Salt Lake Telegram | 1937-12-07 | Page 1 | U. S. Board Absolves Mellon Name of Tax Fraud Charges

U. S. Board Absolves Mellon Name of Tax Fraud Charges Government Claims of $750,000 Allowed, I but Rest of Suit Quashed WASHINGTON, Dec. 7 (UP) The board of tax appeals today sustained government claims for back taxes estimated at $750,000 against the late Andrew W. Mellon, but absolved the former Pitts- burgh financier of fraud. In an opinion concurred In by all IS members of the board, the former for-mer secretary of treasury and ambassador am-bassador to Great Britain waa cleared of fraud charges in connection connec-tion with his 1931 income tax returns. re-turns. Mellon' estate emerged victor In six of the 10 major issues In which the government sought to collect $3,075,103 in taxes. The government's! claims were upheld on three of the remaining issues and the final issue ended In compromise. The decision did not specify the actual amount of Mel Ion deficiency, de-ficiency, but set forth findings of fact on which ths final figure ultimately ulti-mately will be determined by counsel coun-sel for the government and the estate. es-tate. Government attorneys estimated esti-mated the final assessment would approximate $750,000. The board found that Melton's donation of five paintings by old masters to ths A. W. Mellon educational educa-tional and charitable trust was a "valid completed gift. Mellon, who died last August 26, had claimed a deduction of $3,247,-6ttt $3,247,-6ttt for this gift. "The petitioner did not file a false and fraudulent return with the purpose pur-pose of evading taxes, the opinion I (Conttnuexl on pajr. Two) ' i Column On l $750,000 WON IN BACK TAXES (Continued from Pace On) said fn connection with this transaction. trans-action. "No part of the deficiency, if any, resulting from the recomputation consequent hereon, is due to fraud with intent to evade taxes." The board also absolved Mellon of a charge that he filed a false and of evading taxes. The government charges involved two stock trans-actions trans-actions sale of the common stock of "ths PittsburglTCoaI company to the I'nlon Trust company of Pitta-burgh Pitta-burgh and stock of the Western Public Service corporation also. to the Union Trust. The board found that tha sale by Mellon of stock of the Pittsburgh Coal company whs a complete and valid sale, and that Mellon was en-titled en-titled to a legal deduction. Mellon claimed a loss of $3.677,9.' in this transaction. Issue la Lost Mellon interests lost tha issue which involved sals of stock of the Western Public Service corporation to the Union Trust Company of Pittsburgh.