Evening star., 1937-06-29

Jeanette Stephens, 9.
after paying total tax for the foul
companies of $479.44 During thu
same period, Doherty's combined per
sonal and corporate income was es.
timated at $620,0OO.
In the case of Merrill and Lynch
it was estimated that they had savee
themselves approximately O,00O each
in 1884, 1885 and 1886 through the
establishment of II personal holding
companies
Much of this saving was effected, l
was shown later, by taking advantage
of the provision of the law which al
lows full deductions from gross in
come of losses incurred in sales o
capital assets. To establish such
losses, Merrill and Lynch alleged,
bought and sold blocks Of securitie!
between their own II companies.
Hobbies" Cost Deducted.
Savings through credit claimed fol
maintenance or development O.
homes, estates, farms, racing stable!
and similar hobbies" were alleged
in the cases of Mrs. Raskob, Mrs. Ross
McManus and Mr. and Mrs. Sloan.
Although the figure involved was moi
cited, Fortas claimed that Mrs. Raskot
substantially reduced her tax liability
by charging off the cost of maintain.
ing the family's Maryland farm. Sew.
eral holding companies owned by Mrs
Raskob were employed in establish.
ing the loss, incurred in the business
of farming.
Mrs. Ross followed a similar pro.
cedure
McManus, whose holding company
the c. E. M. Securities Corp, is owned
by himself, his wife and son, rented
his home from the holding company
enabling the company to deduct as
legitimate business" expenses mainte-
nance cost of S6,775 in 1896.
Sloan Figures.
In the case of the Sloans the Treas
ury estimated their tax reductions as
follows:
Mrs. M sIos sIosn ssII5o; s1;ss:s 5S l?1s:
These savings were effected on net
income of the individuals and their
corporations in the following amounts
Mrs. Sloan 1?aa szsaiis 92ii ST 1873 1913
Mr., Sloan 5ao.96o l.237.oO5 2.o1s,5a' :
The avoidance charged against Win
terS was effected through deductions
taken for retirement of debt owed by
the personal holding company to its
owner. Winters, an officer of the ad-
vertising firm Of Erwin -Wasey & Co
Inc, according to testimony, is owner
of the Lands End Corp of Delaware
and Southern Cross, Ltd, of the Ba-
hamas, both personal holding COM
panies. Through borrowings between
them. he established a debtor status
that enabled him to charge of interest
and retirement payments.
In closing his presentation, Fortas
charged that most of the avoidance
has been done by use of various loop
holes in the law, through which the
alert taxpayer of sufficient wealth, who
IS willing to do so, can escape portion
of his burden. In some instances,
taxes have been avoided by use of un-
real transactions and intercorporate
juggling which reflect not so much
in the law or its enforce
nent. as deficient sense of re-
'ponsibility in the taxpayer"
List of Holding Companies.
The committee accepted into its rec
ords the following list of personal
holding companies and their principal
owners:
Acmaro Securities Corp, Atlanta,
Ga; R. w. Woodruff, Wilmington, Del.
Baltic Securities Corp, Jersey City,
n. j.; Charles E. Merrill, New York
City, and Edmund c. Lynch, New York
City.
Beech Corp, Newark, N. j.; Thomas
W. Lamont, New York City.
Burton Securities Co., Florida; w. L.
Burton.
Cherokee Securities Corp, Delaware:
W. R. Coe.
Chesapeake Securities Corp, New
York City; Virginia Campbell.
Claytona Co., Ltd, Canada and New
York City; Isabel WHY'S, New York
City.
Colesced Co., A. w. Mellon, Paul
Mellon, Ailsa Mellon, Pittsburgh, Pa.
Dayton Investment Co., George d.
Dayton, Minneapolis, MINI.
Delaware Realty & Investment Co..
Delaware; c. G. du Pont.
Col. H. A. du Pont Co., Wilmington.
DEL; estate Of H. A. du Pont, H. F..
du Pont, trustee, Delaware.
Elalfrel Co., Delaware; F. v. du Pont.
Elton Investment Co., Inc, Whining
ton, Del; r. c. du Pont.
D. R. Fisher Co., Washington; D. R.
Fisher.
o. w. Fisher Co., washington: O. w.
Fisher.
o. D. Fisher Investment Co., Seattle.
o. D. Fisher, Seattle.
Habalu Trading Corp, New York
City; Harry A. HAIRY.
Hannah Securities Corp, Delaware:
Herbert T. Hannah.
w. w. Hawkins Co., New York City;
Mr.. and Mrs. w. w. Hawkins.
Roy w. Howard Co., New York City;
Roy w. Howard and wife.
~ TAl>
Macy, jr.
Jaxon Corp, Jersey City, N. j.: Mrs.
Irene jackson Sloan, Great Neck, NY.
Jernlyn Securities Corp, jersey City,
N. j.; Edmund G. Lynch, New York
City.
NIX, Inc, Detroit, Mich; william
4. Kent.