davidaulloa/AmericanStories huggingface dataset:
Detroit evening times. (Detroit, Mich) 1921-1958, 1941-10-05
Divert Earnings

II a legal prohibition should
be placed in accordance with the
Morgenthau formula on profit
exceeding 6 per cent, then there
would he strong impulse 10
favor workers with higher re-
turns or customers with lower
selling prices. Likewise. various
other expenditures. such as pro-
mntinnal effort might fbe IN
creased
In such circumstances. the re-
sultant net income. on which the
corporate tax liability would he
measured. would be correspond
ingly reduced. The effect of this
would be. TO compel government
10 rely increasingly for revenues
on income taxes levied against
individuals and less on those
placed on corporations.
If toward the close Of the
year. Corporate management
found that the volume of sales
at the announced selling prices
seemed destined TO produce pro-
fit in excess amounts il might
decide 10 share the benefits with
customers in rebates. Some
years back an automobile manu-
facturer. deciding 10 limit his
profit per car, actually made
such refunds 10 customers.
Detroit evening times. (Detroit, Mich) 1921-1958, 1941-10-05
Banks
Brokers
Business
BY WARD sCHuLTz
Financial Editor

With al the criticism and carp
ing over the progress Of the
defense program. few realize how
much actually has been done.
One Of the best indications oi
The nickup is total payments
against contracts In lis regular
monthly letter. the National City
Bunk points out that m tho FIRST
= 3 morths Of The program. $685. e
ln.e00 was paid out In Inc next
,r. months. Sl,676000 900 moro
- paid
Prize elFftF this -is-ft-ef progress i
still Car below the rate neceS,
ary 10 surpaSS German anna
ment production
OF course. some VIII say that
the record was chalked up IN GER
ain industries that HE eFeraff
progress has suffered and that
conre phases are tagging
Just about the best answer 20
'his * Knudsen's favorite the
Department Of Lahors index Of
he defense effort translated in
man hours Of work II follows
with May, 1870 eoualing 100
Detroit evening times. (Detroit, Mich) 1921-1958, 1941-10-05
Changed Policy

OF course, the details Of the
Morgenthau plan remain 10 be
worked out. but thus far the
treasury has not distinguished
between corporate earnings sub
ject TO distribution as dividends
and undistributed earnings re-
tanned for corporate purposes. In
fact, before the emergency the
treasury tended to frown on
what IS regarded as undue reten-
tion of earnings in corporate
treasures.
These governmental mandates
in the tax field as well as social
legislation. affecting minimum
wages and hours. however. at
tractive the stated detectives
may appear TO be, nevertheless
reduce the AREA OF discretion
over corporate affairs by the re-
Sponsible management.
Detroit evening times. (Detroit, Mich) 1921-1958, 1941-10-05

If an enterprise were forbidden
by law TO keep or distribute in
excess of 6 per cent ON invested
capital, then management might
elect 10 change the end-reSult
of the years operations. as
easured in profit terms.
through altering either receipts
or expenditures.
IrrespectlYe of -taA-iaet@---,-
directing management is always
weighing the problem Of how to
share the rewards OF increased
volume or heightened efficiency
among the various factors in
/terested IN a venture. Manage
ment, of course, has no direction
over taxes. which represent COY
ernment'S lien on the receipts
OF a business. But presumably
management has some leeway in
dividing the gair among en-
ployes in wages and salaries,
among stockholders in increased
dividends or enlarged corporate
savings. and among customers IN
reduced selling nllcae
Detroit evening times. (Detroit, Mich) 1921-1958, 1941-10-05
Show Models
Food Chains viii Exhibit
Supermarkets at Meet

NEW YORK. oct. A. ~ Scale
models of 13 super-markets and
self-Scrvice stores operated by
leading food chains viii be eX-
hibited at the annual meeting of
the Natonal Association of Food
Chains TO be held atAthe Drake
Hotel Chicago, Octobe% 10 to Is,
according TO Chain Store Age
which IS staging the exhibit in
cooperation with the association.
In addition the exhibit will pre-
sent a scale model Of the Super
market of Tomorrow" as con
ceived by Vincent G. King, staff
architect, Chain Store Age.
One session Of the convention is
TO be devoted 10 a discussion OF
super-markct and Self-Service store
layout and design with the exhibit
used as clinical material.
Detroit evening times. (Detroit, Mich) 1921-1958, 1941-10-05
Compared to Germany

