Evening star., 1925-09-02
VALUE OF INCOME
TAXFACTSS SCORED
Business Experts Declare
Exemptions Help Hide
Much Vital Data.
BY j. C. ROYLE.
Al Dispatch to The Star

Speciai Dlspatch TO Inc star.
NEW YORK. September Open
ing of the income tax books and pub.
lication of the amounts paid by indi-
viduals and corporations has yielded
no information of commercial OF
business Importance That was the
consensus OF opinion today of men
in widely separated walks of busi-
ness endeavor. On the contrary
these men asserted, the figures have
provided a tremendous amount oi
miSinformation and are not reliable
as indicating either the trend oi
business in 1924 or the probable de-
velopments in the remainder of this
year and 1926.
Even men who say frankly they
would be glad to have certain reli-
able information regarding trade
rivals admit they have been disap-
pointed. They point out that mere
knowledge of the sums paid as taxes
without knowledge of how they were
arrived at. is of minor importance
The figuring out of an income ta2
return with every piece of data avail
able is complicated job. To start
from the result and work back TO the
data Is almost an impossible one.
Tax Exemptions Big Factor.
Investments in tax-eaempt secur-
titles have complicated calculations
immeasurab bly,. Some corporations are
known to have been in possession on
December 81, 1924. of tax-eXempt
Government securities to the amount
of several times their current liabil-
ties. Profit and loss surplus accounts
are crowded to the limit with bond
issues on which no tax is paid. Taxes
have been liquidated by some cor
pora ations in the form of payments
by subsidiary companies under a
separate return
Business men point out that so far
as corporations are concerned, it is
possible to gain much more detailed
and authentic Information from the
formal annual, semi-annual or quar-
terly reports of the company itself
than from the tax figures and to do
SO earlier than the latter are availa BILE.
Returns Very Confusing.
AS TO individuals. the uncertainty
of basing definite conclusions on the
returns becomes at once apparent
from the lists themselves. William
Wrigley, chewing gum magnate, for
example, paid a tax of S2.644, as
against Ss36,565 the previous year.
although no catastrophe sufficient to
cause such difference is known to
have occurred in his business aCtivi-
ties. Few believe the S345 paid by
Charlie Chaplin indicates the real in
come of the movie star. Returns
made by Will Rogers. Rudolph Val
entino and other stage and screen
celebrities are equally confusing. On
the other hand, one manufacturer
whose company in 1924 is known to
have had nj
made a return of nearly $500 600.
Oppose Idle Curiosity.
Business men in numerous lines
here were asked today why they OBJ.
jected so vigorously to the publication
of the income tax figures if their ri
walls could obtain SO little valuable in
formation from them. The attitude of
the majority was voiced by corpora
ton lawyer who declared he objected
to this publicity for the same reason
people hung curtains to their win
dows.
ut may do family no physical or
financial harm for them to have pass.
ersby staring at them through the
windows" he said, They may be en-
gagged in perfectly innocent activities.
They may have nothing to hide. but
the normal self-respecting family is
thoroughly uncomfortable under such
scrutiny. They are entitled to a Ger.
tain amount of privacy and protection
against idle curiosity. The corpora.
ton or the individual in most instance
feels entitled to just as much protec.
ton against idle curiosity in financial
affairs"
The advocates of the publica ton of
the figures, on the other hand, declare
that the publicity given the returns
made has acted as check and safe
guard on fraud and has provided in.
formation TO which the public is en-.
titled.
Copyright. 1925D