Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1924-03-21
Former Chief Tells of Tenta-
tive Additional Tax of $685.
100000 Later Reduced by
S1S,000,000 Nj a de Big
Money After Leaving Bur-
eau - Standard Oil an d
Others Good Paying Clients

Washington. March 20-Testimony
regarding a $4,000 900 tentative ad-
ditional tax assessment against the
Standard Oil Company which was
later reduced by S1S.0O00O0. came
out today during the examination by
the senate committee investigating
internal revenue bureau of E. J..
Rossmoore, former section chief in
the bureau and now a chief tax ac-
countant before the bureau with the
company among his clients.
Senator Couzens, Republican,
Michigan, brought the matter up
when he called Rossmoore to the
stand. first mentioning $1,000 as the
amount to which the assessment was
reduced. Subsequently, however. he
said the reduction had amounted to
$lS. 100000.
In additional assessment was pro-
posed TO the bureau by Field Agent
Gurenson of the bureau, the pro-
poSal involving a number of compli-
Gated tax questions including that of
the allowance to be made on the
company's property for depletion"
Gnrenson Rossmoore. said. was now
In his office in New York after hav-
ing resigned from the bureau. The
committee did not go'into details of
the case but determined to ask the
revenue bureau to submit report
on the matters involved in the reduc-
ton, il the revenue commissioner
believed he could make the report
under the law requiring secrecy as
to tax returns.
Rossmoore, who said he was now
under charges before the bureau In
volving the possible improper use
made by him OF Information obtain
ed while employed in the bureau.
said he did not care to take that per-
sonal question up before the commit
tee as he had already filed his an.
swer with the bureau committee. He
said the answer was q denial of the
charges.
Senator Watson. Republican. In
diana, chairman of the committee.
asked the witness If he cared to say
whether any OF the tax cases in
which he has been engaged since his
retirement from the bureau had
PASSED over his desk while he was
still a government employe. IT was
at this point that Rossmoore ex-
pressed his 0eSiIS HOl " tdht up tIdl
Question.
iRossmoore also said he was en-
ployed by the Fulton Bag Company
Of New York which had protested
5000 900 tentative increase in as
sessment that later was reduced to
100000. This company and the
Standard Oil Company. he added,
were among the ten clients before
the bureau he now had.
Explaining his employment by the
Standard Oil Company, the witness
said that when he resigned from the
bureau in 1919 after two years SER
vice, he was rendered n contract to
take accountant work for the Stand
ard Oil after having refused, sal
AIRED position with the company.
The contract yielded him $4,000 a
year for three years.
Senator Counzens pressed the wit
ness to say what he was now earn
ing after having brought out the fact
that Rossmoore received $4,000 a
year as a section chief of the bureau
when he resigned. The witness re-
piled he was willing TO state hia in
come. first saying that If his govern
ment salary had ben increased to
$500 a year he probably would
never have left government employ
to begin private practice.
Il have averaged $4,000 year for
the last four years." he said
II had heard that it was 5000, 900
n year" commented Senator Couz-
ems.
Taking up the Fulton Company
case. Senator Couzens asked what
fee the witness expected to get in
the. matter. Rossmoore replied that
the matter was not settled as yet and
his compensation had not been fixed.
He assented, however. to Senator
CouZens' suggestion that it might be
as much as 100000"