davidaulloa/AmericanStories huggingface dataset:
New-York tribune., 1922-01-15

Tho tOta tax Of the corporation and
inc two stockholders. if the business
were incorporated. therefore would be
seA ,"-p. as against q total Of $3.50 $50 if
fhc business were conducted a. a part-
1ersnip. The discrimination in tax in
ucn cases would be very serious to in
fividuals and partnerships who desire
10 leave their earnings in their busi-
Vess TO NEE, obligations or to take care
IT extensions and expansion, and lucor-
rofaf'or may be ueces airy to overcome
mo h"aNy penalty of operating as a
psr'nersnip or an indivdual
Ih'S discrimination was marked in
'he cas Of partnerships ana corpora
'I'ns even when the excess profits tax
Fa 10 effect, but the elimination OF
iht cNccss profits tax and the retention
oi hlgh rates OF SurtaX have greatly
increased the inequality. Congress. in
ne new law. has rccOgr lZed the inius-
'ice Of imposing high Surtax rates on
partnerships aud individuals compo,
ih9 with corporations and has accord
ngly provided that IN the case of the
organization as "a corporation within
cur months after the passage of the
1871 act of any trade or business in
winch capital is material income
producing factor and which was previ-
Nldual. 'he net income of such trade Oh
pns'ncss from January |. 1921, to the
late OF such organization may. at the
option of the individual or partnership
pe taxed as the net income Of cor
poratlon is taxed.
In such cases the undistributed
FONTS OF the corporation for 1927 and
ereafter would not be subject to in
\ tNidual income tan. only the amounts
stributed being taxed as dividends
ne privilege afforded taxpayers under
ihis section is not allowed to any trade
or business. the net income of which
OF the taxable year 1927 was less than
- per cent OF its invested capital for
such year.
Partnerships with smaller incomes
viii fare better under the new law
man corporate business similarly
constituted. For example. the ind.
'ldual members of 4 partnership com
ro>ed of two members ard having a
ret income for 1872 Of S50.Oo0 will pay
Il saN IN the aggregate of SG.l20, as
sNming :hat neither has income other
than his partnership profits and that
each receives personal exemption Of
N-.ouo corporation similarly CON
New-York tribune., 1922-01-15
$25, 600, O,OOOU. S.
Treaty Payment
To Aid Colombia
Financial Plight Of South
american Nation To Be
Helped, Although I'm
pr0remept May Be Slo,u

Especial Foreign Financial Correspondence
BOGOTA. December 20.
TIME event Of greatest impor-
tance in the Colombian finan-
cial world of recent occur
renee was the approval, on Dccem-
Der %, of the treaty by which CO.
lombia is to receive S25, 100000 from
the United StateAs Its beneficial eff
tects have not been immediate, but
hopeful! atmosphere has been ere
ated in financial circles. The event
came somewhat as a Christmas pres
ent to the Colombian people. the
Legislative bill by which the treaty
was approved having been signed by
the Executive Of Colombia on De-
cember "a.
by the terms Of the treaty the first
payment Of S5,o0o,0OO is to be made
within six months from the date of ex-
change of ratifications, which perhaps
Will be delayed for several months.
Inc money, when received taking into
consideration certain eneagements en-
tered into by the Colombian govern
mcnt' doubtless will be as beneficial to
New-York tribune., 1922-01-15
Practice Of Com mpaniies

AS preliminary to an attempt to
lay down certain general principles the
actual practice Of various representa-
tive companies is stated with a few
words about the nature of the bus-
ness they do, where this is necessary
The National Biscuit Company has
already been mentioned The United
States Steel Corporation makes no val
uation for balance sheet purposes of
its good will. The only point to be
noted about its business in connection
with this discussion is the fact that
1t does not deal with the consuming
public direct or with the small retail
er. 1t occupies a dominant position in
it's field.
The American Woolen Company oc-
cuples dominant position in its field
In its balance sheet statements it puts
10 valuation on good Will or patents.
1t also does not deal directly with the
ultimate consumer.
The American Locomotive Company.
though having no competitor on an
basis. and one competitor less firmly
ntrenched. does not deal with the CON
sumner of transportation. but does deal
direct with the railroad executive
from whom it receives orders for its
product. 1t puts no valuation on its
CrNd will
New-York tribune., 1922-01-15
Mgh-Houdrd .lrifudr

