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T*ea% H x IO f)l3PV \J. 31 A.RY roam f>0^0 JUN 1 4 1972 treasury department TREASURY DEPARTMENT Washington FOR IMMEDIATE RELEASE Friday, December 12, 1941 „ Press Service No. 29-0 Suspension of visiting hours by the Bureau of the Mint and the Bureau of Engraving and Printing for the duration of the war was announced today by the Treasury. The main Treasury building in Washington is also closed to visitors. Under the order the following institutions are included: Bureau of Engraving and Printing, Washington. United States Gold Depository, Fort Knox, Kentucky. United States Silver Depository, West Point, New York. United States Mints at Philadelphia, Pennsylvania; San Francisco, California; and Denver, Colorado. United States Assay Offices at New York, New York, and Seattle, Washington. Guards- formerly used to escort visitors through the buildings will be retained to augment present forces. United States soldiers and marines and local police departments are co-operating with Treasury patrols in guarding the various buildings. 1 TREASURY DEPARTMENT Washington Press Service FCffi-IMMEDIATE RELEASE, Saturday, December 13, 1941 The President today issued a general license under sections (a) of the Trading with the enemy Act permitting any transaction wh i c h the Secretary of the Treasury licenses under the freezing control orders. » With the outbreak of the present war, section 3(a) of the Trading with the enemy Act became effective. This section prohibits any person from trading with enemy unless authorized by the President. As a consequence banking and business insti tutions throughout the country refused to put through trans actions because they might involve German, Italian or Japanese interests. The Treasury Department already controls transactions involving German, Italian or Japanese interests under the freezing orders. Today*s action by the President integrates the licensing procedure under section 3(a) of the Trading with the enemy Act with that of the Treasury Department under freezing control. The new general License provides that transactions which the Secretary .nf the Treasury licenses under the freezing control orders may be effected without regard for the provisions of section 3(a) of the Trading with the enemy Act. TREASURY DEPARTMENT Washington FOR IMMEDIATE RELEASE, Saturday, December 13, 1941 Press Service The President today issued a general license under section 3(a) of the Trading with the enemy Act permitting any transac tion which the Secretary of the Treasury licenses under the freezing control orders. With the outbreak of the present war, section 3(a) of the Trading^with the enemy Act became effective. This section prohibius any person from trading with enemy unless authorized jr the President. As a consequence banking and business institutions throughout the country refused to put through transactions because they might involve German, Italian or Japanese interests. 4 td The Treasury Department a1ready controls transactions involving German, Italian or J apanese interests under the freezing orders. Today's acti on by the President integrates the licensing procedure under section 3(a) of the Trading with the enemy Act with that of the Treasury Department under freezing control. The new general license provides that transac tions which the Secretary of the Treasury lie enses under the freezing control orders may be effected without regard for the provisions of section 3(a) of the Trading with the "enemy Act. se -oOo- » W GENERAL LICENSE UNDER SECTION 3(a) «9 of th© TRADING WITH THE ENEMY ACT * By virtue of and pursuant to the authority vested in.me by sections 3 and 5 of thé Trading with the enemy Act, as amended, and by virtue of ail other authority vested in me, I, FRANFLIN I). ROOSEVELT, PRESIDENT of the UNITED STATES OF AMERICA, do prescribe the following : A general license is hereby granted I licensing any transaction or act prohibited by section 3(a) of the Trading with the enemy Act, as amended, provided, however, that such trans action or act is authorized by the Secretary of the Treasury by means of regulations, rulings, instructions, licenses or otherwise, pursuant to Executive Order No, 8389, as amended, FRANFLIN D. ROOSEVELT THE 'WHITE HOUSE December 13, 1941, Ii. Mo r genthau, Jr, Secretary of the Treasury 0 Francis Biddle Attorney General of the United States I From; LIEUT. STEPHENS For Immediate Release Secretary Morgenthau announced today that Randolph Paul, New York attorney and Sterling lecturer on taxation at Yale University School of Law, has been consulting with him and other Treasury officials as a tax adviser* He said that Mr. Paul will be appointed Tax Adviser to the Secretary with the technical status of Assistant to the Secretary to devote his full time to such work as soon as his personal affairs can be arranged/wuxl lUJiiUi. Mr. Paul, a member of the firm of Lord, Day and Lord, is a graduate of Amherst College and the New York Law School* He was admitted to the bar in New York in 1914 and in New Jersey t h e / o l l o w i n g year. ^Mr. W *- ^ Paul is tne author of three series of "Studies in Federal Taxation," published in 1937, 1938 and 1940 of "Federal Estate and Gift Taxation," soon to be 3 published by Little, Brown and Company, and is coauthor of "Law of Federal Income Taxation," published in 1934. -OoO- TREASURY DEPARTMENT Washington FOR IMMEDIATE RELEASE, Friday, December 12, 19^-1. Press Service No. 29-1 Secretary Morgenthau announced today that Randolph Paul, New York attorney and Sterling lecturer on taxation at Yale University School of Law, has been consulting with him and other Treasury officials as a tax adviser. He said that Mr, Paul will be appointed Tax Adviser to the Secretary with the technical status of Assistant to the Secretary to devote his full time to such work as soon as his personal, affairs can be arranged. Mr. Paul, a member of the firm of Lord, Day and Lord, a graduate of Amherst College and the New York Law School. is He was admitted to the bar in New York in 1914 and in New Jersey the following year. He is a Class C director of the Federal Reserve Bank of New York. Mr. Paul is the author of three series of “Studies in Federal Taxation, “ published in 1937, I 93 B and 194-0, of “Federal Estate and G-ift Taxation, " soon to be published by Little, Brown and Company, and is coauthor of “Law of Federal Income Taxation,“ published in 1 9 3 ^* - 0O 0- ) TREASURY DEPARTMENT Washington FOR IMMEDIATE RELEASE, Fxiday, December 19^1. Press Service Ho. ^ 9 1% The Treasury received on December 11, 19I+I, from the Government of Hungary, $19,656.32 in cash as a payment on account of the funded indebtedness of the Hungarian Government to the United States* Since December 15* 1937» the Hungarian Government has been making semiannual payments of $9*828.16 on account of its relief indebtedness to the United States* made, however, as of June 15, No payment ha,d been 19^1» and. the present payment of $19,656.32 represents the amount payable under this practice for June 15, 19^1 and December 15, 19^1* FOR IMMEDIATE RELEASE, Saturdayy December 13-, 1941 Press Service No. 29 - 2 The Treasury received on December 11, 1941, from the Government of Hungary, $19,656.32 in cash as a payment on account of the funded indebtedness of the Hungarian Government to the United States. Since December 15, 1937, the Hungarian Govern ment has been making semi-annual payments of $9,828.16 on account of its relief indebtedness to the United States. No payment had been made, however, as of June 15., 1941, and the ore sent oavment of $19,656.32 represents the amount payable under this TREASURY DEPARTMENT Washington FOR IMMEDIATE RELEASE, Monday, December 15 , 19^-1. Press Service No. 29-3 The Treasury Department today further relaxed to some extent and under appropriate safeguards the tight restrictions which had been placed uoon Japanese residing in this country. It will he remembered that on the outbreak of war the Treasury, as a pre cautionary measure, placed a complete stoppage on all Japanese financial and commercial transactions and took custody of many Japanese enterprises. On December 1 1 , the Treasury Issued regulations governing living expenses and wages for Japanese nationals in the United States and regulations governing Japanese nationals engaged in the production, marketing, and distributing of food and agricul tural products. The general license issued today by the Treasury unblocks the accounts of Japanese nationals who have resided continuously within the continental United States since June 17 , 19^0 and per mits business enterprises within the continental United States owned and controlled by such Japanese nationals to continue to operate, except in those cases in which Treasury representatives are maintained on the premises or an official Treasury notice is posted indicating that such premises are under Government control. It is anticipated that Treasury representatives and posted notices will be removed from the premises of many Japanese enterprises in which they are now maintained, thus allowing such enterprises to resume normal operations under such general license. It is further anticipated that special business operating licenses will be issued to many Japanese enterprises in which Treasury representa tives are continued to be maintained allowing such enterprises to operate under Government surveillance. Representatives in this country of concerné located abroad or owned and controlled by persons located abroad are excluded from the privileges of the general license. The Japanese nationals who are given the benefits of today’s license are subjected to certain reporting requirements and other restrictions which will constitute safeguards against the abuse of such benefits. 0O 0- f TREASURY DEPARTMENT Office of the Secretary December 15, 199-1. 9 GENERAL LICENSE NO. 68A UNDER EXECUTIVE ORDER NO. 8389, APRIL 10, 19^0, AS AMENDED, AND REGULATIONS ISSUED PURSUANT THERETO, RELATING- TO TRANSACTIONS IN FOREIGN EXCHANGE, ETC.*________ I (1) A general license is hereby granted: (a) Licensing as a generally licensed national any individual who is a national of Japan and who has been residing only in the continental United States at all times on and since June 17* 199-0, and (b) Licensing as a generally licensed national any partnership, association, corporation or other organization within the continental United States which is a national of Japan solely by reason of the interest therein of a person or persons licensed as generally licensed nationals pursuant to this general license, I I (2) This general license shall not be deemed to license as a generally licensed national: (a) Any individual, partnership, association, corporation or other organization on the premises of which the Treasury Department maintains a representative or guard r^r on the premises of which there is posted an official Treasury Department notice that the premises are under the control of the United States Government, or (b) Any bank, trust company, shipping, concern, steam ship agency, or insurance company, or » 5 ) * Part 131; - Sec. 5(b), 9o Stat, 1+15 and 966; Sec, 2 , 48 Stat. 1; Stat, 179» Six, Order 8389, April 10, 199-0, as amended by Ex, Order $785# J'&fr© 1^-» 19^1, Six» Order 8832» July 26, 199-1, and Ex Order 8963, December 9 , I9U1 ; Regulations, April 10, 199-0, as amended June 19-, 199-1, and July 26, 199-1. ~ 2 - (c) Any person who, on or since the effective date of the Order, has represented or acted as agent for any person located outside the continental United States or for any person owned or controlled hy persons located outside the continental United States, or (d) Any person who on or since the effective date of the Order has acted or purported to act directly or indirectly for the benefit or on behalf of any blocked country, including the government thereof, or any person who is a national of Japan by reason of any fact other than that such person has been domiciled in, or a subject or citizen of, Japan at any time on or since the effective da.te of the Order. (3) A report on the appropriate series of Form TFR-300 shall be filed with the appropriate Federal Reserve Bank within 30 days after the date hereof with respect to the property interests of every person licensed herein as a generally licensed national if the total value of the property interests to be reported is $1,000 or more. (4) Every business enterprise licensed herein a,s a generally licensed national shall a.lso file with the appropriate Federal Reserve Bank within 30 days after the date hereof an affidavit setting forth the information required by Form TFBE-l, if the total value of all property interests of such business enterprise is in excess of $5»000, (5) Banking institutions within the United States effecting payments, transfers or withdrawals in excess of $1,000 during anv month for the account of any person licensed as a generally licensed national hereunder, shall file promptly with the appropriate Federal Reserve Bank a report showing the details of such transactions. - 3 - (6) This general license shall not authorize any transaction which, directly or indirectly, substantially diminishes or imperils the assets within the continental United States of any national of Japan or otherwise prejudicially affects the financial position of such national within the continental United States. (7) As used in this general license, the term ^"business enterprise” shall mean any individual proprietorship, partnership, association, corporation or other organization engaged in commercial or other "business activities within the continental United States. S. H, Foley, Jr. Acting Secretary of the Treasury. " ' ^ ' ‘ " ■* "■' ,^ v v J ♦ See Memo to Mr. Wilson S o . 90 December 1$, 19UL. FOR IMMEDIATE RELEASE WASHINGTON, B. C. The Treasury Department today (December 15) announced plans for an organisation of RADIO MINUTE MEN In connection with the Defense Bond and Stamp campaign. The promotion, set up on a nation-wide basis, will consist of one-minute talks by RADIO iflHtfTE MEM on all Treasury Department radio programs each week, on nationally sponsored network programs and on all local radio sta tions throughout the country. The Treasury Department is asking a group of outstanding nationally known Americans to act as Minute Mm on network broadcasts. Representing the Treasury, they will speak one minute on various programs, urging the purchase of Defense Bonds and Stamps. Radio Minute Men will also be selected in each city in the country to make one minute speeches over local radio stations. They will include prominent citi zens, and representatives from all walks of life. Organisation of the local RADIO MINUTE MEM will be handled by state Defense Savings Committees throughout the country« Q0 O0 G V if* December 15, X9hX Mr. Arthur E. Wilson Chief, Division of Savings Bonds Treasury Department There is attached hereto Release Ho. 96, of which it is requested that 100 copies be mimeographed and delivered to Mr, McCarty, 608 Sloane Building. The mailing order on this release is as follows t Press Mailing U s t Mo. 1 ffroae Muring-Met Mo« a P a llji newspapers Bugene W. Sloan Executive Director Defense Savings Staff SPECIAL—RUSH Date Defense Savings Staff Newspaper release Attached .release__ 1 $ Time-------------------- Date H a r o l d N. G r a v e s For release to: See memo to Mr» Wilson December 19l|l. FOR IMMEDIATE RELEASE -IJAullfflltlTON U; 5*. y < The Treasury Department today (jlieoomtogi» Tft) announced plans for an organization of RADIO MINUTE MEN in connection with the Defense Bond and Stamp campaign. The promotion, set up on a nation-wide basis, will consist of one-minute talks by RADIO MINUTE MEN on all Treasury Department radio programs * each week, on nationally sponsored network programs and on all local radio sta tions throughout the country. The Treasury Department is asking a group of ptetsstasjae&ng nationally known Americans to act as Minute Men on network broadcasts. Representing the Treasury, they will speak one minute on various programs, urging the purchase of Defense Bonds j and Stamps. Radio_Mnute Jien will also be selected in each city in the country to make one minute speeches over local radio stations. They will include prominent citi zens, and representatives from all walks of life. Organization of the local RADIO MINUTE MEN will be handled by State Defense Savings Committees throughout the country. I OoOoO T R E A S U R Y D E P A R T M E N T WASHINGTON STAFF December 15, I9Ì4I Mr. Arthur E. Wilson Chief, Division of Savings Bonds Treasury Department There is attached hereto Release No. % > of which it is requested that 100 copies be mimeographed and delivered to Mr* McCarty, 608 Sloane Building. The mailing order on this release is as follows: Press Mailing List No. •Press '' Mailing--Lis^ t 1NovDaily Nowopapcrs rgene^w. Sloan itive Director Savings Staff TREASURY DEPARTMENT Washington FOR IMMEDIATE RELEASE, Tuesday, December l6 , 19^1. Press Service No. 29-^ The Treasury Department today announced plans for an organization of RADIO MINUTE MEN in connection with the Defense Bond and Stamp campaign. The promotion, set up on a nation-wide basis, will consist of one-minute talks by RADIO MINUTE MEN on all Treasury Department radio programs each week, on nationally ( sponsored network programs and on all local radio stations throughout the country. The Treasury Department is asking a group of nationally known Americans to act as Minute Men on network broadcasts. Representing the Treasury, they will speak one minute on various programs, urging the purchase of Defense Bonds and Stamps. RADIO MINUTE MEN will also be selected in each city in the country to make one minute speeches over local radio stations. They will include prominent citizens, and representatives from all walks of life* Organization of the local RADIO MINUTE MEN will be handled by State Defense Savings Committees throughout the country. - 0O 0— TREASURY DEPARTMENT Washington POE RELEASE, U O M i m NEWSPAPERS, Tuesday. December 16« 19AX. w Press Servies v / i i The Secretary of the Treasury announced Last evening that the tenders for 1X50,000,000, or thereabouts, of 91-day Treasury bills, to be dated December 17 1941, and to nature March 18, 1942, which were offered on Deeestoer 12, were opened at the Federal Reserve Banks on December 15* The details of this issue are as follows: Total applied for - $382,650,000 Total accepted — 150,040,000 Bangs of accepted bids: High Low Average price (Excepting two tenders totaling $80,000) - 99.950 Equivalent rate appraxlftately 0.198 percent - 99.9X9 * * 9 0.320 * - 99.925 * * * 0.295 " (50 percent of the aaount bid for at the low price was accepted) TREASURY DEPARTMENT Washington FOR RELEASE, MORNING- NEWSPAPERS, Tuesday, December l 6 , 19*HL. 12/15 A l -------- Press Service No 2Q-R 5 The Secretary of the Treasury announced last evening that the tenders for $150,000,000, or thereabouts, of 91-day Treasury bills, to be dated December 17 , 19*1-1, and to mature March IS, 19^2, which were offered on December 12 , were opened at the Federal Reserve Banks on December 15 * The details of this issue are as follows: Total applied for - $ 3S2,650,000 Total accepted - 150,040,000 Range of accepted bids: (Excepting two tenders totaling $S0,000) High - 99.950 Equivalent rate approximately 0.19 g percent Low - 99.919 " " “ 0.320 » Average Price - 99.925 “ » " O .295 " (50 percent of the amount bid for at the low price was accepted) 0O 0— TREASURY DEPARTMENT Washington (The f o l l o w i n g a d d r e s s by S E C R E T A R Y M O R G E N T H A U b e f o r e the first n a t i o n a l m e e t i n g of the D e f e n s e S a v i n g s O r g a n i z a t i o n is s c h e d u l e d to be d e l i v e r ed in C h i c a g o , Illinois, at 2 : 0 0 p.m., C e n t r a l S t a n d a r d Time, W e d n e s d a y , D e c e m b e r 17, 1941, a n d is for r e l e a s e u p o n d e l i v e r y at that t i m e . ) This n a t i o n of our s has h a d a shock, but it is w i s e r a n d s t r o n g e r for h a v i n g h a d it. E v e r y one of us must be c o n s c i o u s t o day of a c l e a r e r v i s i o n and a d e e p e r u n d e r s t a n d i n g t h a n w e ha d two w e e k s ago. The b o m b s on Pearl H a r b o r h a v e d e s t r o y e d m u c h more than w h a t the c e n s o r s w o u l d call " m i l i t a r y objectives". They have r i p p e d ou r c o m p l a c e n c y to shreds. T h e y have b l a s t e d the old c o m f o r t a b l e b e l i e f that the w i d e o c e a n s c o u l d save us f r o m harm. They have b l o w n a w a y the n o t i o n that b r u t a l i t y a n d d e c e i t a n d m u r d e r in a n o t h e r p a r t of the w o r l d c o u l d n e v e r t o u c h us in ours. We n o w know, or ou g h t to know, that this w h o l e w o r l d s t r u g g l e is our war, just as m u c h as it wa s to the p e o p l e of C h u n g k i n g or W a r s a w in 1939, or to the p e o p l e of R o t t e r d a m or L o n d o n in 1940, or to the p e o p l e of A t h e n s a n d M o s c o w in 1941. We n o w know, or ought to know, that t h e r e can be no ha l f w a y m e t h o d of f i g h t i n g an a t t e m p t to d o m i n a t e the e n t i r e earth. We n o w know, or o u g h t to know, that this total w a r will require total effort on our part, w i t h e v e r y t h i n g w e have a n d e v e r y t h i n g we are, w i t h all our r e s o u r c e s p l e d g e d to final a n d d e c i s i v e vi c t o r y . We in this room, the men a n d w o m e n wh o d i r e c t the D e f e n s e S a v i n g s O r g a n i z a t i o n in the 4S States, have b e e n w o r k i n g h a r d for m a n y m o n t h s to m o b i l i z e our financial r e s o u r c e s in the f o r m of the p e o p l e 1s savings. But we have, I think, d o n e more t h a n that. 29-6 - 2 - S ince the v e r y i n c e p t i o n of the D e f e n s e S a v i n g s pro g r a m , it has b e e n one of our m a j o r o b j e c t i v e s to g i v e - t h e A m e r i c a n p e o p l e a sense of t h e i r ow n d i r e c t a n d i n e s c a p a b l e i n v o l v e m e n t in this g r e a t b a t t l e for our wa y of life. We h a v e t r i e d to m a k e t h e m r e a l i z e that they w e r e not i s o l a t e d a n d c o u l d not be i s o l a t e d f r o m a s t r u g g l e that w o u l d shape the f u t u r e of e v e r y o n e on this planet. We have t r i e d to give the A m e r i c a n p e o p l e a g r e a t e r p r i d e in t h e i r o w n c o u n t r y a n d a g r e a t e r a w a r e n e s s of the d a n g e r s that face them. We h a v e tried to g i v e e v e r y man, w o m a n a n d c h i l d in this c o u n t r y a s e nse of d i r e c t p a r t i c i p a t i o n in its de f e n s e , a f e e l i n g that t h e r e is s o m e t h i n g for e v e r y o n e to do in a gr e a t eff o r t f r o m w h i c h e v e r y o n e will b e n e f i t in the end. f L o o k i n g b a c k ov e r the past eight months, I t hink we can all be p r o u d of w h a t has b e e n a c c o m p l i s h e d . % believe in all s i n c e r i t y that the d e v o t e d w o r k of the D e f e n s e S a v i n g s staff a n d all o u r t h o u s a n d s of v o l u n t e e r w o r k e r s t h r o u g h o u t the c o u n t r y has h e l p e d g r e a t l y to c r y s t a l l i z e A m e r i c a n o p i nion. I believe that the r e s p o n s e to the b o m b s at P e a r l H a r b o r was d e e p a n d w i d e and i m m e d i a t e p a r t l y b e c a u s e of ou r g r o u n d w o r k in the D e f e n s e S a v i n g s p r o g r a m . We h a v e g i v e n to m i l l i o n s a n e w sense of b e i n g p a r t n e r s of their G o v e r n m e n t , of h a v i n g a d i r e c t share in A m e r i c a a n d in A m e r i c a n freedoms. To me, it is a n a c h i e v e m e n t of far g r e a t e r p r o p o r t i o n s than the r a i s i n g of the more t h a n 2 b i l l i o n d o l l a r s w h i c h have ro l l e d into the T r e a s u r y s i nce the D e f e n s e B o n d s first w e n t on sale in May. N o w tha.t we have c l e a r e d the d e c k s for a c t i o n , it is u p to us to f o l l o w through, a n d that is the m a i n p u r p o s e of my b e i n g here w i t h y o u today. We must f o l l o w through, not o n l y in terras of a few - 3 - 1 i m i l l i o n i n d i v i d u a l s or a c o u p l e of b i l l i o n d o l l a r s , but by a d e t e r m i n e d ef f o r t to r e a c h e v e r y i n d i v i d u a l in this country. Fo r total w a r s are peoples* wars; a n d in this total w a r that has s p r e a d a r o u n d the globe, the b a t t l e f r o n t n o w r e a c h e s intro e v e r y f a c t o r y a n d e v e r y home. Th e r e is no e x e m p t i o n for a n y g r o u p or a n y section. The N a z i s a n d the J a p a n e s e ma k e no e x c e p tions in t h e i r c o n q uest s . The b o m b s that fell at Pearl H a r b o r w e r e a i m e d s t r a i g h t at e v ery one of us, a n d w h a t e v e r the N a z i s ma y a t t e m p t in the A t l a n t i c will be a i m e d at e v e r y one of us. We a r e all in this w a r together. ) w \ No t all of us can p i l o t a b o m b i n g p l a n e or fire a gun f r o m the d e c k of a b a t t l e s h i p . T h ose of us w h o ar e too old or too y o u n g to get into u n i f o r m will be a s k e d to w o r k l o n g e r h o u r s a n d p a y h e a v i e r ta x e s a n d do w i t h o u t m a n y of o ur a c c u s t o m e d comforts; but in this D e f e n s e S a v i n g s eff o r t we ar e not e v e n b e i n g a s k e d to give our money. We a r e dust b e i n g a s k e d to le n d our m o n e y to the Grovernraent, to inv e s t our s a v i n g s for victory . That, it s e ems to me, is a call to w h i c h e v e r y o n e will wa n t to respond. We will want to do it to the v e r y limit of our ab i l i t y . We, the people, w a n t to sh o w t h a t we a r e ready a n d e a g e r to be of some se r v i c e to our country. It has g iven me real e n c o u r a g e m e n t to b e t o l d that y o u of the D e f e n s e S a / i n g s O r g a n i z a t i o n ha v e been d i s c u s s i n g detailed plans for intensifying an d w i d e n i n g our effort, a n d that y o u h a v e shown so m u c h e n t h u s i a s m in th e s e me e t i n g s . O u r p r o blem, as y o u all know, is one of f i n a n c i n g the e n o r m o u s l y e x p a n d ing cost of the w a r w h i l e a v o i d i n g th e i m m e n s e a n d d a n g e r o u s evils of inflation. I h a v e s a i d right here in C h icago, in a t a l k to the A m e r i c a n B a n k e r s A s s o c i a t i o n , that we a r e in r e a l i t y f i g h t i n g two wars — one, the great st r u g g l e on all the c o n t i n e n t s a n d all the oceans, a n d the o t h e r the wa r a g a i n s t } an i n s i d i o u s en e m y here at home. That e n e m y is inflation. It c r e e p s u p on u s as s t e a l t h i l y as a thief in the dark. As the P r e s i d e n t h a s said, i n f l a t i o n is a f o r m of t a x a t i o n that t a kes no a c c o u n t of the a b i l i t y to p a y a n d s t r i k e s d i r e c t l y at the A m e r i c a n s t a n d a r d of life. Our ;job, t h e r e fore, is a d o u b l e one, a n d in this r e n e w e d e f f o r t to w h i c h we of the D e f e n s e S a v i n g s staff m u s t n o w d e d i c a t e ourselves, we mu s t m a k e sure that we deal e f f e c t i v e l y w i t h b o t h enemies. For that reason, it seems to me, our m a j o r effort n o w must be d i r e c t e d p a r t i c u l a r l y at t h o s e in all w a l k s of life who r e c e i v e r e g u l a r p a y f r o m w a g e s a n d salaries. I n f l a t i o n f e e d s on c u r r e n t income, r a t h e r th a n on th e m o n e y that n o w r e s t s in the v a u l t s of s a v i n g s banks. It m a y seem h e a r t l e s s to speak of e x c e s s s p e n d i n g on the p a r t of m i l l i o n s of p e o p l e in the m i d d l e a n d low i n c o m e groups; but in wartime, in the f a c e of a l i m i t e d an d d w i n d l i n g s upply of c i v i l i a n goods, t h e r e is such a thing. In wartime, e x c e s s s p e n d i n g m e a n s the b u y i n g of any c o m m o d i t y that we c a n s a f e l y do w i t h o u t . Therefore, the most e f f e c t i v e c o u r s e for us, as we h a v e k n o w n f r o m the v e r y b e g i n n i n g , has b e e n to enlist c u r r e n t income a n d to d i v e r t e x c e s s spending, to p e r s u a d e our p e o p l e to set a s i d e a p a r t of their pay e v e r y p a y day in D e f e n s e B o n d s a n d Stamps. L e t * s no w m a k e e v e r y pa y day B o n d Day. And w h e n I speak of r e g u l a r i n v e s t m e n t ■every pay day, I am s p e a k i n g not o n l y of the m i l l i o n s of f a c t o r y workers, not only of the t e a c h e r s a n d a c c o u n t a n t s , the c l e r k s a n d c ivic e m p l o y e e s w ho live on r e g u l a r salaries, but a l s o of the f a r m e r s w h o are e a r n i n g solid i n c o m e s for th e f i r s t time in m a n y y e a r s and w h o will be the fi r s t to suffer if we a l l o w i n f l a t i o n to get out of hand. - 5 « All t hese a r e the p e o p l e we m u s t reach, w i t h a d e t e r m i n e d e ffort that will have a n impact in B e r l i n a n d R o m e a n d Tokyo, an eff o r t that w i l l gi v e n e w h e a r t a n d c o u r a g e to the free p e o p l e s w h o a r e f i g h t i n g on our side e v e r y w h e r e . I have b e e n a s k e d m a n y times w h e t h e r w e h a v e a goal, a q u o t a for the U n i t e d States. I have always a v o i d e d a n s w e r i n g w i t h a m o n e y f i g u r e b e c a u s e I have b e e n m u c h m o r e i n tereste d , firstly, in r e a c h i n g vast n u m b e r s of i n d ividuals, and, secondly, in a b s o r b i n g c u r r e n t i n come r a t h e r t h a n a c c u m u l a t e d s a v i n g s in the banks. But I will tell y o u n o w what my goal is, wh a t our goal shall be a n d must be. It is to r e a c h quickly, w i t h i n the n e x t fe w months, e v e r y sin g l e r e c i p i e n t of r e g u l a r c u r r e n t income in the U n i t e d States, a n d to have ev e r y one of t h e s e 35 m i l l i o n p e o p l e s e t t i n g a s i d e some p a r t of t h e i r p a y r e g u l a r l y w i t h i n the s h o r t e s t p o s s i b l e time. A n d w h e n I say «some p a r t of their p a y , « I a m not t h i n k i n g m e r e l y of a t oken c o n t r i b u t i o n . I m e a n a real i n v e s t m e n t , the v e r y limit that ea c h p e r s o n can a f f o r d w i t h o u t a c t u a l l y t a k i n g f o o d a n d o t her n e c e s s i t i e s f r o m h i m s e l f a n d his family. W h e n this m e e t i n g ends, I hope that this o r g a n i z a t i o n will set to w o r k in e v e r y S t a t e a n d ev e r y c o m m u n i t y , t h r o u g h o u t this g r e a t front line of f r e e d o m that is the U n i t e d States, w i t h the same d e v o t i o n a n d d e t e r m i n a t i o n that is n o w b e i n g s h o w n by the m e n in our f i g h t i n g forces. I have c o m p l e t e c o n f i d e n c e in the a b i l i t y of this great group to r e a c h the goal I ha v e set for y o u today. We have b e e n m o r e th a n f o r t u n a t e in the me n a n d w o m e n w h o have r a l l i e d to ou r help since the first of May in all p a r t s of the country. It has b e e n a tr u l y t h r i l l i n g e x p e r i e n c e for me as S e c r e t a r y of the T r e a s u r y to see the s u p e r b c o o p e r a t i o n we have h a d f r o m labor a n d industry, fr o m R e p u b l i c a n s and D e m o c r a t s , f r o m f o r e i g n - b o r n a n d A m e r i c a n - b o r n , f r o m all the a s s o r t e d g r o u p s a n d n a t i o n a l i t i e s of w h i c h this u n i t e d A m e r i c a n p e o p l e is composed. I a m g e n u i n e l y g l a d to see all o u r S t a t e l e a d e r s a s s e m b l e d h e r e in one room, a n d to t h a n k t h e m a n d th e i r v o l u n t e e r h e l p e r s on b e h a l f of t h e i r G o v e r n m e n t for the w o r k they have a l r e a d y done. N o w that the g r e a t e r a n d more i n s i s t e n t call has come, we a r e ready to meet it. Our organization has b e e n set up, our p e o p l e are h a r d at work, o u r c o u n t r y k nows w h a t D e f e n s e B o n d s a r e a n d w h a t they do. It is up to e a c h a n d e v ery one of us to do our part. O u r f i g h t i n g m e n in the P h i l i p p i n e s a n d Iceland, in H a w a i i a n d W a k e a n d Midway, in all the p o s t s of d a n g e r on all the seven seas, are l o o k i n g to u s to s upply them w i t h the p l a n e s a n d g u n s they need. The w h o l e c o u n t r y is l o o k i n g to us, right here in th i s room, to raise b i l l i o n s of d o l l a r s to w i n this wa r — a n d let n o n e of o u r e n e m i e s m a k e an y m i s t a k e a b o u t it, w e are g o i n g to w i n it. O u r a l l i e s in all contin e n t s , wh o have b e e n f i g h t i n g o ur b a t t l e w i t h our c o m m o n e n e m y for long, h a r d years, are l o o k i n g to us, a n d a l s o the o p p r e s s e d p e o p l e s in the c o n q u e r e d l ands wh o are n o w l i v i n g in d a r k n e s s — they, too, are l o o k i n g to us to s w eep that d a r k n e s s away. It is by far the g r e a t e s t test a n d the g r a n d e s t o p p o r t u n i t y that has ev e r come to o u r country. We in this room must p r o v e o u r s e l v e s w o r t h y of that challenge. The w o r d s that W i n s t o n C h u r c h i l l a d d r e s s e d to his own p e o p l e a year a g o can n o w be a p p l i e d to ours: let us so b e a r o u r s e l v e s that if these U n i t e d S t a t e s s h o u l d last for a t h o u s a n d years, men w i l l still say, "This w a s their f i n e s t h o u r .n -00O 00- TREASURY DEPARTMENT / f 'Washington» Press Service POR IMMEDIATS RELEASE, Tuesday. December 16, 1941. The Secretary of the Treasury today announced the final subscription and allotment figures with respect to the current offering of 2 percent Treasury Bonds of 1951-55 and 2-1/2 percent Treasury Bonds of 1967-72. Subscriptions for »5 ,000 or less where the subscribers specified that delivery be made in registered bonds 90 days after the issue date were allotted in full, $13,800,850 for the Treasury Bonds of 1951-55, and $26,0A3,A50 for the Treasury Bonds of 1967-72. 3Eu addition-to the amount.allotted on BR pubitg-subsoriptiono for tho Treasury B m K te~of 1967-72, $103»500 lave boon allotted to. 0orernraent—investment accounts, wltldLn the $50,000,006 reservation* Subscriptions and allotments were divided among the several Federal Reserve Dis tricts and the Treasury as follows: Federal Reserve District_____ _ Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco Treasury Government Invest ment Accounts TOTAL 2-1/2* Bonds of 1967-72 Total subTotal sub scriptions scriptions allotted received 2 % Bonds of 1951-55 Total subTotal sub scriptions scriptions allotted received $ 343,340,850 2,242,647,450 272.261.950 319,816,050 164,714,650 182 ,288,250 537.042.950 114,617,300 64,802,350 84,841,550 107 ,621,250 280 ,768,550 13,135,000 t 38,273,000 248,727,950 30,835,900 35,781,950 19 ,0 63 ,1 00 20 ,6 80,300 61.489.150 13,847,400 8,332,900 10.603.150 12,257,750 31 ,363,100 1,461,400 I t 637,834,450 3,433,309,300 441,752,800 400,009,850 252,414,250 255.674.400 672,230,950 153,192,050 96,686,700 520,875,900 69,103,850 61,176,950 39,400,700 tel 39rM6i’5eO 403,897,250 / 24,673,450 / 19,642,450 / 19,475,400 / 22,989,850 51,467,900 1,035,600 122 ,166,450 118 ,588,100 148,225,550 336.961.400 6,834,400 ».limi 103.500 $4*727*898*150 $532,717*850 ¿i^évwjèeo $6,979,193,95© ® fern i Di A V (J r > y TREASURY^ DEPARTMENT Washington Press Service No. 29-7 FOR IMMEDIATE RELEASE, Tuesday, December 16, 1941. The Secretary of the Treasury today announced the final subscription and allotment figures with respect to the current offering of 2 percent Treasury Bonds of 1951-55 and 2-1/2 per cent Treasury Bonds of 1967-72. Subscriptions for $5,000 or less where the subscribers specified that delivery be made in regis tered bonds 90 days after the issue date were allotted in full, $13,800,850 for the Treasury Bonds of 1951-55, and $26,043,450 for the Treasury Bonds of 1957-72. Subscriptions and allotments were divided among the several Federal Reserve Districts and the Treasury as follows: Federal Reserve District Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco Treasury Government Investment Accounts TOTAL 2% Bonds of 1951-55 Total sub Total sub scriptions scriptions received allotted 2-l/2$ Bonds Of 1967-72 Total sub ' Total sub scriptions scriptions received allotted 5 343,340,850 2,242,647,450 272,261,950 319,816,050 164,714,650 182,288,250 537,042,950 114 ,617,300 64,802,350 84,841,550 107,621,250 280 ,768,550 13,135,000 $ 38,273,800 3 637,834,450 248,727,950 3,433,309,300 30,835,900 441,752,800 400,009,850 35,781,950 252,414,250 19,063,100 20,680,300 255,674,400 61,489,150 672,230,950 153,192,050 13,847,400 8,332,900 122 ,166,450 118 ,588,100 10 ,603,150 148,225,550 12,257,750 336,961,400 31,363,100 6,834,400 1 ,461,400 $4,727,898,150 0532,717,850 06,979,193,950 $ 96,686,700 520,875,900 69,103,850 61,176,950 39,400,700 39,173,300 103,897,250 24,673,450 19,642,450 19,475,400 22,989,850 51,467,900 1 ,035,600 103,500 11,069,702,800 'S* 4 / jt A / rffOR IMMëfflATE '"RELEASE d— A i f 4A» wuwwt A spot check of representative# banks ' “a‘ -v of the nation's key cities, made for the Treasury by £he American Bankers Association, showed Defense Bond J^ales during America's first week of war effort against the Axis powers increased 177 percent. This tromondoua-wave of Bond buying reflected itself in all sections of the nation. Motivated by Japan's attack on Pearl Harbor and by the declaration of War against the Axis,^J3ond sales were on the increase everywhere. ^Palm Beac^, Fla^ the First National Bank reported Bond sales of #£0,£50, an increase of 8,691 per cent over the worth of Bonds sold in the week before the war started. ( The Union -dU. Trust Company of Baltimore, Md., showed.war increased Bond sales there 3.L77 Dercent.. - (11 ^ i'TTir~fry~-~iy ............. , ,L ,t, i ~t -Thmri Llxninnrnt'n-fci-rrT-i-11|Trm~'~nmii~|t n .i iiy .in r I S w m B & *t ^ ----- r * è â #, / Ê é m l i tê é i A A - M ^ . Æ * Æ ê M m Æ o f mg. *■ *¿ k j ¿ 7 TREASURY DEPARTMENT Washington FDR IMMEDIATE RELEASE, Tuesday,, December 16, 19^1« Press Service No* 29~8 Sale of Defense Savings Bonds was boosted to an all-time high during the first week of war, bank figures released today by the Treasury Department revealed, A spot check of representative banks in forty-*five of the j nation1s key cities, made for the Treasury by The American Bankers Association, showed Defense Bond sales during America's first week of war effort against the Axis powers increased 177 percent. This wave of Bond buying reflected itself in all sections of the nation, Motivated by Japan's attack on Pearl Harbor and by the Declaration of War against the Axis, Defense Bond saleé were on the Increase everywhere. At Palm B.each, Florida, the First National Bank reported Bond sales of $50,550, an increase of £,691 percent over the $575 worth of Bonds sold in the week before the war started. Maryland, The Union Trust Company of Baltimore, showed the war increased Bond sales there 3*^77 percent. Six banks in Washington, D, C., reported a jump of 159 percent, with sales increasing from $ 3 6 6 , 1 7 5 to $9^9>325* In Los Angeles, the Security-First National Bank showed Bond sales increased from\ $ 3 1 6 , 0 0 0 the week before war started to $ 1 ,7 5 0 , 0 0 0 in the first six days of war, a ^5^ percent gain. Bank of Chicago, Illinois, The Harris Trust and Savings showed a 621 percent increase. there totaled $1 BL,B 2 5 for the first week of war as against $ 2 5 i6 5 0 in the preceding week. - 0O 0- Sales TREASURY DEPARTMENT Washington FOR IMMEDIATE RELEASE, Wednesday, December 17» 19^1 >- Press Service No,. 