New Britain Herald Newspaper, December 14, 1922, Page 13

The agitation, for the taxation of corporation surplus or stock divi- + dends representing transfers from surplus account to capital account, has been'revived, and is at once the cause aid result of numerous stock dividends recently, The announeg- ments of these dividends, which under a decision of the U, S, Su- preme Court are noh-taxable for the very good reason that: they do not transfer anything, has excited [y :nrtion of the public, which .understands them to be a distribu- tion of profits, and prompted a de- mand for more taxation. On the other hand, the revival. of the de- mand for the taxatiof.of such sur- plus or stock has naturally prompt- ed corporations to complete any action of the kind they may have been contemplating. What Is a Surplus? It is not strange that many peo- ple should be unfamiliar with cor- Pontlon finance, in which the term “surplus” is used in a technical sense. In the case of a corporation it does not mean cash on hand or an excess of any kind of assets over its needs, but simply an ex- cess over thé sum of obligations and capital stock outstanding. The “surplus” shown in a corporation’s statement may be, and commonly is, all invested in buildings, ma- chinery, and necessary working capital. In the operation of the business it is indistinguishable from that part of the capital repre- sented by capital stock. An individual in an unincorpor- ated businfss does not have sur- plus in the same technical sense, nor does a partnersh?, because they have no outstanding stock. They do not ordinarily make the distinction between “capital,” “sur- lus” and “undivided profits” that s done in corporation bookkeep- hen it comes to taxation, indi- widual proprietors and members of partnerships pay the regular per- - gonal income taxes upon that por- tion of the profits of the business which belongs to them, whether they withdraw any part of it from the business or not, and that is all the taxes paid upon those profits. ‘The profits are counted as income to the proprietors once, and ‘that is all. The Corporate Organization The foregoing is something to bear in mind in considering what is just and fair treatment as be- tween persons who choose to carry on business under the corporate form and those who carry on per- thaps the same kinds of business as 'individual proprietors or in part- nerships. From the standpoint of public policy, there is no good rea- son why the Government should discriminate against the corporate form of proprietorship. It is the greatest agency in existence for the widespread distribution of the ownership of large undertakings. It is the most practicable means available for promcting co-oper- ative industry on a large scgle. It has become common practice for {corporations operating public utili- tties to sell their new stock issues ito their patrons and employes, ;a notable example of such dis- Itribution being the case of the jAmerican Telephone and Tele- !graph Company, which has over l535,000 stockholders, of whom over 146,000 are telephone employes. Although a great portion of the ;business of the country is carried .on by individual proprietors and :partnerships, in many lines the op- !erations are of such magnitude, re- !quiring so great an investment of ';clpl‘taf that they cannot be handled {economically and for the best ser- ivice of the public except by cor- iporations. It is not desirable that :the development of industries on a ‘large scale shall be limited to indi- ividuals rich enough to own them alone or in partnership with a few ‘others. The joint stock corpora- :tion has opened the way for gen- teral participation in industry on a flarge scale. ¢ Even in the case of small enter- 'prises, there are advantages on the side of corporaté organization. v i NEW BRITAIN DAILY HERALD, THURSDAY, DECEMBER 14, lm | CORPORATION SURPLUS AND STOCK DIVIDEND f By GEORGE E. ROBERTS FPROM THE MONTHLY BULLETIN FOR DECEMBER ISSUED BY THE NATIONAL GITY BANK OF NEW YORK oreme laundries, creameries, grain elevators, retail stores, small facs tories and other concerns in which it i3 desir¢d to have many persona interested in the business, We repeat that there is no good reason why the persons desiring to conduct any business, whether large or small, under the corporate form of ownership, should be placed by policies of the Goyern- ment under any burden or disad- vumfe a8 compared with indi- vidual proprietors or partnerships, They are entisled to like consider- ation and similar treatment. Personal and Corporate’ Taxation As we have seen, individual pro- prietors and partnerships are taxed ypon their profits once for all, and afterward-may leave them in the business or take them out, as they pleagse. Their taxable incomes (in excess of ?crsonll exemption for normal tax) to the extent of $4,000 per year are taxed 4 per cent, and above $4,000 bear a normal tax of 8 per cent,-and the regular sur- taxes. The corporation is taxed 12% per cent upon its taxable in- come, and any distribution of that income to its individual stockhold- ers is taxed again upon the same basis, for surtax, as the income of individual proprietors and partner- ships, In other words