other manufacturers and whole
salers in Il wide variety of lines also
express the opinion that the buyer
stil maintains. high h-haudcd attitude
N dealing with the seller, with the re
suit that the latter have "A difficult time
~ maintaining their backbone Few.
indeed. arc the wholesale houses where
priccs will not be shaded or other
concesslaons made to the buyer who
rs ready to place Il sizablc order at
present Credit departments and the
financial shcads of houses have laid
down some strict rules regarding what
can and what Cannot be done by the
sale Sman IN the way of conceding Ger
tam points to buyers, bu, most of
these rules are subject 10 fracture
WHEN a veal order is in sight
Perhaps the mems clothing trade is
the worst sufferer IN this respect just
now. number of clothing manufac-
tuners gathered AT the dcs signers' con
Ncntion here last week were cXchang-
ing their experiences in AZ antc-room
outside the convention hall. The
buyer. said 4 manufacturer from up
state. "dcmands everything he can pos
slhlN think of. | had one buyer re-
icct $4,000 worth Of suits simply be
cause the button holes on the coat
Japcls were made by machinery instead
New-York tribune., 1922-01-15

the general iinancia lerests OF the
country as to the government treasury
These engagements CONSIST in an Of
fetal promise by the government tns'
the money proceeding from the treaty
will be invested i'll public improve
ments. such as railways and port ia
cilities, and the several Americsh
groups in Bogota seeking railway con.
cessions express keen satisfaction over
the passage OF the treaty.
As matter of fact, the fiscal condl'
tlon CT the government remains WIN,
out Improvement, as m ght be inieries
from an uprising due to hunger wblee
took place recently at one OF 1a'
prisons maintained at government q
pense, in which three prisoners VT
seriously injured, the contractors W.
the supply Of food to the prisonsea,,,
stating that they were owed S2s'ws
from the government, with no prospe''
OF early payment. "a
10 meet this situation II 5 rspoIlss
that loan has recently been placed ~
England for 100000 and this III SPY
Of several offers Of like loans 10 ths
government by American interests.
has net much improved. repre- sentativss
of American houses visiting Bogota IT,
porting that existing stocks OF n,el,
chandise are sufficient, on the average
for from four to six months.
A serious effort is apparently being
made by the Colombian Congress 10 ss
duce appropriations for the next hs."; h"S
year to meet the estimated income a"s
on the whole the tendency OF thtuR
financial is for the better rather tna'
for the worse.
In the approaching presidential els. .ss
tions, which take place in February, ~ Nv
candidate Of the Conservative pa';,
General Pedro Mel Ospina, bids fsli inv :"
be elected, and it is the general opih,u. 10.
that this would produce favoraoic .hs j,
action in the economic affairs OF s"s ,n
country, both public and private !" a's
to the fact that he is reputed 10 y. ~
man of sound business sense ana ~.
ccived part of his education IN VI
school of mines of the unwers'ss y
California.
New-York tribune., 1922-01-15
Manate Sugar Has Loss
In Year 1921 of $$7.4O2
Doubling Gross Earnings. Com
Germ Rcyorts Deficit Of
ST. .O2c 600