29-9 Secretary Morgenthau has appealed to American railroad work ers to invest immediately in Defense Savings Bonds the they will receive from the railroads in lump sum settlement of wage increases dating back to last September 1 . The Secretary*s appeal was made in letters to J, G-.. Luhrsen, executive secretary of the Railway Labor Executives Association, and A.. F. Whitney, president of the Brotherhood of Railroad Train men, They were written in response to Mr, Luhrsen*s telegraphed pledge to the Secretary of "unreserved support of the Victory pro gram, " and a letter from Mr, Whitney offering "all-out support" from the Trainmen,an independent organization, Mr, Luhrsen assured the Secretary that one million railroad workers included in the twenty unions affiliated with his associa tion, would invest regularly a part of their earnings, now in creased by $>300» 000 annually through the wage settlement, in Defense Savings Bonds. Leaders of the member unions "are now en gaged in formulating plans on a nation-wide basis...for the sys tematic purchase" of Defense Savings Bonds and Stamps through vol untary payroll allotment plans, Mr. Luhrsen said. To both Mr.. Luhrsen and Mr.. Whitney, whose union has about 150,000 members, the Secretary suggested that immediate investment of accrued back wages would " finance the building of a fleet of heavy bombers or a battleship. ...as a direct and effective contri bution to the victory which this nation has set itself to win." Mr.. Morgenthau also urged that every railroad worker take part in the systematic savings plan offered by voluntary payroll allotments, as the easiest method for giving "continuous support to the national war effort." Release N o . 99 Mr. Morgenthaai also urged that every railroad worker take part in the systematic savings plan offered by voluntary payroll allotments, as the easiest method for giving Continuous support to the national war effort.” SPECIAL-RUSH A p p ro v e d -------------- -------- *— ------ Time Date V i n c e n v F. C al ^^h a n Defense Savings Staff Newspaper release A tta c h e d ___ FteleasjeL_Na..--99. __ ___________ j / Fe r d i n a n d K u h n ,Jr . T im e----------------- D a te . H a r o l d N. G r a v e s r? S,-1943r Sos.-memo.-to.-Mr...-Wil&Qn For release to: 00 FOR IMMEDIATE RELEASE /i/va^UAii WASHINGTON, D. O . / ^ A bt appeal -for immediate 1investment in Befonse Savings C * ~ /^Bonds' the $757000,000 they will receive from the railroads in lump sum settlement of wage increases dating hack tofSept J C jp ^ T .f l t a - r .y M / v r r p n w » 1 . « « n - --------^ [The Secretaryls appeal was made in letters to J. G. Luhrsen, executive secretary of the Railway Labor Executives Association, and A. F. Whitney, president of the Brotherhood of Railroad Trainmen. They were written in response to Mr. Luhrsen telegraphed pledge to the Secretary of "unreserved support of the Victory program,11 an< a letter from Mr. Whitney offering Hall-out support” from the Trainmen, an independent organization. j^Mr. Luhrsen assured the Secretary that one million railroad workers included in the^SO^unions affiliated with his association, would^regu^r^y| i n v e s t part of thet earnings, now increased hy $300,000,000 annually through the wage settlement, in Defenr Savings Bonds. Leaders of the member unions "are now engaged in formulating plans on a nation-wide basis..• for the systematic purchase” of Defense Savings Bonds and Stamps through voluntary payroll allotment plans, Mr. Luhrsen said. ^ T o both Mr. Luhrsen and Mr. Whitney, whose union has about 150,000 members, the Secretary suggested that immediate investment of accrued back wages would "finance the building of a fleet of heavy bombers or a battleship... as a direct and effective contribution to the victory which this nation has set itself to win.” T R E A S U R Y D E P A R T M E N T WASHINGTON STAFF December 16, 1941 Mr. Arthur E. Wilson Chief, Division of Savings Bonds Treasury Department There is attached hereto Release No* 99, of which it is requested that 100 copies he mimeographed and delivered to Mr. McCarty, 608 Sloane Building. The mailing order on this release is as follows: Press Mailing List No. 1 Press Mailing List No. 2 Labor Lists 1A, IB, 1C SPECIAL—RUSH A p p ro v e d ------------------------------------ VlNCENTJr'. CALLAHAN. Defense Savings Staff Newspaper release Eu g e n e Attached — ------------ S w Date Time Jh v .S l o a n ty Fe r d i n a n d K u h n ,Jr . T im e----------------- Date H a r o l d N. g r a v e s 1 ° Release For release to: — December 16, 1941 FOR IMMEDIATE RELEASE WASHINGTON, D. 0# — The Authors1 League of America today notified the Treasury Department that the League has formed an Advisory Committee to cooperate in promoting the National Defense Savings Program, ^Hcjjgard Lindsay, League president, said that Rex Stout, author $\ a \f r of the popular Herq Wolfe stories, would serve as »chairman of the Advisory Committee. Members of the committee are Pearl S. Buck, whose MThe Good Earth,11 was the 1932 Pulitjjzer prize-winning novel; Russel Crouse, Broadway playwright, Clifton Fadiman, hook reviewer for The New Yorker magazine and radio master of ceremonies for “Information Please;“ and John P. Mar<iuand, whose H. M. Pulham, Eso>, is a current best seller. ^ “We think it peculiarly in the interest of the writer, who can function only in a free country, to do all we can to mobilize American men and women in the job we have to do, “Mr. Stout said. “We shall ask the writers of the country to employ all their talents in urging all citizens to help win the war by the regular purchase of Defense Savings Bonds and Stamps to the limit of their -enunbilitiescg T R E A S U R Y D E P A R T M E N T WASHINGTON DEFENSE SAVINGS STAFF December 16, 1941 Mr* Arthur 1* Wilson Chief, Division of Savings Bonds Treasury Department There is attached hereto Release Kb* 101, of which it is requested that 100 copies he mimeographed and delivered to Mr* McCarty, 608 Sloane Building, The mailing order on this release is as follows: Press Mailing List Ho. 1 I TREASURY DEPARTMENT Washington FOR IMMEDIATE RELEASE, Wednesday, December 17» 19^-1 •' Press Service N o . .29^10 The Authors* League of America today notified the Treasury Department that the League has formed an Advisory Committee to cooperate in promoting the National Defense Savings Program, Howard Lindsay, League president, said that Rex Stout, author of the popular Nero Wolfe stories, would serve as chairman of the Advisory Committee. Members of the Committee are Pearl S, Buck, whose " The Good Earth," was the 1932 Pulitzer prize winning novel; Russel Crouse, Broadway playwright; Clifton Fadiman, book reviewer for the New Yorker magazine and radio master of ceremonies for '‘Information Please, " and John P. Marquand, whose "H. M, Pulham, Esq.", is a current best seller. "We think it peculiarly in the interest of the writer, who can function only in a free country, « to do all we can to mobilize American men and women in the job we have to do, "Mr. Stout said. "We shall ask the writers of the country to employ all their talents in urging all citizens to help win the war by the regular purchase of Defense Savings Bonds and Stamps to the limit of their capacity," -oOo— TREASURY DEPARTMENT Washington FOR IMMEDIATE RELEASE, Wednesday, December 17, 19^1. Press Service No. 29-11 The Bureau of Internal Revenue has ruled, that the option to charge to expense intangible drilling and development costs in curred by oil and gas operators include amounts paid to an inde pendent contractor for the drilling of a well under a footage contract in which the consideration is fixed at a stated amount per foot drilled, unless the contract is a 11turnkey11 one. A "turnkey" contract, it was explained, is one that requires the driller to furnish all labor and materials needed for the completion of the well. The option referred to is found in Section 19.23(m)-l 6 (1 ) of Regulations 103 relating to the Federal income tax. In an opinion expressed by the Chief Counsel of the Bureau, controlling decisions of the United States Board of Tax Appeals were construed as holding that amounts paid to a contractor under a turnkey contract must be capitalized even though the agreed con*slderation is a stated amount per foot drilled. A footage contract is defined to include a contract to drill a stated number of feet for a lump sum consideration as the price per foot can be precisely determined in such a case. The opinion states that payments to a contractor under a contract that is neither a turnkey nor a footage contract are capital expenditures if the contractor is an independent contrac tor; but may be charged to expense under the option if the con tractor is an employee or agent of the operator rather than an independent contractor. The opinion reviews a number of pertinent Board decisions including I. Rudman, B.T.A. T ' I .ing Company, ^2 B. T. A.IO 5 7 j and W. D. Ambrose The opinion will be published in the Internal Revenue Bulle tin in the near future. oQO' PRES; RELEASE K The Bureau of Customs announced today that preliminary reports from the collectors of customs show imports of 1*0,703 head of Canadian cattle weighing 700 pounds or more each (other than cows imported specially for dairy purposes), during the period October 1 to December 6, 19Ul> inclusive, under the tariff rate quota for the fourth quarter of the calendar year 19lil, provided for in the trade agreement with Canada. The President*s proclamation signed November 30, 19U0, pro vided that not more than £1,720 head of this class of cattle, the produce of Canada, entered, or withdrawn from warehouse, for con sumption in any calendar quarter year during 19Ul shall be entitled to the reduced rate of duty of 1-1/2 cents per pound provided in the trade agreement. During the period December 18 to 31> 19U1* inclusive, the collectors of customs have been instructed to collect estimated duties at 3 cents per pound, the full rate of duty under paragraph 701 of the Tariff Act of 1930, on this class of Canadian cattle entered or withdrawn for consumption pending fulfillment of the quota for the fourth quarter of 19ljl- Excessive duties deposited on imported cattle of this class found to be within the quarterly quota will be refunded. (Prepared - Appeals and Protests (Quota Unit) Bureau of Customs) * f TREASURY DEPARTMENT Washington FOR RELEASE, MORNING NEWSPAPERS, Thursday, December IS, 19^1. 1‘2 / i T A t ------ Press Service No, 29-12 The Bureau of Customs announced today that preliminary reports from the collectors of customs show imports of ^0,7^3 head of Canadian cattle weighing ~J00 pounds or more each (other than cows imported specially for dairy purposes ), during the period October 1, to December 6, 19^+1, inclusive, under the tariff rate quota for the fourth quarter of the calendar year 1 9 ^ 1 , provided for in the trade agreement with Canada* The P r e s i d e n t s proclamation signed November $0, 1 9 ^ 0 , pro vided that not more than $1,720 head of this class of cattle, the produce of Canada, entered, or withdrawn from warehouse, for con sumption in any calendar quarter year during 1 9 ^ 1 shall be entitled to the reduced rate of duty of 1-1/2 cents per pound provided In the trade agreement* | * ) During the period December IS to $1, 19^1, inclusive, the collectors of customs have been instructed to collect estimated duties at 3 cents per pound, the full rate of duty under paragraph 701 of the Tariff Act of 193°> °n this class of Canadian cattle entered or withdrawn for consumption pending fulfillment of the quota for the fourth quarter of 19^1. Excessive duties deposited on imported cattle of this class found to be within the quarterly quota will be refunded. -0 O 0- TREASURY DEPARTMENT Washington FOR IMMEDIATE RELEASE, Thursday, December IS, 19*11. Press Service No. 29-13 Commissioner of Internal Revenue Guy T. Helvering announced that certain income and excess profits tax liabilities of the Associated G-as & Electric System and of Howard C. Hopson and various companies organized by Hopson were compromised and settled today in the office of the Collector of Internal Revenue for the Second New York Collection District in New York City in the amount of # 3 ,9 5 7 ,1 2 0 .9 8 . The liabilities were represented by jeopardy assessments and other deficiencies in tax later determined against Hooson and his affiliated organizations for the years 1 9 1 5 to and including 1 9 ^ 0 * and by an unpaid balance of # 5 ,7 0 0 ,0 0 0 , plus interest, due from * the System under a compromise agreement entered into on July 5 1939 (covering the taxable years 1 9 2 7 to and including 1 9 3 3 ). Reorganization proceedings under Chapter X of the Bankruptcy Act involving the System have been pending before Judge Vincent L. Leibell in the United States District Court for the Southern District of New York since the early part of 1 9 ^ 0 . In January, I9 4 I, Stanley Clarke, trustee of the Associated Gas & Electric Company, obtained a temporary restraining order forbidding further disposition of property belonging to the Hopson interests, including enforcement of collecting taxes due by the Hopson interests. Under the settlement this restraining order was set aside with prejudice; and in addition 73 cases pending before the United States Board of Tax Appeals involving tax liabilities of the Hopson interests were closed. The sum of $ 6 .6 1 9 ,337*15 w &s paid in cash at the closing today, the balance (# 2 ,3 3 ?, 7 $ 3 *$ 3 ) having been previously paid by the taxpayers. The amount of the settlement agreed upon was deter mined after numerous lengthy conferences between representatives of the proponents and representatives of the Treasury Department and the Department of Justice and was considered a fair settlement on an amicable basis of the controversies for the years in Question. (2) l J COTTON CARD STRIPS, COMBER WASTE, LAP WASTE, SLIVER WASTE, AND ROVING WASTE, WHETHER OR NOT MANUFACTURED OR OTHERWISE ADVANCED IN VALUE. Annual quotas commencing September 20, by Countries of Origin: Total quota, provided, however, that not more than 33-1/3 percent of the quotas shall be filled by cotton wastes other than card strips and comber wastes made from cottons of 1-3/16 inches or more in staple length in the case of the following countries: United Kingdom, France, Netherlands, Switzerland, Belgium, Germany and Italy: i Country of Origin United Kingdom .... Canada ........... France ............ British India ..... Netherlands ....... Switzerland ...... B e l g i u m ....... . Japan ............ China ............ Egypt ............ Germany ........... Italy ............ Total 1/ U n r ouriao TOTAL IMPORTS : Established Established Sept. 20, 1941 *• 33-1/3% of : TOTAL QUOTA to Dec. 6. 1941: Total Quota : 4,323,457 239,690 227,420 69,627 68,240 44,388 38,559 341,535 17,322 8,135 6,544 76,329 21,263 434 231,607 12,207 — 5,482,509 244,248 1,441,152 — 75,807 M 22,747 14,796 12,853 j ■—■... -..... . nj Imports Sept, 20, 1941, to Dec.6.1941 1/ 434 *• — — — — — — B 25,443 7,088 - 1,599,886 ' 434 Included in total imports, column 2. 1 0 ° f COTTON HAVING A STAPLE OF LESS THAN l-ll/l6 INCHES (OTHER THAN HARSH OR ROUGH ' COTTON OF LESS THAN 3/4 INCH IN STAPLE LENGTH AND CHIEFLY USED IN THE MANUFAC TURE OF BLANKETS AND BLANKETING, AND OTHER THAN LINTERS). Annual quotas commencing September 20, by Countries of Origin: Country of Origin (In Pounds) Staple length 1-1/8” or more Staple length less but less than 1 -11 /16 " than 1-1/8” : Imports Sept, : Imports Sept. : Established : 20, 1941, to : S stablished : 20, 1941, to : December 6. 194 Quota •.December 6,1941 Quota Egypt and the AngloEgyptian Sudan ..... Peru ................. British India ........ China ................ Mexico ............... Brazil ............... Union of Soviet Socialist Republics . Argentina ............ Haiti ................ Ecuador .............. Honduras .............. Paraguay ............. Colombia ............. I r a q ....... .......... British East Africa ... Netherlands East Indies ............. Barbados ........... .. Other British West Indies l/ .......... Nigeria .............. Other British W e s t " Africa 2/ .......... Algeria and Tunisia ... Other French Africa 2/* 783,816 247,952 2,003,433 1,370,791 8,883,259 618,723 247,952 — 8,883,259 618,723 475,124 5,203 43,451,566 2 ,056,299 64,942 2,626 3,808 6,683,532 2,056,299 2 — — 435 506 — — 6 237 9,333 752 871 124 195 2,240 210 9,333 — — — - 71,388 - _ — - 12,554 — 21,321 5,377 •mm 30 30,139 — — 16,004 - 689 — — — —■ 29,909 2,002 1,634 — ¿5.656,420 14,516,882 9.759450Z. Total 1/ Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago. 2/ Other than Gold Coast and Nigeria. 3/ Other than Algeria, Tunisia, and Madagascar. — — — 30 àm — — —* — 8,739,869_ < j TREASURY ^DEPARTMENT Washington FOR IMMEDIATE RELEASE, Thursday, December 18, 1941. Press Service No, 29-14 The Bureau of Customs announced today that preliminary reports from the collectors of customs show imports of cotton and cotton waste chargeable to the import quotas established by the President’s proclamations of September 5, 1939, and December 19, 1940, as follows, during the period September 20, 1941, to December 6, 1941, inclusive: COTTON PAVING A STAPLE OF LESS THAN 1-11/16 INCHES (OTHER TTTAN HARSH OR ROUGH COTTON OF LESS THAN 3/4 INCH IN STAPLE LENGTH AND CHIEFLY USED IN THE MANUFACTURE OF BLANKETS AND BLANKETING, AND OTHER THAN LINTERS). Annual quotas commencing September 20, by Countries of Origin:' (In Pounds) :Staple length 1-1/8" or Staple length less jrnore but less than 1-11/16» î than 1-1/8'» :Imports Sept. 2( : Imports Sept, :Established ;1941, to De:Established : 20, 1941, to :cember 6, 1941 :December 6, 194 Quota : Quota : Country of Origin X: Egypt and the Anglo43,451,566 # 783,816 Egyptian Sudan . , , . . 2,056,299 247,952 247,952 Peru 64,942 British India. . . . , . . 2,003,483 2,626 China . 1,370,791 M e x i c o ............ .. . . 8,883,259 8,883,259 3,808 618,723 . 618,723 IB^TclZiZlIL Union of Soviet Socialist Republics . 475,124 210 435 Argentina.......... .. • . 5,203 506 237 Haiti . . . . ........ . Lucciciclor 9,333 9,333 752 Honduras .............. > Paraguay , 871 . 124 Colombia Iraq . 195 29,909 2,24O British East Africa . • , Netherlands East 71,388 Indies , 12,554 Barbados Other British West . 21,321 30,139 Indies l/. 30 Nigeria .............. Other British West 2,002 Africa 2/. . . . . . . 16,004 1,634 Algeria and Tunisia . . ♦ 689 Other French Africa 3/ • 45 , 656.420 14,516,882 9,759,507 To tal Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago. 2/ Other than Gold Coast and Nigeria, 3/ Other than Algeria, Tunisia, and Madagascar. - Xj 6,683,532 2,056,299 2 6 — 30 - 8.739.869 1 (2) COTTON Ca RD o31rh'O R WASTE, LAP WASTE, SLIVER WASTE, AND ROVING WA .* WIETEER OR HOT 'MANUFACTURED OR OTHERWISE ADVANCED IN VALUE, Annual cjiiouas commencing September 20, by Countries of Origin: 'ofal qiiotfi, provided, however, that not more than 33-1/3 percent ot the quotas shall be filled by cotton wastes other than card strips and comber wastes made from, cottons of 1-3/16 inches or more in staple length in the case of the following countries: United Kingdom, France, Netherlands, Switzerland, Belgium, Germany ana Italy: & '* Country of Origin United Kingdom .... Canada France ........... British India .... Netherlands ...... Switzerland ...... Belgium.......... Janan ............ China ............. E g y p t .......... .. C u b a ....... ...... Germany.......... I t a l y ........... t Total (in Pounds) Established : TOTAL IMPORTS Established :Imports Sept. TOTAL QUOTA : Sept. 20, 1941 1 33-1 /3/0 of :20, 1941 , to : to Dec. 6, 1941 : Total Quota :Dec. 6 . 1941 1/ i 4,323,457 239,690 227,420 69,627 434 231,607 5,482,509 1/ Included in total imports, column - — - 22,747 14U/96 12,853 _ r _ — ^ 2 2. -oOo- » 434 75,307 12,207 _ — 68,240 44,368 38,559 341,535 17,322 8,13 5 6, 544 76,329 21,263 1,441,152 ( 25,443 7,083 1,599,886 - 434 C O M M I S S I O N E R O F T H E P U B L IC D E B T fh-v | W -ft- I ’ - l i f l n iStXi, 1 cti&ACCn+A. >> ._ ..-v ilfi53ÌPr£?ii? v|Í®¿ífS rz~-J -~ì - p s s p e ® m @h * i mk Tm m m im m m m VM tlngton 1 FOR BBfXDZAEE H E I W , tf P m * Sarrio® r/à Mo, J f H C Z J ' Saaretary of thè Treasury Worgentheu announced today that on «ad aitar m : Fanuary 1, 1942, tha additlouai dénomination of $25 (naturi ty value} of IMitad Stata» Satin«» Sonda of Safan sa Saria» F olii ha provided, tha laau© ^ « û pria» of tfhieh «ili ha #1S«S0. Ih explanatlon, Saoratary Morgenthau ■lutali that a» tha naia of Safanaa Satin«» Bond» of Sorioa 1 «a» raatriatod to individuóle, nany anali associations fouad it diffieult or impossible to partiolpate in tha Safanaa Satin«® pro«rea, aa tha anallaat dénomination of hond ave! lable for iaaua to tha» «a» tha $100 dénomination of Safanaa Serles F* With tha addition of thls dénomination^tha participation of thaaa anali association® i® escurad• Bond® of Safeco Series F ara 12-year bonds, iaauad on a diaaount hacia, tha issue prie® bain« 74 partant of thoir naturity value. If hold to naturity tha investment yiold i® 2.53 pareant eonpoundad sanlanaually. thaaa hond® ara radaaaahla bafora naturity, at tha option of WmM canora, at finad rédemption ta lues. Bonds of Befana# Sorlo® F ara lssuod only mm hy tha Fadoral Reserve Bank® and tha Treasury Department, but commarei al banks ganarally «111 hendía application®. I m ÉÉiiÉí H ■3^Y>'â&- ♦J'*'- : lutasti» .Mivr « rarahfc -" mm TREASURY DEPARTMENT Washington FOR IMMEDIATE RELEASE, Thursday, December IS, 19*11. Press Service No, 29-15 Secretary of the Treasury Korgenthau announced today that on and after January 1, 19^2, the additional denomination of $25 (maturity value) of United States Savings Bonds of Defense Series F will be provided, In explanation, the issue price of which will be |1S.50- Secretary Morgenthau said that as the sale of Defense Savings Bonds of Series E was restricted to individuals, many small associations found it difficult or impossible to participate in the Defense Savings program, as the smallest denomination of bond available for issue to them was the $100 denomination of Defense Series F, denomination, With the addition of this the participation of these small associations is assured. Bonds of Defense Series F are 12-year bonds, discount basis, maturity value. the issue price being 7 ^ percent of their If held to maturity the investment yield is 2,53 percent compounded semiannually. before maturity, values. issued on a These bonds are redeemable at the option of owners, at fixed redemption Bonds of Defense Series F are issued only by the Federal Reserve Banks and the Treasury Department, but commercial banks generally will handle applications. - 0Q 0- When the attached release has been mimeographed, please Hâve 10 extra copies forwarded to Miss Henry, Quota Unit, Bureau of Customs, 404 Wilkins Bldg#, 1512 H St#, N. W# V - 2 - rate applicable, importers -will be required to deposit estimated duties at the full rate. Excessive duties deposited on such merchandise found to be within the quota will be refunded. (Prepared - Appeals and Protests (Quota Unit) Bureau of Customs) 1 1 PRESS RELEASE ./?, / f V / The Bureau of Customs announced today that preliminary reports from the collectors of customs show imports of 1,807,909,062 gallons of crude petroleum, topped crude petro leum, and fuel oil the produce or manufacture of Venezuela entered, or withdrawn from warehouse, for consumption during the period January 1 to Pec ember 6, 19l*l, inclusive. Under the terms of the Presidents proclamation of December 28, 19l*0, not more than 1,913,01*9,600 gallons the produce or manufacture of Venezuela may be entered, or with drawn from warehouse, for consumption at the reduced rate of import tax of l/l* cent per gallon provided for in the trade agreement with Venezuela during the calendar year 191*1« Such imports in 19l*l in excess of the quota will be dutiable at the full rate of import tax of l/2 cent per gallon. In order to provide for the control of this quota the collectors of customs have been instructed that, effective December 22, 19l*l, entries and withdrawals for consumption covering Venezuelan petroleum and fuel oil may be accepted at the reduced rate, provided the merchandise is not released pending determination of its quota status. If release of the merchandise is desired before determination of the TREASURY DEPARTMENT Washington FOR RELEASE, MORNING NEWSPAPERS, Friday, December 19, 19^1. 12/W41 Press Service No. 29-16 The Bureau of Customs announced today that preliminary reports from the collectors of customs show imports of 1 ,6 0 7 ,9 0 9 ; 0 6 5 gallons of crude petroleum, topped crude petroleum, and fuel oil the produce or manufacture of Venezuela entered, or withdrawn from warehouse, January 1 for consumption during the period to December 6 , 19^1, inclusive. Under the terms of the P r e s i d e n t ^ proclamation of December 26, 19^0, not more than 1,913» 0^-9? 600 gallons the produce or manufacture of Venezuela may be entered, or withdrawn from warehouse, for consumption at the reduced rate of import tax of 1/k cent per gallon;provided for in the trade agreement with Venezuela during the calendar year 19^1. Such imports in 19^1 in excess of the quota will be dutiable at the full rate of import tax of 1 / 2 cent per gallon. In order to provide for the control of this quota the collectors of customs have been instructed that, effective December 22, 19^1, entries and withdrawals for consumption covering Venezuelan petroleum and fuel oil may be accepted at the reduced rate, provided the merchandise is not released pending determination of its quota status. If release of the merchandise is desired before determination of the rate applicable, importers will be required to deposit estimated duties at the full rate. Excessive duties deposited on such merchandise found to be within the quota will be refunded. q Oo - xnanct ~ 3 - on original Issue or on subsequent purchase, and the amount actually received either upon sale or redemption at maturity during the tamable year for which the return is made, as ordinary gain or loss* Treasury Department Circular Ho* ¿18, as amended, and this notice, prescribe the terms of the Treasury bills and govern the conditions of their issue* Copies of the circular may be obtained from any Federal Heserve Bank or Branch* i SSBil^tels ^Swis T&'-'-? |[pS| *tjf||| 2 - « M isais EpSB’ffiy 2 - *nss* Reserve Banks and Branches, following which public announcement will be made by the Secretary of the Treasury of the amount and price range of accepted bids. mmm Those submitting tenders will be advised of the acceptance or rejection thereof* The Secretary of the Treasury expressly reserves the right to accept or reject ¡gig any or wll tenders, in whole or in part, and his action in any such respect shall be final. Payment of accepted tenders at the prices offered must be made or com» pleted at the Federal Reserve Bank in cash or other immediately available funds on December 24, 1941# provided, however, any qualified depositary will be permitted to make payment by credit for Treasury bills allotted to it for itself and its cus tomers up to any amount for which it shall be qualified in excess of existing de posits when so notified by the Federal Reserve Bank of its district. SMt The income derived from Treasury bills, whether interest or gain from the sale or other disposition of the bills, shall not have any exemption, as such, A- :-7;V':-;''- and loss from the sale or other disposition of Treasury bills shall not have any special treatment, as such, under Federal tax Acts now or hereafter enacted. The bills shall be subject to estate, Inheritance, gift, or other excise taxes, whether Federal or State, but shall be exempt from all taxation now or hereafter imposed on 1m. the principal or interest thereof by any State, car any of the possessions of the United States, or by any local taxing authority. For purposes of taxation the amount of discount at which Treasury bills are originally sold by the United States shall be considered to be interest. Under Sections 42 and 117 (a) (1) of the Internal Revenue Code, as amended by Section 115 of the Revenue Act of 1941, the amount of discount at which bills issued hereunder are sold shall not be considered to accrue until such bills shall be sold, redeemed or otherwise disposed of, and such bills are excluded from consideration as capital assets. Accordingly, the owner of Treasu^ bills (other than life insurance companies) issued hereunder need include in his i n c a m tax return only the difference between the price paid for such bills, whether IPml mM$?: xssm. TREASURY DEPARTMENT Washington FOR RELEASE, MORNING NEWSPAPERS, Friday, December 19« 19A1_____ • The Secretary of the Treasury, by this public notice, invites tenders fnr *150,000,000 , or thereabouts, of 8 2 - Nay treasury bills, to be issued on a discount basis under competitive bidding. te dated. December 2k, 19A1 The bills of this series vn and will mature — March 16, 1 W ?. when the face amount will be payable without interest. They will be issued m bearer form only, and in denominations of *1,000, $5,000, $10,000, $100,000, $500,000, and *1,000,000 (maturity value). Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, two o*clock p* m., -^astern Standard time, Monday!*. Tenders will not be received at the Treasury Department, Washington. Each tender V s t be for an even multiple of *1,000, and the price offered must be expressed on the basis of 100, with not more than three decimals, e. g., 99.925. may not be used. Fractions It is urged that tenders be made on the pointed forms and for warded in the special envelopes which will be supplied by Federal Reserve Banks li»iei or Branches on application therefor. Tenders will be received without deposit from incorporated banks and trust companies and from responsible and recognized dealers in investment securi ties. 'mu illott « Tenders from others must be accompanied by payment of 10 percent of the face amount of Treasury bills applied for, unless the tenders axe accompanied by an express guaranty of payment by an incorporated bank or trust company. Im m ediately a fte r the c lo s in g hour, tenders w ill be opened a.t the Federal b TREASURY DEPARTMENT Washington FOR RELEASE, MORNING- NEWSPAPERS, Friday, December 19» 1941.______ The Secretary of the Treasury, by this public notice, in vites tenders for $ 1 5 0 ,0 0 0 ,0 0 0 , or thereabouts, of B 2 -day Treasury bills, to be issued on a discount basis under competi tive bidding. The bills of this series will be dated December 24, 1 9 ^1 , and will mature March 16, 19*12, when the face amount will be payable without interest. They will be issued in bearer form only, and in denominations of $ 1 ,0 0 0 , $ 5 ,0 0 0 , $1 0 ,0 0 0 , $1 0 0 , 0 0 0 , $5 0 0 ,0 0 0 , and $ 1 , 0 0 0 ,0 0 0 (maturity v a l u e ). Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, two o 1clock p. m., Eastern Stan dard time, Monday, December 22, 194-1, Tenders will not be received at the Treasury Department, Washington. Each tender must be for an even multiple of $1 ,0 0 0 , and the price offered must be expressed on the basis of 1 0 0 , with not more than three decimals, e. g., 99*925. Fractions may not be used. It is urged that tenders be made on the printed forms and forwarded in the special envelopes which will be supplied by Federal Reserve Banks or Branches on application therefor. Tenders will be received without deposit from incorporated banks and trust companies and from responsible and recognized dealers in investment securities. Tenders from others must be accompanied by payment of 1 0 percent of the face amount of Treasury bills applied for, unless the tenders are accompanied by an express guaranty of payment by an incorporated bank or trust company. Immediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, following which public announcement will be made by the Secretary of the Treasury of the amount and price range of accepted bids. Those submitting tenders will be advised of the acceptance or rejection thereof. The Secretary of the Treasury expressly reserves the right to accept or reject any or all tenders, in whole or in part, and his action in any such respect shall be final. Payment of accepted tenders at the prices offered must be made or completed at the Federal Reserve Bank in cash or other immediately available funds on December 24, 194l, provided, however, any qualified depositary will be permitted to make payment by credit for Treasury bills allotted to it for itself and its customers up to any amount for which it shall be qualified in excess of existing deposits when so notified by the Federal Reserve Bank of its district. The income derived from Treasury bills, whether interest or gain from the sale or other disposition of the bills, shall not have any exemption, as such, and loss from the sale or other disposition of Treasury bills shall not have any special treat ment, as such, under Federal tax Acts now or hereafter enacted. The bills shall be subject to estate, inheritance, gift, or other 2 9 -1 7 -2- excise taxes, whether Federal or State, hut shall be exempt from all taxation now or hereafter imposed on the principal or interest thereof by any State, or any of the possessions of the United States, or by any local taxing authority. For purposes of taxa tion the amount of discount at which Treasury bills are originally sold by the United States shall be considered to be interest. Under Sections 1*2 and 1 1 7 (a) (l) of the Internal Revenue Code, as amended by Section 1 1 5 of the Revenue Act of 1 9 1 *1 , the amount of discount at which bills Issued hereunder are sold shall not be considered to accrue until such bills shall be sold, redeemed or otherwise disposed of, and such bills are excluded from considera tion as capital assets. Accordingly, the owner of Treasury bills (other than life insurance companies) issued hereunder need include in his income tax return only the difference between the price paid for such bills, whether on original issue or on subse quent purchase, and the amount actually received either upon sale or redemption at maturity during the taxable year for which the return is made, as ordinary gain or loss. Treasury Department Circular No, .l*lg, as amended, and this notice, prescribe the terms of the Treasury bills and govern the conditions of their issue. Copies of the circular may be obtained from any Federal Reserve Bank or Branch. -O0O-r / i r , .