Evening Star Newspaper, June 8, 1933, Page 5

MITCHELL ADMITS ' PAY WAS DOUBLED Did Not Use Any of $200,000 to Pay Back “Advance,” However, He Says. 8.—Charles E. Mitchell testified at his income tax wasion trial today that in 1931 (he thought it was that year though he seemed uncertain) he received a 100 per | vent salary increase—from $100,000 to| $200.000. i And yet he used none of that extra | salary, he acknowledged under ques- tioning by United States Attorney George Z. Medalie, to pay back any of | & $666.666.67 payment he had received from the National City Co. and which he had not entered on his income tax return, on the ground it was not in- come but merely an advance to be repaid. He said the salary increase was from $25,000 to $75.000 as chairman of the National City Co. and from $75,000 to $125,000 as chairman of the National City Bank. | | Tells of $50,000 Fund. | Under further questioning, Mitchell told of another management fund split | up which brought him $50,000 “And to reduce that $666,000 debt?” Medalie. “No, I paid back no part of it,” Mitchell replied | Mitchell is charged with defrauding | the Government of more than $850,000 in income taxes for 1929 and 1930 by | sham sales of stock to his wife and to a | friend of a friend, and by pretending that the management fund payment was an advance rather than a gift. Medalie started the session by asking: “Did the directors of the National City Co. ever discuss collecting the $1,- 860,000 they had paid out to officers of the company from the management fund in July, 1929, by any means other than from future payments from the fund?” Tells “No, sir,” Included $666,666.67. 5 “Did you,” Medalie asked, ‘“receive| from the management fund in January, | 1930, the sum of $380,000?” A. 1 did. Q. Did you ever pay any part of it back to the National City Co.? A. I did not. Medalie next turned to a resolution by which the National City Co. dlree-‘ tors in 1931 split up among the officers | $140,000 still remaining in the manage- ment fund from the 1928 earnings. | “Did you prepare the reso]utlon?"‘ | | | ou paid back no part of that asked of Receiving Funds. Mitchell replied. in the $1860,000 was the | Medalie asked. “I don’t remember. If I did, it was on advice of counsel.” Q. Who first proposed that_distribu- tion? A. Mr. Baker (Hugh B. Baker, president of the company). Q. And you approved. A. Yes, sir. Q. You, recall that on January 2, 1931, you' received as your share $50,- 0007 A. I do. Q. *nd you paid back to the com- pany no part of that to reduce that $666,000 debt. A. No, I paid back no part of it. Questioned on Copper Deal. Medalie then questioned Mitchell about his transaction in Anaconda Copper stock with W. D. Thornton. To record a loss on his 1930 income tax return, Mitchell in December, 1930, sold to Thornton, a friend and business associate of the late John D. Ryan, chairman of the Anaconda Copper Co., 8,500 shares of Anaconda stock at a loss, he says, of more than $750,000. His test] y has been that Ryan, desiring that the stock be not thrown on the market, brought Thornton for- ward as a purchaser. Subsequently Mitchell bought the stock back, ana the Government contends the sale to Thornton was not a bona fide transac- tion. Mitchell sald Ryan told him he thought he ought to sell the stock to Thornton at half a point lower than the market price at that time (Decem- ber, 1930). Mitchell repeated his previous testi- mony that Ryan had never told him that he had put up 2,500 shares of | ta Anaconda. stock at collateral toward the $229,000 loan from the J. P. Morgan Campfln{ with which Thornton bought the stock, “Did he never tell you at any time?” | has been piling up for some time. Train Hits Child, But His Injuries Prove Very Slight By the Associated Press. CHICAGO, June 8—An elec- tric train was speeding toward downtown Chicago last night at the rate of 60 miles an hour. Three-year-old Arthur King, who had wandered from home. peered through his thick-lensed glasses and started to cross the tracks. Passengefs waiting at a sta- tion shouted in horror, but before they could attract the boy's at- tention the train struck him. The train crew took him to a hospital, where physicians found that beyond a small bruise on his head and a few minor scratches from his broken glasses, there was nothing much the matter with him. SPANSH CABINET QTS AFTER FRAT Zamora Refuses to Make Ministerial Changes De- manded by Premier. By