Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1916-05-02
RYAN TAXES NET
STATE S236,074.13
Fee Officers Get $36,343.2O for
Their Services-Balance
Goes to Schools.
FULL SETTLEMENT is MADE
Largest Single Payment Ever
Received by State-More Than
Double Cost of New System.
FULL SETTLEMENT is MADE

State Auditor Moore received from
! Treasurer John r. Fitzpatrick, Of Nell
! son County. yesterday a check for
| s236.o74i3 in full payment OF back
taxes owed to the Commonwealth by
| Thomas Fortune Ryan. the millionaire
| Now Yorker, who maintains his legal
residence In this state. 1t was the
/ largest single check in the payment Of
! the State taxes OF an individual re-
/ ceived In the history Of the Auditor'E
! Office
The promptness with which the set
| ticment was effected was attributed in
large part by state officials yesterday
TO tho limited assessment act of the
last General Assembly. which definite
| ly, declared the States policy not 70
assess for omitted State taxes beyond
| s03. and not to allow localities to go
| beyond the year 1912 In assessing
property which had escaped taxation.
Examiner Drummond Of the Twenty
ninth Circuit, began work on the Ryan
assessments In 1915. after the adjourn
ment OF the special session. With the
! assistance of Attorney John L. Lee. OF
Lynchburg. he delved far back into
the records of the Ryan holdings, as
sessins for the first time millions of
dollars worth Of intangibies not pre-
viously brought under taxation.
WAS IMPORTANT ISSUE
! BEFORE LEGISLATURE
The collection Of the Ryan taxes was
one of the issues that figured in the
legislation of the General Assembly of
1916. II was charged repeatedly that
the limited assessment net was framed
| TO protect Mr. Ryan and other wealthy
| citizens against being assessed for
| omitted intangiblcs for indeterminate
terms. On tho other hand. it was
| pointed out that law of this kind
was essential to tho successful appli-
| cation OF the tax on intangiblcs, since
II the threat OF an indeterminate term
assessment WAS held over the heads
of owners OF intangibles, these would
have every incentive 10 pursue the
policy Of conccalmcnt Those who held
| this view were in the majority, and tho
! law was PASSED.
Although the act will not be In effect
until Juno IS, Mr.. Ryan has antici-
pated II. and has made fun settle
ment with the treasurer OF Nelson
County He became Il citizen OF vir-
ginia in 1903. and was in tina, year
for the first time assessablc upon his
| intangible personal property and in
| come.
| The assessments against Mr Ryan
/ for omitted State taxes covering the
years 1905 1914. inclusive, upon
! intangible property and income,
amounted TO S2d5.025, and the assess
ment OF State taxes against him for
the year 1915 on the same subjects,
! amounted 10 S56.250. making q total OF
! $30l.275.
FEE OFFICERS DRAW
| s36.3t3.:O FOR THEIR WORK
! The total cost OF making the assess
nents was S%b.i23.51. and the commits
sion paid for collecting the states taxes
was slo.9la.63--a total Of S36,3I 20
which tho Commonwealth paid ont to
collect s3ol,2I5 from Mr.. Ryan in
! omitted taxes AS piece of State
financiering. the transaction is perhaps
| without parallel I'm the Common
wealths history. The net revenue TO
the State from the whole proceeding
IS s:64.s31.So. With the execution of
that portion which by law is devoted
TO the payment of pensions. the entire
amount will be applied to the support
| of tho public free schools
| In addition to paying this sum 10
the State, Mr.. Ryan. under the Same
settlement, paid to Nelson County
omitted taxes amounting to s1oo.125,
covering the local assessments on
omitted intangible personal property
and intangibies for 1912. 1918 and 1914
Examiner Drummond's commissions for
collecting the State taxes amounted to
$2o.6f9.i2 Mr.. Lees compensation will
come from this amount and is matter
entirely between himself and Mr..
Drummond.
RYAN'S CONDUCT IS HELD
UP AS AN EXAMPLE
At the states accounting offices yes
terday Mr.. Ryan's straightforward con-
duct throughout the whole tax contro-
versy was held up as an example for
other citizens OF Virginia TO follow.
From the beginning he made It clear
that he desired to be treated as all
other citizens of Virginia are treated
and authorized his Virginia agents to
give the investigating tax officers free
access to all records. With the assess
mcnt made and the question of the term
or back assessments settled by the
Legislature. prompt payment followed.
The collection OF the Ryan taxes. II ia
believed. viii encourage individuals all
over tho state 10 make full and fair
returns or their omitted intangibles In !
the knowledge that henceforward the
state VIII play no favorites. Examiners
OF records In all the districts. under
the amended law making them answer
able to the State Tax Board, will be
compelled to enforce the law Thoroughly
and impartially. and large revenues arc
expected to flow into the State Treas
ury from intangibles brought thus un-
der taxation for the first time.
ontii the creation OF the first short
hVed TAX Commission by tho Legisia-
tnre OF 1910. little active effort. WAS
made to bring to light intangible per-
sonal property which the owners had
omitted to declare. Most of the
revenue from this source was derived
from the taxing of fducIary property
uncovered In the settlement Of Estates. |
with the first Tax Commission In |
1910 began tho movement which cu,- |