Omaha daily bee., 1921-12-12
Coupon Holders
Prepare to Cash
In After Jan. |
Excess Profits Tax Abolished
With Dawn Of New Year
Prices for Securities
Change for Better.
By HOLLAND.

Many persons who year ago
were depressed, are now reading
with much qualification that section
OF the new tax law which states the
excess profits tax is abolished Janu-
ary /. On January l and after, it
will be possible TO obtain the gains
which recent appreciation in the mar
ket quotations for securities make
possible. Investors are waiting until
January |, and this explains why the
number is so comparatively few OF
those who are already taking ad-
vantage OF the increase in quotations
tor many securities to get their Sc
curities and take profits. II they
should sell before the first OF Janu-
ary the government would claim a
large share of the profits. If they
do not sell until after January |
they will be compelled to pay only
normal tax OF l2h per cent.
Depression's Depth shown.
when speaking OF the recent changes
for the better In prices for securities. one
Of the leading authorities called attention
to the bonds Issued by the West Shore
railroad company. He did this because
these bonds are so carefully held by in
vestors that not many OF them find their
way into the market. When they were
issued they were regarded as a prime II
not the. best security outside OF govern
ments for the investment of funds.
They were practically perpetual bonds
because 1t was nominated In the bond
That their life was for 500 years. They
were secured by mortgage on the West
Shore railroad properties. The amount
Issued was $50.00o.Oo0. Railroad experts
say that the railroad property at a rea-
sonable valuation is worth man times $780,
100000. In addition they carried the guar
company. The rate Of interest named In
the bond was per cent. So attractive
were they and so great was the security
that they were easily marketed and held
for Investment They were quoted with
rapid appreciation until at last the quota
tion reached 117h.
Then when depression began there fol-
lowed rapidly. depreciation in the mar
yet quotations for this security until at
sst they were quoted at about 70. That
sop from 117h to 70 furnishes one OF
which depression went But when i'm
provemont began these securities immedi-
ately responded to the stimulating influ-
ence. They are now quoted at about 81.
bonds will markat them partly because
II they do that they will be taxed for ex-
cess profits until after the first OF jan
nAry ana parity because OF the conli.
dence that this security will so reflect
improvement in market conditions that
before long 1t will touch part and perhaps
go above par, Probably. however, in
Vestors viii keep THESE ponos SO ina. the
small.
Others Reflect Improvement.
This examn,e was referred n becouse
these bonds stood in the estimation OF in
vestors in almost as high regard go far
a. security concerned as government
ponds But there are q kood many other
ponds wnich are now refiecting the I'M,
provement as weH as the confluence ana
the oisposltion OF the pubic 70 enter tho
market. although as investors rather than
as speculatoEs. h:.E al is
rms contidence wnicn ls now reported
in the financial district has reached many
parts OF the 'vest. This was. dsmon,tIsted
rev days age by the participation OF
western syndicates in q sale OF railroad
Equipnent Trust certiftcates THIS sale
was maze AT the peginhlng, oi tMs me mo mont. ..
ana Dy means OF ~ neary i''uooiVoV Oh
certificates We're marketed
Heretofore much the greater part OF
the Railroad Equipment trust certi,icates
which nad peen heid oy the govefnment
were marketed IN asferG4nnaneiSl centefs'
principally new fork. In TACT tno lnvest-
snent demand TOT these secufitles wnicn
->Nvas large prevailed almost e1ciusiVeiy IN N
the east. bnt ms iatess saie MAKES II II
large scale is no longer confined 70 the
east. but mas begun IN tne west anu es-
pecially IN the large distrfct oi whicn
Chicago Is the center, and which reaches
TO Omaha. |.. se., .'.R
Therefore It Is inferred here that the
Improvement In money market conditions
10 rapidly extending to the west ana Will
be followed by an excellent market Tor
farm mortgages and will be OF benefit to
all agricultural sections.
Predict Help for business,
A,.,s,n,, .ov,,o a,sanro,rtr.n+ wa, FOL,
,,,an NV ~, sUre ,,,,ne az ~ na,v tar law
,arthe,a.. thnsa ara cartotn footuras of
never.nss ,n ,uslo htna ~. ~ ha,ntit W
Wnioh VIII oe ~ +h,,, unuouuee ~ ~ .hn1ish.
BUSINESS no rort r. ~ 1ho
ment OF tne sAeess paotts ~, tai, ,t,ar
9phioil mere eha1 tny, anust IN, na tho
January Tue aisoosety isat W. h,,s,rsss anS
tIis mas eenueu ts.,.' " Sua"'e o1st"o's '-'Ae
huustIlal ae.lsi.s. .f,,; ~. ~, 10, ,,,,,,,,,
s. Anotne. pa,aspu .s,s ta,aat. ~ @ of+ha oo,,n.
pern.t 'he uusi,lsss ii'.o.ess W. zoo,
uy 70 appy iosses s, nAsS ,,s @ 80
asanst pIoits IN a dni,,stine
gress teok heeu ot .he appSreho w ,hJ yhich
ol tHat pdI. VI. tno oiu - 10 .a, @ei, !" ~ a;a
not permit any deoucIlohs 10 oe hiaie W oI
account OF losses. lhae pul ',.s.
upon business ana industry WHICH WIS