Evening star., 1937-08-29
Mellon
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1t was lust another Mellon-dom-
mated concern" because its trustees
included only members of the family
and their attorney, Shepard.
Established in 1880.
The trust was established in 1880
and by 1885 had been given rare
paintings which cost $l9,000OOO and
sl,250,000 in cash and securities. OF
that sum Paul Mellon gave $l91 900.
The paintings, valued by art experts
as worth around $50,O00,OO0, since
have been given to the Federal Gov
ernment for National Art Gallery
Mellon donated more than $4,000, 900
for building, ground for which now
is being cleared in Washington.
The trusts articles provide that its
funds and properties be administered
and operated exclusively for the bene-
fit Of, and the trust estate shall be
distributed by the trustees exclusively
in aid of such religious, charitable
scientific, literary and educational
purposes AS shall in the Judgment of
the trustees, be in furtherance OF the
public welfare and tend to promote
the well-doing or well-being of man
kind and or for the use of the United
States. any State, Territory. or any
political subdivision"
Distribution Prohibited.
In arguments before the Tax APP
peals Board Attorney Frank J. Hogan
declared the trust was irrevocab BILE and
provisions prohibited distribution of
funds or properties to Mellon. his heirs
or personal representatives or to any
OF the trustees or their successors.
Hogan stated that up to April,
1885, the trustees had distributed
s255,443 for religious, charitable and
educational purposes and bought
$4,000 worth of pictures Contribu-
tions or gifts went to 81 separate
organizations he said, and included
establishment Of Yale-Cambridge
exchange scholarship.
Shepard's formal statment said:
With the exception of bequest OF
SlS0,000, TO be divided among his per-
sonal employees, in appreciation Of
their loyalty and efficiency, and such
household effects as are contained in
his residence, the entire estate will 70
to the use of charitable and educa-
tional purposes.
The A. w. Mellon educational and
charitable trust created in December,
1880, IS the organization to which
the residue Of the estate has been left.
The deed creating this trust provides
that its funds shall be applied exclu-
slVely to religious. charitable and edI.
catlonal uses and purposes. 1t has
already distributed many millions OF
dollars during its existence"
His son, Paul Mellon: his son-in-
law, David Bruce. and his attorney,
Donald D. Shepard, who are the sur
yivlng trustees of the A. w. Mellon
Educational and Charitable Trust.
were named as executors under the
will"
Estate Extremely Larre.
ShepArd said the properties OF the
estate were OF such q varied charac-
ter that 1t would be impossible to
make any estimate OF its size, but
that 1t was extremely large"
Melons SECRETARY, H. M. johnson,
testified in An income tax hearing
two years ago that in 1881 he eeti-
mated his employers wealth at $685.
100000.
The question Of whether the gift to
the Educational and Charitable Trust
will be tax exempt may be one which
will have to be settled in court.
In reasessing Melons income for
1881, the Internal Revenue Bureau
ruled that gifts to the trust were
taxable, holding that it was not
bona fide charitable institution.
That was one of the issues which
was debated before the Tax Appeal
Board, which still is considering Mel
Ions appeal from the 5000 900 as
sessment.
A spokesman for the family said,
when asked about the dispute con-
corning the trusts character:
II feel certain that Mr.. Mellon had
ample legal assurances that the trust
in every sense Is charitable one,
under the law, before he made his
will"
Shepard said tonight reports that