Ö • k / - ^ From: -dSL J ME. SCHWARZ TO* | • • ' The Secretary For approval, please From: MR. SCHWARZ For immediate release 2 ^ r< rr! Sa' S e c r e t a r y M o r g e n t h a u t o d a y a n n o u n c e d that H a r r y D. W h i t e , A s s i s t a n t to the S e c r e t a r y , has been in a s s i g n e d full r e s p o n s i b i l i t y f o r a l l m a t t e r s w i t h foi w h i c h the T r e a s u r y h a s to d e a l t h a t h a v e a b e a r i n g Dej on f o r e i g n r e l a t i o n s . 'Mr. W h i t e w i l l a c t as l i a i s o n b e t w e e n the T r e a s u r y D e p a r t m e n t a n d the S t a t e D e p a r t m e n t , se r v e in the c a p a c i t y o f a d v i s e r to a l l T r e a s u r y .f o r e i g n will the S e c r e t a r y on affairs matters, a n d w i l l assume r e s p o n s i b i l i t y for t h e m a n a g e m e n t a n d o p e r a t i o n of the Stabilization Fund without change in e x i s t i n g procedures. H. M e r l e C o c h r a n , w h o h a s b e e n d i r e c t i n g operations of th e S t a b i l i z a t i o n F u n d s i n c e S e p t e m b e r , 1939, has b e e n r e c a l l e d to h i s p o s t of F o r e i g n S e r v i c e O f f i c e r in the S t a t e D e p a r t m e n t . OoO!h TREASURY DEPARTMENT Washington FOR IMMEDIATE RELEASE, Saturday, December 20, 19*4-1. Press Service No* 2 9 -lE Secretary Morgenthau today announced that Harry D, White, Assistant to the Secretary, has been assigned full responsibility for all matters with which the Treasury has to deal that have a bearing on foreign relations. Mr. White will act as liaison between the Treasury Department and the State Department, will serve in the capacity of adviser to the Secretary on all Treasury foreign affairs matters, and will assume responsibility for the management and operation of the Stabilization Fund without change in existing procedures, H. Merle Cochran, who has been directing operations of the Stabilization Fun d since September, 1939» has been recalled to his post of Foreign Service Officer in the State Department. -oOo TREASURY DEPARTMENT Washington FOR IMMEDIATE RELEASE. Saturday. December 20. l q l a . Press Service No. 29-I9 The Treasury Department today reinstated certain general licenses under the freezing order in their application to Japanese nationals. On December 19^-1, all general and specific licenses were revolted in so far as they concerned Japanese nationals. Public Circular No. gA, issued today, authorizes Japanese nationals to pay taxes and fees to the Federal and State governments, to deposit their funds in blocked accounts in banks, and to engage in certain other limited types of financial transactions under proper safeguards. 0O 0- TREASURY DEPARTMENT Office of the S ecretary December 20, 1941. CO r~— t PUBLIC CIRCULAR NO. 8A UNDER EXECUTIVE ORDER NO. 8389, APRIL 10, 1940, AS “ I m~ ENDED, AN: .SUANT THERETO, ISSUED PURSUANT THERETO. RELATING TO T hT TRAN 1L\ FOREIGN : EXCHANG £ 9 ETC.--* j j All general licenses other than those listed below are hereby reinstated to the extent that they were revoked by Public Circular No. 8. General General General General General General General General General General General Li cens e Li cens e Li cens e Li cens e Li cens e LI cens e Li cens e Li cens e Li cens e Li cens e T ± 1 cens e * j No. No. NoNo. No. No. No. No. No. No. No. 56 58 59 60 61 63 65 66 68 69 75 E. H. FOLEY, JR. Acting Secretary of the Treasury. *This public circular aff ects Parts 130 and 131 and”will be included in appendices to those narts. Sec. 5(b), 40 Stat. 415 and 9 6 5 / Sec. 2, 48 Stat. 1; 54 Stat. 179; Ex. Order 8389, April 10, 1940, as amended by Ex. Order 8785, June 14, 1941, Ex. Order 8832, July 26, 1941, and Ex. Order 8963, December 9, 1941; Regulations, April 10, 1940, as amended June 14, 1941, and July 26, 1941/ TO; Slightly changed and reorganized to prevent squelching those who really can afford to give and yet protect those who might he swept up by appeals to their emotions. Okay - 3 - The Secretary also called attention to the fact that the Congress has enacted additional revenue measures snd will undoubtedly enact further measures under which the burden of the cost of iito: the war will be imposed upon all of the people according to the degree of their ability to pay such taxes. 0 0 O 00 2 Answering inquiries from a number of persons and organizations who asked that they be permitted to collect amounts for donation to the Government , the Secretary repeated his explanation of June 6, 194-0» when he said that the sole authority for determining the method of raising money necessary to meet the expenditures of the Government is vested in the Congress. The Secretary said he was greatly heartened by the numerous donations which have been made to the Treasury and by the number of suggestions received and believed they gave positive evidence of the spirit of patriotism prevailing in the nation. He added that the Treasury would continue to receive voluntary donations from those people who desire to make such donations directly to the Treasury, but that the Treasury could not authorize private persons or agencies to conduct special campaigns to raise funds from the public for this purpose. The Secretary urged, however, that persons desiring to participate in the war effort of the country invest their funds in Defense Savings Bonds or Stamps or in Treasury Tax Savings Notes to use in paying their currently accruing tax liabilities. In some cases, he pointed out, voluntary donations obviously entail real sacrifice on the part of the donors and such donors bear more than their fair share of the war costs♦ ? ° For Immediate Pelease Secretary Morgenthau said today that contributions from individuals and groups for war purposes are being deposited in the General Fund of the Treasury as "Donations to the Government for National Defense." He pointed out that such contri butions could not be received for specific purposes and that moneys in the General Fund are used to pay all expenses of the Government, including those for war activities. The Secretary said the Treasury had received a number of suggestions that arrangements be set up to encourage donations to special funds to be identified by slogans such as "Buy a bomber," "Give a Christmas present to SfiSfe*1Uncle Sam" and others. He explained that it did not appear practicable to adopt these suggestions as a major means of financing the Government’s requirements and added that the principal sources of funds to the Treasury are from taxation and the sale of public debt obligations* TREASURY DEPARTMENT Washington FOR IMMEDIATE RELEASE, Monday, December 22, 19^-1, ' Press Service No. 29-20 Secretary Morgenthau said today that contributions from individuals and groups for war purposes are being deposited in the General Fund of the Treasury as “Donations to the Government for National Defense." He pointed out that such contributions could not be received for specific purposes and that moneys in the General Fund are used to pay all expenses of the Government, including those for war activities. The Secretary said the Treasury had received a number of suggestions that arrangements be set up to encourage donations to special funds to be identified by slogans such as "Buy a bomber, " "Give a Christmas present to Uncle Sam" and others. He explained that it did not appear practicable to ado£t these suggestions as a major means of financing the Government's requirements and added that the principal sources of funds to the Treasury are from taxation and the sale of public debt obligations. Answering inquiries from a number of persons and organizations who asked that they be permitted to collect amounts for donation to the Government, the Secretary repeated his explanation of June 6, 1 9 ^ 0 , when he said that the sole authority for determining the method of raising money necessary to meet the expenditures of the Government is vested in the Congress. •The Secretary said he was greatly heartened by the numerous donations which have been made to the Treasury and by the number of suggestions received and believed they gave positive evidence of the spirit of patriotism prevailing in the nation. He added that the Treasury would continue to receive voluntary donations from those people who desire to make such donations directly to the Treasury, but that the Treasury could not authorize private persons or agencies to conduct special campaigns to raise funds from the public for this purpose. - 2 - The Secretary urged, however, that persons desiring to participate in the war effort of the country invest their funds in Defense Savings Bonds or Stamps or in Treasury Tax Savings Notes to use in paying their currently accruing tax liabilities. In some cases, he pointed out, voluntary donations obviously entail real sacrifice on the part of the donors and such donors bear more than their fair share of the war costs. The Secretary also called attention to the fact that the Congress has enacted additional revenue measures and will undoubtedly enact further treasures under which the burden of the cost of the war will be imposed upon all of the people according to the degree of their ability to pay such taxes. -0 O 0- (Under the plan* the purchase of defense bonds comes first on each pay day before the railroad employee spends a single cent for anything else, Mr. Luhrsen SHuhiim explained* This, he said, should provide Uncle Sam with enough money to buy a fleet of heavy bombers. jfhis pledge of cooperation by the Rail wary Labor Executives’ Association followed an exchange: of letters and telegrams between Secretary Moigenthau and Mr. Luhrsen, resulting in adoption of the plans for voluntary payroll allotments and purchase of bonds with the retroactive pay The Railway Labor Executives* Association, representing 1,100,000 railroad employes, aftiw itd membership today to use the largest possible share of the $75,000,000 due it in retroactive pay in the purchase of Defense Savings Bonds* The announcement was made by Julius G. Luhrsen, Executive Secretary of the Association,, speaking for its chairman , Thomas C. Cashen, in a new pledge of all-out cooperation with the Defense Savings Bond program to Secretary Mor gent hair The retroactive pay became available under the wage increase agreements recently signed by the rail labor organizations and the carriers, and is for services rendered in September, October and November. L-— <*^Mr • Luhrsen t-n jtmM; i"'ow.”d railroad employee of the twenty organizations comprising the association's membership is being urged to sign up for the YPayro|l Allotment PlanX under which he agrees to have his road set aside regularly a definite part of his pay for purchase of bonds. The managementshave agreed to do the bookkeeping necessary to make this plan work. TREASURY DEPARTMENT Washington FOR RELEASE, MORNING- NEWSPAPERS, Tuesday, December 23. 19^-1»_____ Press Service No. 29-21 The Railway Labor Executives' Association, 1 ,100,000 railroad employes, representing urged its membership today to use the largest possible share of the $75^000,000 due it in retroactive pay in the purchase of Defense Savings Bonds. The announcement was made by Julius G-. Luhrsen, Executive Secretary of the Association, speaking for its chairman, Thomas C, Cashen, in a new pledge of all-out cooperation with the Defense Savings Bond program to Secretary Morgenthau. The retroactive pay became available under the wage increase agreements recently signed by the rail labor organi zations and the carriers, and is for services rendered in September, October and November. At the same time Mr. Luhrsen announced that each railroad employee of the twenty organizations comprising the association's membership is being urged to sign up for the Payroll Allotment Plan under which he agrees to have his road set aside regularly a definite part of his pay for purchase of bonds. The managements have agreed to do the bookkeeping necessary to make this plan work. Under the plan, the purchase of defense bonds comes first on each pay day b e f o r e ,the railroad employee spends a single cent for anything else, Mr, Luhrsen explained. This, he said, should provide Uncle Sam with enough money to buy a fleet of heavy bombers. This pledge of cooperation by the Railway Labor Executives' Association followed an exchange of letters and telegrams between Secretary Morgenthau and Mr, Luhrsen, resulting in adoption of the plans for voluntary payroll allotments and purchase of bonds with the retroactive pay. -0O0- w ROUTING- SLIP Please d e liv e r the attached to the persons whose names are checked in the order in d ic a te d . ..Mr, Bell ..Miss Barr ..Mr. Bart el t ..Mr, Batchelder ..Miss Chatfield ..Mr. Cole ..Mr. Cunningham ..Dr. Dolan ..Mr. Emerson fPi Fuller „Mn. Qlfjtfigev ..MrfiSill .Mr. Ldafman Martin ........ Miss Michener ....... .Miss M ille r ........ Mr. Murphy (H.C! ..... „„Mr. O’ Connell | L....... Mr, Owen ........ Mrs. P otts ......... Mr. Sloan ............ Mrs. Taylor ........... .Mr. Thompson(W.i ............ Mr. Thompson(üll. „„„„„„„.„Mr. Wesley ... „ ...... Mr. Wilson (A.B ............ Mr. W ilson (T.l r-c; COMMISSIONER OF THE PUBLIC DEPT cx$-e-^ 2 TO: ^ ---- VV_^LA>-^ M From: - , I MR. SCHWARZ V■ • 1 fHEASUST DEPARTMENT Washington I I# i FDR IMMEDIATE M I M S & , Tuesday. Lece&ber 23. 1941 Press Service So. 2./- Z- ^ Secretary of the Treasury Morgentoau announced today that definitive* of the 2-1/2 percent Treasury Bond* of 1967-72, in coupon form, will be ready for delivery mi and after January 19, 1942, against the surrender of full-paid interim certificate* issued October 20 and December 15, 1941, in lieu of such bonds. Exchanges will be governed by the provisions of Trsasury Department Circular So. 675, dated December 15, 1941, and will be conducted through the Federal Reserve Banks and Branches, and toe treasury Dep&r teent, lash ington. Special arrangements may be made between incorporated banks and trust companies and the Federal ¡«serve Banks for the exchange of interim certifi cates for definitive bonds for their own account and for account of their customers, and individuals who hold interim certificate* are advised to consult toeir own bank with respect to the exchange. The official circular i* attached* Si ■ t e i i I TREASURY DEPARTMENT Washington FOR IMMEDIATE RELEASE, Tuesday, December 25, 19*4-1. Press Service Ncj. 29-22 Secretary of the Treasury Morgenthau announced today that definitives of the 2-1/2 percent Treasury Bonds of 19o7-72, in coupon form, will be ready for delivery on and after January 19, 19*4-2,. against the surrender of full-paid interim certificates issued October 20, and December 15, 19*41, in lieu of such bonds. Exchanges will be governed by the pro visions of Treasury Department Circular No. 675> dated December 15, 19*4-1, and will be conducted through the Federal Reserve Banks and Branches, and the Treasury Department, Washington, Special arrangements may be made between incorporated banks and trust companies and the Federal Reserve Banks for the exchange of interim certificates for definitive bonds for their own account and for account of their customers, and individuals who hold interim certificates are advised to consult their own bank with respect to the exchange. The official circular is attached. -oOo A Title 31—Money and Finance: Treasury Chapter II—Fiscal Service Subchapter B—BUREAU OF THE PUBLIC DEBT PART 310—REGULATIONS GOVERNING EXCHANGES OF INTERIM CERTIFICATES OF 2 l/ 2% TREASURY BONDS OF 1967-72 FOR DEFINITIVE COUPON BONDS Department Ci“ . l . r No. «75 | | —— Bureau of the^ubfic Debt TREASURY DEPARTMENT, Office of the S ecretary, W ash in gton , D ecem ber 1 5 ,1 9 4 1 . To H o ld ers o f fu ll-p a id in te rim certificates of 2]/2 p ercen t T rea su ry B onds of 1967-72, banks and tr u s t com panies in co rp o ra ted in the U n ited S ta te s u n der F ederal or S ta te law , an d a n y o th ers con cern ed: Sec. 310.0 Scope of regu lation s. — The provisions of this circular are hereby prescribed as the regulations to govern the exchange of full-paid interim certificates, issued pursuant to Treasury De partment Circulars No. 368, Revised, dated October 15, 1941 (6 FR 5289), No. 670, dated October 9, 1941 (6 FR 5150), and No. 672, dated December 4, 1941 (6 FR 6257), fo r definitive 2y2 per cent Treasury Bonds of 1967-72, dated October 20, 1941, in bearer form with coupons covering interest to m aturity attached (which may hereinafter be referred to as definitive coupon bonds, definitive bonds, or definitives).* Sec. 310.1 Official agencies. The official agencies fo r the exchange hereunder of interim certifi cates fo r definitive coupon bonds are the Federal Reserve Banks and their Branches, and the Treas ury Department, Division of Loans and Currency, Washington, D. C. Sec. 310.2 E xch an ges a t official agencies. — Exchanges may be effected beginning January 19, 1942. Interim certificates to be exchanged must be presented and surrendered to an official agency, at the risk and expense of the holders, and, unless delivered in person, should be forwarded by reg istered mail or prepaid express. Each delivery of interim certificates must be accompanied by appropriate w ritten advice transmitting the certificates and giving instructions fo r the delivery of the definitives issued in exchange (see appropriate form appended to this circular). Exchanges w ill be made on a like par amount basis, and unless other instructions are given in the advice, defin itives of the highest possible denominations w ill be delivered. No charge fo r the exchange w ill be made by the United States, and deliveries of definitives w ill be made w ithin the United States, its ter ritories and possessions at the expense and risk of the United States. No deliveries elsewhere w ill be made, nor w ill delivery of definitives be made other than to the party presenting the interim certificates. IM P O R T A N T : SEE THE NEXT FOLLOWING SECTION FOR SPECIAL ARRANGEMENTS FOR PRESENTATION OF INTERIM CERTIFICATES TO FEDERAL RESERVE BANKS BY BANKS AND TRUST COMPANIES. Sec. 310.3 S pecial a rra n g em en ts fo r banks an d tru st com panies. — It is expected that incorpo rated banks and trust companies w ithin the United States, generally w ill offer their services to their customers in effecting exchanges of interim certificates for definitive bonds without expense to the holders, and, accordingly, any holders of interim certificates who avail themselves of any such offer should, of course, present and surrender their interim certificates through such institutions. Any such bank or trust company may arrange with the Federal Reserve Bank of its district fo r the trans portation of interim certificates to the Federal Reserve Bank by registered mail at the expense and risk of the United States. Full information concerning such arrangements w ill be furnished by Federal Reserve Banks to incorporated banks and trust companies upon application. The interim certificates forwarded by incorporated banks and trust companies to the Federal Reserve Banks for exchange pursuant to such arrangements must be clearly stamped on the face, in indelnrv ury p rescrib ed in th is c irc u la r a p p ly to fu ll-p aid in te rim c ertificates th e .issue of w hit onds o f 1967 72 p u rs u a n t to th e a u th o rity o f th e Second L ib erty B ond Act» a s am ended. was incident to the issue of 2 % % Treaa16- 25392-1 2 ible ink, w ith a legend reading as follows : “ Presented fo r exchange fo r definitive coupon bonds by -: _: _____________ _______________ : ” A ll such interim certificates so stamped shall (N am e of b a n k o r tr u s t com pany) thenceforth be deemed nonnegotiable and w ill be accepted by the Federal Reserve Bank only when presented fo r exchange by or for account of the bank or trust company named thereon. Such ar rangements may not be made w ith the Treasury Department, nor may they be made by individ uals or institutions except as herein provided. Deliveries of definitive bonds issued upon such exchanges w ill be made to the incorporated bank or trust company presenting the interim certificates for exchange, and w ill be made at the expense and risk of the United States.- Incorporated banks and trust companies, in effecting exchanges pursuant to this paragraph, act as agents of the holders of the interim certificates and not as agents of the United States, and the United States w ill not be responsible fo r the receipt or custody of the interim certificates or fo r the custody or delivery of the definitive bonds by the banks or trust companies. The provisions of this section may be extended to private banks doing a recognized banking business and approved by the Federal Reserve Bank of the district in which located. Sec. 310.4 A u th o r ity of F ederal R eserve B a n k s. — Federal Reserve Banks, as fiscal agents of the United States, and their branches are authorized to perform all necessary acts w ithin the pur view of this circular, and to carry out such instructions in connection therewith as may, from time to time, be given by the Secretary of the Treasury. Sec. 310.5 R eserva tio n s. — The Secretary of the Treasury reserves the right at any time or from time to time to amend, supplement, or withdraw any or all of the provisions of this circular. 16- 25392-1 D. W. B ell, A c tin g S e c re ta ry of the Treasury. (Filed with the Division of the Federal Register, December 23, 1941) i m*r TREASURY DEPARTMENT Bureau of the P u bl ic D e b t Form PD 1732 FORM OF ADVICE TO ACCOMPANY FULL-PAID INTERIM CERTIFICATES OF 2 1/ 2 % TREASURY BONDS OF 1967-72 PRESENTED FOR EXCHANGE FOR DEFINITIVE COUPON BONDS (Indicate which) To □ FEDERAL RESERVE BANK O F _____________..._____ ___________ ___________ ___ □ TREASURY DEPARTMENT, Division of Loans and Currency, Washington, D. C. Pursuant to the provisions of Treasury Department Circular No. 675, dated December 15,1941, the undersigned presents and surrenders herewith full-paid interim certificates of the 2y 2% Treasury Bonds of 1967-72 (as listed below), and requests their exchange for a like face amount of definitive coupon bonds (in the denominations indicated), to be delivered to the undersigned at the address given. Denomination Interim certificates herewith Number of pieces Serial numbers of certificates * Face amount Definitive bonds to be issued Number of Face amount pieces $____ $50 $ $100 $500 $1,000 $5,000 $10,000 $100,000 Total amounts (must agree)_ $------------- $.------------ .* If space is not ample for listing, back of form or separate sheet may be used. Signature_________________________________________ ' (P lease p r in t o r ty p e ) Address__________________________________________ (P lease p r in t o r ty p e ) Dated_____________________ 1942. 16- 25392-1 U S . GOVERNMENT PR IN T IN G O FF IC E TREASURY BEPÀK3MS8T Washington Press Service FOE RELEASE, M0E8IM} HEWSPAPERS, Tuesday. December 23. 1941. 3 12/22A1 The Secretary of the Treasury announced last evening that the tenders for $150,000,000, or thereabouts, of 82-day Treasury bills, to be dated December 24, 1941, and to mature March 16, 1942, 'which were offered on December 19* were opened at the Federal Reserve Banks on December 22* The details of this issue are as follows: Total applied for - $352,938*000 Total accepted - 150,174*000 Range of accepted bids: High Low Average price {Excepting two tenders totaling $220*000) - 99.966 - 99.927 - 99.933 Equivalent rate e w « « of the amount bid for at the O.32O 0.295 TREASURY DEPARTMENT Washington FOR RELEASE, MORNING NEWSPAPERS, Tuesday, December 23, 19^1 ♦ 12/22/41 Press Service No. 29-23 The Secretary of the Treasury announced last evening that the tenders for $1 5 0 ,000,000, or thereabouts, Treasury bills, of $ 2-day to be dated December 24, 19^-1, and to mature March l6, 19^2, which were offered on December 1 9 , were opened at the Federal Reserve Banks on December 22, The details of this issue are as follows: Total aoplied for - $352,93^,000 Total accepted - 1 5 0 ,1 7 ^, 000 Range of accepted bids: (Executing: two tenders totaling $220,000) High - 99.966 Equivalent rate aooroximately 0,149 percent Low - 99.927 " " ‘ " 0,320 " Average Price - 99,933 " M " 0.295 H (7 ^ percent of the amount bid for at the low price was accepted) - 0 O 0 - ■ ij TREASURY DEPARTMENT INTER O FFICE COM M U N ICA TION date TO U n d e r S e c r e t a r y B ell FROM George Buffington D e c e m b e r 22, 194J A t t a c h e d is a s u g g e s t e d p r e s s re l e a s e c o v e r i n g the n e w issue of T r e a s u r y T a x S a v ings Notes, states Mr. Broughton that the c i r c u l a r w i l l be r e l e a s e d tomorrow, D e c e m b e r 23. 1 -y I s h o u l d t h e r e f o r e lifce to h a v e y o u r approval or sugg e s t i o n s f o r the release* o n . SUGGESTED PRESS RELEASE (T\ In continuing the Tax Savings Plan inaugurated in August this year, the United States Treasury will offer shortly another issue of Treasury Tax Savings Notes Series A and Series B, dated January 1, 1942, due January 1,_1944. The new notee^will he acceptable at par and accrued interest not only in payment of Federal income taxes but may be The new presented in payment of estate and gift taxes as well, /notes of both series are available in the same denominations as heretofore with the exception of the addition to Series A of $500 and $1,000 denominations. Beginning in January, Defense Savings stamps will be accepted at their face value in lieu of cash as payment for notes. This provision permits taxpayers to accumulate Defense Savings stamps and present them in payment of Tax Savings Notes in any and all denominations. Application may be made to purchase Tax Savings Notes through local banks and savings and loan associations. Applica tion may also be made direct to Federal Reserve Banks and their branches or to the United States Treasury, Washington, ^ T h e /notes provide a convenient, D. C. systematic means of saving to pay Federal income, estate, and gift taxes. Series A notes yield approximately 1.92$ and Series B approximately .48$ when used in payment of Federal incom^7 ystate, and gift taxes. TREASURY DEPARTMENT Washington FOR IMMEDIATE RELEASE Wednesday, December 24, 19^-1. Press Service N°. 29-2^ In continuing the Tax Savings Plan inaugurated in August this year, the United States Treasury will offer shortly another issue of Treasury Tax Savings Notes Series A and Series B, dated January 1, 19^2, due January 1, 1 9 ^ . The new notes as well as those heretofore issued, will be acceptable at par and accrued interest not only in payment of Fed eral income taxes but may be presented in payment of estate and gift taxes as well* The new notes of both series are available in the same denominations as heretofore with the exception of the addition to Series A of Í500 and $1,000 denominations., Beginning in January, Defense Savings stamps wall be accepted at their face value in lieu of cash qs payment for notes. This provision permits taxpayers to accumulate Defense Savings Stamps and present them in payment of Tax Savings Notes in any and all denominations. Application may be made to purchase Tax Savings Notes through local banks and savings and loan associations. Application may also be made direct to Federal Reserve/Banks and their branches or to the United States Treasury, Washington, D. C. The notes provide a convenient, systematic means of saving to pay Federal income, estate, and gift taxes. Series A notes yield approximate ly 1 .9 2 $ and Series B approximately . when used in payment of Federal income, estate, and gift taxes. -oOo- Treasury Department Division of Monetary Research Date............. To: 19 Mr. Schwarz - Room 388* i Mr. White has initialed the attached, and suggests that you have Mr. B. Bernstein initial it also. L. Shanahan MR. WHITE Branch 2058 - Room 214^ Secretary Morgenthau announced today that the arrangement of July 14, 1937, under which the Central Bank of China has been enabled to obtain dollar exchange under certain special conditions has been extended for a period of six months beyond December 31, 1941« ^This arrangement is to be distinguished from the stabiliza- ' s tion agreement oM- - .¿gf , nrnr concluded/earlier this year with the Chinese Government and the Central Bank of China, which provided for the purchase of Chinese Yuan by the United States Stabilization Fund to the amount of $50,000,000, and for the establishment by China of a United States Dollar-Chinese Yuan Stabilization Fund. TREASURY DEPARTMENT Washington FOR IMMEDIATE RELEASE. Wednesday, December 24, 19^1. Press Service No. 29-25 Secretary Morgenthau announced today that the arrangement of July 1^, 1937, under which the Central Bank of China has been enabled to obtain dollar exchange under certain special condi tions, has been extended for a period of six months beyond Dec ember 31 j 19 ^1'» This arrangement is to be distinguished from the stabiliza tion agreement concluded by the Secretary earlier this year with the Chinese G-overnment and the Central Bank of China, which pro vided for the purchase of Chinese Yuan by the United States Sta bilization Fund to the amount of $50,000,000, and for the es tablishment by China of a United States Dollar-Chinese Yuan Stabilization Fund. -oOo- A im -3during the taxable year for which the return is made, as ordinary gain or loss. Treasury Department Circular Ho. 418, as amended, and this notice, prescribe the terms of the Treasury bills and govern the conditions of their issue. Copies of the circular may be obtained from any Federal Reserve Bank or Branch ¡n¡up is SHrittgMSimBBmHB -mSBSmMWMHiiieHl s — aa— ^PBWPPWHMMWIHVSMMIBI P ALPHA' imp* g B Si * = slBSS ' :.\| - 2 - HB ' Reserve Banks and Branches, following which public announcement will be made by the v Secretary of the Treasury of the amount and price range of accepted bids. Those sub- ipi I mit ting tenders will be advised of the acceptance or rejection thereof. ill •/'•* g The Secretary ■ of the Treasury expressly reserves the right to accept or reject any or all tenders, li i whole or *** P8-7**, and his action in any such respect shall be final. Payment of ac cepted tenders at the prices offered must be made or completed at the Federal Reserve Bank in cash or other immediately available funds on December 31, 1941, provided, how« Bl ever, any qualified depositary will be permitted to make payment by credit for TreasurJ |N bills allotted to it for itself and its customers up to any amount for which it shall be qualified in excess of existing deposits when so notified by the Federal Reserve g g Bank of its District. The income derived from Treasury bills, whether interest or gain from the g sale or other disposition of the bills, shall not have any exemption, as such, and ig; loss from the sale or other disposition of Treasury bills shall not have any special ? treatment, as such, under Federal tax Acts now or hereafter enacted. The bills shall | I be subject to estate, inheritance, gift, or other excise taxes, whether Federal or State, but shall be exempt from all taxàtion now or hereafter imposed on the principal PS ; > or interest thereof by any State, or any of the possessions of the United States, or by] |Ép g any local taxing authority. For purposes of taxation the amount of discount at which % Treasury bills are originally sold by the United States shall be considered to be in- J Ilf g g terest. sis Under Sections 42 and 117 (a) (1) of the Internal Revenue Code, as amended by Section 115 of the Revenue Act of 1941, the amount of discount at which bills issued n I 3$ hereunder are sold shall not be considered to accrue until such bills shall be sold,# t redeemed or otherwise disposed of, and such bills are excluded from consideration as m & capital assets. Accordingly, the owner of Treasury bills (other than life insurance ?! companies) issued hereunder need include in his income tax return only the difference / Pi jK between the price paid for such bills, whether on original issue or on subsequent pur-1 4 chase, and the amount actually received either upon sale or redemption at maturity ¡¡IsS® r r TREASURY DEPARTMENT Washington EOR RELEASE, MORNING NEWSPAPERS, Friday, December 26, 194-1_____ • The Secretary of the treasury, hy this nubile notice, invites tenders for $ 150jOOP>000 , or thereabouts, of 76 -day Treasury hills, to he issued on a discount basis under competitive bidding. be dated December 31, 1941 The bills of this series will and will mature March 17, 1942_______________ , when the face amount will be payable without interest. They will be issued in bearer form only, and in denominations of *£1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (maturity value). Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, two o^clock p. m*, Eastern Standard time, Monday, December 29, 194-1, Tenders will not be received at the Treasury Department, Washington. Each tender must be for an even multiple of $1,000, and the price offered must be expressed on the basis of 100, %rith not more than three decimals, e. g., 99.925. may not be used. Fractions It is urged that tenders be made on the pointed forms and for warded in the special envelopes which will be supplied by Federal Reserve Banks or Branches on application therefor. I Tenders will be received without deposit from incorporated banks and trust companies and from responsible and recognized dealers in investment securi ties* Tenders from others must be accompanied by payment of 10 percent of the face amount of Treasury bills applied for, unless the tenders axe accompanied by [1 an express guaranty of payment by an incorporated bank or trust company Im m ed ia tely a f t e r th e c l o s i n g h o u r , te n d e r s w i l l be op en ed a t the Federal TREASURY DEPARTMENT Washington FOR RELEASE, MORNING NEWSPAPERS, Friday, December 26, 1941. The Secretary of the Treasury, by this public notice, invites tenders for $150,000,000, or thereabouts, of 76-day Treasury "bills, to be issued on a discount basis under competitive bidding. The bills of this series will be dated December 31., 1941, and will mature March 17, 1942, when the face amount will be payable without interest. They will be issued in bearer form only, and in denominations of $1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (maturity value }4 Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, two o ’clock p. m,, Eastern Standard time, Monday, December 29, 1941. Tenders will not be received at the Treasury Department, Washington. Each tender must be for an even multiple of $1,000, and the price offered must be expressed on the basis^of 100, with not more than three decimals, e. g., 99.925. Fractions may not be used. It is urged that tenders be made on the printed forms and forwarded in the special envelopes which will be supplied by Federal Reserve Banks or Branches on application therefor. Tenders will be received without deposit from incorporated banks and trust companies and from responsible and recognized dealers in investment securities. Tenders from others must be accompanied by payment of 10 percent of the face amount of Treasury bills applied for, unless the tenders are accompanied by an “express guarantyv.bf ' payment .by .an,.,incdrporatBd.ybank or trust company. Immediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, following which public announcement will be made by the Secretary o f .the Treasury of the amount and price range of accepted bids. Those submitting tenders will be advised of the acceptance or rejection thereof.' The Secretary of the Treasury expressly reserves the right to accept 29-26 - 2 - or reject any or all tenders, in whole or in part, and his action in any such respect shall be final. Payment of accepted tenders at the prices offered must be- made or completed at the Federal Reserve Bank in cash or other immediately available funds on December 31, 1941, provided, however, any qualified depositary will be permitted to make payment by credit for Treasury bills allotted to it for itself and its customers up to any amount for which it shall be qualified in excess of existing deposits when so notified by the Federal Reserve Bank of its District. The income derived from Treasury bills, whether interest or gain from the sale or other disposition of the bills, shall not have any exemption, as such, and loss from the sale or other disposition of Treasury bills shall not have any special treatment, as such, under Federal tax Acts now or hereafter enacted. The bills shall be subject to estate, inheritance, gift, or other excise taxés, whether Federal or State, but shall be exempt from all taxation now or hereafter imposed on the principal or interest thereof by any State, or any of the possessions of the United States, or by any local taxing authority. For purposes of taxation the amount of discount at which Treasury bills are originally sold by the United States shall be considered to be interest. Under Sections 42 and 117 (a) (!' of the Internal Revenue Code, as amended by Section 115 of the Revenue Act of 1941, the amount of discount at which bills issued hereunder are sold shall not.be considered to accrue until such bills shall be sold, redeemed or otherwise disposed of, and such bills are excluded from consideration as capital assets. Accordingly, the owner of Treasury bills (other than life insurance companies) issued hereunder need include in his income tax return only the difference between the price paid for such bills, whether on original issue or on subsequent purchase, and the amount actually received either upon sale or redemption at maturity during the taxable year for which the return is made, as ordinary gain or loss. Treasury Department Circular No. 418, as amended, and this notice, prescribe the terms of the Treasury bills and govern the conditions of their issue. Copies of the circular may be obtained from any Federal Reserve Bank or Branch. - 60 o PRESS RELEASE The Bureau of Customs announced today that equal opportuni ties will be afforded at all customs ports of entry for filing entries and withdrawals for consumption covering molasses and sugar sirups, not specially provided for, which contain soluble nonsugar solids (excluding any foreign substance that may have been added) equal to more than 6 per centum of the total soluble solids, at the opening moment of the tariff rate quota for the calendar year 1942, provided in the trade agreement with the United Kingdom. The collectors of customs have been instructed that no entries or withdrawals for consumption covering these commodities shall be filed on January 2, 1942, before 12 noon Eastern Standard Time, 11 A. M. Central Standard Time, 10 A. M. Mountain Standard Time and 9 A. M. Pacific Standard Time. Entries and withdrawals for consumption covering quota class molasses and sugar sirups may be accepted at the lower rate of duty provided for in the trade agreement, provided delivery permit is not released pending determination of their quota status. If delivery permit is desired before such determination, importers of these commodities will be required to deposit estimated duties at the full rate. Excessive duties deposited on entries or withdrawals found to be within the quota will be refunded. (Prepared - Appeals and Protests (Quota Unit) Bureau of Customs) V '¿L £ ¿A 4> 1^ y^ r ¿> / / . %J. /?. ZtT' TREASURY DEPARTMENT Washington FOR IMMEDIATE RELEASE Wednesday, December 24, 1941. Press Service No. 29-27 The Bureau of Customs announced today that equal opportuni ties will be afforded at all customs ports of entry for filing entries and withdrawals for consumption covering molasses and sugar sirups, not specially provided for, which contain soluble nonsugar solids (excluding any foreign substance that may have been added) equal to more than 6 per centum of the total soluble solids, at the opening moment of the tariff rate quota for the calendar year 194-2, provided in the trade agreement with the United' Kingdom. The collectors of customs hqve been Instructed that no entries or withdrawals for consumption covering these commqdities shall be filed on January 2, 1942, before 12 noon Eastern Standard Time, 11 A. M. Central Standard Time, 10 A. M. Mountain Standard Time and 9 A. M. Pacific Standard Time. Entries and withdrawals for consumption covering quota class molasses and sugar sirups may be accepted at the lower rate of duty provided for in the trade agreement, provided delivery per mit is not released pending determination of their quota status. If delivery permit is desired before such determination, import ers of these commodities will be required to deposit estimated duties at the full rate. Excessive duties deposited on entries or withdrawals found to be within the quota will be refunded. oOo TREASURY DEPARTMENT Washington FOR IMMEDIATE RELEASE Wednesday, December 24, 1941 Press Service Servie» No. 2 ^ - ^ / The Minister of Denmark to the United States has informed the Secretary of the Treasury that coupons falling due January 1, 1942, on Kingdom of Denmark 6% External Gold Bonds, due January 1, 1942 will not be paid in dollars if held by Denmark or persons within Denmark. The Danish Minister has requested the assistance of the Secretary of the Treasury in making this limitation effective. In view of this request, the Treasury Department today issued Public Circular No. 9, which revokes all outstanding licenses and authori zations to the extent that they would otherwise permit sale, presentation for payment or redemption, or other disposition, on behalf of Denmark or persons within Denmark, of such coupons and other Danish securities. The text of the letter from the Danish Minister is as follows: "I beg to inform you that the Kingdom of Denmark is desirous of paying the coupons falling due on January 1, 1942, of the Kingdom of Denmark 20-Year 6% External Gold Bonds. It is planned to exclude from payment in dollars the coupons pre sented on behalf of Denmark or persons within Denmark. BIt will facilitate this program if appropriate restrictions are imposed upon transactions and dealings for the account of Denmark or persons within Denmark in Danish securities. Accordingly, I would appreciate your imposing the necessary re strictions .n TREASURY DEPARTI [EUT Washington FOR rJMEDI ATE RELEASE Wednesday, December 24, 1941 Press Service No. 29-28 The Minister of Denmark to the United States has informed the Secretary of the Treasury that coupons falling due January E 1942, on Kingdom of Denmark 5 % External Gold Bonds, due January 1, 1942 will not be paid in dollars if held by Denmark or persons within Denmark. The Danish Minister has requested the assistance of the Secretary of the Treasury in making this limitation effec tive. In view of this request, the Treasury Department today issued Public Circular No. 9, which revokes, all outstanding licenses and authorizations to the extent that they would othervrise permit sale, •presentation, for payment or redemption, or other disposition, on behalf of Denmark or persons within Denmark, of such coupons and other Danish securities. The text of the letter from the Danish Minister is as follows: beg to inform you that the Kingdom of Denmark is desirous of paying the coupons failing due on January 1, 1942, of the Kingdom of Denmark 20-Year 6 % External Gold Bonds. It is planned to exclude from payment in dollars the coupons presented on behalf of Denmark or persons within Denmark. nIt will facilitate this program if appropriate restrictions are imposed upon transactions and dealings for the account of Denmark or persons within Denmark in Danish securities. Accordingly, I would appreciate your imposing the necessary restrictions.tf ■oOo1 Truee iumired and fifty thousand post m presenting instructions on filing of tax retons are being prepared by the Treasury Department for distribution to corporations through the sixty^four offices of Cob* lectors of Internal revenue* The new t o schedules require the filing of returns by all single persons taring gross incogs of |?$0 or more, .and all married person» having gross incomes of f1,500 or sore* {.A copy o f the fo ld e r I s attached*) Tmimm. m p A i m m r Weshtogtoii Press Service Ho* *2ow to File lair Income 'Tax the Stopl© Way,1* a folder containing illustrations of the proper laethod to he used in filling out the sis»» plified income tax return Fora 1040A and a table showing; asounts payable la various iiusooo brackets, will be made available to more than 15,000,000 potential taxpayers shortly after January 1 # the Treasury Department announced today* These folders will be mailed along 'with Individual Income fax re» turns to all personas who filed during the 1941 period* to additional six million copies are being printed for distribution through mtserous channels to persons who will file -their first returns during the casing period* These channels include Savings and Loan Asso ciations, labor unions, banka and corporatioxia• The cooperation of sev eral Government agencies and business associations is also being sought In an effort to place the leaflet in the hands of 11 taxpayers as soon after Hew Year*© Bay a© possible* Tl^ .groups mentioned are being asked to inform the public that mple quantities of the folder will be available at the offices of Collectors of Internal Bevenue throughout the Hatlon* Arrangements are being mads with the United States Chamber of Coaacres, tii® national Association of Manufacturers, and the toarlcan 3-ankers Association to carry & presentation of the folder in the Jan» uaxy issues of their publications* flic folder shows that small taxpayers using Form 1040 A will be required to fill to only six Itents* These staple steps are shown by numbers to the iXlustretion, and the taxpayer 1 © able to read directly from the table the amount of tax he will pay* 1 f\d \ \ Washington Press Service Ho* «low to Pile lour Income fax the Simple lay»1* a folder containing illustrations of the proper method to be used la filling out the sia~ plifiod income tax return Form 10/jQA sad a table showing amounts payable in various income brackets, will be made available to more than 15,000,000 potential taxpayers shortly after January 1 , the Treasury Department announced today* These folders will be mailed along with Individual Income Tax re~ turns to all persons who filed during the 1941 period* An additional six million copies are being printed for distribution through numerous channels to persons who will file their first returns during the costing period* These channels Include Savings and Loan Asso ciations, labor unions, banks sad corporations* The cooperation of sev eral Government agencies and business .associations is also being sought in an. effort to place the leaflet in the- hands of all taxpayers as soon after How Year*© fey as possible* The groups mentioned are being asked to inform the public that ample quantities of tlm folder will be available at the offices of Collectors of Internal .Revenue throughout the nation* Arrangements are being made with the United States Chamber of Com merce, the national Association of Manufacturers, and the American Bankers Association to carry a presentation of the folder in the Jan uary issues of their publications* The folder shows that small taxpayers using Form 1040' A will be required to fill in only six Items* These simple stops are shorn fey numbers in the illustration, and the taxpayer is able to road directly from the table the amount of tax he will pay* Three hundred and ftf% thousand post r# presenting instructions os the filing of tax returns are being prepared Jay" the Tresmiry Bepartseot for distribution to corporations through the sixty-four office# of Col lectors of Internal E©r«Biis* The new tax schedules require the filing of return# by all single parsons haring .gross incomes of #730 or more, and all married., persons haring gross income# of 11,500 or more. (A copy of the folder is attached*) temsobï i w a k m i t Washington Press Service Ko. «low to File lour Income fax the Simple Way,« a folder containing illustrations of the proper method to be used In filling out the sis*» pllfied income tax return Form 1040A and a table showing amounts payable la Various income brackets, will be made available to more than 15,000,000 potential taxpayers shortly after January 1, the Treasury Department announced today. These folders will be nailed along with Individual Income Tax re turns to »11 persons who filed during the 1941 period. An additional six million copies are being printed for distribution through numerous channels to persons who will file their first returns during the coming period. These channels include Savings and Doan Asso ciations, labor unions, banks and corporations* The cooperation of sev eral Government agencies and business associations is also being sought in an effort to place the leaflet in the hands of .11 taxpayers as soon after Hew Yearns Day as possible. The groups mentioned are being asked to inform the public that ample quantities of the folder will be available at the offices of Collectors of Internal Revenue throughout the nation* Arrangements are being made with the United States Chamber of Com merce, the National Association of Manufacturers, and the American Bankers Association to carry a presentation of the folder in the Jan uary issues of their publications* The folder shows that small taxpayers using Fora 1040 A will be required, to fill in. only six items* These simple steps are shown by numbers in the illustration, and the taxpayer is able to read directly from the table the amount of tax he will pay. II iiisiii „ y - , . 1 It-1 Single copy to be mailed to 000 now«paper* on or about January 1, 1942, with press release to he prepared by U. S. Treasury, Public Halation* Division. it) AMD LOAM ASSOCIATIONS * Request that Covcmor, Ftieral' ^ont loanBank System, send 1 © coy of the folder to each saving* and loan associaUon with covering letter similar to the one sent out by the Federal Deposit Insurance Corporation* mm (g) Arrangements have already been made with American Banker* Association publication "Banking* t© carry In January issue double page presentation of folder stating in the text of the article that additional copies may be secured through the local office of Collector of Internal Revenue* f* 360,000 posters now in preparation to be distributed on ) or about January 1* 1942, by the 64 office* of the Collector of Internal Revenue to corporation«. 3* Ask the American Newspaper Publishers Association to secure cooperation of all newspapers beginning January 1, 1942, In running daily tax brevities on front page above headline a* followss ■ ONLY DAYS TO FILE YOUR INCOME TAX RETURN Consult the nearest Collector of Internal Revenue Tax Information Bags___ _ _ _ _ Possibility is being considered of having Walt Disney develop on® or more animated ssovie short* for distribu tion to as many theatres as possible after January 1, 1942. m Itis pfl «»•TO M/18/41 I ifiji• December IS, Commits sloner Hei w r i n g beorge Buffington mrd p B iwIPitev I I pip Ii II»* mMwmm mmsti jy glllra ||*V~JC'Jv‘ m The following reduces to writing our conversation in four offlee yesterday* 1« Suggest printing at least El.000.000 folders #How to File Tour Income Tex HUE SIMPLE WAT#* 15,000,000 copies to he nailed on or about January 6, 1942, with Individual Inooae Tax , Heturna» x 6,000,000 to be available for distribution <v through the following channels on or about January 1, 1942! (a) MM..S* Request that Federal Deposit In surance Corporation send at least one copy with covering letter to all bants In the country, exclusive of national bants. Suggest that the Comptroller of the Currency send a similar letter with enclosure to all National bants* Cover ing letter to state that additional ooples are available through the local offlee of Collector of Internal Revenue* i (b) M X Q .itc * Commissioner of Internal Revenue will notify various unions that copies of the folder are avsliable at local offices of Collector of Internal Revenue• (o) S$iE2SSI12Si* Request that U. 3* Chamber of Commerce and national Association of Manufacturers include item In their January bulletin stating that copies of the folder may be secured from local offices of Collector of Internal Revenue* §¡§1 K§K®M<ipg& m-^ . M0SM li.»¿ai (d) Single copies to be mailed to 4,000 business publications, house organs, and company magetines, together with press release, requesting that contents be pub lished in January end February issues* Press release and covering letter to be prepared by Internal Revenue Department and sent to A* E* Wilson, Chief, Division of Savings Bonds, for mailing* tessmter W ê imi ¥MMt TO s $ # s r g s BultlAfftoft ' Ssmrsfmrar tergsaitem Mrs. tisis i* 1 * t A i Mr* Blotkÿb Mr* fol#/ Ir. Mr. ü m v m Mr* Ha&s Mr* tote Mr* ’•“ "“Kir* Mr. Mr. Mr. Morris Sotemr* Bulliw a Thompson üilsi SupplsaoBltiMs mir sottrateli» of Dseomosr &, i t e m u e lite s m p i i f l s s I t e s # tte € o f t l s i r l t e i l n g i t e fo lá sr “Mw lo m e Tour Xm m * Ta* f i s SIMPLE KA&» effort to stimulate taxpayers to ^ JThree hundred and fifty thousand posters presenting instructions on the filing of tax returns are being prepared by the Treasury Department for distribution to corporations through the^S^bffices of Collectors of Internal Revenue. The new tax schedules require the filing of returns by all single persons having gross incomes of $750 or more, and all married persons having gross incomes of $1,500 or more. (A 0 £ V '•How to File E> Your Income Tax the Simple Way," a folder containing i j-Jy2aam ^ illustrations oji the proper method to he ompieycd in owecnt'igg the 1rkte tvn J tawf ir c f u f O simplified^! Form 1040A and a table showing amounts payable in various income brackets, ■péii#*, will be made available to more than 15,000,000 potential taxpayers shortly after January lefe, the Treasury Department announced today. ^These folders will be mailed along with Individual Income Tax returns to all persons who filed M00SS& during the 1941 period. An additional six million copies are being printed for distri bution through numerous channels to persons who will file their first returns during the coming period. These channels include Savings and Loan Associations, ^.bor Imions, banks and corporations* cocp&§ i at eration of acitem government agencies and business associations is^being in an effort to place the leaflet in the hands of all taxpayers as soon after ttw New Year^^^ossible. frtie groups mentioned are being ofi -fAA P a fe/ef* asked to inform the public that ample quantitiesAwill be available Me offices of Collectors of Internal Revenue throughout the Nation. /Arrangements )*wtm sfam ba&ar made with the United States Chamber of Commerce, the National Association of Manufacturers and the American Bankers Association to carry a presentation of the folder in the January issued of their publications. & Trh^ Th^folder Itoaieerte's that^taxpayers using3B3t Form 1040A will AM. be required to fill^only six itemSygOdBM4jiMMM&££iiul^w» These simple steps are shown by numbers in the illustration, and the tax- payer is able to read directly from the table the amount of tax he will pay. Three hundred and fifty thousand posters presenting instructions on the filing of tax returns are being prepared by the Treasury Department for distribution to corporations through the sixty-four offices of Col lectors of Internal Revenue* The new tax schedules require the filing of returns by all single persons having gross incomes of $750 or more, and all married persons having gross incomes of Si. *500 or more. TREASURY DEPARTMENT C b u U * 1 f ' i 7 "How to File Your Income Tax the Simple Way,” a folder containing illustrations of the proper method to be used in filling out the sim plified income tax return Form 1040A and a table showing amounts payable in various income brackets, will be made available to more than 15,000,000 potential taxpayers shortly after January 1, the Treasury Department announced today. These folders will be mailed along with Individual Income Tax re turns to all persons who filed during the 1941 period. An additional six million copies are being printed for distribution through numerous channels to persons who will file their first returns during the coming period. These channels include Savings and Loan Asso ciations, labor unions, banks and corporations. The cooperation of sev eral Government agencies and business associations is also being sought in an effort to place the leaflet in the hands of all taxpayers as soon after New Year’s Day as possible. The groups mentioned are being asked to inform the public that ample quantities of the folder will be available at the offices of Collectors of Internal Revenue throughout the Nation. Arrangements are being made with the United States Chamber of Com merce, the National Association of Manufacturers, and the American Bankers Association to carry a presentation of the folder in the Jan uary issues of their publications. The folder shows that small taxpayers using Form 104.0 A will be required to fill in only six items. These simple steps are shown by numbers in the illustration, and the taxpayer is able to read directly from the table the amount of tax he will pay. THE USE OF SIMPLIFIED INCOME TAX RETURN EXPLAINED PORM 1040A simplifies filing income tax returns for millions of small taxpayers. If you use this simple Form 1040A you can prepare your return in a few minutes. The filing of a return isi required by all single persons having gross incomes of $750 or more, and for all married persons having gross incomes of $1,500 or more. Form 1040 A m ay be used by persons who are required to file returns but who have gross incomes of not more than $3,000 from salaries, wages, compensation for personal services, divi dends, interest, rent, annuities, and royalties only. The tax shown on Forifi 1040A automatically makes provision for deductions and family status. The six simple steps required are shown by numbers in the illustration on the inside! pages. If you are not eligible to use Form 1040A, or do not choose to use it, then you should file on Form 1040. Illustrations of the amount of tax on 1941 incomes for persons using Form 1040 are shown on the last page of this folder. FORM 1040 A Just six items to fill in OPTIONAL INDIVIDUAL INCOME TAX RETURN THISRETURNMAYBEFILEDINSTEADOFFORM1040BY CITIZENSORRESIDENTALIENSIFGROSSINCOME ISNOTMORETHAN$3,000ANDISONLY FROMSOURCESSTATEDHEREON — PRINT NAME AND HOM E OR RESIDENTIAL ADDRESS PLAINLY BELOW Yofir name, address, and occupation PLA CE C H E C K M A R K (✓ ) IN T H E A PPL IC A B L E B LO C K □ B EL O W Single (and not head of family) on last day of year......... LJ Do not write in three spaces Married but not living with husband or wife (and not head of family) on last day of year....................... J ...... O (Cashier's Stamp) ... .......... (/ (Name) (Uh pveeHantsofbotlihottaapStlsift,tfdrea«jointreturn) ..................... (County) ...................... COLUMN A COLUMN B Bui dal ite r Yaw Us is Y«ur t u i. F Incarna idkjatl talas (¡Isaa S) i* COLUMN A COLUMN B Ovar Sul Ml u m Ystir las is Yaur las is IF Incarna aubjact ta la s (ita* S) il (h e r But nat a ttr COLUMN A Yaur U s is COLUMN B Yaur litla 860 81 8750 80 80 8 1 ,5 0 0 8 1 ,5 2 6 863 81 8 2 ,2 5 0 8 2 ,2 7 5 3128 775 l 0 1 ,5 2 5 1 ,3 5 0 65 2 2 ,2 7 5 2 ,3 0 0 130 63 D EPEN D EN TS ON LAST DAY O F YEAR 776 800 2 0 1 ,5 5 0 1 ,5 7 5 68 3 2 ,3 0 0 2 ,3 2 5 132 66 Lilt persons deriving their thief support from you (other than husband or wife) under 18 years of age or mentally or physically incapable of self-support 800 825 3 0 1 ,5 7 5 1 ,6 0 0 70 5 2 .3 2 5 2 ,3 5 0 134 67 825 850 5 0 1 ,6 0 0 1 ,6 2 5 72 6 2 ,3 5 0 2 ,3 7 5 137 69 850 875 7 0 1 ,6 2 5 1 ,6 5 0 74 7 2 ,3 7 5 2 ,4 0 0 139 71 875 900 9 0 1 ,6 5 0 1 ,6 7 5 76 9 2 ,4 0 0 2 .4 2 5 141 73 900 925 11 0 1 ,6 7 5 1 ,7 0 0 78 11 2 ,4 2 5 2 ,4 5 0 143 76 926 950 14 0 1 .7 0 0 1 ,7 2 5 80 13 2 ,4 5 0 2 ,4 7 5 145 78 950 975 16 0 1 ,7 2 5 1 ,7 5 0 83 15 2 .4 7 5 2 ,5 0 0 147 80 1 ,7 5 0 1 .7 7 5 85 17 2 ,5 0 0 2 ,5 2 5 150 82 2 ,5 2 5 2 ,5 5 0 152 84 2 ,6 7 5 154 86 U If yaara of aga ar t w , gif» t N M I« luting G R O S S IN C O M E LESS ALLOWANCE F O R D EPEN D EN TS 1. Salary, wages, and compensation for personal services............................... - ......... 2. Dividends, interest, rent, annuities, and royalties.............................................. ...... 3. Total...... 4 ............................. .......................................... ............................-............ 4. Less: $400 for each dependent............................................ ......... ...... (If you are the head of a family (see definition on other side) only Secauie of dtpindtrS{t) listed about, ! listed dependent txcepl one) 5. INCOME SUBJECT TO TAX........................................................................................ TA X 6. Tax to be paid (from Column A or B of table on other side).. 1/we swear (or affirm) that this return has been examined b)t me/us, and, to the best of my/our knowledge and belief, is a true, correct, and complete return, made in good faith, for the taxable year stated, pursuant to the Internal Revenue Code and regulations issued under authority thereof; and that I/'we had no income from sources other than stated hereon. Subscribed and sworn to b y ................ ..................... ................... before me this ............day o f, . 1942. (Signtturlandtill*ofofficeradministerineoath) Read your tax directly from the table IF YOU CHECKED ONE OF ABOVE, FIND YOUR TAX IN COLUMN B 750 List your income Indicate your family status IF YOU CHECKED ONE OF ABOVE, FIND YOUR TAX IN COLUMN A Cash-Cheeh-M . 0. Na m «I dapandant Subtract your credit for dependents Married and living with husband or wife on last day of year but each filing separate returns.......................... Q Over (Stale) Married and living with husband on wife on last day year, and this return includes all income of husband % / and wife................................... ............ ........................... IFl Head of family (a single person or married person not living with husband or wife who exercises family •control and supports closely connected dependent relative(s).in one household) on last day of year....... Q IF Ik m m subjacl Iotas (¡lam S) it (Street end lumber, a rare! rente) OctlipttÌM... Your dependents 1941 UNITED STATES (Signature) (Ifthiau ajointreturn,itmutibesignedbybothhusbandandwife. Itn yesworntobeforeaproperofficerbythespousepreparingthereturn.) An income tax return is required to be filed by single persons having a gross income (item 3 above) of $750 or more and mar ried persons having a gross income of $1,500 Or more. A husband and wife may make a joint return on this form if their combined gross income is not more than $3,000. A separate return may be made on this form if the gross income of the one filing the re turn is not more than $3,000. If this return is used, it must be filed with the Collector of Internal Revenue for your district on or before March 15, .1942. The tax may be paid in equal quarterly installments commencing March 15, 1942. Pay tax. if any, to the Collector and if payment is made by check or money order, make payable to “Collector of Internal Revenue." \ 975 1 ,0 0 0 IS 0 1 ,0 0 0 1 ,0 2 5 20 0 1 ,0 2 5 1 ,0 5 0 22 VÉ ^ I t ,0 5 0 1 ,0 7 5 24 i m a 4 r " S L O iT o o l . '^ l > * ^ 2 9 1«Asm1» 1 ,8 2 5 1 ,8 0 0 1 ,8 2 5 1 ,8 5 0 1 ,1 0 0 t * ' 89 1 ,8 5 0 91 1,575» 93 1 ,9 0 0 96 2 ^ k 2 ,5 5 0 24 | 2 ,5 7 5 2 .6 0 0 156 89 " I S T .S 2 .6 0 0 2 ,6 2 5 158 91 2 ,6 2 5 2 ,6 5 0 160 93 30 2 ,6 5 0 2 ,6 7 5 163 93 100 32 2 ,6 7 5 2 ,7 0 0 165 97 1 ,9 7 5 102 35 2 .7 0 0 2 .7 2 5 167 99 1 .9 7 5 2 ,0 0 0 104 3T 2 .7 2 5 2 .7 5 0 169 102 0 ^ r ■®P f f l.1 3 0 31 0 1 ,9 0 0 " Ì f 1 ,1 7 5 33 0 1 .9 2 5 1 ,9 5 0 1 ,2 0 0 35 0 1 .9 5 0 1 ,2 2 5 37 0 1 ,2 2 5 1 ,2 0 0 39 0 2 ,0 0 0 2 ,0 2 6 106 39 2 ,7 5 0 2 ,7 7 5 172 104 1 ,2 5 0 1 ,2 7 5 42 0 2 .0 2 5 2 ,0 5 0 109 41 2 ,7 7 5 2 .8 0 0 174 106 1 ,2 7 5 1 ,3 0 0 44 0 2 .0 5 0 2 ,0 7 5 111 43 2 ,8 0 0 2 .3 2 5 177 108 1 ,3 0 0 1 ,3 2 5 46 0 2 ,0 7 5 2 ,1 0 0 113 45 2 ,8 2 6 2 ,8 5 0 180 110 1 ,3 2 5 1 ,3 5 0 48 0 2 ,1 0 0 2 .1 2 5 115 48- 2 ,8 5 0 2 ,8 7 5 183 112 1 ,3 5 0 1 ,3 7 5 50 0 2 ,1 2 5 2 ,1 5 0 117 50 2 ,8 7 5 2 ,9 0 0 186 114 1 ,3 7 5 1 ,4 0 0 52 0 2 ,1 5 0 2 ,1 7 5 119 62. 2 .9 0 0 2 .9 2 5 189 117 1 ,4 0 0 1 ,4 2 5 55 0 2 ,1 7 5 2 ,2 0 0 122 64 2 ,9 2 5 2 ,9 5 0 191 119 1 ,4 2 5 1 ,4 5 0 57 0 2 ,2 0 0 2 ,2 2 5 124 66 2 ,9 3 0 2 .9 7 5 194 121 1 ,4 5 0 1 .4 Ì5 59 0 2 ,2 2 5 2 ,2 6 0 12« 58 2 ,9 7 5 3 ,0 0 0 197 123 1 ,4 7 5 1 ,5 0 0 61 0 The income to be reported in this return is gross income (not including income which is wholly exempt from income tax) without ahy deductions. The taxes in the above table are such that they generally compensate for deductions and credits not allowable if this form is used. I.».COVISNUtSt MINTING C 16- 26318-1 FORM 1040 A , FRONT FORM 1040 A , BACK On the inside of this folder y<3Ti wulfihd a sam ple of the new, sim plified Form 1040 A, with directions for using it. If you are not eligible to use the simplified form, 1040 A, or if you prefer not to use it, then Form 1040 must be filed. The following table shows how much you will have to pay in individual income tax on 1941 net income before deduction of personal exemptions and credit for dependents from salaries and wages of selected sizes if y o u use Form 1040. *Net income fromsalary or wages Tax for marriedpersonliving with Taxfor single husbandor wife person, not headof family—No No pend 2depend* 3depend dependents depend 1de ents ents ent ents $ 750_ _ _ 800_ _ _ 900_ _ _ $3 11 1,000_ _ _ 1,100_ _ _ 1,200_ _ _ 1,300_ _ _ 1,400_ _ _ 1,500_ _ _ 1,600_ _ _ 1,700_ _ _ 1,800_ _ _ 1,900_ _ _ 21 31 40 50 59 69 79 88 98 107 $6 13 23 32 _ _ 2,000_ 2,100_ _ _ 2,200_ _ _ _ _ 2,300_ 2,400_ _ _ 2,500_ _ _ 117 127 136 146 155 165 42 52 61 71 80 90 $6 12 21 31 40 50 $6 12 _ _ 3,000_ 3,500_ _ _ _ _ 4,000_ 4,500_ _ _ 221 284 347 410 138 186 249 312 98 146 197 260 58 106 154 208 5,000_ _ _ 6,000_ _ _ 483 649 375 521 323 453 7,000___ 8,000___ 9,000___ 10,000___ 12,000___ 14,000___ 16,000___ 18,000___ 20,000___ 22,000___ 24,000___ 825 1,031 1,247 1,493 2,035 2,657 3,354 4,112 4,929 5,807 6,744 687 873 1,079 1,305 1,817 2,409 3,084 3,819 4,614 5,469 6,384 619 789 995 1,205 1,701 2,277 2,940 3,663 4,446 5,289 6,192 HOW TO 1 FILE YOUR INCOME TAX TH E SIM P LE WAY As a service to taxpayers, I have had prepared the attached information to help you in filing your income tax return for this year. $18 66 114 162 271 219 397 551 717 911 1,117 1,597 2,157 2,805 3,516 4,287 5,118 6,009 345 483 649 827 1,033 1,497 2,041 2,673 3,372 4,131 4,950 5,829 *Net income after allowable deductions, but before deduction of personal exemptions and credit for de pendents. 16- 25318-1 If you wish any additional information, I suggest you go to the nearest Collector of Internal Revenue who, I am sure, will be glad to answer your questions. « *■ TREASURY DEPARTMENT Washington FOR RELEASE, MORNING NEWSPAPERS, Sunday, December 28, 19^-1. Press Service No. 29-29 12/26/il ’’Row to File Your Income Tax the Simple Way,,f a folder containing illustrations of the propfeN^rthod to be used in filling out the simplified income tax return Form 104-0A and a table showing amounts payable in various income brackets, will be made available to more than 15 ,000,000 potential taxpayers shortly after January 1, the Treasury Department announced today, ■ These folders will be mailed along with Individual Income Tax returns to all persons who filed during the 19^1 period. An additional six million copies are being printed for distribution through numerous channels to persons who will file their first returns during the coming period. These channels include Savings and Loan Associations, labor unions, banks and corporations. The cooperation of several Government agencies and business associations is also being sought in an effort to place the leaflet in the hands of all taxpayers as soon after New Year’s Day as possible. The groups mentioned are being asked to inform the public that ample quantities of the folder will be available at the offices' of Collectors of Internal Revenue throughout the Nation, Arrangements are being made with the United States Chamber of Commerce, the National Association of Manufacturers, and the American Bankers Association to carry a presentation of the folder in the January issues of their publications. The folder shows that small taxpayers using Form 10^-OA will be required to fill in only six items. These simple steps are shown by numbers in the illustration, and the taxpayer is able to read directly from the table the amount of tax he will pay. Three hundred and fifty thousand posters presenting instruc tions on the filing of tax returns are being prepared by the Treasury Department for distribution to corporations through the sixty-four offices of Collectors of Internal Revenue. The h-ew tax schedules require the filing of returns by all single persons having gross incomes of 175^ or ®ore, and all married persons having gross incomes of $1,500 or more. (A copy of the folder is enclosed. ) — oO o— TREASURY DEPARTMENT Washington FOR IMMEDIATE RELEASE, Satm-day«, December 2?. 19A1 Press Service No. ¿ 7 - 3 0 The President last night issued an Executive Order freezing Hong Kong assets in the United States. This action was taken as the result of the fall of Hong Kong into Japanese hands. Under the new Executive Order all financial and trade transactions in which Hong Kong interests are involved are brought under the control of the Government and criminal penalties for any violations are imposed. The new Executive Order also provides for the automatic freezing of the assets of any other territory in case it should be occupied or overrun by the military, naval or other forces of the Axis. TREASURY DEPARTMENT Washington FOR IMMEDIATE RELEASE, Saturday, December 27, 1941 Press Service No. 29-30 ihe Presiaent last night issued an Executive Order freezing m g Kong assets in the United States. This action was taken as the result of the fall of Hong Kong into Japanese hands. Under the new Executive Order all financial and trade transactions in which Hong Kong interests are involved are brought under the control of the Government and criminal penalties for any violations are imposed. The new Executive Order also provides for the automatic freezing of the assets of any other territory in case it should be occupied or overrun by the military, naval or other forces of the Axis. EXECUTIVE ORDER HO, 8998 AMENDMENT OF EXECUTIVE ORDER NO. 8389 OF APRIL 10, 1940, AS AMENDED Ö ÌÌHM P By virtue of the authority vested in me by Sections 3(a) and 5(b) of the Trading with the enemy Act of October 6, 1917 (40 Stat. 415), as amended by Title III of the First War Powers Act, 1941 (Public No. 354, 77th Congress), and by virtue of oil other authority vested in me, I, FRANKLIN D. ROOSEVELT, RESIDENT of the UNITED STATES OF AMERICA, do hereby amend xecutive Order No. 8389 of April 10, 1940, as amended, in he following respects: (1) By changing the period at the end of subdivision (1) of section 3 of such Order to a semi-colon and adding the following new subdivision thereafter: (m) June 14, 1941— Hong Kong. (2) By amending paragraph B of section 5 of such Order to read as follows: B. The term »United States» means the United States and any place subject to the jurisdiction thereof, and the term "continental United States" means the states of the United States, the District of Columbia, and the Territory of Alaska; provided, however, that for the pur poses of this Order the term "United States" shall not be deemed to include any territory included within the term "foreign country" as defined in paragraph D of this section. (3) By'substituting the following in lieu of subdivision (iii) of paragraph D of section 5: (iii) Any territory which on or since the effective date of this Order is controlled or occupied by the military, naval or police forces or other authority of such foreign country; (iv) Any person to the extent that such person is, or has been, or to the extent that there is reasonable cause to believe that such person is, or has been, since such effective date, acting or purporting to act directly or indirectly for the benefit or on behalf of any of the foregoing. Hong Kong shall be deemed to be a foreign country within the meaning of this subdivision. THE WHITE HOUSE, December 26, 1941 FRANKLIN D. ROOSEVELT TREASURY DEPARTMENT Washington FOR IMMEDIATE RELEASE, Saturday, December 27, 1941 Press Service No • ^ I In view of the occupation of Hong Kong, and the freezing of Hong Kong assets by the President, the Treasury Department has issued Public Circular No# 10, which revokes certain general licenses which specifically relate to Hong Kong# The public circular also has the effect of blocking the accounts of all banks in Hong Kong and in occupied China, and of preventing the offices in Hong Kong and occupied China of such banks from financing trade and handling remittances between the United States and China TREASURY DSPART’.IEIIT Washington -ri A n i 1 tat A r*PI? Uit tX' i-t rli- .i-"in L j jj 1il 1 ill Service m * O f9-31 Pre; ¿S3ITT T? A Q If I b ' J - j i - J l l i X x O J-J Saturday/ December 27, 1941 In view of the o ccupaticin of I:[ong Kong, and freezing of Hong Kong assets b?r the IResident, the Treasury Deoartment hiis issued Publies Circular T:o, wliieli revokes certain general licenses which specifically relate to Hong Kong. The public circular also has the effect of blocking the accounts of all banks in Hong Kong and in occupied China, and of preventing the offices in Hong Kong and occupied China of such banks from financing trade and handling remittances between the United States and China, -ôOô- TREASURY DEPARTMENT Office of the Secretary December 26, 1941 PUBLIC CIRCULAR NO. 10 UNDER EXECUTIVE ORDER NO. 8689, APRIL 10, 1940, AS AMENDED, AND REGULATIONS ISSUED' PURSUANT THERETO, RELATING- TO TRANSACTIONS IN FOREIGN EXCHANGE, ETC,» 1* G-eneral License No. 57 is hereby revoked. 2. The offices within Hong Kong and occupied China of banks named in Schedule A of (General License No. 58, shall, as of the date herepf, cease to be appointed banks, and, as of the date hereof, such offices shall also cease to be generally licensed nationals within the meaning of (General Licenses Nos, 59, 60,-or 61, a n d ’such general licenses are. to such extent hereby revoked. 3* .G-eneral License No. *16 is hereby amended in. thé following respects: 4, •„ ' * . .