Evening star., 1934-02-04
OUTCOME SECRET
|NME[L0NPR
Justice Department Finishes
Inquiry Into Former Sec
retary's Taxes.

It's special investigation Of Andrew
Melons income taxes completed, the
Department Of Justice yesterday threw
cloak of secrecy about definite
course Of action decided upon by
Attorney General Cummings
OF possible significance. however.
was the disclosure that Horatio S
Dunbauld. United States attorney at
Pittsburgh-home of the Mellon family
had been in conference here this
week with Frank J. Wideman. Assist
ant Attorney General. in charge Of
the department tax division.
The visit of Dunbauld conceded
with the conclusion of the depart
ment's much-discussed independent
inquiry into the personal financial
affairs of the former Secretary of the
Treasury.
Morgenthau Notified.
A report of the findings of Justice
investigators was before Cumming
yesterday. 1t was understood he had
reached a definite decision as to
whether or not there is a basis for
legal proceedings against Mellon. and
that he has sent Treasury Secretary
Morgenthau notification Of that de-
ciSion.
Justice officials refused to divulge the
nature Of the findings and Treasury
authorities. in the absence of Morgen-
thau and Internal Revenue Commis-
sioner Helvering yesterday afternoon.
professed ignorance of the status OF
the case.
Original decision of the Depart
ment of Justice to launch its own
investigation of Melons income re-
turns is said to have caused sur
prise at the Internal Revenue Bureau.
where such inquiries usually are car
ried on by Elmer L. Irey's special in
telligence unit.
Congress Asked Probe.
Attorney General Cummings re-
Gently issued formal statement TO
explain the reason for the extraor-
binary procedure adopted in this case
Although income tax Investigations
customarily originate in the Internal
Revenue Bureau, he said. the Mellon
case came directly to the attention
of the Department of Justice as an
outgrowth of an inquiry requested by
members of Congress into certain TAX
suits against Mellon filed by tax
payer. This litigation alleged lrreg-.
ularity in the handling by Mellon ana
other former Treasury officials OF
large tax case While the suit IN
ouiry was under way, Cummings
pointed out. the other requests from
members of Congress were received
for extension of the investigation to
cover Melons personal income taxes
and these requests also we're COM
piled with.
II has been reported in Treasury
circles that in turning over its Mellon
income tax files to the Department OF
Justice some months ago, Treasury
offlcials were under the impression
the files we're wanted by the Depart
ment of Justice in connection with
the original inquiry into charges con-
tanned in the taxpayers petition. IL
was not until later that the treasury
learned the Justice Department had
broadened its investigation to cover
MELONS personal finances. it has been
indicated at the Treasury.
Working in Harmony.
It was to meet reports of this ma
ture that Cummings, at recent press
conference, emphasized that the De-
partment of Justice and Treasury were
working "in perfect harmony" on in
come tax cases. -,
Ordinarily, the Mellon case would
never have reached the Department
of Justice unless the Internal Revenue
Bureau had first made an investlga-
ton and found probable cause for
prosecutive action by Justice authorl-
ties
Cummings said the Justice inquiry
extended back over a period of years.
Some Of the years covered are under
stood to be beyond the statute OF
limitations in so far as any possible
prosecution for those years is con-
cerned, but not too far back for action
to recover taxes that might be found
to be due from a taxpayer.