In 1921 gross earnings Of the Manat
Sugar Company were nearly twice as
large AS in 1920. but notwithstanding
this the company had an operating loss
OF SS7, 900. compared with an operating
profit in the fiscal year ended October
81, 1920. of S2.GGS 900. There is in
cludcd in income in 1921 interest re-
celvcd or current accounts
Manatl Sugar owns asugar produc ing
estate on the north coast Of Cuba OF
about 207 900 acres and has a factory
and warehouse and railroad into the
cane field. 1t has outstanding $4,000,
600 common stock and So. 100000 pre-
ferred. and paid in the fiscal year
ended October 81. 1921, its regular
per cent dividends on the preferred,
calling for S245 600. and paid in all : y
per cent, calling for S75O.0O0. On its
common, in the fiscal year ended Oc-
tober 81, 1921. This left deficit to
carry TO profit and loss Of 81 0S2, 900.
New-York tribune., 1922-01-15
Producers Complain Of Merciless Buyers

is The open season fos buy
crs. The professional purchas-
ers for the vast number Of
large and small retail stores all over
the country are making their annual.
>emi-annual, monthly. bi-wcekly or
weekly trips TO the wholesale mar
ket. The buyers are considered
game for the manufacturers and
wholesalers, who in turn are locked
upon as fair game by the buyers
Computations made from the list Of
arrivals o. buyers II The Tribune for
the last week reveal a far greater num-
bcr than were in the market year ago
On Monday 632 buyers were registered,
about 100 OF them coming from Boston
alone.
Two or three years ago this number
of buyers in the local markets would
have mean; the booking Of record
breaking business Now. however, the
great number Of buyers here did NOT
send the volume Of business to record
heights. Some increase in the business
booked by wholesalers and manutac-
turcrs was reported. but not enough TO
cause any feeling of cXUberance.
"The buyers are here" said promi-
rcnt dress manufactures, "but they are
rot buying very libcraliy. Most Of them.
because OF the high handed manner in
which the buycr ruled the market
throughout most Of last year, have be-
come hard boiled.' | am not blaming
chem for. their actions in the market.
but al the same time the arbitrary po-
sition that they take III demand ng
New-York tribune., 1922-01-15

On the othe, hand, me ~ \. Fair
banks Company, or rather tho Amer
can Cotton OIL Company. when own
its capital stock, carries good will, pa
ents. trademarks and contracts at 81
600,000 and real estate buildings an
machinery al s17,240 o0o. and get wer-
II possible to make valuation OF the
ceiling power OF the words gold dus
washing powder" "fairy SOAP" etc. L
is probable that any fair expert in tn
trade would put far higher valuatio.
on these trade names thar the compsnE
itself does in its balance sheet
Take another case: The Unitsd
States Radiator Company is. TO say III
least. long second in It's field yet Z
carries its good will at $4,000 900 Th.
may not be an xaggerstion, or it mag.
1t IS case for an investor TO scrut
nize with care. Going further. how
ever. the l.. r. Steel Corporation, Ltd
puts valuation on its good VII which
represents pretty surely a bookkeep-
ing item rather than anything With
determlnable earning power.
The further detailed study or The
practice of corpora lions in their treat
ment of good viii or their balance
sheets IS carried. the more nlain il BE-
comes lnat the investor mNs', OF re
cessity. place d valuation on good w
for himself. through his genera
knowledge OF the character of the
business. and the only help tina. the
corporation can give is 10 state spe
cifically and separately how it treats
good Will in its accounts. 1t does NOT
greatly matter whether the companl
carries its good will a. 81 or whether
it carries it at $4,000 00o. which pre-
sumably represents an estimate Of cos'
based on an exceedingly conservative
valuation process. Where, howevef'
the company Jumps the good H'l y
with plant. structures. etc. i deprlres
its security holders O. chance to for
an independent judgment Of the value
Of assets without. in thc great maJorltf
of cases, concealing anything from rs
competitors which could be OF value 10
them.
New-York tribune., 1922-01-15
Wool Stocks i'm Boston
Half of Last Year
Sn.olo, O.Spolch 10 Tic TciA1ln.


