The Mason City Globe-Gazette from Mason City, Iowa on February 24, 1954 · Page 6
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February 24, 1954

The Mason City Globe-Gazette from Mason City, Iowa · Page 6

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Mason City, Iowa
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Wednesday, February 24, 1954
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F«b. 14, 1954 Cil r GI»fc«.G»»«M«, M.,0,1 CHy, I. GOP O/f/c/o/s Soy Bus/ness to Spend More \ By DAYTON MOORE / WASHINGTON (l|P) - Administration officials believe that business will spend inore money for new plants and machinery--and thereby create more jobs--if the tax rules governing depreciation are liberalized. Depreciation rarely II ever figures in the income lax calculations - of the average individual. But it is a vital matter to,business. [ Suppose a manufacturer builds : , a one-millidn-dollar plant that is ;. estimated to have a uscCul life of i 25 years. Under present law, the ' company can claim only 1-25 of this outlay--or $40,000--as part of its 1 cost of doing business during the . y e a r lhat the^ plant was built. The next year, and every year ' thereafter ipr the 25 years it can "write off" another $40,000 of the i plant's cost by claiming it as a ·deduction on its tax return. This ; is a tax deduction for depreciation. . , Set- of Rules President Eisenhower has pro; posed--and the House Ways and .i Means Committee has written into; ; the pending tax revision law--a net! set of rules under which a firm' : could' write off two-thirds of the ;' cost of. new plants and equipment in one-half of their estimated use': ful.life. ': · Thus, if a firm invested ?100,000 ; this year in new machinery estimated to be good for 10 ye'ars, it : could write off $20,000 the first year, $16,000 the second year, 512,800 the thii 1 year, $10,240 the i fourth and $8,192 the fifth--a total of $67,232 for the first half of the equipment's estimated life. Administration officials m a k e these arguments for the new sys- , tern: , 1. It would not be a tax "gift" ; to business. The new rules would . apply only to future expansion. To '.- take advantage of them, a firm would have to lay out its own money on job-creating production facilities. Discourge Expansion 2. The present rules discourage expansion. Costly equipment, which : may theoretically have a useful life of 25 years, can be outmoded ; by new processes or changed mar; ket conditions in a much shorter time. But under present law, if| : the Vile of the new equipment is I originally estimated at 25 years, .that rate of depreciation has to be - used for tax purposes lor the entire ; 25 years regardless of .the,fact thai ; the equipment may become obso- · lescent. : 3. Some investors are holding ! back decause they think taxes will : be cut in future years. That con' sideration would be offset by the ; new depreciation rules, under which deductions would be greater ; --and corporate taxes therefore ;: smaller--for companies that ex- '.pand in the immediate future. Some Democrats contend that it (is not necessary, in the present economic situation, to give busi- i ness tax incentives to step up pro,: duction. The important thing, they ; contend, is to stimulate purchasing ; power so manufacturers can sell the goods they already are pro-' . ducing. ' Raise Tax Exemption : They believe that can best be , done by raising the personal in- Girl Designs Sports Car How? How Come? Let Her Tell You By ELIZABETH TOOMEY NEW YORK (UP) -- The first American girl to design a foreign sports car finds she is spending more time explaining her career than her car. Questions fall-into two categories, depending on whether the questioner is a man or a woman. How?" women ask admiringly when they hear that Dorothy Deen, a pretty, 32-year-old silver'blonde, invaded a man's field. How come?" ask the men, PLACE FOR A HONEYMOON?