PAGE SEVEN THE DETR011 JEWISH CHRONICLE IN FINANCIAL DETROIT Oo 0 0 0 WEEKLY MARKET REVIEW SUPREME COURT RULES UNITED STATES STEEL STOCK DIVIDENDS NOT Great Expansion in Physical and Fi- Furnished by Statistical Department Income Tax, TAXABLE AS INCOME nancial Condition Since Organi- of O'Hara, Ferries Co. Time, Accounts zation-Book Value of Com- 0 U National bank protection for your savings; the highest possible type of service and co-operation on emitter. clal accounts; and, If yea .; desire to send money or to business overseas, a world-wide connection that assures satisfaction; these are just a few of the advantages you gain by doing business with this bank, 0 mon Far Above Present (The following is furnished by the Price. statistical department of Otis and Nei, York, On April 1 United Company, Brokers, Majestic Building, States Stet} ill be 19 years old, hav- Detroit). 0 ing start siness April 1, 1901. With the ruling by the United States Supreme Court that stock divi- dends are not taxable as income, a new factor has been injected into the industrial field, the influence of which it is difficult to gauge accurately at 0 the present moment. I'ossibilities of o the widest scope are opened up by the decision, for the application of the 0 verdict to the future policies of in- dustrial companies is not to he dis- covered at first glance. There is more to result from the decision than the Capital and Sur. mere fact that stock dividends are not plus $7,500.000. to be taxed. The verdict, taken in 0 conjunction with the recently an- 0 I , nuanced decision dismissing the dis- 0 LI solution suit against the United CI States Steel Corporation, revives the 11 day of consolidation, and by consoli- dation it has been proved cost is lessened and efficiency raised. The reason for withholding stock dividend distributions until there was O gi a favorable decision is obvious. Since n it was held that a stock dividend was 0 0 only a subdivision of a stockholder's M121BER FEDERAL MUM BAT{ interest in a company and not an in- crease in his holdings it would have worked serious hardship on large holders of the securities of a com- pany to have had to pay out part 0=0=0=030 0= 01710=10 of their principal in taxes to the Gov- ‘ eminent. It was, therefore, useless to make such distributions which, on an unfavorable decision by the Su- preme Court, would actually have lessened an investor's holding in the Company. Herewith is a list of sonic of the larger companies whose large sur- pluses present interesting possibilities in the way of stock dividends. U 0 U U filIST,OLD DETROIT ATIONAL thiVli Bonds Bonds Dansard-Hull-Bumpus Co. Investment Bankers 47 Congress`St. W. Detroit Stocks Stocks ti PACKARD COMMON FEDERAL TRUCK PRUDDEN WHEEL REO MOTOR TIMKEN-DETROIT AXLE FORD OF CANADA PAIGE MOTOR that final decision in suit has been handed down, ice to go ahead with de- velopnit nt without fear of restraint. What the United States Steel ac- complished from the time it began business to Dec. 31, 1919, can be summarized as follows: I t earned $1,708,329,819 available for dividends, equal to $474.70'a share on preferred. There was available for the com- mon after preferred dividends $238.20 a share. After common dividends, a surplus of $756,489,219, equal to $148.81 a share on the common, remained. Before arriving at balance avail- able for dividends, Steel charged off approximately $1,400.000,000 for de- preciation, sinking funds and ordin- ary repairs. In 1844 years there was spent for new construction and acquisitions approximately $900,000,000. Excess current assets over current liabilities at close of last year (1919 estimated) was $575,000,000, a gain of $437,000,000. Total construction expenditures of $900,000,000, and gain in working capital of $575,000,000 totaled $1,475,- 000,000, equal to over $290 a share on $508,302,500 common. Depreciation, new construction and