MADE MILLIONS

Gisborne Times, Volume LXXXII, Issue 12252, 6 April 1935, Page 5

MADE MILLIONS

IIOW. MR MELLON ACQUIRED HIS “ FORTUNE ' ; BOUGHT SHARKS AT £2O AND SOLD AT' £304,0. FOUNDED BANK WITH NO CAPITAL FATHER AND SON DIVIDED PROFITS THEN DREW THEM OUT. (U.P.A. by Elec. Tel. Copyright.) PITTS BURG, April 4. A remarkable .account of how , his fortune was built was recounted by Mr Andrew Mellon in the witness box in giving evidence in the case in which he brought to clear his name from the charge of alleged income tax evasion. The former Secretary of the Treasury told how, jviithovt consulting him stockholders of the Union Trust Company had ma'de him president and kepi him in office without duties in spite of bis protest. Then/ when the bank’s affairs bad not p- qspered W' stockholders intimated that they would gladly seTl to him their holdings. lie bought 100,000 ■'-hares at £2O each, and then “»ot after business.' 1 The same shares later sold ;, -s Irian as £3Ol-0 each. He then reverted in his evidence C: the middle years rf last renTi■; y. when he was a pa-liier with his father m a private hank which never had -'uy capital, the depositors s'mplv bringing their money. I here ‘or sale' keeping. He and his father divided the profits and drew them out. IPs father's capital was ‘‘goodwdi cud lus name.’' Other brothers win attempted to found a fortune similarly m North Dakota failed. Andrew Y\ - . Mellon, by gifts to his children reduced his personal fortune by more than £24.0h’0.-Oj 0 in ?() days in 19SL. it was j-«—caled in court ;e----centlv. I The dis'-losure wav. made >w !F confidential secretary, H. .M. Johnson, in the Government's suit to <o] lect £GCO,.C'B additional 1031 income taxes. The Government claims Mellon evarlej taxes through “shadow" stock sales. j Johnson testified that t-»>: eempt bonds owned by Mellon on Bc-'.emboY jl. 1931, totalled’ £I,S7O.COC. or ‘dess J than 5 per cent of Ids persona] ‘wealth’ The figure indicates that Mellon’s personal wealth totals £40,C';'):000. Johnson testified that on December ; 31.. U‘3l, when .Mellon closed his j books to pay his income tax. lie was worth £19.400,010. After Dei ember 1 , when Mellon was worth £40,000,000 the coalesced company was organised by his children. Raul Mellon and Airs Ails,a Mellon D -nee. Mellon poured £13,630,000 Into it. but the Government contends that he maintained con trol of that money. • ,