the. effect is this: parties doinf business as a corporation pay a 1244 per cent tax on the net earnings of the business instead of the 4 per cent or 8 per cent normal tax which individual proprietors and partnerships pay, and the same surtaxes as the latter, upon all their income from the corporation dividends. Although it is argued that a cor- poration is an entity, and as such properly subject to taxation inde- pendent of its stockholders, it is ¢vident that all taxes paid by a cor- poration come out of earnings that are destined for the stockholders, and while moderate taxes may be justified ‘as compensation for cor- porate privileges, it is evident. that they involve double taxation, and to that extent penalize the use of the corporate organization. More- over, heavy taxation of corpora- tion earnings are inconsistent with the whole scheme of graduated taxation for they fall at the same rate upon stockholders with small incomes as upon stockholders with large incomes. The present 1214 per cent tax on corporation in- comes is a heavier tax than many shareholders would have to pay if they received their portion of the earnings from a partnership in- stead of from a corporation, and that discrimination will be made greater if corporate taxes are in- creased. The “surplus”, or undistributed rofits of corporations, .equitably g:long! in due proportions to the small and large stockholders ac- cording to their holdings. The in- dividual proprietor or member of a psrtnersgip withdraws profits from the business or not, as suits the case, but has’ paid the surtaxes to which he is subject.. The corpora- tion pays 1234 per cenit, but no sur- taxes, for the reason alread shown, i. e, the imposition of grad- uated surtaxes upon corporations would be manifestly unfair to the small stockholder or the stockhold- er ff small income. There are marly stockholders in the United States Steel' Corporation and every large, corporation whose total in- comes do not make them sulé~c to surtaxes. If the aduated scheme of taxation is right, heavy taxes upon corporation earnings or surplus are all wrong. The profits of corporations should be taxed as they are distributed to the stock- holders, according to the total in- comes of the several stockholders. The Law Regarding Surplus The argument for the taxation of corporation surplus is that if cor- porations were permitted to accu- mulate earnings in their treasuries indefinitely, or to invest them out- " side of the business, the stockhold- ers subject to.stirtaxes would escape the payment of them so long as this policy was followed. When- ever the distribution of corporate earnings occurred they:would be liable for the surtaxes, but the distribution might be postponed, On the other hand, it would not be desirable to compel corpora- tions indiscriminately to divide all their earnings promptly. Every growing business is constantly re- quiring in¢re capital, and it is the common practice, not only of cor- porations but of individuals and partnerships, to allow a portion of their earnings to remain in the business each year for its develop- ment. The history of nearly every important business will show that it was built up in great degree by g0 doing, afid it would be a serious handicap upon the corporate form of organization if it was not given the privilege of building up by this method. Moreover, it always has been regarded as sound, con- servative and praiseworthy policy for a corporation to huird up a surplus aggount—representing sur- plus assetswgwver and above the amount required to cover its obli- gations ‘and outstanding capital stock. The position of the cor- poration as an industrial instity- tion, as an employer of labor, as a borrower of money, as a supporter of trade, as a factor in many ways in the regular life of the commun- ity, is strengthened by the policy. It appears that Congress took these facts into consideration and did not ifitend to interfere with the normal and proper manage- ment of business. In order, how- eyer, to provide against accumula- tions of “surplus” for which. there is not legitimate use, and which there is good reason to believe are held for the purpose of escaping or postponing the application of the individual surtaxes of the Rev- enue Act of 1921, section 220, pro- vides as follows: That if any corporation, however created or organired, is formed or availed of for the purpose of preventing the imposition of the gurtax upon its stockllders or members ugh the medium of permitting its and profits to actumular innufi of [:“:,'; divided or digtributed, there ahall be levied, collected, and paid for each taxable year upon the net income of such corporation a tax equal t0 25 per centum of the amount thereof, which shall be in addition to the tax imposed by sectlon 230 of this title. * * ¢ e fact that any corporation is & mere bolding company, or that the galns and profits are permitted to accumulate Meyond the reasonable weeds of the business, shall be prima facie evidence of a purpose to ‘es- cape the surtax; but the fact that the gains and profits are in any case permitted to ac- cumulate and become surplus shall not be construed as evidence of a purpose to es- cape the tax