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About Medford mail tribune. (Medford, Or.) 1909-1989 | View Entire Issue (March 7, 1963)
loverament Seeks First of Two Parts By FRANK H. BARTHOLOMEW United Prut International San Francisco - flJPt - The government of the United States is about to come to grips with a former news paper reporter who took time out to make an estimated $150 million. . His name is John A. T. Gal vin. The Treasury Department says he owes $21,546,898 in back income taxes-the largest claim ever filed against an individual. Galvin is now in Dublin. A jeopardy assessment has been filed In San Francisco against his properties in the area. Similar liens have been placed against Galvin's 77, 000 -acre ranch holdings in Modoc and Lassen counties in northern California, and against the fabulous Rancho San Fernando Rey near Santa Barbara. The Internal Revenue Serv ice claims $39,054 for 1954; $1,157,200 for 1955: $10,266, 249 for 1956; $450,281 for 1957; plus 1956-57 gift taxes of $9,348,491, and an addi tional $298,000 for gift taxes in 1955 against Mrs. Galvin. Five other persons involved In the management of his for tune are joined in the 1956 1957 gift tax claim against Galvin. Internal Revenue Service records indicate that the claim against Galvin has been top ped only by a $Z3 million lien placed against a foreign cor poration alleged to have had income from, the United States. "All income taxes claimed are capital gains taxes on funds received by Mr. Galvin before he was a resident of the United States," his finan cial counselor, John Collins, told United Press Interna tional. "John Galvin has never evaded taxes in the past," his attorney Robert S. Cathcart, said. "And he hasn't in this case." Cathcart indicated that the claims will be opposed in the Payment U.S. Tax Court Galvin, in his only statement to the press since he arrived in Ireland, says he does not owe . the taxes and will fight. Galvin has 150 days in which to ap peal to the Tax Court to have the liens lifted. This deadline expires early in May. Walter R. Stumpf, assistant director of the Internal Reve nue Service in San Francisco, said the fact that Galvin left California for Ireland was suf ficient grounds for the jeop ardy assessment. The govern ment uses this approach when it appears that property may be converted to cash by a tax payer planning to leave the country for good. - Galvin is an Australian. His defense is that he did not earn the money in the United States and that he was not a resident of the United States when he did earn it. The general contention of the Internal Revenue Service is that Galvin's family lived in the United States during the relatively short period of four years" in question, that he had attempted to protect them from American income tax by setting up a trust prior to their, arrival, and that despite his contentions he was a de facto resident of this country when the money came in from the Orient. Galvin is an unassuming man of slightly less than aver age stature, with a round face and round glasses which give him. a somewhat owlish ap pearance. He did not inherit any of his fortune. Of Poor Family, He was born in 1908 into a very poor Australian family, one of seven children. His father did odd jobs around His Majesty's Theatre in Ho bart. As soon as he was old enough, John sold news papers. The father saved enough money to send John and his brothers to St. Virgil's Chris tian Brothers school in Bar rack street, but soon found he could not maintain the cost. The Brothers waived the fees because the young Galvins were exceptional students. Later and mora recently, John repaid the Christian Brothers with gifts to St. Virgil's totaling 150,000 Aus tralian pounds. His courage evidenced itself in his boyhood. When he was 12 and a poor swimmer he saved a friend from drowning and was awarded the Royal Humane Society medal. Later, as a newspaper re porter in Hong Kong, he went into the mountains on a dangerous mission to inter view a tough guerrilla named Mao Tse-tung. Galvin left school in Hobarl at the age of 15 and went to Melbourne. Here he became a messenger boy at 15 shillings a week and sold newspapers on the side. In 1930. after a brief fling in London's Fleet Street, Gal vin got another job in Mel bourne soliciting advertising with Gordon and Gotch, pub lishers and news agents. Here he encountered a setback and an asset, almost simultaneous ly. He met a fellow Austral ian, Stanley Smith, who was doing the same work. This was an asset, because later on when they became partners they made an estimated $375 million together. The setback occurred when Frank Taylor of Gordon and Gotch fired them both. "They were no good at sell ing classified advertising," Taylor said. "Girls were bet ter." Bereft of their jobs at four of Inluge Income Tax Olaim Australian pounds per week plus commissions which thoy didn't seem to be able to earn, John Galvin and Stanley Smith went to Hong Kong. . Joins News Service ' "I got a job wilh the Unilcd Press," Galvin told this writer last year at his 35,000 - acre Rancho San Fernando Rey, near Santa Barbara. SECTION B PAGES 1 to 8 MEDFORDiiTRIBUNE MEDFORD, OREGON. THURSDAY, MARCH 7, 1963 Records of the news serv ice's bureau in Hong Kong in dicated that very little of his' S150 million was accrued at this time, ' j ! ' i During the war Galvin worked for the British Min istry of Information in India and Burma. After the war he became a top echelon man in the Hong Kong government's Department of Commerce and Industry, and simultaneously wilh Stanley Smith became involved in the operation of several commercial com panies. . . One of them brought -him back to journalism again; he became among other things, a director of-the China Mail. This was the newspaper for which be had obtained an in terview with Mao TseJung. Later the Mail was merged into the South China Morning Post, and Galvin and Smith went to Malaya and bought an iron mine. They negotiated a contract with the government of Japan for its output, organized a steamship line to deliver the ore. and started the acquisi tion of fabulous fortunes in a relatively short period of time. ' - Friday: How John Galvin hit California. HELP 13 US! We need clothing, shoes, dishes, furniture, end bedding. We Pick Up. , . HELP OTHERS! The Salvation Army . 30 N. Holly 773-7335 ?4i -c OBJECT OF CLAIM John A. T. Galvin, a multimillion aire who came to San Francisco via Australia and the Far East, and has since departed for Ireland, has the distinction of being the object of the largest back income tax claim ever filed against an individual by the U.S. government: $21,546,898. 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