Indianapolis Times, Indianapolis, Marion County, 25 June 1936 — Page 21

Tax Bill Rejects

PAGE 19

Hamilton Institute.

pg prices. for goods farm purchasing power during the first four months of this year was 10.1 per cent larger than for the same time a wear ago, according to the Alexander

Qriginal Plan of F. D. R.

bos BY JOHN T. FLYNN con.

ELPHIA, June 25.—Itisa * mistake to say, as has been said, that the tax bill finally agreed on by Congress represents a victory for the President's plan. It is in fact a rejection of the President's plan. © The President's plan consisted fundamentally in abolishing all existing corporation taxes—both income and excess profits. He proposed to substitute instead an entirely different principle of taxation based not on the corc Oo r poration’s profits but on the amount of profits which the corporation failed to distribute to stockholders.. For instance, Flynn a corporation which makes $10,000,000 profit and one which makes $100,000 profit at the present time would pay the same rate of tax—15 per cent (unless exvess profits were involved). The $10,000,000 profit company would pay $1,500,00 and the $100,000 company would pay $1500. Under the President's plan these taxes would have been abolished. What each company would pay would depend not on the profit, but on how much they failed to pay out in dividends. Thus, if the $10, 000,000 company paid out all in «Aividends it would pay no tax. If the $100,000 profit company paid only $50,000 in dividends and kept $50,000 in surplus, then the tax would be $35,000. The President's plan was to force distribution of earnings and then tax them in the hands of the stockholders. EJ ” ” 8 part of this plan, of course, excess profits taxes and capital stock taxes were ditched. In early March in this department, I protested against this plan - and suggested (1) that existing corporation taxes be retained; (2) that the excess profits taxes be retained; (3) that there be a more ‘moderate undistributed profits tax; (4) that thé capital stock tax be retained. and (5) finally that individual taxes be raised all along the line, but that this be left until next year. Later Marriner Eccles of Federal Reserve Board favored substantially the same program and finally the Senate patterned its bill on this plan, save chat 1t raised individual income taxes now instead of waiting for next year. This, also, is the plan which nas triumped in the conference with the House, with one or two changes. The House merely raised

the rate of taxation on undis- '

tributed profits. n ” o HE President was given much credit for the undistributed profits tax on the assumption that this was a new invention, something unique in taxation. This, of course is not so. Such taxes are

well known and have bean pro- |

posed many times. As a matter of fact such a tax is to be found in the war-profits bill as reported favorably by the Senate Munitions Committee and the Military Affairs Committee this session. What was unique in the President's plan —that, indeed, was positively weird—was adoption of the undistributed earnings tax and ‘abandonment of all others for corporations. This principle has been definitely and completely rejected in the bill which is to’ become law. ‘The conference report took out the tax increase on individual incomes. This was the weak spot of the Senate bill, not because the ‘principle was bad, but because it had not been well worked cut. Next session this may be done more in‘telligently. (Copyright. 1936. NEA Service, Inc.)

On Commission Row

(Quotations below subject to change are average wholesale prices bing off:t to buyers by local vommission dealers.) FRUIT—Strawberries, Michigan, 16-qt. crate, $3 Raspberries, black, 24-lb. crate, $2.50: red, J-pt. crate, $4. HE Rb: Florida, 24-qt crate, $4.50; 16-qt,, $3. Cherries, California Bings, 15-1b. box, £3. Limes—Mexican, carton, 20c. Bananas ~-Seven hands pounds, 5c. Apples— Transparents, $2.50@ @2.75. Lemons—Sun‘List (300s), $7.75. Ssntelow s—California RI ripened) ndard, $3.50. atermelions— Peaches — Georgia, Uneedas medium, half bushel, $1.75. Apricots—4 basket crate, $1.75. Jum Re 4 basket crate, $2.

: ns, green, round ‘stringless (hamper), $2.15. Beets—Home jiown, Su os, doz. crate

. Carrots — Califdtita, 45¢c. Cauliflower — Califoria (12s OA 31 (J oe ashed and Cucum-

Pred Bulk Texas, bu., y . ‘Homegrown, 8-Ib. baske! sippl, orig. (6-6) lug, $2.

