Evening star., 1936-03-01
MON INDUSTRY
:. Up 11)p5 SINCE '25
Toll in Many Cases Is More
Than Dividends, Survey
Reveals.
BY JOHN C. HENRY

Out OF maze OF fSoerdl, 0tatc oIiu
local taxation, in which exist many
conflicting and overlapping levies, the
tax assessment exacted from American
industry rose approximately l20 per
cent between 1925 and 1888. Spe-
cifcaIly, the taxes paid by all corpora
tions fling returns with the United
States Bureau Of Internal Revenue
amounted to $1,l70,331 FOG for 1925
and to s2,546, ,863. 900 in 1888. These
figures include all classifications Of
direct taxes.
As an interesting comparison, net
profits of these same corporations
dropped from $8,146.051,57 in 1925
to a deficit of $1,353,141, 900 in 1888.
In further comparison, cash divi-
dend disbursements decreased from
$780, ,474,507 to $3.127, Ass, 900, during
the same span Of years.
The purpose of citing these figures
is to show how a steady increase in
governmental functions and obliga-
tions was accompanied by growing
tax structure, Federal, State and local.
with consequent increase In finan-
cial weight upon industry. The year
1888 is the last for which full sta
tistics of income are available, but the
increase In rates of many existing
levies and the enactment Of new tolls
such as those for unemployment COM
pensation and old-age pensions are
adding steadily to tax requirements.
Industrial Load Revealed.
Although all items of cost to indus
try are not compiled in the bureau
summaries, it is shown that COM
pensation to management in 1888
amounted to 81, 1894, ,961 900, while rents
paid on property totaled 81 ,42l, ,778, 900.
Interest on obligations amounted to
s3,51o,996,o0o and depreciation was
estimated at s3,495, ,842, 900. Wages to
labor were included in cost Of goods
sold." which totaled $43,625, ,7ss, 900.
Heaviest financial operations for
1888 were found in the manufacturing
group, where 1860 corporations re-
ported total taxes of 1882 1923 900 as
compared with net profits of $780,
100000. Dividends to shareholders
amounted to sl,16s, ,5s3 900, while COM
pensation to management totaled
S706,4l2,000. In this classification,
wages to labor were estimated at
slightly more than $1,000, 100000.
While these composite figures for
all industry give an effective picture
through 1888, some individual COM
panies have assembled similar data for
1884 and have applied it on per share
basis. For instance, The Lamp, house
organ of the Standard Oh Co. of
New Jersey, recently carried an analy-
S showing the comparative share of
labor. management, stockholders and
the tax collector in earnings of the
company.
Pay Roll Was S166, 6,000, 900.
Stating that there were 10000 en-
ployeS in the Standard Oil of New
Jersey worldwide group in 1884, The
Lamp continues:
THE aggregate pay roll covering all
employees from the president to coolie
water boy was $166,OOO,OO0. Per share
OF stock this amounted to $6.3s. OF
that amount, management, as rep
resented by those earning annual SAL
aries OF $1,000 or more, received At
cents per share. This was "a per
cent of the pay roll. OF the manage
ment's share, the aggregate salaries
OF the board of directors amounted to
cents per share.
After labor and MANAGEMENT were
paid, the tax man stepped in. With
less than half of its business domestic.
the Jersey group paid in the United
states in 1884 the huge sum of s37,-
5oo,ooO IN property and corporation
income taxes, and $39, ,674, 900 as con-
sumer sales taxes-a total bill resting
on the domestic business of SIT 900. 600
Ihls was an average of $2.97 per share
of stock.
Having provided for these three
groups-labor, management and gov
ernment, to stockholders has his
turn. In 1884, there remained a net
distributable profit of $45,618, $50, or
s1.76 per share. OF this, $1.25 was
paid as dividends and 81 cents trans
ferred to surplus"
Pennsy Paid S24,0O0,000.
The Pennsylvania Railroad has
broken its expenses down to show
that the 1884 tax bill of $4,000, 900
required about cents of each dollar
of the roads revenue. In the same
period, wages and salaries for all
classes of employees amounted to
15l,000,000, or about AZ cents in each
dollar. Dividends were hardly more
than half the tax bill and amounted
to 325 cents per share.
In the utility field. where Gov
ernment operations of an increasingly
competitive nature are not burdened
with comparable tax load, such a
company as Consolidated Gas of New