(a) The word HHong K o n g ” is deleted from sub division (a) cf paragraph (1) thereof; and (b) The words ’’Hong K o n g ” and ’’Penang*’ are deleted from subdivision (b) of paragraph (l) thereof, Subparagraph (a) of paragraph (3) of G-eneral License No. 53 is hereby amended in the following respects: (1) A semicolon is substituted for the period at the end of item (x) thereof; and (2) The following proviso to all of the pro visions of subparagraph (a) is added at the end thereof* 2 P r o v i d e d ', however, that the terra g e n e r a l l y Tieensed trade a r e a 1 shall not include any territory which is controlled cr occupied by the military, naval or police forces or other authority cf Japan, Germany, or Italy, or allies thereof. 11 D. % BELL Acting Secretary of the Treasury * This public circular affects Parts 130 and 131 and will be included in appendices to those parts. Sec. 5(b), 40 Stat. 415 and 966; Sec, 2, 48 Stat. 1; 54 Stat. 179; Ex. Order 8389, April 10> 1940, as amended;by Ex* Order 8785, June 14,, 1941, Ex. Order 8832, July 26, 1941, E x r Order 8963,> December 9, 1941, and Ex, Order 8998, December 26-, 1941; Regulations, April 10, 1940, as amended June 14, 1941, and July,26, 1941. - 2 ? - ;U PRESS RELEASE The Bureau of Customs announced today that equal opportunities will be afforded at customs ports of entry for the filing of entries and withdrawals for consumption covering cattle weighing 700 pounds or more each (other than dairy cows), the produce of countries other than Canada, at the opening moment of the quarterly quota periods during the year 1942, provided for in the Presidents proclamation of December 22, 1941* The collectors of customs have been instructed that no entries, or withdrawals from bonded pastures, for consumption of this class of cattle shall be filled on January 2, April 1, July 1 and October 1, 1942, before 12 Noon Eastern Standard Time, 11 A. M. Central Standard Time, 10 A. M. Mountain Standard Time and 9 A. M. Pacific Standard Time. Entries and withdrawals for consumption covering this class of cattle may be accepted at the lower rate of duty of 1—i/2 cents per pound provided for under the Canadian Trade Agreement, provided the delivery permit is not released pending determination of their quota status. If delivery permit is desired before such determina tion, importers of this class of cattle will be required to deposit estimated duties at the full tariff rate of 3 cents per pound. Excessive duties deposited on entries or withdrawals found to be within the quotas will be refunded. (Prepared — Appeals and Protests (Quota Unit) Bureau of Customs) TREASURY DEPARTMENT Washington FOR RELEASE, MORNING NEWSPAPERS, Tuesday, December 30, 19^1. 12/29/41 Press Service No* 29-32 The Bureau of Customs announced today that equal oppor tunities will be afforded at customs ports of entry for the filing of entries and withdrawals for consumotion covering cattle weighing 7 0 0 pounds or more each (other than dairy cows), produce of countries other than Canada, the at the opening moment of the quarterly quota periods during the year 1 9 ^-2 , provided for in the President's proclamation of December 22-, 19^1. The collectors of customs have been instructed that no entries, or withdrawals from bonded pastures, for consumption of this class of cattle shall be filled on January 2, April 1, July 1 and October 1, 19^-2, before 12 Noon Eastern Standard Time, 11 A. M # Central Standard Time, 10 A. M, Mountain Standard Time and 9 A. M* Pacific Standard Time. Entries and withdrawals for consumption covering this class of cattle may be accepted at the lower rate of duty of 1-1/2 cents per pound provided for under the Canadian Trade Agreement, pro vided the delivery permit is not released pending determination of their quota status. determination, If delivery permit is desired before such importers of this class of cattle will be required to deposit estimated duties at the full tariff rate of 3 cents per pound. Excessive duties deposited on entries or withdrawals found to be within the quotas will be refunded* - 0O 0 - TREASUHX DEPARTMENT Washington FOR HEIEASE, MORNING NEWSPAPERS, Tuaeday. Dacaaibar 30. 1 9 U . Press Service , 9,-23 12/29/tt ^7 The Secretary of the Treasury announced last evening that the tenders for 1150,000,000, or thereabouts, of 76-day Treasury bills, to be dated December 31, 1941, and to mature March 17, 1942, which were offered on December 26, were opened at the Federal Reserve Banks on December 29« The details of this issue are as follows s Total applied for - $317,107,000 Total accepted - 150,004,000 Range of accepted bids: (Excepting two tenders totaling $80,000) High low Average price - 99*961Equivalent rateapproximately 99*927 * * * 99*935 * « • « (65 percent ofthe amount 0.185 percent 0.346 ■ 0.310 * bid for at the low price was accepted) o O * TREASURY DEPARTMENT Washington FOR RELEASE, MORNING NEWSPAPERS, Tuesday, December SO, 19^1«____ _ 12/2975L Press Service ^9” 33 The Secretary of the Treasury announced last evening that the tenders for $150,000,000, or thereabouts, of 76 -day Treasury bills, to be dated December Jl, 19^1,'and to mature March 17, 19 1+2, which were offered on December 26, were opened at the Federal Reserve Banks on December 2 9 . Th© details of this issue are as follox^s: Total applied for - $317> 1°7> Total accepted ^ - 1 5 0 ,0 0 ^ ,0 0 0 Range of accepted bids: (Excepting two tenders totaling $60,000) High - 99 .9 6 1 Equivalent rate approximately O.I 65 percent Low - 99,927 " " ” ' " Average , „ Price - 99*935 " n 1 0.3‘ 10 (65 percent of the amount bid for at the low price was accepted) - 0 O 0 \ r : H FOR IMMEDIATE RELEASE: Secretary Morgenthau has awarded Distinguished Flying Crosses to the pilot and crew of a Coast Guard airplane which was landed safely at Philadelphia on October 3 after having been severely damaged in a crash through tree tops near New Hackensack, New York. The Secretary, who was then head of the Coast Guard, was a passenger in the plane. Those receiving the crosses were the pilot, Lieutenant William E. Sinton, Aviation Chief Machinist’s Mates Edmund T. Preston and Lonnie Bridges, and Radioman (First Class) Stephen J. Brodman, all of the United States Coast Guard« TREASURY DEPARTMENT Washington Press Service No. 29~3^ FOR IMMEDIATE RELEASE, Tuesday, December 30, 19^1. Secretary Morgenthau has awarded Distinguished Flying Crosses to the pilot and crew of a Coast Guard airplane which was landed safely at Philadelphia on October 3 after having been severely damaged in a crash through tree tops near New Hackensack, New York. The Secretary, who was then head of the Coast Guard, was a passenger in the plane. Those receiving the crosses were the pilot, Lieutenant William E. Sinton, Aviation Chief Machinist’s Mates Edmund T. Preston and Lonnie Bridges, and Radioman (First Class) Stephen J. Brodman, all of the United States Coast Guard. - 0O 0 - 3 whether on original issue or on subsequent purchase, and the amount actually re ceived either upon sale or redemption at maturity during the taxable year for which the return is made, as ordinary gain or loss* Treasury Department Circular Ho* £18, as amended, and this notice, pre scribe the terms of the Treasury bills and govern the conditions of their issue. Copies of the circular may be obtained from any Federal Reserve Bank or Branch* v ■ I f iS i (SB*53 mm 91 x3Q»gx - 2 - f Reserve Banks and Branches, following which public announcement will be made by the Secretary of the Treasury of the amount and price range of accepted bids« Those submitting tenders will be advised of the acceptance or rejection thereof. The Secretary of the Treasury expressly reserves the right to accept or reject any or all tenders, in whole or in part, and his action in any such respect shall be final. Payment of accepted tenders at the prices offered must be made or completed at the Federal Reserve Bank in cash or other immediately available funds on January 7, 1942, provided, however, any qualified depositary will be permitted to make payment by credit for Treasury bills allotted to it for itself and its customers up to any amount for which it shall be qualified in excess of existing deposits when so noti- | fied by the Federal Reserve Bank of its District. The income derived from Treasury bills, whether Interest or gain from the j sale or other disposition of the bills, shall not have any exemption, as such, and loss from the sale or other disposition of Treasury bills shall not have any special ; treatment, as such, under Federal tax Acts now or hereafter enacted. The bills shall! be subject to estate, Inheritance, gift, or other excise taxes, whether Federal or State, but shall be exempt from all taxation now or hereafter imposed on the prin M cipal or interest thereof by any State, or any of the possessions of the United K States, or by any local taxing authority. For purposes of taxation the amount of discount at which Treasury bills are originally sold by the United States shall be considered to be interest. Under Sections 42 and 117 (a) (1) of the Internal Revenue Code, as amended by Section 115 of the Revenue Act of 1941, the amount of discount at which bills Issued hereunder are sold shall not be considered to accrue until such bills shall be sold, redeemed or otherwise disposed of, and such bills are excluded from consideration as capital assets. Accordingly, the owner of mm Treasury bills (other than life insurance companies) issued hereunder need include in his income tax return only the difference between the price paid for such bills# lässt*. TREASURY DEPARTMENT Washington FOR EELEASE, MORNING NEWSPAPERS, Friday, January 2, 194-2_______ . The Secretary of the treasury, hy this public notice, invites tenders for fr 150,000,000 or thereabouts, of 7 1 -day Treasury bills, to be issued on a discount basis under competitive bidding. ■Ha dated January 7. 19A2 , and will mature The bills of this series will ^arc^1.^9? 194^------------- -> when the face amount will be payable without interest. They will be issued in bearer form only, and in denominations of $1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (maturity value). Tenders will be received at Federal Reserve Banks and Branches up to th| closing hour, two o lclock p. m., Eastern Standard time, Monday, January 5, 1%2_± Tenders will not be received at the Treasury Department, Washington. Each tender must be for an even multiple of $1,000, and the price offered must be expressed | on the basis of 100, with not more than three decimals, e. g., 99.925. may not be used. Fractions It is urged that tenders be made on the pointed forms and for warded in the special envelopes which will be supplied by Federal Reserve Banks or Branches on application therefor. Tenders will be received without deposit from incorporated banks and trust companies and from responsible and recognized dealers in investment securi ties. Tenders from others must be accompanied by payment of 10 percent of tho face amount of Treasury bills applied for, unless the tenders are accompanied ty an express guaranty of payment by an incorporated bank or trust company. Immediately after the closing hour, tenders will be opened at the feder^ TREASURY DEPARTMENT Washington FOR RELEASE, MORNING NEWSPAPERS, Friday, January 2, 1 9 ^ 2 . ______ The Secretary of the Treasury, by this public notice, invites tenders for $1 5 0 ,0 0 0 ,0 0 0 , or thereabouts, Treasury bills, bidding. of 71~clay to be issued on a discount basis under competitive The bills of this series will be dated January 7, 19^2, and will mature March 19, 19^2, when the face amount will be payable without interest. They will be issued in bearer form ; / only, and in denominations of $1 ,0 0 0 , $ 5 ,0 0 0 , $1 0 ,0 0 0 , $1 0 0 ,0 0 0 , $ 5 0 0 ,0 0 0 , and $1 ,0 0 0 ,0 0 0 (maturity value), Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, two o'clock p. m., Eastern Stan dard time, Monday, January 5> 19^2. Tenders will not be received at the Treasury Department, Washington.. Each tender must be for an even multiple.of $1,000, and the price offered must be exoressed on the basis of 100, with not more than three decimals, e/ g 9 9 .9 2 5 , Fractions may not be used. It is urged that tenders be made on the printed forms and forwarded in the special envelopes which will be supplied by Federal Reserve Banks or Branches on application therefor. Tenders will be received without deposit from incorporated banks and trust companies and from responsible and recognized dealers in investment securities, Tenders from others must be accompanied by payment of 1 0 percent of the face amount of Treasury bills applied for, unless the tenders are accompanied by an express guaranty of payment by an incorporated bank or trust company. Immediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, following which public announcement will be made by the Secretary of the Treasury of the amount and price range of accepted bids. Those submitting tenders will be advised of the acceptance or rejection thereof, The Secretary of the Treasury expressly reserves the right to accept or reject any or all tenders, in whole or in part, and his action in any such respect shall be final. Payment of accepted tenders at the prices offered must be made or completed at the Federal Reserve Bank in cash or other immediately available funds on January 7 , 19^2, provided, however, any qualified depositary will - 2 - be permitted to make payment by credit for Treasury bills allotted to it for itself and its customers up to any amount for which it shall be qualified in excess of existing deposits when so notified by the Federal Reserve Bank of its District. The income derived from Treasury bills, whether interest or gain from the sale or other disposition of the bills, shall not have any exemption, as such, and loss from the sale or other disposition of Treasury bills shall not have any special treatment, as such, under Federal tax Acts now or hereafter enacted. The bills shall be subject to estate, inheritance, gift, or other excise taxes, whether Federal or State, but shall be exempt from all taxation now or hereafter imposed on the principal or interest thereof by any State, or any of the possessions of the United States, or by any local taxing authority^ For purposes of taxa tion the amount of discount at which Treasury bills are originally sold bv the United States shall be considered to be interest. Under Sections k2 and 117 (a) (l) of the Internal Revenue Code, as amended by Section 115 of Revenue Act of 19^1; the amount of discount at which bills issued hereunder are sold shall not be considered to accrue until such bills shall be sold, redeemed or otherwise disposed of, and such bills are excluded from considera tion as capital assets. Accordingly, the owner of Treasury bills (other than life insurance companies) issued hereunder need include in his income tax return only the difference between the price paid for such bills, whether on original issue o r o n subsequent purchase, and the amount actually received either upon sale or redemption at maturity during the taxable year for which the return is made, as ordinary gain or loss. Treasury Department Circular No. k-l$, as amended, and this notice, prescribe the terms of the Treasury bills and govern the conditions of their issue. Copies of the circular may be obtained from any Federal Reserve Bank or Branch. -o Go- Secretary Morgenthau tonight made public the following comment on the statement of twenty-six Nations issued at the White House today: "This statement of twenty-six Nations is destined to take its place among the immortal documents that are the mile stones of human freedom. It means to Americans and to all the peoples of the world far more than a mere alliance against a common enemy, far more than a mere agreement to fight together without any thought of a separate peace until victory has been achieved. Its greatest significance is in the statement of the principles for which we fight. These are the great ideals of human liberty, the rights of the individual which government exists to protect and not to annul. In the denial of these rights by the forces of aggression lies the only and the fundamental cause of this great struggle. Let us be clear about that. This is a struggle of human rights against oppression. In the twenty-five Nations whom we join as comrades in arms there is awake, as there is in our own land, the conscience of man kind. The black shadow of oppression which has plunged nation after nation into darkness must not fall upon us, and it must be swept away from the conquered lands where its darkness has fallen. It will be swept away. We can go forward with the firmest determination and a sure faith.” TREASURY DEPARTMENT Washington FOR IMMEDIATE RELEASE. Friday, January 2, 19^2. Press Service No. 29~3& Secretary Morgenthau tonight made public the following comment on the statement of twenty-six Nations issued at the White House today: Mihis statement of twenty-six Nations is destined to take its place among the immortal documents that are the milestones of human freedom. It means to Americans and to all the peoples of the world far more than a mere alliance against a common enemy, far more than a mere agreement to fight together without any thought of a separate peace until victory has been achieved. Its greatest significance is in the statement of the principles for which we fight. These are the great ideals of human liberty, the rights of the individual which government exists to protect and not to annul. In the denial of these rights by the forces of aggression lies the only and the fundamental cause of this great struggle. Let us be clear about that. ’’This is a struggle of human rights against oppression. In the twenty-five Nations whom we join as comrades in arms there is awake, as there is in our own land, the conscience of mankind. The black shadow of oppression which has plunged nation after nation into darkness must not fall upon us, and it must be swept away from the conquered lands where its darkness has fallen. It will be swept away. We can go forward with the firmest determination and a sure faith.” -r0 o 0 ~ TREASURY DEPARTMENT Washington FOR RELEASE, MORNING NEWSPAPERS, Sunday, January 4, 1942. Press Service No. 29-37 Secretary Morgenthau has placed at the disposal of Vice President Wallace, chairman of the Supply, Priorities and Allocation Board, an inventory of $200,000,000 of materials for America’s war effort, the cache of the Department’s Foreign Funds Control. The itemized inventory, which included all sorts of goods ,and merchandise, machinery and equipment, will make it possible for SPAB and other Government agencies to direct these materials, much of which is strategic, into the allied war effort. At the same time the Secretary indicated that the inventory covered only a part of the strategic materials held for foreign account and buried in warehouses, sheds and factories throughout the country. The complete inventory, which will be furnished,to Vice President Wallace In the next few days, probably will represent a much larger figure. "Ferreting out stocks of strategic materials ’lost’ in the United States is an effective way of adding immediately to the nation’s stock piles during a period when our supply lines abroad are interrupted by war," the Secretary said. "This is but one•of the many war time measures Foreign Funds Control in the Treasury has undertaken.11 The Secretary explained that these vital materials uncovered by Foreign Funds Control were "lost” in the United States either through accident or design on the part of their foreign owners. In some cases the foreign owner could not communicate with the United States because of communication difficulties arising out of war conditions abroad. In ether cases the owner was the victim of the Axis invasion and his whereabouts unknown. In still other instances the Axis powers through “dummies" actually had bought up the stocks for their own use before the war or had acquired them later for the express purpose of preventing their use in the Allied war machine. Regardless of the intent of the foreign owner the result was the same— the supplies were not being used in our war effort. Typical examples of items found in the list prepared by Foreign Funds Control and given to the Vice President included the following: *-2— The following material and equipment was held in one warehouse in the port of New York for just one foreign owner whose identity was "unknown11: g>9 boxes of aluminum, J0$2 pieces of aluminum, 39 6 crates of brass, 3 pieces of forgings, 1 1 7 tons of rough forgings, 1 6 9 tons of forgings, 49 crates of auto parts, 25 boxes of auto parts, 2 crates of tractor Implements, 3 crates of pneumatic tools, 1 box of link belting, l4 packages of diesel equip ment and 138 crates of machinery. Tractors, tires, motor accessories and barley held for G-reek accounts and valued at |l, 3 9 5 ,3 2 1 , machines, aluminum and molybdenite held for Fiat, Italy*s motor car and truck company, and valued at $266,000; merchandise from an American automobile manufacturer consigned to Greece, $1 5 7 ;7 7 5 ; tire fabric, $67,213; materials for Hispano Suiza, an important engine manufacturer in Seine, France, $¿75,9^4; steel for Holland. #79,565; automobiles for Finnish account, #35,114; steel valued at $92,000 for French account; and leather valued at $66,063 for French account. Until Treasury reporting regulations under freezing control brought the information to light and an inventory of the reports was made, no comprehensive study of this picture was available. The supplies were scattered in a thousand places and under ten thousand different names. The warehouseman or other custodian of each parcel in many instances had forgotten that it was packed away in an inaccessible place. If he knew of its presence he either did not know that it was critically needed for national defense, or even if he did appreciate its value, he saw it only as an insignificant amount because he did not see the thousands of similar parcels held by others. Today’s disclosure, however, was compiled by Foreign Funds Control after examination of the TFR-300 census reports of foreign property. Those required to report on this form included every person in the United States holding foreign-owned property as well as agents in the United States of foreign nationals having any information regarding the holdings of their principals. This was the most comprehensive census of foreign-owned property this country had ever undertaken. The reports brought the Division of Foreign Funds Control a complete census of every foreign account over fl,000. The thoroughness of the census insures an adequate sweeping of every corner of the nation for large and small quantities of materials which might possibly benefit the nation’s war effort. -3- In June, 19^-1, when the United States froze all Axis assets in the United States and the Treasury required a census of all foreign-owned property, there was dismay in some circles because of the detailed information Foreign Funds Control was requiring, but this economic preparedness is now paying dividends, Treasury officials said. More than 5^0,000 reports already have been received and are being processed both day and night. Instead of waiting for another six months before being able to take stock of our foreign and enemy holdings, Foreign Funds Control already has complete information which it is using and also making available to other interested Government agencies. Several months ago the Treasury performed this same task on a much smaller scale with respect to an earlier and less comolete census on report Form TFR-100. Strategic materials valued at many millions of dollars were made available to the army, navy and defense industries following their location by the Foreign Funds Control. The success of this initial inventory prompted the obtaining of much more complete data in connection with the recent census on report Form TFR-300. -oOo- #§& • lym f l B g wa $*m do* It 1§ ths first eswsrsts isst of ©ur willingiste» to task Bf §¡¡1 ssHlsrsi and sailors and airmail* At first sight ih# » @ m t of monsy ** tew# to m i s s through borrowing nod t % % m may assm itfßosiiblo, but $s 1b ths Trsssury hart strwsk tbs word tut of our dictionary* tell m With jour a m ¡p§ag t| io ths Job. ist ms# t t e % rssolir« t# bt worthy of In mifsrm. lot w® prows that m ft will land to dsismt mm right to b# fr®« ~~ that wo will four out a mightj isrrsni of dollars *ts isfsmi lift# Xlfasrty# ImdsptataBSt and rsllflaus frtstai . . . «gainst »«wagt and brutal forest staking io subjugate ths world.® D»C • II * and sue tain their fighting to m n in our m fighting s»n in the front lino. ere looking to us right son. h&m ® Those they ere looking end factories, looking from, the and Iceland, from the silent grey ships that are guarding our shores, from all the posts of danger in all the seven seas •** looking to us to keep them supplied and to do our part m look hack they are doing their®. with all home yy^L-r-' Those hare the right to A and see us standing shoulder to shoulder, sections, all groups, all the old divisions and dissensions swept away la our united resolve to win this war. I A all we I do need to that purchase of Defense Bonds is do here at home to achieve victory# But say that the buying of Defense bonds la the first * • IO - I suggest, then, that each of us sit down this vary g to study our family budgetj that each of us decide least but the most that we can y week cu for the purchase of Lrg*ll jpl t s-.-' j we then translate that amount Into a our , ten, or even fifteen percent, stick to it setting without more , the more planes will fly, , every bond Lge ourselves to buy will on and Berlin. tor M ÏJ & W Ü m Mow is the time for all of America to line up dl l i o n united people, using their dollars to ;' I - 9 - our State organ! fiat lone are ready to tell you all about it, and will cheerfully send someone to your factory to explain it to you* I am in dead earnest when I say that millions more must take part in these payroll saving plans, and must invest hundreds of millions of dollars more, If we are to do our job* Our plans at the Treasury for financing the war are based upon the belief that the American people will want to assume a big share of the cost of the war, of their own free will* The response to payroll saving will tell us whether that belief is right or wrong. I have such faith in the American people that I believe they will want to do the job in the voluntary way — it is up to you to prove it^teaaa* ,I B-G . but * 8 • been much greater, from labor and from management alike* I am receiving reports already of some companies in which 90 percent or more of the employees are making good use of this easy road to voluntary saving* In this connection I should like to pay a sincere tribute to the labor unions which are urging their members in all parts of the country to get behind the Defense Saving© effort* X But the response from industrial workers so far is only a beginning. If you haven*t heard how to join in a voluntary payroll saving plan, or if the detail© haven’t been explained to you, or if your company has refused to install such a plan for you, I wish you would write to me at the Treasury Department in Washington. It’s the Treasury*s responsibility to tell you about payroll saving; D-C * 7 - for workers to accumulate their saving« for the purchase of Defease Bonds. Many of you already know about these payroll saving plans. The most popular of them is a method by which you or your union can tell your company how much you wish to set aside from your pay, to be saved for Defense Bond purchases. you, Your company accumulates your savings for and w h e n you have enough to buy a Defense Bond your company will deliver the bond to you, registered in your own name* That is all there Is to it. Until now a very small fraction of employees have taken advantage of these plans, and a comparatively small proportion of companies have agreed to provide the facilities. Since Japan attacked us the extent of participation has •earner put asid# a part of © check, erery nook, for the purchase ISN ips, ¡en I a a/ wa part** I do not or on# percent or pay check# tec percent car* spare change* This Is not a token war# It is not a war that can be won Each of re can our own good and for our war m r It is m will hare to figure orni talee to w *0 g o W H I % last. country tre mtkin¡ in operation in thousands of factories, and in m r largì tke it » r e - s < t L • M .fcfofrfr were a different kind of war, I should not be speaking to you in your homes tonight about the job <=£&&t f aeee-ere.— -jtefc-tfal s'•'t w n r 'pwopIe-Wr vra* ^ k ^ j. very thing that the people of this and other free countries have won through centuries is now at stake* You will want me, as Secretary of the Treasury, to finance this people’s war by going to the people themselves for the sinews of war. t depending primarily on a few financiers. I am depending on you, on each and every one of you who may be listening to my voice this evening. In particular, I am depending on the 000,000 American men and women who earn regular pay* You may ask ®fhat is the Treasury’s goal? Treasury give us some figure to shoot at?* goal is to make every pay day Bond Day* C a n ’t the The Treasury’s It is to have \ such huge expenditures in the coming year that even the half billion dollar record you established in the purchase of Defense Bonds in December will seem to be almost insig nificant • War is never cheap, but let me remind you that it's a million times cheaper to w i n than to lose. The French, the Czechs, the people of a dozen conquered and ravaged v/ countries, can tell us what it costs to lose* We have made up our minds to win« We have made up our minds to produce and to fight with such an overwhelming number of planes, of ships, of tanks, of guns and of trained and fully equipped men, that the lazls and Japanese and their kind can never again threaten our freedom« The cost of our war effort should frighten no one but our enemies. ijg lit* “■ 1 » to fee at work nil night* beringe« in m m llm hi. While there eitle«, we ere now eeeweletla« wp to meet the demand will newer is wen* It is important f\/hawe to to keep in <rar the Peeember jour Govern« on the war effort as j U t #U Lgs Bonds. In ewer to devote half of our entire national — 2 — they had been S that m m previous months* i l l this indicate« and more people with moderate m t i r W BS & k income« are acquiring the good habit of saving for their country. flit rush to buy bonds was so great that in some the supply a.f hmada ran out for a time* We just print the bonds fast enough after Pearl Harbor* Honolulu, while the smoke 4fcem”Pe*ffliiKartell,still places couldn’t In darkened the sky, the eitlsena of Hawaii replied to the bombs by buying bond» ton tin.» u fast u b«for<y * a d * » bod- to- aiitLoglga^tljulasid^^ tempoFar^-reeeipta^in plane of- As a result of that » p g b /V demonstration, and many others like it throughout the country, we promptly placed the Bureau of Engraving and Printing D-€ on a three-shift 24-hour basis* W e ’re glad that DRAFT or SEGRETARI MORGEBTEAU’S BROADCAST "THE JOB AHEAD* January 4tb, 1942 1 ÉÉ BaMBs s# 5®ii Tonight I oan give you proof that the country remembers Pearl Harbor, I am happy to report to you 4 lip stílSlt pfe that Defense Bond sales in the month of December produced more than five hundred million fighting dollars for fighting men., Actual cash deposits from Defense Bond sales reached the record total of $528,000,000, about liiii twice as much as the average for the previous seven months. This grand response is just one sample of what our people will do, in every field of the war effort, now as that they are awake and aroused to their country's danger. It is especially good news to me that $341,000,000 of the December total came from the sale of the Series I Bonds, the "people's bonds", that start at a price of $18.75. The sales of Series 1 Bonds were almost three times what 1 H 1 /3 /4 2 TREASURY DEPARTMENT Washington (The f o l l o w i n g a d d r e s s by S E C R E T A R Y M O R G E N T H A U od "ini in II m l T i n 1I11I 1 1 to il urn in ,■ W e d n e s d a y , o ^ C e ntral December 1 7 *and ||||M at that t i m e .) ^ - T K o / T o b A"U a cw5l11 u § >05 6 C£'f~iX' o S (To (U r*1 6 < d| ¿Xv^L NTv^^o^vk — ^ hio n a “fciun our a has t e d a ¡l Ii u u Il , but I4r ser a n d s t r o n■g e r for h a v i n g | ha d it E v e r y on< ^ must be c o n s c i o u s today of a c l e a r e r v i s i o n m d ^ d e e p e r u n d e r s t a n d i n g th a n w e had two w ^ ^ ^ f igo. Tha b o m b s on Pearl H a r b o r have d e s i M y ^ m u i h more tha,nN«(hat the c e n s o r s wouljd«»G6rlrd^ tarv )bjectives"K T h e y c o m p ? a , c e n c y to hreds. T h e ^ a ^ e ^ b l a s t e d the old codffortable bel hat the^w^tfe o b e a n s c o u l d save u s J ^ r o m harm. Th3y t a v e ^ r o w n a w a y r^e n o t i o n that b r u t a l i t y a n d decea pd' 'murder in a n o t h e r p a r t of t j f e w o r l d c o u l d nevel o u c h us in ours. b We n o w know, or ou^ to know, that this whole^ v o r l d s t r u g g l e is our Wc j u s t as m u c h as it was o the p e o p l e of C h u n g j d n g W a r s a w in 1939, or t o \ he p e o p l e of R o t t e r d a m or L o h d o n in 1940, or to the\ eople of A t h e n s a n i M o s c o w i n \ 9 4 l . We n o w know, or o ught to k n o w y a h a t t h e r e can N ^ e no half way m e t h o d of f i g h t i n g an a t t e m p t to a & m i n a t e the entire •irth. We n o y l c n o w , or ought to kno^. that this atal w a r w m require total effort o n S n u r part, with e v e r y t h i n g y f e have a n d e v e r y t h i n g we a r e v w i t h all d u r r e s o u r c e s p l e d g e d to final a n d d e c i s i v ^ victory. in this room, the men a n d w o m e n wh o direct e f e n s e S a v i n g s O r g a n i z a t i o n in the k S S t a t e ^ b e e n w o r k i n g h a r d for m a n y m o n t h s to m o b i l i z e d f i n a ncial r e s o u r c e s in the f o r m of the p e o p l e d :s But we have. I fflink. flone more than that. cxM~ *)/ (<T~rK -rx^-o. , S+2 — tW V, .... * ...¡TI— w '■■■ÿ1 ThcCr 11 WÊÉQô Of fs “i n * , jy O-V^r 6 ^ AitO^U.a-fiL ft'YtrâLâ t<L r t J r o a JLce-vhcjr ^ f " -s Treasury DEPARTMENT Washington (The following address "by SECRETARY BBRGrENTHAU on '•The'Joh Ahead" is scheduled to "be broadcast over the Columbia Broadcasting System and the Blue Network of the National Broadcasting Company at 7:15 p. m. Eastern Standard Time, Sunday, January 4, 1942, and is for release upon delivery at that time. It will be rebroadcast at 11:00 p. m. that evening over the Mutual Broadcasting System.) TREASURY DEPARTMENT Washington (The following address by SECRETARY MORGENTHAU on "The Job Ahead" is scheduled to be broadcast over the Columbia Broadcasting System and the Blue Network of the National Broadcasting Company at 7*15 p. m. Eastern Standard Time, Sunday, January 4, 19^-R, and j's for release upon delivery , at that time. It will be rebroadcast at 1 1 : 0 0 p. m. that evening over the Mutual Broadcasting System. ) Tonight I can give you proof that the country remembers Pearl Harbor. I am happy to*report to you that Defense Bond sales in the month of December produced more than five hundred million fighting dollars for fighting men. Actual cash deposits from Defense Bond sales reached the record total of $522, 0 0 0 ,0 0 0 , about twice as much as the average for the previous seven months, This grand response is just one sample of what our people will do, in every field of the war effort, now that they are awake and aroused to their country1s danger. It is especially good news to me that $3^-1,0 0 0 , 0 0 0 of the December total came from the »sale of. the Series E Bonds, the "people’s bonds", that start at a price of $12>,75* The sales of Series E Bonds were almost three times what they had been > in previous months. All this indicates that more and more people with moderate incomes are acquiring the good habit of saving for their country. The rush to buy bonds was so great that in some places the supply ran out for a time. We just couldn’t print the bonds fast enough after Pearl Harbor. In Honolulu, while the smoke still darkened the sky, the citizens of Hawaii replied to the bombs by buying bonds ten times as fast as before. As a result of that thrilling demonstration, and many others like it through out the country, we promptly placed the Bureau of Engraving and Printing on a three-shift 24-hour basis. W e ’re glad that the country is pushing us. We like to be pushed. The presses are at work all night, every night. While there still- are shortages in some cities, we are now accumulating several w e e k s ’ advance supply of bonds to meet the demand which, I am confident, will never slacken until the war is von. It is important, however, to keep in our minds the relation between Defense Bond sales and the total amount of 2q~3g - 2money that we have to borrow. In December your G-overnment spent about four times as much on the war effort as you subscribed in Defense Savings■Bonds* In the months to come it will spend at a far greater and ever "increasingjcate. You read the President's statement of last week that we shall have to devote half of our entire national income to the war effort. That statement fore shadowed such huge expenditures in the coming year that even the half billion dollar record you established in the purchase of Defense Bonds in December will seem to be almost insignificant War is never cheap, but let me remind you that it's a million times cheaper to win than to lose. The French, the Czechs, the people of a dozen conquered and ravaged countries, can tell us what it costs to lose. We have made up our minds to win. We have made up our minds to produce and to fight with such an overwhelming number of planes, of ships, of tanks, of guns and of trained and fully equipped men, that the Nazis and Japanese and their kind can never again threaten our freedom. The cost-.of our war effort should frighten no'one but our enemies This is a p e o p l e ’s war. If it were a different kind of war, I should not be speaking to you, the people, in your homes tonight about the job ahead. Everything that the people of this and other free countries have won through centuries is now at stake. You will want me, as Secretary of the Treasury, to finance this people's war by going to the people themselves for the sinews of war. I am not going to finance it by depending primarily on a few financiers. I am depending on you, on each and every one of you who may be listening to my voice this evening. In particular, I am depending on the 4-0,003,000 American men and women who earn regular pay. You may ask "What is the Treasury’s goal? C a n ’t the Treasury give us some figure to shoot at ? 