Evening star., 1934-05-03
WIFE IS WITNESS
IN MITCHELL CASE
Testifies of Stock Deal With
Banker Husband at
Tax Hearing.

Mrs. Elizabeth Mitchell testified fol-
the first time today on penalf of her
financier husband Charles E. Mitchell
now appealing to the United States
Board of Tax Appeals to avoid pay
ment of income tax deficiencies and
penalties totaling 81 1275, ,64452
Although directly involved in the
largest of the transactions by which
the former head of the National City
Bank sought to reduce his taxes, Mrs
Mitchell was not a witness either
at the Senate Banking Committee S
stock exchange investigation or her
husbands New York State trial on a
criminal tax evasion charge.
Her story backed up substantially
the contention by Mitchell that his
sale to her in December 1929, OF
1890 shares of the stock of the
National City Bank was bona fide
j and a proper way of indicating a
paper loss for the purpose of his in
come tax returns.
Court Ruling Reversed.
Mrs. Mitchells testimony was Of
fered during her husbands trial in
New York, but the court ruled 1t in
admissible. This position subse-
ouently has been reversed by the
United States Supreme Court. Mitch
ell was acquitted OF the criminal tax
evasion charge.
Mrs. Mitchell presented to the tax
appeal board this morning a picture
of her Wifely solicitude and conSldera-
ton for Mitchell. harried by the
crashing stock market of 1929 and
1880.
Although interest charges on the
loan from j. P Morgan & Co., which
made her purchase from him OF the
of the large block of stock possible,
we're eating away her personal for
tune of about s1,000,000, she never
mentioned it to her husband for a
year and half, she said.
Sacrifice Apparent.
Mitchell previously had testified
that, approaching his wife's consider
alton, he had felt keenly the drain
on her resources resulting from the
purchase OF his stock, recommended
by him.
During that market crash many
men were carrying as great burden
of worry as they could bear" said Mrs.
Mitchell. Mr.. Mitchell was one Of
them. l could not go to him and add
my worries to his own"
Mitchell had explained it was this
situation which caused him to buy
back from Mrs. Mitchell the 1890
shares OF National City Bank stock
at the same price for which he sold it,
The Government contends this re-
purchase, made at a time when its
what he paid Mrs. Mitchell for it,
indicated the original sale to her was
not bona fide transaction.
Shown Consideration.
In poor health, Mrs Mitchell was
given unusual consideration by Ed
ward S. Greenbaum, Government at
torney. who cross-examined her. At
the end of the session. Mitchell
thanked Greenbaum warmly.
Mrs. Mitchell said she thought the
stock a good investment when she
purchased it, and was confident she
COuIO QlSpoSe Ol II al any tlIle III Ille
eventuality of q stock market drop.
Mitchell also considered it a good in
vestment, she said, and she felt that
he was "a very skilled investment spe-
cialist"
Before he came to her, however,
with the proposition. Mrs. Mitchell
stated her brother. Joseph P. Rend, of
Chicago. had urged her to buy Ma
tional City Bank stock as an invest
ment.
Presentation of Mitchell's case is
expected to be completed by the end
of this afternoons session, and the
first of the Governments witnesses
probably will take the stand tomorrow
morning.