davidaulloa/AmericanStories huggingface dataset:
, 1922-11-20
Tax-on Surplus

. within the period of a few recent
weeks some OF the leading corpora,
tons. In less han n dozen. Industries.
have declared stock dividends -aggro-
eating in amount nearly a billion
dollars. We've these declarations
prompted wholly by a feeling OF APP
%prehension on the part of the eorpor-
aticns' directors over the taxable
status OF tine surplus Out of which
they were deciared7 1 think they
were not.
The practice OF distributing divi.
dends by the issuance of additional
capital stock is not new. but the re.
cent frequency and voIume OF ouch
distributions seem to have given rise
TO h impression that they are being
mads for reasons that are new.
Expansion OF the business Of a cor.
poration necessarily involves an In
crease OF its working capital. The In
creased working capital is. generally,
represented in part by current assets
and in part by fixed nsseta, the pro-
portions varying according to the ma.
ture OF the business. Ii the Increased
working capital was derived from nc
eumuinted earnings. that part thereof
which has Eono into fixed assets. ouch
as buildings and machinery, is no
longer available FOR the payment of
dividends. A stock dividend declared
out of accumulated earnings so en-
I ployed, or necessary for the financing
| of the increared business. needs no
excuse for its issuance II is justifi.
able because 1t strengthens the fin
anciai position Of the corporation.
In my opinion. the tax considera-
| tons for the declaration of stock divi.
bends are secondary. But the advant'
ages OF declaring stock dividends at
this time are real and potent ones A
stock dividend having been held not
TO constitute taxable income to the
recipient, 1t would seem TO follow
that, despite the stock dividend, no
income has been distributed. On the
lother hand, II the surplus has in fact
been converted into capital stock the
earnings no longer exist as surplus.
Any new tax on surplus must, II
| seems to me. be laid on the accumu'
lated earnings as surplus OF the cor
poration. A tax upon the accumu
lated incomes. as income, would be an
additional income tax. again taxing
income already subjected to taxes in
prior periods; and a tax thereon, less
the distributed income, would still be
u retroactive income Tux. I realize
that oil things are possible in the way
of tax legislation, but I believe thai
out of respect for business progress
on which our national weil-being Is
largely dependent we-are. through. al
least for the present Din the absence
Of some serious ~exigency). with re
troactive tax legislation
Generally defined, the surplus OF Q
corporation is the excess OF assets
owes the liabilities and the capita
stock outstanding. 1t would follow
therefore. that a tax upon the surplu.
would affect only the balance of sur
, 1922-11-20
Seattle w o m a n
Gains Is Pounds
On Tanlac

"Tanlac has beer the finest thing
in the world for both my husband
and myself" declared Mrs. An1usina
Kelley. of $3.50 Kenny St. Seattle.
Wash.
My husband suffered from stomach
and liver trouble and had gotten SO
thin ard weak he could hardly walk.
but Tanlac put him in h best OF
health and built him up so much that
he had to rave his clothes let out.
II mad suffered for twenty years
from stomach trouble and had bes
come so weak I couldn't look after
my housework. Bacikache. headaches
and dizzy spells almost drove me dis.
tracted. Well. Tanlac did such won
derful work for my husband hat I
began taking II, and besides restor-
ing my health 1t actually built me up
fifteen pounds. / never have an aehe
or pain now and I have so much
strength and energy that I easily do
all Ey housework."
Taniac is sold by all good drug
sists.
, 1922-11-20
Threatened Recall

CHFRIDAN has shown evidences Of her dissatis-
y faction with Ter commission form of govern
ment by a recent attempt to get rid Of 1t and re-
turn TO the council form, now n movement Is ON
foot TO recall the present mayor and the commits
siohers alleging incompetency. Former Mayor
Camplin is the attorney and adviser OF the petit
TONERS. What success Will attend the effort Is al
together in the future.
The commission system which was established
some dozen years ago upon the theory that ii would
be more economical and efficient than the system
then in vogue has proved n distinct disappointment
TO the taxpayers in that the budget has steadily
increased and the cost of government has gone
along with it
The people of that city have but lately defeated
several paving projects and at the recent election
did the same to a proposed water bond issue.
Sheridan has not been prosperous for the past
several years because of the depression in agrlcui'
ture and livestock upon which prosperity in that
section largely depends. To this unfavorable con
~porations into one concern and the shutting down
of active mines there in the interest of mines else
where owned by the same company, has operated
10 curtail payrolls and reduce revenue heretofore
dependable.
These things have all c~onspired TO the detriment
of Sheridan and brought about a general dissatis
faction among her people.
Ordinarily Sheridan is n live snappy community
a beautiful %well-kept city of intelligent people
with many advantages possessed by no other city
in the state. Simply because of a temporary slump
she should not fail into the dumps about it and take
out her spite on her public officials. II there is
real well founded and not imaginary dissatisfac
ton with her rulers, much better to bring forth
real rulers and place them at the head of affairs
in the regular way than to create the dissention q
recall is certain to produce.
, 1922-11-20