11 The Treasury's goal is to make every pay day Bond Day. It is to have every wageearner and salary-earner put aside a part of every pay check, every week, for the purchase of Defense Bonds and Stamps. And when I say "a part" I do not mean a mere token contribution of a few nickels every week, or the mere contribution of one percent or two percent of the weekly pay check. This is not a token war. It is not a two percent war. It is not a war that can be won with spare change. Each of us will have to figure out the very most that we can set aside to buy Defense Bonds, for our . own'good and for our country’s good, as long as the war may last. The industrial workers of this country are making a good start. Voluntary payroll saving plans are now in operation in thousands of factories, and in most of our largest business concerns, to make it more convenient for workers to accumulate their Savings for the purchase of Defense Bonds. - 5 Many of you already know about these payroll saving plans. The most popular of them is a method by which you or your union can tell your company how much you wish to set aside from your pay, to be saved for Defense Bond purchases. Your company accumulates your sayings for you, and when you have enough to buy a Defense Bond your company will deliver the bond to you, registered in your own name. That is all there is to it. Until now a very small fraction of employees have taken advantage of these.plans, and a comparatively small proportion of companies have agreed to provide the facilities. Since Japan attacked us the extent of participation has been much greater, from labor and from management alike. I am receiving reports already of some companies in' which 9 ° percent or more of the • employees are making good use of this easy road to voluntary saving. In this connection I should like to pay a sincere tribute to the labor unions which are urging their members in all parts of the country to get behind the Defense Savings effort. But the response from Industrial workers so far is only a beginning. If you haven’t heard how .to Join in a voluntary pay roll saving plan, or if the details h a v e n ’ 1 been explained to you, or if your company has refused to install such a plan for you, I wish you would write to me at the Treasury Department in Washington. It's the Treasury’s responsibility to tell you about payroll saving; our State organizations are ready to tell you all about it, and will cheerfully send someone to your factory to explain it to you. I am in dead earnest when I say that millions more must take part in these payroll saving plans, and must invest hundreds of millions of dollars more, if we are to do our job. Our plans at the Treasury for financing the war are based upon the belief that the American people will want to assume a big share, of the cost of the war, of their own free will. The response to payroll saving will tell us whether that belief is right or wrong. I have such faith in the American people that I believe they will want to do the job in the voluntary way -— but it is up to ;yoti to prove it. I suggest, then, that each of us sit down this very evening to study our family budget; that each of us decide this very evening, not the least but the most that we can afford every week for the purchase of Defense Savings Bonds; that we then translate that amount into a percentage of our pay, five, ten, or even fifteen percent, whatever we choose, and stick to it by setting that percentage aside week after week without fail. Remember^ the more bonds we buy, the more planes will fly. Remember, every bond we pledge ourselves to buy will add to the weight of the bombs that will fall on Tokyo and Berlin. Now is the time for all of America to line up as 1 3 0 million united people, using their dollars to support and sustain their fighting' men in» the front line. Those fighting men are -4- looking to us right now. They are looking to us in our homes and factories, looking from the Philippines and Iceland, from the silent gray ships that are guarding our shores, from all the posts of danger in all the seven seas — looking to us to keep them supplied and to do our part as they are doing theirs. Those men have the right to look back home and see us standing shoulder to shoulder with all sections, all groups, all the old divisions and dissensions swept away'in our united resolve to win this war. I am not suggesting that purchase of Defense Bonds is all we need to do here at home to achieve victory. But I do say that the buying of Defense Bonds is the first thing we can do. It is the first concrete test of our willingness to back up our soldiers and sailors and airmen. At first sight the amount of money we have to raise through borrowing and taxes may seem impossible, but we in.the Treasury have struck the word "impossible" out of our dictionary. With your help we are going to do the job. Let us, then, resolve to be worthy of our men in uniform. Let us prove that we will lend to defend our right to be free — that we will pour out a mighty torrent of dollars "to defend life, liberty, independence and religious freedom . . . against savage and brutal forces seeking to subjugate the world." CONFIDENTIAL*4 Wi ï &mw m i - m â 4 m m wfp P w -»ff%*Siap!SP Sal** Slac* Hay Xt 19*11« fcy iM & t % lati* of t*mm Prit» (lu ihoaaaais of dollar*) Sori«* ? Xottlh Mtr ,S3S * 5 7 .7 * 5 I’ m# ,7 *8 iÉ , p t í395¿m »yV^gÿ) M ÿ Aug««! 3*pt«nfc*r ô»lofc#r loroxa^or fötal .(7y i»i«f 0 î*t*l ~^VWI,»J i i i 1 W0.581 ♦37,817 # 211,*20 # 3*9,«a »*fl? 28.876 183,13* 31*,!»? 1*5.87*» i?|¡¡¡ 169,*$8 3*2,1» 127,685 265,6(6 117,603 20.31* 105,s*l w*óff 232.32Î 182,88* 22,9$} 12*.866 270,7131 109,*75 XÄ.97* 105,035 233,**71 3*1,085 33.878 15*,2*2 |2Í,Sf <1,1**,660 t20?,682 H,U*,867 «,537,2«> r, V I S E ÿ l T W Siri*!*» of l i i f à lourooi iiümmiiHéWmOi11»1^ > Ü Ü Íi m i S ia tte tle s AU fig u ra* oro a*po*it* wttfc iá* i N t i t r ^ o f T lo - ^ ito d S taio* o f oroeooi* .of «st** o f B ailad S taio* sawing* im i* » '"yi*r rr-rn<1r r r j i ji»: ^ üü aeowmt ^ f |E i Figaro* lioro to «n rounded to noon»«* them* o a i o a i w ill a¿>% &*a*a*nrlly R Ü lO lOiolO* -o O ¿ — The Secretary»!#: said that the Bureau of Engraving and Printing had "been placed on a three-shift, twenty-four hour "basis to cope with the bond-huying rash Harbor. While there are still shortages in the supply of bonds in some cities, he said, several weeks* advance supply is now being accumulated Ito meet the demand which, I am confident, will never slacken until the war is won.” "At first sight the amount of money we have to raise through borrowing and taxes may seem impossible," said Mr. M0rgenthau, "but we in the Treasury have struck the word •impossible1 out of our dictionary. With your help we are going to do the job." The sales figures announced tonight did not include the sales of Defense Savings Stamps, which also reached new records in December, 9i##i£sEidMK Poliowing is a month-by-month record of the sales of all <c ||| fjiu 0 dUrlJUAJ three series of Defensd Savings Bo nds^fsince May 1. ^ Month Series E Series P Series G what it costs to lose. have made up our minds to win. have made up our minds to produce and to fight with such an overwhelming number of plains, of C^lfullv.3 ships, of tanks,of guns and of trained an^ecLuipped men,that the Nazis and the Japanese and their kind can never again threaten our freedom. MThe cost of our war effort should frighten m m no one h u t * our enemies." Emphasizing the j m a m m m importance of systematic saving from current income, and particularly of the voluntary payroll saving^ plans now in operation in thousands of factories, the Secretary said; HI am in dead earnest when I say that millions more must take part in these payroll saving plans, and must invest hundreds of millions of dollars!(more, if we are to do our job. Our plans at the Treasury for financing the war are based upon a belief that the «American people will want to assume a big share of the cost of the war, of their own free will. The response to payroll saving will tell us whether that belief is s i ^ p n s i right or wrong. HI have such faith in the American people that I believe theji will want to dii the job in the voluntary way— but it is vp to you to prove it.” The Treasury*s goal, he went on, is "to make every pay day Bond Day11, and to have "every wage-earner and salary-earner put aside a part of every pay check, every week, for the pir chase of Defense B0nds and Stamps." "And when I * say *a part * I do not mean a mere token contribution of a feij nickels every week, or m k the mere contribution of one per cent or two per cent o the weekly pay check,# said Mr. Morgenthau. "This is not a token war. a two per cent war. It is not It is not a war that can be won with spare change, "Bemember, the more bonds we buy, the more planes will fly. Bemember, eve bond we pledge ourselges to buy will add to the weight of the bombs that will fall Tokyo and Berlin/ ( TREASURY DEPARTMENT Washington /■FOR RELEASE, MORNING NEWSPAPERS {.Monday, January 5. 1942. *‘1 / 3 / 4 2 Press Service No. 29-39 --- 1----------------- '^ > 0 Cash receipts at the Treasury from the sale of Defense Sayings Bonds in December reached a total of $52»,599•000. Secretary Morgenthau announced tonight. This record figure for a single month comparecL wit:. receipts of $233,^87,000 in November, and 4« almost twice as high as the average for the seven months since Defense Savings B0nds first went on sale in May. The December sales boosted the total receipts since May 1 to $2,537,210,000. Sales of the Series "E" bonds, the successors to the old "baby bonis," accounted fer $3^1,085,000 of the December receipts. This £» *"« j more than three times an »nigh" the November s s S ® f igurejifcof $109,1+75,000 from the sale of Series Sac E bonds, and^jj^ more than three times the average of the seven months since May 1. In a nation-wide broadcast this evening Secretary Morgenthau hailed the December figures as "just one sample of what the American people will do, inwafevery field of the war effort, now that they are mm, awake and aroused to their country*s ¿Larger.'’ Of «3*»* InriTnwnr |— frhftrtr the war effort in December^ cost about 1 A four times as ranch as the total receipts from ffiyv\ Defense Bonds in the month,' a n a T t ^ ^ ' ^ to come the Government A spend “at a far greater and ever increasing rate." h k The President’s recent statement on the war production program, said the Secretary, "foreshadowed such huge expenditures in the coming year that even the half billion dollar record you established in the purchase of Defense Bonds in December will seem to be almost insignificant." "War isaw never cheap," said Sdcretary Morgenthau, "but let me remind you that it’s a million times cheaper to win than to lose. The Prench, the Czechs, the people of a dozen conquered and ravaged countries, can M k tell us ¿X 7 - 3 / f Cash receipts at the Treasury from the sale of Defense Savings Bonds in December reached a total of $521*599.000, Secretary M 0rgenthau announced tonight. This record figure for a single month compared!, with receipts of $233,^87,000 in November, and 4« almost twice as high as the average for the seven months since Defense Savings Bounds first went on sale in May, The December sales boosted the total receipts since May 1 to $2,537,210,000. Sales of the Series "E" bonds, the successors to the old "baby boms," accounted fbr $3^1,085,000 of the December receipts. This ifc <*** < figure" fidt of more than three times eBBncdrthe November / fM'tua $109,^+75,000 from the sale of Series Sk E bonds, and ^ more than three times the average of the jBBBDEddi^ seven months since May 1. In a nation-wide broadcast this evening Secretary Morgenthau hailed the December figures as "just one sample of what the American people will do, i n w A v e r y field of the war effort, now that they are K awake and aroused to their country*s danger," -ilr*Fii...ilimiiiriliiiiriiii 'rr~ ~ 'T T P T 1"* "Ti " 1 1" effort in December cost about A 9* vf 1^* w ar four times as much as the total receipts from c d p w t & g j j ua JL$ Defense Bonds in the month, I S M w i a t £n~ the months to come the Government t o o* A spend "at a far greater and ever increasing rate." The Presidents recent statement on the war production program, said the Secretary, "foreshadowed such huge expenditures in the coming year that even the half billion dollar record you established in the purchase of Defense Bonds in December will seem to be almost insignificant," "War i s * never cheap," said Sdcretary Morgenthau, "but let me remind you that it*s a million times cheaper to win than to lose. The French, the Czechs, the people of a dozen conquered and ravaged countries, can fcrik tell us TREASURY DEPARTMENT Washington PÛK RELEASE, kOiOTIBG HEWSPAFEKS, Monday. January 5. 1942.________ 1/3/42 Pre®s Service Eo* 29-39 Cash receipts at the Treasury from the sale of Defense Savings Bonds in December reached a total of $528,599,000, Secretary Morgenthau announced tonight. This record figure for a single month compared with receipts of $233,487,000 in November, and was almost twice as high as the average for the seven months since Defense Savings Bonds first went on sale in May• The December sales boosted the total receipts since May' 1 to $2,537,210,000. Sales of the Series "E" bonds, the successors to the old “baby bonds," accounted for $341,085,000 of the December receipts. This was more than three times the November figure of $109,475,000 from the sale of Series E bonds, and was more than three times the average of the seven months since May 1* In a nation-wide broadcast this evening Secretary Morgenthau hailed the December figures as "just one sample of what the American people will do,^ n every field of the war effort, now that they are awake and aroused to their country’s danger." The we; effort in December, however, cost about four times as much as the total receipts from Defense Bonds in the month, Mr. Morgenthau said, and in^ months to come the Government will spend "at a far greater and ever increasing rate." Thé President’s recent statement on the war production^program, said the Secretary, "foreshadowed such huge expenditures in the coming year that even the half billion dollar record you established in the purchase of Defense Bonds in December will seem to be almost insignificant." "War is never cheap," said Secretary Morgenthau, "but let me remind you that it’s a million times cheaper to win than to lose. The French, the Czechs, the people of a dozen conquered and ravaged countries, can tell us what l costs to lose. We have made up our minds to win. We have made up our minds to produce and to fight with such an overwhelming number of planes of ships, of tanks, of guns and of trained and fully equipped men, that the Nazis and the Japanese and their kind can never again threaten our freedom. "The cost of our war effort should frighten no one but our enemies." %he Emphasizing importance of systematic saving from current income, and particularly of the voluntary payroll saying plans now in operation m thousands of factories, the Secretary said: "I am in dead earnest when I say that millions more must take part in these payroll saving plans, and must invest hundreds of millions of do ars - 2 - more, if we are to do our job. Our plans at the Treasury for financing the war are based upon a belief that the American people will want to assume a big share of the cost of the war., of their own free will. The response to payroll saving will tell us whether that belief is right or wrong. «1 have such faith in the American people that I believe they will want to do the job in the voluntary way— but it is up to you to prove it." The Treasury1s goal, he went on, is "to make eveiy pay day Bond Day", and to have nevery wage-earner and salary-earner put aside a part of every pay check, every week, for the purchase of Defense Bonds and Stamps." "And when I say 'a part* I do not mean a mere token contribution of a few nickels every week, or the mere contribution of one per cent or two per cent of the weekly pay check," said Mr. Morgenthau. "This is not a token war. It is not a two per cent war. It is not a war that can d© wron with spare change* "Remember, the more bonds we buy, the more planes will fly. Remember, every bond we pledge ourselves to buy will add to the weight of the bombs that will fall on Tokyo and Berlin." The Secretary said that the Bureau of Engraving and Printing had been placed on a three-shift, twenty-four hour basis to cope with the bond-buying rush which began to develop shortly after the Japanese attack on^Pearl Harbor. While there are still shortages in the supply of bonds in some cities, he said, several weeks* advance supply is now being accumulated "to meet the demand which, I am confident, will never slacken until the war is won." "At first sight the amount of money we have to raise through borrowing and taxes may seem impossible," said Mr. Morgenthau, "but we in the Treasury have struck the word ‘impossible* out of our dictionary. With your help we are going to do the job." The sales figures announced tonight did not include the sales of Defense Savings Stamps, which also reached new records in December. Following is a month-by-month record of the sales of all three series of Defense Savings Bonds, on a basis of the issue price, in thousands of dollars, since May 1 * Total Series G Series F Series E Month $ 349,818 $ 211,420 $ 37,817 $ 100,581 May 314,527 183,134 28,876 102,517 June 342,132 169,498 27,359 145,274 July 265,606 127,685 20,318 117,603 August 232,327 108,987 18,099 105,241 September 270,713 124,866 22,963 122,884 October 233,487 105,035 18,978 109,475 November 528.599 154.242 33.272 341.085 December $2.537.210 $1.184.867 $207.682 $1,144,660 Note* Figures have been rounded to neare add to totals. -oQo- thousand and will not necessarily January ¿t 19^2 STATUTOHT DSSBT LIMITATION AS Off D E CMBES TL. iqUl Section 21 of the Second Liberty Bond Act, as amended, provides that the face amount of obligations issued under authority of that Act, "shall not exceed in the aggregate $65,000,000,000 outstanding at any one time," The following table shows the face amount of obligations outstanding and the face amount which can still be issued under this limitation; Total face amount that may be outstanding at any one time $65,000,000,000 Outstanding as of December 31» 19^1 • Int ere st—bearing $ Bonds Treasury $33,367,393,200 Savings (Maturity value)* 7.5>l9.06l,ltOO 63.7U6.OOO Depositary 733.197.856 Adjusted Service Treasury notes 12,19 4809,925 Certificates of 2.750.550.000 Indebtedness Treasury bills 2.001.505.000 (maturity value) $Ul,7l3,398,U56 16,950,86U ,925 $58,66U,263,38! Matured obligations, on which Interest has ceased face amount of obligations ( Tssuable^under above authority 113,U6l,Hoo 58,777,72^,781 6,222,275,219 Beconcllement with Daily Statement of the United States Treasury December ^1 . 19^-1 Total face amount of outstanding public debt obligations issued under authority of the Second Liberty Bond Act, as amended Deduct, unearned discount on Savings bonds (difference between current redemption value and maturity value) Add other public debt obligations outstanding but not subject to the statutory limitation: Interest-bearing (Pre-War, etc#) $ 196,0H6,600 Matured obligations on which interest has ceased 11,789»520 Bearing no interest 3^1,926,502 Total gross debt outstanding as of December 31» 19^1 58,777.72^.7*1 l.UO9.36U,306 $57.368,360,%5 56q.762.622 $57.93*.123.097 •Approximate maturity value. Principal amount (current redemption value) according to preliminary public debt etatement $6,139,697,093« f- ¥t> 0 ¿> o January 5, 1942 STATUTORY DEBT LIMITATION Section 21 of the Second Liberty Bond Act, as amended, provides that the face amount of obligations issued under authority of that Act, "shall not exceed in the aggregate $65,000,000,000 outstanding at any one time." The following table shows the face amount of obligations out standing and the face amount which can still be issued under this limitation: Total face amount that may be outstanding at any one time $ 65,000,000,000 Outstanding as of December 31. 19^1 ! Interest-bearing: Bonds $33,367,393,200 Treasury Savings (Maturity 7 ,5^9 ,061,Uoo value)* 63,71+b,000 Depositary Adjusted Service 733,197,856 Treasury notes , 12 ,198,809,925 Certificates of 2,750,550,000 indebtedness Treasury bills 2,001,505,000 (maturity value) Matured obligations, on which interest has ceased $41,713,396,456 16,950,864,525 $58,664,263,361 113,461,400 58,777,724,781 Dace amount of obligations 6,222,275,219 issuable under above authority Reconcilement with Daily Statement of the United States Treasury December 31, 1 9 4 1 Total face amount of outstanding public debt obligations issued under authority of the Second Liberty Bond Act, 58,777,724,781 as amended Deduct, unearned discount on Savings bonds (difference 1,409,364,306 between current redemption value and maturity value) $57,368,360,475 Add other public debt obligations outstanding but not subject to the statutory limitation; Interest-bearing (Pre-War, etc.) $ 196,046,600 Matured obligations on which interest has ceased 11,789,520 569,762,622 Bearing no interest 361,926,502 $57,938,123,097 Total gross debt outstanding as of December 31» 19^1 *Approximate maturity value. Principal amount (current redemption value) according to preliminary public debt statement $6,139,697*°93* - 0O 029-40 - 2 - In view of General License No* 80 issued "today the freezing restrictions will not affect Philippine citizens within the United States or within the generally licensed trade area* ¿T K AFLjnrd - 1/3/42 a y Z TREASURY DEPARTMENT Washington FOR IMMEDIATE RELEASE Monday, January 5f 1942 ■s' tr J> Press Service t No* 29~A1 $# kA In view of thejfall of Manila^ the Treasury Department today issued Public Circular No. 11 calling attention to the fact that Philippine assets have been automatically frozen under the December 26, 1941 amendment to the freezing orders. *****€* The new public circular prescribed that! the Philippine Islands/ should S> be regarded as!a separate blocked country and that January 1, 1942 would be K regarded as the effective date of the freezing regulations as applied to the Philippines. This was done to facilitate the administration of freezing control over Philippine assets and also to provide the public with specific standards to guide their compliance with the freezing regulations relating to the Philippines. For all practical purposes this had the same effect as though freezing control had been specifically extended to the Philippine Islands on January 1, 1942. The public circular also announced that census reports on Form TFR-300 were required to be filed with respect to Philippine assets. ing this requirement wil}. be announced later. Details regard Certain general licenses relatjj to the Philippine Islands were revoked and others w&re amended. New general licenses were issued dealing with problems arising out of freezing Philippine assets. These general licenses followed the general pattern of documents issued in the past in connection with extending freezing control to a new country. Ure mn EIS'jRY III DEPARTMENT Washington FOR IMMEDIATE RELEASE ‘±2 Monday, January 5, Pres: ervice Po. 29-41 In view of the situation created by the temporary enemy occupation of important parts of the Philippine Islands, thep Treasury Department today issued Public Circular ho* 11 calling attention to the fact that Philippine assets have been a..to1941 amendment to the matically frozen under the December freezing orders, The Tb ne?/ p ublic 'circular prescribed that for the purposes of the freezing orders the Philippine Islands should be re separate-’blocked Country ant garded as if they ?/ere January 1, 1942 would t regarded as die effective date of the freezing regulations as applied to the Philippines* This was ¡f fre freezing control over done t o'f acilitate the administration of Philippine assets and also to provide the public witn speciiic standards to ~uide their compliance with the freezing regula tions relating to the Philippines. For all practical purposes this had the same effect as though freezing control had beenspecifically extended to the Philippine Islands on January 1, 1942. The public circular also announced that census reports on Form TFR-300 were required to be filed with respect to Philippine assets,’ Details regarding this requirement will he announced later. Certain ge neral licenses relating to the H U PS-mi eS Islands _lùianuo were m M revoked and |o .m jeLn~ were amended. New general licenses were issued dealing ?/ith problems arising out of freezing Philippine assets. These general licenses followed the general pattern of documents issued in the past in connec tion with extending freezing control to a new country. In vie?/ of General License Mo, GO issued todajpthe freezing restrictions will not affect Philippine citizens within the"United States or within the generally licensed trade area. TKEASÖRT DEPARTMENT Washington Press Service FDR RELEASE, MORNIKG REWSPAPERS, Tuesday. January 6, 1942»_____ i/5/42 Set 3 Tbs Secretary of the Treasury announced Last evening that the tenders for $150,000,OCX), or thereabouts, of 71-day treasury bills, to be dated January 7# lielie 1942, and to mature March 19, 1942, which were offered on January 2, were opened at the Federal Reserve Banks on January 5* ipas The details of this issue are as follows* III!j total applied for - 1351,600,000 total accepted - 150,230,Ö0Ö Range of accepted bids* High Low Average price - 99.952 - 99.934 - «I (Excepting two tenders totaling $640,000) 99.94O Equivalent rate approximately 0.243 percent » « « 0.335 * * » * O. 3O 4 * (12 percent of the amount bid for at the low price was accepted) »»it TREASURY DEPARTMENT Washington FOR RELEASE, MORNING NEWSPAPERS, Tuesday, January 6 , 194-2. 1/5/4-2 ' Press Service No. 29-4-2 The Secretary of the Treasury announced last evening that the tenders for $ 1 5 0 ,0 0 0 ,0 0 0 , or thereabouts, bills, of Treasury to be dated January 7 > 19^2, and to mature March 19, 194-2, which were offered on January 2, were opened at the Federal Reserve Banks on January 5* The details of this issue are as follows: Total applied for - $351» 6 0 0 , 0 0 0 Total accepted - 150,230,000 Range of accepted bids: (Excepting two tenders totaling $64-0,000) High - 99*952 Equivalent rate approximately 0.24-3 percent Low - 99.934.* " f O .3 3 5 " Average Price - 99.94-0 " n " 0,30411 (12 percent of the amount bid for at the low price was accepted) - 0 O 0 - The Secretary For approval, please* This has been okayed by Mr* Ihite's office* (S* From: MR. SCHWARZ > •/? Secretary Morgenthau announced today that the Treasury has purchased an additional 20 million dollars of gold from the Union of Soviet Socialist Republics. The gold is to be delivered within 180 days from January 3, the date of the purchase agreement. / The new transaction follows two^gold purchases of last year, one for 10 million dollars and another for 30 million dollars. Delivery of gold against the first purchase, made August 16 on a 90-day basis, was completed on October 25. The second arrangement, consummated on October 10, called for delivery of the gold within 180 days, by April 8, 1942. Two-thirds of the gold involved in this transaction already has been delivered. Dollar assets made available by the gold transactions are being used by the Soviet Union to purchase goods and services in the United States in addition to materials being obtained under the terms of the lend-lease arrangement. TREASURY DEPARTMENT Washington FOR IMMEDIATE RELEASE, Tuesday, January 6 , 19*4-2. 'p reSs Service No. 29-^3 Secretary Morgenthau announced today that the Tre asury has purchased an additional 2 0 million dollars of gold from the Union of Soviet Socialist Republics. The gold is to be delivered within ISO days from January 3> "the date of the purchase agreement. The new transaction follows two similar gold purchases of last year, one for 1 0 million dollars and another for 30 million dollars. Delivery of gold against the first purchase, made August 1 6 on a 90-Jay basis, was completed on October 2 5 . The second arrangement, consummated on October 1 0 , called for delivery of the gold within ISO days, by April S, 19*1-2. Two-thirds of the gold involved in this transaction already has been delivered. Dollar assets made available by the gold transactions are being used by the Soviet Union to purchase goods and services in the United States in addition to materials being obtained under the t©rms of the lend—lease arrangement. - 0 O 0- f When the attached release has been mimeographed, please have 10 extra copies forwarded to Miss Henry, Bureau of Customs, Rm 404 Wilkins Bldg., 1512 H St. N. W. ê (2) COTTON CARD STRIPS, COMBER WASTE, LAP WASTE, SLIVER WASTE, AND ROVING WASTE, WHETHER. OR NOT MANUFACTURED OR OTHERWISE ADVANCED IN VALUE. Annual quotas commencing September 20, by Countries of Origin: Total quota, provided, however, that not more than 33-1/3 percent of the quotas shall be filled by cotton wastes other than card strips and comber ■wastes made from cottons of 1-3/16 inches or more in staple length in the case of the following countries: United Kingdom, France, Netherlands, Switzerland, Belgium, Germany and Italy: luuauo; Country of Origin United Kingdom .... Canada ............ France ........... British India .... Netherlands ....... Switzerland ...... Belgium ........... Japan ............. China ............ Egypt ............ Germany .......... Italy ............ Total 1/ Established TOTAL QUOTA ...... TOTAL B1P0RTS : Established of Sept. 20. 19kX* ' to Dec. 27, 19ul Total ^uota 4,323,457 239,690 227,420 69,627 68,240 44,388 38,559 341,535 17,322 8,135 6,544 76,329 21,263 5,482,509 Included in total imports, column 2. 33-1/3% Imports Sept! 20, 1941, to1 27, 19ltl 1,441,152 231, - 69,627 — — — — 75,807 — 22,747 14,796 12,853 Ip — h3k — — — — — — 25,443 — 7,088 i 301,676 1,599,386 h3h To be disseminated to mailing list, FOR IMMEDIATE RELEASE January ^^19li2_____ The Bureau of Customs announced today that preliminary reports from the collectors of customs show imports of cotton and cotton waste chargeable to the import quotas established by the President’s proclamations of September 5, 1939* and December 19, 1940, as follows, during the period September 20, 19l*l, to December 27* 1941> inclusive: COTTON HAVING A STAPLE OF LESS THAN l-ll/l6 INCHES (OTHER THAN HARSH OR ROUGH COTTON OF LESS THAN 3/4 INCH IN STAPLE LENGTH AND CHIEFLY USED IN THE MANUFAC TURE OF BLANKETS AND BLANKETING, AND OTHER THAN LINTERS). Annual quotas commencing September 20, by Countries of Origin: Country of Origin (In Pounds) Staple length less than 1-1/8” : Imports Sept. : : Established : 20 , I9I4I, to : Dec* 27, 191*1 Quota Egypt and the AngloEgyptian Sudan .... . Peru ................. British India ........ China ................ Mexico ............... Brazil ............... Union of Soviet Socialist Republics . Argentina ............ H a i t i ...... .......... Ecuador ....................... Honduras ..................... Paraguay ..................... Colombia ..................... I r a q ........................... British East Africa ... Netherlands East Indies ..................... Barbados ..................... Other British West Indies l/ .......... Nigeria .......... . Other British W e s t " Africa 2/ .......... Algeria and Tunisia ... Other French Africa 2/* 783,8 1 6 247,952 2,003,433 1,370,791 8,883,259 618,723 475,124 5,203 237 •9,333 752 871 124 195 2 ,2 4 0 71,338 - : Staple length 1-1/8” or more : but less than I-II/1 6 ” Imports Sept, : Established : 20 , 1 9 l*l, to : Quota : Dec. 27. 19l*l 4 3 ,4 5 1 ,5 6 6 2k7,952 8,883,259 618,723 2,056,299 64,942 2 ,6 2 6 3,808 — 210 435 9,333 .- 506 — — — — 29,909 12,120,239 2,056,299 — — 3 — — 6 — — — — — 30 m m - 12,554 - 30,139 - - 21,321 5,377 . 16,004 689 _ 2,002 — 1,634 - 30 ■mm 45 .656.420 14,516,882 Total 9.759.507___ l/ Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago. 2/ Other than Gold Coast and Nigeria. 3/ Other than Algeria, Tunisia, and Madagascar. —• __ lk.176.577— TREASURY DEPARTMENT - Washington EOR IMMEDIATE RELEASE, Wednesday. January 7, 1943. Press Service No. 29-44 The Bureau of Customs announced today that preliminary reports from the collectors of customs show imports of cotton and cotton waste chargeable to the import quotas established by the Presidents proclamations of September 5, 1939, and December 19, 1940, as follows, during the period September 20, 1941, to December 27, 1941, inclusive! COTTON HAVING A STAPLE OP LESS THAN l-ll/l6 INCHES (OTHER THAN HARSH OR ROUGH COTTON OF LESS THAN 3/4 INCH IN STAPLE LENGTH AND CHIEFLY USED IN THE MANUFAC TURE OF BLANKETS AND BLANKETING, AND OTHER THAN LINTERS). Annual quotas commencing September 20, by Countries of Origin: Country of Origin and the AngloEgyptian Sudan ..... P e r u ................. British India ........ China ................ Mexico ............... Brazil ............... Union of Soviet Socialist Republics . Argentina ............ Haiti ................ Ecuador .............. Honduras ............. Paraguay ............ . Colombia ............. Iraq ................. British East Africa. ... Netherlands East Indies ............. Barbados ..... ....... Other British West Indies 1/ .......... Nigeria .............. Other British West Africa 2 ] .................... Algeria and Tunisia ... Other French Africa 3/. (In Pounds) Staple length less than 1-1/8” : Imports Sept. Established : 20, 1941, to ! Dec. 27. 1941 Quota :Staple length i-l/8” or more : but less than 1-11/16” : Imports Sept. : Established ! 20, 1941, to : Quot a : Dec. 27. 1941 783,816 247,952 2,003,483 1,370,791 8,883,259 ' 618,723 247,952 A 8,883,259 618,723 43,451,566 2,056,299 64,942 2,626 3,808 475,124 5,203 237 9,333 752 871 124 195 2,240 210 9,333 -435 506 _ - 3 - - 6 - - - - - 29,909 30 71,388 - - 12,554 - 21,321 5,377 30 30,139 - - 16,004 - 689 - * - - 2,002 1,634 - 9.759.507 14.516.882 45.656,420 Total 1/ Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago. 2/ Other than Gold Coast and Nigeria. 3 Other than Algeria, Tunisia, and Madagascar. J 12,120,239 2,056,299 - - 14.176.577 (2) COTTON CARD STRIPS, COMBER WASTE, LAP WASTE, SLIVER WASTE, AND ROVING- WASTE, WHETHER OR NOT MANUFACTURED OR OTHERWISE ADVANCED IN VALUE. Annual quotas commencing September 20, by Countries of Origin: Total quota, provided, however, that not more than 33-1/3 percent of the quotas shall be filled by cotton wastes other than card strips and comber wastes made from cottons of 1-3/16 inches or more in staple length in the case of the following countries: United Kingdom, France, Netherlands, Switzerland, Belgium, Germany and Italy: Country of Origin : Established : TOTAL QUOTA (In Pounds) TOTAL IMPORTS : Established Sept. 20, 1941, : 33-1/3$ of to Dec. 27. 1941: Total Quota United Kingdom ....,. 4,323,457 Canada ............ 239,690 227,420 F r a n c e ........... . 69,627 British India ..... 68,240 Netherlands ....... 44,388 Switzerland ....... B e l g i u m ........... 38,559 Japan ............. 341,535 C h i n a ............. 17,322 Egypt ........ ..... 8,135 C u b a .............. 6,544 76,329 Germany ........... Italy ............. 21,263 434 231,615 5,482.509 301.676 Total 1/ 1,441,152 69,627 - — Included in total imports, column 2. -oOo- - 22,747 14,796 12,853 - - - 434 - 75,807 - - Imports Sept. 20, 1941, to Dec. 27. 1941 . - - m 25,443 7,088 — 1,599,886 434 - V TREASURY DEPARTMENT Washington POR R E L E A S E , MORNING NEWSPAPERS W ednesday. J a n u a ry 7 . 19 4 3 . 1 /6 /4 2 Press Service N o. (The following address by Daniel W. Bell, Under Secretary of the Treasury, is scheduled for delivery before the Washington Board of Trade, Mayflower Hotel, Washington, D. C . , at 9:30 P . M . . Eastern Standard Time. Tuesday. January 6. 