Evening star., 1918-02-28
CRAPHOPHONE COMPANY
REPORT FOR YEAR 1917
BY I. A. FLEMING.

IA VII Wv Wv uSus
BY I. A. FLEMING.
The pamphlet report of the American
Graphophone Company for the year
1917 shows earnings from all sources
of $1.72a.772.27. from which deduct
s417s43.71 for interest on funded and
floating debt. leaving net earnings for
the year before charging of, etc. of.
$1,304.S2S.56.
Depreciation charges. s330.65s.34; bad
debts and accounts written of. $111.-
1881; other charges. s22s.1s475. leav-
ing net income available for dividends
of s634,1s5.56. which added to s2.047.-
1473s. the surplus account at the open
ing of the year. made total surplus of
s2.6s1342.94. from which dividends of
sis3.164.44 were paid, leaving the sur
plus December 81, s2,13s.17s.50.
The balance sheet of the corporation
at the close of business December 81,
1917, was as follows:
ASSETS.
c..n ::s .:,.: .sls es'.is
ceivshle tiess re-
,,s.,cs ssryso ....;;,..,.. :, -. -. s''2ss2oa
terial. goods in proc
and finished goods
at cost -...-.- 1St4S.l.i-
tories . a 80 s1as s7s so7 81
Investments in ahiliated companies 6s66s4.T
Real estate. buildings machinery
and equipment ,less deprecia
Patents, franchises, good will. etc. 1000 600 90
Deferred charges .......... 1ls.o54 81
Total SIS, ,oso 4es 3
IJARIIJTIES
Accounts and notes payable and
sccruais --....------.-.-.-.--- sa-'oc' ioa.'S
First mortgage s per
gold bonds,
due June I. 1890. 81 1856. 10000
Sper cent serial gold
notes, lsl9-1926.-. $500. 10000
Capital stock.
non-cumulatiye .-sc,5o 10000
common -.-.--.--.. .ls6.6SJ-oo
Surplus ACKNOWLEDGEMENTS 2,1SS. 1850
iotai .->......--~-......... SlSuoU 4IS-SS
In his report Francis S. Whitten,
president of the company. referred to
the difficulties in transportation; the
increased cost of labor and materials.
met in part by increase in the price
of grafonolas; the difficulties in obtain
ing labor and especially to tax of
3 per cent on gross sales. levied by the
national government. A direct tax on
capital and IN no sense a tax on in
come, was imposed despite vigorous
protests by your company and others in
the industry"
Form 1865 made its appearance late
yesterday from the internal revenue
bureau and caused considerable COM
ment:
Every domestic partnership having
net income of $4,000 or more without
deducting salaries or interest paid to
partners. and every foreign partner
ship having a net income of $4,000 or
over from sources within the United
states, is required to make a return on
this form. unless engaged in the same
kind of business as corporations that
are exempt from income tax"
ms form covers excess profits taxes
ana IS not an income tax schedule: the
law itself exempts partnerships, or |
rather puts the onus of reporting on
each of the firm members as individ- |
nais, unless requested by the commits !
sioner of internal revenue
The schedule provides that deduc- |
lions for salaries of partners and in |
terest pai@ may be made.
This form IS also to be used by nro-
fessional men and others with no in /
vested capital or only a nominal capi- |
tai.
Confusion is sure to arise over this
matter and advice as TO its use, from
experts, should be obtained
OFF Goes Good Will.
The directors of the Baldwin Loco
motive Company have taken a very
important step for such of their Gus
toners as are permanent investors in /
1t in writing Off from the assets S15,-
SOC, 900 scheduled as "good will. m