by Laurel | June 15th, 2010
June 15, 1919
George E. Gordon, Holyoke Theater Owner, Arrested by Federal Officers on Complaint That He Failed to Turn Over Tax Collections — Denial by Gordon.
The first arrest in this state for failure to turn over war tax collections to the government was made yesterday afternoon when George E. Gordon, proprietor of the Strand theater on Maple street, Holyoke, was arrested at his home in Ludlow by Deputy Marshal E. J. Leyden. It is charged that Gordon has retained the war taxes collected at his theater during the months of December, 1918, to April, 1919, inclusive. He was arraigned before Judge Wallace R. Heady late yesterday afternoon and held in $6000 bail, which he furnished, for hearing before United States Commissioner John L. Rice on July 2.
Edward F. Hoyers of the office of John F. Malley, internal revenue collector of Boston, swore out a complaint against Gordon in Boston on information furnished by Michael J. Marowan, division deputy of the local revenue office. Meyers and Joseph Weldon of the local office conducted the investigation of Gordon’s case yesterday. Gordon also failed to five war taxes to the government for two months in 1917 it is claimed.
It is alleged that Gordon has held back about $2800 in taxes, which, added to the 200 per cent automatic fine for failure to make monthly returns within a certain period, makes his debt to the government about $5000, according to revenue officials.
Yesterday morning Meyers and Weldon went to the Strand theater and took possession of the books and records there. They saw Gordon then and he was to return to the theater later, the officers believed, but instead Gordon went to his home in Ludlow, where he was arrested in the afternoon. He was charged with violation of section 702 of the revenue act of 1917. Under section 702 an offender can be fined $1000 for each month he failed to make a return.
The arrest of Gordon is preliminary to an energetic campaign which internal revenue officials will wage against offenders. Great leniency has been shown offenders to date, but now a different course will be pursues, according to the internal revenue people.
Mr. Gordon this evening denied that he had failed to pay his war taxes this year. He asserts that everything would be straightened out in a day or so, and that his hearing July 2 would be only a formality.
From The Springfield Republican.
