Standard Oil Company; Trusts, Industrial -- United States
No reply to this request was ever received. Then telegrams were sent,
several days in succession, asking for reports, offering more time
if the company would agree to report within any reasonable time, and
finally warning the company that if it did not comply with the law and
file its reports the Auditor-General would act under the authority
given him by the law, and charge it with taxes estimated on such
"reasonable data" as he could procure. All the department could get
were evasive letters or telegrams from the counsel in New York, such
as "letter explaining on the way." The letter came with the valuable
information that "the officers are out of the city, and the company
will answer on their return." Another "reply" was: "I have failed to
get replies from the absent officers."[315] No reports forthcoming,
the Auditor-General at last, on the best information he could get,
backed by affidavits which were placed on file in the archives of his
office, calculated the taxes due from 1872 to 1881, with penalties,
at $3,145,541.64. This was totalled on an estimate, supported by
affidavit, that the profits of the company had been two to three
millions a year from 1872 to 1876, and ten to twelve millions a year
from 1876 to 1880, figures which what is now known show to have been
near the truth. After fixing upon this amount, and before charging it
against the company, the latter was given still another chance, and
another. Two telegrams were sent notifying that the estimated tax would
be entered up if "the refusal to report" was persisted in. The last
telegram said: "Still hoping that reports will come from the company,
so that we will have some data to act upon."
No word of reply came.
Then the Auditor-General formally entered the amount he had estimated
on his books, as the law authorized him to do.[316] His investigations
had consumed his entire term, and the filing of this estimate was
almost his last official act. It is a fact of record that after all
this, officers of the company, in seeking to have this estimate of
taxes due set aside, stated in writing that "there was no neglect
or refusal on the part of said company to furnish any report or
information which could lawfully be required of it by any officer or
under any law of the State of Pennsylvania."[317]
Public-domain text, read in full here on John Shaqi.
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