Evening star., 1915-01-29


vtdends and cutting off of dividends
entirely. p. .edict that there Will be
great shrinkaGe in the corpora tion TAX
and the income tax as wen. "h'ie the
returns from internal revenue must
also show lessening amounts win each
addition of dry" territory.
Reductions in Gross Earnings.
The United States steel Corporation
formerly paid s25,Ooo.0o0 year to its
common shareholders, today 1t pays
nothing.
The net earnings of this corporation
in 1914 We're s63.000,00O less than IN
1919 Scores of other big corporations
have reduced or eliminated DIVIDEND
paying entirely: the railroads have not
commenced to show the Increased earn
incs incident to higher freight rates
and the reports are showing continued
decreases. In the month OF DECEMBER
Baltimore and Ohio lost s1,SIs,40l IN
gross earnings, as compared WIN lhs
same month of last year; Chicaso ana
Northw estern gross earnings decreased
in the same month S22S.62o; Central OF
Georgia's gross for the same month dc.
creased s313.427, Illinois Central lost
over S5S0,000 and the entire railroao
exceptions. showed more or less severe
decreases; and these reports OF reduc-
tions have been coming in month a1ter
month.
W
gross earnings, it Is not unreasonable
to expect loss of over 10 per cent IN
the corporation tax, especially when
such great corporations as the steer
Company, the International Harvester
Company and other important indus
trial concerns have made such poor
progress that their directors nave
found it necessary to cut down the IN
comes of millions of people by reduc-
cd and passed dividends
And each dividend reduction, eaCn
passed dividend, makes a cut in the
individual income taxes. Whiie enorts
are being directed toward bringing out
larger income tax, the chances are
that thousands who contributed to the
last income tax payment Will make no
returns this year.
The next FIVE months of the govern
ynent's fiscal year will probably show
Improvement, and there Is some en-
couragement in that fact, but the i'm
provement is just starting and has SO
far made comparatively slow progress.
Fortunately the exports far exceed
the imports. although lessened imports.
while aiding in holding trade bal
ance, cut heavily into the tariff re-
turns.
Steel Common, Forty.
\ new minimum of 40 was fixed by
the New York Stock Exchange gov
srning committee yesterday afternoon
for steel common, and the stock sold
there this morning to the minimum
and slightly better, while the rest OF
the market was comparatively nrm AT
about Thursdays figures. There are
between $1,000 and 10000 shareholders
of the common stock of the Steel Cor
poration.
When this army of people have their
annual incomes reduced by s25.o00,0 900
II is but natural that they would be
inclined to change their investments.
even with slightly better prospects in
view. When this disposition to liqui-
date is helped along BY the heavy call
ing of loans secured by steel COM
mon as collateral, 1t produces more or
less disregard of prices. selling being
the chief desire. Thirty thousand
shares sold within the first few min
utes of today's session.
Local Securities.
There was no special change in the
local stock market today, the only new
feature being little better demand for
bonds Potomac Consolidated 5s at
ssis, Traction 5s at 1868. to l061a and
railway As at 81 furnished the bulk OF
he days business.
preferred were made at 50. Bids on the
common stock were s61a and the ask
Ing price 90. :
Washington Gas was firm at 76.
Postal Savings Deposits.
Postal savings deposits have been in
creasing at the rate of about $4,000, ,00O
L month during the last few months
During the entire fiscal year to June
80. 1914. the deposits Increased $500
,oo. or IS per cent: from July to jan
Iary l the increase was Sl5,750,0oO, or
bout 81 per cent. Total deposits are
f53,200,0o0 with 491 900 depositors and
sl19 as the average deposit.