Mitchell Trial (Cont'd)

The prosecutor's evidence against Charles Edwin Mitchell, charged with defrauding the Government of income tax payments, was virtually completed in Manhattan last week. Biggest witness of the week was Gerard Swope, president of General Electric Co., who as a director of National City heard Mitchell intimate that National City Co. should reimburse him for private losses he sustained when he bolstered the price of the bank stock. Since Mitchell's chief loss was through the alleged sale of stock to his wife and the repurchase of it later at the same price (though the market value had fallen 80%), Prosecutor Medalie construed this evidence to mean that Mitchell had never really sold the stock to his wife and therefore could not have legally claimed an income loss for tax purposes. If he had sold it to his wife, why did he suggest that National City reimburse him? Thus Medalie.

Letters were introduced showing that Mitchell had sold 8,500 shares of Anaconda Copper to his friend, President William D. Thornton of Greene Cananea Copper, but had bought them back four months later for the same price. This transaction Medalie called a dummy sale to escape income taxes. Defense Counsel Steuer called it a favor to Anaconda Cop- per who, he said, had asked Mitchell to sell it to Thornton in order to prevent public dumping of the copper shares.

Next witness was Frank W. Black who made out Mitchell's income tax reports. Mitchell had told him, he testified, that the $666,666.67, which the Government claims he concealed, was a loan from National City Company and not a bonus. To stop this line of defense, Medalie told the court that this item had been written off National City's books, was therefore no loan.

Baldpated, urbane Judge Henry Warren Goddard rapped his gavel. The spectators filed out of the room talking and gesticulating. Banker Mitchell took his eyes off the dusty court clock, stood up. nodded to Lawyer Steuer. For five days the case was adjourned.

This file is automatically generated by a robot program, so reader's discretion is required.