The Courier News from Blytheville, Arkansas on December 12, 1951 · Page 11
Get access to this page with a Free Trial
Click to view larger version

The Courier News from Blytheville, Arkansas · Page 11

Publication:
Location:
Blytheville, Arkansas
Issue Date:
Wednesday, December 12, 1951
Page:
Page 11
Cancel
Start Free Trial

Page 11 article text (OCR)

AT, DECEMBER II, BLYTHETILLB (ARK.) COTTRTER NEWS PAGE ELBTEH Banks Wonder If Their Tax Deal Is Fair Bp BAM DAWSON NZW TORK, Dec. 12. W—Taxes ii« top news just now. And, like mot othtr taxpayer!, the banks are wondtrtnc If they're getting as fall; a deal on taxet as some others are. To find out, they're conducting their own examination ol their [or relief. Minings and the effect of taxation upon their capital structure. All businesses, and all individuals, may learn something from the results. Taxes—when they reach the U.S. Treasury — support governmental functions. But many businessmen, and bankers, contend that if the ^ rates are too high they may end by killing the goose that lays the Treasury's golden eggs- The federal reserve board is poll- Ing" l.WO representative commercial banks throughout the nation "to obtain factual data for studying the effect of taxation on the ability of banks to Improve their capital positions out of earnings and to at< tract new capital." Capital Scared Away Bankers contend that the excess profits tax bears so heavily upon bantu that fresh capital is being scared away, that surplus funds aren't being built up at the rate that Increased deposits and loans make prudent, and that some other industries get more favorable tax treatment. The American Bankers Association tays: "Bank shares in most cases selling at a substantial discount from the real book value because earnings are not comparable with these In other lines of business. Nevertheless, many such banks, both large and small, iind themselves subject to excess profits tax." i Earnings Determined * ^> This come* about because most "banks, use invested capital as the ba«is of determining normal earnings, with anything above that subject to excess profits ta xbite. Bankers point out that in drafting of the present excess profits tax, utilities were allowed to consider earnings up Lo six per cent of Invested capital as normal before being subject to EPT. Railroads can call seven per cent normal earnings, before EPT applies. But bankers say that banks with! capital investment above $10 million can earn less than four per cent before being subject to EPT; while even banks with less than S3 million invested capital must pay JEPT after making 5*i per cent. Bankl Make More Profit Like many other industries, the bank* have been making larger profits before taxes, in dollar volume, than formerly. Their total deposits have been swelled by the general Inflation. The totaJ ol their Joans to business is at a record high. Aft*r taxes, however, net earnings shrink so much—bankers claim—that Investors can't see Ihelr stocks as a buy, with many Industrial shares yielding BO much more. If the survey shows that high .axes are cutting into the growth of the capital structure, the data will be presented to Congress in a plea Every one, of course, thinks he pays too much in^xes, But if the banks prove that high taxes are hurting their financial structur*. by stunting Its growth (as some My taxes do with other businesses) It might affect congressional thinking on the whole tax policy. i i ALL THE COMFORTS—It looks like a soft life for G.I.'s of the 28th Infantry Division ot their new station in Goeppingen, Germany. The Yanks, recently arrived in Europe, are seen unloading overstuffed furniture from a truck at their new permanent quarters. SURE TO SCORE WITH HIM From Hi/g/ies' £xc/i/s/Ve L/nes White House Objects to Float Of Truman Playing His Piano Yout/i/uf Heroine ANSONVTLLE, Ont. (AP) — Rose Lariviere, 11. saved the life of her 0-year-old friend. Ronald Filiatrault when he fell through the ice Into a pool of water. Rose dragged him out and with other children wrapped him up warmly. Read Courier News Classified Ads WASHINGTON, Dec. 12. (#)—The White House thinks it would be 'very bad taste" for the Pasadena Tournament ol Roses Lo have a float showing President Truman playing the piano and "burlesquing mink coats and deep freezes." The idea for the parade entry was advanced by the Junior Chamber of Commerce of Temple City. Calif. Charles Morse, president of the group, telegraphed the White House about the plan and asked lor Mr. Truman's reaction. Presidential Secretary Joseph Short yesterday made public Morse's telegram and Short's reply. Short wrote: "In reply ; to your telegram of December seventh, fr is suggested that most people vieVing a float such a 3 proposed in you r wir e would consider it in very bad taste." /Morse's telegram had said: "Please advise whether President Truman would have any objection to the entry of a float in the Pasadena Tournament of Rpses parade depicting his dreaming of the Presidency of the United States when a Kansas City merchant and in later showing White House scene as President playing the piano and burlesquing mink coats and deep freezes, We intend this as good humor illustrations of this years parade theme dream of the future. Request immediate answer, 1 ' Short told reporters In response to questions that the White House certainly Ls in no position either to deny or give permission for floats in such a parade. N6VER FAILS AlWAVS DELICIOUS AT youR GROCER'S I Sunny Brook • B n 111 n Timely Clothes Stylemart Clothes Botany Clothes Enro Shirts Arrow Shirts Wilson Bros. Shirts Superba Neckwear Countess Mara Neckwear Holeproof Hosiery Arrow Sportswear Enro Sportswear Botany Robes Hickok Belts Nunn Bush Shoes Dobbs Hats Hickok Jewelry Alligator Rainwear Pendleton Sportswear Edgerton Shoes Champ Slacks Arrow Neckwear 1 R. D. HUGHES CO 8K JS5 S3.

Get full access with a Free Trial

Start Free Trial

What members have found on this page