Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-09-26
TREASURY EXPERTS
CONSIDER TAX CUT
Mounting Revenues Result in
Effort to Tighten U. S.
Assessments.
BY JOHN r. SINCLAIR.


Special Dispatch to The star.
: NEW YORK.. September 26-Since
the war, Congress has reduced the in
ternal revenue taxation on four dif-
ferent occasions. 1t cut Of 1858 ,000, 600
in 1921. Three years later, the Federal
tax bill was cut again $5ls. 100000. In
1925 1t was again reduced by $442, 000,-
600 and last year by $222,o00,000.
Now the Treasury officers are working
on the proposition of fifth cut for the
new calendar year 1880. Throughout
last year the Treasury insisted there
would be no surplus But prosperity
kept up to a point where at the close
of the calendar year in June last, In
stead of a deficit, the Treasury faced a
surplus of $184,000, 900.
The first quarter OF this fiscal year
shows surplus Of about $4,000, 900 as
against deficit for the year preceding
Of $110,000,000.
Where viii the cut be made?
The tax cuts in 1928 were made
chiefly In the corporate income tax
will be given to those who pay on earned
income-persons who received very
little benefit from the 1928 cut. Secre-
tary Mellon has already intimated as
If the business of the United States
maintains the present high level OF
prosperity, it is not too much to ex-
pect a tax cut exceeding that OF 1928.
1t may even mean q $500, 100000 re-
duction.
The Glen Alden Coal Co. OF Pennsyl-
vania has become the largest producer
of anthracite coal in the United States
by it's purchase Of the Lehigh Il Wilkes
Barre Coal Co.
The Glen Alden stock is selling today
at about $145 a share. The Lehigh q
Wilkes-Barre Coal Co. received 676, 700
shares of Glen Alden stock for its
properties located in Pennsylvania. So
S128, 121 500 was paid for the II ,658
acres of coal lands, 26,125 acres OF sur
face and timber lands and leases, and
2,O74 acres of coal land in Pennsylvania.
The Lehigh company operates 10
large mining properties in Pennsylvania,
a property which the Central Railroad
Co. of New Jersey six years ago sold
for S32, 400 ,000 The Jersey Central was
compelled to sell this property as re-
suit Of a decision given by the United
States Supreme Court on a violation OF
Sherman antitrust legislation.
The Glen Alden production In 1928
was 8,442O00 tons. The Lehigh &
Wilkes-Barre output was 5,267, 900 tons.
Together these two merged properties
had an output Of 100000 tons, put
ting them into first place. The Read
ing Co., which has always been re-
garded as the largest reserve OF anthra-
cite. mined but 9,188 900 tons last year.
This Is the first big merger in the
anthracite industry. This move may be
the beginning of the clarifying process
so long awaited in the anthracite fields.
Another billion dollar corporation in
the mailing! The Standard Oil Co. of
New York and the Vacuum Oil Co. have
reached an agreement whereby a
merger Of these two giant oil companies
is about to be effected as result OF
negotiations which have been progress
ing now for more than one year.
The Standard Oil is already one OF
the Big Four in the Standard Oil
group, the others being the Standard
Oil Of Indiana. the Standard Oil Of New
Jersey and the Standard OH OF Cali
fornia.
This is the first legal tie-up of two
Standard Oil corporations since the
United States Supreme Court dissolved
them in 1911 Now they are getting
back together again.
Standard, Oil of New York Is COM
plete petroleum unit 1t produces, trans
ports, refines and markets oil products.
1t is the largest distributor of gasoline
in both New York and New England.
It has 1880, 900 shares of common
stock selling recently at about $45 .
share upon which 81 so a year is paid.
The Vacuum Oil Co. concentrates pri-
marily on foreign trade. 1t also pro-
duces crude oil in Louisiana and the
hee NAT nm If
stock upon which 1t pays 81 a share.
Together, these two companies have an
open market value Of about 81 .375, 000,-
O00-but their combined assets, as re-
ported. amount to $3.50. o00,0 900.
The basis of the merger has not been
announced. Some shrewd observers be-
lieve that this is the beginning of re-
merging of many Of the Standard Oil
units which have been going it alone
since LELAND going very successfully,
too.
Twenty years ago / left the stock
market and moved elsewhere. had a
membership on the New York Curb Ex-
change and sold 1t for couple OF
hundred dollars. Now look at what they
are worth!"
This gentleman had not been in New
York in IS years. He was remh1iscing.
He made a mistake IN selling his curb
membership. for the last sale was an
nounced this week for membership on
the New York Curb Exchange and the
price was $254,000-the highest ever
paid.
Up to 1921, when the Curb Exchange
moved indoors. memberships rose very
gradually. Since that time they have
leaped.
Today, there are $50 memberships on
the exchange, which are worth at pres
ent based on the last sale price, $780,
100000. This is an appreciation Of
about $500 per cent in the value OF
their memberships since 1921, when the
institution moved indoors.
Few stocks can show any such appre-
citation.
The New York Stock Exchange mem
bership stands at $685. 900. It was only
few months ago that each Of the 100
members of the exchange received one
right" four Of which make up an adj
ditional membership, or ats new seats.
(Copyright, 1929. by North American News
paper Alliance)