The Waterbury Democrat., 1937-07-13
JAMES ROOSEVELT
 HITS BACK AT FISH
(Continued from Page D

chairman of the board of Armour & Co.,, reduced his taxes Si,3e4, i0e in 1oS4-35-36 thruogh legal Income deductions obtained through use of personal holding companies.
 Charles r. Kettering, vice-presi- dent of General Motors corpora ton, saved $6lo,773 in taxes in l93a- 36-36 through use of personal holding company.
 others Mentioned
 Other persons named by Rogge as having utilized personal holding companies to reduce tax payments included:
 William Randolph Hearst, pub fisher: Jacob Ruppert, New York brewer; Horace Havemeyer, presi- dent of Havemeyer, Inc, New York; Robert A. and Frand D. stranahan, Cleveland; and William 8. Palen, president of Columbia Broadcast- Ing System.
 The Presidents son appeared with. out advance notice before the com mittee to refute charges made last week by Rep. Hamilton Fish, r., N. r., that he had been interested ia foreign personal holding companies for the purpose of reducing his in- come tax payment
 Denies Everything
 "I want to state that neither now nor at any time have had any connection with foreign personal holding companies" Roosevelt told the committee.
 The request to examine Income tax reports of Young Roosevelt for Q five year period when he was in the insurance business in Boston came from Rep. Allen T. Treadway r., Mass. This precipitated a wrangle which ended when the com- mittee adopted Q substitute motion by Rep. Jere Cooper, d., Tenn. to delay consideration Of the queaeion until the committee meets In execu- tive session.
 Treadway and Rep. Fred M. Vim son, Ky, shouted back and forth at each other over whether Roose- velt's insurance selling activiteis should be subject to questioning.
 "The gentleman from Massachu- sets shouldn't be SO dumb as think that insurance business has any thing to do with this investigation, Vinson shouted.
 Treadway declared that his mon. tality" was "as good as that of the gentleman from Kentucky" Treadway SauaaIched
 Treadway asked Roosevelt if he would submit a list of corporations to which he had made large sales.
 T object" Vinson said.
 "Does the chair sustain the ob. jectionq" Treadway asked. "The objection is sustained" saiC Chairman Robert L. Doughton. T thought 1t would be-" Tread. : way remarked.
 Sen. Robert M, LaFollette, Jr. , D., Wis, asked:
 , "As I understand 1t, MT. Roose. welt, you have no objection to sub, hitting data concerning your In. come tax returns?" "None at all," Roosevelt replied. , Roosevelt said he had been "rea. sonably successful" in the insurance business, which he first entered 1T 1880.
 Lasker's Name In
 John Rogge, securities and eX change commission lawyer who ha. aided the treasury's tax avoidancl
 investigation, submitted to the com. mittee the name of Albert B. Lasker
 head of Chicago advertising agency, who was described as thu "dominent figure" in two persona
 holding companies. Rogge explained how Lasker wa! able to make tax savings through legal deductions under present law. The two companies named wert the Advertisers Finance Corpora tion and the NEF Corporation.
 The material submitted by RoggI was first placed before the sen ate finance committee a year agt but was kept secret until today. By utilizing reductions, the twt
 companies paid surtaxes in 19S4-35 , 36 of $2,32l. Rogge said. Withou l these deductions a tax of $l97,O5' :. WOulQ nave been que. 3 A subdivision of Lasker's incom' was also affected, Rogge testified 5 by transfer of major part of hi stock in the holding companies t.
 four trusts for the benefit of hi , children.
 Rogge said the cases showed tn |, desirability of changing various dc duction provisions in the tax law effecting corporations and of elim mating the provision for debt retire , ment and losses from sale of capita
 assets of personal holding com
 panies.
 Over Million Saved If Prince had not sub-divided hi income to the personal holdinl company set-up and trust. he woult
 have had to pay additional taxes fol
 l934-5-6, Of Si.022.8i2. Rogge testi' fled.
 Jacob Ruppert. New York brewer Rogge said. has managed to escape considerable amount of tax
 thFeueh the use of q personal hold.