in such case unless the Com- missioner certifies that in his opinion such socumulation is wuwreasonable for the pur poses of the business. Impossible to Distribute Invested Surplus If legislation is adopted for the taxation of corporate surplus as such, it is bound to have one of two effects: It will either sacrifice unjustly the interests of the stock- holders whose total incomes do not make them properly subject to this farther levy, or it will force the distribution of the surplus in cash, which is practically impossible in the numerous cases where the sur- plus has been accumulating for many years, and is invested in rhnt and working capital needed n current operations. In either case the legislation would cause disaster. A tax levied upon sur- plus would be retroactive, reaching back into what was left from tax- ation of all previous years. It does not seem possible that Congress, will ‘seriously consider such a pro- posal, but evidently not a few members of the next Congress are consfering it. Stock Dividends Although in the case of a new company a surplus account is sometimes started by the sale of stock at a premium, a_corporation surplus usually consists of un- divided earnings, accumulated over a term.of years, and, as stated above, does not exist in cash but in the plant or working capital. It buttresses and protects the regular capital behind the issued stock, preventing its impairment by un- expected losses, and this is one reason why it is considered wise policy to pay in a moderate surplus with new capital, growing it will need more capital and the readiest way of providing it is by allow- ing profits to accumulate from ear to year, If the opportunities ¥or expansion are good, it is often the case that only a small share of the earnings are divided, and not infrequently companies go for ¥enr| without paying any dividends' n order to apply all the profits to developing the businéss or get- ting it into a strong financial posi- tion, In the long run, however, stock- holders want to participate in the company's prosperity in a tangible manner, and where the stock % widely distributed a proper con- sideration for the varied circum- stances of the holders dictates that regular dividends be paid and that the distribution be increased from time to time as the company's as- sets and earnings increase. This is consistent, however, with the policy of continually' retaining a part of the earnings, When the condition of the com- any justifies an increased distri- ution to stockholders, the action seldom applies to anything but cur- rent earnings. A growing business does not distribute surpfixs which is part of its working capital, It may raise the dividend rate on its outstanding stock, or it may con- vert a portion of the “surplus” fund into permanent capital b means of what is called a "stocl}t' dividend.” This is done by issuing to stockholders a given amount of new stock, in proportion to their holdings, and making a hookkeep- ing entry by which the “surplus” fund is reduced and the “capital” fund is increased to correspond with the amount ‘of new stocfi. Not a Real Dividend The. fact that such an issue of stock is called a “dividend” seems to have led many persons to think it a payment from the treasury of the company, similar to a cash divi- dend. It is nothing of the kind. It is not a paymient; it is not a distribution. It conveys no title to anything that the recipient did not own before. Nothing is changed, except that the stockholder’s share’ of the lurilus has been changed on the books of the company into capital, and he is given a stock cer- tificate representing that capital. The company’s assets are just what they were before and each stock- holder's interest in them is just what it was before. No value has been created or distributed. There is no more reason for levying a tax upon the conversion of “sur- lus” into “capital” than for levy- g a tax on the opening of a new set of books. In fact “surplus” is part of a corporation’s capital. A stock dividend dedicates it perma- nently to the business. The Supreme Court of the United' States, in the case of Eisner v, Macomber, 352 U. S. 189, in which it held that stock dividends were not liable for taxation as income under the law, said: This, however (declaration of a stock divi- dmdfl ), b‘e‘ merely Imkkcepion" ;hu does ‘:m affect t regate assets of the corporation or its ont:!‘:ndint liabilities; * ¢ 'rp::‘ does not alter the preexisting proportlonate inter- est of any stockholder or increase the intrin- sic value of his holding or of the aggregate holdings of the other stockholders as they Petore. The new certificates simply reass the number of the shares, with ::fl‘equml dilution of the value of each are. The difference to the stockholder is in the fact that while “surplus® does not receive dividends, “capi- tal” does, and the new stock is evidence of a claim for dividends, in the future, This, however, is a difference in method rather than in fact, because just as much could be distributed in dividends on_the old stock as on the new. If a company with $100,000 capital and $100,000 surplus pays six per cent dividends it distributes $6,000. If it wants to increase the