Evening star., 1934-03-11

Mellon is one of the wealthiest men
in the country. His interests, CEN
tering in the Mellon National Bank
and Union Trust Co of Pittsburgh,
trace a course throughout the Nations
industrial structure.
The Aluminium Co. of America has
long been the target OF monopoly
charges in its field The Mellon in
terests also control Gulf Oil and have
huge holdings in the steel mills and
coal mines of Pennsylvania.
In May last year, Representative
McFadden, Republican, Pennsylvania,
in a statement placed in the Congress
sional Record. accused Mellon of IAN
apparent evasion" of personal income
taxes while Secretary of the Treasury
which McFadden said in a single in
stance involved more than 81 900 600.
The private finances of former
Mayor Walker Of New York were con-
Spicuous in the removal proceedings
against him in 1882 before Franklin
D. Roosevelt then Governor of New
York. Walker resigned at the height
of the inquiry which grew out of a
legislative investigation of the NUM-
cipal government of New York City,
directed by Samuel Seabury.
The crux of the financial tranSac-
tions was the dealings of Walker and
the mysterious Russell T. Sherwood.
who was missing at the time of the re-
moval proceedings. Sherwood dra-
matically reappeared in New Jersey in
1888 and was a witness before a Fed
eral grand jury in New York City.
Walker denied Sherwood was his busi-
ness agent and handled hundreds of
thousands of dollars for him as charged
by Seabury.
Sherwood's temperance prompted
grand jury questioning by George T.
Medalie, then United States attorney
in New York City. There were reports
that Walkers tax returns were scruti-
nized at that time
Walker has been living In Europe
for more than 18 months.
Lamont Morgan Member.
Thomas S. Lamont is a son of
Thomas w. Lamont, and, like his
father, is a member of the banking
firm Of j. P. Morgan & Co.
War on tax evaders officially was
declared December 80 when Attorney
General Cummings created the tax
division in order to combine more
effectively Federal agencies charged
with enforcing the law.
This step was believed to have
been taken in part as the result of
the acquittal of Charles E. Mitchell
former head Of the National City
Bank of New York, on charges of in
come tax evasion. That trial was
one of the first Of its kind to have
been held since enactment of the
income tax law.
The Mellon case arose when a suit
was brought against him in the Dis
trict Of Columbia, in which certain
charges were made against the for
mer Secretary. Later a resolution
was introduced in the Senate asking
the Department of Justice to mves-
tigate and other requests came from
the House As q result of this the
department undertook the investiga-
tion. Ordinarily the Department of
Justice has not conducted such inves-
legations, leaving them to the Treas
ury.
Under the present circumstances. as
regards the Mellon case, the Depart
ment Of Justice has moved with the
knowledge and approval Of the Treas
ury Department.
Amounts Kept Secret.
The Justice Department said the
Treasury had full information about
all four cases and was working in CO.
operation with the Department Of
Justice in getting material ready for
presentation to the grand juries.
Justice officials would not say how
much money was involved nor what