The Morgenthau formula has
been compared to corporate
taxes in Germany. However,
there are important differences.
The announced Teutonl fiscal
plan distinguished between poor
corporate earners and good
earners. II placed a ceiling of s
per cent on the companies which
over period of years had aver
aged less than this, and limit
Of s PEI cent on other com
panies. These distributable earn
ings were allowed before taxes.
Then after taxes were paid ex-
cess earnings we're in effect
earmarked in a trust account,
from which the government
could make forcible interest,"
bearing loans for an eight-year
period. However. il was pro-
vided that such loans were call
able by the corporation in the
event that the funds were
needed for corporate extensions
and physical development.
Detroit evening times. (Detroit, Mich) 1921-1958, 1941-10-05
Equal 85c Share

1t is estimated that General Mo-
tors will show net profits in the
three months ended September 30,
of about Stp, g9e, eee,-ee tai-te
around IS cents a share on the
common. This would compare with
$50 ,579. 568 or Sl.1S common
share in the previous quarter and
SIS, 597 ,030. or 81 cents a share in
the quarter ended Sept. 30, 1910.
The estimated showing would
bring the net profits for the first
nine months of 1941 10 the neigh
horheod of Sl5s.000. 900. equivalent
TO around S3.45 10 $3.50 a common
share, against $129.172. 400, OF
1888 a share in the first nine
months of last year.
General Motors Corporation is
now making provision for normal
federal and excess profits taxes on
the basis OF the enacted 1871 tax
law.
The company, which calculates
its taxes on the average earnings
base. has prepared for tax pay
ments next year by the purchase
of tax anticipation notes.
Detroit evening times. (Detroit, Mich) 1921-1958, 1941-10-05
Wolverine Trade School
Concentrates on Defense

Keeping step with Detroits in
dustry. which in the national
emergency is swinging from autos
10 arsenals. the Wolverine School
of Trades, 1400 West Fort street
has inaugurated new courses in
tended 10 help expedite Detroit's
industrial transition from private
enterprise TO intensive national
defense production
A course which will be Of AL
most immediate help 10 the larger
industries working on defense con-
tracts is one on inspection. which
requires only two 20 four weeks
% instruction. Also, the course is
Detroit evening times. (Detroit, Mich) 1921-1958, 1941-10-05
Vest a est GG eeaasst tHsHfaRee"
Head Tells of Sales Gains

'In the past, when an issue
firm. the bonds were then APP
portiOned among the insurance
companies and even the smaller
firms got some. Under this
setup, the entire bloc was taken
by one big firm. 1 don't think
that's healthy"
Queried as to the potentia
threat of initiation, Kemp said thai
It had been over publicized. He
pointed out tha1-a-rtaiaauras- trffffsr7
ton, such as Germany had. would
be dangerous. but that this wa:
not anticipated.
Don't forget" he said, Elm
surance companies pay of in
the same dollars that are paid
In That's NIL the government
promises in its bonds"
Pacific Mutual Is 100 per
behind defense bonds, too" he
added.
Kemp has personally sponsored
defense bonds for sales contes
prizes in all industries. f. Waite,
Albachten Detroit general agent
that, not only is the-Pa
Ctrfc Mutual local office following
this practice, but a portion o
agents commissions are paid il
defense bonds.
Detroit evening times. (Detroit, Mich) 1921-1958, 1941-10-05
Druggists Expect
Big Yule Sales
FORWARD Buying Heaviest
in Oper 10 7 ears

