Evening Star Newspaper, March 9, 1922, Page 25

FINA NCIAL. FEDERAL INCOME AND * - EXCESS PROFITS TAXES Conducted bj DR. JOSEPH J. KLEIN, C. P. A. (Copyr ght, 1022, by Joseph J. o (2% queitionn shemid be addressed (o DE Kle ica.ions must be signed. Dr. l\lmnl answers will 1o reveal the xdu:m: e United States Produces 81 9 . o aquirers ) now ready to discuss the fourth item referred to in article XXVII—Inventory. The Fevenue nact of 1921 provides in section 205 “that wheuaever in the opinion of the enm- ‘missioner thy use of inventorics 13 necessary In order clearly to deter- mine the income of any faxpaver, in- ventories siall be taken hy such tax- paver upon such basis a5 the commis- | sioner, with the approvil of the sec- ¢, mey prescribe as conforming S ay be to the hest ac- practice in the trade or vst clearly redect-| We are as n, counting busine:s and as ing the income. is el best forezoin praciic prime tacter the net in- ceordingl i emplo metheds incrde come of tie ta is urder the 3 An should be pricel at cost or is lower. A continnation of this discussion is; reserved for (0IOLTOW. | Qu iONS AND ANSWERS. i (148)—(a) since Jamuary, 1920. ¢ income (-ompens tion and train- rom the United Stites gov- n in e of $1,000 inarket, whichever It was 1921, ition in this I am aware that ig- liw constitutes no excuse. Of course I shall file & blank and pay the tax this year, but I am dubious as to the proper cou pursue with regard to my liability for the period ensuing from January, 1920, to January, 1921, There is no doubt that beneficiaries under the war risk insurance sc - act creat- Now of the matter. norance Training are 1 tion that arises in my mind is wh t is the proper procedure for delinquent: such as myself. I hardly need assure you that I very anxious to have this question answered soon. A separate payment is made to a de- pendent relative. (b) In your opinion would this de- pendent (mother) justify an exemp- tion claim? A. (a) Write to commissioner of in- ternal revenue, stating all the facts in the form of an afiidavit and ex- pressing a desire to pay the belated income tax. (b) Your postscript is not clear. Q. (149)—Am employed in an insti- tution where I receive, with mainte- nance, $1.000 per year. Maintenance is considered worth about $40 per month. Receive $120 interest on money invested. Have about $700 in bunh ou must file a return and are entitled to an exemption of. $1,000. Q. (150)—La summer while walk ing through the woods near a popu- lar suminer resort my husb nd snd 1 found a roll of money containing eral hundred doliz v unable the owner. are in doubt hether to include it in our income tex report, as it was en- tirely une rned. Wil vou tell me your_opinion. . Yours is a very interesting ques- tion. Your find is not taxable as in- come for 1921, because the general principle of w_applicable in the premises is that the true owner had a claim 2 ainst the finder for the siat- vary period. In_some jurisdictions WESTERN TRADE SENTIMENT. ; —————————————— CHICAGO, March 9.—According to the Cleveland. Federal Reserye Bank, the large majority of ity correspon- dents at the end of the month “report an improvement of business and most of them declare it as thelr opinion that the improvement will continue.” he bank states its own opinion that hout question there is more ac- i in business than there was a month ago, and an outstanding fea- ture of the reports received during February is the frequent reference to Jower stocks of goods carried. It is true that a great many people are Eesslmnsuc. but, it must be remem- | ered that this is the season when finaacial statements. are being ex- hibited. People feel worse when they come to a realization of their actual condition, which has, in fact, existed for some time.” GERMAN LINER DIVIDEND. NEW YORK, March 9.