Salt Lake Telegram | 1927-01-16 | Page 31 | Must Pay Tax on $5,000,000

MUST MUsi PAY TAX ON N O Board of Appeals Dec De- De c dares Levy on Cash Seized in i 1920 Is Proper WASHINGTON Jan 15 AP- AP Income taxes on almost which was dramatically seized by government agents just after it had been paid to two New York shippers In a Wall Vall street bank In 1920 were ordered paid today by the board of tax taC appeals The agents seized the cash which had been paid to II H. F. F Kerr Kerrand Kerrand and A. A E. E Clegg British after having been told the two shippers or their representatives intended intended in- in tended to leave heave the same day for tor England and It has been held since In a New York bank Kerr Kerrand and Clegg were ordered today today to- to day by the board to pay a tax of and respectively respectively on the received by them in tho sale sale sale-of of stocks They sold stock in the American Ship and Commerce corporation corporation corpora corpora- tion a New York concern to a holdIng hold hold- Ing corporation known as the American Ship and Commerce corporation corporation cor- cor n. n Delaware corporation Le Learning of the deal government agents drew up an assessment assessment as- as of In back taxes against K Kerr rr and Clegg and then stationed ned themselves about the tho doors of the Chase National bank where the transaction was consummated consummated mated In order to present a lien against the funds less they be taken from the country As' As lawyers for the shippers started to leave th bank buildIng the gents agents claimed the cash An argument and scramble followed and finally both government and amid shippers shippers' agents walked down Wali Vall street holding to the bag containing the The government gained control of the tho funds and Invested them In another bank In the name of the two shippers who have since drawn Interest on it ft Kerr and Clegg have each obtained the wIthdrawal of from the Impounded funds since The governments government's claim for fol forback back taxes on which ground rhe was seized was disapproved proved but the board held the shippers ship ship- pars pers were liable Hable to the Income tax In 1920 on the deal