Evening star., 1918-06-02
FINANCE AND OTHERWISE.

total income last year of s666.o00,o0o
1t paid 35 per cent Of that, or $780,
000.U00, in taxes. The total war reve-
nue. tax provided by the government
was $4.00o.0o0.000. The Steel Corpo-
ration's quota was, therefore. 5.s per
will provide at least $1,000. 900. 600.
and 1t is fair to assume. for various
reasons, that 1t will be nearer $1,000
0Oo.O00 than $4,000, 100000. II the Steel
Corporation is asked to provide the
same proportion Of the government
last years budget of $4,000. 900. 900,
namely So per cent, it cannot con-
tinue its common dividend at the SIT
rate, for the corporations earnings
this year will probably be less than
last. We estimate earnings this year
there will be available for the COM
mon stock only $40 a share.
I'VE believe, however. that following
an equitable taxation bill of some
such proportions between the total
money to be raised and the total saw
ings Of the country (the fund out
Of which taxes are paid). will obtain
as in 1917. On such an assumption.
Steel commons dividend can be main
tained at ST. The estimated annual
savings Of the country from all
sources in 1917 were approximately
s11 500, 100000. The Steel Corpora
tion's net income Of $sss.ooo.o 900 was
above that the Steel Corporations tax
was also 5.8 per cent Of the total of
$4,000, 100000 taxes provided. The esti-
mated savings for 1918 will be at
least $4,000. 100000. We estimate the
Steel Corporations 1918 total net in
come at s643.o00.000. which is equiv
alent to 4.zS per cent of the country's
estimated savings. If the Steel Cor
poration's 1918 tax. therefore. bears
the same relation to the 1913 tax to-
tai that the corporations estimated
income Of 1918 bears to the 1918 total
annual savings Of the country (Which
was the relation obtaining in 1s1O
cent Of the total taxes to be provid-
ed, or $500. 100000. OF our estimated
net income Of $e4s.ooo.0 900 for 1918, the
company would then have. after taxes
and available for fixed charges and
other charges. $s43.0o0.ooo. This
to pay the s25 100000 preferred divi-
dend. leaving s10s, 900, or approxi-
mately $22 a share on the common"
Personal Mention.
Charles p Light. for two years
manager Of the local ONCE OF the
Mutual Life Insurance Com
pany Of Philadelphia, has accepted a
position with the Washington branch
Of the National City Company. effec-
tive June !.
quaintanceship in Washington, due
to his activities In connection with
recent campaigns Of the z. N. c. A.
the Red Cross and the third liberty
loan, he serving as executive secre-
tary Of the liberty loan committee of
Washington.
The Outlook for Utilities.
Henry Clews has this to say on this
subject:
THE outlook for utilities, such as
light. power. street railways. tele-
phones, etc, is somewhat mixed and
since expenses of these
concerns have risen greatly while
public service commissions are gem
orally opposed to allowing any ad
vances in compensation, politics
being the underlying obsta-
Gle. It is quite probable. however,
that the example OF Washington in
son insure better treatment for pub
lie utilities. indications of that trend
having already appeared. The money
market strain has eased but slightly,
tine loans being ,sea scarce @ ana rssss
continue for some time to come. In
this connection President Wilson's
on taxation and revenue is
significant. A heavy
the administration was wise in Civ.
ing the country notice to prepare
for heavy new demands upon the ma
tional pocketbook, which can only
be be-. met b.. persistent economy and
The New Revenue Law.
The National City Bank circular
on this interesting subject: "As it
was agreed that the law, whenever |
would cover earnings and |
Incomes for the full year 1918. there |
Is much to be said in favor Of having |
the terms known as early as possible.
their plans to suit. On the other /
hand. the policy of proving by tax
alton for q fixed percentage OF the 1
expenditures is not easily carried out /
when there Is SO much uncertainty |
as to what the expenditures win be.
It 10 said that the plan will be to /
raise 20 per cent Of the required in \
come by taxation. and this is surely /
enough, but II expenditures should
turn out to be less than estimated
mo percentage OF fevenuo raised py
may be higher than that.
There 10 q question also as to what
shall be included In
the 20 per cent. No good
reason can be offered for covering
The loans to allies by taxation. at
east at this time. of the great ex-
upon freight ships, or the
100000 which the Secretary of
he Treasury has been authorised to
sxpend upon the purchase of farm
oAn bonds, Or numerous other out
ays which will produce permanent
lesets, ana II these are excluded more
han so per cent Of che remaining