Evening star., 1935-04-30
j. 5. COUNSEL ASKS
TO QUIT BIG SUIT
Mellon Case Adjournment
Sought by Jackson, An.
gered at Bench.
BY the Associated Press.


ment Counsel Robert H. Jackson
moved yesterday to withdraw from
prosecution of the Governments So
089,0 900 income tax case against An
drew w. Mellon after the Board Of
Tax Appeals rejected a brief he had
filed in arguments over eligibility of
certain letters he was seeking for the
records.
The attorney asked for a 3O-day
adjournment so he could report to
his superiors in Washington regard
ing a possible successor after assert
ing he did not feel free to proceed
with the case in view of statements
from the bench" that his memoran-
dunn was false, ill-tempered and not
useful"
The board recessed twice during the
day to let tempers cool after heated
exchanges between counsel for the
two sides and reserved ruling on the
adjournment motion until later"
Attorneys continued with another
phase of the case, leaving the matter
of the letters also unsettled.
Request Held Not Met.
In handing down his decision, Pre-
siding Member Ernest H. Van Fossan
said the board was satisfied the Gov
ernment brief did not comply with
the request of last Friday for legal
opinion on similar issues and that
it contained somewhat ill-tempered
argument based on the false assump-
ton that fraud is charged in the
McClintic- Marshall phase of the
case"
Van Fossan suggested that the en-
tire arguments be stricken from the
records and hoped" counsel would
concur. 1t was then that jackson
pleaded for adjournment and asserted
he would rather have the records
remain as they are"
Jackson was trying to get into the
records letters between Melons per.
sonal counsel, d. D. Shepard. and the
Pittsburgh law firm which repre-
sented McClintic- Marshall Corp. in
its $21 900, 900 merger with Bethlehem
Steel in 1881.
AS a 80 per cent stockholder in Nc
Clintic Marshall, the Government
charges he owes income tax on his
share of this transa action, which 1t
claims was part Of an unlawful plan
to evade taxes. Jackson said in his
argument that the Government may
add the charge of fraud to this deal.
because it learned only last week that
Mellon personally had been acquainted
with the reorganization plans.
FIare-Up Comes Late.
The first fiare-up occurred soon
after opening of the eleventh and final
week of sessions in Pittsburgh. The
Government filed its brief, asserting
that if the board found Mellon was
liable for tax in the Bethlehem
transaction, "every act Of assistance
and advice" given by the attorneys
resulted in aiding and abetting in an
attempt to perpetrate fraud"
Continuing. it said the Government
did not believe the board would per
NIT this petitioner to successfully
maintain position so lacking In fair
ness and common honesty" and
added:
1T certainly seems that the stren-
uous objection raised as to the dis
closure of these communications
indicates a deliberate and de-
signed attempt is being made to mis-
lead this board into holding that the
transaction is non-taxable, when in
fact it would be held taxable If the
true facts were known"
Flushed with anger, Frank J. Hogan,
chief of Mellon counsel, demanded the
brief be stricken from the record as
vicious, scandalous, scurrilous, i'm
pertinent and malicious" He said he
denounced the author as a contempt
ible scoundrel and libelor and SLAM
derer Of members of his own profess
sion"
In. his own 6,50e-word brief about
the letters. Hogan asserted Mellon
personally waived any objection to in
PRODUCTION of the letters, but that he
believed the witness, Paul G. Rode
Wald, was legally bound to refuse
them because of the sacred rela-
of client and attorney.
firm represents the three
other former stockholders in Nc
Clintic- Marshall and said they had
advised him not to surrender the cor