The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1922-11-08
Plan to Collect
Unpaid Income Tax
Government Men to Make In
ventories Of st. John and
Campbell Courtenay

ventories Of ST. John and
Campbell Courtenay
7 Greenville, No. 2.-Government
agents today began the task OF
making inventories OF the property
Of st. John Courtenay and Camp
bell Courtenay, in the efforts to ar
rive at a decision as to just how
the unpaid income taxes and pen:
alties assessed against the two
prominent men is to be collected.
Immediately after receiving SEN
tence from the judge H. H. Wat
kins in federal court yesterday,
where they pleaded guilty to
charges Of evading income tax law.
Campbell, Ashmead and st. John
Courtenay, and Henry Rutledge
Buist, paid their respective fines
with certified checks totalling s26,-
900 and left Immediately for their
homes Campbell and ST. John
Courtenay are still indebted to the
government for their back taxes,
while Ashmead Courtenay and Mr..
Buist have paid their taxes, fed
eral officials said.
SIT. John Courtenay is the only
one who has as yet filed with the
government attorneys a statement
of his total assets and liabilities.
His sworn statement which how
ever has not yet been accepted
as g. basis Of adjustment by the
government lists total gross as
sets of about 1927, 600 with net as
sets of s75, 600. The governments
assessment including to the SO per
cent penalty, amount to s1S4,134.-
So. It is alleged that Campbell
!Courtenay will file a similar state
menr within a few days. His tax
assessment including the penalty
is s194,s26.56.
Government agents will make a
careful survey Of the statements
submitted by the two Courtenays,
and will make their own valuations
Of the property listed, according to
y. II. Littleton, special assistant to
the attorney general, who has
charge Of the case. Mr.. Littletoil
said that it has not yet been de-
termined whether the government
will comr .omise or will sell the
property execution proceedings in
order to collect the taxes.
Mr.. Litt1eton declared that the
government had no wish to entire
ly- strip the courtenays Of Tfleir
property and leave them penniless,
but that unless the authorities at
Washington agreed to compro-
mise this would probably be the
result Of the steps now being TAX
ien. It is the present plan of those
handling the case for the govern
ment to arrive at compromise
which will leave the two Courte-
nays about $4,000 each, Mr.. Lit
Ftleton indicated.
This, however will depend upon
the action at Washington when
the property has been appraised by
the government agents it was said.
The statement fled by st. John
Courtenay gave some inkling Of
the cost OF the case to the four
men concerned, listing attorneys
fees to the amount Of approximate
ly $4,000, and it is believed that
the other three men probably paid
out as much for counsel fees and
accountants, if not more
i Among the liabilities listed by
st. John Courtenay were several
personal accounts.
Most of the other Indebtedness
is for notes due at various banks,
and accounts with stock brokers
and personal bills and accounts.
In recommending the fixing Of
punishment of the four men yes
terday, the government attorneys
stated that the government did not
desire to be Vindictive in the prose
cution. w. r. Belser. counsel for
ST. John Courtenay, told the court
that his client had made a mistake
in his income tax returns honest
ly and that there was no intent to
defraud the government. He said
that Mr.. Courtenay owed a great
deal Of money on the stocks he
held and that at the time the in
come tax returns were being made
he had no money and that the
stocks were fiuctuating in value so
much from day to day that he did
not consider that he had any in
come from that source to return.
He feared, Mr.. Belser said, that
"a drop in the market would wipe
out all apparent profit and that.
as a matter Of fact, the subsequent
shrinkage had more than consum-
ed all Of the apparent profit. He
said that at the time Mr.. Courtenay
had considered that all Of his stock
purchases. were part Of one trans
action inasmuch as his operations
had not been completed.
Mr.. Belser told the court that ct
the time of making out the re-
turn he thought he had perfect
right to disregard the alleged pro-
fit on stocks but that he now real
lied, on advice Of attorneys. that
he should have reported it.