Evening star., 1937-06-24
R. P. Scripps, Roy Howard,
Paul Block, Newspaper
Publishers, Are Included
Among Magnates Named.
REVENUE LOSS TO u. S.
is SET AT S9,237,OOO
Jacob Rupert, Base Ball Mag.
nate, Held One Who Used
Holding Firm Device to Reduce
Payments in Helvering State.
ment to Committee.
BACKGROUND

BACKGROUND
When tar returns Of last March
teH considerably beloW estimates.
Treasury Department made ou1ck
surrey in effort to determine Yea-
son. Finding greatest comparative
shortage in centerS OF reulth, in
reStigatorS uncorerPd Sererul auold-
dnce deufceS IN general use.
President thereupon asked for
congressional inquiry NTH leg,sld-
ton to close loopholes to toIlou.
By the Associated Press.
Two score names OF persons high
in business and financial fields were
listed by Treasury officials today in
the Senate-House inquiry into tax
evasion and avoidance.
The list included Andrew w. Mel
Ion, Pierre du Pont, John J. Raskob,
Thomas w. Lamont. Alfred P. Sloan,
il, and Mrs. Ethel H. du Pont.
The names were listed in tables
given the Congressional Investigating
Committee by Guy T. Helvering, in
ternal revenue commissioner, as the
committee studied what Helverlng
termed the device of personal hold
ing companies to reduce tax pay
mentS.
Helyering did not say at any point
that the tax-reduclng activities Of
those named were in any way Illegal.
Instead. he said they took advan-
tage of tax deductions allowed per-
sonal holding companies under the
law which are not permitted on in
divldual tax returns.
Mellon Has Two.
Mellon was described as having two
holding companies. His name was
brought into the hearing early in to-
days session. when the Treasury Of
fetal listed the names of II holding
companies and their principal owners
as examples Of how holding COM
panies were used by wealthy persons
TO cut tax payments.
In the table listing principal owners
Of some personal holding companies.
Helvering included the following, who
were not Immediately identified:
Mrs. F. c. Lamont, Isabel Willys.
Mrs. Irene Jackson Sloan. Charles
Hayden tdeCeaSedJ. jeremiah Milbank,
Roy w Howard and wife, w. S. Palev,
Jacob Rupert, w. L. Burton, Mr.. and
Mrs. w. w. Hawkins. Harry A. HAIRY,
Fred Fisher, William A. Kent. O. D.
Fisher, D. R. Fisher, O w. Fisher
Robert P. Scripps. E. w. Scripps.
Robert Nixon. Herbert T. Hannah, F.
V. Dupont. William Dewart and wife,
R. w. Woodruff. Alisie Mellon Bruce.
w. R. Coe, T L. Sidlo, Charles E. Mer-
rill. Edmund c. Lynch, Paulina oJ
Pont, R. c. du Pont. Valentine E.
Macy. jr.; E. H Worth. Virginia Camp
bell, John W. Greye and Duncan Phil
lips.
FOrtas testified he understood" that
the various Du Points named in the
list were members Of the same family.
The two Mellon companies, which
Helvering said were owned by the
former Secretary of the Treasury.
were given as the Adason Tobacco
Corp. of New York City and the Penn
Tobacco Corp. of Greenwich, Conn,
Besides A. w. Mellon. Helvering as
serted, other persons having an inter-
est in both companies were:
c. Louis Allen. described as manu-
facturer Of tobacco products.
c. D. Marshall of Pittsburgh, steel
manufacturer and bridge builder.
R. B. Mellon, deceased, Of Pitts
burgh, brother of Andrew.
AS Melons name was brought in,
Senator Harrison, Democrat, of Mis-
sissippi asked that he be identified.
Newspaper Owners Named
'Is he the former Secretary of the
Treasury" the Senator queried
Where does he live?"
Answering for Helvering, Abe Fortas.
a special agent, identified Mellon as
the Pittsburgh financier and former
Government official.
The exhibit listed first the names of
Robert P. Scripps and E. w. Scripps
as principal owners Of personal hold
ing companies.
Harrison asked whether the two
were engaged in the newspaper busi-
ness, and how many papers do they
have?"
They have papers in large num-
ber of Cities Helvering replied.
Harrison then asked whether profits
from the papers were transferred to
the holding companies, making profits
(See EVASION, Page A-14)