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The prosecuting argument: Mr. Mellon is a heavy stockholder in Aluminum Co. of America; for it he had negotiated a business deal in 1925 with the late James B. Duke; ergo he is in trade. Gulf Oil Corp. owns seagoing tankers; Mr. Mellon is a large stockholder in Gulf Oil; et go he is an owner of sea vessels. Under him the Treasury has issued a publication called The Federal Architect which recommends the use of more aluminum in the current public buildings program, thus drumming up trade for Aluminum Co. He has caused "millions" of dollars in taxes to be refunded to Aluminum Co. and Gulf Oil, "thousands" of dollars to himself. The Treasury literally labels his concerns "Mellon companies." He used his official position to have the Barco oil concession in Colombia restored by that Government to Gulf Oil, following personal conversation with President-elect Olaya Herrera.
To be his personal attorney before the committee, Secretary Mellon chose a man even younger than Impeacher Patman. As a young clerk "Alex" Gregg entered the Treasury in 1920, became Solicitor of the Bureau of Internal Revenue, retired in 1927. Last week Lawyer Gregg, now out in private practice, arose before the Judiciary Committee to defend his chief.
The defense argument: Mr. Mellon owns only about 15% of Aluminum Co. The holdings of his family are not at issue. He controls no corporation. He owns no bank stock. Stock ownership does not constitute "trade or commerce." From Hamilton to McAdoo and Glass Treasury Secretaries have owned stock without violating the statute. Mr. Mellon personally owns no sea vessel. He never passes on tax refunds. He was allowed a refund of $91.000 on his taxes but was also assessed an additional $209,000. making a net tax loss of $118,000. A bumptious Treasury employe once labeled papers relating to Aluminum Corp.: "This is a Mellon company." Superior officers immediately ordered off the label. Mr. Mellon never mentioned the Barco concession to President-elect Olaya.