19437) TREASURY DEPARTMENT Washington FOR RELEASE, MORNING- NEWSPAPERS, Wednesday, January 7, 19^2._____ 1 1 y f " in ........... . ' Press Service No. 29-^5 . 1 (The following address hy Daniel W. Bell, Under Secretary of the Treasury, is scheduled for delivery before the Washington Board of Trade, Mayflower Hotel, Washington, D. C., at 9:30 P.M Eastern Standard Time, Tuesday, January 6, 19^2,_) I am happy to be with you tonight because yours is an organization typical of every American city and town, Your group represents the collective enterprise and experience of the Capital City, and we in the Government look to it, and to similar groups throughout the country, for support and understanding in this time of crisis. I need not tell you how much we in ,the Treasury appreciate the good work you have done by promoting our Defense Savings prQgraro, I have been told that the Washington Board of Trade has organized a committee to make personal contact with its 4-,5C0 members in order to promote the sale of Defense Bonds. I am told that your goal of a million dollars virtually has been reached* Yours is a°splendid contribution to the Treasury’s war chest, an outstanding example that proves America’s united resolve to win this war. One month has gone by since the of December, the ’’day that will live in infamy.” I doubt if any other single day in all our history has brought a greater or swifter change in our mental attitude, I doubt if any other month in all our history has brought a greater transformation in the American scene and in the American state of mind. Until Pearl Harbor most of us had been looking into the immediate future through a spyglass that had not yet^been focused. We saw the shadowy outlines of America as an ’’arsenal of democracy,” but the picture had not yet become clear. We talked in vague terms of helping those peoples who were fighting our fight, but we were not yet able to see clearly that it was really our fight. Since December 7th, the blurred outlines have taken precise shape. We now see our country not merely as an abstraction called an arsenal of democracy, but we can see it develop'into a mighty engine of war with all our resources, all our power, all our material and moral strength becoming mobilized to bring us victory. 2~ Already we can see the American giant stirring fbom his long sleep* We can see him throwing off the easy-going Ways of peade and clenching his fists for the stern realities of war. It will not be ah easy transformation. The first of mahy shocks has come already here at home: the production and sale of automobiles and tires, the very symbols of our modern American way of life, are about to be ended for the duration* Shortages of other materials will produce similar shocks upon oub normal living conditions. It will not bé many months before OVery citizen, no matter how sheltered in other times, will feel the Impact of this war upon his everyday life. One way to measure the changes which war has brought and will bring is to look at the financial picture. In the past 18 months — that is, from the fall of France in June 19^0 until the end of last month — we spent about $1^-, 3^0,000,000 on defense. In the month of December we spent close to |2,000,000,000 on the war effort, the largest monthly war expenditure in all our history. These figures represent actual production of materials and equipment needed to fight a total war, yet even these figures must be greatly increased without delay if we are to achieve the destruction of the Axis powers and the liberation of free peoples throughout the world. You probably heard the President’s statement today that we would have to spend $6 billion dollars in the fiscal year 19^3 on the war effort — more than half of our entire National income. We cannot produce immediately the swarms of planes and fleets of ships and great armies of trained men which this figure represents; we cannot reach such a rate of expenditure by waving a magic wand*. Mere appropriations by Congress of billions piled upon billions will not give us the armed strength that will spell victory.. Those appropriations must be translated into actual labor and production in the factories. We must clear the decks for produc tion on a scale which no nation has ever achieved. We shall have to compress into two years the work which Hitler’s Germany took seven years to accomplish. The Budget Message to be delivered to Congress tomorrow will give us further indication of the rate of expenditure necessary to do this. When I stress the size of these expenditures, I do not mean to suggest that we cannot carry them. Of course we can. We can carry them because we Americans believe in the purposes for which we are fighting, we believe in the danger in which our country stands, we believe in the necessity of ridding the earth of a hateful way of life under which our country and all its institu tions would perish. But we cannot carry that burden unless we accept its implications. And those are a severe curtailment of civilian spending, a cheerful acceptance of taxes higher than we have ever known, and a continuing effort to set aside a part of our current income by the systematic purchase of Defense Savings Bonds,. -3- The story of the Defense Savings effort is one illustration of the transformation that Pearl Harbor has brought about in the American mind* We planned this program long ago, we launched it last May, when this country was still in the phase of "all aid short of war" to the enemies of the Axis. I think we laid our foundations carefully and weli. A field organization was created reaching into every State and into every community. We received wonderful help from volunteer workers in all walks of life, in all parts of the country. Yet in the period from May 1st to November JOth, we sold only about $2 billion worth of these securities a figure which, 'although large, was not enough considering our swiftly mounting war expenditures and our growing need for funds. We can thank the Japanese for giving our people the shock that brought Defense Savings into its stride. In December we sold a total of more than $52$ million worth of Defense Bonds, twice as much as the previous monthly average. Of this amount $>3^1 million came from the little bonds, the Series E Bonds, which we regard as the most important of the three types; this was a figure three times as great as the previous monthly average for the sale of these bonds. Not only the dollar volume but the number of individual subscribers in December made us feel that we were selling Bonds at last at a rate comparable to the need. Yet the need is growing by leaps and bounds. Even half a billion dollars a month in Bonds will not be enough in the months to come, which will see war expenditures mounting to a monthly rate of three, four, and ultimately five billion dollars. I hear it said sometimes that it can’t be done. I hear it said that a country at war, with war-time taxes and other unaccustomed burdens cannot save at the rate that will be needed. Let us look, however, at the record of Great Britain. The war savings movement over there produced six hundred million pounds in its second year of operation. Translated into American currency, that is $2,4-00,000,000 in a year. This total accounted for ten per cent of the British national income of six billion pounds. Ten per cent of our National income would be between nine and ten billion dollars. We should do much better than the British because our limit on individual holdings of savings securities is much higher than theirs. England’s experience shows what one brave country can do in the midst of war. Remember that the enemy is just twenty-one miles from the cliffs of Dover; remember that the British have more than three million of their men in uniform and that they are sustaining a war effort on all the seven seas; remember also that their cities have been bombed, their property destroyed, their taxes increased to over Lo per cent of the National income, and their civilian life dislocated to an extent never before known in their history. Yet these people have managed to purchase war savings securities of an amount equal to ten per cent of their National, income. If England can do it, why can't we do even better? My answer is that we can, and we will. Our people need only the same clear realization of their country's need. But it will take immense effort on our part to enlist our country's savings to the same extent. That effort is already under way, and we at the Treasury are depending upon you to put all your weight and influence and energy behind it. In particular we are trying to reach the 40 million men and women"who receive regular income. Their income represents by far the greatest source of the purchasing poitfer that must be diverted into the Treasury and away from civilian consumption if we are to avoid inflation in our war financing. Their income represents the best source of funds for supplying us with the weapons we require. The Treasury has determined to make every pay day Bond Day; that is, it wants. *10 million people to set aside of their own free will a part of every pay check they receive. That'part will have to be a substantial one. As Secretary Morgenthau said the other evening this is not a war that can be won with spare change, It is one that will require the largest possible amount from every person who can afford it, without actually taking food and other necessities from his children, Therefore, I am appealing to you as leading business men of the District to spare no effort in this savings program. It is our job to see that every firm, large or small, sets up savings plans for the convenience of its employees. The District of Columbia Defense Savings Committee is now working out a plan which will involve direct contact with every company in this community. The contacts will be made by men like yourselves who understand Washington and who understand the problem involved. I am convinced that with such a system of contacts estab lished here and in every State of the Union, we shall soon find the name of every wage earner on the Treasury Department's roll of honor. There is no time to lose. Every day that we delay with the production of vital weapons will prolong the war. The factory workers and managers of this country are straining every nerve to see that American soldiers and sailors have fighter planes and anti-aircraft guns and weapons with which to meet a powerful and resourceful enemy. The President said a few months ago that our production of war materials must grow until it is a mighty torrent In the same way, the flow of dollars must increase until that too is a mighty torrent. I am confident that you, as the leaders of the business community in Washington, will not fail to do your part in this effort that is so vital to the winning of the war. I am confident of our success. -rOOOrr xkliSdik - 3 - issue or on subsequent purchase, and the amount actually received either upon sale or redemption at maturity during the taxable year for which the return is made, as ordinary gain or loss* Treasury Department Circular No* 418* as amended, and this notice, prescribe the terms of the Treasury bills and govern the condi tions of their issue. Copies of the circular may be obtained from any Federal Heserve Bank or Branch* - 2 Reserve Banks and Branches, following which public announcement will be made by the Secretary of the Treasury of the amount and price range of accepted bids. sdtting tenders will be advised of the acceptance or rejection thereof. Those sub. The Secretary of the Treasury expressly reserves the right to accept or reject any or all tenders, in whole or in part, and his action in any such respect shall be final. Payment of I accepted tenders at the prices offered must be made or completed at the Federal Re« serve Bank in cash or other immediately available funds on January 14, 1942, provided, however, any qualified depositary will be permitted to make payment by credit for Treasury bills allotted to it for itself and its customers up to any amount for which it shall be qualified in excess of existing deposits when so notified by the Federal Reserve Bank of its District. The income derived fro® Treasury bills, whether interest or gain from the sale or other disposition of the bills, shall not have any exemption, as such, and , loss from the sale or other disposition of Treasury bills shall not have any special j treatment, as such, under Federal tax Acts now or hereafter enacted. The bills shall be subject to estate, inheritance, gift, or other excise taxes, whether Federal or State, but shall be exempt from all taxation now or hereafter imposed on the prin cipal or interest thereof by any State, or any of the possessions of the United State ©r by any local taxing authority. For purposes of taxation the amount of discount at which Treasury bills are originally sold by the United States shall be considered to be interest. Under Sections 42 and 117 (a) (1) of the Internal Revenue Code, as amended by Section 115 of the Revenue Act of 1941, the amount of discount at which bills issued hereunder are sold shall not be considered to accrue until such bills i shall be sold, redeemed or otherwise disposed of, and such bills are excluded from consideration as capital assets. Accordingly, the owner of Treasury bills (other than life insurance companies) issued hereunder need include in his income tax re turn only the difference between the price paid for such bills, whether on original | is# TREASURY DEPARTMENT Is Washington pf!S POR RELEASE, MORNING NEWSPAPERS, Friday, January 9« 19A2______ . m The Secretary of the treasury, "by this nublic notice, invites tenders for $ 150,000,000 or thereabouts, of 91 -day Treasury hills, to he issued on a discount basis under competitive bidding. be dated January 14, 1942 and will mature It.and The bills of this, series will April 1$, 1942____________ when the face amount will be payable without interest. leai They will be issued in bearer form only, apd in denominations of $1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (maturity value). Tenders will be received at Federal Reserve Banks and Branches uu to the 1 closing hour, two o^lock n, m,, Eastern Standard time, J Monday, January 12, 194?, 1 Tenders will not be received at the Treasury Department, Washington, Each tender must be for an even multiple of $1,000, and the price offered must be expressed on the basis of 100, with not more than three decimals, e. g., 99,925, may not be used. Fractions It is urged that tenders be made on the pointed forms and for warded in the special envelopes which will be supplied by Federal Reserve Banks or Branches on application therefor. Tenders will be received without deposit from incorporated banks and trust companies and from responsible and recognized dealers in investment securi ties, Tenders from others must be accompanied by payment of 10 percent of the face amount of Treasury bills applied for, unless the tenders are accompanied by a„n express guarantjr of payment by a.n incorporated bank or trust company. Immediately after the closing hour, tenders will be opened at the Federal« 9 Ä 11 tie the Fp TREASURY DEPARTMENT Washington FOR RELEASE, MORNING NEWSPAPERS, Friday, January 9, 19^2.________ The Secretary of the Treasury, "by this public notice, invites tenders for $150,000,.000, or thereabouts, of Treasury bills, to be issued on a discount basis under competitive bidding. The bills of this series will be dated January 14-, 19^2, and will mature April 15 , 19^2,. when the face amount will be payable without interest. They will be issued in bearer form only, and in denominations of $1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (maturity value). Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, two o ’clock p. m., Eastern Standard time, Monday, January 12, 19$2. Tenders will not be received at the.Treasury Department, Washington. Each tender must be for an even multiple of $1,000, and the price offered must be expressed on the basis of 100, with not more than three decimals, e. g., 99.925. Fractions may not be used. It is urged that tenders be made on the printed forms and forwarded in the special envelopes which will be supplied by Federal Reserve Banks or Branches on application therefor. Tenders will be received without deposit from incorporated banks and trust companies and from responsible and recognized dealers in investment securities. Tenders from others must be accompanied by payment of 10 percent of the face amount of Treasury bills applied for, unless the tenders are accompanied by an express guaranty of payment by an incorporated bank or trust company. Immediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, following which public announcement will be made by the Secretary of the Treasury of the amount and price range of accepted bids. Those submitting tenders will be advised of the acceptance or rejection thereof. The Secretary of the Treasury expressly reserves the right to accept or reject any or all tenders, in whole or in part, and his action in any such respect shall be final. Payment of accepted tenders at the prices offered must be made or completed at the Federal Reserve Bank in cash or other immediately available funds on January 1$, 19$2, provided, however, any qualified depositary will be permitted to make payment by credit for Treasury bills allotted to it for itself and its customers up to any amount for which it shall be qualified in excess of existing deposits when so notified by the Federal Reserve Bank of its district. 29~$6 2- The income derived from Treasury bills, whether interest or gain from the sale or other disposition of the bills, shall not have any exemption, as such, and loss from the sale or other disposition of Treasury bills shall not have any special treatment, as such, under Federal tax Acts now or hereafter enacted* The bills shall be subject to estate, inheritance, gift, or other excise taxes, whether Federal or State, but shall be exempt from all taxation now or hereafter imposed on the principal or interest thereof by any State, or any of the possessions of the United States, or by any local taxing authority. For purposes of taxation the amount of discount at which Treasury bills are originally sold by the United States shall be considered to be interest. Under Sections k2 and 117 (a) (1) of the Internal Revenue Code, as amended by Section 115 the Revenue Act of 1941, the amount of discount at which bills issued hereunder are sold shall not be considered to accrue until such bills shall be sold, redeemed or otherwise disposed of, and such bills are excluded from considera tion as capital assets. Accordingly, the owner of Treasury bills (other than life insurance companies) issued hereunder need include in his income tax return only the difference between the price paid for such bills, whether on original issue or on subsequent purchase, and the amount actually received either upon sale or redemption at maturity during the taxable year for which the return is made, as ordinary gain or loss. Treasury Department Circular No. ^1$, as amended, and this notice, prescribe the terms of the Treasury bills and govern the conditions of their issue. Copies of the circular may be obtained from any Federal Reserve Bank or Branch. -oQo- 2. Th« Secretary of tha Treasury may at any tima, or fro« tino to tina, prescribe supplemental or «Bendatory rulas and regulations governing tha offer* lug, which will be communicated promptly to tha Federal Basare« Banks. HENRY KOHQEHTHAB, JR., Secretary oí the Treasury* «Federal Farm Mortgage Corporation for payment, the proceed« to be applied to payment for Treasury- Bonds of 1949-51*1 if the new bonds are desired registered in another name, «Federal Fans Mortgage Cor poration for payment, the proceeds to be applied to payment for Treasury Bonds of 1949-51 in the name of ... ............. *J if the new bends are desired in coupon fora, «Federal Farm Mortgage Corporation for payment, the proceeds to be applied to payment for Treasury Bonds of 1949-51 in coupon fora to be delivered t o __________ «. (b) Where 2-3/4 percent bonds are surrendered*- If the new bonds are desired registered in the same name as the bonds surrendered, «Federal Farm Mortgage Corporation for purchase, the principal pro ceeds to be applied to payment for Treasury Bonds of 1949-51*1 i£ the new bonds are desired registered in another name, «Federal Farm Mortgage Corporation for purchase, the principal proceeds to be ap plied to payment for Treasury Bonds of 1949-51 1» the name of ...... -*t if the new bonds are desired in coupon form, «Federal Farm Mortgage Cor* poration for purchase, the principal proceeds to be applied to payment for Treasury Bonds of 1949-51 in coupon form to be delivered t o ________** 7X* GENERAL PROVISIONS x* As fiscal agents of the United States, Federal Reserve Banks are authorised and requested to receive subscriptions, to make allotments on the basis and up to the amounts indicated by the Secretary of the Treasury to the Federal Reserve Bank* of the respective districts, to is«» allotment notices, to receive payment for bond« allotted, to make delivery of bonds on full-paid subscriptions allotted, and they W issue interim receipts pending delivery of the definitive bonds* 4 ** tion bonds of 1942*47 In coupon form And accrued interest from September 1, 1941, to January 15, 1942 (#10.33149 par #1,000) mill be paid following acceptance of the bonds. In the ease of registered bonds of either Issue, cheeks in payment of final Interest will be drawn in accordance with the assignments on the bonds sur rendered. ?. mjSRUfDIE OP CALLED BOMBS 1. Coupon bonds.* 3 percent and 2-3/4 percent Federal Farm Mortgage Corpora tion bonds of 1942-47 In coupon form tendered hereunder should be presented and surrendered with the subscription to a Federal Reserve Bank or Branch or to the Treasurer of the United States, Washington, 0» C. Coupons dated July 13, 1942, and March 1, 1942, respectively, and all coupons bearing subsequent dates, should be attached to such bonds when surrendered, and if any such coupons are missing, the subscription must be accompanied by cash payment equal to the faoe amount of the missing coupons. the holder. The bonds must be delivered at the expense and risk of Facilities for transportation of bends by rsglstsred mail insured may be arranged between incorporated banks and trust eompaniss and the Federal Reserve Banks, and holders may take advantage of such arrangements when availa ble, utilising such incorporated banks and trust companies as their agents. 2. Registered bonds.- 3 percent and 2-3/4 percent Federal Fara Mortgage Cor poration bonds of 1942-47 In registered form tendered hereunder should be assigned by the registered payees or assignees thereof in one of the forms hereafter set forth, and thereafter should be presented and surrendered with the subscription to a Federal Reserve Bank or Branch or to the Treasury Department, Division of Loans and Currency, Washington, D. C* and risk of the holder. The bonds must be delivered at the expense The proper forms of assignment are (a) Where 3 percent bends are surrendered.- If the new bonds are desired registered in the same name ae the bonde surrendered, - 3 5« The bonds will be subject to the general regulations of the Treasury De partment, now or hereafter prescribed, governing United States bonds* HI* 1« SUBSCRIPTION AMD ALLOTMENT Subscriptions will be received at the Federal Reserve Baziks and Branches and at the Treasury Department, Washington, and should be accompanied by securi ties of one or more of the issues enumerated in Section I hereof, tendered for pay ment or purchase as the case may be, to an aggrogato par amount equal to the par amount of Treasury Bonds of 1949-51 subscribed for hereunder* Banking institutions generally may submit subscriptions for account of customers, but only the Federal Reserve Banks and the Treasury Department are authorised to act ae official agendas, 2« The Secretary of tho Treasury reserves the right to reject any subscrip tion, in whole or in part, to allot loss than tho amount of bonds applisd for, and to close the books as to any or all subscriptions at any time without notice j and any action he may take in these respects shall bs final* tions, all subscriptions will be allotted in fbll* Subject to these reserva Allotment notices will be sent out promptly upon allotment* IF* 1* PAYMENT Payment at par for bonds allotted hereunder must be made on or before January 15, 194% or on later allotment and may be made only in Treasury Notes of Sari A-1942 or through application of tho principal proceeds of payment of 3 percent Fed eral Farm Mortgage Corporation bonds of 1942-47# 2-3/4 percent Federal Farm Mort gage Corporation bonds of 1942-47# or Reconstruction Finance Corporation notes of Series R, in an aggregate par amount equal to the amount of bonds allotted here under* Coupons dated March 15# 1942, must be attached to Treasury Motes of Series A-1942 when surrendered, and accrued interest from September 15, 1941# to January 15# : 1942 (15*89779 per $1,000) will be paid following acceptance of tho notes* Coupon* dated March 1, 1942, must bo attached to 2-3/4 percent Federal Farm Mortgage Corpora- ] - structlon Finance Corporation 1912, tandered for payaent in this circular, to payment for Tenders of Serios E notes for 11« 1* 2 - noto« oî Borles E, maturing January 15, accordance d t h Sections III and IV oî Treasury bonds subacribed for hereunder. that purpose aro lnvlted, DESCRIPTION OF BOSDS The bonds will bo dated January 15, 1912, and «111 bear interest frem that data at the rate of 2 percent per annun, payable on a seaiannu&l basie cm «June 15 and De comber 15 in each year until the principal amount bocones payable, they «111 nature June 15, 1951# but m j be rsdeensd at the option of the United States on and after June 15, 1919# in «haie or in part# at par and acerued inter est, on any interest day or days, on 1 raonths * notice of redsaption given in such m m ®r as the Secretary of the Treasury shall prescribe. In case of partial ré demption the bonds to be redeemed «ill be detexsdned by such method as m y be prescrlbed by the Secretaiy of the treasury, From the date of rédemption desig- nated in any such notice, interest on the bonds cslled for rédemption shall ceas», 2, The incoas derived from the bonde shall be subject to ail Federal taxes, no« or hereafter imposed. The bonds shall be subjeet to estáte, inheritance, gtft or other excise taxes, whether Federal or State, but shall be exempt from ail taxa tion no« or hereafter imposed on the principal or interest thereof by any State, or any of ths possessions of ths United States, or by any local taxing authorlty, 3, the bonds «ill be acceptable to seeure deposite of public moneya, but «ill not bear the circulation privilège and «ill not be entitled to any privilège of conversion* 4, Bearer bonds «ith interest coupons attachsd, and bonds rsgisterod as te principal and interest, will be issued in dénominations of $50, $100, $500, $1,000, $5,000, $10,000 and $100,000, Provision «ill be nade for ths interchange of bonds of different dénominations and of coupon and reglstered bonds, and for the trenofer of reglstered bonds, umder rules and régulation* prescrlbed by ths Seeretary of the treasury. ' UNITED STATES OF AMERICA 2 PERCENT TREASURY SORBS OF 1949-51 Bated and bearing interest freía January 15, 1942 Due June 15, 1951 REDEEMABLE AT THE OPTION OF TIE UNITED STATES AT PAS AND ACCRUED INTEREST ON AND AFTER JUNE 15, 1949 Interest payable June 15 and December 15 1942 TREASURY DEPARTMENT, Department Circular No. 6?6 ---- Office of the Secretary, Washington, January 12, 1942, Fiscal Service Bureau of the Public Debt X. 1. OFFERING OF BONDS AND INVITATION FOR TENDERS The Secretary of the Treasury, pursuant to the authority of the Second liberty Bond Act, as amended, invites subscriptions, at par, from the people of the United States for 2 percent bonds of the United States, designated Treasury Bonds of 1949*51, the amount of the offering to be Halted to the aaount of securities tendered and accepted as provided in ths following subparagraphs t (a) Treasury Notes of Scries A-1942.-Trsasury Notes of Series 4-1942, maturing March 15, 1942, will be accepted in payment for Treasury bonds subscribed for hereunder. 0>) 3 Percent Federal Farm Mortgage Corporation Bonds of 1942-47.The Secretary of the Treaeury offers to apply the proceeds of payasnt of 3 percent Federal Farm Mortgage Corporation bonds of 1942-47, called for redemption on January 15, 1942, tendered for payment in accordance with Sections III and IV of this circular, to payment for Treasury bonds subscribed for hereunder. Tenders of 3 percent Federal Farm Mortgage Corporation bonds of 1942-47 for that purpose are invited. _ M &>3/4. Percent Federal Farm Mortgage Corporation Bonds of 1912-47.The Secretary of the Treasury, on behalf of the Federal Farm Mortgage Corporation, offers to purchase on January 15, 1 9 4 2 , at par and accrued interest, 2-3/4 percent Federal Farm Mortgage Corporation bonds of 1942-47, called for redemption on March 1, 1942, to the extent to which the holders thereof subscribe for Treasury bends hereunder. Tenders of 2 -3 / 4 percent Federal Farm Mortgage Corporation bonds of 1942-47 for that purpose are invited. W Reconstruction Finance Corporation Notes of Series R.-The Secre tary of the Treasury offers to apply the proceeds of payment of Recon- — 2 — Subscriptions will b© received at the Federal Reserve Banks and Branches, and at the treasury Department, Washington. Banking institutions generally m y submit subscriptions for account of customers, but only the Federal Reserve Ranks and the Treasury Department are authorised to aot as official agencies. Subscriptions should be accompanied by securities cf one or more cf the four issues enumerated in the first paragroph of this statement, to an aggregate par amount equal to the par amount of the nee Treasury bonds subscribed for. Coupons dated Sanitary 15, 1942 should be detached from the S Percent Federal Farm Mortgage Corporation bonds and the Reconstruction Finance Corporation notes and eashed In regular course. Following acceptance of the Treasury notes and the 2-5/4 Percent Federal Farm Mortgage Corporation bonds, accrued interest to January 15, 1942, about 110.55 and $5.90 per |1 ,000 respeetively, will be paid to the owners of the securities surrendered. The right is reserved to close the books as to any or all subscriptions at any time without notice* Subject to the reservations set forth in the official circular, all subscriptions will be allotted in full. The amounts cf the four Issues now outstanding are approximately as fellows t Treasury Motes of Series A.-1942, $426,000,000} 5 Percent Federal Farm Mortgage Corporation bonds of 1942-47, $256,000,000; 2-5/4 Percent Federal Farm Mortgage Corporation bonds of 1942-47, $103,000,000; and Reconstruction Finance Corporation notes ef Series R, $510,000,000. The text of the official circular followst TREASURY DEPARTMENT Washington Press Servios Sunday, January 11. 1942. —1/ 10w/ « — ^ — *— Z-/-V7 Secret: Secretary of the Treasury Horgenthau today announced a plan for refinancing , reflnanc: a Treasury issue and -three corporate issues which shortly ease due for payment* These Issues are the Treasury Metes of Series &*1942, maturing March 15, 1942, the 5 Percent Federal Farm Mortgage Corporation bonds of 1942*47, called for redemption on January 15, 1942, the 2*3/4 Percent Federal Farm Mortgage Corpo ration bonds of 1942-47, called for redemption on March 1, 1942, and the Reconstruction Finance Corporation Motes of Series R, maturing January 15, 1942» lithe Recoil An issue of Treasury bonds is being made available to the holders of the four BtiringJsnu issues enumerated on a par for par basis, with adjustments of accrued interest M e availabl to January 15, 1942 in the ease of the Treasury notes and the 2*3/4 Federal far for par b Farm Mortgage Corporation bonds. The bases on which the securities comprising W in t these four Issues may be presented and accepted, and the new bends obtained, are specifically set forth in the official circular released today* The boohs will be opened for the receipt of subscriptions tomorrow morning, asth January 12* The Treasury boads nosr offered will be dated January 15, 1942, and will bear interest from that date at the rata of two per cent per snnum payable en a semi-annual baeie on June 15 and Deoember 15 in eaeh year* They will sature June 15, 1951, but may be redeomsd, at the cptlen of the Onited States, on and after June 15, 1949* They will be ieeued in two formes bearer bonds with interest coupons attaohed, and bonds registered both as te principal and intersst* Both forma will be ieeued in the dsnominations of |50, $100, $500, ♦1,000, $5,000, $10,000 and $100,000* talar rele f subscript! The Tre bear pay ® option [pursuant te the provieions of the Public Debt Act of 1941, interest upon thi Mìlite bonds now offered shall not have any exemption, aa such, tinder Federal Tax Asta now or hereafter enacted* Otherwise the securitise will be accorded the earns exemptions from taxation as are accorded other Issues of Treasury bonds now outstanding* These provisions are specifically set forth in the official circular released today* attac TREASURY DEPARTMENT Washington FOR RELEASE, MORNING- NEWSPAPERS, Sunday, January 1 1 , 1 9 ^-2 ._______ - Press Service No i 29-^7 l/lO/k-2 Secretary of the Treasury Morgenthau today announced a plan for refinancing a Treasury issue and three corporate issues which shortly come due for payment, These issues are the Treasury Notes of Series A-*l 9*1-2, maturing March 15; 19*1-2,. the 3 Percent Federal Farm Mortgage Corporation bonds of 19*1-2-*1-7, called for redemption on January 15, 19*1-2, 'the.2-3/^ Percent Federal Farm Mortgage Corpo ration bonds of 1 9 ^ 2 ^ 7 , called for redemption on March 1, 19*1-2, and the Reconstruction Finance Corporation Notes of Series R, maturing January 15; -19*1-2* An issue of Treasury bonds is being made available to the holders of the four issues enumerated on a par for par basis, with adjustments of accrued interest to January 15; 19*1-2 in the case of the Treasury notes and the 2-3/^ Federal Farm Mortgage Corporation bonds. The bases on which the securities comprising these four issues may be presented and accepted, the new bonds obtained, circular released today. and are specifically set forth in the official The boohs will be opened for the receipt of subscriptions tomorrow morning, January 12. The Treasury bonds now offered will be dated.January 15, 19*1-2, and will bear interest from that date at the rate of two percent per annum payable on a semi-annual basis on June 1 5 and December 1 5 in each year. They will mature June 1 5 , 1951; but may be redeemed, at the option of the United States, on and after June 1 5 ., 19*1-9They will be issued in two forms: bearer bonds with interest coupons attached, and bonds registered both as to principal and interest. Both forms will be issued in the denominations of $5°; -2Pursuant to the provisions of the Public Debt Act of 19^1, interest upon the bonds now offered shall not have any exemption, as such, under Federal Tax Acts now or hereafter enacted. Otherwise the securities will be accorded the same exemptions from taxation as are accorded other issues of Treasury bonds now outstanding’ These provisions are specifically set forth in the official circu lar released today. Subscriptions will be received at the Federal Reserve Banks and Branches, and at the Treasury Department, Washington. Banking institutions generally may submit subscriptions for account of customers, but only the Federal Reserve Banks and the Treasury^ Department are authorized to act as official agencies, Subscrip tions should be accompanied by securities of one or more of the four issues enumerated in the first paragraph of this statement, to an aggregate par amount equal to the par amount of the new Treasury bonds subscribed for. Coupons dated January IB, 19^2 should be detached from the 3 Percent Federal Farm Mortgage Corpor ation bonds and the Reconstruction Finance Corporation notes and cashed in regular course. Following acceptance of the Treasury notes and the 2 - j A Percent Federal Farm Mortgage Corporation bonds accrued interest to January 15* 19^2, about $10.33 an& $5*9^ Pfr $1,000 respectively, will be paid to the owners of the securities surrendered. The right is reserved to close the books as to any or all subscriptions at any time without notice. Subject to the reserva tions set forth in the official circular, all subscriptions will be allotted'in full. The amounts of the four issues now outstanding are approxi mately as follows; Treasury Notes of Series A- 19 ^-2 , $^4-26,000,000; 3 Percent Federal Farm Mortgage Corporation bonds of 19^2-^7, $ 236 ,000,000; 2 - 3 A Percent Federal Farm Mortgage Corporation bonds of 19^2-14-7, $1 0 3 ,000,000; and Reconstruction Finance Corpora tion notes of Series R, $ 3 ^ 0 ,000,000. The text of the official circular follows; UNITED STATES OF AMERICA 2 PERCENT TREASURY BONDS OP 1949-51 Dated and bearing interest from January 15, 1942 Dae June 15, 1951 REDEEMABLE AT THE OPTION OP THE UNITED STATES AT PAR AND ACCRUED INTEREST ON AND AFTER JUNE 15, 1949 Interest payable June 15 and December 15 1^42 Department Circular No* 676 ____ TREASURY DEPARTMENT, Office of the Secretary, Washington, January 12,1942. Fiscal Service Bureau of the Public Debt I. OFFERING OP BONDS AND INVITATION FOR TENDERS 1. The Secretary of the Treasuiy, pursuant to the authority of the Second Liberty Bond Act, as amended, invites subscriptions, at par, from the people of the United States for 2 percent bonds of the United States, designated Treasury Bonds of 1949-51, the amount of the offering to be limited to the amount of securities tendered and accepted as provided in the following subparagraphs! (a.) Treasury Notes of Series A-1942.