Heavy forward buying by retail
druggists in this section indicates
one OF The biggest holiday seasons
in more than 10 years according
10 the Farrand-Williams division
of McKesson e. Robbins. lac.
wholesale druggists. who are con-
Quoting an annual display OF
holiday merchandise AZ their ware
house and Offices in this city.
According 10 Mr. H. J. Bolton.
sales manager, advance orders
from retailers show an increase
-ef Approximately Is per cent in
dollar volume over last year AZ
this time. Retailers report that
they expect to increase their sales
10 consumers about 40 per cent
over 1910
White shortages due TO priorl-
.-4-------r-T-TrTTT T0Tense materials,
principally metals. foreShadow a
reduction up 10 Is or 20 per cent
in the total number of items car
ried by tho average drug store,
there VIII be wide variety OF
Holiday merchapdisc as evidenced
by. the fact that ti7r MckrSS0n
wholesale display bore REPRESENTS
about poo different lines Of manu-
facturerS goods tetaling many
hundreds Of items which local
druggists VIII offer 70 the public
this season. according 10 sales
executives Of the wholesale rm.
Bolton said that there was an
unusually heavy demand for -per-
-ff-7T7Tu yTTS. perfume novelties ard
mems gift sets. bat that the gen.
eral trend seemed 70 be IN the
dlrectinn Of uiiliiarlan goods.
Detroit evening times. (Detroit, Mich) 1921-1958, 1941-10-05

indirectinn leads the public TO
resent high prices on goods and
services without being aware Of
the precise extent TO which taxes
are hidden in the selling prices
of goods.
The 6 per cent arbitrary limit.
If adopted, might tend to kill
the goose which lays the golden
egg.
So-called profit, which is
really a payment to investors
for the use of the corporate tools
which they provide. represents
the excess, il any of total re-
-eeiPts- over expenditures 10 meet
all costs except the cost of
capital.
The profit item is the result
tant of managerial decisions
affecting both receipts and ex-
penditureS.
Detroit evening times. (Detroit, Mich) 1921-1958, 1941-10-05
"A. & P. Boosts Peach
Buying in Michigan

NEW YORK Oct Am In
crease of more than 437 per cent
over last year in purchases OF
Michigan peaches for sale in A. &
p. food stores during the harvest
period recently was reported to-
day by the chains buying
affiliate, the Atlantic Commission
Company.
The firms purchases in the
state during single peak pro-
duction week ended September 6,
for example, amounted to 59.211
bushels, compared to 5,41S bushels
during the corresponding week of
1910, il was stated by II. A. Baum,
general manager of the commits
sion company.
Detroit evening times. (Detroit, Mich) 1921-1958, 1941-10-05
Sales $50 Million

In August, General Motors
bought S50,000,000 of these notes,
which combined with S150,000 900,
purchased in the latter part of the
first six months, brought the to-
tai TO S200,000,000 bought so far
this year.
Total deliveries Of General Mo-
tors products in-the- three months
ended September 30, are estimated
to have been at least S450,000, 600,
compared with S27J; 79f ,61o in the
same period year ago.
1t can be estimated that de-
liverieS of defense materials ac-
counted for approximately S120,-
100000 of the total sales figures
for the quarter.
Detroit evening times. (Detroit, Mich) 1921-1958, 1941-10-05
See Near Record
Profit for GIN
In Third Quarter
Heavy Auto Sales,
Plus Defense, Offset
Costs and Taxes

Continued heavy automobile
sales. combined with rapidly in
Icreasing defense deliveries, lifted
the third quarter sales of General
Motors Corporation to the best
levels for any similar period in the
corporations history. The record
breaking September quarter sales
offset increased production costs
and higher taxes.
The corporation is expected to
show earnings for the period APP
proximately two and one-half
times greater than in the similar
three months of 1910. Earnings
will he the largest for the July
August-September period since
1887 and with this exception, the
largest for any third quarter since
1000
Detroit evening times. (Detroit, Mich) 1921-1958, 1941-10-05
Dow-Jones Bonds

