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TAX CASE PERILS
MELLON ART GIFT .Wrangle Over Income Levy Throws Gallery Project Into Confusion. BY JAMES WALDO FAWCETT. Is Washington to lose the art gal lery and pictures promised by former Secretary of the Treasury Andrew W. Mellon to the Nation’s Capital more than a year ago? That question was raised soon after the gift was announced and now again is being asked by many persons interested in the fulfilment of the pledge. The problem Is involved in the con * troversy over Mellon’s income tax re turns, is represented in the Govern ment’s claim for additional payments amounting to $3,075,103 and in a counter-claim for refunds amounting to $139,045, and is argued in the fourth part of a supplementary brief filed by Attorneys Frank J. Hogan and D. D. Shepard with the Board of Tax Appeals last Friday. To provide for numerous philan thropies. the brief explains, the for - mer Secretary established in 1930 the A. W. Mellon Educational and Char itable Trust, to which he gave during the next four years approximately $20,000,000, a large portion of w'hich was ’ earmarked" for the gallery and its contents. Such gifts, Mellon's law yers declare, should be exempt from taxation. Specifically, they insist, "pe titioner is entitled to a deduction on account of his gifts in the year 1931 amounting to $3,247,695." And the principle of exemption was admitted by the Bureau of Internal Revenue in a ruling dated March 8. 1933, to the effect that the Educational and Charitable Trust met the requirements of the law. Ruling Rescinded. * However, the Bureau of Internal Revenue on April 3. 1935, during the tax appeal hearing in Pittsburgh notified Mellon that it rescinded its ruling. Immediately the entire gallery project was thrown into confusion, a condition In w’hich it has remained ever since. The issue is stated by Hogan and Shepard as follows: "Petitioner is entitled to a deduction from gross Income on account of his contributions and gifts, including his gifts to the Mellon Institute and the A. W. Mel lon Educational and Charitable Trust, to the aggregate amount provided in * section 23 (n) of the revenue act of 1928 "The A. W. Mellon Educational and Charitable Trust is a valid, charitable trust, organized by peti tioner exclusively for public, religious, charitable, scientific, literary and edu •'The A. W. Mellon Educational and Charitable Trust has been operated exclusively for public, religious, char itable, scientific, literary and educa tional purposes. "No part of the net earnings of the A. W. Mellon Educational and Charitable Trust has inured to the benefit of the creator, his heirs or any person having a personal interest in the organization." Beneficiaries Not Definite. The Government, however, contends that Mellon has not named definite beneficiaries—a point which his at i tomeys answer with the basic legal claim that "definiteness of beneficia ries is not an essential element of a charitable trust: a charitable trust is favored in the law and will be upheld unless manifestly contrary to law. and its enforcement is vested in the At torney General of the State of the creator's domicile and when in favor of the Nation, in the Attorney Gen eral of the United States; the peti tioner intended and did create a valid enforceable charitable trust." Mellon, in simpler language, insists #that he gave something away and should not be penalized for doing so, especially when his country is the re cipient of the gift. Hence the question: Could the for mer Secretary cancel his offer and dispose of his money and his great masterpieces of painting elsewhere and to some other purpose? The an swer. it seems, depends upon the de cision of the Board of Tax Appeals. -• SIGMA DELTA CHI CHAPTER IS REVIVED Bv the Associated Press. Dr. Douglas S. Freeman, Rich mond, Va., editor, was initiated last night into the Sigma Delta Chi pro fessional journalistic fraternity by a group of journalism students from Washington and Lee University. The initiation was a part of the program reviving the Washington alumni chapter of the organization. Stephen J. McDonough of the Asso ciated Press feature service presided. Dr. Freeman was a Pulitzer prize winner with his book entitled “R. E. Lee.'' Ten journalism students from the Virginia university who attended the meeting, along with more than a hundred members of the fraternity In Washington, were accompanied by members of the university’s journal ism faculty. Department Head DR. HERZFELD TAKES JOB AT C. U. — ■_ —rm DR. KARL F. HERZFELD, widely-known physicist and professor of physics at Johns Hopkins University since 1926, , has accepted an appointment as head of the Department of Physics at Catholic University. Dr Herzfeld is internatiojially asknowledged as a leader in his field, and comes to the university after a brilliant ca reer of teaching and lecturing in Europe and America.