Salt Lake Telegram | 1935-02-22 | Page 12 | Mellon Stock Deals Probed

MELLON STOCK DEALS PROBED 1 PITTSBURGH Feb 22 UP UP The The e federal government will seek eek to determine de determine termine whether Andrew W W. Mellon Mello n directed purchase of bank tocks stocks s ss while he wa waS secretary of the treasury treasury treas treas- s ury when the hearing at which i it t seeks eks additional taxes from fro m him is resumed Mond Monday Y Government counsel developed de d that line of questioning just prior to t o ot the week end recess yesterday esterday as i idrew it t drew from Mellons Mellon's confidential secretary secretary secretary sec sec- accounts of the transfer of Mel Mel- Mellon lon Jon holdings to his brother when he assumed the cabinet post Close Stud Study Directed The secretary spec 1 lid H. H HM M M. Johnson who has held th that t position n 21 years years was car was directed d to study the two brothers' brothers business busine affairs clo closely cly and be ready to t testify st y ym m more re fully about them Monda Monday Robert H H. Jackson chief government government govern govern- ment counsel ope 1 Johnson about in Union Trust company company com com- pany of ot Pittsburgh stock which Andrew Andrew An An- drew W W. turned over to his his' brother Richard B. B in jn 1921 The stock later lat r was pa passed ed on to th the former cabinet e members member's son Paul Johnson outlined six transactions Involving acquisition of ot more bank stock tock and then disclosed loans to R. R B. B Mellon totaling about in April 1928 To Study Transaction It was teas that that Jackson directed Johnson to study during the rec recess so that he could say whether it was used to purchase other bank stack lock Johnson admitted th that t R. R B B. B Mellon Mel I lon Jon in repaying loans to Andrew W W. had bad been charged high interest rates When the elder brothers brother's affairs were I turned over to R R. B. B the interest was fixed at 54 Sz per pcr c cent nl By October 1929 however it had reached 8 per cent