-Ice clogged Niagara 'falls makes a cold but scenic view m this photo made from a Bell helicopter. More than 35,000 persons oame -to sec the sights one recent Sunday. Cave of the Winds (right) is a mass of ice. come tax exemption from $000 to $700 a year, and thereby giving the low and middle income groups more money to spend. i There also is political dispute over the cost of the revised depreciation rules. The Ways ami Means Committee staff estimates the revenue loss would be 375- million dollars during the next fiscal year. Some Democrats con- 1 tend it would cosl the Treasury '· billion dollars a year by the t; n, i . , ii ' , . v-wijumjiuo, u. un -- vernon \v hme the plan was in full operation. Miller] 70 has buiu a scale mode MODEL C O M P L E T E COLUMBUS, 0. UP) -- Vernon \V Ecpublicans counter that a large part of the revenue lost in the first few years would be made up later when depreciation allowances dropped. Democrats argue that firms will replace equipment when it is only half worn out, in order to keep tax deductions high. of the log cabin in which he was born. He furnished it completely, including a miniature cook stove, water bucket and dipper, muzzle- loading rifle, a Bible and a bed with quilted coverlet. For visitors he often lights a fire in the fireplace. sometimes with a shade of resentment. "You have to go back about 10 years to get the answer to the first question," explained the designer, with a dimpled smile. She came here from California last week for her car's debut at the International Motor Sports Show. "She gets more attention than the car." said one show official. "People stare at her before they even bother to look at her car." Feminine Eye Appeal "The reason I designed the car," said Miss Deen, who ignores the personal attention she is getting and lufns conversations neatly back to the car, "is that sports cars on the market have loo little eye appeal for women. 1 thought! they 'rjad too few interior comforl features too. "You know, men haven't thoughl of everything," she c o n c l u d e d sharply : i n ' a n s w e r to the "how come?" questioners. "As to how T got a chance," she continued, "Ihat goes back to the model airplane engines m.\ father and I manufactured jusl after the war. He's a mechanical engineer and owns a machine part, factory. He. put me in charge of the model airplane engine division." That manufacturing experience, plus an interest in sports cars, go 1 Dorothy into a new, business'known for a while as "Dorothy's Acces sories'I" . :;:;. ' . . , l :"'.. : ' . ;,"·: ·: '·· :. ; "Sounds pretty feminine, doesn' it?" she asked and laughed. "The accessories were things like trunk racks and exhaust extensions foi sports cars." Idea Followed The idea for a woman-desigiiec sports car followed. Detroit m a n ufacturers listened politely and said they weren't interested. "Through my f a t h e r , I got a ASK RAY SENEY 19 EAST STATE thnnce to meet the head o£ the Swallow Coach Building Company in England--and he was interested," the shapely designer said. "He agreed lo make a car u s i n g - m y ideas and name it Dorelti after in more feminine vein, sho added, if wo sell a lot of curs, 1 mny buy a miuk coat." me.' After much shipping back and forth of models, they finally got a low-slung, open sports car that satisfied everybody. "It looks wonderful, inside;" Dorothy said enthusiastically. "Saddle stitching, entirely carpeted, an/1 crash padding around the cockpit." "Cockpit?",;; '.-,, "Cockpit/' she said firinlyj in the,same impatient,tone any sports car expert used on a novice. Then, Bind Criver Over to District Court ; CHARLES CITY--John Wright, 42, of the SI. Charles Hotel, was bound over, (p the grand jury here Tuesday .when lie waived a preliminary hearing in justice court on a charge-jpf operating :i motor vehicle while'intoxicated. He posted; a surety bond of $500. lie was arrested by the highway patrol early Tuesday. THE ONLY WASHER WITH TWO WASHING TUBS! Only Dexter Twin does your entire week's washing best in on« hour or less! EXCLUSIVE DOUBLE SUDSING with Dexter Twin is your guarantee of the perfect washing every time . . .the whitest, brightest you've ever seen 'without hand rubbing, soaking, or pre- treating. Dexter washes everything from the dirtiest of clothes to the daintiest fabrics. DEXTER WASHERS priced from 139.50 BOOMHOWER HARDWARE SHOCK YOUR FRIENDS TODAY They'll see you looking much lovelier than you looked yesterday '?. More'than astonishing. It's · astounding! In 20 seconds you ; appear to have suddenly grown an j entirely new and flawless skin. Lanolin Plus Liquid Make-Up , covers tlie sins of your own skin that well. And it makea you look i BO pert and vivacious because each of the five shades is a living color ihal looks alive. Also, Lanolin " f\u» Liquid Make-Up ! )e ; mako your akin softer and waoother looking. $1 plus tar. LIQUID MAKE-UP 12-14 South Federal Phone 793 for a sweetheart of a figure WEAR FAMOUS "LIFE" BRASSIERE AND "SKIPPIES" BY FORMF1T Nylon brassiere . . . stitched u n d e r c u p 50 2 Tailored-to-fit with quilted cushions for support, for young, naturally lovelier lines. White. 