distribu- tion to $12,000, it can do so by either increasing the dividend rate to 12 per cent or by converting the $100,000 surplus into capital and continui%m pay 6 per cent on the $200, capital. A stock dividend o preparatory step to a tribution of earnings in the The distribution, however, may begin at once, Sometimes the rate of cash dividends is reduced, so that the amount of money received by the stockholders is no greater than before the new stock was is- sued, Whenever the actual distri- bution of earnings to stockholders begins the payments are taxed un- der the present law. It looks like an excess of zeal to insist upon taxing a preliminary arrangement, Not Stock Watering The issuance of new stock by the conversion of surplus is sometimes called “watering” the stock, but this is not according to the com- mon and o{)pmbrious meaning of the term. It is true that the value of the outstanding stock is reduced to correspond with the increased issue, but it is not true that the new stock has nothing behind it. If paid for from accumulated earn- ings which stockholders have ab- stained from withdrawing from the treasury it is as fully covered as the stock issued against payments into the treasury, The Motive If the new stock issues transfer no values, represent no values that did not exist before, and give no claims to dividends that might not be paid upon the old stock, why are they issued and why do stocks advance on the market upon ru- mors that stock dividends will be declared? One reason is that an announce- ment of a stock dividend is usually accepted as signifying that the company is in position to increase its regular distribution to stock- holders, and news of that kind is usually pleasing. The public, as a rule, does not enjoy waiting for benefits, and the fact that a com- pany is earning 12 per cent divi- dends, but paying only 6, retaining 6 for enlarging the business, does not make as good an impression as the announcement that hehce- forth it will pay 12. It is the same impatience which causes some leg- islators to insist upon the payment of 12 instead of 6 under the same circumstances, in order that the stockholders may have to pay higher taxes. The sagacious stock- holder will reflect that the reten- tion of the 6 per cent for the en- largement of the business means larger earnings and dividends in the future, and the sagacious legis- lator will reflect that by the same logic it means larger revenues to 'hi public treasury in the future but impatient stockholders an impatient legislators alike cannot bear to wait, It is the same old impatience that always has im- pelled people to eat the seed corn rather than plant it in the ground. A stock that has a high surplus value but is paying a relatively- low dividend will not as a rule have as a high a market value as one that has a low surplus value but is paying a relatively high divi- dend. In other words, the Inclina- tion of the public to rate immediate realization relatively higher than future realization tends to make stocks rise on the expectation of increased distribution. Moreover, a stock with a high surplus value becomes unattrac- tive to many possible buyers be- cause the price looks so high, and they are able to buy but few shares. One of the old banks of New York followed for many years the policy of allowing earnings to accumulate until its shares became worth about $3,500 each. Of course such a value is not favorable to a wide distribution of the stock. The book value of the capital stock of the Ford Motor Company, accord- ing to its statement of -June 30, 19%, was about $1,780 for each $100 share. If the present owners should think it desirable to invite the public to participate, no doubt that would be best accomplished by issuing more shares against the accumulated surplus, thus reduc- ing the value per share. One of the reasons given by the Su{n‘lard | Oil Company of New Jersey for its gecent conversion of surplus into eapital was that it has adopted a plan for invuinr a_participation of its employes in the ownership, Many companies, lncludhr the one last. named, have reduced the par ‘value of their stocks to $25 #his purpose. They are more read- ily purchased by persons of mod- erate incomes, The stocks of low book values sell relatively higher than those of high 'book values, and announcement of changes in this respect affect market prices. No Evasion of Tazation . Tt will be seen that there is noth- ing in the accumulation of a legiti- mate corporation surplus, or in the declaration of a stock dividend that is in evasion of the law or that accomplishes any permanent escape from taxation. Upon all corporation profits above the ex- emption of émo when profits do not exceed $25,000—no exemption above—an income tax of 12! r cent is now paid, whether t{:y are retained or distributed, and whenever any actual distribution to stockholders takes place the latter must pay the income surtaxes to which they are subject, If the earnings of corporations are re- tained for use in the business, they will accumulate and yield more taxes whenever distribution oc- curs. They are practically money at interest for the government, for they are bound to become subject to the