoover ad-
ministration. He was the only Treas
ury Secretary ever to serve under
three Presidents. President Hoover
appointed him as Ambassador TO Lon
don and he held that post until the
end Of the Hoover term.
Tax Returns Compared.
The Government charged Mellon
derived a gross income OF $9,2I2,-
9052l in 1881 with allowable reduc-
tions of s1445,731 48, making the net
income s7767,173.73. On this sum
the Government claimed d tax of
S1363 70363 was due.
The bill which the grand jury
turned down. said the banker filed
an income tax showing a gross in
come Of $6,758,707l2. net income of
5297456 on which a tax OF $647,-
559.36 was due.
The table the Government submit
ted as MELONS 1881 income follows:
Salaries, wages, commissions. etc,
United States Government, SIS 900 90.
Interest on bank deposits. notes.
corporation bonds. etc Except inter-
est on taX-free covenant bonGs), ST.
187,85493
Interest on tax-free covenant
bonds upon which a tax was paid at
source, s72,6Ol.5S.
'Rents and royalties Qoss), sl3s,-
421.o2.
*Loss from sale of real estate,
stocks, bonds, etc, S497. .702 26
Taxable interest on Liberty bonds,
etc. s1,96563
Dividends on stock of domestic
corporations. S6.102 ,497.05
Other income: Refunds. 50 226 40:
foreign interest, s57,I842l; improve
ment leases, 1.766 90.
Total, S6,8l3,973.42
Capital net gain on sale of assets
held more than two years, $685.
931.79.
Gross income. S92I2.905
The complaint set forth the banker
was entitled TO deductions totaling
Sl,445,73l48. listed as.
Interest paid. S672 ,432 So.
Taxes paid. S99,45332.
Contributions, S579,97829.
Other deductions authorized by
law. S93 3867.29
The return the Government claimed
Mellon filed listed: Salaries, wages,
commissions, etc, United States Gov
ernment, $4,000.
Interest on bank deposits. notes,
corporation bonds. etc. Except in
terest on tax-free covenant bonds),
S1,l87, ,85493.
AAAbNANOb OAA NONNlldIlI
upon which tax was paid at source,
S72, COL SO.
Rents and royalties Qoss), $780,
42l.O2.
Loss from sale of real estate,
stocks. bonds, etc, $552,968.56.
Taxable interest ON Liberty bonds,
etc. S1,965 SO.
Dividends on stock of domestic
corporations. S6,l02 ,497.05.
Other income: Refunds, S2,226 40.
Foreign interest. S57,184.21.
Improvement leases. Sl1, 1855 60
Gross income exclusive of capital
net loss claimed as aforesaid), So
.7O7.12
The deductions totaled s1,2o5 ,832.-
Sc as follows:
Interest paid, 672,43250.
Taxes paid. S99.45332.
Contributions. S34o o7e 81
Other deductions authorized by
law. S9386729.
+These figures were not included in
the total taxable income