—Directors of the North German Lloyd Line, meet- ing in Bremen, declared a dividend of 10 per cent on the capital stock of 225,000,000 marks as of January 1, 1922, according to cable advices re- celved at the company's offices. FIRST STEPS IN OIL MERGER. MEXIA, Tex., March 9—First steps in the proposed consolidation of the Humphreys Texas Company and the Humphreys Mexia Company into a new $15,000,000 corporation to be known as the Humphreys Oil Com- pany have been taken here, it is an- nounced. The Humphreys Texas Com- pany was dissolved at a special meet- ing of stockholders. The directors of the company were empowered to transfer and dispose of its assets. The company will hereafter be called and | designat as the Humphreys Oil | Company, and the capitalization in- | creased from $10,000,000 to $15,000,000. The new Humphreys Oil Company is mnegotiating to acquire all of the assets of the former Humphreys Mexia Company. M T BIG PEACH CROP LOOMS. BURLINGTON, N. J., March With mild but not too warm weather during the next four weeks, all pres. ent orchard signs indicate ‘that New Jersey farmers will next summer harvest the biggest peach crop on rec- ord. Fifteen peach buds to a foot of twig is said to be the average set in_well kept orchards in this vicinity, which means the crop may be So heavy that growers will have to thin it out to get the best results. The fruit trees have benefited from the failure of the crop last year, fol- | lowing the killing of the buds by spring frosts. All the energy which otherwise would have gone into the fruit has been put into vigorous tree ' growth and an unusually heavy pro- duction of fruit buds. The peach tree especially, growers siy, seem to be making wp for nature’s default of last year —_— RETAILERS ARE BLAMED. NEW - YORK, March 9.— Garment manufacturers ~generally are com- plaining of retailers for curtailed - buying. Merch ndising men are re- ceivinz the major share of the criti- cismy, it being the opinion of manu- facturers that the latter’s a‘titude on apportionment is illogical and tends to keep retail stocks below a reason- | able level for consumers’ needs. An- other criticism of buyers is their tendancy not only to buy less, but to distribute their purchases over a variety of merchandise, which neces- sitates manufacturers maintaining large stocks. SIMPLER SPORT STYLES. NEW YORK, March 9.—In the pres- ent sport clothes craze, of encourage- ment to manufacturers of women's dress lines is the fact that style has been forced into the background while high colors and novelty designs have become the criterion of sales value! Waist - manufacturers have taken advantage of that situation to make all their garments on the same base, but v their appearance by ‘creating original pattern designs by means of ewubroideries and bead trimmings. High contrasting colors in plain shades also have been used for that purpose, { s T T T T L T T UL LU LU . Kleln. "All rights reserved ) fn care of The R'ar To rece've atte: this period is six yvears. Accordingly, what you had found cannot be deem =d to be your cwn until the period has expired and should not be treated as in: t le 1 then 1 dnuhl very much whether, under any cwcumstunces, such a_{ind con- stitutes taxable income. My advice is not to treat it a raling to that effect has been ob «d from the commissioner of internal revenue. Q. (151)—Tn a case where no profits were made during the 1921, but exp were met with cash saved from r before, is it necessary to file an income tuX report, or mus one be filed whether there was any income or not? Not unless the gross Income ed _or exceeded $5,000, wven agh there was no profit. 1 assume that you do business as an individual nd not_1s a corporation. (152)—1 maintain a home for and ward. Although never 1ly adopted, she has been an as- responsibility for twenty-ddd and through physical infirm- is not wholly able to take care ]\er'u f. Am i exempt as head of the house for $2,000 and for care of for $400? If your net (-qunl or exceed $5, cd to exemption of $2,500 plus sw If your net income equals §3.000 or more you are entitled to exemption of §2.000 plus §400. Q (53)—Several y ago a cor- porution sold stock at par, giving ith the stock as a bonus a long- term note or hond with coupons at- tuched. The note specifically states] that it is to be paid at the end of ten vears out of the profits of the cor- poration and in no other way, and has no referencg to a mortgage or trust. No interest hes been paild on the note for some time, but, as it is not covered by a mortgage, nothing can be obtiined on it. The note is trans- ferable only with the stock and at present time the stock is worth- , there being no market for it. he stock was purchased as an in- stment by an individual in another business. Can he claim any deduc- tion from income tax return, as a bad debt in case of the note, or for on this stock it is impossible to ose of? Inasmuch as you state that “the note cost you nothing and was not considered as of value when you sub- scribed for the stock, you suffer no loss if the note