plus after the stock dividend Is de-
Quoted ther-.rom.
The Revenue act OF 1913 contains a
provision by which an -unreasonabiy
large accumulated surplus could 10
taxed A somewhat similar provision.
but considerably broader in its scope
and effect. is contained in the 1921
wen act now effective. 1 know OF
no instance wherein either of these
provisions has been enforced, or
where even an attempt has been made
to enforce them.
1 do not believe there will be my
attempt at an endorsement OF these
provisions except In the most paipabie
cases OF evasion. as. for example.
where a corporation has been organ
lied for the specific purpose Of accum-
ulating Income. According 10 tho
language of the provision there can
be no enforcement unless the commits
sioner OF internal revenue certifies
that in his opinion the accumulation
is unreasonable for the purposes of
the business
In cases sufficiently fragrant TO
come within the evasion section of the
law IT Is unlikely that a stock distri-
butlcn OF the surplus viii be awaiting
10 the corporation. The only thing
that could save such corporations Il
a technical construction In their favor
by the Courts OF language containing
this provision OF the law.
1t is entirely possible hat q tax will
be laid on stock dividends. as an ex'
, 1922-11-20
Trade of The Future

CAPTAIN Robert Dollar, long experienced in
y ocean transportation is undoubtedly correct in
the judgement recently expressed that within the
lifetime of shippers now living the center Of world
commerce will shift from the Atlantic TO the Pa,
cific. Europe has nearly reached II it has not al
ready passed its summit in production and trade.
The Americas and most of the countries bordering
the Pacific in Asia are undeveloped and have re
sources thus far hardly touched. Siberia is a vast
expanse Of larent wealth. China holds mineral de
posits awaiting use, the east'coast of Africa offers
the best gateways for commercial development in
the interior of that sentiment and Australia is
young IN industry. South America and trans-Pa-
cific markets offer the best opportunities for the
future of American trade. In those regions there
will be the greatest development in the oext hun
dred years and because of its own resources, ex-
perience, enterprise and wealth, the United States
should be the strongest factor in aiding the trans
formation of a comparative wilderness into a home
land for a vast civilized population. Our CONNER
cial relations with Europe ore by no means n thing
of the past, but the door Of greatest opportunity
opens tow trd the west.
, 1922-11-20

est employers on the topic Of work
notes the New York sun Hugo
stinres. the leading indnstnaiist Of
Germany. asks his countrymer 20 N
c1ease tbs production OF their fac
tories and trades. the socialists accuse
him Of trying to INTRODUCES a longer
vorkday. And At the same moment.
a. Il happens. John D. Rockefeller
Jr.. IN our own country iaments the
unarylishness OF work and the talk OF
a ak hour day Although he has
shown his frfendli1ess - The wage
Gamers IN the recert discussion ppm
the living waFc. he toe seems 70 fear
that production al the nte now con-
mon IN industry viii not suffice 70 set
the world 10 rights
The common im7eIins cause of
these two mems remarks may be
found In the state OF the world toc-s.
The United States approaches winter
with a shortage OF hard coal. her vail
roads stfii struggling along upon less
than their legal return. commodity
prices rising. Business is good TO the
extent hat there are jobs for nearly
all applicants. but people lack hous-
ll|r A4t4 ana ll-Atl '~A4NA ~H3 N@
they ought 10 have. The taxes fail
10 defray fully the governments ex.
penditures. and certainly yield moth
iraZ for debt reduction
Abroad the taxes in some countries
are even less adequate. government
debts increase paper moneys go up
In quantity and down In value. Dis.
tress faces some of.the populations as
yet another winter closes in The
students OF affairs abroad have como
Z o an apparently new estimate or tbs
seriousness OF the economic def,
cheney.
The estimates generally agree that
nations have lost many, many billions
IN buildings. animals. damaged land
and structures. machinery and raw
materials. canceling the informed
late matter CT distribution ant reduc
Ing the problem TO simple terms, one
finds hat the pAoples must produce
more than they used to In order tc
mako up the material loss they have
Incurred
That ean hard. sustained. Willing
labor. The nations first to reaiiz,
this Will win In the arduous rack Il
recovery.
, 1922-11-20
Cuban Recibrocitu

