The Washington herald., 1913-09-12

116 S-4aI1T. Odd lots of railway common
50 1-2. preferred firmer, sales being made
at So.
In three lots, twelve shares of Ameri-
can Security and Trust changed hands
at 2g7 is TO 302.
Gas as, 1O7; Railway Is easier at So L.
Odd lots Steamboat SIS, los.
New York stock Market.
Because they run in the shorts on Tues
day, and for the further reason that they
did not obtain encouragement TO their
wishes, that $6S.OCO,OOO in the Union Pa
cific treasury be divided, the bulls were
bears yesterday, and the market was both
dull and lower. About a point net loss
tells the story of the action in the lead
ers, with strength in Sugar. Beet Sugar,
Virginia Chemical, Harvester, and West
ern Union.
The market rallied a little from the
low on covering. At one time Union
Pacific was off l 81, but recovered later
on. Reading was relatively tirmer than
Union. Steel lost 3-S. but recovered TO
I63 3-i as compared with closing We'd
nesday of "a Is.
New York Central lost a point, Mop
i1-2, Great Northern 5-S and Copper ana
Smelling 5-S each. Atchson and Canadian
Pacific sustained the average loss. a
point. Mexican oil weak and a point
off
The street was without news OF sum
cient Importance TO create any especial
movement in values; the adjournment OF
the Union Pacific directors meeting with
out tapping the s6S 100000 being most ef-
fective action or inaction in its effect on
stocks
Thrift and Income Tax.
Merchants in Chicago and elsewhere. big
distributors. have declared that the enact
ment Of the Democratic tarin bill Will not
make much difference to them This
seems somewhat different than the testi-
mony at the hearings.
The income feature of the measure con-
tains many features that will require
much effort to work out The Wall Street
Journal presents one OF the points in
question, and comments upon it as fol-
lows:
"Onc of the Senate amendments to the
income tax provisions Of the pending
revenue bill provides that for the purpose
OF the tax. income shall embrace the
share to which a person:
e We I'D be entitled of the gains and
profits II divided or distributed. whether
divided or distributed r not. Of all COM
panies. whether incorporated or partner
ship. formed or fraudulently availed of
position of -uch tax through the medium
Of permitting such gains and profits TO
accumulate instead of being divided or
distributed.
The interesting question arises. Who
is to determine w 'ther a going cor
poration has been 'fraudulentlv awaited
Of To escape the income tax? The SEN
at" bill. however. is not silent on this
pint. II permits gains and profits TO
'UnlUlate up to the reasonable needs
: the business but il already accumu-
lated beyond that point this is 10 be
prime facie evidence OF a fraudulent
purpose to escape such tax and it is
let to the Secretary of the Treasury
to certify that in his opinion such aC-
emulation is unrea SOM lie for the pur-
pose OF the business
"A new and highly important power
is thus conferred upon the Secretary of
the T: easury He is not specifically au- !
thorized to prescribe methods of account |
ing to corporations. but this would be |
one of those anCillary functions which |
nderany administration would be natur- |
ally assumed as a part of the broader |
authority to decide what surplus a cor
poTation was entitled TO accumulate.
Hereafter, therefore, the corporation
which is making money rapidly must
lake care not to strengthen its surplus
mduly. or it will [Ill under the eagle eye
Of the Secretary Of the Treasury. who
may certify that such accumulation is
unreasonable for the purpose of the bust
l-ss.
W, II. ~ :. Declares Dividend.
Tie Washington. Baltimore and Annap-
1l.s RailNa,- has declared a dividend OF
- per cent on its preferred stock. pay
able September D.. to holders of record
September 70.