The Bridgeport times and evening farmer., 1920-03-16
HENRY CLEWS'
 WEEKLY LETTER

Very much more hopeful conditions both in the speculative and invest ment markets have been the order of the day during the past week. Not only have prices advanced and money become easier, but there has been a better attitude on the part of both Government authorities and the public generally.
 Business reports from all over the country indicate that the underlying commercial and industrial situation is in most respects sound and the natural response of the prices of se- curities with this change in the out look has been seen in a decided up- ward trend.
 International Situation Stagnant.
 While the domestic outlook has thus been one of increasing and wholesome optimism the International situation has been stagnant and un- satisfactory. Not only has the peace treaty made little advance in the Sen ate, but there have been many in- dications pointing to a belief that even if it sh ould secure ratification at this session it might go over into the autumn campaign. Abroad the Adriatic question still seems to be deadlocked, President Wilson's posi- tive attitude continuing to be un- acceptable to most of those who are directly interested and threatening an even wider breach between the Unit ed States and the Allies.
 The Supreme Economic Council, in | an appeal to the public published on | March 10, has renewed it's call for a | return to work, for improved pro l duction and for generally better ! 1 world, but this appeal for the pres | ent at least only emphasizes the fact l that the changes referred to are thus | far making but slow headway. There | has been a gratifying improvement l in the condition of the Bank of Eng | land and in British power to export, l and this has been reflected in an ] upward movement of sterling as well | as other exchanges, but the situation on the Continent is far from. being equally gratifying. So acute has the l distress become in some regions that l the Grain Corporation has under taken to relieve it without awaiting the adoption of the measure which has been pending before Congress for furnishing aid to distressed popu- i 1ations-
 Helpful Court Decisions.
 
 the past week in the domestic field has been seen in the two decisions handed down by the Supreme Court
 on March 8, in the so-called stock
 dividend and Kansas City Southern
 cases. Both decisions are long anc
 complex and only the substance o1
 them can be stated in brief form.
 The stock dividend decision hold! that distributions made by corpor
 ations in the form or stock dividend: are not income to the recipient, ant ; that they are consequently not tax
 able as income unless he convert them into cash, and then presumabl! only if they show profits.
 The result of this decision is no only to encourage the distribution O various dividends of this kind whicl have been held back because of tn necessity of paying an income tax ol E them, but it also opens the way fo \ the filing of large claims for the re { covery of income taxes illegally col E Iected from contributors by the Fed E era1 Government. The amount 0 E these refunds is variously estimated
 but some figures place them as hig as S500,000,00O. Preparations hay
 immediately been made by the Tn
 ternal Revenue Bureau for receir = and consideration of claims for re !. funds under this decision.
 Although the finding of the Coul o in the Kansas City Southern case hs e received much less attention than i h opinion in the stock dividend caS J. there would seem to be good reaso l, for the belief that it is if anythin It more important than the companio IS decision. The opinion, in brie q . takes the position that in passir V upon valuations of railroad proper
 the Interstate Commerce Connissi~ z
 is bound to take these va1uatio-~ < - the basis of present prices, gir--ls dl
 heed to requirement. costs Of variol
 sorts, but taking into account ar 6 making full allowance for the s
 called unearned increment whi;
 various legislators have thoug "a should be eliminated in estimatil