. Sarr une Markets

Sn A _ a ok 1bs.. will be made. No. 1 32%@34%c; No. 2 30%@3hc;

the .

WORKERS KEPT ON FULL TIME,

Anderson Factories Expect to Maintain Current Operating Rate.

Times Special ANDERSON, Ind, June 25.—A survey of leading local industrial companies today revealed that production schedules, employment and pay rolls here have not experienced the recession customarily expected at this season. On the contrary, the majority of Anderson’s larger factories reported that as a result of a general upward trend in business, full operations may be anticipated {for some weeks at least. F. C. Kroeger, Delco-Remy president, said that his company is using 7000 employes on a full-time basis and expects to continue doing so.

Reports Rapid Progress

The Guide Lamp Co. reported rapid progress is being made on an addition to its buildings. Its hourly schedule has not been reduced and the regular force is employed despite the arrival of the usual slow season.

Co. president, said his firm had felt a favorable reaction to recovery in the building industry and therefore was able to continue giving 300 employes full-time work.

is working on a better schedule than is customary at this time of year, according to E. C. Morrison, superintendent.

Operations to Start

The newgstrip mill of the Greer Steel Co. has been employing 40 men for the installation of machinery. Limited rolling operations are to begin in July, according to Carl Meiser, who was transferred here from Dover, O., to have charge of the shipping department.

Governor plant here is to be completed soon, officials announced. The Ward-Stilson, Nicholson File, and Sefton Ceo. also reported the continuance of regular schedules.

CRUDE OUTPUT DROPS Times Special 2 NEW YORK, June 25. — Daily average gross crude oil production for the week ended June 20 was es-

by the American Petroleum Institute. This compares with a total daily output of 2,971,400 barrels in the previous week.

Local Securities

(By Indianapolis Bond and Share Corp.)

The following quotations do not re resent actual bids or offerings. but mere v indicate the approximate market level based on buying and selling inquiries or recent transactions.

BONDS

A (TH) 4% 61. 0 W_5%s '55

‘Home T & Hook Drugs In *Ind & ih Elec Co ‘pid’ Ts. *Ind Gen Serv 20d re Kiso & %

han 1 *Indp

ndp.

Pub Serv Co of Ind bs d Ts . Prog Laundry Co c Sve Pub Serv Co of tnd "otd 68... Pub Serv Co of Ind pfd 7s .. South Ind Sas & Elec pid 6s T H Elec Co Union Title co’ com *Ex-dividend.

U nlisted § Stocks

(By Blyth & Co.) NEW YORK STOCKS

Bankers Trust Central Hanover

g Manufacturers National City First National Boston . National Shawmut

Aetna PFire Ins American Ins of Newark . Baltimore American

. 8% City of New York . a

SURVEY SHOWS

C. G. Steinbicker, National Tile | Mid Cont P

The American Steel & Wire mill | 8

The plant expansion at the Pierce |

timated today at 2,963,400 barrels |;

% | Equipments—

STEEL—Steel ngob production averaged 155600 tons daily during May, as compared with 151,600 tons daily . in April and 97,600 tons in May. 1935. The increase was contraseasonal and the adjusted index rose to 85.4. per cent of normal from 31.4 per cent in April. On the other hand, steel demand tapered off, the adjusted index falling to 74.8 per cent of normal from 76.7 per cent in the preceding month. Production has been running in excess of demand for the last two months, indicating an increase in inventories. A decline in production of slightly greater than seasonal proportions now seems necessary to correct the condition.