Of particular interest TO middle
aged men. many of whom are
unable TO find employment in other
lines of defense work. More than
80 men already have enrolled for
the course, which starts Monday.
Other courses identified with the
defense program and
which are being featured by the
school include tool and die making,
gas and arc welding for airplane
and army tank production, shop
blueprint reading
and layout Enrolment In these
other national defense courses
exceed 500.
Detroit evening times. (Detroit, Mich) 1921-1958, 1941-10-05
Bell Adds 142,4OO
Phones 10 Set Record

NEW YORK, Oct. 4 Bell Sys-
TEN added approximately 142 400
telephones 10 its lines in Septcm-
Der the largest gain for any
month IN lis history. against a
gain OF 110.400 in August and
10000 in September. 1870 The
nine months gain was 4 ,007 90O
greater than any increase re
corded for any full calendar year
Detroit evening times. (Detroit, Mich) 1921-1958, 1941-10-05
York Ice Gets Contract

YORK. Pa, oct 4 The York
Ice Machinery Corporation has oh
tanned from the Manhattan Con.
struction Company of Muskogee
Okla. and the Long Construction
Company Of Tulsa, Okla q CON
tract for the mechanical refrigera-
ton system 10 be used IN air con
dltionlng the mammoth windoWleSS
Douglas bomber assembly plant
now being built al Tulsa.
Detroit evening times. (Detroit, Mich) 1921-1958, 1941-10-05
.GE BOOKINGS
AT New High

NEW YORK Oct a-Orders
received by General Electric Com
pany during the first nine months
this year reached a record total OF
1881 100000. as compared with
1897 $4,000 for the same period
last year, an Increase Of 100 per
cent, Charles T. Wilson president,
announced
During the three months ended
September 30 orders received
amounted 10 S3l0.251 600. a record
volume for quarterly period and
were equivalent 10 an increase OF
GO per cent over the SIS. 1877 900
Of new business hooked IA tthe cor
responding period a year ago.
Detroit evening times. (Detroit, Mich) 1921-1958, 1941-10-05

cific NJ utu a
Life Insurance
{ o m p a n Y oil
California who
stopped over in
Detroit Satur-
day 10 attend 2
s a Q s meeting
al the nlGGa
here.
30 mr. paid
for insurance
in [ he first
eight months
of this year
latslla 81 u - $40 - - -H'- -
Is 1870 p er
cent above a
year ago ana
reports of 81
Detroit evening times. (Detroit, Mich) 1921-1958, 1941-10-05

of the largest companies snow
an average increase of lO5 per
cent" Kemp said.
Referring to recent bidding FOL
securities of American Telephone
and Telegraph. which went 10 6
LARGE -eaStaEn- IA 4 ft.t.-- firm
Kemp said that he. along with
most other insurance men, opposed
the practice.
Detroit evening times. (Detroit, Mich) 1921-1958, 1941-10-05
Trade Loans Hit
Peak in New York

NEW YORK, Oct 4.-Business
loans Of reporting member banks
in New York City during the
seven days ended October /. rose
S32, 100000. 10 a new peak for the
past decade of S2,4S2, 100000
Detroit evening times. (Detroit, Mich) 1921-1958, 1941-10-05
w. A. 7. JOHN

An acceleration in the trend to-
ward the purchase of life inSur-
ance as result Of the general
upturn in business is reported by
A. n. Kemp. president of the Pa
Detroit evening times. (Detroit, Mich) 1921-1958, 1941-10-05
Profit Ceiling Plan
Called Short Sighted
Earnings Strike Seen Possible When
Firms Reach Retainable Limit
BY MERRYLE STANLEY RUKEYsER
~ International New Service Economic Commentator

Misconceptions concerning the Of corporate
profit disclosed proposals. threaten to dry up
corporations
Theoretically the tentative Mogenhau formula for capur.
100 of all excess OF
per capital might greatly the corpora
ton A collecting and distributing agency.
present the corporation useful intermediary
in collecting taxes government This
Detroit evening times. (Detroit, Mich) 1921-1958, 1941-10-05