increase in working capital totaled $2,875,000.000, equal to about $566 a share on the common, or nearly $1,- 424,000 000 in excess of total stock and bonded debt of $1,451,229,769. In new construction and increased working capital Steel's total capitali- American Car & Foundry, No. of shares, zation was more than turned over. 300,000; surplus per share, $104; total our. From April I. 1901, to the close of plus, 631,304„521. American Linseed, 167,500; 1918 Steel's ingot capacity had in- 463; 110,530479. American Locomotive, 250. creased from 9,425,000 to 22,300,000 000; 187; 321,841079. Arneri.an Sugar Amerk tons, or 137%. Mining. 450,000; $47; s21,9pa,13:1. can Brake Shoe & Foundry, 46,000; 1211; Blast furnace capacity increased 19,723,000: American Woolen, 200,000; $98; from 7,440,000 to 18,400,000 tons, or 119,724,623; American Tobacco, 402,000; 147%. 1110; 144,594,333. Baldwin Locomotive, 500, Finished steel capacity grew from 000; 156; 111,332,160. Crucible Steel, 250,. 000; 135,325.593. 1153; CubanAinerican 7,440,000 to 16,200,000 tons, or 110%. Sugar, 99,695; $168; 116,828,166. Wages paid increased front $120,- E. I. DuPont de Nemours, 550,542; $116; $68,300. 528,343 in 1901 to $452,663,524 in 091. General Electric, 1,182,824; 144; 191$, or 275%. $52,250,661. General Chemical, 165,192; Gross receipts increased from $560,- 9103; $17,117,906. Goodrich, 600,000; $51; 930,619,987; Goodyear, 004,668; $101: $20,. 510,479 in 1901 to $1,744,312,163 in 717,2.51. International Paper, 200,000; 595; 1918, or 211%. 219,104,764. International Harvester, 800, To accomplish this, one might say 000; $85; 165,036,663. Lackawanna, 350,970; United States Steel must have shown $96: $33,771,260. Liggett •M yers, 214,964: a corresponding increase in preferred 667; 118,839,303. Morris & Co., 30.000; 551,523,864; National Enamel I dividend and interest charges and cap- 21,7 60 ; Stamp, 15501; $45; 17,156,523. National italization. Biscuit. 292,960: 160; $17,761,783. National But, instead, total stock and bond- Lead, 213,154: $71; 216,659,907. New York ed debt at close of 1918 were $1,451,- Air Brake, 100,000; $65; $059 5 .667. Pitis• burgh Coal, 321,692: $74; $03.520,052. Hail. 229,769, a gain of only 18%. More remarkable still, preferred way Steel Spring, 135,000; $76; 910,362,051. Republic Iron & Steel, 300,000: $113; $33,• dividend and interest obligations at 960,971. Standard Oil of Indiana. 300.000; close of 1918 were $55,941,217, an $258; 587,50905. Standard Oil of Kansas, 20,000; $214; 54,095.3:o0. Standard Oil of actual decrease of 4.7% from 1902, New York, 730.000; 1146; 1110,029034. the first full calendar year. Standard Oil of Ohio, 70,0e0; $171, $ 1 2,302,. The wonderful progress of United 181. Texas Company, 850,000: $70: $60,000,- States Steel, physically and finan- 406. United States Steel, 5,099,023; 291; cially, was accomplished through 2466.889,421. United Fruit, 508,163; $69; $35,040,154. Vs. Cc Chemical, 279,944; $87; earnings alone. There is no doubt that thousands of $24,109,203. Vacuum Oil, 150,000; $267; 940,134,239. Wilson & Company, 200,000; investors have declined to place their 105; $19,789,230. DETROIT STOCKS - Fed- money in steel for fear that the cor- eral Truck, 100000; 519,63; 11,883.863 55; poration would be forced to dissolve. Packard, 1,1 9 4093; 11650; $19,091,494; Park Now that it is no longer in danger of Davis, 473,354; 214.20; 16,720830. dissolution, the course of the stock will be followed with interest. worthy of your consideration. We will also be pleased to execute your orders in other stocks and mar- kets at all times. A. W. WALLACE & CO. Members Detroit Stock Exchange Penobscot Building Cherry 2800 liti th Activity on the Detroit Stock Ex- change has been constant, particu- larly in those securities where stock dividends are anticipated. Each of these has advanced, and it is gener- ally expected that, as the