—Un derwood & Underwood Photo. mm m m mm m m ■ mm ■ ■ ■ rUKot NhW ULUt ! Chattanooga Police Find Pocketbook Away From Scene of Crime. By th< Associated Press. CHATTANOOGA. Tenn.. May 2 — Discovery of a black pocketbook identified as piettv Mrs. Eula Mae McConnell's in a parked automobile "not near the scene of the crime” was announced by police tonight as a new clue in their hunt for her brutal slayer. Police Commissioner Eugene Bryan said the pocketbook was identified through bills and letters as that of the comely young housewife who was the victim of a savage daylight at tack Thursday. He added: “We are tracing owner ship of the car. It may have no connection but it is just another of j the many threads we are following." A short time later. Mrs Joe Sessions. neighbor of Mrs. McConnell who was the first to reach the 23-year-old mother of twin baby girls when she was found fatally beaten, visited the commissioner's office for further dis cussion of the affair. One purse belonging to Mrs. McCon nell and containing some money was found on the mantle of her apart ment after the attack. Bryan said the one found today was much older. The pattern of a new rubber heel, cruelly stamped on the young woman's abdomen, was another focal point of the police inquiry tonight. The heel prints, blurred fingerprints and a sketchy description furnished police additional clues to the slayer. Her assailant savagely beat her un conscious in her apartment late Thurs* day. Before her death she gasped out a few details of his appearance. The blurred fingerprints found In the bathroom of the apartment where Mrs. McConnell was found unconscious were sent to Washington for possible identification. BERNERD L. STRINGER KILLED IN AUTO CRASH Former Navy Yard Employe Sur vived by Mother and Brother Living Here. Bemerd L. Stringer. 39. former em ploye at the Washington Navy Yard, was killed in an automobile accident at Bell. Calif., near Los Angeles, last Monday morning while driving with a friend. Elmer Nelson. Stringer was a brother of George Frederick Stringer of 2426 Monroe street northeast. His mother, Mrs. William Bowling, lives at 3504 Twenty fourth street "northeast. The brother and mother flew to Los Angeles to attend funeral services Thursday afternoon. Bemerd Stringer was foreman of a machine shop in Los Angeles after leaving Washington. He was a native of Richmond. Va , but spent most of his life in Washington, leaving here two years ago. Feet vs. Forensics. MEMPHIS, Tenn. _ </P). — Federal Judge John D. Martin'has found that lawyers' feet tire more quickly than their vocal cords so he requires them to stand during examination of wit nesses. ' Lawyers sitting down are too long winded in mast cases,” he said. Prohibition Party Will Seek . Support as ‘Pioneer Liberal’, §y the Associated Press. CHICAGO. May 2.—The Prohibi tion party, in national convention next week, will renew its bid for na tional support as pioneer champion of “liberalism” in American politics, its Chairman, Edward Blake, said today. Noting a movement to lay "stronger , emphasis” on social security planks in the platform to be adopted at the gathering opening Tuesday at Niagara rails. N. Y.. Blake commented: "More people see the necessity fer • political party outside the dry j issue.” The liquor question—to him it is \ the “only real issue" in politics to day—will not be slighted, the dry leader said, but if the liberal move ment. succeeds social problems will get “more space in the plaform than the space given to prohibition.” The Prohibition party. Blake said, “always has been the leader In lib eralism. * * • (it) has taken an ad vanced stand on practically every * • * Important reform of the past three generations.” In support of this the party chair man listed what he said was a com parative record of indorsements by the Prohibition, Republican. Demo cratic and Progressive party platforms of "reform measures." Pro. Rep Dem. Prog. Ind. Ind. Ind. Ind. Woman suffrage 1872 1916 1916 1912 Civil service- 1872 1884 1876 1912 Direct elections. 1872 _ 1900 .... International arbitration .. 1876 1904 1916 1912 Income tax- 1896 _ 1908 1912 Tariff Com'sion. 1904 1912 1916 1912 Postal Sav. Bks 1908 . Child labor. 1908 1912 1916 1912 Resource conservation . 1908 1908 1912 1912 Employers' liability acts.. 1908 1916 1916 _ Old-age pensions 1916_ 1932 .... Unemployment insurance-1916_ 1928 .... Economic planning _ 1932 .... .... .... Govt, control of resources _ 1932 __ The agitation for a more “liberally” worded program, Blake said, is merely to emphasize our record in the public mind. It has as a concomittant with some, he added, a proposal to change the party’s name because “some mem bers of the party feel it had become discredited in the eyes of the public.” Blake predicted the party would al most double its vote in the presiden tial election, in comparison with the 1932 returns. Pour years ago the Pro hibition party name was on the ballot in only 20 States. 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