A PROMINENT New York newspaper which has
u been an out and out free trader for nearly a
century and which still maintains its attitude Is
positive that suba proposes TO retaliate by de-
nouncing the trade treaty with the United States
of 1902 which gives Cuba a preferential treatment
in the shape of n 20 per cent reduction on Cuban
goods entering the American market in exchange
for a Cuban preferential on American goods. The
paper reports that Cuba is UP IN arms because of
the duty on sugar.
Doubtless Cuba will think twice before she de-
nounces the 1902 treaty. In 1921 exactly ninety per
cent of Cuba's exports to the United States CON
sisted of cane sugar. In 1922 Cu6an sugar made
up 81 per cent of those exports to us. Under the
Underwood law Cuban sugar paid about Si,00 a
100 pounds, while other foreign sugars were paying
about $l.25. This is on 96 regree sugar, the bulk
of the trade) Cuba's advantage over other com
peting countries was therefore about % tents a
hundred. Under the new law raw sugar pays
500 a hundred, the , per cent preferential to
vantage over other competing countries of A
cents a hundred. Cuban denunciation of the
treaty of 1902 would be very helpful to Porto Rico
and Hawaii, as well as to the Philippines. 1t would
not be relatively as injurious to the United States
as it would to herself.
There is another factor to consider. Cuba is
seeking the approval of the United States for n
. 100000 loan. 1--WE expect" says a representative
of one of the largest banking houses in New York,
washington to give approval when certain condi-
tions have been met by the Cuban government"
Article ii of our treaty of 1903 with Cuba declares
that "the government of Cuba shall not assume
or contract any public debt to pay the interest up
on which and to make reasonable sinking fund pro
vision for the ultimate discharge of (which the or
binary devenues of the island of Cuba, after defray-
ing the current expenses of the government, shall
be inadequate." 1t is conceivable that the loss
to Cuba which might result from her denunciation
of the reciprocity treaty of 1902 might be regarded
by the administration at Washington as sufficient
TO preclude Cuba from assuming additional finan-
clay burdens and that the approval of this country
for the loan might not be forthcoming. If the
United States did not approve the loan it would
be interesting to know where Cuba coEid raise the
money. This Cuban congress will have an opportu-
nifty to ponder ON this.
, 1922-11-20
The Revealing Profile.


We have always thought hal b
best way 10 tel = persons character
was BY examining their fun facet. 30
Il WA n surprise 20 hear = noted ply
sioEncmlst say recently that when
he wants 10 he sure OF getting the
best results he examines the profile.
The fafi faca Is what we present to
people when looking At them and ex-
pecting their criticism ayes r ruert.
mouth arranged IN a becoming line
and facial EXPRESSION n its oest.
The profile. however. = tho aspect
Of the face that the rest OF the world
most sees and Il generally sees It In
off moments when we are unconscious
OF any critical giancez- A person
nosS full lace may be bright and
aiiuring may ave a profile which
IN reposo f. duh aud iistIess. mouth
dropping and facial muscles ruIexed.
The muscles OF a woman's face are
softer than those OF a mans and 30
they ara particularly susceptible TO
unsightly saEging and u~nbeco.nsng
changes frofn every mood
, 1922-11-20

country over TO the foreigners. It viii be recalled
that shortly afsEshe Mckinley law of 1890 was
passed. which put a protective duty on tin, The
OF that commodity sent tin. peddlers
through the highways and byways of the entire
country with tinware ON which the rrice was out
raeeously boosted. The peddlers were instructed 10
tel the householders that this was because Of the
new tariff on tin. In McKinleys own congression-
al district this lie was worked 10 the limit and Nc
kinley was defeated in the ensuing congress. only
10. become president following the disastrous con
sequences Of the Wilson German tariff law Of 1894
But tin, which was an alien to this country in. 1880,
Is one Of the biggest industries we have today =
sired absolutely by protection
, 1922-11-20
4 Mater ofCiohers

