Evening star., 1935-04-02
MELLON REVEALS
SALES TO ASCAL0T
Tells of Transactions While
Debating Whether to Ac-
Cept AmbaSSadorship.
BY the Associated Press.

By the Associated Press.
PITTSBURGH. April 2.-Andrew w.
Mellon disclosed today at his income
tax hearing that he was offered the
post as Ambassador to the Court of
st. James several weeks before he re-
signed as Secretary of the Treasury
in 1882.
The disclosure came as Robert H.
Jackson. chief counsel for the Gov
,rnment in It's efforts to collect $3,089.-
600 additional tax on Melons 1881
income, started his second days cross
examination of the financier.
Jackson began delving into the sale
of several blocks of stock by Mellon
in 1881 to his daughters Ascalot Co.,
holding concern.
There were two transactions and
Mellon said he thought there was
day or two intervening between their
discussion of these while he was in
Pittsburgh sometime in December,
1881.
How many days were you in Pitts
burgh?" Jackson asked.
OOIl lCCdu ~ WdS approaching
the time was going abroad" Mellon
replied.
The f1nancier's resignation from the
Treasury was not announced until
1882.
Did you know in December that
you were going abroad?" jackson
pressed.
Debated Going Abroad.
Perhaps not" was the reply. II do
not recall just when I knew it. The
post had been offered to me. I had
been asked to go abroad and in the
beginning I was doubtful whether /
desired to go abroad and that matter
was in abeyance-Oh, for a couple of
weeks or more. I don't recall the
time you are referring to. don't re-
call just where I was when made
my decision
jackson shifted his questioning to
transaction after transaction. ranging
from 1881 to 1888, and Mellon showed
good memory.
He recalled that in December, 1881,
Ascalot had bought from him blocks
Of American Locomotive. Texas Gulf
Sulphur, United Light g. Power and
Westinghouse stock on which he had
deducted s380,000 from his income.
THE purpose of the sale was
what?" asked Jackson.
1T was to simplify my holdings.
There was no especial reason for
keeping the stocks and 1 considered
them suitable for SALE" was the reply.
Desired to Realize Cash.
Q. No question of money involved?
Jackson continued.
A. Oh, yes. That was a factor.
@. How much?
A. don't recall. There was
desire to realize some cash I don't
recall the circumstances now.
@. You also, about the same time.
got some shares of Pennroad and
Republic Steel from Ascalot on which
it had a tax deduction?
A. Yes. think I had some Penn
road and they (Ascalot) said they
would sell it to me. i.
Shifting to 1898, jackson asked
about the sale of other stocks to
Ascalot on which Mellon claimed
deductions. He recalled only a block
of $500 Westinghouse, but on prompt
ing by the attorney said that there
was some United States Steel.
@. In November, 1893, Ascalot sold
some shares of Southern Pacific?
A. I recall 1t now. Mr.. Bruce
David K. E. Bruce, his son-in-law)
said he thought it would be a good
idea for Ascalot to sell its holding in
his concern. He may have given some
reasons. The company was not pay
ing any dividends and had no pros
poets of doing so. It would be better
for Ascalot to sell and put the pro-
ceeds into something that would pay
returns.
@. When was this conversation?
A. don't remember. But it was
before the sale.
Agreed to Sale.
@. You agreed 1t was desirable to
sell and it was sold?
A. Yes.
Q. The proceeds remained in your
account?
A. They may have.
@. Some time later you sold some
securities to Ascalot?
A. Yes. sold them some Koppers
Gas & Coke preferred. which 1 had.
When Mr.. Bruce said he saw no
prospects of any dividends from
Southern Pacific and asked what I