Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-02-09
Stock Market in 1923
Made Heavy Incomes
BY HARDEN COLFAx.

A glimpse into what happened In
stock market operations In 1928. an
active year Of upward trends, is AFFORD
ed for the first time by income tax
statistics made public last week by the
Treasury Department, whetting the
mental appetite for what figures re-
fiecting the 1929 recession will disclose.
Preliminary figures Of the Internal
Revenue Bureau, compiled from returns
f1led to August 81, show individual tax
payers last year reported net incomes
OF $24 1926. 100000 received in 1928, an
increase OF $2,052 ,000, 900, or zoe per
ceding.
What is highly significant Is that, Of
this aggregate income, $2,943, 000, 900, or
1888 per cent Of the total, was derived
from profits from sale of real estate,
stocks, bonds, ETC., other than capital
gain from sale of assets held more than
two years. This figure Is an increase
Of $l,19S, 000, 900, or 68.6 per cent, over
corresponding figures for returns fled
in 1928, for 1927 incomes.
Additional evidence OF money-making
in stocks Is seen in the item of profits
from sale of capital assets held more
than two years, which for returns filed
last year accounts for $1,843, 900, 900, or
CAT per cent of the total net income re-
ported by individuals, and Is an increase
Of $777,000, 900, or 70 per cent, over the
preceding year. The conclusion is
pointed that not only was there activity
in real estate In 1928, but that many
stockholders disposed Of their old hold
ings in corporations at the attractive
prices OF rising market.
\
Taking the reasonable assumption
that much of the large increases in
these two items may be attributed to
stock market profits, 1t is worth while
examining the income received by in
dividuals from dividends Of domestic
corporations to determine II distributed
earnings increased to an extent to juSti-
fy steadily advancing quotations on
stocks. Dividends accounted for 81, 403.-
000, 900 Of the net income Of individuals
in the returns filed last year, an in
crease of $247 900, 900 over the preced-
ing year, or So per cent. AS . matter
OF fact, dividends constitute smaller
percentage Of the total income Of in
dividual taxpayers in 1928 than in 1927,
the proportions being 15.45 and 1898
per cent, respectively. Salaries and
wages made up $10,263 ,000, 900, or 1901
individuals last year. This was an in
crease Of $217, 000,O 900. or 81 per cent,
over the preceding year, when salaries
and wages accounted for 36.49 per cent
aggregate individual income.
Greater Justification for higher stock
prices in 1928, may be seen in net
earnings of corporations than in in
creased dividends. Corporation income
tax returns filed last year show net
incomes in 1928 Of $9,o3S. 00O, 900, an
increase Of $l,469, 900 900, or 1920 per
cent, over net incomes in 1927. How
ever, this Is an increase of only $685.
000, 900, or 3.51 per cent, over their net
incomes in 1926. Deficits Of those cor
porations which had no net incomes
were smaller in the aggregate in the
reports last year than In the year i'm
mediately preceding, S2,15o ,0O0, 900 con-
trasted with $2,311 900 900; smaller also
than for 1925 operations.
That all individuals did not succeed
in making money from the activities Of
1928 Is evidenced, however. by the fact
that the preliminary statistics disclose
general deductions from gross income
dividuals filed last year, an increase Of
S34o, 0O0, 900, or 90 per cent, over the
preceding year. This item includes
losses suffered In sale Of stocks, bonds,
real estate, etc.
Complete figures of income tax COL
lections, also made public by the Inter-
nal Revenue Bureau last week, show
that corporations last year paid Uncle
Sam 81 asa, 900 900, an Increase Of $780,
000, 900, or 243 per cent. over payments
the year previous. Individuals paid
$i,2Ss, 600 goo income tax, an increase