New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-07-21
DernEpseySavil
$4,000 Car Runs
Intosl2,OOOTax
Income Expert Notes Claim
of Champion That He Is
New Yorker and Finds
Fighter Owes State q Bill
Also Subject to a Fine
Records Show Boxers Train
of Friends All Affirmed
He Had His Home Here

Jack Dempsey, heavyweight cham
pion, in his desire to save his $4,000
automobile from the clutches Of lti-
CANT, after it had been levied upon, ap-
parently has walked into the jurisdc-
ton of the state income tax bureau
OF this city, so that instead of losing q
$500 car he has made himself liable
to state income tax for the year of
1920 of approximately double the value
of the car, or about $4,000.
Dempsey no longer is resident OF
the State of Utah, but since last fall
he has been legal resident of the
state, county and city of New York.
AS such he will be subject to a state
s tax on his income.
Dempsey's predicament is due to the
yea! of his lawyer, Frank Mccoy jr
of 1880 Broadway, and his manager
Jack Kearns, who rushed to his aid the
first week in July, when the champion s
automobile was attached. William
Building, brought suit for his client
as Spellman's share in contract by
which he was to get a certain per-
centage of the profits from film pro-
duction, Daredevil Jack
Tax Expert Gets Busy
Klein, proceeding on the assump-
tion that Dempsey was a nonresident,
levied on the pugilist's automobile, but
when he tried to tie up the fighter 5
bank account he discovered that Demp-
sey had shifted things so that there
was nothing on which to levy. All
this came out in hearing before JUS
tice Finch OF the Supreme Court.
Afhdavits filed in behalf of Dempsey
and kearns, his manager. came TO the
attention of Niles r. Becker, district
director of the New York State Income
Tax Bureau. Mr.. Becker had training
as tax expert under Mayor Mitchell.
against Dempsey for his failure to
make return on his income to the tax
ing officials. of tie state. Before the
close of the day Mr.. Becker had sup
piled his bureau with copies of af-
fidayits concerning the residence of
Dempsey and Kearns
On July Z, 1921, Kearns made af-
fidavit that both he and Dempsey were
residents OF the city. county and state
of New York, and had so been for the
last preceding year. kearns said that
he acted for Dempsey. who personally
would have made affidavit but for his
absence in California, and that Demp-
sey would make the necessary affidavit
concerning his residence on his return
from the Pacific Coast, which would
be soon.
Too Many Friends
Other friends of DEMPSEY made Aft
davits concerning his New York resi-.
dence. William Farnsworth, Of Will
liam Randolph Hearst's New Yorl
Anerican; Joseph Woods, manager OF
the. Hotel Belmont; Arthur O'Connell
assistant manager CT the Hotel Bel.
mont; George (Tex) Richard Va
O'Farrell, Harry s. Heckheimer, JOSEPH
Damon, director Of circulation of The
New York American; Hugh Murray
manager of The Star Publishing Com
pany William f. Hearst's corpora
tom; William H. Hicks, sporting edi.
tor Of The New York Evening Journal
and Sid Mercer, of The New York Eve.
ming Journal, turned in affidavits set
ting forth that Dempsey and Kearns
arc legal residents here
Mr. Becker discovered that on No.
venber Is. 1920, a contract was made
between the Madison Square CARRIER
Sporting Club and Jack Dempsey, Of
New York City in connection with the
DHn1psey- Brennan fight on December IA
1920, by the terms of which Dempsey
was to get. 100000. This contract wa.
signed by Dempsey as resident Of
the City of New York.
Apartment Leased
Mr.. Becker and his men found al
assignment dated December 7, 1920
not h g
Kearns, resided at 229 West Ninety
seventh Street. This assignment Sc
forth that Dempsey's share from The
proposed Dempsey-Brennan fight we
TO be transferred to the Dempsey ant
kearns motion picture enterprise.
Another exhibit fixing Dempsey anc
kearne as residents is RECORDED
lease of an apartment at 119 Yves
Seventy Street between Lol
Scatcherd and Jack Kearns, in which
Kearns deposes that he is residen
OF New York City. The lease bear
date of April 6, 1921
Another assignment, dated Decembel
20, 1920, signed by Dempsey an,
Kearns, concerning money to be as
signed to the Dempsey and Kearn
motion picture interests, fixes thei
residence as 229 West Ninety-sevent}
Street.
Another filed contract on October 81
1920, between William A. Brady ant
one Cochran, an English sportsman, OF
the one hand. and Kearns and Rckart
on the other, gives the residence O
Dempsey and Kearns as New York City
Substantial Fine
In connection with the residence dat;
Mr.. Becker's bureau finds that Demp
sey received 100000 from the Demp
sey- Brennan fight, and his income from
the Dare Devil Jack" film is estimate,
at $4,000 for the taxable year of 1920
Dempsey's 100000 from the Dempsey
Carpenter fight and his other incom,
for the year 1921 will be taxable fo
the current year.
An examination Of the records fail
to disclose any return for the year 1925
made by Dempsey or Kearns. Not hav
ing paid any income tax within sixt,
days subsequent to April /, 1920, an,
not having obtained an extension o
time, both Dempsey and Kearns ar
subject to fine equal to the amour
of the unpaid tax, which, in Dempsey
case. as alreadp noted, will probably
reach total of $4,000 and interest.
In one of his affidavits Kearns de
posed that Dempsey did not pay take
in Utah and never had voted there.