Indianapolis Times, Volume 46, Number 244, Indianapolis, Marion County, 20 February 1935 — Page 8

PAGE 8

•base politics: MELLON FORCES TOIL TO PROVE Attorneys for Ex-Treasury Chief Point to Three Pieces of Evidence. By United Press PITTSBURGH, Feb. 20.—Andrew W. Mellon, sooner Secretary of the Treasury, today pointed to three pieces of evidence to prove that the $3.000 000 income tax suit against him is "political persecution.” Mr. Mellons attorney, Frank J. Hogan, obtained several admissions during his questioning of Charles T. Russell, deputy commissioner of internal revenue: 1. That Mr. Mellon was not given the customary 30-day letter informing hint of proposed changes in tax amounts. 2. That Frank J Wiatman. assist- I ant attorney general, and not any ' one in the revenue department signed a letter of ' deficiency.” 3. That a stamped notation on revenue department letters concerning the Mellon case said: “This case has not been considered on its merits.” “Raw* Politics.” He Says Mr. Mellon has repeatedly charged that the attempt of Atty. Gen. ! Homer S. Cummings to collect $3,000,000 additional on his 1931 in- ! come is "base politics.” Mr. Mellon claims, on the other hand, that he : overpaid his tax in that v?ar Dy $139,000. A grand jurv last year refused to indict Mr. Mellon on fraud charges in connection with his returns for 1931. The government nevertheless, pressed its civil suit. The present hearing is before three members j of the Board of Tax Appeals. The chief government attorney, Robert H. Jackson, bases his case on claims that Mr. Mellon conducted “shadow sales” of various stocks and holdings in order to I show huge "losses'' and consequently j reduce his tax. The sales, he con- j tends, were made among various; members of the Mellon family and by transferring stock from one Mellon concern to another. Attorneys Wrangle Bitterly Sharply sarcastic comments be- i tween attorneys were halted by! Ernest H. Van Possan, chairman of ; the board hearing the case. “Let me say,” Mr. Van Fossan i remarked, “that there will be no; colloquy between counsel.” Mr. Jackson, at one point when Mr. Hogan hesitated, offered to “loan you a good tax attorney.” On another occasion Mr. Logan accused Mr. Jackson of “fishing for evidence.” “We've done our fishing.” Mr. j Jackson retorted, “snd we've caught j our fish.” H. M. Johnson, confidential sec- ‘ j retary to Mr. Mellon, testiLed that j 1 all of the M?llon sales were “genuine and honest sales.”

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A youthful crusader, crying “Get Tennesese off the educational blacklist,” is daring the wrath of his fundamentalist state with his bill for repeal of the antievolution law that led to the sensational Scopes trial ten years ago. He is Cecil Anderson, 22, state Representative and Vanderbilt law school sophomore, shown studying his bill.

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MIDDLE COURSE BY U. S. URGED ON ENGINEERS Both Fascism, Communism Must Be Spurned, Says Dr. Flanders. A middle course for the United States in the future, spurning both Fascism and Communism, was outlined last night by Dr. Ralph E. Flanders, Springfield, Vt., president of the American Society of Mechanical Engineers, at the concluding session of the Indiana Engineering Society annual meeting at the Lincoln. The individual is subordinate to the social structure under either

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! Communism or Fascism, Dr. Flanders warned the enginec; “We must be willing to forgo speculative profits and rely on profits from productive activity,” he said. The society went on record as supporting House Bill 168, which provides for registration of engineers in Indiana. The resolution stated: “We find provisions of the bill such as to raise the standards of the engineering profession and provide better protection of the public interest.” W. A. Hanley, Indianapolis, was elected president of the society to succeed W. C. Mabee, Indianapolis. Other officers are Prof. R. L. McCormick, Terre Haute, Rose Poly-

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technic Institute, vice president, and Mr. Mabee. Prof. D. L. Ctirtncr, Purdue University, and L. D. Davis, Terre Haute, directors. Other organizations participating in the meeting were the Indianap-olis-Lafayette section of the American Institute of Electrical Engineers, the Indiana section of the American Society of Civil Engineers and the Indianapolis section of the American Society of Mechanical Engineers. John W. Wheeler, of the State Highway Department, was elected president of the Indiana section of the American Society of Civil Engineers to succeed Howard S. Morse, manager of the Indianapolis Water Cos.

TREASURY MAPS NEW FINANCING Complete Success of Huge Operations Forecast by Officials. By United Press WASHINGTON, Feb. 20.—Complete success of huge Treasury financing operations that may reach $15,000,000,000 in the next 12 months

is assured by the government’s victory in the gold cases. Administration officials asserted today. Determined to protect that victory, the New Deal considered seeking legislation to outlaw future legal attacks on its gold policies. Financing operations facing the Treasury include raising of $4,880,000,000 to carry through President Roosevelt’s new work-relief program. Some critics have expressed fear that the borrowing and spending of this additional amount might tax the government's credit to a dangerous degree. Administration experts, however, pointed to the spurt in government bonds to new high prices following the gold decision

.FEB. 20, 1935

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