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...best client," Frank J. Hogan tells his friends in private, "is a rich man who is scared." In Pittsburgh last week Attorney Hogan was serving the best client of his career. Andrew William Mellon had hired Washington's No. 1 criminal lawyer to play the desperate game which the New Deal had forced upon the 79-year-old onetime (1921-32) Secretary of the Treasury. The New Deal's stake: $139,045 and the reputation of its Attorney General Homer Stillé Cummings, charged with forcing the game for personal spite and political advantage. Mr. Mellon...

Author: /time Magazine | Title: TAXATION: Rich Men Scared | 3/11/1935 | See Source »

...taxes and penalties, based on a charge that Mr. Mellon had deliberately cheated in his 1931 income tax return; 2) Mr. Mellon's counterclaim for a $139,045 refund on that return, based on an assertion that he had not reported all his philanthropies. Last week spry Counsel Hogan's chief job was to tackle government counsel as it attempted to dart out of bounds on what looked like purely grandstand plays. Once the Government's Chief Counsel, Robert Houghwout Jackson,* tried to prove that Mr. Mellon had bought stocks by way of the famed...

Author: /time Magazine | Title: TAXATION: Rich Men Scared | 3/11/1935 | See Source »

...private secretary, Howard M. Johnson, a frail, grey little man seated pale and trembling behind a stack of ledgers and account books. In the handsome, high-ceilinged courtroom, with only a scattering of typical courtroom loungers looking on, Mr. Mellon sat each day at the counsel table beside Lawyer Hogan. Mostly he seemed bored and restless, glancing often at his chainless watch, appearing to doze off in the late afternoons. Once a young bailiff caught him smoking one of his pencil-thin cigars in the courtroom during recess...

Author: /time Magazine | Title: TAXATION: Rich Men Scared | 3/11/1935 | See Source »

...witness stand. Secretary Johnson had testified that he himself prepared his employer's 1931 tax return, that, in the confusion of his departure for London as Ambassador to the Court of St. James's, Mr. Mellon barely glanced at it, did not swear to it. But Counsel Hogan announced that when he took the stand Mr. Mellon would assume full responsibility for the return...

Author: /time Magazine | Title: TAXATION: Rich Men Scared | 3/11/1935 | See Source »

...week's end the Government finished cross-examining Secretary Johnson, turned him back to counsel for Mellon. For two and one-half hours, face flushed and eyes snapping, Lawyer Hogan peppered the Government's charges and innuendoes with crackling sarcasm and Irish wit. But when the fireworks were over the only memorable fact to stand revealed was that in 1931 Andrew Mellon was worth some...

Author: /time Magazine | Title: TAXATION: Rich Men Scared | 3/11/1935 | See Source »

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