Evening star., 1925-03-10
TAX INVESTIGATION
TO REOPEN MONDAY
WITH MORE CASES
Couzens Says Committee De-
cision Is Not Affected by
His Charge of Revenge.
REVIVAL OF HIS CASE
ASSAILED BY SENATOR
Engineers of Revenue Bureau and
Superiors Clash Over Settle
ments of Gravel Co. Case.

Resumption next Monday of it's in
quiry into tax settlements was deter
mined upon today by the special Senate
investigating committee.
chairman Couzens said the commit
tees decision was made without refer
ence TO his charge yesterday in the SEN
ate that the Treasury was seeking to
discipline" him by re-opening his 1919
tax return.
mat matter was not discussed" he
SAID. our staff has been at work pre-
parlng cases, and will be ready to pre-
sent them beginning Monday. In April
the staff will prepare further cases for
presentation in May before the hearings
finally are brought to an end on June
L by Senate order"
Since the Senate will not be In ses-
sion during the remainder Of the hear
hgs, the testimony given in secret will
not become available to the public until
the new Congress assemblies
Disagreements Disclosed.
Sharp disagreements between vain
alton engineers in the Internal Rev
enue Bureau and their superior OFF,
disclosed in evidence before the com
mittee In the case of the Penn Sand
and Gravel Co. of PHILADELPHIA.
Frank H. Madison, an engineer
took issue with the decision of the
board OF appeals and review fixing
an allowance to that company three
times as large as that fixed by en-
gineers. Whereupon on February is,
1924, S. G. Greenidge, head of the en-
gineering division. wrote to J. II.
Briggs. chief of the non-metals vaIu-
alton section:
Throughout this division at the
present time there seems to be a de-
cided inclination on the part of some
or the engineers to disagree with
their superior officers 1t is my opin-
ion that something must be done TO
curb the tendency of engineers
toward the taking issue with the de-
cisions or instructions of their su-
perfor officers"
Disclosure that the department had
notified him of its intention to re-
examine the tax valuations on fhe
sale to Henry Ford of his minority
stocloholdings. in the Ford Motor Co.
was made by the Michigan Senator
in the Senate late yesterday after, a
following publication eff testimony in
the committee investigation.
Senator Couzens, who said Internal
Revenue Commissioner Blair had per-
sonally presented to him written mo-
tice of the Treasury's intention. told
the Senate he had declined its re-
quest that he sign waiver under the
statute of limitations by which the
period in which action may be taken
expires next Friday. On the basis of
the ridiculous" calculations upon
which he was informed the Treasury
would proceed, he said. the action
would involve an additional tax
assessment of between $4,000, 900 and
s11, 100000.
Wants Proper Tax.
Secretary Mellon, in a subsequent
statement, after two others issued by
him during the day relating to the
committee testimony, declared the
only question between the Treasury
and Senator Couzens with respect to
his 1919 taxes is whether the proper
amount of tax has been collected"
The Secretary announced that unless
the waiver requested of Senator Cou-
zens was signed before Friday lit
will probably be necessary to make
an arbitrary assessment" which will
serve to hold the case open.
Senator CouZens explained to the
Senate that the tax on the stock sale
had been paid on the basis fixed by
the Treasury during the Wilson ad-
ministration and that the matter had
been closed for three or four years.
"OnIy One1 Named.
Describing the contents of a memo
randum accompanying the formal
Treasury notice given him, the source
of which, he said, Commissioner Blair
had refused to disclose. but which ap-
parently had been prepared in the
Treasury, Senator Couzens called at
tention that he was the only minority
stockholder in the Ford Co. to whom
1t made reference.
Secretary Mellon stated. however,
that waivers already had been OBJ
tanned from the other minority stock
holders. The memorandum presented
to the Senator, Mr.. Mellon said, had
been received by mail last week from
a responsible person" whose iden-
tity was not disclosed.
In stating that to protect the inter
ests" Of the Government it probably
will be necessary to make an arbi-
trary assessment, the Treasury head
added that before this is done "Se ma
tor Couzens, as any other taxpayer,
will be given every opportunity he
may desire to present the facts to the
bureau"