HURlNG the recent campaign the Democratic
IL leaders made the charge that the proposed ship
subsidy bill viii cost the treasury S75.000,G00 a
year. Near the close of the campaign, the omahu
owned by Senator Hitchcock, Demo.
cratic, added a cipher to the amount. making II
s1o0,OOOoO0. What Is a cipher more or less, TO n
Democrat in n campaign. But the HitchcocE paper
evidently did not fool the people of Nebraska for
they decided TO let someone else represent them in
Hitchcocks place.
As a matter of fact, the ship subsidy bill. IL en-
acted would reduce the expenditures of the govern.
ment for ocean shipping. We are now spending
S5OOOO,OOO a year 10 operate the ships we inherited
from the Democratic regime. It would cost us only
s32000,O00 under the ship subsidy bill and we
would get far more service for the money.
, 1922-11-20
Ear[u Demonstration

HHE TRUTH OF statements concerning the new
tariff law is early ACKNOWLEDGED in recent news
items in free trade periodicals.
1t was mistakenly ,assuredly, and repeatedly de-
clared in congress that the duty rates carried by
the Fordney tariff law, then being debated not
only did not spell unreasonable protection, but that
when foreign rates of exchange were taken into
consideration the duties were not as high as those
carried in previous tariff laws; and this declara-
ton was as insistently a~ssuredly, and repeatedly
denied by the Democratic party, which continued
to libel the measure by asserting that the law add
ed $4,000,0O0,OOO TO the cost Of living of the Ameri-
can consumer. The newspaper which in the most
frenzied fashion supported Democratic contention
was the New York journal Of Commerce.
: Nevertheless, on the front page of the Journal of
recent date appears this statement:
"sThe f. W. Woolworth company, it was learned
yesterday, is continuing to receive goods from Ger
many in large volume AZ the same time IN faee
of heavy increases in tariff rates on the articles
such as toys and glassware which are being i'm
ported, the Woolworth company will be enabled to
make satisfactory profits due to the favorable ex-
in the case of toys raised the duty 100 per cent,
advancing the duty from So to 40 per cent, but
the advantage in exchange at the present time off
sets the enormous tariff increase
The tariff on toys was increased as stated for
the good and sufficient reason that practically all
this competition was from Germany. where the
mark has wellnight reached absolute zero, and
from Japan, where the wage scale is the economic
1shmael of civilization. As for the duty on glass
ware. the sort that is being imported by the Wool
worth and similar companies at rate in the
present law is fifty to f~ifty-five per cent the
the rate in the Payne-Aldrich law of 1909 was 60
per cent. So the present rates are about half
way between the two laws, and that despite the de-
probation of exchanges in Germany, Austria, Ja-s
pan. Czechoslovakia and France.
What is said Of toys and glassware applies to
practically all Of the imports covered by the new
thrift law. The efforts of importers TO make it
appear that the present law is prohibitivc are com
pieteiy nullified by the official statistics of inn
ports- But the proponents of protection must be
constantly on their guard TO conntcract the false
hoods Of those who would turn the markets of this
, 1922-11-20
Exploiting Scencru

THE UNION PACIFIC railroad is about to spend
l. five million dollars in the development of the
Industrial and scenic resources of southwestern
Utah. Under private management, the money will
be spent with the sole object in view of making the
railroads earn more money. The effort will be to
open up an interesting scenic region in such n way
as to attract tourists. Under government mana ge-
ment, the election of a place for expenditure of
100000 would be determined largely by politics.
Under private management the determining factor
would probably be the amount of pressure that
could be brought TO bear in behalf of one object or
another. Under private management, the question
is decided solely on business principles, as it should
be.
With all of the scenic beauty in Wyoming and
her Potentially in natural resources and mater
ials at hand for industrial development, why is 1t
that the Burlington and. Northwestern railroads
which would mostly benefit have not some such
scheme of development Tor Wyoming as tLe Union
Pacific has for Utah?
, 1922-11-20
Casper Tnbune's Program

Irritation project west of casper to be authorizes
A complete and scientific coming system for thu
city OF Casper.
A comprehensive municipal and school reSreat,on
park system. including swimming poos hU H
dren OF Casper.
Completion OF the established Scenic Route eonle
ward as planned by the county commissioners
den Creek Fails and return
Better roads for Eatrona county and more high
ways for wyoming.
More equitable freight rates for shlppey OF the
Rocky Mountain region, and more frequent tram s@T
ice for Casper.
, 1922-11-20
She Wakes

Young mornings lips are parted.
Her breath comes gwcetly through,
And all the oval of her cheek
is lovely petal hue;
Her misty hair trails. phantom far.
Falling in 3eweled dew
And. with the Eoftest stirringa.
She wakes. Ind her eyes ara blue.
ALICE WILSON OLDRoYD.
, 1922-11-20