personal taxes sooner or Iater, if the stockholders or their heirs ever get anything from them. The_Standard Oil Com:nn of New Jersey and the For lltnor Company afford the most striking illustrations of great businesses built up by reinvesting and com- pounding vheir earnings. In both cases the results have become largely due to the phenomenal growth of the public demand for their products, and to a great ex- tent it has been a closely related expansion, for the growth of the automobile industry has been de- pendent upon the development of the oil industry, and the oil in- dutry has been enormously stimu- lated by the development of the automobile. In the last twenty years they have developed to- gether, and to lccomplllh that de- velopment, by the reinvestment of earnings, either by oil companies or automobile companies, has not been a policy harmful to the public. Neither company could have played the part that it has in the ex- pansion of the industry, or paid the taxes that it has, if it had not been allowed to accumulate and capitalize earnings. And the pro?- erties that have been built up in each case are certain to be great revenue-producers to the Govern- ment for years to come. The Popular Error The popular error which s re- sponsible for the demand for the distribution of corporation sur- luses, as in all the schemes for eveling society, is in thinking of these accumulations as not only privately owned but devoted to private purposes. They are pri- vately owned, but so long as they remain as they are they are de- voted to public purposes—the pro- duction of things wanted by the public. An organization duc- ing goods or services for the pub- lic market, which never distributed any profits to its owners, but used all its earnings to provide clpaciz for satisfying an increasing publi demand, could not serve the public more completely if it was owned by the Government—and ]ldgln! by all experience probably woul not serve it nearly so well. If the Govérnment had taken over the automobile and oil indus- tries twenty years ago, and the Government officials had been clever enough to have accomplished the same development that these proprietors have accomplished, they would have had to raise practi- cally the same amount of new capi- tal that the private J)ro‘fiietorl |.have found and invested. The lat- | | ; | 107 Maple street, whose term as pres- | governmental departments and bu- WON'T BARE HEADS ter haye m; e ¢ the industries, “&mvm‘ could have in no better way. Down to thi doesn't lwurh"!:hgc“ ground for complaint these private proprietors have dodu. . oyi I.nnhbcen wideawake and enterpris :;in xt:lhllz’:'d'::‘mndl."%:{t (] seld sal might satisfied ;m: ::nlln pm'l'l.a. snswer {o that if mflr :u 7 nsion of the induse llol.nr lower the expa: try would have been , the supply of products would hn h been smalltr, and prices have been higher instead of lower. Prices are not fixed arbitrarily, and the best price for both producers and consumers is the price at which demand and supply meet— the price that clears the market. If the market is above that, a por- tion of the product is unsold, and if below, the wants of the cannot be fully met. It will be said, bably, that this is all very weflon r, but that these great properties, thus created, belong to the pi and that whenever the latter choose to change this policy of devoting profits to production they can do so, and proceed to withe draw, divide and consume the earn- ings thereafter. That is true, and is the very poist to which we are directing .attention. It is only when private capital ceases to be capital, ceases to be jused produc- tively, and is converted into some- thing to be consumed by the owne ers, that its employment for publie purposes ceases. This bei hat logic is there in’ disturblag " corporation ment into the hands of the dividual shareholders? Thes zcy twptl:kl be disruptive gf the in- ustrial organization, an would procare immediate the treasury it would be tal funds from a meflc use, rather than, as fancied by the advocates of the policy, from the service of the owners. must be high to provi nues requires to meet the neces- sary expenses of the government, and the earnings of accumulated wealth must contribute very large- ly. Nothing berein said is in- tended to controvert this. It is of great importance ,however, that it shall be generally understood that reductions of the working capital of the country make everybody ia the coun poorer. The employed industry is social wealth, no matter who Not until it {s withdra L 7 i £ gg.s i tgé e F ealth under privati ;'fnovllonnny.body g s | everyone level, and had their minds so oy L) hey gxl_bv:’no tion, of the hands, of the dustry the very they were the gg o Fik 4 b i : ik ally in the past year of 1 en old"z:cfit:ne. however, spread in the United the clamor for increased of wealth is largely b:‘y-wb 8 3 & ¥ favor it as a means country be safe from smch pro- osals until the fondamental fa* acy that runs through afl of th: is nner}l!y understood. 