AMAZING TAX EVASIONS

Timaru Herald, Volume CXXXVIII, Issue 19906, 17 September 1934, Page 7

AMAZING TAX EVASIONS

ALLEGATIONS AGAINST RICH AMERICAN United Press Association—By Electric Telegraph—Copyright (Received September 16, 6.35 p.m.) WASHINGTON, September 15. In spite of the refusal of a Pennsylvanian grand jury to indict Mr Andrew Mellon for alleged tax evasion, the Department of Internal Revenue today filed a brief with the Board of Tax Appeals accusing Mr Mellon, while he was Secretary of the Treasury in 1931, of “scheming” to evade taxes aggregating 3,075,000 dollars. The brief said that he illegally reduced taxable income by fictitious sales of securities and other devices. Mr Mellon immediately denied the validity of the brief, and reiterated the charge that he is subject to political persecution by the present Administration.

The Attorney-General of the United States, Mr H. S. Cummings, announced on March 11. that proceedings were to be taken against the former Secretary of the Treasury, and a former United States Ambassador to Great Britain, Mr Andrew Mellon, the ex-Mayor of New York, Mr James Walker, Mr Thomas Lamont, a partner in J. P. Morgan and Company, and Mr Thomas Sidle, a noted Cleveland lawyer, partner of the ex-Secretary of War, Mr N. D. Baker, for alleged tax evasion. The newly created tax division of the Department of Justice also announced that other cases of a similar nature were pending against certain individuals. The case against Mr Mellon had been under investigation for some time.

At Pittsburgh, on May 8 a grand jury disposed of the Government’s tax evasion charge against Mr Andrew Mellon, by refusing to return an indictment, declaring that the complaint was “not a true bill.” Mr Mellon, in expressing gratification, announced that instead of having evaded the payment of 716.000 dollars of income taxes in 1931 as he was charged, he actually over paid and he would seek a refund.