International., 1925-11-15
TRADE. AND TRANSPORTA-
TION KNOW NO STATE LINES

w 11OAA4AN0A WV ~ W, ANOV. L.
The relation which transporta-
tion holds to business, and how
large corporations in cities like
New York are enabled to send
ther products over rail and high
way, into remote hamlets and
from which large profits in the
aggregate are received, is set
forth in statement issued by the
American Association of State
Highway Officials.
Out of "a, 800 corporations max
ing reports through New York
State, a number of examples have
been taken to show that business
knows no state lines, and that cor
poration profits from which Fed
eral revenue payments are made,
come from widely separated sour,
ces.
Sugar is taken as one example.
One company with headquarters in
New York City netted S1,515,972
out of the beet wheat Fields in
middle and western states. An-e
other, refining company, also
with main offices in New York
where Federal revenue is paid,
but whose 25,747 stockholders re-
side in every state, enjoyed net
income of $8,557,724 from the op-
GRAFTON of plants located outside
of New York State, according to
figures taken from 1923 returns.
Transportation helped biscuit
company reach out and secure a
net income of $12,092,828 from
trade areas far outside of the
state in which revenue payments
were made, again proving, accord
ing to highway Officials that many
states contribute to revenue pay
ments for which one state, as
matter of bookkeeping detail, is
given the credit.
One ten cent store corporation,
with stockholders in every state,
and more than one housand stores
scattered throughout the country,
but with it's main offices in New
York, was able through the far
reaching facilities of transporta-
tion to obtain a net income of
500, ,698,18O in 1923.
A tobacco products corporation,
domiciled in New York, but with
its stores and factories widely dis
tributed, received through the aid
OF, transportation a net income of
$4,529,556 hich for revenue book
keeping reasons was credited who'll
ly to New York.
Another example given is that
Of cereal company, with plants
in Michigan and Canada. Accord
ing to the highway statement, this
company, having headquarters in
New York, earned net profit of
$2,881,466 in 1923, the revenue
credit for which was given New
York, despite the TACT tlat it's
earnings were produced elsewhere.
Similar facts are shown in the
nationwide sales Of radiators and
cans. From radiators placed in
homes throughout the entire
country, net profit of $9,908,-
217 was received in 1923, the cre-
dit for which was given to New
York again as a bookkeeping de-
tail, and not because the profit
actually came from that state.
In cans used by housewives and
canneries throughout the United
States, the 1923 revenue report
shows that the net proceeds were
l5,4I3 1O2 for which New York
received the credit, merely for
bookkeeping reasons.
One other curious point brought
out by highway officials in their
study of transportation and its re-
lation to business, is the fact that
New York. for example, is given
the credit in revenue returns, for
having earned a net income of
$13,011,215 in the transport and
sale of petroleum by a company
which has no property in New
York, beyond its office equip
ment.
Numerous other examples are
cited to show that transportation
is becoming more vital to business
each year, and that any attempt
on the part Of the so-called richer
states to shirk their full share OF
highway transportation develop
ment is, according to the highway
officials viewpoint, a false posi-.
tion and one that would, if per-