Newspaper Page Text
. THE SUNDAY AMERICAN'S FINANCIAL AND BUSINESS PAGE
How to Figure Losses
Under New Revenue Bill
Business Changes Since Armistice Affeet Appa
: rently Large Profits for the Year. :
By MORRIS F. FREY,
Tax Consultant Guaranty Trust Com
pany of New York.
ITH the exceedingly high rates
W effective for 1918, the pro
posed provisions in the reve
nue bill relating to losses are of es
pecinl importance in determining the
net income, upon which inocome and
exocess profits taxes must be paid,
" Changes In business conditions
since the signing of the armistice
have had a tendency to considerably
affect the apparently large profits for
191, and in the final summing up of
the bdbusiness for last year it is not
improbable that heavy taxes will be
asseased on large profits which may
prove to be fletitious, rather than on
the actual profits of the business.
This s especially true in the case
of manufacturers and merchants
of manufacturers and merchants
meorchandise and material or who
have been so situated that they have
suffered by reason of cancellations
of contracts entered into during the
war.
APPARENT PROFITS MAY |
BE REDUCED GREATLY.
Under the Federal income tax law,
manufaeturers and merchants are re
quired to report their gross income,
taking as a basis the inventory of
their merchandise and material on
hand, valued at cost or market,
whichever is lower. Ordinarily this
method of taking Inventory is sound.
At present, however, because of the
sudden cessation of hostilities, the
prices of many classes of materials
and merchandise are highly Inflated,
and many manufacturers and mer
c.llm.,b are confronted with the proba
of & very early Arop in the
value of such goods and materials.
The lose resulting from such decrease
in value of Inventory may reduce ma
terially mot::pflnnt profits for 1915,
We may e, for example, wool on
hand December 31, 1918, The value as
fixed by the Government auctions or
the cost of the wool, whichever ls
lower, taken at the end of the tax
able year of the business, must be
nsed as the bawis of the inventory,
Al present there is no free market for
wool, the minimum prices being fixed
by the Government auctions, and it is
generally belleved that should this re
#striction be released and importation
from Argentina be permitted, the
price of wool would be reduced ma
terially.
I"VINTORY WOULD
OVE FICITIOUS.
In other words, the value of the
mv:m of wool on hand December
21, 1918, is fictitious, because of the
restrictions on impeortation and of
the fixed minimum price. The Sen
ate bill proposes to take care of such
losses l:‘y providing that losses sus
talned during the preceding taxahble
zu‘ due to shrinkage in the value
Inventories, or other cause, but as
certained for the first time during the
taxnble year of 1919 or 1920, shall be
deducted from the net income of the
preceding taxable vear, the tax for
such yeur redetermined, and any
drrotncements
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| T
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Its simpliofty, its ease of operation, its handsome Quarter
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machine of the treadle type
We invite you to look st tho various models in our large
Stock--yom need not seal under obligution to by
Carter Electric Co.,_ %
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amount collected in excess of the
amount shown due refunded.
The foregoing is only one of the
classes of losses which business is
facing.
Loss which is seriously confronting
some business concerns is the possi
ble sudden depreclation of plant and
equipment and vessels which have
been constructed or acquired after
April 6, 1917, for the purpose of fill-
Ing contracts which were contribu
tory to the prosecution of the war.
In other words, many concerns have
constructed new plants or made addi
tions to their old plants, which were
used for the purpose of filling war
contracts, and whose value and use
are reduced to a nominal amount by
the discontinuance of such work,
REASONABLE DEDUCTIONS
FOR AMORTIZATION,
The new bill takes care of such
losses by permitiing a reasonable de
duction for amortization of such
property. The provision is 8o worded
that the Treasury Department, at any
time within thivee years after the re
turn is flled, may readjust any de
duction which has been taken in the
taxpayer's return. The law does not
place any limitation upon the amount
which may be taken in any one year,
beyond the qualifieation that it shall
be reasonable, which leaves the mat
ter of the return to the w:{mmt of
the taxpayer, subject to t review
of the Treasury Department.
Under former laws, the income and
excess profits taxes have been based
upon the income for each particular
year. The new bill makes radical
changes in existing law by permitting
the taxpaver to take net losses in
prior years.
