The labor world., 1922-12-09

nlUSeH ocC inc pace lOT Nlel0n CT
1t Has Come to Pass.
1t has come to pass as Justices
Brandeis and Clark in a dissenting
opinion in the stock dividend case
said it. would. This is their language:
.f stock dividends representing
profits are held: exempt from taxa
ton under the, Sixteenth amend
ment, the owner Of the most sue
cessful. business in America will be
able to escape taxation on large
part of, what is actually their in
come. That such a result was in
tended: by the people of the United
States when adopting the Sixteenth
amendment is Uncomfortable"
Congressional Legislation contem-
plated ;the collection eventually of
hundreds Of millions of dollars in
taxes upon the distribution to- stock
holders Of excessive profits accumu-
lated during and since the war pc
Sought to, Eyadc Taxes.
Naturally the millionaires Of the
United States sought to retain as
much Of the excess profits as pos
sible.
Millions of profits were written
Oft and hidden from tax examiners
by clever accountants, and dividends
were delayed until some device could
be perfected for evading the taxes
payable in the natural course of
events.
Now that Secretary Mellon, ap-
parcntly backed by a decision of the
U. S. Supreme Court, has pointed out
the legal loophole and has himself
started the ball rolling, there has re-
suited an orgy of stock dividend dis
tributions that has never been paral-
leled. in the history of the country.
Rush to Share Gifts.
All the big corporatiins with ac7
aual or hidden psoftss are rGshlng
madly to join in the distribution be-
fore congress awakes to the need Of
action on behalf of, the public treas
ury. But even nov it, is almost too
late. The horse will be gone for
ever when congress puts the lock on
the stable door,
Standard Oil, having the largest
profits Of any industrial group in the
country, was set for a.skilling as soon
as the tip went out" that the cards
were stacked. A billion dollars of
stock dividends have So far been de-
clared by this. group. The Atlantic
Refining company has just topped
the list with a 900 per cent stock
dividend. 1t had, $9o,o00,oOO of
profits to dispose of on a capitaliza-
ton Of. $1,000, ,o0o.. Since stock divi-
dends are not taxable, the following
Standard Oil stock dividend declara-
tions represent just SO much that has
been slipped by the income tax COL
lector at maximum rate of so per
cent:
Standard Oil Companies.
Atlantic Refining .....$45,00o, 900
Borne-serymser .... =. 100000
ONO Oll ....'. '....... 45,OOO,O0O
Sloar Refining ........ 1000, 900
s. 0. Of California ..... 100, 971 900
8. o.. OF ansas... ...:r.. 100000
8. o. Of Kentucky. 49,. 100000
s. o. Of New Jersey. 200
s. o. OF New York.. .15O, 900, 900
s. o. OF Ohio. ;......... 1000, 900
V4cuun1> Oil 49,. 500. $4,000, 900
8. o. Of Indiana. ..... $4,000, 900
Here. is list Of stock dividend
declarations in other corporations
during the, last, week, representing
heavy losses in tax income to the
United States slipping away right
under the public's nose and with the
tacit approval of the secretary of
+, the treasury, with other corporations
= that have profits for distribution
working madly to get in under cover:
Stock Dividends in 1922.
Am. Steel Foundry Co. .$3,S72,1S0
National Biscuit Co.. .22.500,o 900
Victor Talk. Machine Co.. sc, 900 900
E. I. Du Pont de Nemours 10000, 900
American Radiator Co.. 6,903,000
American Shipbuilding Co. 2,461,O00
Mays Department Stires.. 6,OOO,O 900
Nat. Sugar Refining Co.. 5,0O0,0 900
Pan Am. Pet. & T.. Co.. .17.544,275
REQ Motor Car Co...... 6,s37,250
Yale & rowne Mfg. g.<Co.. 4,9eS,7
Ingersoll Rand Co: IL, 900, 900
National Liberty Ins. Co.. 500, 900
Globe & Rut. Fire ms. Co. 100000
Hamilton Brown Shoe Co. 1000, 900
u. S. Guarantee Go. ...... 100000
Lawyers Mortgage Co. i. 900, 900
MARYLAND Casualty Co.. 1850, 900
Fidelity Casualty Co.,. 5000, 900
White Eagle Oil & Ref. CO 1o,24o,o 900
Kellogg Switchboard 5..... 100000
Republic Cotton Mills. Co. 1,75O,o0O
Corn Exchange Bank. 80. 100000
Northwestern Yeast Co.. 100000
. Ail-American Cables Co. IL, 200, 900
NJ The great national disgrace of tax
i evasion was severely scored by no
less a person than Jules Baclae, New
= York banker and stock broker. at
. the National Inrustrfaf Tax confer
ence. THE taxpayer" he., said.
spends eleven months n year devils
ing schemes by which during the one
month that he tries to make up his
tax statement he can avoid as many
!. Of the taxes as is lsgqfS: :pdssible and
Continued pnh age ~ a. ,7-,.
q - E q - 80 /, / 1s \
lsa5