The Waterbury Democrat., 1943-04-17

tional Business Machines,
man In America, has got /.
The Treasury has demanded
that he pay up around @Sb0,000
for 1887 under circumstances
which affect not only Wasons
pocketbook, but thousands Of
y. 8. merchant seainen.
Watson waited until Just g few
hours before the deadline, then
q petition with the Treasury con.
testing It's tax claims.
Watsons tax difficulties arose
while he was president Of the In
ternatlonal Chamber Of Commerce
In 1887 and was out Of the coun.
try for what he commended was
more than half q year. He spent
q lot OF his time abroad on
Chamber Of Commerce matters
and on what he told his stock
holders were efforts TO sell busi~
ness machines In Europe. Among
other things, incidentally, he 70.
ceived q medal from Adolf Hit
lor, which he later asked Secre-
tary Hull TO return.
when che year 1857 was ever,
Watson reported 10 Che Treasury
that he had been absent from
che u. 8. A. SIX months plus .
few hours over. He had 70 all
figured down % Che last minute.
Under Treasury ruling ll6A .
man who has been absent for
mere than six months gets .
substantial tax reduction.
However, when Internal Rev.
enue experts began TO probe
closely into Watsons operations
they discovered some interesting
things. In May and June 1887
he took six trips out Of the United
States, carefully estimating the
exact number Of hours he was
away.
SIGNED DIRECTORS MINUTES
Then after some travel In Eu-
rope, he came back to the United
States. But In December, 1897,
Just as the tax year was about to
close, he reported 70 Canada
again.
However, when long .nosed Hugh
McQuillen, New York'S chief In.
ternl Revenue investigator, began
to pry into the matter, he found
that Watson had signed the min
utes OF the Dlrecors' Meeting Of
the Federal Reserve Bank Of New
York, held ut the very same time
Watson said he was In Canada.
As q result, the Treasury 10
now collecting f0r the supposed
absence Of six months.
Another result Is that the Treas
ury has nov changed ruling ll6A,
so that In order to get q deduc.
ton for six months absence, q
taxpayer must be out Of the coun-
try six months c0nsecutively. He
cannot commute back and forth q
few days In Mexico and Canada
and add them all together.
This revised ruling has chiefly
hit several thousand seanlen,
who In peace times escaped pay.
ing income taxes by worhing
from New York 10 Galveston o.
70 Los Angeles 30 many trips
that it added mp 70 . total Of
six months.
NOTE: Though Charles Bedaux
generally got credit for inviting
the Duke Of Windsor to the
United States several years ago,
he Is understood TO have voted on
behalf Of Thomas watson.
CAPITAL CHAFF
Ambassador John Winant's
younger brother Fred Is the Amer
lean representative In the Mid
die East Supply Center in Cairo
:. There Is shortage Of planes
for transporting officials to AZ
rica. Some men cool their heels
Cor Q month before getting q seat
when Jimmy Byrnes heard
that two Senate COMMITTEES were
arguing over which should go to
North Afgrica, he said: "Esn't that
another argument for two fr0nts?"
80. Now that power has shift
ed from Nelson to Wilson In the
War Production Board, Sidney
Weinberg Is making himself In
dispensable to Wilson Nelson
Is already engrOssed IN the prob
lem Of postwar re.conversicn 4.
Keep your eye on Rep. Lane Pow
ers Of New Jesey as q compromise
possibility in the New Jersey COP
guheEnatorial convention .
Powers Il friendly with ali COP
factions and his supporters believe
he would make q potent candi-
date for governor against the
delnoralized Hague machine.
GENTLE AMBASSADOR
0aunt, suave Billy Phillips,
President Roosevelt's ambassador
70 India, has nof made an exc
tensive tour OF that country and Is
reported 30 be about ready 10
report 70 bis CHIEF On The vital