Evening star. [volume] (Washington, D.C.) 1854-1972, 1932-08-03

ton to ll9. TheSe
stores we're closed as a result Of ex-
piring leases, which it was not consider
ed advisable to renew due to changes
in local conditions
Net earnings for the six-month period
after providing for all charges and Fed
eral income taxes, were S171 1852
During the period dividends were paid
on the outstanding preferred stock in
the amount of S73,129a6, leaving a
balance Of S90,047O6 as earnings ap'
plicable to the common stock, which is
equivalent to 80 cents per share on
y 122,737 shares outstanding throughout
. the period.
Expenses have been kept under eff
II Gent control and substantial reductions
II have been made in comfortable operat-
h ing costs, Mr. Gibbs says. Increased
y taxes, especially Federal income and
4 Federal Excise taxes, undoubtedly will
= play an important part in the profit pos
n sibilities of the company during the next
I" several months.
| The financial position of the company
on June 80 was better than at the
beginning of the year. the ratio Of cur
fTent assets to current liabilities being
. .58 times, compared with times on
January /, 1882. The company has no
bank or commercial loans outstanding.
quired by purchase 1,487 shares Of its
outstanding preferred stock for the pur-
pose of retirement, in accordance with
the sinking fund provision of its charter.
While there has not been any notice
able improvement in general business
conditions, it is believed that contin-
uation of the policies which have en-
abled the company to earn profit
during difficult period will prove sound
in the months just ahead. Any i'm
provement in business conditions should
be reflected by increased sales and
earnings, President Gibbs concludes.
Compton Scores Forest Taxation.
Wilson Compton of this city, secre-
tary of the National Lumber Manu-
facurerS' Association, and head of
American Forest Products Industries,
has just made report for the United
States Timber Conservation Board, in
which he declares that the forests are
being destroyed by taxation. The re-
port shows that this is no acute 1882
condition, but is chronic. 1t is estimated
that in this particular bad year two-
thirds of the gross sales of the lumber
mills go to pay taxes, leaving no net
income. The only course open to the
iilmberman, the report shows, is to
1iquidate his trees before the tax col
THE widely practiced system of tax
ing standing timber on the sole theory
that it is land improvement is both
unnecessary and uneconomic. All that
is necessary is that forest land be taxed
as other crop-bearing land is taxed,
namely, on the value of the land it
self. Any taxation necessary imposed
on the tree growth as distinguished
from the land should be levied on the
yield of forest products when cut. Every
other country which has solved its
forest problem has learned that fact
and is applying it.
Equal revenue could be obtained and
the pressure for hquidating on an un-
through 1evying the tax on yield or
cutting basis The pronouncement of
the Timber Conservation Board fixes
attention on the archaic and unSuited
habit of taxation customarily applied
against timber and argues the adoption
OF more modern and more apt methods
with the same benefits, but happily
lacking the weaknesses of the old Sys-
tenn"
M. compton's report for the COM
111ittee, made after years hard work
and study. offers 20 recommendation
for specific action, which include
closer cooperation among timber own
ers, better marketing methods, control
of production and destructive utiliza-
ton of the forests. OF all the factors
mentioned, the burden of taxation is
considered the most important to the
future of the lumber industry. Coming
from one of the leading authorities of
the country, the report will be given
great weight.
d. c. Bond Market Lively Today.
The Washington Stock Exchange
recorded another strong market for
bonds today. The first sale was $500
Capital Traction SIS at As, the same
price as prevailed yesterday.
Washington Gas Is, series A. opened
with $1,000 selling at SO and closed
with another 81 900 transfer at 9S7s.
Washington Gas IS, series B, appeared
In $500 sale at par.
Washington Railway & Electric Is
opened with ST 900 selling at 80, fol-
lowed by $1,000 and $1,000 changing
hands at 6ll2. The days largest vol
ume OF trading was in Potomac Elec-
trio Power consolidated SIS, five 81 900
sales being recorded at 1922.
Holders Of Peoples Drug Store 6i2
per cent preferred stock will be deeply
interested in the half years report out
today. This stock is listed on the local
exchange and is now quoted at rs. The
dividend was considerably more than
covered.
Heard in Financial District
John Poole, president of the Federal
American National Bank g. Trust Co,
today announced the winners in the
recent aircraft model contest held in
&, the lobby. as follows: First prizs, James
! Barry, 703 A street northeast; second
prize, Edward Reeves, 1884 Massachu-
sets avenue southeast; third prize, C.
Harris Taylor, 121 Marion avenue, Clar-
endon, Va: honorable mention, Alfred
Moe, 209 Ascot place northeast. The
prizes were SIS savings accounts and
honorable mention a So savings ac-
count Ten other contestants were
awarded 81 savings accounts.
John M. Riordon. vice president OF
the Bank of Commerce g. Savings, has
received notice of the death in Paris
several weeks ago of Ford B. Stevens, a
former resident of Washington. At one
time he was assistant cashier Of the
United Savings Bank and was later con-
nected with the Second National While
here he was one of the leaders in Wash
ington Chapter, American Institute of
Banking. He will be recalled by wide
circle Of friends
I, I. Chorpening chief national bank
examiner for the Fifth Federal Reserve
district, has Joined the Summer colony
at the Washington Country Club. His
early morning golf scores are surpris-
ing some Of his friends in banking cir
Giles.
D. P. Aub. manager of the local Office
of the American Express Co, reports
that an arrangement has just been con-
cluded with a company in Russia for
facilitating remittances to that coun-
try, from people residing in the United
States and Canada, who desire to have
friends or relatives supplied with food
or otser products instead of money.