STOCK ,
QUOTATIONS
Furnished by Maples a Goldsclmtldt
High.
Alllt‘tl Chemical 15’,
Allis Chalmers 4i 7,.
Am. (Tan H is
Am. Ice ins
Ant. Loco. 127“.
Am. Ship .K Film. in 1,.
Am. valtn-ru .7635
Am. Sugar 76 .
Am. Sum. l‘oh. 28
Am. “m. .s‘. 'l'.-1. 1:354
.\m. 'l'oh. 15m
Am. \"tiult‘ll 9.3""
Anaconda. filllli’
Atehison 103$.
llnhlwin Loco. Jam
Hull. 8:. Ohio 42 ,'
Hath. Stool 605‘,
l‘nl. I’elt‘. 67“;
Win. Pnt‘. lifi’i.
t‘on. Leather :13
t'handlr-r Mot. (it
(‘hes. .i‘r Ohio Ti *4
i‘nn. Gus 111:1,
f‘hl. R. I. 32‘
t‘orn i‘rmlm‘ts [Ill
(‘rucihle Ffm'l 7i ix
t‘ubn Am Soc. 41:1";
l‘fnllir‘rlll Johnson M 7;,
i“nnlfill‘l l'l‘nvrs‘ till-J
Fisk lrul-lu 1‘ li‘. l.
Gen. Asphult 501.5
("lo-n. l‘I'rl'lrlr‘ Ml“.
Gen. Moron: 17.7;
floovlrirh .14“.
Grt. .\'m-m Pr 7:".
art, Nurlli, 011‘ ill 1;;
lnsplrnllon f‘ 7363;
lnl..‘lnr \Ifl?‘ l‘f if:
Inf. valivl 11“"l
lx'nnsdq (‘llx- ,k'r» tun;
Int l‘npcr 52":
Kell' 5“ Hut}, .4411.
Kenn. Copper
Keystone 'l'lre
. Miami Copper
‘Middle States
N. Y. Central
N.Y..N.H. &. H.
.1:30.'Pun Am.
Pullman Co.
liny. Consul.
linyul Dult‘h
Sears-Roebuck
, Sinclair on
90. Railway
SONJI‘f.
Tobacco Prod
l‘n, Rut. Stores
i'. 91, Really
‘ Vnmvlinm Stevl
.‘~\Vcst. l'n. Tvl.
“’cwt. Elev.
rally: Div.
lili‘k ipnllf‘l‘ tn
, I
”“4 '\\'HI hr performm'
tho sivu—m'o mph and one wnmnn—— conncction with
Al of Mr llOlllr‘S \w'rv taken Lunch-y.
mmlicul f shine whisky
'Tu'n olhrr mcn who purtook of the
liquor wrre blinded and (1 score made
t‘xuminnfion.
ilrr‘l llnm within ill" mim-
lfl '-. ‘rrt of n‘lm'hc u of tim- “'nsl
f
The s itntion. for the taxation of
corporal on surplus or stock leI-
(lends representing transfers from
surplus account to capital account.
has been revived, and is at once the
came and result of numerous stock
(lnxtrlends recently. The announce-
,lm‘nls of these dividends, which
nmler a decxsion of the U. S. Su-
tprune Court are nondaxable for
t. .- wry 'ood reason that they do
’nul lrlms er anything, has excited
is iortion of the public,
lcrstands them to be a distribu-
[Inn of profits, and prompted a de-
mand for more taxation. , lathe”
other hand, the revival of t e de-
'm.md for the taxation of such sur—
plm: or stock has naturally prompt-
«cd corporations to complete any
action of the kind they may have
been contemplating.