BOSTON, JAN 14.-Stocks Of unsod
wool on hand in the Boston market. as
OF December 81, 1921. as compiled
under the auspices of the Boston Wool
rade ASSOCIATION. show total of 63 =
o42, pounds. compared with 139 ,6O2 :
449 pounds at the close Of 1920 While
the available supply is less than half
what 1t was a Year ago. it is hardly a
laN comparison, because in 1920 there
vas an abnormally large amount. but
'hc erect of the announcement on the
general situation can be nothing else
than bull.sh. The figures show that the
amount OF fine wool is becoming low.
ihls year the supply Of territory wool,
or wool from the Far West. is only
l69S3.200. compared with 69,57I ,402
pounds year ago The amount Of
Aceccs wool from the Middle Wcst,
or 36,69a pounds, is approximately
million pounds more than last year.
but this was not surprise to the
trade. The total amount for 1872 does
rot include the government wool nor
the amount in bond.
Compared with two prc-war years
the surplus at the end Of 1912 was
80 'S9 .S55 pounds in 10 was GO. $685.,
940 pounds. The comparatively small
;.mount OF tne wool shows that speedy
on IS highly desirable on the tariff
both for tho wool grower and the wool
tlauc IN general.
Hetcent reports from Washington
are to the effect that Senator'S and
Congressman regard favorably the re-
cent communication sent By the Boston
Wool Trade Association to the Senate
Committee on Finance. urging that the
committee indicate as soon as possible
what the rates of the wool schedule
Will be, and stating that "the excessive
rates of the emergency tariff have re-
suited in a virtual embargo on imports
of wool. Hopes are expressed in the
wool trade that the final decision will
not be what manufacturers would re-
gard as unreasonable
New-York tribune., 1922-01-15

trade has notably improved as com
pared to the preceding year; in the
Nisf eight months OF 1921 the excess
OF imports ~, milliards Italian lire)
on the exports CAS- mlliards Italian
ilre} is calculated a. about 40 rilliards
lire. with decrease Of about 3 mil
uaids as compared TO 1920 This inn
proVemcnt is due in part TO the fact
mat some OF the nos' important raw
materials tcoa!. wheat, etcl have re
"uced III price; however, the difference
sNll remains large, and it is covered
by the cmigIants' remttances and bv
'he money spent in Italy hy tourists.
The difference is specially notable in
regard 20 the lNited States. from
whence Italy imported in the frst six
worth # goods, exporting only about
an eight t616 million lire). Half the
imports from The United States are
cereals; a quarter. cotton. and more
,haA an eight, coal and mineral oils.
n" italian exports are three-uuarters
spun SIX and spun SIX waste
Nov that the Fiumc question is set
''ed. The Italian government endeavors
10 contract lasting economic coDnec-
NoA7 with all the Balkan States ana
AusiI.a ; successors. In the conference
recently held al Portorose, near Trieste.
some satisfactory agreements Mere
reached with the governments Of Juyo-
SiaN!a, Ezecho-SlovaNia. Rumania. Po-
land and Austria regarding railway
transport. postal. ,elegraphic and tcle-
phonlc services. arranging also for a
:eclprecaily favorable system of Gus
IONS saci.itle>. ltalys ambition is to
regain IN the Near East, the CONNER
c'al traditions Of the maritime repub
hes q Genoa and Venice at the time
of the Middle Ages
New-York tribune., 1922-01-15


