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WEDNESDAY, DECEMBER 7, 19-19 fAKK.y COURIER NEWS Investors Show Reluctance To Take Business Risks and Lawmakers Become Curious : / By Sam Bauson NEW YORK, Dec. 2. Ml— There seems to be something about a business risk these days that makes It poison to many Americans. Brokers have been batting their brains out over that one for some time, and now even congressmen arc gelling curious: Why arc Americans! with record savings piling up, putting their money into almost everything but business Investments? A Senate-House Economic Subcommittee has opened hearings on possible reasons. The Investment Bankers Association, meeting In Hollywood, Pla., is (aking stock of the situation. 1 The congressional subcommittee is* likely to hear testimony from finan- - ciers pointing up some of the things y tnlnk government Is doing h hobble stock sales— the rules red tape concerning selling securities. as well as the increasing regulation ol business which gives and about six million Americans own some corporate stock or stocks. Sales have picked up this year over last. In the 11 months of 1943 so far, corporations have sold 198 new issues of common stock for $573,.„„,,., ,, . - --- ----some Investors the idea that the • °°' U'c-investmen! dealers Di- govcrnmem isn't anxious for busl- ' gest reports. In all of 1018 they sold 245 issues for $497,973.000. But back ..... ness to prosper for the stockholders benefit. The committee might even hear some present stockholders who srumble about the small dividends sc ri reap some companies have paid. "Why risk money," they ask, "if you don't big gains when ' you times sjood?" Such stinginess, they contend, doesn't boost slock sales. Inrrslors Take All the Risk And the committee might hear from many who believe that tax Policies have made the risk a one- way proposition. The investor takes all the risk. IJ the business flops, he loses his money. If it prospers, federal, state and local governments dip their fingers deeper and deeper Into the till. The Incentives for investing appear to grow ever slimmer. Against this the New York Stock Exchange, has been waging battle. II* president ,Emil Schrain. before hU Illness was stumping the land trying to sell Investors on the Idea of buying common stocks, many of u-hicb offer attractive yields on the money it takes to buy them on his exchange. As the nation's industries grow. American business will have "a larger pie" which Schram says should be "distributed more widely." (J| He champions stockholders who ^cmplain about double taxation of dividends—first the income tax on corporation earnings from which dividends spring, a nd then the income tax on individuals receiving the dividends. Schram has urged Congress to allow "Individuals to take a credit equal to 10 per cent of their dividends on common stocks when computing their income tax liability." t Taxes Take Store Profits The federal government Isn't alone in this. States are taking an ever greater toll on business. In the 19M fiscal year.states got more than SOW million from. • corporation income taxes, the National Industrial Conference board reports. This was 326 per cent more than in 1940, al- through, of course, there was considerably more corporate income on which to levy ti tax this year than before the war. The Federal Reserve Board says in 1920 common stock sales almost reached $•!!/. billion. And this year the public has a larger income available for investment. What has scared the public off? First of all, of course, was 1939 itself. Many people still remember the stock market collapse. Another thing is the current concentration on security. People buy insurance, annuities, government bonds, and deposit in Insured banks. They also prefer corporate bonds with fixed return to taking the risk of getting dividends on common stock. So far this year they've bought 214 new corporate bond issues for $2,017,581.000. And last year they bought 238 Issues for $2,832,451,900. Whisky Goes Begging In Bootlegging Case WASHINGTON, (/P) — Policeman Bernard W. Best was testifying in a bootlegging case. Defense counsel "NICE WORK, OL 1 SOCK"•Joseph Dolinaj at Dunnellen, N. I., crochets as usual after winning flrst prize in the "Men Only" division of a national crocheting contest in Chicago DolinaJ, a railroad signal tower- man, took up needlework flvf years ago after betting his wife 35 be could beal her at the art challenged his ability to recognize .'.'hisky. He asked Best lo take a drink out of a bottle of evidence and tell him whether it was bourbon or rye. "I can't," replied Best. "I'm on duty and regulations prohibit a policeman from drinking on duty." "That's right," chimed In Ji'dge Nadinc Gallagher, "a::d besides. 1 don't want anyone drinking In m court." -FOR SALE- This luxury brick home in an excellent location is for sale only because the owner is leaving town aud can't Inke if with him. 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