The Ely miner., 1934-09-21


variety of methods"
MANY returns, particularly Of part
ners In large banking houses, were
exempted from adequate scrutiny" the
committee said.
"When examinations were made the
time devoted to them was compara-
lively short, in view of the wealth of
the taxpayers and the complex nature
of their transactions.
"Thus, in 1890. according to the bu-
reaus own records, one day was spent
in checking the partnership return of
]. P. Morgan & Co. and Drexel & Co.
the most powerful banking group in
the world.
"This return was not subjected to
any field examination and apparently
the agents explanation was sufficient
to satisfy the internal revenue bureau
that none was necessary"
Citing that since the hearings were
held congress has enacted certain re-
forms in legislation and administra-
ton to prevent tax avoidance, the re-
port stated:
"The need for reform, either in law
or its method Of enforcement, or both,
was made abundantly clear when the
income tax returns of some of the
leaders of American finance for the
years since 1929 were examined by the
subcommittee.
"For the year 1929 the partners of
]. P. Morgan & Co. collectively paid
about $11 100000 In taxes to the fed
eral government. For the year 1896,
II Morgan partners, including ]. P.
aggregate taxes Of about $4,000. For
the year 1881 not a single Morgan
partner paid any tax. For the year
1892 not a single Morgan partner paid
any tax.
''For the year 1929 the partners of
Kuhn, Loeb & Co. collectively paid
about 81, 100000 in taxes. For the year
| 1880 four Kuhn-Loeb partners, includ-
ing Otto H. Kahn, paid no tax, and
| four paid aggregate taxes Of ABOUT
| 100000. For the year 1881 six Kuhn
Loeb partners paid no tax, and the
other paid taxes totaling less than
| $1,000. A similar situation prevailed
in 1892"
Charles e. Mitchell, at the time
| chairman of the National City bank,
| the report said, "sold his wife In 1929
| 1890 shares of National City bank
stock at a loss of $2,S72, ,3O5." This
| transaction, Mr.. Mitchell admitted.
was entered for the express purpose
| of establishing loss for income tax
purposes.
NEW DEALERS rejoiced in the re-
Y suits of the Maine election,
though their victory was incomplete.
| Gov. Louis ]. Brann, Democrat, was
reelected by substantial majority
over the Republican candidate, Alfred
K. Ames, a wealthy and aged retired
lumberman. Senator Frederick Hale,
veteran Republican, was returned to
the upper house for his fourth term,
but his majority over f. Harold Du-
bord, dynamic Democratic nominee.
was so slender that Hale must have
| felt rather Inundated. The New Deal
ers. on the face of incomplete returns,
won two of the three congressional
seats.
Maine was the pioneer prohibition
state but in this election it abandoned
it's 50-year-old policy and Joined the
wet list, voting for repeal by a large
majority.
VXTHEN the League of Nations met
w In Geneva an invitation to Russia
to join the league was circulated,
signed and sent to Moscow. The coun-
ell then announced that an accord had
been reached to grant Russia q per-
manent seat on the council. and 1t was
expected that only Portugal and Ar
gentina would continue to oppose this.
Richard Sander of Sweden was
elected president of the league assem-
| bly, by an almost unanimous vote.