ne excess profits ;aN 5 repealed and
81 rate income taN o. Ia per cent
not income IS imposed on corpora
'feas. The surtaxes for individuals are
,educed 20 & maximum Of 80 per cent.
ne repeal Of the excess profits tax.
Aough deferred. gives relief from Il
nuroensome ana intricate form o.
sNatlon after December 81. 1921. aud
1ouio add incentives 20 the revival
NJ corporate activities. The failure TO
feducc surtaNes to "a point which viii
Nttract ,he possessors Of large incomes
o invest IN taxable securities. instead
# ron- taxabies. is = source of general
T.: appointment
me new rates % tax for 1929 are
~ particular interest 10 taxpayers car
'PlnF on businesses a : indlviduals or
nartncrships. and it may be found ad-
sable. because of the discrimination
tsTes between individuals and part
ierSnips and corporstioNs to change
iae torn Of business organization 20
avoid the imposition Of heavy surfaces
ne effect of the difference in the form
- taxation of corporate and non-cor-
pvfatt concerns having large incomes
sn bost bc shown by comparison Of
Nn concerns with the same income
rnc operating A. corporation and tho
other as partnership
let us consider, ,yr example. part
rftship consisting Of two members
earning not income for 1922 Of $500
"Vo. Assuming that the parners had
no other income outside Of their part
nershlp cssnlngs. each would be sub
'sct 70 tax Of Sl3ieio, whether or no.
IN" earnings of the partnership were
d stfia- ted. If the same concern with
'Wo Stockholders, were Incorporated, it
= ouid pay a corporation tax of S75 600
ana tne individual stockholders would
raS only on the amount OF the earnings
ar'raliy distributed. Thus. if each
tockholder received in dividends only
$4,000. and the balance were retained
.or employment, in the business of the
corporation, tho individual TAX of each
sfoekh lder. providing such dividends
constituted the cntirc income. would
he s 1890.
New-York tribune., 1922-01-15
G0mparing Costs

The cost of tires and brake shoes
may be figured from the experience of
the road with standard equipment, and
small sum. say. $3.50 annually. NAV
be charged for overhauline of engine
and sion. With these data as a
basis approximate costs can be com
piled which will permit comparison
with steam operated equipment. Even
under the most unfavorable conditions
ior operating gasoline car it will be
found that these costs are much lower
than those Of steam-o operated equip
mcnt.'
In general. the chief ADVANTAGES nos
sessed by this car in comparison with
steam or electrified service On shore
lines are summed up as follows:
frequent and speedy service at a low
comparative cost.
One man may serve as operator and
conductor. 'O
The usual terminal facilities. such ne
Goa! storage, water tanks and ash pits
are eliminated. '''''
The capital investment compared with
steam equipment is greatly reduced
The necessity Of operating m;xcd
trans OF freight and passenger cars
with the attending delays to passen,
gers while the freight is being handlcd
is removed ''"''''e"'
New-York tribune., 1922-01-15
Italy Electrical
Industry Hard Hill
Bv Long DROUGHT
Steam Trains Supersedc
POVPr CphicIcs in
Some Sections: FOREIGN
Trade ShowS Increase

" ~ . - : F1''0'"
n ONE, Dee. 23--For wears
J..l, h.l 40. ,>u;
IN '' ''0' e\Pe''e'''e'
such severe drought a. is
10Y, being felt IN northern Italy
..d .h, o,.;.....,
"''' e'''- eN''P'io''"l NeH'i'@VN ol
water Is the cause Of many losses
i.e,- :, ~, o.,,.,..l ;,,,,..t,.,.
'''> ''''''''''S '''''
New-York tribune., 1922-01-15

In contrast witt ..esc the Americas
Radiator Company Icais directly with
the consumer and likewise with the
builder. contractor and architect, but
whether dealing directly with the CON
sumner or not it manufactures prod
uct which the consumer is quite likely
to specify by the name of the manu-
facturer. 1t Jumps its real estate,
plants. machinery and patents all to-
gether and carries them at a little
over S2l 100000 on the latest available
balance sheet
The United States Radiator Com
pany, competitor. but rather far from
competitor of equal size carries its
good will at $4,0000O0, and its plant.
New-York tribune., 1922-01-15
Railroads Turn to Motor Bus
Adopting Casoline-Driven Cars for Short Lines in
Effort TO Reduce the Expense
of Operation
n THEIR efforts to find more
economical means of operating

