Evening Star Newspaper, June 23, 1933, Page 4

DIVIDENDS TAXABLE AFTER JUNE 15 Helvering Rules Upon Dec- " larations Following That Date. By the Associated Press. The Bureau of Internal Revenue will hold that dividends declared after last June 15 were taxable, Commissioner | Guy T. Helvering sald in a statement | yesterday In which unofficial opinions expressed by tax officials were over- | Tuled. Officials had expressed the unofficial | opinion that the national industrial re- covery act became effective at 11:55 a.m. on June 16, since it was signed by | the President at that time. The section imposing the 5 per cent tax to be withheld at the source pro- | vides that dividends dcclared before | the “effective date” were not taxable. | Counsel for the Commissioner held this meant dividends declared before June 16, the day the new law became effec- tive were not taxable and any dividends declared on June 16 must pay the tax. | Honored EXPLORER AND AUTHOR RECEIVE DEGREES. Cites Other Tax Changes. The Commissioner called attention to | the other tax changes contained in the law, which included the excess profits tax imposed on corporations. This tax is equivalent to 5 per cent of that por- tion of the corporation’s net income for the taxable vear ending after June 30 1933, which is in excess of 127. per cent of the adjusted declared value of its capital stock The law also increased the rate on | consolidated returns of corporations 14’ to 14% per cent, but this | does not apply to the taxable years 1932 and 1933. | Another change taxes the accummu- fation of earnings held to avoid surtax and earnings held to avoid payment of excise taxes on dividends. One of the most important changes 48 the repeal of the section of the law which permitted the taxpayer to carry. over for two years losses from sale or exchange of stocks and bonds which | have not been held for more than two years and the Tepeal of the section | which permitted deduction from taxable | income for the year net loss in the pre- | ceding year. | Another change limits private banks to losses on sale or exchange of stocks or bonds which are not capital assets. Still another amendment prohibits any | m of a loss of a partnership being n as a deduction to a member of | such partnership in computing his net | income. Returns .Open to Public. | ‘The new law also provides that all| Sax returns made under the act shall be open to public examination and in- | spection to such extent as shall be au- | thorized by the President. It also pro- vides that the new taxes may be de- | clared void by the President at the end | of any year during which the Govern- | ment’s total receipts exceéd its expendi- | tures, or when the eighteenth amend- ment is repealed. | Helvering said regulations soon would be promulgated covering the imposition of new taxes and the changes in the law made by the various amendments. MAL R.T. TAYLOR DIES | AT PHILIPPINE POST Army Officer, Ill but Four Days, | ‘Was Son of Former President | of Vassar College. By the Associated Press. | MANILA, June 23.—Maj. Richard T.| Taylor, 42, assistant chief of staff of the Philippine Department of the United States Army, died here today after a four-day illness. Maj. Taylor was & native of Pough- keepsie, N. Y., where his father, Dr. James Monroe Taylor, was formerly president of Vassar College. After being graduated from the Man- luis School and attending Williams Col- lege, Taylor was commissioned in the | Army in 1912, serving in Hawaii and | France with the 8th Infantry. He ar- ; rived in the Philippines 18 months ago. | Survivors include his _widow, the former Marion Bretz of Dobbs Ferry, N. Y. and a daughter, Mary Breiz Taylor, a student at Miss Harridge's 8ehool, in New York | Great Savings on all open stock China and Glassware, Silver, Linen, Lamps, Furniture, etc. DULIN @ MARTIN Connecticut Ave. ana 1™ degree of master of science, and Pe INCOLN ELLSWORTH (left), noted explorer, who received the honorary I the honorary degree of master of science, are shown here with Prof. illiam Lyon Phelps of Yale just 2d commencement exercises at Yale University. UNOFFICIAL ENVOY | ASKED FOR RUSSA Col. Pope Tells Administra- tion Some One Should Be Sent Without Delay. {Zopyright. 1933. by the Associated Press.) NEW YORK, June 23.