| Show I RICH MEN HElD TO TOBE TOBE BE CHEATING U U. U S. S GOVERNMENT Charged With Being in a a. a Plot to Defraud in Income Tax S 'S By International News Service I V WASHINGTON ASHINGTON Dec 22 American American millionaires are declared to be Involved I In ina a far reaching plot to defraud the I United States StateR government of millions of dollars in income tax This was revealed at the federal trade commissions commission's hearing in the president food rood price investigation this afternoon By a system of bearer warrants warrants warrants war war- rants which a absolutely conceals the thereal thereal thereal real identity of owners of at corporation stocks certain rich men of the United States have succeeded in evading payment payment payment pay pay- ment of Income taxes and surtaxes through making malting it impossible for the treasury to find who owes the tax f A sweeping investigation of the whole plan by the commissioner of In Internal internal internal in- in revenue is expected and legislation legislation legislation legisla legisla- tion forbidding the use of these blind i securities in all probability will result The commission has revealed the in introduction introduction in- in of a b bearer warrant system of af concealing property ownership in connection with its inquiry into ownership ownership ownership owner owner- ship by the Chicago packers of af the Chicago Terminal Railways In its in investigation investigation in- in it has run up against a stonewall In many places by finding millions In property in the form of warrants Iss issued ed only to bearer and not indicating the name of the re real l lowner I owner any more mare than an ordinary bank banknote banknote banknote note does I OBSCURE METHODS The method of f cashing ashing these warrants warrants warrants war war- rants and receiving is just as obscure The holder halder of a bearer warrant for far forstock forstock stock in ina a a corporation may take his coupon to any bank and without In Indorsing Indorsing indorsing In- In dorsing it deposit and receive receive the money The bank forwards the coupon cou cau- pon to the corporation on which it is drawn and gets its money maney Likewise In the voting of stock stack bearer warrants give the owner the privilege of af voting to control the affairs affairs affairs af af- af- af fairs of his corporation merely by se securing securing securing se- se curing a proxy which need not nat bear his name or any identifying mark Commissioner Colver during today's hearing call called d attention to the fact that thata a corporation might make an entirely honest to the government and yet et be unable to state to whom dividends dividends divi divi- are paid The commissions commission's In Investigation Investigation investigation In- In showed that officers of af corporations corporations corporations cor cor- using this method have no knowledge of stockholders are because bearer warrants are merely Issued is issued issued Is- Is sued by number v PRESENT EVIDENCE The trade commission is prepared to tomake tomake make male available to the treasury full tull evidence evidence evi evi- dence of the operation of af the plan The terms of the new revenue law make this plan possible Under the old law taxes on dividends were deducted by the corporations before being paid to the stockholders Under the new law the corporation is only anly required to give information as to who wha receive receives the dividends Under the bearer warrant system the corporation is totally unable to give this information no matter how haw mandatory mandatory man man- datary the law because the corporation corporation corporation corpora corpora- tion officers do not know who owns the stock Today's Taday's disclosures at the hearing also included evidence of how the Chicago Chi Chi- cago cage packers' packers ring reaches out aut to control con can trot scores scares of interests |
