Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1915-10-18
STATE TO PROBE
OMITTED TAXES
Pollard Not Willing to Ac-
cept Compromise in
Ryan Case
DRUMMOND'S BIG FEE
Examiner of Records TO Draw Ap-
proximately $4,000 if Settlement
is Confirmed.

Richmond, Oct. 19.-While John l..
!. Lee, attorney for r. H. Drummond,
Examiner of Records who reports
Thomas F. Ryan, multi-millionalre OF
: Virginia and New York, due the
State sl59,575, in omitted taxes, ex-
pressed himself as satisfied as to the
correctness Of the report. Attorney
General Pollard said that the Com
monwealth would not be prepared to
accept the figures until an invest!ga
tion had been made. This course Wi!
be pursued not only in the case OF
Mr.. Ryan, but in all other instances
where there is reason to believe that
the State has not received its full
share of taxes.
Mr.. Lee, whose home is in Lynch
burg, came to Richmond for a con-
ference with Attorney-General Pol
lard and Auditor C. Lee Moore, as
the representative of the Examiner OF
Records. He indicated that Mr.. Ryan
was willing to accept the report as IN
tangible property and income. omit
ted from taxation for the eleven years
1904 to 1914, inclusive.
When the Board of Review for Mel
son County met to pass on the exam
iner's report, Mr. Ryan's attorney, j.
Tinslcy Coleman, was present and
a;-l,,,cd t. -" I.cs's request that !:
be accepted and certified to by the
board. This was taken to mean that
the multi-millionaire would not con-
test the omitted assessments, under
which he will pay $3339,375 to Mel
son County in addition to $i59,5I5 in
to the State treasury.
II regard the report as complete
and think it should he accepted with
out hesitation,' Mr.. Lee remarked III
discussing the matter, MIR. Lee adj
ded that he had been Informed that
the commissions heretofore made by
Mr.. Ryan in reporting his holdings
for taxation were largely the result
of advice of counsel, who had mis-
taken views as to Virginia's tax laws.
. Attention was also directed to the
, Fact that much of Mr.. Ryan's wealth
is.n1adc up of such holdings as United
States bonds, national bank stock. and
other securities, which are not sub.
iect to taxation in Virginia.
The fee of Examiner Drunmond in
reporting the Ryan omission is esti-
mated at $4,000, It is understood
that Mr.. Lee will be compensated by
the examiner with one-hall this
amount for his services as legal adj
vier. During his Investigations Of the
RYAN holdings. Mr. Lee, said, tnat he
had been met by spirit of fair
ness and that there had been an ear
nest effort to remedy the errors r"ade
in previous assessments.
Acknowledgement Pollard takes the
position that the State cannot accept
anv report without the closest scru-
tinv as TO its correctness. He will in
titute such inquiry regarding the in
tagible holdings Of Mr.. Ryan and
others reported delinquent as the cir
; cumstances may demand.
It was made plain that the Attor-
. nev-General's office would not coun-
| tenance any compromise between ex-
I amirers of record and delinquent tax
2 payers, and that any such agreement
is null and void. At the same time
there is no such thing as "com.
pleted assessment, and the State i:
r not estopped from investigating by
/, the actions of an examiner
The Attorney General reiterated
previous assertions to the effect tha
, he would use all the power vested il
him to protect the interest of the
r State and to see that the State sc
f cured all omitted taxes which are col
t lectible.
. The Ryan report, together with
several others. will he considered b.
t the State Advisory Tax Board thi
4 week.
s