The labor world., 1922-11-25
Melons Company. Led.

- o.
Melons Company Led. =
- Congressman Frear, to back up hia
Charge against. Mr.--Menon, calls hts
q attention to the following statement
from, Investment Opportunities AQP
November which states:.>t. = !,
Since We were last privileged 10
address, you; two dominant factors
In: world finances have made decf-
siYe; moves. Andrew Mellon; banker.
oil magnate:and capable secretary of
our treasury, :: controlling, the Inn
mensely.. wealthy Gulf Oil Corpora
tton,, n,,.tnaugurated the, stock dividend
and melon cutting era Of. 1922-1s2s.
Gulf Oh led. the movement within
ZOO per cent stock dividend. The
stock Jumped from. .$400sto $500. -.
:, Standard Oil Follows. =
The Rockefellers followed imme-
,diately by deciding to distribute the
Standard Oil surpluses. The Standard
Oils-Kentucky, California. NfT.
Jersey. New York and Vacuum f61-
1ewed with the distribution from 100
per gent to 400 per cent Nearly thru
~ ore.standarda Oils are. 'possib1es.'
The American Radiator and Nation
ai Biscuit companies were doubtless
Influenced and also declared large
stock dividends: Many: others will
follow. / ! ..:ss<.' %. l.:s ~. ..'5 a.'.5
Our last-issre indicated rthesei pos
siHMties, The &probable effect on sfu-s
tuFes American markets is not exae-
Egerated. Nothing like it has ever;
happened before. it is unlikely to .
happen again*i.. a, generation -.
e. : :Dividends Piled Up. .=,-e,,.,.
The, secretarys :; attention also is
called, to- the. following from the Of
:ficial report Of the Standard On
company, The Lamp: =. :ssr ~. .sz.
-: In ten years. from 1912: to 1921
inclusive: the, company. New Jer-
sey Standard OIL Subsidiary. has
shown mt vntn9s <bef eforestaxes OF
S175 $3.50 k2E this sss,na 1l5617-.
S1f hissbee1 naids for taxes; 4222,-s
0e5, ,z19arepreents aggregate diVi-
dends and s}4s1,Ss0,s57 has been ab-.
sorbe edsby tie needs Of the business,
Commenting upon this. Congress-
II /. 3 j. -.
man Erear says. !: -, ~
This shows; il interpreted cor
rectly,;,. that Standard ; Oil of New
Jersey, the suk sidiary company un;-
der discussion,s made In profits for
ten pears s. per. cent or 77h per
cent annually that after paying
taxes 1T distributed. s22o per cent in
dividends Of ~ per cent annually to
Its stockholders; and In. addition to
this enormous profit st laid by in
suEpluses 34a7, ,5s0;357, :or<A per. cent
profit .eyeiy::year. 81 : =: ..- -
=. ~ They Escape Taxes. 80 .
: Z. On: this showing ]. ask you, isTit
possible that you cannot find ques-
Hon In kour mind for the imposi-
ton pshalty provided lin Section
.,220, and is lid; not: a fact, that your
has failed to demand
.of Standdfd i n a statement of it's
needs: an business and has refused
to enforce the, penalty provided in
section .12e; acting under your ad-
vice in the matter? Is it. not 'prima'
:facia' evidence that the purpose s0f
setting aside l37 per cent surpiussju
ten. years was to prevent the impoAE
5tion of, the individual surtax on
II you claim it Is hot.
then, indeed, congress has q duty 70
perform IN reaching by law the tat-
distributed. surplus that thus avoids
individual. surtaxes = :. s. sss.
E s:.s 81: Would Enforce Law. ~.
! / .Only secret records and secret
administration, of. the law makes this
startling situation possible" sxys.
CSnxressman Frear, who also notss
that this years treasury deficit W1tl
reach $s7o. 900, 900. due in large part
to the 345o, ,o60. 900 excess profits tux
|:repeals. urged by Mellon. - 81
Having :ins mind 5Lellon's melons,
consressman Trearscloses his extra.
ordinary indtetment with the follow
ling sentences ~; s.ts.s .S,s &
:; ''Renewing .my observation that.
lis an incongruous situaH dol. that ags!!sss as!s
YOU to enforce Section 22O. but asAin3
urging a strict imposation ofthe9
penalty therein provided to .reacns.
abnormal surpluaes. I am, etc. 3. 4
ESlYS.l. u, " MEMBERS SET S