Every evening, Wilmington daily commercial., 1922-01-31
ALFRED l. DU P0NT SEEKS TO
STOP GOVERNMENT COLLECTING
$l,576,0l5.& IN INCOME TAX
As Owner q 7s534 Shares Of Stock Of du Pont de
Nsneur 1 Co., He Has Filed Suit Against Collector
Harry !. Graham IN U. S Court, Holding That The Pro-
posed Collection Illegal and Without Warrant Of Law.

\ hill " complaint WAS illcd In tn.
united States District Court ycs,cr-
ah' AFTERNOON h, Alfrcd l. du pont
AGAINST Harry r Graham. individu-
any, and as iAit.d States collector OF
Internal revenue for the district OF
Delaware. r,ayinx Tor an Injunction e.
cn'or the collection ~ ti.aia.ois.SG. OF
an, Part thereof ma or Tor income tax
''' the yea, 1915, and for further and
scncnl relief considered iust and
rauitahe hy the court
The application i- made by William
A. ,ilarsow, ir, Henry 4. t,rown and
Nnhrit tcninrion as counsel
The atildn,it. which extends to %
ure~iiitrn pages. sr,s forth that the
retulpno, IN the owner of 1894
shares ~ the common stock of T.. I.
a~-l'"n, 4. Ncmours a Co, and re-
elites 40 lenn'h tn, conveyance 20 that
en'nn,s',on, on October I, 1915. by tn.
y. |, du ront dc >emcurs Powder
Go uf New jer~e, incorporated IN
lnnal uf all of its assets Go the Della
ware company. Hts holding of the
common stock of the New Jersey COM
pan, II stated Mt ar,1s7 shares. for
which he received 7S.tsi shares ~ the
common stock ~ the Delaware com
ranN of the par value of tipo per
share,
On March 4. 1915. m making return
90 total net income for tho calendar
Nfnt 1915. he attached a statcmcn,
Va writing fully s-tting forth the en-
TIE transaction under which he re-
c"iNrd ih. fh,sat shares OF common
stock of the Delaware company. and
protesting against the inclusion oi
said stock in his income tax for said
yoaf." 1914.
Tho entire tax Cor which sf'iant was
'inhl" h, reason of net income for ialh
II declared to have been paid by him
cn tame IA. 1918.
Procedure of the bureau of Internal
Revenue on -c,crsl theories on the
question OF liability 10 incone tax on
THE stock 10 noted. including the de-
msnd FOR payment on January 2i,
iasu, bss~d on the t~sis that the dis
tflhuticn OF tho common stock of the
relrwar~ company WAS q property
di,Istv ne. ana that lts fair mar r,
value ON u.tot~r I. isib was ssa- so
ret SHARE, based on the private sale OF
is shares on that date.
"Details of tn. vase of phclll- vs.
tnlled states are quoted ~ length.
The claim IL nnaliN made. under
snnt separate heads. that In making
demand Tor the sum of ti,51s.oi5.Se
~ an additional income tax for tbs
reat 1918, me commissioner OF In.
'rfnal Revenue acted unlawfully. n.
...A 4sItk - L.. b
II the Collector ~ Internal R.vcnu.
Zoe the District of Delaware ls nsr
permitted io collect the tl516.o15.s,
49, snd fnr IA. additional income tn,
against AfNant for the year 1914, tha
rn,sn' by IN. dcla, of tho Commission
~ ~ Internal Revenue In ssscssln.
and collecting such tax. ihc amour
whereof - IN excess of that propcrl,
due. 10 not permitted under the pro
Nisions of tn. lsw set forth 60 nj,
With the commissioner n claim for re
'und uf m. excess smpun, of sal,
iss prup.rl, due. In that more thar
n,e wears have elapsed since the dat.
when the r.'npA wNr duo and tina
'he temporary Injunction j. aske,
fct this and other reason
WaAe rrscr Okbs~tlon.
Incidentally, the affidayh states tina
When this plan ~ financial reorgan
lyStlpn wAs proposed 10 IN" stochhold
ere ~ the New Jersey company the nj
nan, objected thereto on the ground,
nnicns others, ,ha, GA. there was n
str.s-,', or occasion FOR such rcorgan
Continued on page 4.