TaÌˆgliche Omaha tribuÌˆne. [volume] (Omaha, Nebr.) 1912-1926, 1917-10-04

tue injustice OL tue ldA hNaohA@ W
of the government. The Fin
ancial Chronicle" a staid old
publication which has been styl-
ed the "Bible Of Wall street"
tells how much a person with an
income Of $4,000 a year must
pay, and it fears that it will
force such persons to econom-
ize.
The periodical publication OF
a banking and brokerage house
is more specific. It gives this
illustration:
Let us suppose, for instance,
that a man has 10000 shares Of
United States Steel common.
1t has been estimated by COM
petent authorities that the pro-
fits of the corporation will be
taxed to the extent Of about
$50 a share, which in this case
amounts to $4,000 paid to
the government as the excess
profits tax on his holdings. Be
sides, he receives in dividends
in the present year at the rate
of $17 a share, which for him
amounts to 81, 100000. OF this
the government will claim $447,-
$50 as income tax, so that on
his holdings alone the steel cor
poration is paying for him and
he for himself an amount equal
to S2,607,750, and he is left with
S572,250. This would indicate
the government is receiving APP
proximately S. against every
one that he retains. 1t is no
use Disgusting the fact that if
these large taxes be exacted it
will frighten capital into hid
ing and remove from the indus
trial world that supply of ready
cash which it and the govern
ment so urgently need to carry
on our war enterprises"
1t is a matter Of regret, OF
course, that persons with in
comes Of $4,000 a year may be
forced to economic, and it is
narrowing to contemplate how
desperate will be the plight OF a
man with 10000 shares Of Unit
ed States Steel common, par
value 100000, who receives
only S572,250 a year income
from his stock, only $l,567 a
day-less than 10 per cent. on
the par value of the securities
he owns.
There was printed the other
day a story from Lenox, Mass,
of the distress felt there over
the announcement that British
buffers and Breton gardeners,
some Of whom had come to
this country to escape military
service in Great Britain or
France, might be drafted. What
would the modest cottages OF
twenty or thirty or forty rooms
in the Berkshires be without
the British buffers to buttle ii
the homes and the Breton gar
deners to barber the ornamental
trees and shrubs?
Let US be just; if there is I'M
fairness in what has been done
let us confess it. This country
is fighting for its safety, for the
perpetuation of the institutions
Of democracy. Even if the gov
eminent takes from the holder
Of United States Steel common
and from holders OF other sec.
urities so high a proportion as
the financial publication states
land the estimate it furnishes
is subject to challenger, is il
oppressive?
It might be pointed out that
when the United States Stee.
Corporation was formed every
share of its common stock was
what we emphatically term
water; that it had no rea.
value back Of it; that it re.
presented nothing in the form
Of actual assets. How low il
was regarded is evidenced by it;
appraisement at 8B a share. Sc
recently as 1915 it was quoted
at So.
The war has brought to The
steel corporation tremendou:
prosperity. It's net profits have
been at a rate in excess of &
per cent. a year for the las
eighteen months. Its gros;
business rose from $558,000,G(
in 1914 to $1,231,473,77o in 1916
It's net profits last year were
$432,136,915.
Up to the present time tht
steel corporation has escaped
war taxation of its profits just
as the Du Pont Powder Com.