What Is a Surplus? ~'
It is not strange that man
ple should be unfamiliar wit
porntion finance, in which the term
“surplus" is used
‘sense. In the case of a cor oration
it does not mean cash on
an excess of any kind of assets
pvt-r its needs. but simply an ex-
cess over the sum of obligations
and capital stock outstanding. The
"surpliil" shown in a corporation's
statement may be. and
.is, all invested in buil
chincry, and necessary Working
capital. In the operation of the
‘ lbusiness it is
lllli
in .
lNhen it comes to taxation, indi-
. vidual proprietors and members of
partnerships pay the regular per-
sonal income taxes upon that por-
tion of the profits of the business
which belongs to them. whether
they withdraw any part of it from
the business or not. and that is all
jibe taxes paid upon those
he profits are counted as ncome
to the proprietors once, and that
is all.
The Corporate Organization
. The foregoing is something to
bear 'in mind in considering what
is just and fair treatment as be-
tween persona who choose to carry
nder the corporate
form and those who carry on per~
; haps the same kinds of business as
individual roprietors or in part-
, ncrships. rom the standpoint of
. public policy. there is no good m-
on business it
son why the
discriminate a
greatest agencgi
'widesprea
.ownership ,of large undertakings.
‘It is the moat practicable means
promoting co—oper-
on a largescale.
I become common p
corporations operating public utili-
ties to sell their new stock issues
to their patrons
a notable ‘example of me
tnbution being the case of
American Telephone
graph Company,
35,000 stockholders.
46,000 are telephone
Although a great
business of the
on by individua
partnerships. in many
nations are of such use
qmnnf so great an investment of
. that they cannot be handled
. ‘ y and for the be
Vice oi the public except b
s. It is not dcsirab c that
the development of in
rge scale shall be li
available for
stive industry
"pita
‘econonxicall
‘videals ri h
pious or
0th
.
in a technical
indistinguishable
from that part of the capital repre-
sented by capital stock.
An'individual in an unincorpor-
:ated business does not have sur-
. plus in the same technical sense.
nor does a partnership. because
they have no outstanding stock.
They do not ordinarily make the
distinction between "capital," “sur-
plus" and “undivided profits" that
is done in corporation bookkeep-
Government should
inst the cor
form of prop etorship. It s the
in existence for the
case. but has
which he is an
tion pays 12%
small stockhold
er of small
many stockholders
States Steel.Corpora
large corporation whose total in-
malre them subject
which has over
of whom over
portion of the
COuntry is carried
rietors and
nes the op-
gnitude. re-
comes do not
to surtaxes.
scheme of taxation is ri
taxes upon corporation
surplus areflall ngfll .
W one I 011
they are distributed
holders. according to the
comes of the several
The Law Regarding Surplus
ment for the taxation of
on surplus is that if_eor-
permitted to secu-
tn their tressuries
to invest them out-
tbe stockhold-
dustries on a
nuted to indi-
ugh to own them
Plftnership with a few
The stock
mace
scale
C 2110
ed the way for gen-
ln industry on a
, of small enter-
.‘ 'I" Q" “’9 “WWI on the
' ‘ Utilisation.
. ‘tbls
9%
275's ‘
115/.
26%
25%
95*
21—3;
7654
47%
95'
Pete. n 87%
132‘4
141/,
9* u:
23
Iain;-
RS7;
9M.
32".
2:1".
4M;
117i;
2111.
HOT;
477".
83%
7434
WA.
53
10714
1207'.
am;
an".
11211.
cm;
NE‘V YORK PVTRA DRY.
NlfiV YORK livo. L'f‘..--«»~\\’hiio pnllt‘oa
l‘lt‘Ol'llS show that yesterday wnu the
(‘hrislmna in
litmr.
m1 llw
ttndlng’ lho
il
,'-‘. l'wrouuhl to linr thorn on a charm
All; llllOVlt‘iillOn.
operate laundries, creameries. grain
elevators, retail stores. small fac-
tories and other concerns in which
it is desired to have many persons
interested in the business.
, We repeat that there is no
reason why the persons dcsnring
to conduct any DUJlllCSS, whether
large or small, under the corporate
ownership,
placed by policies of the Govern-
ment under any burden or disad-
vantage as
vidual proprietors or ptrtncrships.