32-38, A lo C cups. Same styie in cotton ... US High-waist girdle or panty girdle 6 50 Nylon power net sides with rayon satin lastex split-panel front "for extra control. White, sizes S, M, L, XL. Circular stitched bandeau brassiere 2 50 Soft, fine quality broadcloth fashioned to lift, mold, correct, hold lovely lines. White, 32-38. A to C cups. Same $tyl« in nylon 3.00 Slimming girdle or panty girdle 5 00 Nylon power net sides ··; combined with . rayon satin lastex front parioli 2'A-inch non-roll top. White. Sizes S, M, L. ; Other Life br»s*iere». .1.25 fo 5.95 Other Skippits.........3.95 to 8.50 SHOP THE EASY, MODERN W A Y . . . J U S T A T A L D E N S METROPOLITAN'S ANNUAl REPORT TO POLICYHOLDERS FOR 1953 Over a Billion Dollars Paid to Poiicyholders and Beneficiaries -- the Largest Sum in the History of Insurance More benefits to more people were paid by Metropolitan in 1953 than have ever been paid by any Life insurance company in a single year. Payments to poiicyholders and beneficiaries amounted to 51,029,000,000. When it is realized that Metropolitan's benefit payments are only a portion of those of the Life insurance industry as a whole, one can readily visualize the tremendous stabilizing force that .the people of the United States and Canada have built for themselves'through Life insurance and related coverages. All in all, 1953 was an outstanding year in your Company's operations. In most respects, it was the best in Metropolitan's 86-year history. In the light of the high level of economic activity in the United Stales and Canada, and the ability of our Field organization, this is not surprising. We can take pride in reaching new heights in service to the peoples of our two countries. National Economic Conditions In retrospect, 1953 was a year of transition. Uppermost in the minds of all, but particularly those with sons of military age, was the cessation of hostilities in Kgrea. Nevertheless, we fully realize that our goal of a world at peace is far from won, and it · is incumbent upon us to continue to remain militarily strong. With Korea no longer an active military theatre, we can convert some of our industrial facilities from production of materiel for human destruction'-'to the satisfying of human wants. On the domestic from, a numfeer'of influences have been at work to materially re- duce the inflationary forces, which for so many years have been driving 'the cost of living to ever greater heights. The curtail- ! men'tol"war production, a temporary catching up with civilian demand in some areas, a determined effort to achieve a balanced budget, and a return to more orthodox management of public debt and fiscal affairs --all have played their part. We in the Life insurance business are particularly conscious of the effects of inflation, which bear so heavily on the thrifty and those dependent on fixed incomes. All efforts to control this danger should receive our fullest support. In the year ahead, business will be more competitive, but this is no cause Tor concern. Competition provides the same goods at lower prices, or better goods and services at the same price. The United States has grown to its present outstanding position on the basis ofcompetition in a free market. We are passing through a readjustment period, and have been for a number of , months, but fundamentally this country is strong. Persona! savings in the United States are now estimated at approximately 380 billion dollars, exclusive of the holdings of corporate securities by individuals. We have, far and away, the greatest productive capacity of any country in the world. More than this, the people of this country and Canada have not lost their fundamental traits of thrift, initiative, and faith in God. Our two countries will go to much greater heights of prosperity in a peacetime economy than ever could be achieved in the midst of war. Metropolitan