New York Stock Exchange Prices

Retail Stores— Allied Stores .... Assd Dry Goods. First Natl Stores Gimbel Bros .... Jewel Tea Kresge 8 8 . Kroger Groc .. Macy R H

Aviation— Aviation Corp 5 Boeing Aircft .. 223% Curtiss Wright « 5% Curtiss Wright A be Douglas Air .... 643

(By Thomson & McKinnon)

Oils High Low N.Y. Close Noon Prev.

y Corp .... United Airerft n Hn Chemicals—

Air Reduction. HS 8 Allied Chem .... Col Carbon .... 2% Com. Solvents ... 100

KK. Sa Du Pont 549 3

N. Y. Bonds

Liquid C (Reprinted From Late Times Yesterday)

Math Alkali . ‘ . DAILY BOND INDEX

Natl Dis new. Schenle; (1926 Average Equals 100.) 20 20 60

37 . Rails Util. Bonds [nl Laas ; .0 105.4 24 25 y .

ug Yesterday Week A

McCro

Texas Corp Tidewater Assn.. Un Oil of Cal .. 2

a lin

Am Roll Mills .. Beth Steel Bye s A

U 8S Indus Alco = Drugs—

Lehn & Fink . Sieriing Prod . Un Drug (new Vick Chem Zonite Prod ese

a asia

Mic Stee Natl § Otis §

A corp. Am Int Corp ... Chesa Corp Lehman Corp . Transamerica .. Tr Contl Corp .. Building— Am Radiator .. Gen Asphalt . Int Ce Johns Manville 100 Libby Owens Gls 577% Ya gus Elev 26 26

1936 Low 90.0 84.7 1035 (Copyright, 1936, by Standard oatistion.:

U. 8. GOVERNMENT BONDS (By Abbott. Proctor & Paine) Treasurys

ee - U 8 Steel pid’ x arren Bros .. Warren Pr, Youngstn S

Motors— Auburn

8 Prev. 2 20% close. a 117.24 1097 67% us

Col Pal Peet ... Congoleum Kelvinator Mohawk Carpet. Pros & ig Servel Inc Simmons Bed . Textiles— er Woolen ... lding Hem ... lanese Corp .. lins Aikman. .

0 Studebaker Yellow Truck . Motor Access— 101.25 9a 14%,

Jorg Warner .. iu 47%

riggs ud Mig add Wheel . Eaton Mfg .... 33 33 33 33 3 Elec Auto e . 3s Greyhound “B”. 5 51 Houdalille

101.11 102.18 Federal Farm Mortgage Corp.

4s 1964 1942-47

104.9 103.19

Chicago Stocks

(By Atkins, Hamill & Gates)

DOMESTIC Prev.

Roll . Timken Det Axle

Mining— Alaska Jun Metal

61 1 ns Alleg Corp 5s dd ] Alls Corp Pal. n Pow

13% 30%

8 Mills 4%8 45 va Balt & Ohio 6 > 96 Balt & Ohio 4 '60 ree Buff Roch & Blt, 43,5 "87. Beth Steel 4Y%s '60 Chi Milw & St P 5s oy

Kennzcott Cop. . iclntyre Mine. ‘ Park Utah Phelns Utah 3t Joe Lead 0 S Smelters. . Vanadium

Amusements— . N ew Yor k Curb Croslev Radio. 27 > 150 2 Fox Theat . 93%2 (By Atkins, Hamill & Gates)

Radio corp. cave:

Paramount Aluminm Co. of America . RK “B”

Am, Warner Bros ... Tobaccos— Am Snuff Am Tob °* am Tob ‘B 14 : Phillip Morris . i 88 Reynolds Tob B Rails— Atchison B & O Can Pacific .... Ch & Ohio ....

Chi & Gt W . . 1% Chi & Gt W pid 17% Chi N W 2

Fisk Ru dh Ford Motors id “A” . of Penn

1 WW 3 Hod & Manhat er 5s '57 | Refining Co...

% | Ill Cent 4%s '6 11 Cent 5s °’ erlake C & I 5s '51 1 erntl Hy El ec 6s ‘44 erntl Ti & Tel es 23 . rntl Tel & Tel 5 sn terntl Tel & Ie er %sa .

