Next!

A little side investigation conducted by the Senate has been looking into the Bureau of Internal Revenue. One of the matters gone into was the refund of taxes to the Gulf Oil Corporation in which Mr. Mellon is interested. It developed that a settlement had been made in regard to tax refunds on Feb. 28, 1921, a few days before Mr. Mellon took office. An agreement for a final settlement was made in August of last year under Section 1312 of the Revenue Act, by which the case cannot be reopened. The propriety of this is at present under inspection.

No sooner, however, had Mr. Daugherty handed in his resignation than another attack was opened on Mr. Mellon. Senator McKellar, Democrat of Tennessee, presented a resolution for an investigation by the Judiciary Committee to determine:

First: Whether the said A. W. Mellon is directly or indirectly concerned in carrying on the business of trade and commerce.

Second: Whether he is the owner in whole or in part of any sea vessel.

Third: Whether he is holding the office of the Secretary of the Treasury of the United States in violation of section 243 of the Revised Statutes of the United States, or any of the laws of the United States.

Fourth: Whether he is holding the office of the Secretary of the Treasury of the United States in violation of section 3168 of the Revised Statutes of the United States.

The first two questions refer to Section 243 of the Revised Statutes which forbids a Secretary of the Treasury to do either of the things mentioned. Section 3168 referred to in the last question, forbids an Internal Revenue officer to be interested in the manufacture of tobacco, distilled spirits or fermented liquors. Infraction of the first section (above) carries a penalty of $3,000 and disbarment from office; the second, a penalty of $5,000.

When the resolution came up Senator David A. Reed of Pennsylvania rose and told how he and four other lawyers had been consulted by Mr. Mellon before the latter took office. On their advice Mr. Mellon had disposed of such of his property as in their opinion would be in violation of the statutes. After Mr. Reed's explanation, the resolution was placed on the calendar whence it is not likely to be withdrawn for consideration.

There is some feeling among the Senate Democrats that the public is getting "fed up" on investigations, that it would be better not to press this one. There had been talk that having attacked Fall, Denby, Daugherty, the Democrats were ready to proceed to Mellon, Wallace, Hoover. It appears not.