the Associated Press. MADRID, June 8—The government headed by Premier Manuel Azana re- igned today. The resignation came after a cabi- | net session and resulted directly from | the refusal of President Niceto Alcala | Zamors to make ministerial changes Tequested by Premier Azana. The pre- | mier had asked that a new treasury | minister be appointed and that the ministry of agriculture be split into two parts. Confidence Lost. When the President informed him he | Would be unable to do this without con- sulting Republican minority leaders, the premier detlared Senor Alcala Zamora | no longer had confidence in the cabinet. | Opposition to the Azana government, | which was formed December 15, 1931, | The cabinet's difficulties were increased ma- terially recently as a result of a con- troversy over Spain’s new religious laws. These laws, which were signed by President Niceto Alcala Zamora last week, turned religious orders into civic groups and nationdlized church prop- erty worth millions of dollars. Pope Pius issued an encyclical declaring the legislation constituted an attack not only on the church, but on all religion, and members of the Spanish govern- men‘tt were automatically excommuni- cate Move Expected. ‘The Radical Socialist bloc, headed by former Foreign Minister Alejandro Ler- roux, has been restive for some time and political observers had expected it to withdraw its support from the gov- ernment. High government officials appealed to the Radical Socialist convention yes- terday to continue their support, saying that Spain was undergoing a type of civil war between the of the right and the left. This civil war, gov- ernment spokesmen said, was exempli- fied in the campaign against the n]:urhn reform law and the religi W. The agrarian reform law provides for the seizure of the estates of men who were grandees under the monarchy, and for the distribution of this land among the peasan | TWO BEER TRIALS VAIN ATLANTA, Ga., 15 minutes were required by a jury [Auxiliary Fight Reflects Op- |h00d of Locomotive Engineers came to- jous | Soclety, and was addressed June 8 (#).—Just STAR, WASHINGTON REPEAL IS OPPOSED BY MAJ. DALRYMPLE; FOR STRONGER WINES (Continued From Pirst Page.) THE EVENING ENGINEERS' SCHISM SHOWN N ELEGTION was greater respect for the law now because of liberalization, Dalrymple said he was the head of prohibition in | six_States under the Wilson adminis- | tration and that then “the people would | not_co-operate.” “Now we get the co-operation of all | classes,” he continued, “even brewers. ' They are willing and anxious to hélp | enforce the law because they feel that | a violator is escaping a tax and thus | penalizing them. Because of that I believe we can get more convictions. Sees Less Drunkenness. “I do believe, too, that there is less | drunkenness than there was in the days before liberalization. If my convic- tion is correct, beer is causing the sale of less hard lisuor than before. Of | position to Johnston in Brotherhood. By the Associated Press. CLEVELAND, June 8.—An echo of the attempt by a group of ‘“progres- sives” to oust Alvanley Johnston as grand chief engineer of the Brother- day from the Grand International Aux- | iiiary of the brotherhood : s | course, we know it is very difficult to A factional baitle over the election of | ot ™ot Xicated o this 3.2 per cent officers for the women's organization | beer.” appeared probable unless Mrs. Mary E. | Dalrymple-testified that 50,000 peo- Gassell, a grand officer for 43 years, re- | Ple_Were directly dependent upon the signs the presidency she has heid since 1919. She was reported to have con- sidered resigning on the eve of the elec- tion or refusing to be & candidate for re-election. Financial Condition Good. Younger members of the women's Or- ganization were said to feel that the | extensive traveling expected of the pres- ident was too much to ask of Mrs. Cas- sell, who is past 70 and whose health is not tho kest. | Meanwhile, officers of. the auxiliary | cenied reports that the organization financial condition was questionable. “You can say that our financial condi- tion is exactly what it has always been—good,” said one officer, | She and. other officers declined to comment about sums reported lost through failure of the Standard Trust Bank of Cléveland, of which Johnston was a director, and the B. of L. E. a heavy depositor. They contended no | significance was attached to the ap- pearance before the auxiliary of W. .Y.