Indianapolis Times, Indianapolis, Marion County, 16 February 1940 — Page 20

PAGE 20

MORGAN CHANGE HELD TAX MOVE IN WALL STREET

Reduction of Payments to 'U. S. Government Viewed As Firm’s Motive.

~ NEW YORK, Feb. 16 (U. P.)— Wall Street believed today that the J. P. Morgan & Co. partners would ~ be able to reduce their income taxes by disbanding their private banking partnership and incorporating as a public institution, as they plan to do April 1. . The tax factor, and the fact that they will be able to do business as trustees under New York incorporation, were believed today to have inspired the decision that the great House of Morgan, a synonym for high finance for 80 years and with assets last Dec. 30 of $671,578,699, would no longer be an assembly of private stockholders. In incorporating, the firm must give up its brokerage business and its members will retire from the Stock Exchange. It will, however, be eligible to serve as trustee, a more profitable phase of banking than investments.

No Taxes Paid

" In 1933, the Senate Banking and Currency Committee, in an. investigation directed by Ferdinand Pecora as counsel, learned that not one of the 20 Morgan partners had paid a cent of Federal, income taxes for the previous two years. The investigation led to New Deal laws regulating banking, currency and stock exchange methods. _ The income tax question figured in the new incorporation plan as follows: In years of prosperity,

"taxes on partnership income reach |

the higher brackets, but under the corporate form, profits may be retained to build up reserves and surplus and the shareholders’ tax rates are correspondingly lowered. It is the firm’s plan to make the partners shareholders in the new " corporation; their number of shares to depend on their investments ‘in the old partnership. Mr, Morgan will remain president.

Partners, Holdings Listed

These are the Morgan partners and their ca; tal participation, as made public Dec. 30 before a hearing of the National Economic Committee in Washington: The estate of the late Charles Steele, 36.6 per cent; Thomas W. Lamont, 34.2 per cent; J. P. Morgan, 9.1 per cent; R. C. Leffingwell, 6.1 per cent; F.

D. Bartow, 2.9 per cent; J. S. Mor- |i

gan, 2.2 per cent; A. M. Anderson, 19 per cent; George Whitney, 1.9 per cent; H. P. Davison, 19 per cent; C. D. Dickey, .9 per cent; T. S Lamont, .6 per cent. ~The new set-up, announced yesterday evening at a press conference attended by Mr. Morgan himself, will be the second in the House of Morgan since the depression. It had to divest itself of corporate securities underwriting business under the Banking Act of 1933, and about the same time Morgan, Stan-

tin, son of Mr. and Mrs. William H. Bottin, 1444 Pleasant St., was elected to membership in Roines, Manual High School boys’ honorary organization, at the club’s meeting this week.

Honored at Manual—William Bot-

Heads Tech Club—John Gripe has been elected second semester president of the Sportsman Club at Tech High School. Other officers are Bill Binder, vice president; Elizabeth Davis, secretary-treasurer, and Marilynn Jo Mackey and James Brake,

Officials of the Teamsters and Chauffeurs Union, Local 135, discussed with a safe expert yesterday plans for placing a tear gas burglar trap on the safe in their offices at 28 W. North St. This morning, when the custodian, John Wilder, opened the offices, he found burglars had knocked the

stolen $53 in cash and about $350 in canceled checks. The checks were found in two metal boxes in Spades Park about the same time the safe robbery was discovered.

Kellam to Address Club—Fred Kellam, State Highway Commission Engineer, will address the Scientech Club of Indianapolis at its meeting Monday noon at the Board of Trade Building. His topic is “Design of Highways for Safety.”

Judge Wilson to Speak—Judge Herbert E. Wilson of Superior Court will speak at the luncheon meeting of Sigma Delta Kappa, legal fraternity, at the Canary Cottage Monday. He will discuss “The Restatements of the Law.”

combination off the safe and.

sergeants-at-arms.

Miss Merrifield to Talk — Miss Ruth Merrifield, who attended the recent student Peace Conference at

Geneva, Switzerland, will address the Y. M. C. A. Bible Breakfast at 8 a. m. Sunday at the Central Y. M. C. A. Building. She will discuss “Europe in the Fall of 1939.”