—Col. Freder- ick Pope, just returned from a quasi- official visit to Russia, advised the Roosevelt administration today to dis- paich an unofficial representative with- out delay to the U. 8. S. R. Recognition should follow within a year or thereabouts, Col. Pope reported, dependent upon the satisfactory settle- ment of propaganda and other differ- | ences. The status of such an envoy would be | similar to that of Boris Svirsky, Soviet representative in Washington. Col. Pope, president of the Nitrogen Engineering Corporation and an execu- tive of the American Cyanamid Cor- poration, discussed all phases of the recognition questioh with Soviet officials. Before he left the United States the engineer spent several hours in Wash- ington in conference with administra- tion forces and prepared a preliminary | report soon after his return. it was understood one of Col. Pope's recommendations against immediate recognition is that it would militate strongly against a free hand for Amer- ica in the current Far East situation. During the term of unofficial rela- tions the observations of the United States agent in Moscow would be in- valuable in shaping a foreign policy | encompassing the Soviets, Japan, Man- churia and China, the engineer believes, | An envoy, in Col. Pope’s opinion, would be valuable in other ways, fur- | nishing trade and political information | and serving as a liaison with the Soviet | government for Americans in distress. | Col. Pope said the féod situation in Russia was reported to him as worse than at any time since the great famine, with indications that millions are undernorished as a result of the shortages. Police Justice Fined. Justice Charles H. Warren of N. Y., who has collected thou- sands of dollars in fines from motorists, pleaded guilty to passing a red light and another police justice fined him $10. 'MUSICAL STUDENTS | torship of Weldon Carter. THE EVENING STAR., WASHINGTON, by Yale earl Buck (right), author, who received after they received their awards at the —Wide World Photo. Skeletons of Giant Indians Unearthed In Louisiana Paris By the Associated Press. NATCHEZ, Miss, June 28— Skeletons of Indians estimated to have been more than 7 feet tall have been unearthed by explorers of Catahoula Parish, La. A search for locations for study by members of the Smithsonian Institution disclosed from 15 to 20 of the skeletons in 2 grave on & mound at Larte Lake. The discovery was made by Dr. E. A. Beithaupt and E. W. Knight and was regarded as con- tributing to the theory that the prehistoric mound builder once lived there. GET CERTIFICATES i ‘Washington Institute and Institute | of Musical Art Make Awards to Pupils. Certificates were given pupils of the Washington Musical Institute and the Institute of Musical Art, Inc., last night at 831 Eighteenth street. These two institutions are merged under the direc- The following pupils Teceived certifi- cates: Washington Musical Institute— Grade one, Barbara Stellwagen, Caro- line Koortz, Margaret Hertzman, Julia Foley and Dorothy Jackson. Grade | two,” Margo Drury. Elaine Hertzman | Ann Derrick and Jack Copping. Grade three, Philip Drury and Phylis Harron. Grade four, Alice Marie Hadley, Maurice Rawlings, Don Hopkins Mary Ellen Edmonds, Louise Spilman and Frank Etzler. ' Grade five, Charlotte Anderson, Gloria Carter, Telula Eubank and Sidney Dorfman. Grade six, Helen Furr, Evelyn Eibender, Margaret Ann Morgan, Horace Drury and Edwin Porter Brereton. Institute of Musical Art—Grade one, William Reith, Jack Henry and Carol Bernstein. Grade two, Nelson Shelledy, Mildred Nyman, Peggy Wright, Arlin Appick, Isabel Harrison, Charles Wash- burn and Anne Johnson. Grade three, Jack Parrish Edward Barham, Jean Guaragua, Elizabeth Rasmussen and Margaretta Eckloff. Grade four, Howard Bollenger and John Abbadessa. Grade five, Hope Pantell. Grade six, Paul Inbody. Junior grade certificate, Erna E. Martin. As Sketched--Imported SaLap P ROYAL CAULDO! embossed rim a (A) Were $15.00 dozen. (B) ENGLISH Salad Plate with maroon rim enter. and floral Now—DO! () MASON'S Salad F ) with dozen. Now—D Many other FrencH 66-Pc. Service v white Fr china with vory rim. Clu rosebuds, a border Fine q Limog of pink ventional thread lines of tan, red and green give smartness. edge. Handles !5>-coin Wonderful value. choice of underglazed decoration. Were $18.00 LATES) N Salad Plate with nd center decoration. Now—DOZEN .. Were $15.00 dozen. Plate. Embossed rim, hand-enameled or < at special reductions DINNER SET for 8 at Half Price! ench full usters con- and REGULARLY $65.00 $3 2.50 Gold gold. | Barnes testified | amount of invested capital the exam- | iner excluded write-up and inter-com- §6.317,102 GAINED BY