They are entitled to like consider-
.ation and similar treatment.
Personal and Corporate Taxation.
As we have seen, individual pro~
prietors and partnerships are taxed
n their profits once for all, and
rwsrd may leave them in the
business or take them 0
Their taxable incomes (in
excess of personal exemption for
normal tax) to the extent of $4,000
per year are taxed 4 per cent, and
above $4.000 hear a normal tax of
8 per cent. and the regular sur-
The corporation is taxed
12% per cent upon its taxable in-
come. :tnd any distribution of that
income to its individual stockhold-
ers is taxed again upon the same
basis! for surtnx, as the income of
inrllwdunl proprietors and partner-
ln other words the eflect is
business as a
Vaper cent tax
compared
this: parties doin
corporation pay a
on the net earnings of the business
instead of the 4 per cent or 8 per
cent normal tax which individual
proprietors and partnerships pay,
and the same surtaxes as the latter,
upon all their income from the
corporation dividends.
Although it is argued that! cor-
poration is an entity, and as such
properly subject to taxation inde-
pendent oi its stockholders. it is
evident that all taxes paid by a cor-
porationcome out of earnings that
are destined for the stockholders,
and while moderate t
as compensation for cor-
porate privileges, it is evident that
they involve double taxation, and
to that extent penalize the use of
the corporate organization.
over, heavy taxation of corpora-
tion earnings are inconsistent with
the whole scheme of graduated
fall at the same
rate upon stock oldcrs with small
incomes as upon stockholders with
The present 12%
per cent tax on corporation in-
comes is a heavier tax than many
shareholders would have to pay if
they received their portion of the
' gs from a partnership “in—
of from a corporation, and
iscrixnination will be made
greater if corporate taxes are in-
taxation for the
large incomes.
The "surplus", or undistributcd
rofits of corporations. equitably
ciongs in due proportions to the
small and large stockholders ac-
g to their holdings. The in-
roprietor or member of a
xp withdraws profits from
ess or not, as suits the
aid the surtaxes to
ject. The corpora~
per cent, but no sur-
the
shown, i. e., the imposition
usted surtaxes upon corpo
would be manifestly unfair to the
. er or the stockhold-
income.
porations were
mulste esmingb
indefinitely. or
side of the bus
err subiect to surtax
payment got
mo.
y. Ebflicnm“? ewth‘W’
men
Elston was urr min!
of ‘ ncrr‘ fnrm on a wnrrnnt sworn
I \i’hcn nrrnlunr‘d both grip.
L CORPORATION SURPLUS AND STOCK
By GEORGE E. ROBERTS
FROM THE MONTHLY BULLETIN FOR DECEMBER ISSUED BY THE NATIONAL CITY BANK OF NEW YORK
earnings occurred they would be
liable for the surtaxes. but the
distribution might be postponed.
On the other hand. it would not
be desirable to compel
tions indiscriminately to divide all
their earnings
growing business is constantly re»
quiring more capital, -nd it is the
common practice. not only 0! cor-
porations but of individuals and
partnerships, to allow a portion
of their earnings to remain in the
business each year f 1' its develop—
ment. The history 0
important business
it was. built..up
nearly every
will show that
in great degree by
see It would be a serious
handicap upon the corporate form
of organization it it was not given
the privile
has been regarded as sound, con-
tive and praiseworth
for a corporation to bui
surplus account—representin
plus assets—over and abo
amount required to cover its obli-
gations and outstan
stock. The position
poration as an industrial institu-
tion, as an employer of labor, as a
borrower of money, as a supporter
. us a factor in many ways
. egular life of the commun~
xty. is strengthened by the policy.