A longtime Detroiter. Mr..
Davis has been appointed vice
president of Young e. Rubi-
cam Inc, national advertising
agency. He has headed the
company's Detroit Office for
more than year and will
continue In that capacity.
Detroit evening times. (Detroit, Mich) 1921-1958, 1941-10-05
Detroit Poultry

Nta-ket-easy-- Ne quotations available
SATURDAY
EGGS Market firm Current receipts.
2Sc undergrades 24M25c
Detroit evening times. (Detroit, Mich) 1921-1958, 1941-10-05
in Rail
List BOIsterS.
Stock Market
Minor Gains Rule
at Close; West. Union
Reaches New High
International News service Wire

NtW YORK. oct. Activity
in rail shares al rising prices was
A Steadying influence on the gen.
eral stock market list today There
were a few gains of around a
point but most price changes We're
Detroit evening times. (Detroit, Mich) 1921-1958, 1941-10-05
Montreal Silver

MONTREAL. oct Market closed
steady and unchanged with October, 377s
bid No transactions.
Detroit evening times. (Detroit, Mich) 1921-1958, 1941-10-05

What Is needed Is production
great enough that II. along with
fngfand-S VIII exceed fIItlcr-
armament output, plus his ac-
cumulationS. And Donald Nelson
estimates thai II VIII cost-ns
about SIS. 600. 600. 600 annually,
II has been estimated that each
10 billion dollars equals 100000
man years Of work That hardly
leaves much room for business as
usual.
England Is spending close 10 Is
billions a wear. or half her annual
income. and Germany's budget is
estimated AZ "a billions or 90 per
cent Of her income.
The nationwide response TO our
good friend Ben Young's speech
before the American Bankers
Association meeting in Chicago
fast wTcK wsy TT10Sr gTdT1fylng 10
all his friends and supporters
But il Just seems 10 us. that
they 60 out of their way TO pick
the tough ones for the National
Bank of Detroit vice president.
-fuuiif- rpcaff MS 1ateSr was The
Effect of the Defense Program on
Our Social Order" That's just
about as nasty dish as you
could hand out to any man who
has the courage of his convictions
which Ben Young certainly has.
Not so long ago, he served on
a dual program, preceding a we'll
known politician. On that occa-
sion too. he called a spade q spade
md some OF MS criticism was not
exactly music 10 the politician 5
ears and when his turn came he
proceeded 10 do little criticizing
of his own and Young was given
no chance 10 come back
But. as they say in sports,
Young's never better than when
the going's tough.
Food for Thought: Emmett
sheahan. general manager Of the
United States Rubber Company,
was chatting with the press after
the introduction of his firms new
aluminium substitute.
"You know" he said, there's
nothing so certain as change.
Everything keeps changing. As
a matter Of fact. there's just
one thina that ! know Of that
I'm sure will never change and
that's the public's demand FOR
more service.
And the firm that delivers
the service In increasing guam
titles" he added, "is the one
that will be successful"
Note TO MeSsrs. O'Leary
O'Shaughnessy Klein and other
airline publicity men;
A. y. Kemp, former banker and
utility man. became president oi
the Pacific Mutual Life Insurance
Company i've years ago. fffS first
official act was 10 pass an office
rule that no enploye could use
airline transportation. II they
wanted 10 stay with Pacific they
could stay on the ground,
Well. the boys put the pressure
on. and he decided 10 investigate
this new tangled air business.
He spent some time at A pilot
training school. studied aero dy
nanlics. toured aviation plants
studied stresses, started hanging
around sirports and finally took ;
fight himself.
saturday. Kemp Jew into De
Detroit evening times. (Detroit, Mich) 1921-1958, 1941-10-05
New Bond Offerings
Drop 10 S15,749,0OO

NEW YORK. oct. New bond
offerings this week totaled Sl5..
I49DUU, against 81 y -ttffifHi 1fSt
week and So 64SOO0 last year, II
was reported today.
Detroit evening times. (Detroit, Mich) 1921-1958, 1941-10-05