fails to produce value for you. rcome does not 00 you are en- must be governed by the facts as you present them. Unless the corporation is insolvent, or unless you can otherwise prove the worthlessness of the stock, you can- not write off your investment as a loss if you do not actually sell the stock. Your statement is probably | not ‘in_accord with the facts, but 1j Q. (154)—Kindly state what profll, exemption a corporation is allowed for United States income tax; also whether New York state allows a corporation any exemption, or wheth- er it is arbitrary for them to pay 4% per cent on profits? A. First $2,000 is exempt from fed- eral normal tax unless the net in- come of the corporation equals or exceeds $25,000 (section 236-b). —NMy brother and myself jo!mly support our widowed mother. Why can we not secure an exernmlon of u 000 for her-support? We have Dbeen told that we can’ A. The exemption for your moth- er's support cannot be divided. One of you only may claim exemption as head of family for $2,500 (or $2,000, as_the case may be), plus $400 for a dependent. The exemption of §2,500 is taken if your net income does not equal $5.000; if it does, the exemp- n_is only $2,000. RENTS Let us manage your Rental Prop- erty. Over a Quar- ter of a Century Experience. B.F.SAUL CO. 1412 Eye St. NW. —of life—SAVE. If you want amay old man Hard ($1.00 will start I MR. INVESTOR: ries about his income. ment a/ thc!rmcxpal in full. Phillip. 100 | 1409 New York Avenue ‘MORTGAGES The Safest Investment on Earth. $250 . $500 Ask for Descriptive Booklet “S” It’s Free. William S. Phillips First Mortgage Investments. THE EVENING |EADSTHE WORLD'S PETROLEUM ouTPUT Per Cent of Estimated . Production. NEW YORK, March 9.—The world's! production of petroleum last year :is; s3timated in.the weekly summary of the American Petroleum Institute A(’ 9,030,000 barrels. This compares with ' 4,854,000 barrels reported by the! ‘nited States geological survey for| 1920. The figires show an increase In United States production in 1921 of 5.9 per cent, and in Mex!co's production of 19.3 per cent. The United States pro- duced 61.9 per cent of the estimated total worid production and Mexico 25.7 per_cent. The estimated dally avernge gross crude oll production in the United States r the week ended March 4 was 1,420, 0 barrels, an increase of 9,600 bam ver the preceeding week. Gains were n in Ok'ahoma and in the Haynes- a pool of North Loulsiana. The Mex{a pool in central Texas a!so showedl . slight increase. The daily average production of the Mid-Continent field was 834,300 barr an increase of 10,- 300 barrels. Prices Unchanged. Crude ofl prices of the major districts during the past week showed no changes. Midcontinent crude is quoted at 2.00 a barrel, Pennsylvania crude at 26 a barrel and Gulf Coast crude at a barrel. Imports of petroleum at.the principal United States ports for the month of February totaled 10,579,000 barrels, a 1 daily average of 877.822, the summary continues. For the week ended March 4 Imports totaled 2.498,000 barrels, a dally average of 356,857, compared with 2,720,500 barrels, a dnllv average of 388,643 for the week ended February 25. Consumption by Rails. Rtpnrls from the principal railroads of the country show that. locomotives BIRD&CO. BROKERS Stocks Bonds Full Service 821 15th Street (Opposite Shoreham) Direct private wire to Ogden D. Budd & Co., New York (established 1885). Write for our letter on a _particularly good stock. Accounts Carried on Margin American Telephone & Telegraph Co. 130th Dividend The regular quarterly dividend of two dol- 1615, |and 11,209,000 barrels Mexican fuel ofl. consumed 38,824,000 barrels of fuel oil In 1921, compored with, 45,847,000 barrels in 1920. The proportion of Mexican fuel ol consumed by locomo:iives in the United States has been ascertained for the first time, the returns showing that of the total consumption In 1921 27,- barrels were domestic fuel oil in 1920 33,986,000 barrels were domestic fudel ofl and 11,861,000 Mexican fuel oil. ————— | EARNINGS JUMP $5,567,028. NEW YORK, March 9.