Evening star., 1935-08-08
MITCHELL LOSES
INCOME TAX FIGHT
Former National City Bank
Head May Appeal ST.
200, 600 Decision.
BY the Associated Press.

ny bAiO HooONiapCN iOoo'
The next move in the Charles E
Mitchell income tax fight, In which
the former chairman of the National
City Bank of New York suffered q
81 200 900 defeat yesterday, depends
on whether he decides TO appeal.
The Board of Tax Appeals. In q
decision which labeled part Of Mitch
ellis income tax returns as "fraudu-
lent" ruled that he owes the Govern
ment the greater part OF 81 .275. .644
tax claim preferred against him.
Mitchell has the right to appeal
to the Circuit Court Of Appeals and
thence to the Supreme Court. If he
does not, the Government presumably
will put its collection machinery into
motion.
The decision yesterday noted thai
Mitchell's fortunes declined from q
met worth" of about 10000, 900 or
December 20, 1879, to insolvency "by
an amount In excess Of $3.000,000" on
March 70, 1882. It did not say any
thing about his present financial
status.
S1,2ee. .ees Of Claims Upheld.
According to estimates Of Treasury
officials, the board decision upheld
about 81 200, 900 of the original ST.
275.644 claim. It held that a New
York jurys action In acquitting Mitch
ell OF criminal charges of tax evasion
does mot bar the imposttion of the
penalty Of so per cent Of the def
ciency."
The original assessment included
tax deficiency claims Of $3.50. .429. plus
so per cent penalties OF $425,2l5.
The board ruled against the New
York financier on two OF the three
major issues presented.
His claim of a deduction from tax
able income of $2,s72, sos aIlegedly
lost in 1929 on the sale OF National
City Bank stock to his wife was dis
allowed and the transaction held
fraudulent. Fraud was also charged
| in his failure to report for taxa
ton the receipt OF s666.666 received
as a distribution from the manage
ment fund of the National City Co.
On the other hand, the board ruled
in his favor in holding deductible his
claim of q loss of $7S8,slS in 1896
on the sale Of $500 shares Of Ana
conda Copper Co. stock.
Action Held Fraudulent.
Ruling against him on lesser issue
| the board found his failure to report
| in his income tax return for 1880 the
dividends paid on the stock he said hi
sold his wife rendered his return fol
that year fraudulent.
The Treasury had claimed tax de-
fciences Of $72S, TOO for 1879 and
| $l2l,71s for 1880. The respective Sc
per cent penalties brought the tota
assessment to $l,275.644.
Mitchell resigned as head Of tht
National City Bank early in 1888
His stock transactions had beer
brought out previously in the Senate
Banking Committees stock market in
vestigation.
In neither of the two years covered
in the boards ruling did Mitchell pay
any Federal income tax. The boarc
said that for 1929, after the deduc.
ton on the sale of bank stock to hi,
wife and the failure to include th'
1855 ,e66 from the management fund
Mitchell reported a net loss of $4S.Sss
For 1880, the board said, the bank
er's return showed a net income o.
ss,552 and he paid no income tai
for that year."
J. p. Morgan 81 Co. had giver
Mitchell q personal $4,000. 900 credi
at the time of the 1929 market crash
for stock purchases.