The Cambria freeman. [volume] (Ebensburg, Pa.) 1867-1938, 1875-09-24
IAn Astounding Disclosure.

readers of the PATRIOT, that 1t snOuN
tp understood that in Pennsylvania
the State tax on loans is, by authority
of law. deducted from interest paid to
bondholders by the corporations lssn-
ing the bonds; and that it is the duty
of municipal corporations, through
their treasurers or other officers, 10
make an annual sworn leturn OF the
loans due by such corporations TO the
Auditor General of the State, who, upon
this data, makes up the quota OF otaie
tax. The penalty for violation OF
this duty is $4,000 fine and prosecu-
ton for perjury. Thepenalty incurred
nv the late Auditor General of the
State wa. impeachment, during his
term. had the fraud been discovered,
and prosecution for misdemeanor.
REPORT OF THE CHAIRMAN OF THE FL
NANCE COMMITTEE OF THE CITY OF WILL
LIAMSPORT.
In the matter of the state tax on the city
bonds of the city of Williamsport lhe
nncie, signed chairman Of the city council OF
said CITY. in behalf of said city council,
makes and presents to the auditor general
of the commonwealth che following allega-
tions of fact in relation to said bonds, and
The state taxes thereon assessed by the
ermn,onw wealth and paid by the treasurer
Of said city, and also the namea OF the par
ties by whom said facts can be proven
First. The tenth section Of an act OF as
sembIy approved March 21, 1857. author
lied the corporate authorities OF the city of
yilliamSpors to issue bonds not exceeding
$500, ,OO0--P L., page SIG.
Second. Under the pretended authority
4 &. &c 1y ri
proceeded to issHe coupon bonds to the
amount of $645, 900, of the da:e of Septem-
ber l. 1863. aud having twenty years to run
This can be proven by VIM. +. Logan, ex~
mayor.
Third. All Of these bonds except the sum
of $1,000 o-cre issued 10 citizens IT Penn
sylrdnia. principally to Peter llerdic. This
can be proven by DR.. VIM. F. Logan, ex>
mayor. and Hiram Nudge, ex~treasurer,
both of the city of Willamsport.
Fourth. The amount of these bonds out
s,ar.Iing in 1873 was S619, 900, and in 1874
SGlj, 600. This can be proven by ex>treas-
urer Hiram Mudge, by the treasurer, VIII
liam n. Jones, by D. B. Else. and also by
the report of the city auditors for 1878.
Fifth. The city treasurer for 1878, in
stead of returning the true amodnt OF bonds
returned the amount as $685.
600, upou which basis the state tax was
levied and paid.
Sixth. ID. b. Else, the said city treasurer
for 1873, when paying the coupons, retained
from the bondholders the amount of the
state tax on al tie bonds Hen outstanding,
and stiil retains it, except the amount paid
over to the state OH the $50, 900 returned as
aforesaid This can be shown by the said
ID. b. Else and Wan. b. Updcgraff, his
deputy.
Seventh. VIM. Y. Jones, the city treas
urer for 1875, made a correct return to the
auditor generals office, of the amount of
bonds outstanding for that year, but was
induced 6y Auditor General
Harrison Allen to change the return 10 $780,
600 and the correct return nas destroyed by
the auditor general in the presence of said
treasurer This can be shown by the said
VIM. y. Jones.
Eighth If direct evidence is required as
to what portion of these bonds are held 10y
citizens of Pennsylvania, it can be furnished
by calling Pearson S. Peterson, of the city
Of Philadelphia. All of which is respect
fully submitted.
S. I. MCCORMICK, Chairman.
CERTIFICArE OF CITY TREASURER.
To the auditor General Of Pennsylvania:
hereby certify that from the best attain
able information existing in the tressurer's
office in the city of Williamsport. there
were outstanding on the first day Of June,
1874, S6l9, 900 of the coupon bonds of the
city of Williamsport, of the issue of Sep
ternber !, 1863; and further, that on the
22d of August. 1914, $1,000 Of said bonds
were redeemed by the commissioners of the
sinking fund of said city, leaving outstand-
ing at the time the sum of S6l5, 900, and
80 returned the amount to the auditor gen
erals Office, except that there was an error
of 81 900 i'm my return, and further, called
on, tha bcy npli al h,,,
or 10, 1879, to adjust and settle any claim
that the state had against the city of Will
Transport, and ,ods induced by the then
auditor general and others TO change my
return to- S36, 600 see return on file in your
office, and i'm doing so acted IN good faith
and had no desire 10 defraud the state of
Pennsylvania, or protect or enrich the own
"rs of said bends. | am, general, with
much respect, WM. y. JONES,
Treasurer of Williamsport
CERTIFICATE OF CITY CLERK.
To tie Auditor General Of tie State of
Pennsylvania hereby certify that it ap-
pears by the report of the city auditors Of
the city of Williamsport for the year 1878,
on file in the mayors office of said city,
that there were outstanding on the 1st day
of July, 1874, S619,00 of twenty year six
per cent. bonds of said city of the issue of
1868. T.. ). LOWE, City Clerk
Seal of the city Of
Nilliamsport.
BY an error of Auditor General Allen
in calculating the three mill tax on the
S36, 600 reported as the total bonded
indebtedness of the city of Williams
port, the State only received $1O.SO
instead of SI0S00, OH a real bonded
issue of over 100000 which should
have been assessed yearly for 81 800
The difference between $40. 80 and ST.
800. of course, either goes into the
pockets of the bondholders who escape
taxation, or of the city treasurer who
makes a false return, or, perhaps, it
may be a source of common profit to
all parties to the fraud. Il is not
matter of so much moment who has
this money which the Attorney General
has authorized the Auditor General to
collect and which will not be lost to