Ss 2 51 .

tl 65 v Nickel rate ® vhs Mg. Nickel Plate 5's 74 N Y .Cent 5s

en! 2013 N Y Cent az Jol3 (old) . Nor Amer Co Nor Pac 3s oat Nor Pac 4Y%s 204 Nor Pac 6s

e Brass Co. rial Oil of Canada . Aston "Sots, of A 0. Shum rp. Of er. «. %a | Int. Vitam » !

Niagara Hudson Pwr. Pennroad Corp Re! le

St. Regis P Salt Creek Regal | Jock

Sono Sonotons Oil of Ohio .... Fecnnicolor, Inc.

ayne Pump

Money and Exchange

INDIANAPOLIS STATEMENT Sleatings 8 | Debits

Penn Ry as '84 Penn Ry 4Y%s *81

Am Brake Shoe . Am Car & Fdry 36% Lo core 20 TREASURY STATEMENT (By United Press)

‘WASHINGTON, “June 25.—Government expenses and receipts for the current fiscal year to June 23, as compared with a year

: This Year Last Year

Rem Rand 4%s '5 Bou 2 Union Oil 3'as ’51 u

Gen Am Tk Car Gen ac

ec ae Gen R R Sig . i Westingh 8 . 119%

Utilities— _ Receipts. Deficit . .. Cash bal , ” 182,447,344 Pub. debt’ 1136443043 "Gold res.. Tussin sis 9.1 Customs

‘Va 123

bt LIE]

LHS NR

635,033.29 338, 137,107.08

CHICAGO GRAIN FUTURES (By James E. Bennett & Co.)

High 96 om 98%

9AM.

Jot Ie

oy ny & , 4s 61 .. Youngstown S & T 3s oi .

87% 66% 61%

8 =

ue 35

us oo. »

: JEusenis 3

2 F

smi SHEE

; smi

Sed. e > WR, z #

J |a steady trading range.

Prev.

2008 :376,485.78 969,004.39 basis:

SWINE VALUES

AGAIN ADVANCE 1070 15 CENTS

Top Price 1s $10. $10.75, Highest Since April 27; Lights Remain Steady.

A sions undertone continued to prevail in hog trading today at the Indianapolis Union Stockyards where the majority of classes, mainly the medium and hea ts, were generally 10 to 15 cents higher than yesterday's strong average. Light slaughter - pigs, however, showed little change. The moderate upturn, influenced somewhat by continued lighter shipments, carried the top price paid for good and choice grades up to $10.75, the highest level reached since April 27 when the top held at $11.

Receipts Estimated at 4500

Total hog receipts were estimated at 4500, as in the preceding session. This was a sharp decrease compared with last week’s liberal shipments. Approximately 210 hogs were held over, Bulk of good and choice classes, scaling from 160 to 225 pounds,

| cashed .in at $10.65 to $10.75, while

medium kinds, from 225 to 260, were

i» | salable at $10.50 to $10.65. Extreme

heavies—upward from 300 pounds— sold at $9.80 to $10.25. Light slaughter pigs, weighing 100 to 130 pounds, brought $9.50 to $10. Packing sows held at $8.25 to $9.25. Initial trading in the cattle market was about steady on all classes, except beef cows. Early steer arrivals mostly in small lots sold downward from $8, while bulk of heifers brought $6.50 to $7.55. Few choice held at $8.15. Beef cows were uneven, selling at $4.50 to $5.50. Receipts numbered 700.

Lambs Are Lower

With interest still limited in

31, | veals, the market, which has shown

only a slight change in more than two weeks, continued to maintain The bulk of good and choice grades cashed in at $8.50 to $9. Receipts were 600

After advancing in the preceding session, the lamb market turned weak to largely 25 cents lower in dull trading today. Bulk of spring grades was salable at $10.50 to $11. The top held at $11.50. Sheep were unchanged, with a few fat native ewes salable at $3.50 down. Receipts were 800.

