The Washington herald., 1913-04-13
QUIET MARKET;
SOMECOVERING
New Financing a Handicap to
Securities and Not
: Popular.
GAS SHARES ARE HIGHER
New York Banks Gain Cash Railroad
Earnings-lncome Tax.
Weeks Record.
GAS SHARES ARE HIGHER
By i. A. FLEMING.

SATURDAYS halliday session on the
Stock Exchange was not attended to any
disposition to engage in large operations
but rather to limited covering Of snort
contracts in an evening up process over
Sunday and the morning half-holiday on
Monday.
The total sales were $4,000 shares, OF
which $4,000 were sold in the first hour
Time and again the ticker rested from
its duties and the fluctuations were IN
the narrowest of ranges, none OF them
being important and but few stocks NOV
ing one way or the other TO any extent
Wall Street is little more inclined
to pessimism with each day. The COM
plai4 5 are being heard from all
sections regarding the tariff changes ana
resultant damage therefrom To business
generally; the certainty that financing
is badly needed. while the public is once
again disposed to let the bond market
alone. 1t is likely, however. that Wall
Street will stand back of its securities
when new issues are coming out. 1t has
been the record in the past, and unless
1t is repeated and interest rates are
high. new financing will probably not be
announced.
But for changes that are evolving
through the advent of a united and
Understanding democracy, con-
ditions would be full of encouragement
Railroads reporting show good earnings
the crop outlook is good, steel mills are
operating to capacity. and where there
is delay and hesitation it is due en-
tirely to the knowledge that before long
the new tariff measure with its slash
ing features will be enacted.
The Income Tax.
Congress plans to follow the English
system and secure its share of the in
come tax at the source-that is, where
ever a corporation pays dividends or in
terests to any person in excess of the
minimum free minimum income, said to
he about $4,000 the amount of the tax
is sent direct 10 the government.
II is expected that this provision may
induce considerable selling in an attempt
to avoid this collection.
Others may liquidate because of the
fact that they prefer to pay their own
tax obligations
Commenting on the proposed measure
the Wall Street Journal has this to say:
AS the measure stands, the income
tax will be evaded by crooks and paid
twice over by honest men. rail-
road receives dividends from a controlled
road. 1t pays dividend to holding
company. which in turn pays a DIVIDEND
TO the security holders. In each case the
income tax must be deducted. In other
words il is collected four times on the
same income. This is the plain mean
ing of the act and is here offered as
legal opinion of higher authority than
anything Congress can show AT present
In numerous cases the tax is imposed
upon itself This preposterous conclusion
works out where bonds like the Carnegie
5s of the United States Steel Corporation
are guaranteed free from taxation under
any present or future law. This means
that the United States Steel Corporation
must pay the full income tax on Sl5,000,coO
and must add that tax to its operating
expenses, because il cannot under the
terms of its mortgage collect cent from
Mr.. Carnegie. No wonder that gentle
man approves Of the income tax. II he
ultimately follows his own suggestion,
and dies poor, it will not be because of
his contributions to the Federal revenue.
There are good income tax laws, and
eouitably levied income taxes, in other
countries. But our lawmakers must
evolve this hideous botch without con-
sultation or comparison. They are, i'm
fact. handing over the power of legisla-
ton to the courts; who must as best
they can. read sense into this shapeleSs
tumble of inconsistencies. An income tax
i a fair tax i'm principle, and one which
can be fairly collected in practice. But
is to enact litigation, With the active
possibility that tlie vital portions of tn
measure will ultimately be declared UNI
unconstitutional
Fluctuations.
1t was noticeable fact that the ad-
vances yesterday, made largely i'm the
final hour. were in the active trading
group, almost without exception. And
they were limited in the trading favor
ties to 3-Sa1-2, although St Paul moved
up IS Canadian Pacific and Lehigh
Valley were firm. with SIS and Ia
points betterment. respectively.
And vet, with the show of strength,
there was no activity.
few. a very few. inconsequential
stocks were a little easier-just frac-
tons.
During funeral services for the late j.
Pierpont Morgan on Monday morning
the stock exchange will remain closed.