Evening star., 1937-11-08
BANKERS CHEERED
BY TAX PROTESTS
Investment Dealers Told of
New Steps to Halt Fur
ther Increases.
By EDWARD C. STONE.

BY EDWARD c. STONE.
Washington members of the Invest-
ment Bankers Association, back in the
financial district today from the White
Sulphur Springs convention, expressed
enthusiasm over the facts brought out
during the sessions and the topics
discussed in connection with addresses
and reports.
If one hopes for a change in public
sentiment that will force State and
local governments to practice econo-
mics and thereby reduce tax burdens,
there is one encouraging sign to be
noted, according to Harold E. Wood,
chairman of the State and Local Tax
alton Committee. In many parts of
the country taxpayers are forming or
ganizationS, the avowed purpose of
which is to protest tax burdens which
have so largely come through State
and municipal extravaganza" the re-
port of his committee stated, adding.
Perhaps it is not too much to hope
that some day these protestants can
effectively work in the national field,
as we'll"
Out of total of SO regular or spe-
cial sessions of State Legislatures in
session during 1887, only one failed
to initiate tax legislation. The excep-
ton was the Ohio Legislature, and its
session is not permanently adjourned,
but recessed until December 28 While
q few decreases resulted, in most in
stances increases were established.
The committee noted an increased
tendency toward real estate and home
stead exemptions and less frequent
use of sales taxes, which in the 1880
1885 period we're the most popular and
practical means of raising emergency
funds
Common Stocks Favored.
Use of common stocks for the financ-
ing of industrial corporations increased
sharply during the last II months,
according to the Industrial Securities
Committee which emphasized the
greater popularity of convertible senior
issues in recent months after market
conditions limited the direct use of
common shares While it may not
be practical under present conditions
to sell new common stock issues. it
Is to be hoped that this conservative
policy will be widely adopted when
and if conditions permit" the report
stated.
The volume of new industrial COM
mon stock financing during the II
months between October l, 1886. and
September 80, 1887. amounted to $685.
$4,000 or about 80 per cent of all new
industrial issues. Moreover, bonds and
preferred stocks having equity privi-
legeS accounted for an additional "a
per cent, indicating that, from the
new issue point of view, interest on
the part of investors in junior Sc
curitieS was not confined solely to
companies which were able and will
ing to sell common stock directly under
earnings and market conditions exist
ing during that period.
Dollar volume of all industrial
financing during the u months under
review was at higher rate than in
the preceding nine months, and
amounted to approximately 40 per
cent of total corporate financing,
against 80 per cent in the first three
months of the period industrial
financing increased to over 81 per cent
of the total corporate volume.
Laws Amended in 20 States.
The securities laws were amended
In some particular in 90 States during
1887, which was a year when the
Legislatures of A States were in regu-
lar session. the State Legislation Com
mittee reported Bills dealing with
securities regulation were introduced
in 80 Legislatures, but of total of
81 measures brought up 80 were en-
acted, % failed to pass and l was
vetoed
Many other matters, already re-
ferred to in dispatches, were acted
upon at the convention. Among in
vestment dealers present from here
were Y. E. BROKER, j. Clifford Folger,
Wilfred L. Goodwin, jr., and Paul v.
keyser, for many years general coun-
sci for the association.
Heads Packaging Institute.
William H. Sardo. jr, &c, has just
been elected managing director of the
Standard Packaging Institute, re-
Gently Incorporated under the laws of
the State of Florida for the purpose
of conducting research i'll the pick
ing, packing, shipping and handling
Of citrus fruit, vegetables and other
agricultural products. The Offices will
be located in Orlando.
The new official is a son of William
H. Sardo, funeral director, is gradu-
ate of Georgetown University, member
Of the Washington Board of Trade,
Junior Board of Commerce and for the
last three years has been connected
with the National Wooden Box Asso-
ciation.
Peoples Drug Earnings OFF.
Net sales of Peoples Drug Stores,
Inc, for october totaled $1,904, 1854,
compared with 81, ,931 ,481 in October,
1886, a decrease of S27,717 or IA per
cent, it was announced today. Earn
tngs in the first 10 months of this year
totaled sl8,224,742, in comparison with
$16.944,003, an increase of 81 ,280, ,73e
or rs per cent. Sales in September
showed an increase of "a per cent
over September, 1886.
Herd in Financial District.
w. M. Kiplinger, Washington eco
nomic commentator, will speak on the
radio program tonight which is spon-
sored by banks all over the country
including the Hamilton National Bank
here. He will discuss Whats Ahead
In Washington"
Charles c. Dunwoody, representing
the California State Chamber of Com
merce, is visitor in the Capital
making his headquarters at the Hay
Adams House.
United Business Service says today
that the current decline in busines.
activity has many characteristics O.
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