announce- ment of the intentions of the direc- tors of these companies regarding stock dividends is made, such stocks will be in strong demand. The motors have been the favorites on the local exchange during the past week, principal among these being Packard, Reo, Paige-Detroit, Ford of Canada and Federal Truck, Gladys Belle oil has also been the subject of several transactions, while the sugars, public utilities and other industrials have received a goodly share of at- tention from local investors, its plant at 485 Baker street, The shop is equipped with all mod- ern machinery and tools. Mr. Cullen already has several large contracts for work to be done by the new shop. Ile expects to specialize in building con- tractor's work additional service for which has been needed for some time past. A crew of expert workmen qualified for all sorts of blackemithing work are employed in the plant. With the coming rush of building operations due to begin as soon as the winter breaks up, demand for work "f this sort will lie extremely heavy. Firms wishing to place orders :le urg- ed 'o do so at once, If they desire them to have prompt attention. At a recent meeting of the Young Judea Literary Club the following officers were elected for the ensuing term: President, Sant Cohen; Vice- President, Sidney Berstowitz; Secre- tary, bliss Anna Maxman; Treasurer, Joe Steffan, and Sargeant-at-Arms, Mr. Abraham Illondy. The commit- tees for this term have already been appointed and are working to make it one of the most successful the or- ganization has enjoyed. At last week's meeting a resolu- tion was adopted to conduct a can,- paign for the purpose of creating new Young Judea organizations whose members should be at least 16 years of age. There are many junior clubs in the city, but the need- of older ones is growing every day since the Young Judea Literary Club is the only ore in the city. During the ne,,xt four weeks, the duration of the special campaign, members of the Young Judea Literary will address many young Jewish organizations in an at- tempt to interest and enroll them in the work. The purpose of this campaign is to get together a large representative body of Jewish young people who will he enabled to work together for the advancement of Zionistic teach- ings and ideals. The next regular meeting of the Young Judea Literary Club will be held Sunday, March 21, at the Shaarey Zedek Synagogue at 2:30 p. ni. London.-Lord Reading. who re- cently refused the appointment of British .1mbassador to the United States, is now spoken of as the . future British Ambassador to France. "The Echo de Paris," in this connection states that the appointment of Lord Reading indicates that the Embassy in I'aris is regarded as more impor- taut than the one in Washington. The Freedom of Reading was con- (erred upon the Earl of Reading last month in the Town Hall of that borough. 'Elle mayor presided and the American Ambassador was among those present. Tramtactions affecting deter- mination of the Income 777,2, and payment, final review and determination of the reporting tarts by the gov rn Men t cover a period of three years, or more. During this time the only of informa- tion is the accounting record o f the firm or individual. Completeness. order and ac- cu racy of accounts, best assured through the services of the Cer- tified Public Accountant, are t he dependable source only means of avoiding cost I y errors and litigation. Certified Public Accountants Dime Bank Bldg. Cherry 271 Woolworth Bldg., New York GOLDMAN & ULLIAN CIVIL ENGINEERS SURVEYS-Land Subdivielons, Muni- cipal %al "nth. STRUCTUR A I. DESK:NS-Plans, Es- timates, Reports, Supervision. 