It a pears that Congress took
acts into consideration and
did not intend to interfere with
the normal and
meat of business.
ever, to provide against accumula-
tions of “surplus" for which there
is not legitimate use. and which
there is good reason to believe ar
held for the purpose of escapin
or postponing the application 0
the individual surtaxes of the Rev-
enue Act of 1921. section 2-
vides as follows:
ding capital
proper manage-
In order. how-
or organised. ismsrmrmiled of
purpose of preventing
a
medium of perm'
t'ed there shall be in
collected. and paid to: «ca
upon the not lame
the imposition o! the
axes may be
and profits to
e fact that any
holding company. or
acie evldsues at a
cape the NM' but
ate and become
construed as evidence
caps the tax in see
missicuer certifies that in his
accumulation is
figisls s
313ml:
Impossible to Distribute Invested
If legislation is adapted for the
of corporate
such, it is bound to
two efiects :, It will 2i
ustly the interests
ders whose total in
make them
have one of
ther sacrifice
of the stock-
Drapcrly 33522." 3°53
s o s
i will farce
distribution of the surp
ch is practically in:
one cases where the sur»
been accumulating for
and is invested in
| capital needed
operst ons.‘ In either
egtslation would cause
tax levied upon sur—
sctzive, reaching
t was left from tax.-
ll previous years. films
will serious y
posnl. but e
members of t
considering it.
man! ”I”,
at and workin
ease the 1
plus would b
in a). United back into who
tion and every
videutly not
earnings or
The profits
d be taxed as
to the stock- Nth ' h
company a surp
sometimes started
stock at a premium,
Totaney
stockholders.
iueas,
,5.” ‘ ‘29”
V ' I ' ' ‘ ' m. sflscts 3t
authorities at Oklahoma City. Okla. ”mums .
‘sn operation performed by Dr. John c. Hubbard. shove risk-$3311 Hm“
mond Baker, 1s. left. who had been arrested for automobile tendencies.
'bard says he expecta_the operation tovcure the boy of criminal
! TWO'MOONSHINERg
ACCUSED 0F MURDER
SHELBY, Ohio. Doc. 'B'l.—-—I’liilip
497a mummy 511v rlcnlhs worn nttrihutrni iwflVrlmmoll, 36. art-l lmstr-r T‘llsion, 35.
I I Autopsias ‘ tire lwing‘ held to tlu- ltichlnnd County
navilvs ntiGrnnd Jury on churgcu of murder in
”if tit-nth of
drunk moun-
Henry S. Lockwood ot Elmwood
avenue is confined to his home with
If a business is growhg it will
need more ca ital snd‘ths readiest
way of re ding it is by allow-
ing pro ts ”Reticulum firuom
ear to year. Wu es
or expansion are it is often
the case th t only a small share
of tiref esrnn s are divided. a'nd
not :1 requent y campus: or
years without paying anyld‘ngends
in same; 92‘ .51“, bus’l‘lmtl: profits
to eve e or (e -
ting it into a strong financial posi-
tion.
In the run, however. stock-
holders wau to participate in the
company's prosperity in a ts ‘ble
manner, and where the s is
widely distributed a con-
siderstion for the d circum-
"‘.‘.'33 liulhalmmu' “m lit:
re
:lhe mambo mhpmflfron
me to as as-
sets and earnings mm This
is consistent. however. with the
policy of continually retaining a
part of the earnings.
When the condition of the eons-
Eany justifies an increased distri-
‘il’ZS ‘° 'u”°""°.'§,°{i “in?”
se at ca to cur-
rent esrnpgp. A gr business
does not distribute a which
is part of its working ea ital. It
may raise the dividend rs e on its
outstanding stock, or it may eou~
:erti ai portion of the mus“
un nto runnent ca
means of w at is called s ““02;
dividend.” This is done by lamina?
to Itoaleholders a given amount
new stock. in pro to their
holdings, agd millet: abookkgp-
mg entry y w t ”In” "
fund is reduced and the ”capital'
fund is increased to com
with the amount of new s
NotaRealDlvldsod
The fact that such an issue of
stock is called a “dividend” seems
to have led many persons to thin
‘i. ‘rmp'mffi‘ m3: “2%..
t e , a on
den t is nothing of the kind.
