Evening star., 1935-02-22
EVIDENCE BUOYS
MELLON LAWYERS
U. S. Attorney, However, Is
Equally EIated at Tax
Case Trend.
ny the Associated Press.

&y the Associated Press.
PITTSBURGH, February 22.-Smil-
ing and debonair Frank ]. Hogan, ma
tionally known Washington attorney
and chief counsel for Andrew W.
Mellon, insisted today not lone CEN
tiliter" of pertinent evidence" has
been disclosed in the Governments
$3,o8S, 900 income-tax fraud case
against his client that he hadn't ad-
nitted to be true himself in his open
ing summation.
Equally elated at results of the first
weeks hearing before the Tax Appeals
Board is the Governments attorney
the athletic looking counsel from
jamestown. N. Y, Robert H. jackson
Hearings were recessed over Washing
tons birthday and the week end.
I'VE maintained this entire case was
one of political persecution, and we
showed that to be true by the deputy
internal commissioner of internal rev.
enue, Charles T. RUSSELL" asserted
Hogan.
Belittles Other Evidence.
Nearly all of this other evidence is
for publicity purposes and will be
shown to have no real bearing or
the case"
The attorney was referring to testi-
mony by Russell that although he had
directed the investigation into MELONS
1881 income tax return and had signed
the letter notifying the former three
time Treasury Secretary last March
sistant Attorney General had approved
and initiated the letter.
Russell admitted 1t was the first
time to his knowledge that the at
torney generals Office had taken a
hand in such a case, but insisted the
matter was referred to that depart
ment merely to let it know the bu-
reau was ready to start its suit.
Jackson Also Elated.
Attorney General Homer D. Cum
mings had publicly announced he
would seek a grand jury investiga-
ton and indictments against Mellon
several weeks before the notification
letter was sent and Hogan charged
in his summation that Cummings had
forced the revenue department to pro-
ceed unwillingly against the former
Republican Secretary.
I'VE have found more than we
thought there was to this case" as
serted Jackson. MELONS records and
the testimony of his confidential sec
retary, Howard M. Johnson, have
more than borne out our charges.
Mellon was not qualified to sit as
Secretary of the Treasury for II years
because he owned bank stock, even
though it was in his brothers name
We've shown clearly that his stock
sales to establish losses were shadow
sales. He didn't sell a share of his
stock to his dominated Union Trust
Co. in which he didn't take a loss.
Where he didn't have a loss we have
shown that he simply transferred the
stock direct to his own concern, the
Coalesced Co. 1t always bought from
Union Trust the other stocks"
johnson Carefully Grilled.
While his chief sits few feet away,
Witness johnson has undergone more
than two days of examination on the
witness stand, most of it slow but
methodical cross-qrestioning by Jack
son.
Over his all-aluminum desk in the
Mellon National Bank for more than 20
years has gone practically every
financial transaction of Mellon. AL
most as frail as we'll as retiring as
his employer, Johnson has shown a
remarkable memory for detail as he is
sent from ledger to journal to bank
books. He may remain on the stand
several days next week.
One headline disclosure Johnson was
forced to make was the fact that Mel
lon placed a book value of slightly
more than $97,000,o00 on his holdings
on December 81, 1881. The unbeliev-
ing cross-examiner demanded an item
iZed account Of all the assets and
liabilities of the financier. This was
furnished and Is being studied over the
week end for more questioning mate
rial.