Evening star., 1937-12-07

the trust were not claimed in his
original return to the Internal Revenue
Bureau. He added this claim when
the Government brought its charges
of fraud against him.
Involved Grand Jury Proceedings.
Todays decision brings to culmi-
nation three and one-half years of
litigation, marked frequently by bitter
charges and counter charges, by
clashes between counsel and, at one
time, by futile grand jury proceedings
Through it all Mr.. Mellon insisted
he was being prosecuted for political
purposes and that he owed the Gov
ernment nothing. He resented espe-
cially implications that his formation
of the Mellon Educational and Charit-
able Trust was for tax avoidance
purposes 1t was to this trust that
he consigned his famous art collection,
which he later presented to the
Nation, with great National Gallery
of Art in which tor house it.
To prove the extraordinary value
of his collection of old masters, he
called to the witness stand at the tax
hearings Lord Duveen and other noted
art connoisSeurs, who testified the
paintings were worth many millions
of dollars
President Roosevelt expressed his
gratitude for the gift in a letter to
Mr.. Mellon some months ago, and
Congress formally accepted the COL
lection, estimated to be worth at least
S50,000,000, and the proposed SIS
100000 gallery, plus S5.000,000
endowment. The gallery is now under
construction on the Mall, near the
Apex Building.
Cummings Acted in 1884.
Mr.. Melons tax troubles broke into
the open on March II, 1884, just prior
to his 10th birthday. when Attorney
General Cummings announced he was
presenting to grand juries evidence
against Mr.. Mellon, Thomas S. La
mont, New York financier; James j.
Walker, former mayor of New York
City, and Thomas S. Sidlo, Ohio
attorney.
The only one of these cases ever
to reach the grand jury was Mr..
Melons. A compromise was agreed
to in the Lamont case, the charges
against Mr. Walker we're withdrawn
and the Sidlo case was settled without
grand jury action.
In press statement issued after
announcement of the grand jury pro-
ceedings, Mr.. Mellon charged the
move was politics of the crudest
sort" and declared there was being
conducted against him in the press
and over the radio "a campaign of
character-wrecking and abuse" He
vigorously denied he had evaded in
come tax payments and said he
welcomed an impartial investigate
by the courts.
No Indictment Returned.
The Governments evidence was
presented to a Federal grand jury in
Pittsburgh, but an indictment was not
forthcoming.
About two weeks after Mr.. Cum
mings announced grand jury pro-
SSSliii6e, NAi NACllOAl WoS uOtillcu ny
the Treasury of an alleged deficiency
of $1,3l9,080 in his taxes for 1881 and
of its assessment of a penalty Of
$659,540. Later the amount of taxes
claimed for that year was raised to
S3,O89,261.
Mr.. Mellon appealed the assessments
to the Board of Tax Appeals, citing
l9 errors" he said were committed
in making the assessments. Among
major items at issue were losses
claimed for sales of stock of the
Pittsburgh Coal Co., Western Public
Service Corp. and other concerns. Mr..
Mellon claimed these sales were made
in good faith" and were legitimate de-
ductions. He also claimed deductions
for gifts listed to charities and total
ing more than $3,S00,000.
10000 Pages Of Testimony.
Hearings began in February, 1885,
at Pittsburgh, and were continued over
protracted period at the Internal
Revenue Building here. More than
10000 pages of testimony were re-
corded and briefs filed by both sideu
filled three large volumes.
Robert H. Jackson, then general