It isnotapayaenttltisuota
dist‘rgbution. 1:130 no fitdle to
any n that r net
own be ore. is changed.
ex t that - share
0! t e fl been d
on the e! the into
on ital, and he is a cer-
ti cats represeu that coin].
The company'ussets are lost what
they were be e and each stock-
hcalgeri’: interest in 3a is lint
w t was before. 0 value as
been created or distributed There
an“ ht mister: “ .
upon t 0 can such
:1!“- into ‘cs u for levy»
g a tax on s of a new
set of book». In lus" is
part of a corporation’s ca tel. A
stock dividend dedicates It perma-
nently the business.
The reuse Court of the United
States, th ease of Eisner v.
Mawmber, & U. S. , which
it held that stock were
not liable for taxation ,as
under the law. said: _
29.2 I'my‘bomya'll"* "-5
or its Mum” 3’
3......“
[well-known
lar of his home.
admitted selling the liquor.‘
which the authorities believed con- .
ruined wood alcohol. but pleaded not
guilty to the charges of murder.
When officers arrested Eaton they
Iconflxated a still and six gallons of
liiquor. Elston said. according to the
officers, that he had been making the
whisky for several months and that
no deaths from it had occurred pre-
vious to that of Langley.
x ‘7 J..-
tots has its bodies machined en;
tirely ot dull gold me “than:
row of medallions run, son .ths
straight. full skirt. ‘ , ,v
it
acrimonious“.
Batik blouses and the weight-line
duvetyn blouse. both of which have
been eo‘populur this winter.
be carried over into spytg style-
with new touches about the neck-
line and sleeves. _ ‘
GRANGE MASTER .UIOIDI.
HARTFORD, Dee. It—lv‘runk Hor-
rls. 35. master of the local grants and
' gardener. took his
own life by shooting today in the cel-
He was ill from a
nervous breakdown. He leaves a wire
and child.
’ Finds-Treasure
l tenlthunun near Lunar. hypt.
A stock dividend is usually“:
preparatory step to a W: -
tribution of earnings in the future.
The dis however. any not
begun at ones. s rats
of cash dividends h reduced. so
that the amount of money received
b the stockholders is no greater
an before the new stock was is-
sued. Whenever the actual distri-
bution of earnings to stockholders
begins the payments are and un-
der the present law. It looks like
on mass of seal to insist upon
aprelhninarymm
NotBsoskWassclug
Mismfieofngdtockbythe
can so We.
call ‘wntel'ingthestochhtt
thislsuotseeerdiugeuthseesu-
mound?» mango!
theta-In. thtrusthstthsvalus
etthsoetstau stockisrsduesd
tocorrespond thmehereased
haugbutltlsnottrusthstthe
new stock has nothing behind ll.
lipaidfortrem earn-
lugswh
ich have ab-
stained trom withdrawing from the
treasury it is as fully covered as
the stock issued against payments
into the treasury.
Tbs lattes *
it the new steel: Issues muster
no values. represent no values that
did not exist be and no
claims to dividends at m t not
tienes which causes some Isu-
islstors to insist upon the t
12 instead 0! 6 under sans
stances, in order the
goekholders may have b N
her taxes. Th W ”0&-
hoder will Magma. reten-
tlouotthedpsrecuttorsheen-
largesneutof
fig“.
unto
l
l
l
study of photographs Dr. W.
'Campbell. above, took in the South
Seas recently during a. total eclipse
‘be new head 01ng University
" 1m
AT THE OPERA.
orod Ostrich.
NOVEL TRDMNGS. "~
SibelJ-v'c'lr'd braid is used to
width.