'Y Group Plans Dinner—The Indianapolis chapter of Y Men, affiliated with the local Y¥Y. M. C. A, will entertain wives and friends of the membership tomorrow at a dinner at Cifaldi’s Villa. Nova. Committee chairmen are Russell Abdon, reservations and music; R. H. Behrman, decorations; Earl Schmidt, awards, and Dr. Francis Smith, entertainment, A

H. E. Armstead’s Condition “Good”—The condition of H. E. Armstead, 70 8S. Colorado St, wounded Sunday night when a rifle cartridge exploded at his home, was reported as good today at Methodist Hospital. Mr. Armstead is an aerial photographer and ballistic expert. The accident happened as he was experimenting with the cartridge.

Brush Up on

By JOE COLLIER This is about the time of year that the average Indianapolis home owner goes seed silly. This is the time of year, also, that the average seed store goes catalog crazy. The two are ‘companion disorders—the one aggravates the other and vice versa. It is a triumph for modern printing that so many amateur gardeners will spend so ‘many of the spring days trying to grow flowers that will approximate in beauty the fourcolor illustrations of them. Lucky is the lawn mower slave who can grow a sheen that compares to the country club smoothie that illustrates the box the grass seed comes

in. But it is always worth while to try, and the Indianapolis seed men say that if the gardening is in direct proportion this year to the catalog circulation, Indianapolis will be a wonder to behold this summer. Seed men say that the first warm, or fairly warm, day brings the catalog readers out in sizable crowds, each with a far-away look in his eye and each intent on getting his spring reading matter. The hill for catalogs is considerable, the seed men say.

ley & Co. was formed by three Mor‘gan partners, to handle that type. of business.

The catalog readers go home|

and curl up with the catalog in front of the fire and dream of

NOW 0

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(Grille or Dinner)

8 Tablespoons ... 1067 8.00 8 Forks 1047 8.00

(Grille or Dinner) 8 Soup Spoons... 1067 8.00 8 Salad Forks ... 1047 8.00 8 Butter Spreaders 10.67 8.00 8 Oyster Forks ... 106? 8.00

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[EWELERS DIE

Armchair Horticulturists

Spring Reading

spring and summer. Then, on the next warm day, out they come like groundhogs and buy some seeds. It may be the lawn, or it may ‘be a new little patch they intend | to have spaded for a few flowers

It may be they are planning a rock garden, or a sunken garden, or a hedge, or what not. It may be only a window box. They are, the seed men say with finality, planning something. _ This sort of spring horticultural distemper is on the increase iri Indianapolis, too, the seed men say. Every year there are more and more garden clubs and every year

is better and better groomed. Some of the seed men say that, without actually scientific knowledge, they will bet that Indianapolis has more home-owner gardeners than any city of its size.

Vitamin B1 ‘Announced

This year, something new awaits the gardener—something that wil, gladden his heart. It is Vitamin B1, they say, which will make al rose redder, a marigold bigger, grass greener, and shrubs shrubbier. It can be applied by'anyone, and the results are immediate. It is, they say, what the plant has been looking for for years, and it is very apt to make a sensational gardener out of even a dub. Some few plants supply themselves with it in limited amounts: but there is scarcely a shrub, flower or tree that can’t use a portion of it. It was developed by a California scientist, and the seed men confidentially predict that it will be used generally this year here. This is the first year it has been on the market. “It's the > biggest thing in the gardening line in 30 years,” one man said. “Many a lawn that has been stubborn for years will look carpetlike this year all because of it.” It’s a little early yet to start yard and garden work, because the ground is not yet workable. But the moment it is, you may plant sweet pea seeds seven to eight inches down and be sure you’ll have a good crop, all other things being equal. If you intend to sew new grass seed, rake the mats out of the lawn before you do, otherwise the seed will fall ineffectually as on a carpet. That's about all the gardener can do these days, except read his catalog. But the day soon will be here when he will have to stop being an armchair horticulturist and get down to work. The day is coming when he will have to oil up that lawn mower. In fact, it might be as early as the first of March. P. S. This is Feb. 16. “Thirty days have September, April, June and November; all the rest have 31 save February, alone . A

BROTHERS KILLED BY

P.).—Joseph O. Vincent, 30, and his brother, Jesse, 15, were killed yesterday here when their light truck was hit by a Big Four Railroad passenger train. Witnesses said they stopped for an eastbound train and then drgha directly in front of the passen$

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