The Senate bill provides that net
losses sustained, during a taxable
year beginning after December 31,
1918, and ending not later than De
cember 31, 1918, by the taxpayer in
his business or from the sale of
bufldings or facilities, aequired suh
sequent to A:}rfl 6, 1917, and used In
the production of articles contributory
to the prosecution of the war, may be
deducted from the net income in the
succeeding year. A similar net loss
ocenrring in a taxable year ending
January 1, 1919, shall be deducted
from the Income of the preceding tax
able year if sufficient, and If not, the
balance may he deducted In a suc
ceeding taxable ‘yur. The equity of
this change is clearly apparent.
INDIVIDUAL LOSSES
TO BE DEDUCTED.
An important change in the new
bill permits the deduction for losses
in transactions in stocks and securi
ties, or other property not connected
‘wlth the taxpayer's business, regard
less of profits derived from similar
transactions, Formerly losses of this
character were limited to the extent
of any profits fefm dealings In prop
erty not connected with the taxpay
er's business. As under the former
law, the basis for determining loss in
such eases is the cost of the prop
erty, or, if acquired prior to March
1, 1913, the market valne as of that
date.
$5
Month
HEARST’S SUNDAY AMERICAN —— A Newgpgmghfpr People Who Think — SUNDAY, JANUARY 26, 1919.
'BUSINESS CONDITIONS IN THE UNITED STATES|
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The above interesting map, issued by the United States Chamber of Commetece, shows business
conditions in the United States as of January 10, 1919. The map is based on data furnished by 700
trained observers.
By OTTO H. KAHN,
Of Kuhn, Loeb & Co.
After the profound upheaval of the
war, the standard by which men will
be Judged and rewarded will be more
exactingly and far-reachingly than
heretofore, that of work done, duty
performed, service rendered.
The world will have no fiuo for
idlers and soecial slackers, nk will
reside not in birth or wealth—nelther,
I trust, will it reside in an efficehold
ing caste, but In usefu! achievement.
War Changes World.
The tremendous event of the war
will not leave the world as it found
it. To the extent that soclal and eco
nomie Institutions, however deep and
ancient their roots, may be found to
stand in the way of the highest
achlevable level of social justice and
the widest attainable extension of op
portunity, welfare and contentment,
they will have to submit te change.
We have heard it asserted of late,
not only at fathnrlngu on the East
Side, but at banquets on Fifth ave
nue, that henceforth the rulership of
the world will belong to “labor.”
Supports Just Claims.
1 yield to no one in my respect and
sympathy for labor, or in my cordial
and sincere support of its just claims,
The strueture of our institutions can
not stand unless the masses of work
men, farmers, indeed all large strata
of sooiety, feel that under and by
these ln)‘utunnml they arfe being given
A square deal within the limits, not
of Utopia, but of what Is sane, right
and practicable.
But 1 venture to say that this pre
dietion that the world will belong
to “labor” will not and ought not to
come true, for the rulership of the
world will and ought to belong to no
one class, It will and ought to be
long neither to labor nos to capital,
nor to any other class. It will, of
right and in fact, belong to those of
all classes who acquire title to it by
talent, hard work, self-discipline,
character and service.
Must Create High Level.
It is not by the spoliation of those
who have been successful, but by the
creation of larger assets and wider
opportunity for all; not by pulling
down some, but by creating a higher
level for all, that national hnpg!ness
and contentment can and must be en
haneced,
The free nations of the world have
Just terminated trlumphmlt‘ly A most
terrible war a‘frdnut the chass rule of
Autoeracy. 1 do not believs that they
will permit another class rule, what
ever it be, to take its place. Amer
lca, at least, I feel sure, will not tol
erate any such sinister development
upon its soil,
FINANCIAL NOTES,
Permission has heen given by the publio
utilities commission of Colorado te l&- re
ceiver of the Colorade Midland Rallroad
to junk the line with the exception of
twenty miles from Colorado Springs, which
connects with Cripple Creek. The commis
ston -uftmm that other roads might pur
chase the iine.
T
Rumers fre current “that the Gillette
Razor Company will inérease ita dividend
to 15 per cent. The company has out 190,-
000 shares on vmc* n‘;\profln\MM SSO a
#hare was earned A 1918, Stock ‘u ad
vanced from 112 around January 1.
B s
After a brief shutdown fer repairs, the
American Can Company {8 operating its
New Cuastle plant at about 60 per cent of
capaeity, Indications are that by the lat
ter part of the month it will be on in full
ltfordm‘f employment to several hundred
men and women. Outlook for business Is
sald to be good. .
Hamilton plant of the Oliver Ohilled
Plow Com ¥ of Hamilton, Ont., has been
absorbed §nlho International Harvester
Compuany Now.Juny.
- -
The annual report 6f Republic Tron and
Bteel will show heavy expansion in Arsots
as result of another big year. It will not
30 -uru&l’mn. It working eapital exceeded
35,000,000, Republic hus led all compa- |
nies in value added to common stock: In
1916 it eoarned $61.88 for its commoen, \n‘
1917, 547.68, in 1918 surplus avallable for
vgmmon must have been close to S3O a
share,
Calumet & Heola and subsidiaries b-‘
ginning Monday next will reduce opera
tions to 76 per dent of capacity that has
been maintained in last few montha.
Sales of the United Drn‘ (‘ompon‘ for
1918 were in excess of $61,000,000 ;;hom
English business. Figures from glish
branch not yet available. Ml‘zuhetu.l'.l:
business alone increased gver per s
~ Crucible Steel has closed down its plant
M'Norwnll;.‘ Uh;l‘», The I,:.flll&d :fi! is
n operating five opsn ar
‘:ut,oi twelve. The comn‘n"'u consider
ing closing other plants ow to eancel«
lation of orders. It has onlr orders suffi
‘elem to keep the plant employed at a lit.
tle more than 60 per cent, compared with
Dacember, Unless conditions tmprove
Cruecible will be compelled to reloase many
more employees. Directors took no action
on the question of dividends on the com
mon
l}‘umhfd Ol Company of Nebraska
suthorized m&gnl stock moroase from sl.-
000,000 to $5.000,000. No action was *n
by directors toward lasuance of any addi
tional stock
Stockholders of the State Bank of West
Pullman have voted te incre the capl
taul stock from $25.000 to ll::..wo and_to
sell the new stock at }m a share, e
bank in 1918 earned 354 per cent on its
capital stook.
By THOMAS C. SHOTWELL.
~ NEW YORK, Jan, 25.—For the first
time gince the armistice was signed the
business map Issued monthly by the
Chamber of Commerce of the Uuited
States shows a marked change of con
ditions, Business has deteriorated in
all of Florida, the southern half of Geor
gla and the extrdme south of South Car
olina. Also in southern Ohio, western
West Virginia and northern Michigan.
~ In the northwestern part of Montana
‘and northwestern North Dakota business
which was fair when the war ended is
now bad. The same condition also pre
vails on the border between Nebraska
and Kansas and In southwestern lowa.
There is a marked improvement in ex
umdln?‘ southwesterly from Des Moines,
throtia parts of western Missouri, cen
tral nsas and northern Oklahoma.
““There has been no panie, no precipi
tate decline in prices, no sudden falling
off in the volume of business,’ says Arch
er Wall Douglas, under whose direction
the map has been prepared. “The great
commercial world stood pat, and went
on doing business much after the same
fashion as before, only with added cau
tion, and with closer scanning of the
future, The past twe months have.been
A most unigue testimony to the common
sense and cool-headedness of the na
’llon‘ KEspeclally i this true hecause no
one deludes himself as to the future and
its portentous ha;)penlngs.
In all sections, from the Atlantic sea
board to the Pacific Coast, there is uni
versal expectation of lower prices. This
decline has already begun in some lines
and every one believes that it is only the
baflnnlv of a far-reaching readjust
ment, et withal, there is an equal con
m‘lmfsnuu that higher prices, though not
so high as during the war, will probably
be our yorllon for some indefinite period,
and naturally they will be accompanied
by a higher scale of wages and salaries
than frrc\'afled before the war, The real
question lies in the relation of these
two, wages and prices of commodities,
and on the fast-growing belief that the
general welfare of the country depends
more upon the great purchhsing power,
and comMsequent employment of the
many, than upon any other one factor.
“Merchandise stocks in the hands of
dealers, wholesale and retail, are normal
on the whole, thnufih heavy in a few
sections, and rather light in the drought
stricken regions of the Northwest and
Southwest. They are well assorted in
general, and all of our elaborate defini
tion about enennul"nnd nonessentials
seems largely forgotten,
“It is noteworthy that.the ieneral at
titude and action are everywhere alike;
cautious bu{inx for immediate needs
onl'y. eareful merchandising, close col
lections, and few commitments for the
future.
“Uncertainty relgns in much of the
cotton belt because the farmers are de
terminedly holding their cotton—and
they still have much unsold—for higher
{mm and are greatly disturbed over
he recent severe decline. Both facts
and staistics seem against the farmer,
but the future of cotton ¥rlces is always
an interesting gamble with fate, |
In southeasternm New Mexico, the
greater part of Texas, and portions of
forthern Montana and North Dakota,
there |r but little doing nor will there
be, until a new crop furnishes the neces
ur%mum for mmm{ and selling,
“There I 8 a rift In the clouds, how
ever, In west Texas, around Burk
b’meu. Ranger and Dublin, because
of oil dlscoveries with much drmlnT
and prospecting and a sudden inrush o
a' “pulltlon hoping to get rich over
n b
51’)\»0 is growing ease in getting
goods, and not so much of a seller's
markte as during the war. 1
“Because of cancellation of Govern
ment contmets and shutting down nf‘
Government works, labor is not so well
emplayed, not so peripatetic, and of
better calibre and efficlency. The in
dustrial centers show but small effects
of the loss of Government contracts as
most “nnnumfluron are st far behind
on old orders from domestle business,
Cancellations of orders are compara
tively few,
“Great stimulus was given the holiday
trade by the coming of peace, and the
buying of luxuries and expensive arti
cles of mere ornamentation was most
rmu;’od.
“Coal mining has suddenly shifted
from a shortage to a surplus, and in a
numhfr of gections s'"" are curtailing
operations hecanse lack of orders.
"'l‘hwm!-r whent rlnnfing i# about
60,000 acres, and ite general condi
tion has not bean eqnaled in late years
save in 1915 Tae greateat |ncren¥ in
acreage e from Ohlo westward to Kan
eas and Oklahoma, especially in the lat.
ter States. IJven out in thirsty Arizona
they ugaet to ralse 1,000000 hushela of
wheat this coming hnrv‘ant. wheare not so
long ago only the hostile and forbidding
desert held sway, ;
:‘n apite of all the pressing and im
lm fate food problems across the wa
ter, there does not seem any reason why
the hext six months should not bhrine an
appreciable decline In the price of food
products Rot:s wheat and hogs are
atned at thelr present fignres only
ammm! T lnmm;
e _recent einl estimate In the
yield of corn for IM% 18 not In aceord
with tho" But private reéekoning. 'The
Freatly uced estimate between No.
mitxdha«mharl.ulnmh
of the .w: m:d norxan and the dam
age done In July and wm‘mmn a heo
mm consideration of nt had already
A fleured by the trade In thelr own
estimates on September 1. Moreover
the official method of a _mathemation!
equation, differs Inherentlvy from the
beat private svstem, which s 'fihtt of
mmp:rhon with the vields of the pre
vious yvear. Resides, the census returns
from crop vields and the offleial est!.
mater for the consus vears show most
startling Adlserspanctos
“One of the most slgnificant fantures
s the ‘nnanl nl’g at the expiration of
mm and resulation in mrn,v nes,
in m the commercial world e
wary of {al restraint, now that the
necessity for it no longer exists and is
Snppty and Gammand, And thaT competl.
& A ) o
ta A Tl m&av: ,fia 1
During 1919 an ununuallf’ large amount
of railroad securities will mature, total
being 5345449, 200, against approximate
ly $258,000,000 in 1918.
The largest item falling due is the
New York, New Haven and Hartford
one-year 6 ger cent notes for $46,964,000,
due A{:rfl 15, At present this loan, the
first direct loan made by the railroad
administration, is held by the Govern
ment. At the time it was made the
rallroad administration gave the com
pany an option to extend it for another
year at the same rate of interest. It }fi
quite probable that the company w
take“advantage of this privilege when
the notes mature.
B. & O. Issues Large.
Baltimore and Ohio Railroad will have
an ufusually large amount of maturities
to provide for during the comlnf‘ year,
$33,500,000, the biggest item of which is
the 6 per cent four-month extended
notes for $22,500,000, due February 1.
Other Baltimore and Ohio maturities are
as follows:
Eq. Tr. B, & O. 4%5, $1,000,000, due
February 1.
Eq. Tr. B. & O. 4%5, $5600,000, due
April 1.
Ml~:q.1 Tr. B. & O, 4%5, $500,000, rue
ay 1.
B. & O. notes Ser. B 5 per cent,
$7,600,000, due July 1,
$25,000,000 Southern Ry.
Southern Railway has an important
maturity l’:illln%oalue March 2, in the
form of $25 000, two-year 5 per cent
notes. This company has enjoyed ex
cellent credit in recent years and has
been unusually prosperous, particularly
in the last two years. Its strong finan
cial position has been reflectedfl in the
market price of its bonds, which are
selling comparatively high. It is net
expected that the company will find any
difficulty in floating a long-term loan
v‘vith which to refund the notes coming
due,
Another lnterontlniltom that will have
to be taken care of April 1 is Erie Rall
road's $15,000,000 two-year 5 per cent se
cured notes. These notes are secured
by collateral eonsisting of =
Erie R, R. Cons. Gen. lien
A 5 I 8 . oiaiienniinesii o 2 DOO, 91T.008
Erie R. R. Gen. Conv. “D"
A I 8 iiapinniiininiisiey. ROTRONS
Columbus and Erije R. R. §
| PG RS .iy vhsbieyys 200000
. sttt
~ $26,789,000
| S a
U.S.Can Win Geramny’s
Trade in Central America
. NEW YORK, Jan, 25.—The United
Btates I 8 the logleal successor of Germiny
‘ln the commercial field of Central Ameri
¢a, aceording to Dr. J. P. Henderson, a
scientist who has lived and traveled wide
1y in the countries adjoining the Isthmus
of Panama.
) Dr, Henderson, before leaving for
Guatemala to bring up to date his infor
mation on trade possibilities, said:
“The Germans Lad earriéd their policy
of peaceful penetration ne farther in any
loecality than in Central Ameriesl They
had intermarried with the population and
had a firm hold on the import business of
the five countries,
“Their purpose undoubtedly was to make
a rruat German colony out of Nicaragua,
Salvador, Costa Rica, Guatemala and
Honduras. The natives, however, knew
this, and certain factions in all the coun
tries were always hostile to them.
“Sinee the war brought to light many
underhanded instances of German treach
ery, Latin-American sentiment has been
so aroused against the Teutons that they
will never be able to regain their su
premacy.
“The United States, If she will only
grasp the opportunity, can have Germany's
place,
“We can sell th’m salt, cement, ma
chinery, agrieuitural implements, vehicles
and manufactured articles and buy from
them pulp wood, seventy-two kinds of
timber, drugs, \ides, broom corn, fruit,
lead, eopper, iron, mangancse and num
berless raw materiale.”
Case Thrashing Year
Best in Its History
The forthcoming annual report of the
J. L Case Threshing Machine Company for
the fiscal year ended December gl. 1918,
will show that the company had the best
year in its histery, Gross salos for the
year were well above $26.000,000 com
pared with $17,667,764 in 1917 and $13,-
047,267 In 1916,
This ig directly due to thes intensive
production 'of foodstuffs by farmers
throughout this country, Canada and Seuth
Amerioa, whioch resmuited in llargely ine
orensed deminnd for all kinds of agricul
tural implements and tractors,
The report will show that during thé
year the company reduced ita bonded in
debtedness to $3.206,000. This compares
with bonded indebtaduess en December 31,
1917, of $6,012,000,
5 5 ™o
DIAMONDS
Davenport Says Purchases Abroad
: 4
Shoulq Be Routed Direct
.
to Our Ports.
CHICAGO, Jan. 25.—T0 get foreign
trade the United States must buy
abroad and route its purchases direct
from the producer to our ports, in
stead of paying tribute to some Eu
roepean shipping interest, according
to H. F. Davenport, secretary of the
Brunswick - Balke-Collender Company
and authority en foreign trade mat
ters,
“Every American who has visited
the great exposition of world's raw
materials on the Liverpool docks and
the East India Company's wharves
on the Thames in England knows wh)
English manufactures control the
world's foreign trade,” Mr. Daven
port said yesterday.
England the Middleman.
“The Liverpool docks are seven
miles long on the river front and
there is perhaps a mile of hasin dock
age for every foot of frontage., They
are in times of peace crowded with
ships of every kind from all parts of
the universe discharging raw mate
rial and receiving factory products.
“One can see here more plantation
products, hides, tallow, crude rubber,
dyewoods, teas, coffee, lumber, fancy
woods in greater quantity and variety
than at any other place on earth,
“Ask where this vast quantity of
material comes from and where it
goeß and the office managédrs will tell
you perhaps 10 per cent of it is used
by factories in England and many
thousands of tons originating in Cens
tral or South America will again
cross the ocean to the United States
or some other foreign country. Eng
land is the broker, the middleman and
tariff collector.
“But the real feature of the British
trade plan which interests the Amer
fcan manufacturer is that the ships
which bring thése materials to the
Liverpool docks, the Thames or
Southampton do not return home with
empty holds. Their cargoes are then
the products of English factories.
“Scme small part may be from the
mills of the continent, but even this
'has passed through the warehouses
at Liverpool, the Bast India docks or
‘Southampton and paid tribute to the
‘Brltsh brokers or middlemen.
| Key to Foreign Commerce.
“This system, coupled with FBng
land’s Board of Trade, foreign com
merce bank, commercial elub and
Consular service, all interlocking and
working in perfect harmony, supply
‘the Kkey to England’'s foreigh com
merce control that Germany tried for
Years to break with cheap prices, en
§laved labor and subsidized shipping
marine,
“That is the story of the hig Ware
houses on. the Liverpool docks. Its
niéssage to the manufacturers of the
United States is: Send your buyers
to South America and the Orient. Let
them do the pioneer work and blaze
the way for your salesmen.
‘rhan you sell goods for export
and find you chn not make delivery
on time because of no direct trans
i»ortation facilities you are quite like
y to discover you have wasted time
and money and have created a bad
impression with the buyer, which
means another boost for our Euro
pean oom::tltors.
nd Buyers First.
“Let our buyers turn the tide of
trade toward our North American
ports. Induce our importers of fancy
wcod logs, vencers, dyestuffs, ete., to
divert their orders from Liverpool di
rect to the shipping port.
“The producer will find a ship to
deliver the goods at American ports
without twice ctossing the ocean and
paying tribute to our esteemed fellow
citizens, the English brokers. The
ship which brings this raw material
to our shores will not return home
with empty hold. "
“It will carry goods of American
manufacture and open a line of trans
portation that will make easy the
work of the salesman who follows the
buyer.”
Outlining Shipping Plans.
Plans to give manufacturers of the
Chicago district every shipping facil
ity enjoyed by tidewater manufactur
ors were outlined yesterday by the
foreign trade subcommittee of the
Illinols Manufacturers’ Association,
Formal recommendation that trade
service bureaus be established by the
association in New York City, New
Orleans and San Francisco was mnade
by the subcommittee. Ratification of
the recommendation by the main
com&ttec is regarded as af.arh.lnty.
= bureaus will render manu
facturers of this district exactly the
service that a personal representative
in the shipping port would render,
They will look after shipments in
warehouses, charter ship space, look
up credits, report at onfe on arrivals
of raw materials and in general look
after the interests of this locality,
Manufacturers believe the bureaus
will remove all cause for the frequent
complaint that many commission
houses, ship lines, warehouse owners
and others often dlscriminate against
inland manufacturers in favor of
tidewater interests.
One mdependent iron and steel producer
with large ingot capacity rcxoru it was
difficult to serape together orders to main
tain reduced eperations current week. 1)-.
#pite this situation this manufacturer does
not foreeast any recession In prices to
stimulate bdying, Bteel manufacturers are
reporting lahor & becoming more efficlent,
Understanding in some mrtaru ia total
rallroad tonnage 18 now al t 60 per cont
of what it was at high tide.
City Chamberlain Johnson
Becomes Wall St. Notable
Financial Analyst Saves New York $150,000 oy
Interest Charges Yearly by Careful Plae
ing of Bank Account. 4
NEW YORK, Jan. 25.—With the
retirement of Alfred J. Johnson from
the office of Chamberlain aof the City
of New York to become an active
member of the banking and broker
age house of Anderson, Bruns & Co,,
a new figure of importance arises in
the financial world.
Mr. Johnson was selected as City
Chamberlain by Mayor Hylan because
of his remarkable ability to analyze
accounts and financial statements.
For ten years he had been the con
fidential financial analyst for Danlel
G. Reid. It is said of him that he can
take a bank statement, an industrial
or a raillroad report, and interpret its
meaning in less time than any other
analyist known in Wall Street. The
remarkable success of Mr. Reid has
been credited very largely to the ex
pert work of Mr. Johnson.
In the City Chamberlain’s office the
expectations of Mayor Hylan werei
fully realized, for although that office
had been filled by financial experts of
the highest order under other admin
istrations, Mr, Johnson leaves it with
the city receiving an average of $150,-
000 more a year in interest alone from
its current funds. The banks, in
recognition of the businessiike ad
ministration of the office, have in-|
creased the interest allowed to the
city (so that where formerly the av
erage received was only 2 1-4 per
cent, it is now 2 3.4). On the twen
ty-five to thirty millions of city
money that is constantly passing and
irepansing through the banks this
‘means that Mr. Johngson made for the
city in that one item alone ten times
the salary he received. He intro
duced other methods of great value
to the city, so that he leaves the ad
ministration with the cordial good
will and gratitude of Mayor Hylan.
To such an extent was his finan
cial efficiency recognized by the
’banklng world at large that after it
was known he would return to pri
vate life, Governor Smith prevailed
upon him to accept an appointment
as a member of the Reconstruction
Commission, which will have charge
of the outlining of a legislative pro
gram to adjust the State of New
York to the new conditions arising
out of the war. This commission will
be made up of recognized experts in
all lines—finaneial, labor, so€tal, agri
cultural, health and other elements
affecting the public welfare. Mem
bership on this committee will be the
highest honor Governor Smith can
confeér upon citizens of the State be
cause of the very important ques
tions the commission wiil have to de
cide tnd because its decisions will af
fect the whole future of the people.
The firm of Anderson, Bruns .;Vz Co.
ie a conservative brokerage house do
ing a high-class business very largely
of a confldential nature. It is one of
those houses to which a largé in
vestor, wishing to pick up a line of
securities, will give an order to buya
few thousand shares, not at a set fig
ure, but on the best terms that can
be secured,
The other partners, William. C. An
derson, Edwin €. Bruns, both mem
bers of the New York Stock Rx
Publishers Press
VAL NOTICE
Follow the arrow from Peachtree
entrance at the Candler Building
to the New Location of the 25 (e
Publishers Press at .i)éif-!: oit &
30-32 e g ol ¢
James St. "3 il T
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THEAT sT. .
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500 L ‘—o‘ § ’
Feet 9
From .
Peachtree . 4
at the
Candler Bldg.
Our plant is in complete operation at the new lora
tion, and we will be glad to see both old customers and
new ones. We are just 500 feet from Peachtree, at the
Candler Building.
| To our prospective customers let us say that our
| plant produces more printing than any other plant in
| Qeorgia. ““There’s a Reason.”
‘ Ifycnm‘l()vod.ha(printingsmr,itinwarfl\
your while to get in toueh with us, and as the amount in
ereases, the urge should be greater.
Follow the arrow, or use the phone.
‘ | Special Spanish Department '
| For our customers who are going after South American
trade, we have a speciat department to translate aud print
your Wterature. Can also handle Frenc hand Russian
R THE PUBLISHERS PRESS
LJ. EDWIN KERR, "'pfid.f 30-32 James Otreet
e —————————————
t ALFRED 'J. JOHNSON, |
Former Citay Chamberlain of Nm«f
York. |
|
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change, and Willlam L. Freudenstein
the office partner, are all within ¢
few months (of the same age, abon!
49.. Mr. Anderson has h@s:‘l in Wal
Street since 1886 and becathe a mem.
ber of the Exchange in 1901, He wat
formerly with Sharp & Bryan. ir
Bruns became a member of the Fx
change in 1891, where hig father
Philip Bruns, was also a-member »n¢
one of the recognized Reckefelles
‘brokm‘s. Although thare are I,lo¢
brokers on the Exchange, there are
~only about 100 left of those Wwho wert
{memhers when Mr. Bruns joined it 24
‘ymrs ago. This is inferesting at
showing the rapidity with whicy
'memberships cHangeA In his earlles
| years Mr. Bruns was with Seneca D
Brown, as member of the firm of
Brown, Bruns & Co. Mr, Freudens
stein was also with that firm,
. Deecision of Mr. Johnson to hecoms
an active broker is due to his belie!
that the United States is at the
threshold of a new era of finance
growing out of America's remarkabl
new power as a world factor.