New-York tribune., 1920-09-07
Williams Silent
On , Seizure of
Kerr Co. Millions
Treasury Department Also
Withholds Comment ON
Hartman Shipping Deal;
$4,9QO,OOO Taxes Held

From The Tribnne's Washington Rurcnu
WASHINGTON, Sept. 6-Until the
entire proceedings by which the Fed
elal Treasury authorities seized $4,9OO,-
600 shortly after it was turned over to
II. Farquharson Kerr and Alfred E.
Clegg, of the Kerr Navigation Corpora
tion, in the Chase National Bank at
New York by the Hartman interests
are completed, comment on the mys-
tcrious transaction will not be made
by the Treasury Department.
Internal Revenue Collector Williams,
who directed the Federal income tax
agents in New York to seize the money,
declined tonight to break the silence
which has been maintained by i'm since
news Of the seizure became known.
81 will not discuss the case or any
of its phases" Mr.. Williams said to-
day.
1t is understood that Commissioner
Williams is awaiting a detailed repor.
OF the seizure, which grew out of a
precaution on the part of the Treasury
ottlc alS when it was learned that Kerr
and Clege were about to leave this
country
The seizure by the government is
one of the developments of the acqui-
sltion by the Hartman interests Of
the Kerr Navigation Corporation, 1t
was arranged that the two principal
stockholders in the ccrporation-th
president, Mr.. Kerr, and the vice-pres-
dent, Mr.. Clegg were to transfer their
share control to the Harrmans-rep-
resentinc $4,000 sharcs-for a cash
consideration of 500 a share.
It was said that the purchase price
of s4,9o0,ooo was actually paid to Kerr
and Clcgg, or agents acting for them,
across the counter of the Chase Ma
tional Bank. More than week ago,
it is said, agents of the Internal Rev
enuc Division Of the United States
Treasury were at the counter when the
money changed hands, and it was no
sooner paid to the authorized payees
than the government agents formally
demanded possession Of it in the name
of the Treasury.
1t is understood the profit amounted
to $50 on each share of the Kerr Navi-
g*tlon Corporation, as the original
cost to Kerr and Clcgg is said to have
been only so. The Harrimans paid
them 500 a share for their holdings.
The government seizure was explained
rs necessary measure TO assure q cor
rect accounting under the excess
plotits tax laws.
Through civil proceeding the gov
crnmcnt will atto:nnt to collect $4,000
600 as an excess profit tax on the sale
Of tho Kerr stock. according to Will
lam Edwards, Collector Of Internal
Revenue.
Mr.. Edwards said at the Hotel Com
modorc last night that the government
understands Mr.. Kerr and Mr.. Clegg
made 500 profit on each of the $4,000
shares sold to the Hartman interests.
The governmental tax on the entire
profit would be about so per cent, he
said.
az know nothing about the details of
the seizure" Mr.. Edwards said. at
was managed from Washington. All I
know is that the money was taken, and
it probably will be held until the case
is settled in court"
None of the men mentioned in the
sale of the Kerr stock to tho Harri-
man interests could be found ycster-
day. At the summer home of II. Farqu-
harson Kerr at Summit, n. j., it was
said he was out of the city. Alfred
+. ClcGg was not at his home, 10+
Eighth Avenue, Brooklyn. w. Averill
Hrrr;inan, president of the American
Ship and Commerce Corporation,
owned by the Hartman interests
which acquired the Kerr stock, was
cut of the city, it was said at his
home, 1885 Park Avenue