Evening star., 1938-08-09
Al. B. ARRANCES
ANNUAL CRUISE
At Least 200 Members and
Guests Expected for
Event Next Week.
By DONALD B. HADLEY.

BY DONALD b. HADLEY.
The Washington Chapter, Ameri-
can Institute of Banking, will 60 on
its fourth annual moonlight cruise
down the Potomac week from this
Friday night. August 10.
George NJ Rowzee of Lincoln Ma
tional Bank, chairman Of the Enter
tainment Committee, who also was in
charge of last years successful cruise.
reports that at least 200 members and
their guests will go this year.
The cruise will be taken on the City
of Washington starting promptly at
8 o'clock. An interesting dance pro-
gram has been arranged The cruise
has become the one outstanding
event for the institute during the
summer. The regular fall activities
do not start until September.
Appraisal Contest Watched.
The Junior Chamber Of Commerce
appraisal contest is attracting much
attention in the financial district. A
500 prize is offered for the best ap-
praisal of The House That Jack Built,
which is ASSUMED to have been COM
pleted on a lot in nearby Virginia.
Any person who has visited The House
That Jack Built on Pennsylvania ave-
nue. is eligible.
Three prominent appraisers will set
the standard by which the contestants
will be Judged. TheX are H. G. Hos
kinson of the Riggs National Bank,
president of the District of Columbia
Bankers Association; Morton j. Luchs,
president of the Washington Real Es-
tate Board and Fred D. Allen. District
assessor. The person whose appraisal
Is closest to that of the three experts
will win the contest.
The slO0 prize is offered by the
Junior Chamber of Commerce and the
George H. Rucker Co.. which owns the
lot. The contest will close August TO-
The experts are expected to visit the
lot tomorrow and report their findings
In a sealed envelope.
Tax load Studied.
American industry pays more per
share in taxes than in common divi-
dents, the American Federation of
Investors, Inc, points out in PAM
phlet which has attracted considerable
attention here.
In an analysis of the reports of $50
typical companies, the federation re-
ports that 1887 taxes exceeded by "a
per cent the dividends paid to common
stockholders tabulation OF these
firms with their asset totals, number
of shares, number of holders, number
of employees and taxes for 1887, 1896
and 1882, is included in the pamphlet.
The prosperity of nation depends
upon the purchasing power OF its
people, and excessive taxation seriously
reduces the purchasing power of mil
hons of thrifty citizens, investors and
workers. who pay the bulk OF the
taxes" the federation continues.
"Extravagant Government spending
may stimulate business temporarily
but depressing reaction is certain to
follow, with a constantly mounting
debt to be paid by er-increasing
taxation"
Important facts brought out by the
study follow:
Small Holders in Ma jority.
The $50 corpora tions represent total
assets of nearly s42.OO0,000,000 and
include many of the larger and better
know companies.
The capital of these companies is
furnished not by few wealthy citi-
sens, as many suppose. but by 6,490,000
holders of preferred and common
stock, the majority of whom are small
investors.
The average number of common
shares held by each investor is Ill.
More than three-fourths of the holders
have less than 100 shares in which
they have invested their savings.
The number of employees of these
companies in 1897 totaled 3l7l 900, or
about one-half the number of in
vestors.
Taxes paid in 1897 totaled sl,63l,-
100000, more than twice the amount
paid in 1882
The study also shows that 1887
taxes amounted to an average of $2.62
on each common share, whereas the
total dividends paid to the 5,500,000
holders of common stock averaged
$l95 for each share of common stock.
The 1887 taxes of these companies
averaged 1921 per common shareholder
and S5l4 per employe.
Tax figures for 1886 and 1882 were
not available for all of the $50 COM
panies, but 143 of them paid 81 1,494,-
484,348 in 1887. against S1,258, ,438, COG
in 1886, an increase of nearly 19 per
cent in one year. In 1882. 124 of the
companies paid $681 ,648,285, whereas
the same group paid S1.422 2,670,853 in
1887, an increase of 100 per cent"
Transit Taxes Cited.
Turning to the local field, Capital
Transit Co. annual reports illustrate
the growing problem of taxation.
While gross revenue has climbed stead
lily in recent years. taxes and higher
labor costs have eaten into net. Taxes
paid by this company jumped from
$S28,792 in 1882 to s804667 in 1887.
The 1888 tax bill is estimated at
S948,1l7, according to Y. E. Booker
e. Co. Taxes in other years follow:
$548,287 in 1888, $638,076 in 1884,
s625,228 in 1885 and $67l, 1892 in 1896.
A large part of this company's tax
bill arises from the 4 per cent levy
on gross, which goes to the District
government. Social security taxes
also have played an important part
In the increased burden
Rail Revenues Down.
Operating revenues of the Southern
Railway in July totaled $9.637 SIS,
against $11,022,324 in the same 1887
month. Operating revenues in the
first seven months of this year reached
$64,82o,728, against $78,764.239 in the
same 1887 period. The carrier is
planning to send out inquiries for six
Diesel electric-powered, two-car pas
senger trains, according to Railway
Age
Financial District Notes.
Cha rles MORGAN associate ma ger