THE MORGAN INQUIRY
BOGUS TRANSACTIONS EVASION OF INCOME TAX (United Press Association.) (By Electric Telegraph—Copyright.) WASHINGTON, June 9. (Received June 11, at 7.30 p.m.) The Morgan inquiry closed to-day with the three junior partners on the stand explaining how in 1930 they avoided income tax payments by selling stocks to members of their families at depreciated prices, thus showing the capital losses to offset the earnings. Thomas S. Lament, son of Thomas W. Lament, the details of whose transactions are typical of the other two, transferred securities to his wife, who gave him a personal note. Later the stocks were returned, when the note was cancelled. The only cash involved was the interest on the note. It is expected that legal action will be taken in due course to deal with such evasions. Meanwhile, other private financial institutions will be investigated.
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Otago Daily Times, Issue 21977, 12 June 1933, Page 7
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141THE MORGAN INQUIRY Otago Daily Times, Issue 21977, 12 June 1933, Page 7
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