Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1916-05-02
Fee Officers Get s3e, ,34s 20
For Their Services
in Case
A FULL SETTLEMENT
Largest Single Payment Ever Re.
ceived BY state-More Than
Double Cost of New System.

Richmond, May 2--State Auditor
Moore received from Treasurer John
T.. Fitzpatrick, of Nelson County,
yesterday check for $2S6,O74.13 in
full payment Of back taxes owed to
the Commonwealth by Thomas For
tune Ryan, the millionaire New
Yorker, who maintains his legal resi-
dence in this State. 1t was the lar
gest single check in the payment of
the State taxes of an individual re-
ceivcd in the history of the Auditors
office.
The promptness with which the set
tlement was effected was attributed
( in large part by State officials yes
terday to the limited assessment act
of the last General Assembly, which
definitely declared the States policy
not to assess for omitted State taxes
beyond 1903 and not to allow loca-
lites to 60 beyond the year 1912 in
assessing property which had es.
capped taxation.
Examiner Drummond, OF the
Twenty-ninth Circuit began work on
the Ryan assessments in 1915, af-
ter the adjournment of the special
session. With the assistance of At
torneXs John l.. Lee, of Lynchburg,
1 he delvcd far back into the records Of
the Ryan holdings, assessing for the
first time millions of dollars worth of
intanglbles not previously brought
under taxation.
The collection of the Ryan taxes
was one of the issues that figured in
the Legislation of the General AS
sem bly, of 1916. 1t was charged re-
PEE &tedly that the limited assessment
ar was framed to protect Mr. Ryan
Ind other wealthy citizens against
being assessed for omitted intangi-
blcs for indeterminate terms. On the
other hand, it was pointed out that
q law of this kind was essential to
the successful application of the tax
on intangibles, since if, the threat OF
IAN indeterminate term assessment
was held over the heads of owners OF
intangibles, these would have every
incentive to pursue the policy of con-
cealment. Those who held this view
were in the majority and the law was
passed.
Although the act will not be in eft
feet until June 18, Mr. Ryan has anti
cipated it, and has made full set
tlement with the treasurer of Nelson
County. He became a citizen of Vir-
binia in 1904, and was in that year
for the first time .assessable upon his
intangible personal property and in,
come.
The assessments against Mr. Ryan
for omitted Stateataxes covering 1he
: years 1904 and 1914, inclusive, upon
intangible property and income
amounted to $245,O25, and the assess
ment of State taxes against him For
the year 1915, on the same; subjects,
amounted to $56,250, making total
of $3Ol,275.
The total cost of making the as
sessments was $25,423.57 and the
commission paid for collecting the
States taxes was $10,919. .63-a total
of S36,S43 20 which the Common
wealth paid out to collect S301,2 ,275
from Mr. Ryan in omitted taxes. The
net revenue to the State from the
whole proceedings is $264.931 80. (.
With the exception of that portion
which by law is devoted to the pay
ment of pensions, the entire amount
will be applied to the support of the
public free schools.
In addition to paying this sum tc
the State, Mr-Ryan, under the same
settlement, paid to Nelson Count,
omitted taxes amounting to $lo0,125
covering the local assessments o.
omitted intangible personal propert
and intangibles for 1912, 1913 an
1914. Examiner Drummond's com
missions for collecting the State tax
es amounted to s20,649. AZ. Mr.. Lee
compensation will come from thi
amount, and is. a matter entirely be