Highlights oF 1953 During 1953, Metropolitan's gain in Life insurance in force was substantially larger than \vascverprcviously recorded by Metropolitan or any other Life insurance company in any one year. Metropolitan's Life insurance in force, at the end of 1953, totalled .more than 556 billion. The number of people covered under all forms of Metropolitan policies reached a record high of over 37 million. The assets of the Company, which help guarantee the fulfillment of its obligations, increased by $719,000,000, and reached SI 2,312,000,000 at the close of 1953. Dividends to poiicyholders during thcyc»r reached an all-time high of 5214,829,000. The interest rate earned by Metropolitan in- v^stments, after deducting investment expenses, increased to 3.31% (compared with 3.21% for 1952), and stood at 3.09% after the Federal Income Tax. Mortality continued at a low rate. Expenses increased moderately, largely because of the increased volume of business. In citing the 1953 accomplishments, \s'a wish to pay particular tribute to the 43,000 men and women in the Metropolitan organization who have made these results possible. President For a more complete story of Metropolitan's operations during 1953, as embodied in the Annual Report to Poiicyholders, mar] the coupon below. METROPOLITAN ASSETS AND LIABILITIES-DECEMBER 31, 1953 (In accordance with the Annual Statement filed with the Insurance Department of the State of New York.) ASSETS WHICH ASSURE FULFILLMENT OF OeiOTlONS Bond* Industrial and Commercial , U. S. and Canadian Government . . . , Provincial and Municipal . Public Utility . . . ' . . Railroad , . . . . . . S4,172,794,376.37 58.437,418,065.78 172,718,060.11 . , 1,890,206,554.53 65,021,712.72 1,642,459,573.13 666,935,849.03. Slock* (Al! but 516,476.038.6! are preferred or guaranteed.) Mortgage L e a n t o n Real Estate . . . . ' . . 2,336,397,134.33 On urban properties . . . . 52,157,837.445.45 On farms 178.559,689.3* Real Estate (after decrease by adjustment ol 52,100,000 in the aggregate! , . . 443,446,660.78 Housing projects and other real ' , estate acquired for investment Properties for Company use , Acquired in satisfaction.of mortgage indebtedness (alt of which is under contract of 689,3:9,011.00 203,618,054.00 S396,0!2,2IO.M 47,979,349.96 · · - . . . (,555, 100.68 Policy Loans (made to poiicyholders on the security of their policies) . .......... 488.853,000.73 Coih anrf Bonk Depotif, ........ ,, u^.^j.yj Other As left (chiefly premium! and interest ,' ° u «'*""ng . . . . . . . . . . . . 776,698,999.17 TOTAL ASSETS T0 r MEET OHLIGATIOKS OBUCATfONS TO POLICVHOLDERS, BEHEFICIARIES, AND OTHERS Slatuiory Policy Rtservei (Tbixamounr, required by la«, together with future premiums and interest, is necessary lo assure payment offuture policy benefits.) $10,438,536,909.00 Policy Proceeds and Dividends Left with Comp a n y at Interest by beneficiaries and policyholdcrs, to be paid to them as directed at future dates. . Set diide for Dividends to Policyholdm (payable i n 1954) . . . . , . , . . Policy Claimi Currently OuUJandirta (claims in process of settlement, and estimated claims that havo no. yel been reported) 60,640,032.54 Other Policy Obligation. . . . . . . . ' . 93.674,723 78 Taxei Accrued (payable in 1954) . . . , .- . ; 51,633 831 58 Security Valuation Reserve (prescribed by the National Association of Insurance Commissioners) Conlingency Reserve for Mortgage loans . . All Other Obligations . . - ' . . , .' . " . TOTAL OBLIGATIONS . . . . . . . , ' Special Surplus Funds . . . SI 10.683,000.00 Unaislflned Surplus , . . 604.709,379.29 25,845,145.00 5,050,000.00 : 2B,213,270.94 511,596,540,987.84 . S12.31 1.933,367.13 NOTE-- Assets amounting lo 1586,852,295.40 are deposited w i t h v TOTAL SURPLUS tUNOS . . . . . . . 715,392,379.29 TOTALOBLIGATIONS AND SURPLUS FUNDS . 512.311.933,367^13 various public officials under the requirements of law or regulatory authority. : ; · · · ' , \'f'f · · : Metropolitan Life A Insurance Company A MUTUAL COMPANY) houi Office: I MADUON Avtsue, Niw Yo»x to, N.Y. MtUOPOUTAN IM BttUKANCI CO. J M*4»« AMKV*. N*w V«rt 10, M. r. Gentlemen: PIe»ie tend me, without clurp, a copy of yoor AJUHU! Report (o Policybolifen for 1953. NAMI_ ITKEtr. ctrr -tlAft.

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