HOGS ‘Top. $10.55 10.55 10.55 10.55 10.65 10.75

June. « Bulk. Receipts. 19. [email protected] 5500 20. [email protected] 22, [email protected] 23. [email protected] 24, [email protected] 25. [email protected] Light lights 1140-140) Good

1000 6500 7000 4500 4500

choice. . $10. Er 0

0.60 : 10; Sal. as

jum (200-220) (330-250) Good

choice. .

choice. . 10; Sales 85

i, | Heavyweights

(250-290) Good choice.. [email protected] (290-350) Good

choice.. [email protected] Packing sows

(275-350) Good 8.75@ 9.40 (350-423) Go 8.90 (425-450) Good 8.70 (275-350) Medium . : |S pigs 100 149) ood and choice. . 9.50 Med 8.90

10.50 10.05 CATTLE —Receipts, 700—

(550-900) Choice 5 Good 8

Common and medium (750-900) Good ang hole "Common and med

Bulls he Cutter com. and med. bulk.. _ VEALERS —Receipts, 600— Good and choice Medium Cull and common

an2gh 828% Szzhasizhauek

ARADR SACI

883 e989

(250-500) Good and choice. . Common and medium ‘ceder and Stocker Cattle (500-800) Good and choice.... 17. Common and medium (800-1050) Good and choice. ... Common and medium

22 a3a3 82 8hsk hg 3233

oven

SHEEP AND LAMBS —Receipts, 800— on jambs, choice

(90-170) Good and choice. .. Common and medium

(Sheep. and lamb quotations on clipped

ective June 1, lambs born the spring of 1935 LTR Leh Hy

Other Livestock

"(By United Press)

i LA ya (Hogs—Beceipts. a. $101001040 hes fo Be 1 i $9.50. aie all classes strong; ey kinds

Gime widening between com-

).40;

Busigraphs

COMMERCIAL FAILURES

n hy

“-- 4

THOUSAND FAILURES

THE PARKER CORP. GENERAL INCORPORATED INVESTORS

The death rate of business is low —the lowest of any time since 1920. Commercial failures in May were fewer in number than a year ago, while in the first five months of this year failures dropped 4% per cent from those in the corresponding months of 1935. Liabilities, however, compared with last year were just slightly higher, although the average liability per failure continues very low. The concerns now in business have proved their strength by withstanding the severities of depression.

ALLIED STORES NET INCREASES

Earnings for First Three Months Equal to 12 Cents a Share.

Times Special NEW YORK, June 25.—The Allied Stores’ Corp., formerly Hahn Department Stores, Inc., today reported net earning for the first three

months this year equal to 12 cents a share, compared with 11 cents in the like period a year ago. Total sales of the company during the period were estimated at about 11 per cent higher than a year ago. An exceptionally good Easter business was largely responsible for the moderate gain in earnings, a Fitch Investors Service report said. Operate 22 Cincinnati Stores Although sales increased only 8.4 per cent during the past year, due to improved operating technique and increased efficiency, net income of the company for the fiscal year ended Jan. 31, 1936, rose to $1,582, 000 from $1,127,000 in the previous 12 months, according to the survey. Wholly owned subsidiaries of the corporation include Smith-Kasson, Inc., which operates 22 units in Cincinnati; Pomeroy’s, Inc. and A. E. Troutman Co., both operating 10 stores in Pennsylvania. The most important unit is Jordon Marsh of Boston, the largest department store in New England. Capitalization of the laiter unit is represented by a funded debt of $13,689,140.. Stock of this unit out-

33 standing is 209,332 shares of 5 per cent cumulative preferred of $100

par value and 1,778,153 shares of common of no par value. Current assets as of Jan. 31, 1936, were reported at $29,136,000.

FTC GHARGES TIN MONOPOLY EXISTS

Cease and Desist Order Is ‘Given 15 Steel Makers.