GAS CAPITAL Appreciation Figures on Ar-| kansas Concern Given Trade Commission. By the Associated Press. An $8317,102 appreciation in the fixed capital of the Arkansas Natural Gas Corporation above costs to Cities Service Co. was detailed to the Federal Trade Commission today by one of its accountants, Roger E. Barnes. In this appreciation, Barnes included | $5,669,975 “write-up” over ledger as- sets of companies out of which the cor- poration was formed in January, 1928. He said the difference between this “write-up” figure and the total appre- ciation of $8.317,102 represented appre- ciation over and above costs to the Cities Service Co. of property transferred from the Empire Gas & Fuel Co. and the Arkansas Natural Gas Co. | 1t was Barnes' third day of testimony on the financial organization of the | Arkansas Natural Gas Corporation, a | subsidiary of the Cities Bervice Co. He | was examined by Robert Healy, com- | mission counsel. | Earning Rate in 1929. Barnes said the corporation in 1929 earned 9.08 on its consolidated invested capital before allowance for deprecia- | tion reserve. | This rate of earning dropped to 7.56 per cent in 1930 “The rate earned after allowance for depreciation accrual was 6.45 per cent in 1929 and 4.52 per cent in 1930, “In arriving at the | pany appreciation because they did not represent an investment in the busi- | ness. Barnes said the plant investment of the Arkansas Natural Gas Corporation and its subsidiaries aggregated $78.- 238,925 on December 31, 1930, of which | $62242,130 was in gas companies and $15,996,794' in the Arkansas Fuel Oil C 0. The largest of the gas company plant investments was $30,060.667 in the Ar- kansas-Louisiana Pipe Line Co. Earnings of Subsidiaries. In discussing earnings of subsidiaries Barnes sald: “An examination discloses that the natural gas producing and pipe line companies (Arkansas-Louisiana Pipe Line Co. and Reserve Natural Gas Co.) | realized a substantial profit each year, | vet the retail distributing companies | (Little Rock Gas & Puel Co. Public ! Prices Advance If any refrigerator at no extra cost! pliances found at HARD Exclusive Features LEN-A-DOR *On All Models PARKING SERVICE — Connecticut Ave. Entrance — HOURS: 9 AM. to 6 P.M. ==""""% q M2GST.NW. o D. C. FRIDAY, Utilities_Corperation of Arkansas and South Cities Distributing Co.) experi- enced losses in each vear except South- ern_Citles, which realized a profit in 1928 and 1929. “By far the largest element of the operating and maintenance expenses was the cost of gas purchased at whole- sale, which in this case was purchased from an affiliated company. There- JUNE 23, 1933. ’PIANO TEACHER INJURED IN AUTOMOBILE CRASH W. A. Beall in Critical Condition at Walter Reed—Cottage City Man Is Arrested. fore. the intercompeny purchase is an | important factor in the net results of | " figure showed that in 1929 the Arkansas-Louisiana Pipe Line Co. sarned $2,327.099. increasing this in 1930 to $2.766,520, while corresponding fig- ures for Teserve natural gas were $451,- 179 and $252335 In these same two years the Little Rock Gas & Fuel Co. lost $97.760 and $161.658, respectively: the Public U ties Corporation $83,253 and $319.5 while Southern Cities earncd $141,451 in 1929, but lost $241,500 in 1930. Rezoning Hearing July 25. UPPER MARLBORO, Md., June 23 (Special) —An application of H. W. Blundon, agent, for reclassification of lots 8 and 9, block 18, Lakeland. ncar Berwyn, from Tesidential to commer- cial, will be given a public hearing by tHe Prince Georges County Commis- sioners at 11:30 am. July 25, it was announced today by James S. Heal, county clerk. William A. Beall, 48, of 800 Eleventh street northeast, a piano teacher, was critically injured last night when the automobile he was driving collided with another machine at Eighth street and Concord_avenue. He was treated at ‘Walter Reed Hospital for a compound fracture at the base of the skull, cuts about the legs and body. Larry H. Williams, 34, of Cottage City, Md., who was driving the other car, ac- cording to police, was arrested on a charge of reckless driving and released under $500 bond. v n Boy Scou from Pennsylvania will leave July 19 to attend the international Scout jamboree at Bodollo, Hungary. Th in charge of Yule Fish the Troop Committee of Troop 8 here In the party will be William Leith, Mason Gray and Thornton Burnet of Troop 8, Henry Surface of Troop 88, and Lynn Brua of Altoona, Pa. 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