Daily Kennebec journal., 1908-12-26
Standard Oil Bank Ski|fu||y
Evades Its Taxes.
Buys Building From Uncle Sam
But Retrains From Taking Title.
Leases Property Back to Govern.
ment.-.Saves $4,000.

New York, Dec 25.-Comptro.ler
Metz, on the ruling of the corporation
counsel, has cancelled the 1907 taxes
and assessments against the National
City Bank for it's cid custom house
property bought from the governm ent
in 1899. .-e,. ia -~.- fyse
This item of nearly $4,000 brings
the total Of taxes the Standard Oil in
stitution has kept the city out of in
eight years up to 100000. The prop
erty is worth s7.00O.000 and stands on
the tax books at a valuation of $5,000,-
900 for the site.
When Lyman j. Gage was secretary
of the treasury in 1899 and Frank A.
Vanderlip was first assistant, the Ia
nous building at Wall and William
streets was sold to the Standard Oil
Bank for s3,265,OOO The act of Con-
gress authorizing the sac declared that
the proceeds must be deposited in the
national treasury.
The proceeds were not deposited in
the treasury, but were deposited in the
National City Bank by the treasury de-
partment and drew no interest The
treasury department Immediately en-
tered into lease for the premises and
paid the bank a rental of $130,000 for
eight years. Because final payment
of $4,000 on the purchase price was
not made until Nov. 16, 1907, title re-
mained with the government and the
property was exempt from city and
state taxation
How much the bank has really paid
for the property the public will never
know exactly.
BY withholding $4,000 on the pur
chase price, thus leaving the title in
the name of the government, the city
of New York was prevented from col
lecting taxes on the property, which
actually belonged to the National City
Bank. In 1906, two years ago, Comp
trOller Metz and the officials of the
department of taxes and assessments
decided that the bank had lodged its
taxes long enough and 1t was put on
the tax books for 1907 at a valuation
Of s5,000000 for the land and 100000
for the improvement-the building.
The tark claimed exemption from
taxation on the ground that it had no
title to the property previous to Jan.
/, 1907. 1t is this tax Of $4,000 which
the comptroller has just been forced to
CdHtel Il VI lHlS year, lloNeNtl, tilt
hank will have to pay.
1t is understood that the tax de-
partment consented to wipe out the
S500,0 900 but insisted on retaining the
valuation of the site at s.. 900. Many
real estate experts assert that it is
worth so per cent. more than that sum.
Last January Representative Fitz-
gerald of Brooklyn made an Intellectual
effort to have Congress probe the scan
dial. He introduced resolution calling
on the secretary of the treasury for all
Information in his possession concern
ing the exact status of the deal The
resolution set forth that though the
government paid an eXorbitant rental
for the building from the very day it
was sold to the bank the title still re-
mained with the government.
We had no option in the matter"
said Comptroller Hetz yesterday in dis
cuSsing the cancellation of the 1907
taxes. 1.-The corporation counsel told
us that we could not tax the custom
house as long as the title was vested
tr the government. I've got the sigma
ture of Vice President Cavanaugh now
to an application in which he says the
bank became owner of the property in
November. 1907 and they will have to
nav the 1903 taxes"