—R. J. Rey- 5 Tobacco's report for 1921 re- cu s net earnings of $16,258,322, an iucrease of $5,567,028 over 1930. This was after providing for fixed charges ,and federal taxes and amounted to' $6.19 a share of common stock, 325 par value, sgginst §3.57 tho year be- ore. R — Asta, the largest continent, contains 17,206000 square miles. STATEMENT OF THE CONDITION UNITED_STATES BRANCH OF THE EM. PLOYERS' LIABILITY ASSURANGE unnr%('u'xon. LTD., OF LONDON, On the 31st day of December, 1921, as re- uired under the Diserict of Columbia ‘ode, amended June 30, 1002, and Au- gust 18, 1011. Statutory deposit $250,000.00 ASSETS. aud 'with tru Cash in offies $7.410.77 457,180, 2,259,351.08 23.417,088.25 Premiums * uncoliected -m in hands of agent Intecest and rents due 'and acerus Total assets LIABILITIE Net unpaid claims for classes er than liabillty asd !l' kmen's eampennxlou. Teserve s req for lllhIlI!y lnd wn compensat Estimate expenses for investl- gating audadjostment of aw men’s 12,810,917.00 37,907.00 8.076,107.59 1,850,000.00 Commssions, b [ 918,472.01 Al n!hgr Libilities—Volunta: additional reserve fnr caia: trophe Total n-’mm. Character of bus 500,000.00 Ing the year 1 Lassos sustained Gating the Toar 1921 . 11,006,837.15 1802 08 r lP”l 23.365.549.00 APPLETON, Vaitea Stares Manager. Bubscribed and sworn to before me this 17th dayof Kebruary, 102 (8eal.) 192 Bxpended flurlng the 7 oty Faie. LAWFORD General -$22,808,469.00 | 5y STAR, WASHINGTON. ‘D. C.. THURSDAY, MCH 9, 1922. HAVANA TOBACCO SLUMPS. NEW YORK, March 9.—Havana To- baceo Cnmpnuy 's annual report shows for 1921 a deficit of $803.152 after chdrges, which com s with a def- icit of $204,290 in the preceding year. Total receipts, representing dividends from stocks owned, amounted o 31.041 and operating expem: $459,193, while $375,000 was chnr;ed ©ff for interest. BUYING METHODS FAVORED. NEW YORK, March 9.—Irrespective | of reasons for retailers’ present small lot buying policy, a few in tlLe trade see 8igns of healthier business condi- tions. They point out that stocks of one kind of merchandise are low com- pared with others, and infer that bet- ter buying will result when the con- sumers’ buying power shall be, In- creased. STATEMENT OF THE CONDITION Ot the HARTFORD BTEAM BOILER INBPEC- TION AND INSURANCE OOMPANY OF the Bist day of December, 1931, as re- quired under the District of Columb Code, amended June 30, 1002, and Au- gust 18, 1911, Capltal stock .... $200,000.00 Capital stock paid up in cash.. 200,000.00 Cash in office . g.s‘!sw Cash In bank . 483.436.50 Real 160,000.00 1,673,850.00 6,420,307.52 760.610.61 120,981.51 Total assets . LIABILITIES. Commissions, brokerage, AL other liabllities. Total Uabilities ...........$5,218,075.22 Character of business transacted durin, the year 1931—Steam boller, engine an iy wheel fptained | during the ncreased. | Losses year 1921 . $801,078.40 r oney T 1w Espended during the year 1921 2,148,170.89 | CHAS. 8. BLAKE, President. L. F. MIDDLEBROOK, Secretary. Subscribed and sworn to before me this 27th day of January, 1922. (Seal.) C. EDGAR BLAKE, Notary Publie. & MKIM Agents. 201-203 Woodward Building Open at 8:30 AM. Every Banking Day . Columbia National Bank Capital, $250,000.00 911 F lars and twent r share will be Saturda: 1922, to stock- of record at the close of business on Foiders “aren 17, R, ccount of the Anpual Meeting of the ! stockholders, the tramsfer books will be closed 4t the close’ of business on Friday, Mareh 17, 1922, and reopened at 1 1022, B B AT NI, Treasarer. OFFICE ROOMS FOR RENT lnternahonal B\nldl FORMERLY INTERSTA 1319-1321 F St. N.W. A Few Very Desirable - Ofligs" Left Reasonable Rents McKeever & Goss Rental Agents 1405 Eye St. Main 4752 CITIES SERVICE SECURITIES Bought, Sold, Quoted THOS. W. BRAHANY & CO. Investment Securities 510-11 Evans Bmldm; ‘Washingt: EQUITABLE Co-Operative Building Association Organised 1879 424 YEAR COMPLETED Assets .$4,385,306.73 Surplus -$1,111,632.96 Think of the Future No one can tell what it may have In store. Be on the safe side—save now. Subscriptions for the 82d Issue of Stock Being Received Shares, $2.50 Per Month 4 Per Cent Interest EQUITABLE BUILDING 915 F St. N.W. JOHN JOY EDSON, Presidemt FRANK REESIDE. The holder of our First Mortgage Notes never wor- OUR MORTGAGES NEVER PASS DIVIDENDS under any condition. The interest check arrives regularly without further attention from the investor, and osir con- servative method of handling them makes certain the pay- First Mort, Not PLUS AN UNIN TER’R:éfl”Z‘ED'IINn %‘J’MPE.W. SApEny Choice First Mortgage Investments $1,000 Main 38 Street sm,uuo Women’s Sphere Is Growing 9 The increasing number of patrons served by Our Ladies’ Dept. furnishes concrete evidence of the fact that women bank identification and factor in community affairs. know the advantages of _ are becoming a bigger 9 Whether you are a “business woman™ or just a businesslike home manager, we'll be pleased to have you utilize the special facllmea of Our Ladies’ Dcyt 3% Compnnnd Intere-t Paid on Sa You can open a Savin s lllll convenient Bnnk Account at ith as little as $1 Washington's Oldest Ncmmd Bcni Connection Serves -—3as a bridge between productive effort and financial safety. fIdentification at this institution will af- ford you access to every helpful banking facility, the counsel of experienced b ness men and the prestige of drawin fiour checks on the OLDEST Nationa! ank in the District of Columbia. Organized in 1814. 