The Lake County times. [volume] (Hammond, Ind.) 1906-1933, 1922-11-07
|. s. LOSES
HUNDRED
BILLION
PrOfiteers to go to Jail it
Is Announced Once
More
BY w. H ATKINS.

ESTAFF CORRESPONDENT /. N. SERVlcEl
WASHINGTON, Nov. THE gov
eminent has been defrauded OF more
than $100.00O.0O0 through the fall
ure OF war prohteers to pay excess
profits taxes and the evaders will
be compelled TO settle in full the
back taxes due or go to jail. 1t was
apartment today.
Munitions manufacturers and
makers OF other necessary war sup
plies needed by the government
during the war with Germany
were said to be among the chief
offenders in this tax Stacker class.
The campaign OF the treasury
through the bureau OF internal rev.
enue TO round UP tax evaders has
brought to light amazing in
stances of tax lodging, but has
revealed information which will be
made the basis OF criminal prose-
cution by the department of JUS
tic4 of individuals and concerns
now showed to have charged the
government unJustifahle prices for
war materials.
The tax drive has opened up
fresh avenues OF inquiry through
which officials predict enormous
sums OF money paid out loosely
upon war contracts can be re-
covered by the treasury.
The extent OF tax lodging by
war prohteers was not fully known
until a recheck was made OF the
audit or 1917 tax returns. in con-
nection with the attorney gener-
ais probe OF war department and
shipping board contracts. Returns
for 1917 as well as 1918. years in
which individuals and concerns.
suddenly amassed wealth in war
material calls. showed that in hun
ireds of cases deliberate attempts
were made to tasty returns.
In a group Of fifty or more cases.
war contract concerns, each are I'm
debted to the government IN sums
ranging from 100000 up to ST.
100000. In a fewer number of
Eases the tax internal revenue
bureau. rushing ahead with its
,lean up OF such cases. is adding
1aily to the evader list. and It may
De weeks DtlOIS the LCAd4 sum- az
ually recov arable in the frauds is
officially ascertained.
Juggling Of ledgers by the evaders-
officials declared. probably viii pre-
vent the government from recover
ing maximum sums which should
have justly been paid into the treas
lry The liability OF some OF the
orofiteers may be increased by later
disclosures, probably by court act
ons In various districts. In this
,lass Of cases officials have con-
.ronted stubborn opposition by well
paid counsel of the alleged offenders,
n all attempts to force production
II valuable records. which are ither
destroyed or carefully concealed. In
great number Of cases large pay
nents to the government hinge upon
Inc Interpretations as to the deduc-
.ible nature Of certain profit items.
The revenue bureau has ruled against
many such claims. and will resort to
he courts Il necessary to force pay
nent. In some cases. many OF them
involving huge sums, II is indica-
ed that tax payers will elect to set
lie with the government, rather than
'isk the danger Of complete exposure
II a criminal court trial.
Officials were not privileges to dis
Iose facts in more specific detail
'egarding the more fragrant cases Of
ak evasion, because of certain legal
prohibitions observed pending final
adjustment. Details in many Of the
.ases may be reserved for grand
ury IN expected actions where's
criminal provisions of revenue laws
ire involved.