225 Farwell Bldg. Tel. Male 2043 Surveying within 24 hours. What have you accomplished? ---better start now!! FIRS STATE BANK OF OCTFtosT Established 1853 Lafayette and Griswold Nine Convenient Branches We Own and Otter MICHIGAN STATE TELEPHONE COMPANY First Mortgage 5% Bonds Dated February 1, 1904. Due February 1, 1924 Principal and semi-annual interest payable in New York Authorized, $10,000,000, Outstanding, $9,715,000 These bonds are secured by a ling mortgage on the entire property of the Michigan State Telephone Corn. pany, representing an investment of over $40,000,000. This Company serves the City of Detroit and other sub- stantial territory in Michigan and Is controlled by the American Telephone 6. Telegraph Company, whose l net earnings for 1919 are reported as approximately $45,000,000. CULLEN INSTALLS BLACKSMITH SHOP EARL READING SLATED To supplement Its present service, A. F. Cullen & Company has Installed FOR PARIS, IS RUMOR- a blacksmith shop ss an addition to IS SIGNALLY HONORED YOUNG JUDEA LITERARY CLUB ELECTS OFFICERS E are specialists in the above- W named stocks and believe un- dez existing conditions that they are For A tone of confidence prevails among the financial and investing circles at present. The highly favor- able factors which have brought about the turn in the market have not as yet, it is believed, been given full credence. Although the news from Europe has been disquieting, its ef- fect on local market conditions has been negligible. PRICE, 89 and interest, to yield 8.25`;, Watling, Lerchen & Co. 2' INVESTMENT BANKERS Ground Floor, Peoples State Bank Bldg., 56 Congress Street West Telephone, Cadillac 2302 Detroit Grand Rapids ,s ssiilliniginfillattillInttli1111/1110UUNMIUCI1411/1111UWIltrallallaUltlitatIONIII01111131101S11101111111111111110a1111Minitalis iast 1 MORGENTHAU PROTESTS b U. S. INDIFFERENCE TO ARMENIAN MASSACRES German Municipal Bonds 1-4 Quotations and Information Furnished n Cologne 4's Dresden 4's p. = Hamburg 4's and 41/2's a Leipsic 41/4's Munich 4's P. Philadelphia.-Henry Morgenthau, E.' former United States ambassador to P. Turkey, in an address at a mass meet- C. ing under the auspices of the near PRIVATE TELFAMAPII WIRES TO ALL :MARKETS east relief here today declared that 13 . the Turk should be driven from Eur- Main 5480 ope and urged the American people 802 Dime Bank Building B to make a strong protest against the imulacmullunocumunum.agoomonolum.untsusummuommannutimuomumnuma re4 outrages which he said have taken place and continue in the,near east. March 17th, 1920, "The British and French politicians UNSOLD ORDERS AT CLOSE OF BUSINESS ON WEDNESDAY (or selfish purposes are arranging to let the Turk remain in Constantin- 200 Auto Body, preferred 100 Michigan Smelting & Refining ople," Mr. Morgenthau declared. 10 Bankers Trust 100 Northern Engineering, common :15 Detroit & Cleveland Nay, "If the Turk is not punished I ven- 100 Packard Motor 50 Detroit Mortgage, common ture to prophecy that within three 100 Paige-Detroit, common 30 Federal Truck years the Russians will massacre 15 Paige?Detrott, preferred 14 Ford of Omuta 3.000,000 Jews, for they will argue 100 Reo Motor Car that public opinion did not protest 10 Timken•Detrolt Axle, Preferred. against massacres of 1,000,000 by the Turk. "The United States is making itself an accessory after the crime unless it Members Detroit Stock Exchange takes the stand that the Turk must be punished. Congress should act to Second Floor, Dime Bank Bldg. Cherry 829 help." M. Deakin & Co. • O'Hara, Ferriss & Co. NEW ORGANIZATION TO OBSTRUCT JEWISH TRADE WARSAW-"Dva Grosha" reports that Polish merchants have founded a new organization to oppose and obstruct Jewish trade. Its special work will be to send travelling in- structors out to the small Polish tradesmen in the provinces in order to help these better to organize their business and so to be able to compete with the Jewish merchants. OTIS & COMPANY (Members of New York, Detroit, Cleveland, Chicago Stock Exchange) ORDERS EXECUTED IN MOTOR, RAILROAD AND INDUSTRIAL STOCK ON ABOVE EXCHANGES Second Floor Majestic Bldg. CADILLAC 6502 g