President Charles r. Fisher Of
the National Bark opened the
duck season with a bag Of 4 With
him were J. p Schloiman. En-
DRY and John Ford. Hal Smith
and others. Several got the limit,
he said Lyall Martz. former
internal revenue man turned tax
expert. has SO students in his tax
alton class a. Wayne and 43 arc
attorneys JAW leaders are
preparing for q fight 10 force the
closed shop on the rest Of the auto
industry Former Insurance
Commissioner Charles Gauss oi
Marshall has been named chair
man Of fhe Calhoun County DE-
Tense council 80. THE government
recently iisteh SIX big prime con-
tracts which famed out 10 nearly
10000 subcontractors.
Detroit evening times. (Detroit, Mich) 1921-1958, 1941-10-05
Unlisted Stocks

APPROXIMATE priceS-A furnished A-.-'nr
National Association OF Securities Dealers,
Inc, district No. s.
Detroit evening times. (Detroit, Mich) 1921-1958, 1941-10-05
New York Coffee
SANTOS tONTRA( I
RIO CONTRACT A

september closed lI so hid
Market up 90 s
Sales 2s contracts
Detroit evening times. (Detroit, Mich) 1921-1958, 1941-10-05

RIO CONTRACT A
December si7 bid
March St5 hid
'far SOS
80 sales
Detroit evening times. (Detroit, Mich) 1921-1958, 1941-10-05

Saturday, Kemp flew into De
troit on his return from an Ameri-
can Airlines directors. meeting
he serves on the board and will
continue from here. by air. on a
rine-dav tour of 10 cities
"F1ying Is the only way 10
travel" he told Us. 1--WE got 10
stop over and see Walter Nc
Lucas ~ the National Bank and
compare notes on his flying.
He,s an American director,
too
Evening star., 1941-01-15
District Has Mild
Influenza Epidemic,
Health Chief Says
Hospitals Asked to Bor
Persons With Colds From
Visiting Patients

Expressing belief the District is
experiencing a mild epidemic of
influenza, Health Officer George C.
Rutland today asked all hospitals
in Washington to bar persons who
obviously" have colds from visiting
hospital patients.
DR.. Rutland said he was sending
such requests to all private hospitals
and Government hospitals. and that
he was issuing orders to this effect
to municipality operated hospitals.
Today "a new cases of influenza
were reported to the Health Depart
ment, bring the total for the first
half of January to 207. There have
been no deaths this year.
The health officer said he felt
there is no cause for alarm, particu-
larly if the public co-operates. BY
this he said he meant that when
a person develops heavy cold or
fever he should go to bed and place
himself under medical care.
The requested ban on persons
with colds visiting hospital patients
was suggested, he said, to safeguard
the patients, as well as to prevent
spreading influenza.
DR.. Rutland said all cases of in
f1uenza here so far as he knew
were a mild attack of the disease, but
there is possibility of complications
such as pneumonia. The health
officer said he saw no reason for
any emergency measures and added
that with public cooperation he
believed the influenza gradually
would subside.
Evening star., 1941-01-15
Strong Sea Delays Attempt
To Float Liner Manhattan

BY the Associated Press.
WEST PALM BEACH, Fla, Jan.
15.-Resisting efforts to bulge her
from a sandbar, the 24,289-ton liner
Manhattan remained hard aground
today while most of her 200 passen-
gers lolled in the sun at Palm Beach.
A strong sea running in moderate
southeast wind interfered with
plans for another attempt to float
the Manhattan at high tide last
night.
On hand to assist the ship were the
Coast Guard cutter Mojave, the
wrecking tug Willet and the tug
Solorina. The cutter Modac also was
expected from Wilmington, Del.
Salvage operators planned to
pump $500 gallons of oil from the
Manhattan to tighten the vessel.
"A majority of the cruise passengers
stayed in Palm Beach, at least tenn
porarily, after being removed Mon
day. A few, however, returned to
their homes.
The Solorina took off 253 sacks of
bound mail and sent 1t to
Miami, much of it to be dispatched to
South America.
Capt. G.. v. Richardson of the
Manhattan said yesterday that the
vessel grounded while changing its
course Sunday night. He described
the mishap as lone of those things