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Show Xi MP1Y i PLAiS TO ElfAOE TAX , 1 Counsel Admits Leasing Assets to Cuban Corporation to Es-; Es-; cape Payment j NEWARK. N. J., March 17. Rich-' jard V. Landabury, counsel for the; ; Frisco Sugar company, a Now Jersey . corporation, admitted today that the, I company proposed to lease its assets ' to a Cuban corporation to be known ,as the Companla ..zucarara Francisco in order to escape payment of federal ; income and excess profit taxes of approximately ap-proximately ?l,000.000 annually. ; The lawyer made tliis admission during dur-ing hearing on a suit brought by Wil-'liam Wil-'liam II. Allen of Philadelphia, a stock-' j holder, to prevent tl.o company from , taking the proposed action. Allen, (who declared he would lose $13,000 a 1 year if he won his suit, set forth J through his attorneys y.iat "iu is , a , j 1 scheme against public policy." ,! : The defense, asserted the action was J jlr-gal and was "merely taking advan-'" ituge of the option ;iccordinc it bv the (revenue laws of lh United States which give a resident taxpayers the ' I i opportunity of earning profits in for-;! eign countries through the medium of foreign corporations and of paying a ' federal tax only upon so much of those profits as the tax payer lakes from ' I its subsidiary into its own treasury.", ' Thirty per cent'dividends areprom- ised stockholders 'his year because of j the proposed tax saving, according to ' ! the defense. . i J Vice Chancellor Fielder, reserved ' decision. j |