3% Paid on Savings Accounts National Metropolitan Bank Capital, Surplus & Undivided Profib Over $1 15th St., Opposite U. S. Treasury—108 “Will My Money Be Safe?” Whatever form of security you are thinking of buying, ‘the question uppermost in your mind 3: “Wwill my money be safe?” But why have any question about it? There is one form of security that you know is safe—our Safe- First M Investments with their record-of no loss to any investor in 49 years. You can buy them in .denomina- tions of $100, 500 and §1,000, ‘we assure outright or under our Investment Savings Plan. They yield 74 and of interest .and when due. Write or call for our Booklet The F. H. SMITH COMPANY Founded 1873 T-nponnly lnutd at’ 14!61416 I Street, N, W.. FINANCIAL. STATEMENT OF THE CONDITION Yoi 0P the 310t dvy SF Deneoner, IURANCE COMPANY RX, s re- 1021, uired under. the District of Columbia &ae amenaea gust ‘18, 1911. Capital stack ital stock pal Real est Boicmiats moisnat Bills reccivable . Total assets LIABILITIES. Net nnnlm clatms. Renerve brokerage, ete.... vidents remaining unpaid. Cash a! Capital stock il other liab: Total Mabilitles . T of business transe nd ocean marine, automoblle, e ot and civil commotion, explosion and other insurance as granted by charter. 1 Amount of risk sasumed dor- 30, 1902, mnd Aw- An Investment —that frees you from worry as to safety, annoyance as to collec- tions or other details, and the ne- cessity of follow-up of stock market or business conditions. Shannon & Luchs First Trusts On Washington, D. C,, Rea} Estate dnst loss »y' ler leakage, otarod r $3,558,149,246.00 9,819,506.53. unq received " during the Bpeaded during ihe Fear isdi \onu»'«"’t BOBELTSON, EST 8TURM, Becreta 22,122,130.34 MAMlmuhlure-lmllfih Bubscr day_of February, (Beal.) First Mortgage Notes M-l-b safe form of secur- the maximum raf nn'x'-‘{ Notu from $250.00 up Wl. JOHNSTONE, Notary Publie. To seek large interest returns you take the risk of see- ing a capital sum—your life!s savings, perhaps—slowly dwindle away. / To know that your original investment is always safe and at par and at the same time yielding a good income is a real assurance of safety and prosperity. Our First Mortgage Notes, secured on improved real estate in the Nation’s Capltal, will give you this feeling of security. Come in and talk it over! te of to $5,000.00 NQW ON EAND. For_full partioulars “oull oF write Chas. D. Sager 928 Fifteenth 8t N.W. Loan Dept.—Maia 36. David F. McConnaughey u-u-iumé:_"‘m Swartzell, Rheem & Hense; Co. 727 15th Street N.W. Washington, D. C. The Nation’s Home Town 52 Years Without Loss to an Investor Real Estate Gotabliched 1859 I L. Ruot g‘th Mortgage Loans % In Convenient Denominations 12 Ffteonth Sueot OMlain 6838 Unwelcome Executorships HOME SAVINGS BRANCHES O YOU realize that many individual execu- tars cordially dislike the duties that are thrust upon them? Do you know that trust companies are organ- ized and equipped to efficiently and cconomu:ally administer estates? What will YOUR executor know about secu- rities, taxes, real estate matters, accounting, in- vestments and other details of estate manage- ment? Has it occurred to you that the more desir- able he may be as an executor, the less time he may have to give to your affairs? . Have you thought of what might happen if he does not give them sufficient time and atten- tion? Consult with one of the officers in our Trust Department today about the perpetual service of Washington’s Largest Trust Company. Write or call for our free booklet, “What You Should Know About Wills and the Conservation of Estates.” COMMERCIAL 3%> ON SAVINGS TRUST " 15th. and Penna. Ave. Cf\PITAL AND SURPLUS $5,400,000.00 Safety Deposit Boxes . at Low Yearly Rentals 7th St. and Mass, Ave. 8th and H Sts. N.E. ‘436 7th St. S W.