By United Press WASHINGTON, June 25.— Existence of a monopoly in the tin plate industry was charged today in a Federal Trade Commission cease and desist order against 15 large steel companies. The commission ordered that the producers stop “entering into agreements not to sell or quote prices on ‘stock plate’ to jobbers and manufacturers of tin can and othe: containers.” The eommission charged that the agreement “tends to create a monopoly in the manufacture of tin containers in the American Can Co. and the Con#inental Can Co. of depriving their competitors, small manufacturers of tin containers, of their normal source of supply of tin plate.” Mentioned in the order were the American Sheet and Tin Plate Co, Bethlehem Steel Co., Canton Tin Plate Corp., Columbia Steel Co, trustees for Follansby Brothets Co. Granite City Steel Co., Iftlland Steel Co., Jones & Laughlin Steel Corp, N. & G. Taylor Co., Washington Tin Plate Co., Weirton Steel Co., Wheel-

GARY’S TWO BANKS TO REDUCE INTEREST

GARY, Ind., June 25. Savings account interest rates of Gary's two reduced

GERMANY SEEN READY TO PAY DEBTS IN BONDS

New Issue Is Expected to Corner Interest Defaults of Last Two Years.

BY VINCENT LYONS Times Special Writer NEW YORK, June 25.—Early registration with the Securities and Exchange Commission of a new issue of German funding bonds to be given holders of dollar obligations in exchange for two years’ back interest loomed today after Stewart C. Pratt, chairman of the fiscal agents committee for German dollar loans outstanding in this country, embarked for Berlin.

Interested deeply in this latest episode are American owners of between $650,000,000 and $750,000,000 of miscellaneous Reich, state, mu= nicipal and corporate issues, service on which has been ignored since July 1, 1934. Including bonds that have been repatriated it is estimated that the total amount of dollar loans outstanding is approximately $1,000,000,000

Millions Due in Interest

In order to meet the interest due, between $41,250,000 and $48,750,000 would be necessary on the basis of the $650,000,000 or $750,000,000 of bonds believed lodged here. On the basis of $1,000,000,000 outstanding, which ignores repatriations, $65,000,« 000 of interest would be necessary.

Germany, however, seeks to meet this debt with the proposed issue of 10-year funding bonds which wouid bear 3 per cent interest annually. Moreover, this new issue would have a sinking fund which would absorb 3 per cent of the outstanding amount annually. ‘Filing of the necessary data with the SEC does not constitute any problem. It is believed that the sailing of Mr. Pratt to confer on the entire debts question will speed arrangements and allow the German government to register its funding bonds early next month. The proposed issuance of funding bonds in exchange for back interest represents the sixth step in the recent history of German dollar bond indeb.2dness. The opening wadge was the complete suspension of service on all obligations in June, 1933. Adopt New Policy

Shortly after the German govern= ment recanted and decided oo a new policy applying to interest due for the second half of 1933. Under this scheme 50 per cent was to be paid in cash and 50 per cent in scrip. This scrip the government agreed to purchase at 52 pe: cent of par. giving the bondhoider a total payment of 76 per cent of tie amount due. ; For the first half of 1934 this method was revised to a new basis of 30 per cent in cash ard 70 per cent in scrip; the latter to pe repurchased at 67 per cent of par. This gave the bondholder 76.9 per cent of the amount due him. The fourth step was the cancel= lation of the promise to retire or buy scrip tendered to owners of bonds! and this culminated in the fifth step of a moratorium for ih second - half’ of 1934. That ended the series of adjustments. For the two years ending July 1 bondholders have received nothing on their obligations. The proposed funding boads, which will be issued by the Canversion Office for German Foreign Debts, in no way affect the s.atus of the Dawes and Young loans. Both those issues are now receiving part interest.

LEADING INSURANCE SALESMEN TO MEET,

John Hancock Agents to Gather at Lake Maxinkuckee.

Leading Indiana salesmen of the John Hancock Mutual Life Insure ance Co. are to meet at Lake Maxinkuckee June 25 for a three-day convention, Dan W. Flickinger, Indianapolis general agent, announced today. Those qualified to attend the meeting include Walter Lichtenstein, Indianapolis; Clarence K. James, Peru; M. E. White, Kokomo; Ed R. Grisell, Indianapolis; John C. Irwin, South Bend; Sid Ma~ halowitz, Indianapolis; George Goethals, Mishawaka; Fred H. Beach, Vincennes; Jakes Bertsche, Fort Wayne, and Earl Hillsman of Mun-

Business sessions at the convens