Indianapolis Times, Indianapolis, Marion County, 24 June 1937 — Page 4

NAME DOZENS WHO FORMED HOLDING FIRMS

Mellon, Sloan, Scripps and Howard Are Among Those Listed.

(Continued from Page One)

laws. He cited 17 specific cases which he said had been selected at random froin the Treasury's files as most demonstrative of methods employed. He told the committee that the in-

. dividual owners of the 17 holding

companies would have had to pay “an aggregate surtax of $1,638,023” if the personal holding companies had not been formed. The companies themselves paid aggregate taxes of $43,973, he said. Mr. Helvering said there was “nothing illegal” in the methods uised, and ‘that they were named to aid the committee in revising revenue laws to close loopholes.

Lists Holding Companies

Following is the list of personal companies cited to the committee by Mr. Helvering, together with the names of the men listed as having formed the corporations: Senior Investment Corp., Michigan, F. J. Fisher, Detroit. E. W. Scripps Co., Ohio, Scripps. W W. Hawkins Co., Delaware, W. W. Hawkins. Robert P. Scripps Co., Robert P. Scripps. - Food Industries, Inc., D. W. Dietrich. Adason Tobacco Corp, Mellon, Louis Allen, C. D. and R. B. Mellon. Penn .Tobacco Corp., Andrew Mellon, Louis Allen, C. D. Marshall and

E W.

Andrew Marshail

" R. B. Mellon.

Kovik Investments Ltd. Charles M. Higgins, Montreal, Canada. The Tennessee Co., W. W. Hawkins. Peter Berkey Corp, Peter Berkey, Chicago. Laurence Industrial Corp., Solon E. Summerfield, Milwaukee. Consolidated = Publishers, Block. Falk Investment Co., Herman W. Falk. Terrace Finance Corp., Clement C. Smith (deceased) and wife. Marion Finance Co., estate of George P. Miller. Smoot Sand and Gravel Co. of Canada, L. E. Smoot, Toronto, Ont. Altew Co.,-Ltd., A. S. Brown.

‘Tells of Scripps Company

Paul

Citing individual cases included in the analysis, Mr. Helvering said that the Robert P. Scripps Co. reported no income tax or surtax for 1934 on a net income of $173,599.63. The company, the commissioner said, is the . personal holding company of Robert P. Scripps. Mr. Helvering said that his bureau estimated, after deducting dividends paid by the Robert P. Scripps Co. to its stockholders, “that an additional surtax of $59,840 would have been paid by Mr. Scripps if the personal holding company device had not been employed.” The second individual case submitted was that of the E. W. Scripps Co.. which Helvering said was “a personal holding company of E. W. Scripps.” Helvering said that the bureau had computed that payment of surtax for 1934 in the amount of $449,-

134, “was avoided by use of holding

company,” the net income of which he said was $1,705,405. The company paid personal holding com-

_. pany surtax of $67.04 and nor ordi-

nary corporate tax, he said. ‘Not 1llegal’ He Says Senator La Follette (P. Wis.) said

‘that “if these companies paid no

taxes in 1934 they probably must have had losses.” : The Food Industries, Inc. a personal holding company owned by D. W. Dietrich, was named by Mr. Helvering as having a net income for 1934 of $293,274, but as having paid no tax. The owner of the company, Helvering asserted, avoided payment of surtax in the amount of $60,000 by use of the personal holding company, "After the commissioner cited the case of the E. W. Scripps Co., Rep.

Vinson (D., Ky.) asserted that “the:

Envelope Is Magellan of Airmail Routes

AIR MALL

FAR HPN

Letters have girdled the globe by air before, but the much-postmarked envelope above is claimed to be the first to make the ‘round trip. by way of regular It started from London and returned

Play Based on Mercury Myth Brings Lunts Credit for Hit

airmail routes.

company paid out $850,000 in dividends, on which the Government must have collected income taxes.” In reply to a question by Senator Pat Harrison (D. Miss.) Commissioner Helvering said there was nothing illegal in the holding com-

| pany setups.

“They did nothing illegal and the reason you name them is to aid us in revising the law,” suggested Senator Harrison. “Yes sir, there was nothing illegal,” Mr. Helvering replied.

Mellon Firm Is Cited

In connection with the two holding companies with which Mr. Mellon was allegedly connected the Treasury said that in the case of the Adason Tobacco Co. Allen held 490 shares of common stock, Marshall 252 shares, Andrew Mellon 126, and R. B. Mellon 126. The preferred stock was held by Mr. Allen with 3750 shares, while the two Mellons had 1500 each.

As for the Penn Tobacco Corp., no preferred stock was out. The two Mellons were listed with 9547 each of common stock, Allen 66,247, and Marshall, 19,094.