DIVIDEND ~ '
Oil Company of New Jersey for its
recent conversion of surplus into
capital was that it has adopted
plan for inviting a partiespa' tio
of its employee
eon:
last name have reduce the par
value of their stocks to $25 for
this se. They are more read-
ily purchased by persons of mod
erate incomes. The stocks of lo
book values sell relatively ”be:
than those of lath book ace.
and announcement of in
this respect sleet user-bet
Nem_dflndm,
‘ h’willbeseentbst thereisn’oth-
ingin the accumulation of sleet:-
mteoo ration surplmor' t
cm of a stock divli'ileu;
that is in evasio- oi the law or
.tlsfi accomplishes any mat
escape from taxation. Upon all
carpeted? rofits above the ex-
emption $.01) when profits do
not exceed “Am-co causation
above—an income tax of 12 Jes-
oent is now paid. whether ey
are retained or distribut and
whenever any actual distrib to
stockholders talus place the latter
must ps the incotne surtaxes to
which ey are subiect. If the
card of corporations are re
talned :- use in the business, they
will accumulate and eld more
taxes whenever dist ution oc-
curs. They are practically money
at interest for the vernment, for
they are bound to one subject
to the nonal tux sooner or
list"; «The uoclhdii'm or their
ever get anything from them.
The Standard Oil Co of
New Jersey and the For otor
Comp. aford the most striking
illustrst of great businesses
built up by reinvesting and com-
pouu their earnings. In both
cases it results have
due to the bemoan!
“(:5 the p Y cussed for
M lieu. In to t If“! .8-
tsnt ghee. been a closely 53:31!
,‘ MInthelasttwenty
ti: (1 Q-
s'etber. an?» ammplisb that de-
t, b the reinvestment of
earn either by oil companies
or automobile i has not
been a policy limo e public.
.Nelther company could have played
thorn Elia; ithgu in the ex;
on o t e ustry, or psi
5:: taxes that it has. it it had not
been allowed to accumulate and
capitalize earnings. And the
ertles that have been budt up n
each case are certain to be great
revenue-producers to the Govern-
ment for years to com
TbePopulas-lrror
we!“ error-which is
fit them for 3;
g o
men were cutting
struck his head a.- it tell:
BECKER smgr nus
\
NEW YORK. Dem
tenced to die in the
Sing Sing tor the run
found Imral weeks
tilled grave in the Bro
Judge Gibbs dec
should be executed a
February 6.
reed that Becks
r
urlng the Week at
The annual member-um
ot Ponassus Council, N
Arcanum will be h
gather with elect
gathering to be held in t
I‘ellows' Hall, South Mai
Hanford Place.
core will be present an
also be delegaticnr fro
Bridgeport and Milford.
hers are expected to be in att--
this evntntt.
old this evading.
Gm d ,
or the sun. Campbell is slated to ” mm“
L
One of the most gorgeous gowns
yet seen at the opera. was or sliver
brocade. slight shot with' black.
with a single shoulder drape. nnd a.
one—sided drapery on the skirt. With
it was worn Russian head-dress of
diamonds, and a (an of county-ecl-
Members of the 1918 class 0: ll.
Stnior High School,
ht at the Royall James h
(1 its fifth annual reunio
members of the class are
be ‘preeent at the nn'air.
of 1918 is the only class to
ceauive reunions. Hurry Blak
of Norwalk, to-
who was scheduled as in
will be unable to be
Raymond H. Brady,
clu- wlll talk.
some or the new spring coats of
lhlil and whipcurd. 0n others are
inlays or tan vledyn or halt-inch
president of {h
The toastmaster q
the occasion will be Herbert Roth. .-
. O O O _
ter have the es
the inasmd the
could have m it in
9
so. and proceedto
. divide and coast: e the came
th That true. and“.
is thevsrypointtowhichwesrg
attention. It
wheiu nvate capital ceases to
cap be
tint. and is eonvermd
thing to be consumed
the its employs:
purposes ceases. h
This bells so, what logic
disturbing! a corporation sure.
I implored h
industry. for the
laghadathes
M leadership in industry,
counted iot- nothing and tint
Norwalk Chronicler