We wish TO thank our kind frienrs
and nelshbors for their help and sym
pathy also for the beautiful floral Of
feringh during our recent b~ereave-
ment In the loss OF our lear little sen
and brother.
MIR AND MRS. w. d. KEYsER,
FLORENCE AND HAROLD.
I1-2O-1ts
, 1922-11-20

else tax. for the privilege Of issuing
stock dividends. As an excise tax
however, there is little. IL any. ifkei-
hood OF is being retroactive.
GODFREY N, NELSON.
, 1922-11-20

A PROMINENT college professor has written n
a four-column article on "Is the Allied debt a
just debt" 1t is our guess that if the professor
tries to borrow any money from his friends he win
have a hard time getting it il he is going to raise a
question later as to whether it is a just debt.
, 1922-11-20

LOST Sunday on Poison Spider road
3oxsA casing; sox3ts inner tube
and demountabie rim. Reward. Phone
| 500. 1t.20-2t.
, 1922-11-20

Mss N. Sylvia Donaldson. elected
to the Massachusetts, legislature. Is ~
years old.
, 1922-11-20

THE CHINESE are looking about for a consti-
L tuition for their republic or whatever they have
over there. We have no second hard constitutions
to dispose OF but we could spare an amendment
that is not working.
, 1922-11-20
PURE LARD
BACON
Whole Or Half Slab,
Your Choice

We do not deliver-and have no charge accounts. People
are better satisfied when they select their own meat.
WE U H BEST-DO YOU?
STOP N SHOP.
, 1922-11-20
. e: Is; S.. JOHN P. GRIFFIN Piss Is:
THE MEAT ! QUESTION SOLVED

In order to show our appreciation of the liberal patronage
you have given us the past two years we are going to run
our Anniversary Sale the entire week. so you can come at
your own convenience to do your shopping, get your
favorite cut of meat and enjoy a treat at our expense.
The New York herald. [volume] (New York, N.Y.) 1920-1924, 1922-02-05

Despite tho fact that reports from the
Riviera indicate that Parislans have not
yet arrived in any great numbers and
that the season promises to be dull
one. II seems that n number OF depart
ures have been announced since the
first Of the year. NJ. and Nine Jacques
Balsan have been in Paris for few
days after passing the holidays at Monte
Carlo ar1 expect TO return there for
tho remainder OF the season. Mr.. and
Mrs. Edward Tuck have opened their
villa and have as their guests Mr.. and
Mrs. Amos Tuck French. MIR. and Mrs.
Spencer Eddy have often been seen at
the Hotel de Paris or at Ciros with the
American Ambassador and Mr.. and Mrs.
Parmciy Herrick. And the conference
mt Cannes has not been entirely without
dinner parties among the Americans
Mr.. and Mrs. Henry Clews have given
a dinner during the week at their
chateau de Ia Napoule in honor Of the
American Ambassador TO London and
Mrs. George Harvey Others present
were Prince and Princess Christopher OF
Greece princess Christopher was Mrs.
w. j. Leeds, and has taken n villa at
The New York herald. [volume] (New York, N.Y.) 1920-1924, 1922-02-05
BROOKLYN ADVERTISEMENTS.
So Sateen Petticoats
at S1.49

quality sateen Petticoat with .
deep hem which has an embroid-
cred scallop at the top. All the
most desirable dark shades.
Other Sateen Petticodts at
CSC
The New York herald. [volume] (New York, N.Y.) 1920-1924, 1922-02-05
Cannes Conference Is Topic
sf& of Interest Along Riviera
Hotels Filled With Delegates and Social Side Seems to
Lack Animation-Dinner Given for
Ambassador and Mrs. Harvey
BY MAY BIRKHEAD.

Special Correspondence to THE New YoEI
HERALD.
The New York herald. [volume] (New York, N.Y.) 1920-1924, 1922-02-05

CANTON CREPES, taffetas, Georgettes, crepe Roma,
crepe Monaco the chief fabrics just as they have
been for who resist such exquisite creations of
the loom?
Then when clever designer takes hold of these fab
RIGS and puts his genius into them, there out gar
ments that reveal personality that most appealing.
The differences in the prices grow out of the elaborate
and the garnture Only two pictured, but you
already noted above the broad variety ready here
Now only remains for you to early select careully
then you will have pleasure through the whole spring
in wearing such charming frocks.