n THEIR efforts to find a more
economical means of operating
improbable branch lines sev
cral railroads of the country are civ
ing serious consideration to the in.
stallation Of gasoline driven vehi.
cles, more or less the counterpart OF
the ordinary motor bus except that
they are made so as to run on the
tracks used by steam trains.
Cars Of this character are essenti-
ally for passenger service where the
traffic density is light and are not in
tended to serve as freight carriers
lhcN are a one-car proposition aimed
at frequent and speedy sclvicc at a
low compa parative cost.
The New York. New Haven g. Hart
ford has one Of these gasoline driven
busses IN service between Derby and
New Haven. Conn, a distance Of ten
miles, making two round trips a day.
Three more -have been received and
VIII be put in operation on other short
branch lines. The Chicago Rock Isl
and & Pacific, the Northern Pacific and
the Great Northern are considering the
adVlSapllity of substituting motor
bus-'s for passenger steam cars in
rural districts
A. }: Brossean, president of the In
ternatlonal Motor Truck Company.
nanufacturer of these cars, says that
he has received inquiries from rail
roads ell over the country regarding
the superiority Of such a vehicle over
the present means Of transportation.
Sold to Many Roads
1--WE have actually sold to from
twelve to fourteen roads, said Mr..
Nrosseau, Including the Pennsylvania.
hut the majority are little roads. where
the traffic is too low for economical
steam operation. We figure that new
equipment OF this character will pay
for itself in one year and will more
than cut in half the cost of providing
passenger service.
"Thc initia cost Of ono of our Mack
rail cars is approximately $l6,5O0. COM
pared with $4,000 for a light steam
locomotive. such as is used in passen-
gcv service on branch lines. and S25.-
600 for modem steel coach In some
sections these rail cars would be able to
compete successfully with iitneys
They offer smoother riding and safer
means of transportation"
w. l.. Bean. mechanical assistant to
r. }. Picrson. president Of the New
Haven. said that the road was giving
the rail motor bus trial because of
The necessity OF finding a method of
hauling passengers less costly than
steam.
"Thc New Haven" he continued. "has
a considerable mileage where the traf
fic density IS light. branch lines from
two and a half to thirty miles in
length. Service must be maintained to
meet the requirements of an army Of
workers. many of whom do not reside
in the town where they are emploved.
Under present conditions this ~ratfic
costs more than the revenues derived
thcrcfrom. If we can find means Of
New-York tribune., 1922-01-15
Il. r. MalIinsOn Profit
Was $338,357Last Year
Silk Concern Earns OF Cents
Share on Common
Stock

H. X. Mallinson & Co. earned gross
81 ,ooi 600 in the fiscal year ended Oc-
tober 81, 1921, compared with S2,27G.-
600 in 1920. Operating expenses we're
abou; 100000 less and net earnings
amounted to S459 900 in 1921, as com
pared with $4,000 in 1920 The com
pany charged $173.00o for depreciation
in 1921. against $3.50 900 deprecia-
tion in 1920.
Net proht was s3ss 600 in 1921. com.
pared with S345 900 in 1920. This is
equal TO 81 cent sa share on the 200.O 600
common shares, as against 67 cents a
slar, in 1901
New-York tribune., 1922-01-15
EQuj Trust Sales

WASHINGTON, Jan l4.-Sale Of
railroad equipment trust certificates to
the amount Of Sl2.626.30O was an
nounced to-day by Director General of
Railroads Davis, making a total of
Sl6o'Ol!,700 in these securities disposed
OF by the government to date
New-York tribune., 1922-01-15
Central Bank Closed

RALEIGH. \. c., Jan. l4--The Cen
irai Bank and Trust Company, former
y The City Bank. with capital Of
SO 900 and deposits Of approximately
S2o0.0O0. was closed to-day with a
notice posted on its doors ANNOUNCING
tne institution was "n the hands %
the State Bank Examiner'
New-York tribune., 1922-01-15

Piggly Wiggly Sales Increase

The Piggly Wiggly Stores. Inc. re-
ported net earnings for December.
after all charges and depreciation, of
slol 600, bringing the aggregate for the
final quarter to 1892, 900. Sales in the
month totaled $2,SO3,2l2 and for the
year 1921, $30.204 ,420. an increase of
SoO6 .69S over the receding Ncar