The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1925-03-12
MORE CLAIMS
QUESTIONED BY
PROBING BODY
C0uZens Investigators Say
$562, 900, 900 More Than
Right Allowed


WaShington March 1.-THE inter
nal revenue bureau, in collecting war
and post war corporation taxes, has
allowed $50, 900 in amortization
claims under principles que STONED
By the to,l2enS senate committee, us
record filed with the senate diaclos-
ed on the basis OF testimony by bur
eau officials Similar claims that are
still pending, as set forth in thiS
testimony, amount 10 Approximately
$500, 600 900.
Through l.. n Manson, counsel for
the committee, and its own engineers,
with the aid of the bureau personnel,
the committee undertook more de-
tailed investigation Of several of the
allowed claims, most OF them aris-
ing out Of wartime operations of in
dustrial companies. The Berwlnd-
White Coal Mining company. in
PENNSYLVANIA, furnished the chief
claim brought under particular eN-
aminations in this category.
Allowance Questioned
II wish to call the committees at
tention very briefly to the ultimate
facts which your counsel expects to
establish" Mr.. Manson said in intro
ducing his evidence. THE claim is
for amortization Of an electric power
plant, construction of which was
started in June, 1918, and which was
put into operation in 1920. The cost
of this plant was SS25,722. The
Of NJ al
1913, 40l This allowance was based
upon the theory that but $40 per-
cent of this plant was required by
the Berwind- White company to meet
it's post war needs. We expect to
show that 70 and more likely so per-
cent Of the plant was in use at the
time the amortization was determln-
ed
j W. Swaren, an engineer for the
bureau who made Il study of the Ber-
wind White claim when it was ORR
ginally advanced, agreed that he had
reported the plant to be in use in
1922 to the extent Of 70 percent of
its capacity. His superiors in final
adjustment allowed the corporate or
to claim the deduction on the theory
that it was only 52.6 percent useful
he declared, and expressed the opin-
ion this allowance to be fair
Steel Tax Cut
The largest Of the amortization
claims pending, Mr.. Manson reported
to the committee, affects the Unltet
States Steel corporation.
THE amount claimed is $S3,4S2,
o6l," he told the committee. explain
ing that while the case was yet un
finished the engineering estimate
had been approved in the bureau
The amortization allowed by tn
unit (income taxi was $55,O633l.
The amortization considered prope
by your counsel and engineers i
S27,l36,0s1 The diHcrenc
in tax is $2l ,433,5l3."
Special amortization allowance
were given corporations producin
war material during 1917 and 1918 j
they embarked upon improvement
and construction rojects during tina
period, even though the actual ex
penditure was not made until afte
the war.
Testimony Attacked
The American Mining Congress to
cay issued statement here de
claring that the testimony before tn
senate committee assaulted valuation
allowed silver and copper companie
did not disclose the real issues.
Valuation factors selected by tn
government in 1928 over objection
by copper companies the statemer
said, "were accepted by them in goo
faith as their repre- fe
that difficulties, delays and litig;
'tion would be avoided by immedia,
settlements of tax liability, whic
would enable the industry to procee
without interruption or uncertaint
which might be involved in extende
controversy with the treasury owe
basic Valuations"