‘ Burke, finance director of the en- BEAUTIFUL SHOES The New ITA Style | gineers. Grand Jury Probes Bank. The Standard Trust Bank is one of several outside financial ventures of | the brotherhood that forms the basis | for the effort to unseat Johnston. A | committee of engineers is to investi- | gates the books of the bank, with the assurance of Gov. George White and State Commerce Director Theodore H. | Tangemen that State authorities will | co-operate to the fullest. A grand jury now is investigating the bank’s failure with the view to| determining if the Ohio | statute was violated. C. Stirling Smith, former president; D. T. Winslow, fo mer auditor, and Howard F. Evans, | insurance counsel to the bank directors, | already have been indicted for alleged | embezzlement. | “Progressives” won a minor point in their fight on Johnston in connec- tion with selection of the Bank Inves- tigation Committee. The convention decided by vote that the investigators | must be chosen by the delegates and | not. by Johnston. | e CATHOLICS COMMENCE PROGRAM FOR RELIEF An intensified program for FMBJ funds to meet relief demands upon the Catholic Charities and the Society of St. Vincent de Paul was mapped at a meeting last night of the latter organ- | ization in the headquarters of the Cath- | olic Charities, 601 E street. | The session was attended by dele- | gates from 35 parish conferences of the by Rev. John | O'Grady, director of Catholic Charitles. | Reports from the presidents of each of the parish conferences, made by George J. Cleary, president of the so- clety, revealed a steady increase in the | requests being made for assistance. The 100th anniversary of the found- ing of the society will be celetrated at | the Shrine of the Sacred Heart July 23, | according to plans announced by Cor- nelius Ford, chairman 6f a committee ‘a-mkmg arrangements for the celebra- | jon. yesterday to acquit the second man tried for violating the State prohibi- | tion law through selling 3.2 per cent beer under license by the Atlanta City | Council Roy Young, cafe operator, was the defendant. Last week urant opera Jjury that deliberated three s, Five other beer-selling cases sched- uled for trial yesterday were removed from the calendar by Solicitor John McClelland after Young's acquittal. Six similar cases set for today were ordered J. H. Falks, res- | tor, was acquited by a| Tomorrow’s Special Seafood Plate, Impe- rial Crab, Crown Roast 50c of Lamb.... % Other Dinners, 55¢, 65¢, 75¢ Collier ¥ 18th and Cel. Rd. Medalie asked. “At no time,” the witness replied. post And 1521 K St. NW. 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Because Palmolive now costs so little, you carl well afford to let it do for your entire body what it does so well for the face. o« « The vial at the right shows the exact amount of olive oil we put into each cake Your daily beauty care More than 20,000 experts tell you to cleanse skin this way: work a rich, thick lather of Palmolive Soap and lukewarm water into the skin of face, throat and shoulders. Rinse—first with warm water, then with cold. Watch how this revives and refreshes the beauty of your skin. D. C, THURSDAY, JUNE 8 grape Industry and “hundreds of thou- | sands” indirectly. A legalized use of ; grapes for wine under the new hfll.l Dalrymple said, would give the grape wer a fair Teturn and “make it in- tely more easy to enforce the laws.’ HEADS BOYS’ CLUBS CHICAGO, June 8 (#)—William Ed- | win Hall, New York lawyer, yesterday was re-elected president of the Boys’ Clubs of America. He has been pres! dent since 1916. | Other officers elected were also re- elected at the close of the three-day convention here. y were: John | Hays Hammond, Washington, vice president, and William Zeigler, New | York, secretary. Warden Lewis E. Lawes of Sing Sing Prison, long active | | in boys’ club work, was added to the | | Board of Directors. ~ FLYING ANTS (Termites) sodwork i GUARANTEED TREATMENT Vacating Unnecessary—Free Inspection Terminix Co. of Washington 1102 National Press Bldg. FOR WOMEN BOOT SHOP Perforated WHITE LITY Sheoes Nothing smarter than white for Summer. And the newest trend of fashion in white is smartly achieved in these dainty, punched-out Vitality Shoes. Cool and airy, they are a delight to the foot -and a perfect complement of Summer ensembles. Queen Quality Boot Shop 1221 F Street N. 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