Abe Fortas, a Securities and Exchange Commission lawyer, working with the Treasury on investigation testified in answer to a question as to the nature of business activities of the Adason and Penn. Cos that “so far as the Treasury knows these companies were not engaged in any industrial activity.” Asked by Rep. Jere Cooper (D. Tenn.) as to why they were called tobacco corporations, Mr. Fortas said “I don’t know except it has been suggested that the corporations held considerable shares in tobacco companies.”

1300 Returns Filed

It was brought out as the committee looked over the analysis that the Tennessee Co., listed as owned by W. W. Hawkins, later had more than 50 per cent of its stock acquired by James Hammond, who Mr. Helvering said was a publisher and editor. Mr. Helvering said that of 1300 personal holding .company returns filed under the 1936 act and analyzed by the Treasuty, '278 claimed the 20 per cent deduction allowed in the personal holding company section of the revenue. act; 46 claimed deductions for capital losses permitted in the same section over and above those allowed to individuals, and 56 claimed deductions because of a “reasonable” retirement of debt incurred before Jan. 1, 1934. An analysis of 1300 cases of holding companies in connection with various deductions they can make in arriving at [taxable incomes was

submitted in the form of five ex-

hibits containing the names of hundreds of personal holding companies. Mr. Helvering submitted to the committee a list of “principal owners of some of the holding companies.” They included: Thomas W. Lamont, Beech Corp.; Mrs: F. C. Lamont, Rockland Corp.; Isabel Willys, Claytona Co. Ltd.; Alfred P. Sloan Jr., and Mrs. Irene Jackson Sloan, Newcastle Corp, Marquette Corp., Rene Corp. Jaxon Corp., Newcastle Corp. (jointly); Charles Hayden (deceased), United Telegram Co., and Northern Exploration Corp. Jeremiah Milbank, the Transit Corp.; Roy W. Howard and wife, the Roy W. Howard Co.; W. S. Paley,

the Park Corp.; Jacob Rupper, Ruppert Holding Corp.; W. L. Burton,

40 days later. to Brazil,

By United Press

Meanwhile it had crossed the Atlantic traveled north to San Francisco, crossed the Pacific to Manila, thence to Honkong and back to Europe by way of India and Marseilles. ;

SAN FRANCISCO, June 24—The mythological story of Jupiter's descent from Heaven to woo a mortal woman was enacted for the 38th time since the days of ancient Greece last night when the Theater Guild presented - Alfred -Lunt and Lynn Fontanne in the stage play, “Amphi-

tryon 38.”

Critical opinion saw the play as a triumph for the Theater Guild, an admirable vehicle for the Lunts, who were at their best, and a personal triumph’ for the young actor, Richard Whorf, the pacifist in “Idiot's Delight,” which closed here last week.o—

Audience Not Disappointed

It set the tone of the play in biting dialog that never approached vulgarity, yet led a startled audience to expect daring scenes and contretemps. They were not disappointed. Lunt, in the dual role of Jupiter and the General, “Amphitryon,” he intended to betray, still seemed to carry over some of the nasal twang associated with his role as a smalllime dancer in “Idiot's Delight.” It was the.only criticism to be found with, his portrayal. Burden of the play rested on Miss Fontanne, who did her best to raise a second curtain to heights, and who gave a brilliant performance as the

mortal woman who remained true:

to her husband, if in spirit only. S. N. Behrman’s adaptation of the play was from the French of Jean Giraudoux. The dialog brought waves of laughter. His adaptation

Burton Securities Co.; Mr. and Mrs. W. W. Hawkins, W. W. Hawkins Co.; Harry A. Hatry, Habalu Trading Corp. Fred Fisher, Senior Investment Corp.; Wm. A. Kent, M-K, Inc. O. D. Fisher; O. D. Fisher Investment Co.; D. R. Fisher, ID. R. Fisher Co.; O. W. Fisher, the O. W. Fisher Co.

George D. Dayton, Dayton Investment Co.; Robert P. Scripps, the Robert P. Scripps Co.; E. W. Scripps, the E. W. Scripps Co.; Robert Nixon, Midland Investment Co.; Pierre du Ponf, Delaware Realty & Investment Co.; Herbert T. Hannan, Hannon Securities Corp.; F. V. du Pont, Elalfred Co.; W. M. Dewart and wife, The New York Sun, Inc.; Ri W. Woodruff, the Acmaro Securities Corp.; Alisie Mellon Bruce, the Coalesced Co.; W. R. Coe, Cherokee Securities Corp.; T. L. Sidlo, the Thomas L. Sidlo Co.; Charles E. Merrill, Baltic Securities Corp.; Edmund C. Lynch, Jernlyn Securities Corp., Orchard Corp., Staple Products, Ltd, Western Merchandise Corp.

