New-York tribune., 1919-07-12
$958,996 Is Taken From
Departing Aliens in g.
Month Drive of Federal
Agents i'm New York Alone
Other Shortages Revealed
fyomeward Bound Ameri-
cans and Seamen Are
Caught Far in Arrears

Daniel L. Porter, supervising Inter
nal Revenue Agent for the port Of
New York, declared yesterday that a
leak of millions in income tax returns
had been revealed in delinquent drive
aimed at the tide of emigrant aliens
now rushing from the United States
as fast as passage and passport reg
ulations will permit.
The drive has brought to light other
rich sources of revenue, not only from
the uniformed alien class, but from
wealthy American citizens who lived
abroad during the war and attempted
to dodge the tax. Another lucrative
vein was discovered among hundreds
of merchant ships crews, many Of
whom are liable to tax because Of in
creased marine pay.
The campaign has netted approxi-
mately $1,35O0OO in returns to the
Federal government since April 2,
when the army Of aliens began to
clamor for passports. The drive in the
greater city is in charge of G. A. Hen
neke, in the Customs Building, and
has been yielding a return Of $4,000
day. A similar campaign is being
carried on in every port of embarka-
tion in the United States.
All Delinquents Penalized
Taxes collected are chiefly for the
year Of 1918, but the departing aliens
pay for every day Of 1919 they stay
in this country. Going back on the
calendar, aliens must pay delinquent
taxes to 1916. American citizens must
make good taxes due from the original
income tax law. Every delinquent is
penalized.
Daniel c. Roper, Commissioner of
Internal Revenue, has ordered every
available worker in the department to
assist in the drive. 1t was explained
that officials had felt leak in the
system, but were unable to place it..
Search had been carried on by ex-
perts. The aliens were checked up,
but not until thousands had been COM
PEELED recently to comply with the
passport regulations was the loss def
initely located.
During the fiscal year Of 1919 there
were 1882 passports issued in the
Port of New York. Officials estimate
that at least rs per cent of these were
aliens. Virtually all state in their ap-
plication that they desire to remain
that 131 900 aliens left the port during
the year.
Average "Nest Egg $4,000
Revenue agents estimated yesterday
that the average "nest egg" removed
from this country amounted to $4,000.
Pre-war estimates ranged from $4,000
to $4,000 for each returning alien.
Most of the savings are turned into
change rates and sent over in drafts
by steamship agents and foreign
branch banks here At $4,000 for each
alien, the amount carried from the port
of New York would total more than
$S94,o0O,o0o for the fiscal year 1919.
Since the delinquent drive began, the
three months show that 3S,363 aliens
defaulted to the sum of $958,996.
Startling revelations in defaulting
by American citizens, discovered in the
three months drive, show some dodg-
In three months Oil American citizens
have defaulted to the sum of $3O3, ,79O.
Penalties of so per cent of the tax
due for 1917, and 25 per cent of the ta,.
defaulted in 1918 have been added to
the amount collected from every de-
linquent.
Consulted" With Consul
The general excuse offered by these
delinquents was that they were living
abroad and had Consulted" with the
American consul. Revenue agents de-
clare that among them are many promi-
nent business men who were reaping
profits during the years of the war,
both in the United States and abroad.
The total Of delinquents reported
for the three months for the port of
New York is 1924 and the amount
recovered was $1262,788