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Form F. R. 131

BOARD OF GOVERNORS
OF THE
FEDERAL. RESERVE SYSTEM

Office Correspondence
To

Chairman Eccles

prom

Lauchlin Currle
^

.

Date

October 6, 1956.

Subject:
« ro

I think you will find the attached interesting and significant.
I saw another note in the Wall Street Journal to the effect that the
Caterpillar Tractor Company is considering paying the dividend in
preferred stock, which would be considered taxable income of the
recipients and yet permit the company to retain earnings for expansion,
lou probably noticed that Hoover has joined Landon in asking for a
repeal of the tax. I saw Leon Henderson the other day and gave him
some material from which he can prepare a speech for the tax.




ia-r-852

This file contained a transcript of a copyright-protected article that has been removed.
The citation for the original is:
Wall Street Journal, “Investors Trust Head Finds a Solution to Profits Tax Dilemma: Merrill
Griswold Says Many Companies Can Retain Excess Earnings Through Subscription
Rights,” October 2, 1936, p. 11.