The Washington times., 1937-06-30
SL0AN'S YACHT
CALLED
0FTAXD0DGE

holding title to the yacht Rene,
then under construction for Mr..
Alfred P. Sloan, jr.
"The corporation assumed the
obligations of Mr.. Sloan under
the contract for the yachts con-
struction. The capital stock
outstanding December 81, 1895
consisted of S1,OOO,OOO par value
preferred and S3,OOO,OOO par
value common. All the common
stock and 9,545 shares of the
preferred are owned by Mr..
Sloan.
"The total cost Of the yacht
upon completion in 1880 was in
excess of S1,1OO,OOO of which
sum about a million apears to
have been paid from the pro-
ceeds of the sale of preferred
stock to Mr.. Sloan. The COM
mon stock in the amount Of
100000 was issued to him in
payment for securities in the
same amount, which he turned
over to the corporation.
$4,000 NET LOSS
"The return Of the Rene
CORPORATION for 1884 showed
a gross income Of S153,S6S:73.
The total deductions taken
on this return amounted to
S223,219.1O, resulting in the
corporation reporting a net
loss of S69, 353.37. In its return
for 1886 the corporation re.
ported a gross income of
S31O,S58.7S and a net income
of S122,S43.35. The corporate
return for 1886 shows tax
assessable of S25,182.SS."
Kent said the loss on opera
ion of the yacht amounted to
S278,474 from 1881 to 1885, thus
establishing the deduction for
Sloan saved $128,528 in taxes
Tor six years as a result of this
system of having the corporation
own the yacht.
Woman's Yacht Cited.
Kent next named the Savarona
Ship Corporation, owned by Mrs.
Emily R. Cadwalader OF Philadel-
phia.
He said:
"The SavarOna Corporation
was organized under the laws
of New York in 1928 with its
entire capital stock of 1000
shares owned by Mrs. Cadwa-
Iader. In 1882 she transferred
400 shares of the stock to her
attorney, Thomas Campbell, at
a price far below its book value
for the purpose of establishing
a loss, which was later disal-
lowed by the bureau.
"The corporation has been
used to own Mrs. Cadwalader's
private yachts. The first yacht
owned by the corporation was
named the SavarOna, but it was
sold in 1929 for $1,SOO,OOO in
cash.
"ItS successor, given the same
name, was completed in Ger.
many in 1881 at a cost Of $780,
812.13 and is reputed to be the
largest privately owned yacht in
the world"
From 1881 to 1887, Kent said,
Mrs. Cadwalder's corporation re-
ceived $241,535 in charter hire and
spent $1,037,022 to operate it.
He calculated that Mrs. Cadwa-
lader, by incorporating the yacht,
saved S220,183 in taxes from 1881
to 1885, inclusive.
With the naming of two yacht
incorporators, Kent said, this con-
cludeS the yachts"
Residence incorporated
Kent then described incorpora.
ton of the one-million-dollar Della,
ware residence of the late Alfred
I. du Pont.
"NemourS, Inc, was organized
In 1925 as a personal holding
corporation by Alfred l. du Point,
who at one time substantially
controlled E. /. du Point NemOurS
Co.
'"The rgOss income of the cor
pOratiOn has been the sum of
100000 for each year of its
existence, derived from divi-
dcndS on the AlmOurS securities
stock. This income has been
employed to meet the expenses
of the mansion in Wilmington
previously referred to and these
expenses have been taken as de-
auctions by the company"
Kent estimated. the total saving
in taxes of Du Pont and the estate
at $200,347 from 1881 to 1885.
The next name mentioned was
that of Myron c. Taylor, chair
man of the board of the United
States Steel Corporation.