No Tax Evasion Detected

Paulina du Pont, Nemours Corp.; Mrs. Ethel H. du Pont, the Still Pond Co.; Mrs. W. du Pont Ross, Renappi Corp.; Pierre du Pont and

J. J. Raskob, Regent Corp.; H. F. du Pont, Col. H. F. du Pont Co.; R. C. du Pont, Elton Investment Co., Inc.; Valentine E. Macy Jr., Hudson Co.; E. H. Worth, Worth Bros. Corp.; Virginia’ Campbell, Chesapeake Securities Corp.: John W. Greve, Prudence Co. of Delaware, Inc., and Duncan Phillips, the Phillips Properties, -Inc. Asked if any tax evasions had occurred ‘in connection with the cases, Mr. Helvering said none had been detected. “But I understand the 17 companies are on the commissioner's

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and the scenery by Lee Simanson were worthy of particular mention, especially the prolog scene wherein Jupiter and Mercury conferred together atop a cloud in the heavens. Changes Are Anticipated

With Lunt’s ability to.change productions and improve them, and with the advantage of having a first audience’s reaction, it was expected that certain scenes would undergo speeding up. The pair faced the difficult task of presenting what they have termed “an experimental production” on the heels of their successful run in “Idiot’s Delight.” They have a definite hit but as Lunt expressed the situation in a curtain speech after the company had taken some 15 bows: “There are things we have to do with ‘Amphitryon.’ We'll do them as we go along.”

desk for examination,” said Rep. Vinson. “That is right,” said Mr. ing. Senator La Follette asked the Treasury to file a list of Treasury experts who had left the department in the last few years to entér private tax practice.

Helver-

ENDS LIFE WITH GAS

IN ROOMING HOUSE

Proprietor Turns on Stove Jets, - Blankets Head.

Frank Lipferd, 67, operator of a rooming house at 684 Arch St., sat down in front of his gas stove, put a blanket over his head to hold the gas in, turned on the burners, and asphyxiated himself, police reported today. A roomer at the house, Henry Lehr, 75, told police he was awakened during the night by the-smell of gas. He went to Mr. Lipferd’s apartment in the rear, and found Mr. Lipferd seated in the chair, the burners open. Artificial respiration oroved fruitess. police arrived. Dr. Norman Booher, deputy coroner, sent ‘the body to the city morgue.

Foot Ailments

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THE INDIARAPOLIS TIMES |

Mr. Lipferd was dead when,

TAX BOARD AY EXEMPTION LAW

Trial Is Planned If Adverse Decision Is Given Vanderburg Case.

A constitutional test of the Mortgage Tax Exemption law, which might place more than $182,000,000 on Indiana tax duplicates, is planned by the State Tax Board if an adverse desicion is given on a case now before the Vanderburg Probate Court. The Vanderburg case, based on an interpretation of a conditional sales contract for real property, is being conducted by Philip Zoercher, Tax Board chairman. The Mortgage Exemption Law has not been tested since 1901 when two State Supreme Court members dissented from a majority ruling declaring the statute constitutional.

Claims No Exemption Taken

Exemption is claimed in the Vanderburg case although the property deed still is held by the seller. The claim is made that no exemption is taken, but that a “deduction” for the mortgage lien is made. In the high court dissenting opinion, justices neld that deductions for taxing purposes were no more plausible in mortgage liens than in mechanics, vendors or any other kind of tangible obligation. The state case is based chiefly on Section 26 of the tax law which reads: “In cases of mortgaged real estate, the mortgagor shall, for the purpose of taxation, be deemed the owner until the mortgagee shall have taken possession of the mortgaged premises.”

1931 Is Highest Year

Exemptions claimed under the law. totaled more than $204,049,000 in 1931, the highest year on record, and more than $200,000,000 in 1930. The Vanderburg case, Hattie M. Falk vs. Edward D. Koenemann, county auditor, resulted when a real property. operator, holding the deed under a conditional sales contract, claimed exemption for the unpaid balance of the contract. No transfer of title had neen made in the case. Mr. Zoercher said he would at“tempt to determine the validity of the entire state exemption statute if he received a denial from the country Probate Court. A decision is expected soon, he said.

SPORTSMEN ASKED TO AID FISH SURVEY

Times Special : BLOOMINGTON, June 24.—Fishermen, attention! Several thousand more fish scales are needed to complete the study of food conditions in Indiana lakes and streams being made by the Department of Conservation in cooperation with Indiana University scientists. Fishermen are being asked to send to the Department a half dozen scdles from fish caught this season, along with the length, weight and species of the fish and the place

|it was caught.

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HEART AILMENTS GREATEST PROBLEM

New Life Span Responsible; Doctor Asserts.

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