Evening star., 1923-08-05

HuSeHe H. thompson, mead or
Crane. Paris & Company Of this city.
and president Of the Washington
Stock Exchange. has been nominated
as vice president of the Investment
Bankers Association. The nomina
tion of Mr.. Thompson. as well as
those new officers and governors, will
be voted upon at the annual meet
Ing of the association to be held here
on October 81, next
For president Of the body, John w.
Prentiss. one Of the mem bers of the
firm of Hornblower & Weeks, was
selected. and other vice presiden in
clude: Philip s. Dalton of Coffin &
Burg, Boston; Arthur Sinclair, jr., of
Esta brook q Company, New York; j.
A. Fraser OF Dominion Securities Cor
ster of Russell Brewster Il Company,
Chicago.
John G. Brogden of Strother Brog-
den d Company, Baltimore, was
nominated for treasurer and F. X.
Fenton of Fenton, Davis & Boyle.
as secretary.
The governors whose terms expire
in 1924 and who will continue in
Office are: j. W. Horner, jr., of Dillon
Read & Company; Joseph A. Rushton
of Babcock. Rushton & Company
Barrett Wendell. jr., of Lee, Higgin-
son & Company; Thomas B. Gannett
of Parkinson & Burr; Morris F. Fox
of Morris +. Fox & Company; j. r.
Edwards of the Fifty Third National
Bank of Cincinnati.
Governors whose terms expire in
1925 include: Ray Morris of Brown
Brothers & Company; John w. Mac
Gregor of Glover & MacGregor: J.
Clark Moore, jr., of Barclay, Moore &
Company; Tom X. Smith of Kauff :
man Smith Emert & Company, Inc
Eli T. Watson of Watson, Williams &
Company; w. o. Chanute of Bosworth,
Chanute & Company; Frank Remick
of Kidder, Peabody & Company; Fred
S. Borton of Borton & Borton. and
George B. Caldwell of Caldwell
Mosser G. Willaman.
Fuctors In Bond Buying.
The question is often asked, Who
is the tax-free bond buyer?" 1t Is
not always possible to answer this
query exactly, but IT Is possiole 20
figure for a few minutes and snow
whether a man can benefit from the
purchase Of tax-free bonds
Investors in bonds and mortgages
are interested not 50 much in the
rounon rates of securities which they
own. as in the net return availa pie
after paying all taxes. In the Dis
trict OF Columbia the investor has to
take into consideration two tax de-
ductions in computing the net re-
turn from a bond or trust note.
One is the District Intangible tax
and the other is the federal income
tax.
The intangible tax OF the Distrlct
is computed upon the market value
OF the security owned as OF July i.
At the present time this tax is one
half of l per cent per year upon such
market value. Thus a bond or trust
note selling for 95 is worth $3.50 and
would be subject to tax or $4t3
per year, irrespective of its coupon
rate.
The federal income tax is COM
puted not on the value OF bond or
trust note but upon the income de-
rived from il. The amount of the
tax is further varied with the
amount of the persons taxable in
come At the present time the rate is
4 per cent upon net taxable income
of less than $4,000 and is increas sed
by degrees until il becomes So per
cent on the upper levels of incomes
greater than 100000.
Harris. Forbes G. Co. has prepared
a table of net returns from per
cent taxable bonds or per cent first
trust for various incomes, which. in
their opinion. proves individuals
whose incomes are $4,000 or more
per year make up a large proportion
Of the purcha sers of taX-free bonds.
The table follows: