Newspaper Page Text
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| THE SUNDAY AMERICAN'S FINANCIAL AND BUSINESS PAGE |
How to Figure Losses
Under New Revenue Bill
Business Changes Since Armistice Affect Appa
i rently Large Profits for the Year. .
| By MORRIS F. FREY,
. Tax Consultant Guaranty Trust Com
t pany of New York.
! ITH the exceedingly high rates
EW effective for 1918, the pro
i' posed provisions in the reve
nue bl relating to losses are of es
pectal importance In determining the
net income. upon which inoome and
axoess proffts taxes must be pald,
. Changes In business eonditions
simoe the wsigning of the armistice
have had a tendency to considerably
affect the apparently large profits for
18, and in the final summing up of
t4~ business for last year it s not
improbable that heavy taxes will be
ammessed on kuge profits which may
Peowe to be fctitions, rather than on
the aotual profits of the business.
This & espectally true in the case
of manufacturers and merchants
of meanufactusers and merchants
wflfln and matertal or who
been so situnted that they have
suffered by reason of eanceilations
of contracts entered tto during the
APPARENT PROPITS MAY l
BE REDUCED GREATLY.
Under the Federal income tax law,
manufacturers and merchants are re
to report thelr gross ncome,
a 8 a basts the Imventory of
merchandise and material on
hand, valued at ecost or market,
whichewer is lowow. Ordinartly this
method of taking inwentory \s sound.
At present, however, because of the
s cessation of hostilittes, the
) of many oclasses of materials
i mwerchandise are highly inflated,
) many manufacturers and mer
are-confronted with the proba
[ Bllity of a very early deop in the
v of such goods and materials,
Jome resulting from such decrease
| valve of inventory may reduce ma
;vi the apparent profits for 1918.
= We may take, for examphke, wool on
nd December 31, 1918, The value as
B by the Government auctions or
cost of the wool, whichever Is
E takem at the end of the tax
able year of the business, must be
us as the bawis of the inventory.
L = there 1s no free market for
B . mintmum prices being fixed
i Government auctions, and it is
Y believed that nhouldvéh!a re
- lon be released and impbrtation
fro Argentina be permitted, the
pric of wool would be reduced ma-
INVENTORY WOULD
PROVE FiCITIOUS.
| In other words, the value of the
£ tory of wool on hand December
31, 1918, is fictitious, because of the
§ trictions on importation and of
the fixed Wum price. The Sen
ate bill pro "% to take care of such
pases by providing that losses sus:
tained during the preceding taxable
due to shrinkage in the vhlue
P inventories, or other cause, but as-
Co ined for the first time during the
(taxable year of 1919 or 1920, ghall be
i lucted from the net income of the
beding taxable year, the tax for
_, eh year redetermined, and any
Wedding dnvilalions.
_leowzcwzerz[r.
WEBB gVAR,V COw
Wes! abama dge%rmlanh/
- eE“ ;
/,:, = \§“
“ s N\ "
\JA sL 3 L .
w. Y E
"’ ! e A - |
l':‘ &\ \,~ -t ‘/. | ‘
h A\l
$5
Cash
Now you ean have a sewing machine that = light
and compact—that can be earried from room te room
or stowed away in a closet out of sight when not in use.
And Rt will speed up your sewing, tob, for the Davis
mn.cwio-mn-uiudemnemmu
any of the oldfashioned sewing machines
Its simplicity, Ms ease of operation, its handsome Quarter
Sawed Golden Oak woodwork and tasteful Adam Period
decoration will please you. Remember, YOU pay no more
for a Davie Portable Riectric than for a high-grade wewing
machine of the treadle type.
We invite you to look at the varfous models in our large
H.‘l‘hfllnd«oblmbhy
Carter Electric C 0.,..%,
r ciric. * Peschtree
amount collected In excess of the
amount shown due refunded.
The foregoing i 8 only one of the
classes of losses which business is
facing
Loss which is seriously confronting
some husiness concerns is the possi
ble sudden depreciation of plant and
equipment and vessels which have
been consiructed or acquired after
April 6, 1917, for the purpose of fill
ing econtracts which were contribu
‘wry to the prosecution of the war
In other words, many concerns have
constructed new plants or made addi
tions to their old plants, which wers
‘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
lossos by permitting a reasonable de
duetion for amortization of such
property. The provision is 8o worded
that the Treasury Department, at any
time within three years after the re
turn is flled, may readjust any de
duction which has been takem in the
taxpayer's return. The law does not
piace any limitation upon the amount
whidh may be taken in any one year,
beyond the qualification that it shall’
be reasonable, which leaves the mat
ter of the return to the pudgment of
the taxpayer, subject to the 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 taxpayer to take net logses In
prior years.
The Senate bill provides that net
losses sustaimed, duflu& a taxable
year beginning after cember 31,
1918, and ondy;[ not later than De
cember 31, 1878, by the taxpayer in
his buminess or from the sale of
builldings or facilities, aoguired sub
sequent to April 6 1917, and used in
the production of articles contributory
to the prosecution of the war, may be
dedueted from the net income In the
succeeding year. A similar net lm\
occurring 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 be deducted in a sue
ceeding taxable year. The equity of
this change Is clearly apparent. ‘
I%D'VIWAL LOSSES |
TO BE DEDUCTED. 1
An important change in the new
bill permits the deduction for losses
in transactlons in stocks and securi
ties, or other property not connected
with 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 from dealings in prop
erty not connected with the taxpay
er's business. As under the former
law, the basis for determining loss in
such cases is the cost of the prop
erty, or, ilf acquired prior to March
(I’, tma, the market value as of that
ate.
Davis
Porrable Floctric
Sewing Machines
'BUSINESS CONDITIONS IN THE UNITED STATES
B LR
e Y SR S A T
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bk ot U ANSE U - flw ant g2y TS
g waopl § ”“.sz e ¥ & ok o ?-
Ao- A b S
a.. A ,':fa { s o ey ) n .{‘ f‘ .
Sl N & AR aNI
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{A-k:’nu-u ) VESTON, b S POOR
A
The above interesting map, issued by the United States Chamber of Commerce, shows business
conditions in the United States as of January 10, 1919. The map is based on data furnished by 700
trained observers.
———— e ————————
By OTTO M. KAMN,
Of Kubn, 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 place for
idlers and social slackers. Rank will
reside not in birth or wealth-—mneither,
I trust, will it reside in an officehold
ing caste, but in useful achievement.
War Changes World.
The tremendous event of the war
will not leave the world as it found
It. To the extent that soelal and eco
nomic institutions, however deep and
ancient their roots, may be found to
stand in the way of the highest
achievable level of social justice and
the widest attainable extension of op
portunity, welfare and contentment,
they will have to submit to change.
We have heard it asserted of late,
not only at gatherings 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.
I yield to no one In my respect and
sympathy for labor, or in my cordial
and sincere support of its just elaims.
The structure of our institutions can
not stand unless the masses of wnrk“
men, farmers, indeed all large strata
of wmociety, feel that under and hy‘
these institutions they arfe being given
a square deal within the limits, not
of Utopia, but of what I 8 sane, right
and practicable
But | 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 ne
one class. It will and ought to be
long neither to labor nor to ecapital,
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 nahomsl‘applnvflfl
and contentment can and must be en
hanced.
The free nations of the world have
Just terminated triumphantly a most
terrible war against the class rule of
autoeracy. I do not believe that they !
will permit another class rule, whn-\
ever it be, to take its place. Amer
lea, at least, 1 feel sure, will not tol
erate any such sinister danlopmem‘
upon its soil
FINANCIAL NOTES, |
Permission has been ,Iwn by the public
utilities commission of (‘olorado to the re
cetver of the Colorade Midland Railroad
to Junk the line with the exception of
twonty miles from Colorado Springs, which
connects with Cripple Creek. The commis.
Slon suggests that other roads might pur
chase the line
. - .
Rumers are current that the ()mtnn
Razor Company will incrense its dividend
to 16 per cent. The company has out 190«
000 shares on which nm;rnnlmn(rl{l S6O a
#hare was earned in 1918, Stock has ad
vanced from 112 around Jaunusry 1.
N
After a brief shutdown for repairs, the
American Can Company Is operating its
New Castle plant’ at about 60 per cent of
capacity Indications are that by the lat
tor part of the month it will be on in full
nltwdlnf employment to several hundred
men and women. Outlook for business |s
said 1o be good
Ll - .
Hamilton plant of the Oliver Chilled
Plow Company of Hamititon, Ont., has been
absorbed :: the International Harvester
Company M.Jd;fl;
The annual report of Republie fron and
Mool will show lnvg CxXpansion in assets
A 8 result of another big year. It will no&
be surprising If working capital exoeede ‘
$36,000 000 R.:’pulvllr has led all compn
nru in value added to common stock. In
1616 it ecarned B§6l 88 for its common, in
IRLT, SAT.BK, im 1918 surplus avallable for
‘::\:o.non must have been close to S3O -
Calumet & Heola and uz‘hfln be
ginning Monday next will nee opers
lmutoflruundown’wln
been maintained in last sow montha
Snles of the United Dr“.:‘ompuq for
1918 wore in excess of $61,000.000 without
English business. H{um from English
branch not yet available. Manufasturing
business alone increased over 40 T' cont.
Crucible Steel has closed down its plant
at Norwalk, Ohlo. The Midland plant is
only operating £ive open hearth
out of twelve. The company {8 considers
Inf closing other plants o’iu to eancel
lation of orders. It has onr orders suffi.
clent to keep the plant employed at a HMt.
tle more than 60 per cent, compared with
Decomber. Unless oconditions improve
Crueible will be compelled to release many
more employees, Directors took no“action
on the guestion of dividends on the com
nien
Standard Ofl Company of Nebraska :un
authorized r.‘:l(ll stoek tncrease from §l.-
000,000 to 85,000,000, No action was taken
by directérs toward lssuance of any addi
tional noc:. '
Stoekholders of the State Bank of West
Pullman have voted to increase the capi
tul stock from $25.000 to SIOO,OOO mq to
sell the new stoek at $l6O a share, ©
bank in 1918 earned 34 per cent on its
oapital stock
$5
Month
HEARST'S SUNDAY AMERICAN — A Newspaper for People Who Think — SUNDAY, JANUARY 26, 1919,
D
By THOMAS C. SHMOTWELL.
NEW YORK, Jan. 26.—For the first
time since the armistice was signed the
business map Issued monthly by the
Chamber of Commerce of the United
States shows a marked change of con
ditions. Business has deteriorated in
all of Florida, the southern half of Geor-
Ein and the extreme south of South Car
olina. Algo in southern Ohio, western
Waest Virginia and northern Michigan.
In the northwestern part of Montana
&nd northwestern North Dakota business
which was fair when the war ended 18
now bad. The same condition also pre
valls on the border between Nebraska
a.r)\‘d szu andk J’n lmhmmbu
ere a map| provement ax
tendi mhmteflr from Des Moimes,
thro‘?l parts of western Wmm
tral Kansas and northern Oklahoma,
"Therx has been no panie, no pmciPL
tate decline in prices, no sudden fal ng
off in the volume of business,’ says Ar‘jh
er Wall Douglas, under whose direction
the map has Leen 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 flour scanning of the
future, The past two months have been
a 4 most unique testimony to the common
sense and cool-headedness of the na
tion. Kspeeclally is this true because no
;)no deludes hin;'nelf u‘to the future and
ts portentous happenings.
In all sections yrom tg: 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
he-gnmh‘\; of a far-reaching readjust
ment, et withal, there is an equal con
sclousness that higher prices, though not
so high as during the war, will probably
be our portion for some indefinite period
and naturally they will be m-vompanled
by a higher scale of wages and salaries
than prevailed 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 purrhanlnxo})ownr.
and consequent employment the
many, than upon any other one factor.
"Nrorchnnm-o stocks in the hands of
dealers, wholesale and retail, are normal
on the whole, thouTh 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 essentinls and nonessentials
seems largely forgotten.
“It Is noteworthy that the wnenl at
titude and action are everywhere alike;
cautious buving for immediate neoll
only, careful merchandising, eclose col
}aotlons. and few commitments for the
uture.
“Uncertainty relgns tm much of the
cotton helt because the farmers are de
termlnndf_v holding their eotton—and
they still have mueh unsold——for higher
rrlm and are tl{ disturbed over
he recent severe 3.0 ine. Both facts
and staistics seem against the farmer,
but the future of cotton'?rlen is always
an interesting gamble th fate.
In southeastern New Mexico, the
greater part of Texas, and portions of
northern Montana and North Dakota,
there is but little doing nor will there
be, until a new crop furnishes the neces
sary means for bu{ln( and selling.
“There is a rift In the clonds, how
ever, In west Texas, around Burk
burnett, Ranger and Dublin, because
of oil discoveries with much dr“nn’
and prospecting and a sudden inrush o
-kgxpulntlon hoping to get rich over
n .
“There s growhng ?e in getting
goods, and not s much of a seller's
markte as during the war.
“Because of cancellation of Gover‘;
ment contracts and shutting down
Government works, labor i not so well
emploved, not so peripatetic, and of
better calbre and efficlency. The in
dustrial centers show but small effects
of the loss of Government mntmgtn as
most manufacturers are still far hehind
on old orders from domestic business
Cancellations of orders are compara
tively few,
“Oreat stimulus wae given the holiday
trade hy the coming of peace, and the
buying of luxuries and expensive arti
cles of mere ornamentation was most
marked,
“Conl mining has suddenly shifted
from a shortage to a surplus, and in a
number of sections mines are curtailing
operations becauge of lack of orders,
. ““T'he winter wheat :flanunu is about
50000000 acres, and its genern! condi
tion has not been equaled in late vears
save in 1915, The greatest Increase in
acreage e from Ohlo westward to Kan
sas and Oklahoma, especially In the Int.
ter States, Kven out in thirsty Arizona
they ngeo( to ralse 1,000,000 bushels of
wheat this coming harvest, where not so |
long ago only the hostile and forbidding
desert held sway, ‘
“In spite of all the premsing and im
lmmflnto food problems acrose the wa- |
ter. thera dous not seam amy reason why
the next slx months should pot bring an
anpreciable decfine In the price of food
products. Both wheat and hogs are
"nmflmd at their present figures onty
3 :tvmnmm regulation.
“The recent official esttmate W the
:’dg g’mmfllfl‘lnmhn«‘;fl
t best n o Rfifllfl!l. e
greatly reduced e:amato tween No-
Tohe t:n:a“ a =& Tt
o o a one. an am
age done In Tolv and :mn,mm A beo
Inted consfderation of what had alrendy
been firured by the trade In thelr own
ammnn’ on September 1. Moreover
the official method of a mathematieal
equation, Aiffers Inherently from the
bert nrivate svatem, which I that of
comparisan with the vieMs of the pre
vious vear. Resides, the censs returns
from cron vields and the official est!-
mates for the census years show most
gtartting dlscrepancies
“One of the most significant features
Ig the general reltnf at the expirmtion of
eantrol and resulation In manv Mnee
For in truth the commercial world in
wary of artificlal restraint, now that the
necessity for It no lonwer exists and s
eager for return to the naturm! laws of
cupply and demand. and that comnpett.
tion and Individual Inftiative which
made America and ninced her In the
forefront of the nations ‘
an amount
(LIRS gy o et
being $345, 449,200, wlnn approximate
"&"“‘"“fi.‘. faling due_is the
ue
New Ym.' Haven and Hartford
one-year 6 cent notes for $46,984,000,
due Wfl {M present this loan, the
first direct n made by the railroad
administration, is held by the Gowvern
ment. At the time it was made the
railroad thvo the com
pany an option to ex t for another
year at the same rate of interest. It is|
quite probable that the company will
take advantage of this privilege when
the notes mature.
B, & O. Issues Large.
Baltimore and Ohio Railroad wil h?ve
an unnvs‘fin!’ ln.?‘ amount of maturities
to %g e for during the ooml:‘ year,
$33,500,000, the bil,ut item of ich is
the 6 per cent four-month extended
notes for §522,500,000, due February 1.
Other Baltimore and Ohio maturities are
as follows:
Eq. Tr. B. & O. 4%5, $1,000,000, due‘
February 1. .
AE?]' ‘TrA B. & 0. #%s, $500.000, dnei
pr s
MEq.‘ Tr. B. & O 4%s $500,000, rue
ay 1. !
By.&o.potuScr.B 5 per cent,
$7,500,000, due July 1. " ‘
$25,000,000 Southern l{ ‘
Southern Rallway has an important
maturity {nmn%m;iue 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, particularty
in the last two years. [ts stmnff finan
cial position has been reflectedfl in the
market &flce of its bonds, which are
selling mparatively high. It is not
ex?)ected that the company will find any
difficulty in floating & long-term loan
;llth which to refund the notes coming
ue.
Another lntematlniltem that will have
to be taken care of April 1 is Erie Rail
road's Slfi.wo.o%two-yeu 5 per cent se
cured notes, ese notes are secured
?,! collateral consisting of
rie R. R. Cons. Gen Ldien
48, 1098 .....ocoooioooooo 000 800000000
Erie R. R. Gen. Conv. "D"
B AR 2essisssnseresimnsiss RO
Columbue and Erle R. R. §
T DI TR BRS¢ couesronive oo 200 000
i $26,789,000.
U.S.Can Win Geramny’s
| .
Trade in Central America
NEW YORK, Jan. 26.-The United
States s the logical successor of Germany
in the commercial field of Central Ameri
ca, according to Dr. J. P. Henderson, a
scientist who has lived and traveled wide-
Iy in the countries adjoining the Isthmus
of Panamm.
Dr. Henderson, before leaving Jfor
Guatemala to bring up to date his infore
mation on trade possibilities, said
“The Germans had carried their policy
of peaceful penetration no farther in any
locality than in Central America They
had intermarried with the population and
had a firm hold on the import business of
the five countries,
“Thelr pugpose undoubtedly was to make
& great German colony out of Nicaragua,
Balvador, Costa Rica, Guatemala and
Honduras. The natives, however, knew
this, and eertain factions in all the coun
tries were always hostilé to them.
“Sinee the war brought to light many
underhanded instances of German treach
ery, Latin-American sentiment has been
S 0 aroused against the Teutons that they
will mever 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 them wsalt, coment, ma
chinery, agricultural implements, vehicles
and manufactured articles and buy frem
them pulp wood, seventy-two kinds of
timber, drugs, hides, broom corn, fruit,
lead, eopper, iron, manganese and num
berless raw materials.”
>
Case Thrashing Year
Best in Its History
The forthcoming annual report of the
J. 1. Case Threshing Machine Company for
the fiscal year ended December 31, 1018,
will show that the company had the best
yoar in its history. flur sales for the
yeur were well above $26.000.000 ocom
‘hmd with $17,667,764 in 1917 and $13,-
47,267 in 1916,
This is directlty due to tko Intensive
production of foodstuffs y farmers
throughout this country, Canada and South
America, which resulted in largely in
creased demand for all kinds of agrieul
turnd implements and tractors,
The report will show that during the
yoar the company reduced its ma& in
debted ness (0.3:.206 000. 'This compares
with bonded indebtedness on Debember 31,
1817, of $6.012.000
Ny,
"85 e
DIAMONDS
Davenport Says Purchases Abroad
Should Be Routed Direct
to Our Ports.
CHICAGO, Jan. 25.—T0 get foreign
trade the Unfited States must buy
abroad and route ts purchases direct
from the producer to our ports, in
stead of paying tribute to some Ru
ropean shipping Mterest, according
to H. F. Davenport, secretary of the
Brunswick - Balke-Collender Company
and authority om ton:&: trade mat
ters.
“Every American who har.vhnedl
the great exposition of wo raw
materials on the Liverpool docks and
the East Indla Company's wharves
on the Thames in England knows why
English manufactures control the
world’s foreign trade™ Mr. Dawen
port said yesterday.
England the Middleman.
“The Liverpool docks are seven
miles long on the river front and
there is perhaps a unrile 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 recefving factory products.
“One can see here more plantation
products, hides, tallow, crude rubber,
dyewoods, teas, coffee, amber, fancy
woods.dn greater quantity and variety
than at any other place on earth.
“Ask where this vuo:ngunflw of
material comes from where it
goes and the office managers wili tell
you perhaps M per cent of #t iz used
by factories in England and many
‘thousands of tons originating in Osn
tral or South America will again
cross the ocean to the United States
or some other hm comntry. Eng
'land is the broker, middleman and
tariff collector.
“But the real feature of the British
trade plan which Interests the Amer
lcan manufacturer is that the ships
‘which bring these 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.
| “Some small part may be from the
mills of the continent, but even this
has passed through the warehouses
at Liverpool, the East India docks or
Southampton and paid tribute to the
Britsh brokers or middemen.
Key to Foreign Commerce.
“This system, coupléd with Eng
land's Board of Trade, foreign com
merce bank, commerotal elub and
Consular service, all interlocking and
working in perfect harmony, supply
the key to England’'s foreign com
merce control that Germany tried for
years to break with cheap prices, en
slaved labor and subsidized shipping
marine,
. “That is the story of the Ms( ware
‘houses on the Liverpool docks. Its
}menase to the manufacturers of the
'United States is: Send your buyers
{0 South America and the Orient. Let
them do the pioneer work and blaze
the way for your salesmen.
~ "When you sell goods for export
and find you can not make delivery
on time because of no direct trans
portation facilities you are quite like
1y to discover you have wasted time
and money and have created a bad
impression with the buyer, which
means another boost for our Huro
pean com&mon.
nd Buyers First.
“Let our buyers turn the tide of
trade toward our North American
ports. Induce our importers of fancy
wcod logs, veneers, d;,r:ctlx,flh. ete., to
divert their orders fro verpool di
rect to the lhlvph? port.
“The producer will find a ship to
deliver the goeds at American ports
without twice crossing 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
ers were outlined yesterday by the
foreign trade subcommittee of the
Illinois Manufacturers' Assoctation.
Formal recommendation that trade
service bureaus be established by the
association in New York City, New
Orieans and San Francisco was made
by the subcommittee. Ratification of
the recommendation by the main
committee is regarded as a certainty.
The bureaus will render to 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 once 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 discriminate against
inland manufacturers in favor of
tidewater interests.
One mdependent iron and steel producer
with large ingot capacity n‘rofln "t was
Aifficult to serape together orders to main
tain redunced operations current week. De.
#pite this situation this manufacturer does
not forecast any recesgion n prices to
stimulate buying. Steel manufacturers are
reporting labor is becoming more efficient
Understanding in some uumrl W total
rallroad tonnage s now ahout 60 per cent
of what it was at high tide,
City Chamberlain Johnson
Becomes Wall St. Notable
Financial Analyst Saves New York $150,000 o
Interest Charges Yearly by Careful Plac- _,
ing of Bank Account. 4
NEW YORK, Jam 25.—With the
retirement of Alfred J. Johnson from
the office of Chamberiain of 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 Daniel
G. Reid. It is said of him that he can
take a bank statement, an industrial
or a rattroad 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 were
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 currant 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 formerty the av
erage recetved was only 2 1-4 per
cent, it is now 2 3-4)., On the twen
ty+ftve to thirty millions of city
money that is constantly passing and
}mpuslng through the banks this
‘means that Mr. Johnson made for the
city in that ome item alome ten times
}th. salary he recetved. He intro
idued other methods of great value
to the city, so that he leaves the ad
‘mllistnuou with the cordial good
will and gratitude of Mayor Hylan.
To such an extent was his finan
cial efficiency recogmized by the
banking world at large that after it
‘was known he would veturn to pri
‘vm life, Governor Smith prevailed
upon him to acecept an appointment
as a member of the Reconstruction
Commission, which will have charge
of the outlining of a legisiative pro
gram to adjust the State of New
York to the new conditions arising
out of the war. This commiesion will
be made up of recognized experts in
all lines—financtal, labor, social, agri
cultural, health and other elements
affecting the public weifare. Mem
bership on this committee will be the
highest honor Governor Smith ecan
confer upon citizens of the State be-‘1
cause of the very important gues-.
tions the commission wiil have to de
cide and because its decisions will af
fect the whole future of the people.
The firm of Anderson, Bruns & Co.
is a conservative brokerage house do
ing a high-class business very largely
of a confidential nature. It is one of
those houses to which a large in
vestor, wishing to pick up a line of
securities, will give an order to buyva
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 C. Bruns, both mem
‘bers of the* New York Stock Ex-
Publishers Press
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THE PUBLISHERS PRESS
4. EDWIN KERR, Propristor 30-32 dncoss S .
ALFRED J. JOHNSON,
Former Citay Chamberiain. of
York.
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———————————————————————
change, and William L. Freufenstein
the office partner, are all within ¢
few months of the same age, abouf
49. Mr. Anderson has been in Wall
Street since 1886 and became a mems
ber of the Exchange in 1901, He was
formerly with Sharp & Bryan. Mn
Bruns became a member of the Ex»
change in 1891, where his fathen
Philip Bruns, was also a member and
one of the recognized Rockefeller
brokers. Although there are 1,300
brokers on the Exchange, there are
only about 100 left of those who wert
members when Mr. Bruns joined ft 2§
years ago. This is interesting as
showing the rapidity with which
memberships change. In his earles
years Mr. Bruns was with Seneca I
Brown, as member of the firm of
Brown, Bruns & Co. Mr. Freudene
stein was also with that firm.
Decision of Mr. Johnson to become
an active broker is due to his belles
that the United States is at the
threshold of a new era of finance
growing out of America’s remarkabdle
new power as a world factor,