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. (UP1)
for Your Convenience Savings-Big Double load Wuhan
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