5. Chicago, Dec. 14, — Declaring that severe colds which frequently result seriously are contracted by mourners and friends removing their hats at funerals, Health Commissioner Bun- desen called upon the people of Chi- cago to dispense with that practice during the present extreme cold spell. “I am sure the immediate friends snd relatives of the dead appreciate the danger attending the appearance of persons bareheaded at funerals,” he said. “I want to impress on the mourning relatives that no disrespect is inten®ed by those who scek to pro- tect their health by retaining their hats in the open.” PISO'S |5 for Couyhs A (Dlds ‘Thousands of such organizations ;i(lsn! expires with the year 1922, will | reaus. VETS AUXILIARY IS ‘While there still remained some J be hostess and has invited all the| NINE YEARS OF AGEJnmmbers, as well as the members of!rlll’n‘ronces to iron out to meet the ‘1., D. Penfield camp and of Stanley |objections of cabinet officers whose | Post G. A. R., to come to her home|departments are affected, consider- Penfield Camp Associates Will Cele-|Tuesday evening at 8 o'clock and have able progress was made. toward af |a_birthday party. No set program is|completed plan. It was indicated | | given, but the press correspondent for | that the report would be ready for the Auxiliary confidently announces|submission within a few days. |that “Mrs. Lewis will serve eats.” One of the chief obstacles remain- L. D. Penfleld Camp, Sons of Veter<{ The Diary will haye its “f““‘"‘"g 50 be mEs byt %'"‘ question of one put-two tnat are somewhat ot social ‘afternoon from 2:30° until 5 | consolidating, the war and navy de-| & e ans' Auxiliary, is going to have &L "4 e ot afternoon. partments in a department of de-|°f the ordinary came in today. Chief birthday party next Tuesday. The| {3 i o ALy iext et fense. ~ Another unreconciled differ. Noble of the fire department in uxiliary as progressed 0 a. point GOVERNMENT CHANGES ence was the proposed transfer of |OPening his mail found a post card where its members have decided it is| several bureaus in the agrlcultural:"" which was written a complaint time to celebrate, and interior departments, {that a door bell at a house at 30 Hart- Nine years ago the members of Vbt i |ford avenue was out of order and fér ‘L. D. Penfield camp decided that they | President Meets Various Committees the chief to see to it that it was fixed |® needed their wives and daughters to| ' jat once. 4 \ g | help out the work of perpetuating the, ~Who This morning Captain T. W. Grace Sihenste bt the Goand dstay. They ofs | of the police department recefved -a B‘“';‘wdy the Auxiliary; thm’ knowyn ag| ~Alignment of Duties. | telephone call from an excited persos* “The Ladies’ Auxiliary to the Sons of | Waghington, Dec. 14.—President Mj\!n\wfl(!un (l'\;\lr:-q\.\;u. a cat at the tn[: Veterans. A few years ago the na-| Harding today met the joint com- ) Nice ol i A AR e it ot e tional encampment.changed the name | mission on departmental reorganiza- ‘|\nnlf‘s and organizing all as the Unit- | the felin¢ had been thn‘n for the last | to “Sons of Veterans Auxiliary.” tion, preparatory to submission of n‘l\d Iruit Steamship Co. As at present, | three days. Captain Grace reported | The anniversary’ falls ‘o .Tut\sdu.y obm‘ploled report 'to congress recom- the vessels will fly the American flag. | the matter to Chief Noble, next door, ! of next week. Mrs. Bessic.Lewis of | mending sweeping realignments in Hartford Avenue Man Wants Chief Noble to Repair Door Bell—Captain Grace Invited to Climb Tree. brate Its Birthday With Guests vited to mb Tree, 4 #h Other Organiigtions Many strange complaints are | ceived daily at the police and fire sta- re- United Fruit Company Organizing as One Unit Boston, Dec. 14.—The United Fruit Co. announced today that in order to consolidate its steamship interests it was dissolving its ubsidiary com- Are Recommending New The Always Acceptable Gift No gift reveals one’s good taste—or lack of it—more than Hosiery. We have an unusually varied assortment of those finer qualities you will want to give, R ":'Iu!' Silk, black, brown and white; price $1.50 up to Hosiery for men and boys, misses and children: 2 il S 13445402 Tgrsitey 7 2 G CEamTTmO Y Tailoring of Merit There is nothing that means more to a man than a* i, > fine suit of clothes, May it be of blue or black serge. Sport Hose, price $1.69, $1.85, $2.00, $2.25. Grey or mixed worsted. Tweed wool or whipecord. If it i fits him well and is tailored.to his individual taste he will« always feel right in it—if you are considering a suit of clothes we cordially invite your inspection of our selected stock and judge for yourself the quality of our goods. “Let Us Cluthe You, We Know How” Shop TAILORS FOR ' ELM and MAIN STREETS . - ST, Sl = P “Pape’s Cold Comipound”’ Breaks a Cold in Few Hours Thstant Relfef! Don't stay stuffed-’ ond' and third. doses usually . break up! ‘Quit blowing and shuffiing! Take|up the cold completely and end all “Pape's Cold ‘Compound”’ every 'two] grippe misery: o hours until. 'three doses are taken,| “Pape's Cold Compound” is the The first dose opens olagked up nos-| quickest, surest reliel known and costs | trils, aid alr passages”of, head; sgtops|only a few cents at' . deug: stores. nose running; relteves headache, dull, | Tastes nice. Contains no quinine. 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