-Treasury Notes of Series A-1942, maturing March 15, 1942, will be accepted in payment for Treasury bonds subscribed for hereunder. (b ) 3 Percent Federal Farm Mortgage Corporation Bonds of 1942-47.The Secretary of the Treasury offers to apply the proceeds of payment of 3 percent Federal Farm Mortgage Corporation bonds o f ‘1942-47, called for redemption on January 15, 1942, tendered for payment in accordance with Sections III and IV of this circular, to payment for Treasury bonds subscribed for hereunder. Tenders of 3 percent Federal Farm Mortgage Corporation bonds of 1942-47 for that purpose are invited. (c ) 2r.3/4 Percent Federal Farm Mortgage Corporation Bonds of 1942-47 . * * The Secretary of the Treasury, on behalf of the Federal Farm Mortgage Corporation, offers to purchase on January 15, 1942, at par and accrued interest, 2-3/4 percent Federal Farm Mortgage Corporation bonds of 1942-47, called for redemption on March 1, 1942, to the extent to which the holders thereof subscribe for Treasury bonds hereunder. Tenders of 2-3/4 percent Federal Farm Mortgage Corporation bonds of 1942—47 for that purpose are invited. (d) Reconstruction Finance Corporation Notes of Series R ,- The Secretary of the Treasury offers to apply the proceeds of payment of Reconstruction Finance Corporation notes of Series R, maturing January 15, 1942, tendered for payment in accordance with Sections III and IV of this circular, to payment for Treasury bonds subscribed for hereunder. Tenders of Series R notes for that purpose are invited. II. DESCRIPTION OF BONDS 1. The Bonds will "be dated January 15, 1942, and will bear interest from that date at the rate of 2 percent per annum, payable on a semiannual basis on June 15 and December 15 in each year until the principal amount becomes payable. They will mature June 15t 1951,' but may be redeemed at the option of the United States on and after June 15, 1949, in whole or in part, at par and accrued interest, on any interest day or days, on 4 months’ notice of redemption given in such manner as the Secretary of the Treasury shall prescribe. In case of partial redemption the bonds to be redeemed will be determined by such method as may be prescribed by the Secretary of the Treasury. From the date of redemption desig nated in any such notice, interest on the bonds called for redemption shall cease. 2. The income derived from the bonds shall be subject to all Federal taxes, now or hereafter imposed. The bonds shall be subject to estate, inheritance, gift or other excise taxes, whether Federal or State, but shall be exempt from all taxation now or hereafter imposed on the principal or interest thereof by any State, or any of the possessions of the United States, or by any local taxing authority. 3. The bonds will be acceptable to secure deposits of public moneys, but will not bear the circulation privilege and will not be entitled to any privilege of conversion. 4. Bearer bonds with interest coupons attached, and bonds registered as to principal and interest, will be issued in denominations of $50, $100, $500, $1,000, $5,000, $10,000 and $100,000. Provision will be made for the interchange of bonds of different denominations and of coupon and registered bonds, and for the transfer of registered bonds, under rules and regulations prescribed by the Secretary of the Treasury. 5. The bonds will be subject to the general regulations of the Treasury Department, now or hereafter prescribed, governing United Statas bonds. Ill, SUBSCRIPTION AND ALLOTMENT 1. Subscriptions will be received at the Federal Reserve Banks and Branches and at the Treasury Department, Washington, and should be accompanied by securities of one or more of the issues enumerated in Section I hereof, tendered for payment or purchase as the case may be, to an aggregate par amount equal to the par amount of Treasury Bonds of 1949-51 subscribed for hereunder. Banking institutions generally may submit subscriptions for account of customers, but only the Federal Reserve Banks and the Treasury Department are authorized to act as official agencies. 2. The Secretary of the Treasury reserves the right to reject any subscrip tion, in whole or in part, to allot less than-the amount of bonds applied for, and to close the books as to any or all subscriptions at any time without notice; and any action he may take in these respects shall be final. Subject to these reservations, all subscriptions will be allotted in full. Allotment notices will be sent out promptly upon allotment. - IV. 3 - PAYMENT 1. Payment at par for bonds allotted heretlnder must be made on or before January 15, 1942, or on later allotment and may be made only in Treasury Notes of Series A-1942 or through application of the principal' proceeds of payment of 3 percent Federal Farm Mortgage Corporation bonds of 1942-47, 2-3/4 percent Federal Farm Mortgage Corporation bonds of 1942-47, or Reconstruction Finance Corporation notes of Series R, in an aggregate par amount equal to the amount of bonds allotted hereunder. Coupons dated March 15, 1942, must be attached to Treasury Notes of Series A-1942 when surrendered, and accrued interest from September 15, 1941, to January 15, 1942 ($5.89779 per $1,000) will be naid'following acceptance of ' the notes. Coupons dated March 1, 1942, must be attached to 2-3/4 percent Federal Farm Mortgage Corporation bonds of 1942—47 in coupon form and accrued interest from September 1, 1941, to January 15, 1942 ($10.33149 per $1,000) will be paid following acceptance of the bonds. In the cose of registered bonds of either issue, checks in payment of final interest will be drawn in accordance with the assignments on the bonds surrendered. V. SURRENDER OF CALLED BONUS 1» Coupon bonds.-3 percent and 2— 3/4 percent Federal Farm Mortgage Corpora tion bonds of 1942-47 in coupon form tendered hereunder should be presented and surrendered with the subscription to a Federal Reserve Bank or Branch or to the Treasurer of the United States, Washington, D. C. Coupons dated July 15, 1942, and March 1, 1942, respectively, and all coupons bearing subsequent dates, should be attached to such bonds when surrendered, and if any such coupons are missing, the subscription must be accompanied by cash payment equal to the face amount of the missing coupons. The bonds must be delivered at the expense and risk of the holder. Facilities for transportation of bonds by registered mail insured may be arranged between incorporated banks and trust companies and the Federal Reserve Banks, and holders may take advantage of such arrangements when available, utilizing such incorporated banks and trust companies as their agents. 2* Registered bonds.-3 percent and 2-3/4 percent Federal Farm Mortgage Corporation bonds of 1942-47 in registered form tendered hereunder should be assigned by the registered payees or assignees thereof in one of the forms here after set forth, and thereafter should be presented and surrendered with the sub scription to a Federal Reserve Bank or Branch or to the Treasury Department, Division of Loans and Currency, Washington, D. G. The bonds must be delivered at the expense and risk of the holder. The proper forms of assignment are (a) Where 3 percent bonds are surrendered.— If the new bonds are desired registered in the same name as the bonds surrendered, ^Federal Farm Mortgage Corporation for payment, the proceeds to be applied to payment for Treasury Bonds of 1949-51°; if the new bonds are desired registered in another name, °Federal Farm Mortgage Corporation for payment, the proceeds to be applied to payment for Treasury Bonds of 1949-51 in the name of ------— ____________» if the new bonds are desired in coupon form, °Federal Farm Mortgage Corporation for payment, the proceeds to be applied to payment for Treasury Bonds of 1949-51 in coppon form to be delivered to __________ - 4 (b) Where 2-3/4 percent bonds are surrendered.- If the new bonds are desired registered in the same name as the bonds surrendered, ’’Federal Farm Mortgage Corporation for purchase, the principal proceeds to be applied to payment for Treasury Bonds of 1949-51” ; if the new bonds are desired registered in another name, ’’Federal Farm Mortgage Corporation for purchase, the principal proceeds to be applied to payment for Treasury Bonds of 1949—51 in the name of 11* if the new bonds are desired in coupon form, ’’Federal Farm Mortgage Corporation for purchase, the principal proceeds to be applied to payment for Treasury Bonds of 1949-51 in coupon form to be delivered to .. w• VI. GENERAL PROVISIONS 1. As fiscal agents of the United States, Federal Reserve Banks are authorized and requested to receive subscriptions, to make allotments on the basis and up to the amounts indicated by the Secretary of the Treasury to the Federal Reserve Banks of the respective districts, to issue allotment notices, to receive payment for bonds allotted, to make delivery of bonds on full-paid subscriptions allotted, and they may issue interim receipts pending delivery of the definitive bonds. 2. The Secretary of the Treasury may at any time, or from time to time, prescribe supplemental or amendatory rules and regulations governing the offering, which will be communicated promptly to the Federal Reserve Banks. HENRY MORGENTHAU, JR., Secretary of the Treasury. COPY In view of recurring rumors that the Government was planning to confiscate savings accounts, Secretary Morgenthau today entered an emphatic denial tha,t this was so. ”1 wish to state most emphatically that there are no foundations whatever for such rumors,” Mr. Morgenthau said. ’’The Federal Government does not have under consideration any proposal involving the confiscation of savings deposits of this country for any purpose. ’•Furthermore,H he added, ’’any one circulating rumors of this character is acting against the welfare of the nation.” TREASURY DEPARTMENT Washington FOR IMMEDIATE RELEASE, Monday, January 12, 19^2. Press Service No. 29-48 In view of recurring rumors that the G-overnment was planning to confiscate savings accounts, Secretary Morgenthau today entered an emphatic denial that this was so. «1 wish to state most emphatically that there are no foundations whatever for such rumors ,*1 Mr, Morgenthau said, “The Federal G-overnment does not have under consideration any proposal involving the confiscation of savings deposits of this country for any purpose, “Furthermore,“ he added, “any one circulating rumors of this character is acting against the welfare of the nation.“ - 0 O 0 - - 2 - the «loe« of the «ubeoriptlon book«* Announcement of the unirb of aub«orlptlona and their division mmmg the •eves«! Federal Heserv* Metrici» *132 be »de Inter* < TREASURY DEPARTMENT Washington FOR RELEASE« MORNING NEWSPAPERS, Tuesday. January 13« 1943,----1/12/42 Pr®«* Sendee 2 / *+7 Secretary of the Treasury Morgenthau announced last night that the subscrip tion books for the current offering of 2 percent Treasury Bonds of 1949-51, open to the holders of Treasury Notes of Series A-1942, Maturing March 15, 1942, the 3 percent Federal Farm Mortgage Corporation Bonds of 1942-47, called for redemp tion on January 15, 1942, the 2-3/4 percent Federal Farm Mortgage Corporation bonds of 1942-47, called for redemption on March 1, 1942, and the Reconstruction Finance Corporation notes of Series R, Maturing January 15, 1942, sill close at the close of business Tuesday, January 13, except for the receipt of subscription! from holders of $ 1 ^ 0 0 0 or less of the two issues of Federal F a m Mortgage Corpora tion bonds. The subscription books will d o s e at the d o s e of business Wednesday, January 14, for the receipt of subscriptions of the latter class. The offer to apply the proceeds of payment of the 3 percent Federal F a m Mortgage Corporation bonds and the Reconstruction Finance Corporation notes, and the offer to purchass the 2-3/4 percent Federal F & r a Mortgage Corporation bonds, in each case the prin cipal proceeds of payment to be applied to payment for a like par anount of the new Treasury bonds, will also terminate at the time the books d o s e for the re ceipt of subscriptions of the respective classes. Many smaller holders of the bonds do not have as immediate access to their securities, and are not as conversant with the manner of entering subscriptions, as the larger holders, and for these reasons they are given an extra day in uhich to take advantage of the offering. Subscriptions of either olase addressed to a Federal Beserve Bank or Branch, or to the Treasury Department, and plaeed in the nail before 12 o'clock aidnight of the respective closing days, will be considered as having bean entered before j TREASURY DEPARTMENT Washington Press Service No. 29-49 FOR RELEASE, MORNING- NEWSPAPERS, Tuesday, January 13, 1942.______ 1/12/42 Secretary of the Treasury Morgenthau announced last night that the subscription books for the current offering of 2 percent Treasury Bonds of -1 9 Lî-9 — 5 1 , open to the holders of Treasury Notes of Series A-1942, maturing March 1 5 , 1942, the 3 percent Federal Farm Mortgage Corporation Bonds of 1942-47, on January 1 5 , 1942, called for redemption the 2«*-3/^ percent Federal Farm Mortgage Corporation bonds of 1942-47, 1942, . called for redemption on March 1, and the Reconstruction Finance Corporation notes of Series R maturing January 1 5 * 1942, will close at the close of business Tuesday, January 13, except for the receipt of subscriptions from holders of $ 15,000 or less of the two issues of Federal Farm Mortgage Corporation bonds. The subscription books will close at the close of business Wednesday, January l4, for the receipt of subscriptions of the latter class. The offer to apply the pro ceeds of payment of the 3 percent Federal Farm Mortgage Corporatioi bonds and the Reconstruction Finance Corporation notes, and the offer to purchase 2-3/4 percent Federal Farm Mortgage Corporation bonds, in each case the principal proceeds of payment to be applied to payment for a like par amount of the new Treasury bonds, will also terminate at the time the books close for the receipt of subscriptions of the respective classes, Many smaller holders of the bonds do not have as immediate access to their securities, and are not as conversant with the manner of entering subscriptions, as the larger holders, and for these reasons they are given an extra day in which to take advan tage of the offering. - 2 - Subscriptions of either class addressed to a Federal Reserve Bank or Branch, or to the Treasury Department, and placed in the mail before 12 o'clock midnight of the respective closing days, will be considered as having been entered before the close of the subscription books, Announcement of the amount of subscriptions and their division among the several Federal Reserve Districts will be made later. - 0O 0- THEASÜHT DEPARTMENT Washington Press Service 2 ?- JOE HELMSE, M O H R i m NEWSPAPERS, Tuesday« January 13. 1942*----- 1/12/42 The Secretary of the Treasury announced last evening that the tenders for $150,000,000» or thereabouts» of 91-day Treasury bills» to be dated January 14 and to mature April 15» 1942, which were offered on January 9» sere opened at the Federal Reserve Banks on January 12. The details of this issue are ae follows: Total applied for - $384,694,000 Total accepted - 150,047,000 Range of accepted bids: High 10V (Excepting one tender of $300,000) ^ 100. - 99.963 Equivalent rate approximately 0.146 percent * 0.119 11 Average price- 99*970 o & & TREASURY DEPARTMENT Washington FOR RELEASE, MORNING NEWSPAPERS, Tuesday, January 13. 19^2. Press Service No, 29-50 Î/12/Ï2 The Secretary of the Treasury announced last evening that the tenders for $1 5 0 ,000,000, or thereabouts, bills, of 91~Jay Treasury to be dated January 14- and to mature April 1 5 , 19^-2, which were offered on January 9; were opened at the Federal Reserve Banks on January 1 2 . The details of this issue are as follows: Total applied for - $ 3 ^ , 6 9 ^ , 0 0 0 Total accepted - 150,047,000 Range of accepted bids; (Excepting one tender of $300,000) High - 1 0 0 , Low - 99.963 Equivalent rate approximately 0 .1^6 percent Average Price - 99.970 u " ? 0.119 " - o0 q ~ 'V' DIVIDEND PAYMENTS TO CREDITORS OF INSOLVENT NATIONAL BANKS AUTHORIZED DURING THE MONTH ENDED December 31. 1941 _ Name and Location of Bank Nature of Dividend Date Authorized Number and Percentage of Dividend Authorized Distribution of Funds by Dividend Authorized North Capital Savings Bk Washington, D. C. Final 12-15-41 4th 5 .395S 1 Park Savings Bank Washington, D. C* Final 12-19-41 3rd The Will County NB of Joliet, Illinois Final 12-31-41 The First NB of Ypsilanti, Michigan Final The First NB of Anadarko, Oklahoma The First NB of Beaver Falls, Perrna. Total Percentage Authorized Dividends to Date Number of Amount Claims m flim an tf! Prmrad 50,700 3 6 .64$ 5,857 940,600 4.18$ 120,100 36.68$ 11,845 2,872,500 5th 6.71$ 154,500 72.71% 5 ,6 1 0 2,302,433 12-17-41 6th 6 .39 $ 134,700 71.33% 5,100 2,107,400 Regular 12-3-41 1st 55.00$ 327,100 55.00$ 1,474 594,800 Final 12-26-41 6th 5 .33 * 43,401 95.33* 5 ,8 9 6 908,097 D0 & TREASURY DEPARTMENT Comptroller of the Currency Washington FOR RELEASE, MORNING NEWSPAPERS Press Service During the month ended December 31* 194-1* authorizations were issued to receivers for payments of dividends to the creditors of six insolvent national banks. Dividends so authorized will effect total distributions of $835*501 to 35*782 claimants who have proved claims aggregating $9,725,830, or an average payment X V v of 8.59 percent. \\ authorized were 4*18 percent and 55*0 percent, while the smallest The minimum and maximum percentages of dividends and largest payments involved in dividend authorizations during the month were $48,401 and $327,100, respectively. Of the six dividends authorized, one was a regular dividend payment, and five were final dividend payments, Dividend payments so authorized during the month ended December 31, 1941* were as follows: . JM » DIVIDEND m i Œ H T S TO ©EDITORS OF INSOLVEST NATIONAL BANKS AUTHORIZED BORIS« THE MONTH EBBED --------------------- — J k f i ^ b e r j i . 1 9 4 1 __________ Nature of «» .«od Locati.» o f Bang North Capital Savings $fe Washington, 0* C. Park Savings Bank Washington, D* C* The mil County SB of Joliet, Illinois Dividend Final Final Final •im&ber slid Percentage of Bivi dead ¿.ut. »orlZ|B<i Distribution of Funds by Dividend Authorlaed Total Percent&ge Authorised Dividends to. Date 12-15-41 1th 5.39* $ 50,700 3 6 .64 « 5,857 910,600 i2-i9-*a 3rd 4.13« 120,100 36.68« 11,345 2/872,500 12-31-^1 5th 6.71« 151,500 7 2 .7 1 « 5,610 2,302,133 12-17-41 6th 6.39« 131,700 71.39« 5,1 0 0 2,107,400 12-3-41 lut 55.00« 327,100 35.00« 1,474 594,S00 12-26-41 6th ¿ S IA 95.33« 5,896 ^ 908,097 Date -.at.norl^d Ihmber of Cl»tM nt. Amount Claims The First IS of ïpsilanti, Siohig&n The First MB of Aiuftd&rko, Oklahoma F in a l Regular Ttes first IB of Bm m r Fall«, Penna* Final 5.33« ' ' tB$gm r^s®i 2 s § i § i | m - trayusmr m ^ i w Comptroller of the Currency Washington FOE BfiJEJUSS* iOPJflliG 1MSPAPKR8 Press Service Baring the south «sided December 3 1 » 1 9 1 1 » authorisations were issued to .receivers for payments of dividends to the creditors of ©As; insolvent national banks* Dividends so authorised will effect total distributions of #835,501 to 35,782 claimants who haw«* proved claims aggregating $9,725,830, or an average payment of 8*59 percent* gi W*8$&M The alnimxa arid mmx±mm -percentages of dividends authorised were 1*18 percent and 5 5*0 percent, while the smilest m d largest payments involved in dividend authorisations during the mi mzmth. were $48,101 and $327,100, respectively* liSS Of the sir. dividends authorised, one m s a regular dividend payment, ant' five were final dividend payments* mdml DsesntMor dividend payments m authorised during the month 3 1 , 1 9 /,1 , were m follows! iSi&'.lSV »§§ mm m$ l-j WmMim ypgg mmsmm '. :" ■■ TREASURY DEPARTMENT Comptroller of the Currency Washington Press Service No. 29-51 FOR RELEASE, MORNING NEWSPAPERS, Wednesday, January 14, 1942, During the month ended December 31, 1941, authorizations were issued to receivers for payments of dividends to the creditors of six insolvent national hanks. Dividends so authorized will effect total distributions of $835,501 to 35,782 claimants who have proved claims aggregating $9,725,830, or an average payment of 8.59 percent. The minimum and maximum percentages of dividends authorized were 4.18 percent and 55.0 percent, while the smallest and largest payments involved in dividend authorizations during the month were ^^9,401 and $327,100, respectively. Of the six dividends authorized, one was a regular dividend payment, and five were final dividend., payments. Dividend payments so authorized during the monuh ended December 31, 1941, were as follows: DIVIDEND PAYMENTS TO CREDITORS OP INSOLVENT NATIONAL BANKS AUTHORIZED DURING- THE MONTH ENDED _______________ December ^1. 1941_______ ___________ Date Authorized Number and Percentage of Dividend Authorized Distribution of Punds by Dividend Authorized $ Name and Location of Bank Nature of Dividend North Capital Savings Bk Washington, D.I C. Pinal 12-15-41 4th 5-39$ Park Savings Bank Washington, D. C. Pinal 12-19-41 3rd The Will County NB of Joliet, Illinois Pinal The Pirst NB of Ypsilanti, Michigan Pinal The Pirst NB of Anadarko, Oklahoma The Pirst NB ef Beaver Palls, Penna. Total Percentage Authorized Dividends to Date Number of Claimants Amount Claims Proved 50,700 36.645b 5,257 940,600 4.130 / 120,100 36*62$ n,g45 2,872,500 5th 6 .7 I56 154,500 5,610 2,302,U33 12-17-41 6 th 6.39^ 134,700 5,100 2,107,400 Regular 12-3-Ul 1st 55. 327,100 53.00^ i,w 594,300 Pinal 12-26-41 6 th 5.33% 43,4oi 95*33% 5,296 908,097 - 0O0- TREASURY DEPARTMENT Washington FOR IMMEDIATE RELEASE, Tuesday, January 13, 1942 . Press Service No. Z 9 ~ ù ~ Z - The Treasury Department, through its Foreign Funds Control division, today announced that it had ordered the immediate suspension of five top-flight executives of the General Aniline and Film Corporation, under the Executive Order freezing German assets in this country. Until further notice the Treasury will deny them access to the company's properties and personnel for any purpose. The officials involved are Rudolph Hutz, $80,000-a-year Vice-President and Director of the Company; Hans Aickelin, Vice-President and Production Manager of the General Aniline Works Division of the Company; William vom Rath, Vice-President of the Company supervising the Ozalid Division; Leopold Eckler, Acting General Manager of the Agfa-Ansco Division of the Company; and F. W. von Meister, General Manager of the Ozalid Division of the Company. All of these officials are naturalized hut have definite j German backgrounds and, prior to their coming to the United States,! were identified in Germany with the I. G. Farbenindustrie. In the judgment of the officials of the Treasury Department, these individuals for years have personified the domination of the Company by the German Dye Trust. ^ The Company has been operating under a Treasury business license since last June, and its affairs have been under investi gation by the Treasury. The Treasury announced that additional corrective action will be taken as the investigation proceeds and circumstances warrant. TREASURY DEPARTMENT Washington FOR IMMEDIATE RELEASE, Tuesday, January 13» 1 9 ^ 2 . The Treasury Department, division, Pr*ess Service No. 2 9 - ^ 2 through its Foreign Funds Control today announced that it had ordered the immediate sus- pension of five top-flight executives of the General Aniline and Film Corporation, under the Executive Order freezing German assets in this country. Until further notice the Treasury will deny them access to the company's properties and personnel for any purpose. The officials involved are Rudolph Hutz, $S 0 ,OQQ-a-year Vice-President and Director of the Company; Hans Aickelin, VicePresident and Production Manager of the General Aniline Works Division of the Company; William vom Rath, Vice-President of the Company supervising the Ozalid Division; Leopold Eckler, Acting General Manager of the Agfa-Ansco Division of the Company; and F. W, von Meister, General Manager of the Ozalid Division of the Company. All of these officials are naturalized but have definite German backgrounds and, prior to their coming to the United States, were identified in Germany with the I. G. Farbenindustrie. In the judgment of the officials of the Treasury Department, these individuals for years have personified the domination of the Company by the German Dye Trust. The Company has been operating under a Treasury business license since last June, and its affairs have been under investi gation by the Treasury. The Treasury announced that additional corrective action will be taken as the investigation proceeds and circumstances warrant. -oOo - 2 n - : Established Quota :Unit of : Imports as of : Period & Country s Quantity :Quantity: Dec. 31, 19Ì0. Commodity Silver or black foxes, furs, and articles: Tails 12 months from December 1, 19l*l £,000 Piece (Import quota filled) Paws, heads, or other separated parts it £00 Pound (Import quota filled) Piece plates tt ££0 Pound None Articles, other than piece plates « £00 Units 8 Crude petroleum, topped crude petroleum, and fuel oil Calendar year Venezuela 1,913 >0l*9>600 Netherlands Colombia Other Countries Molasses and sugar sirups containing soluble nonsugar solids equal to more than 6% of total soluble solids Calendar year Gallon £78,806,200 n 86,956,800 n 138,£87>1*00 0 1,£00,000 Gallon (Prepared - Appeals and Protests (Quota Unit) Bureau of Customs) (Tariff rate quota filled) (Tariff rate quota filled) (Tariff rate quota filled) (Tariff rate quota filled) (Tariff rate quota filled) 1 i j PRESS RELEASE The Bureau of Customs announced today preliminary figures for imports of commodities within quota limitations provided for under trade agreements, from the beginning of the quota periods to December 31, 19l±l, inclusive, as follows; Commodity ; Established Quota ; Period & Country; Quantity Cattle less than 200 pounds each Calendar year Cattle, 700 pounds or more each (other than dairy cows) ;Unit of ; Imports as of ;Quantity ; Dec. 31, 19ld. 100,000 Head (Tariff rate quota filled) Quarter year from Oct. 1, 19ul Canada 5 1,7 2 0 Head (Tariff rate quota filled) Other countries 6,212 tt it 11 ■Whole milk, fresh or sour Calendar year 3 ,000,000 Gallon 6,360 Cream, fresh or sour Calendar year 1 ,500,000 Gallon 1,288 Fish, fresh or frozen filleted, etc., cod, haddock, hake, pollock, cush and rosefish Calendar year 1 5 ,000,000 Pound 9,989,853 Sept. I?, 19iP- 90 ,000,000 Pound 9,693 ,ii66 12 months from Sept. l£, 19i|l 60,000,000 Pound 1,017,U à Cuban filler tobacco, unstemmed or stemmed (other than cigarette leaf tobacco), and scrap tobacco Calendar year Pound (Unstemmed 22,000,000 equivalent) Red Cedar shingles Calendar year White or Irish potatoes Certified seed Other Silver or black foxes, furs, and articles; Foxes valued under $250 ea. and whole furs and skins 12 months from 2,W8,359 Square 20,528,291 (Duty-free quota filled) ^ Month of Ifecember 19U1 Canada 17,^00 Other than Canada 7,500 ^Q„ Number « 10,5o7 (Import quota ] TREASURY DEPARTMENT Washington FOR RELEASE, MORNING NEWSPAPERS, Thursday, January 15» 19^2. Press Service No. 2 Q-R*2; 1/1k/H-2 The Bureau of Customs announced today preliminary figures for imports of commodities within quota limitations provided for under trade agreements, from the beginning of the quota periods to December Jl, 19^1, inclusive, as follows: » Established Quota î Unit of : Imports as of : Period & Country:Quantitv ? Quantity : Dec. 31. 1941 • Commodity Cattle less than 200 pounds each Calendar year Cattle, 700 pounds or more each (other than dairy cows) 100,000 Head Quarter year from Oct. 1, 1941 Canada 51,720 Head Other countries 6,212 ii (Tariff rate quota filled) (Tariff rate quota filled) n n Whole milk, fresh or sour Calendar year 3,000,000 CalIon 6,360 Cream, fresh or sour Calendar year 1,500,000 CalIon 1,288 Pish, fresh or frozen filleted, etc., cod, haddock, hake, pollock, cush and rosefish Calendar year 15,000,000 Pound 9,989,853 White or Irish potatoes Certified seed 12 months from Sept. 15, 1941 90,000,000 Pound 9,693,466 12 months from Sept. 15, 1941 60,000,000 Pound 1,017,144 Other Cuban filler tobacco, unstemmed or stemmed (other than cigarette leaf tobacco), and scrap tobacco Calendar year 22,000,000 Red Cedar shingles Calendar year 2,488,359 Silver or black foxes, furs, and articles: Poxes valued under $250 ea. and whole furs and skins Month of December 1941 Canada 17,500 Other than Canada 7,500 Pound (Unstemmed equivalent) 20,528,291 Square (Duty-free quota filled) Number 10,587 (import quota filled) it - 2- Unit of : Imports as of 31. 1941 5,000 Piece (import quota filled) Paws, heads, or other separated parts 500 Pound (import quota filled) Piece plates 550 Pound None Articles, other than piece plates 500 Units Established Quota : Period & Country i Quantity Commodity Silver or black foxes, furs, and articlesi Tails Crude petroleum, topped crude petroleum, and fuel oil 13 months from December 1, 1941 Calendar year Venezuela 1,913,049,600 Gallon Netherlands 576,806,300 ti Colombia 86,956,800 « Other Countries Molasses and sugar sirups containing soluble nonsugar solids equal to more than 6% of total soluble solids iQuantity iDec. 138,587,400 Calendar year 1,500,000 oOo-* Gallon (Tariff rate quota filled) (Tariff rate quota filled) (Tariff rate quota filled) (Tariff rate quota filled) (Tariff rate quota filled) > 1 2 ^ PRESS RELEIASE The Bureau of Customs announced today preliminary figures showing the quantities of coffee authorized for entry for consumption as of January 3, 194-2, under the quotas for the twelve months commencing October 1, 1941, provided for in the Inter-American Coffee Agreement, proclaimed by the President on April 15, 1941, as follows: Country of Production : Quota Quantity (Pounds) : : J Authorized for Entry For Consumption (Pounds) Signatory Countries: Brazil Colombia Costa Rica Cuba Dominican Republic Ecuador El Salvador Guatemala Haiti Honduras Mexico Nicaragua Peru Venezuela 1,364,853,662 4 6 2 ,698,80 2 29,358,129 11,795,051 17,626,703 22,044,457 94,298,370 78,611,627 40,355,291 3,208,883 73,098,231 31,311,581 3 ,6 6 8 ,6 7 6 36,442,699 359,475,557 124,370,827 1 1 ,10 4 ,7 8 8 1,545,858 12,062,653 15,693,328 A,653,679 20,049,424 24,896,475 671,909 2,397,344 623,014 2,587,782 6,761,513 17,213,035 1 2 ,8 1 1 ,0 3 6 19,156,274 8,934,907 3,771,864 788,169 Non-signatory Countries: British Empire, except Aden and Canada Kingdom of the Netherlands and its possessions Aden, Yemen, and Saudi Arabia Other countries not signatories of the InterAmerican Coffee Agreement 11,956,391 (Import quota filled) -oOo(Prepared - Appeals and Protests (Quota Unit) Bureau of Customs) TREASURY DEPARTMENT Washington FOR RELEASE, MORNING- NEWSPAPERS, Thursday, January 15» 19^2._____ l/lV^-2 Press Service Wo. 29-5^ The Bureau of Customs announced today preliminary figures show ing the quantities of coffee authorized for entry for consumption as of January 3, 1 9 ^-2 , under the quotas for the twelve months commencing October 1, 19^1, provided for in the Inter-American Coffee Agreement, proclaimed by the President on April 15, 19^1, as follows: ; Country of Production Quota Quantity (Pounds ) : Authorized for Entry : For Consumption : (Pounds ) Signatory Countries: Brazil Colombia Costa Rica Cuba Dominican Republic Ecuador El Salvador Guatemala Haiti Honduras Mexico Nicaragua Peru Venezuela 1,36^,253,662 40,355,291 3 ,202,223 7 3 ,098,231 3 1 ,3 1 1 , 5 8 1 3 ,668,676 36 ,442,699 35?,475,557 1 2 4 ,370,827 11,104,788 1,545,252 1 2 ,062,653 1 5 ,693 ,32 s 4 ,65 3 ,67 ? 20,049,424 24,296,475 6 7 1 ,9 ?? 2,397,344 623 ,oi4 2,587,782 6,761,513 17,213,035 1 2 ,2 11 , 0 3 6 1 9 ,1 5 6 , 2 7 4 8,934,907 3,771,864 72 2 ,1 6 9 462,692,802 29,358,129 11,795,051 17,626,703 22,044,457 9 4 ,2 9 2 , 3 7 0 72 , 611,627 Non-signatory Countries: British Empire, except Aden and Canada Kingdom of the Netherlands and its possessions Aden, Yemen, and Saudi Arabia Other countries not signatories of the InterAmerican Coffee Agreement 11,956,391 -0 O 0 - (Import quota filled PRESS RELEASE The Bureau of Customs announced today preliminary figures showing the quantities of wheat and wheat flour entered, or withdrawn from ware house, for consumption under the import quotas established in the Presidents Proclamation of May 28, 194-1, for the twelve months com mencing May 29, 1941, as follows: * 9 * * i Wheat flour , semolina, crushed or cracked wheat, and similar wheat products : Imports : : Imports May 29 :Established :May 29,1941: • Established : 1941 to Jan. 3 :to Jan.3.1942 : Quota Quota -.: 1942 •(Bushels) (Bushels) (Pounds) (Pounds) Wheat Country of Origin Canada 795,000 China Hungary Hong Kong Japan United Kingdom 100 Australia 100 Germany 100 Syria New Zealand — Chile 100 Netherlands 2,000 Argentina 100 Italy Cuba France 1,000 — Greece Mexico 100 Panama Uruguay Poland and Danzig Sweden Yugoslavia Norway Canary Islands Rumania 1,000 Guatemala 100 100 Brazil Union of Soviet Socialist Republics 100 100 Belgium 795,000 800,000 795,000 - - — — — — — — — 3,815,000 24,000 13,000 13,000 8,000 75,000 1,000 5,000 5,000 1,000 1,000 1,000 14,000 2,000 12,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 584,371 5,836 — 5,825 - — - — — — - 97 - - — — — _____ mm 4,000,000 596,129 - 0O0(Prepared - Appeals and Protests (Quota Unit) Bureau of Customs) When this Press Release has been mimeographed ’ please send 10 copies to Room 4.O4., Wilkins Building, Bureau of Customs* TREASURY DEPARTMENT Washington FOR RELEASE, MORNING NEWSPAPERS, Thursday, January IS, 1942. 1/14/42 Press Service No, 29-55 The Bureau of Customs announced today preliminary figures show ing the quantities of wheat and wheat flour entered, or withdrawn from warehouse, for consumption under the import quotas established in the President's Proclamation of May 20, 1941, for the twelve months commencing May 29, 194-1, as follows; Wheat flour, semolina, crushed or cracked wheat, and similar wheat products ’: 'Imports “ Imports " Established;May 2 9 , 194-1 Established;May 2 9 , 194-1 Quota ;to Jan. 3 ,194-2 Quota :to Jan, 3 ,194$ (Pounds ] (Pounds j (Bushels ) (Bushels ) Wheat Country of Origin 795,000 Canada China ■* Hungary Hong Kong Japan 100 United Kingdom Australia 100 Germany 100 Syria New Zealand Chile 100 Netherlands 2,000 Argentina 100 Italy Cuba 1,000 France Greece 100 Mexico Panama Uruguay Poland and Danzig Sweden Yugoslavia Norway Canary Islands 1,000 Rumania 100 Guatemala 100 Brazil Union of Soviet Socialist Republics 100 100 Belgium 795,000 - - 600,000 79 5,0 0 0 L,ooo,ooo — — — — _ — T~ T_ — — _ m — m 3 ,015,000 24,000 13,000 13,000 0 ,000 75,000 l, 000 5,000 5,000 1,000 1,000 1,000 l 4 , 000 2 ,000 1 2 ,000 1,000 1,000 1,000 1,000 1,000 ij 000 1,000 1,000 1,000 1,000 - 97 - - — -0O0- 58^,371 5,836 5,825 - - 5 9 6 ,12 9 TREASURY DEPARTMENT Washington FOR IMMEDIATE RELEASE, Wednesday, January 14, 1942 Press .Service J<¡J |U ¿;O . OQ CjO~ At the direction of the President, the Treasury Department acting In cooperation with the Department oi uiie Interior today issued a general ruling under the freezing regulations imposing a strict control over Philippine securities and impounding all Philippine paper currency within the United States. These■measures, taken at the request of the Philippine Government, are designed to thwart any attempt by the(Axis to dispose of looted Philippine assets m tne United States. Simultaneously the Philippine Government took action to prevent looted-assets'being liquidated •In markets outside_the United States, It v/as pointed out that not only does this interfere with the Axis war effort but in addition it may^contribute materially to minimizing Axis looting in the Philippines d y removing the incentive for such action. Under today’s general ruling all Philippine paper currency within the United States must be deposited In blocked currency accounts in banks on or before February 1, 1942. Currency rlaced in such account may be removed only with permission of the Treasury Department under a freezing control license. ^On or before February 15, 1942, banks must Report all Philippine currency in their possession. All. dealings m such currency are prohibited. This is intended to destroy any possible Mblack market” in the United States for looted Philippine currency which might otherwise he smuggled into the country. The ¿renerai ruling also curbs all dealing m securities issued by, or the obligation of, either the Philippine Governlaw unless ment or any corporation organized under Phi lirrine X'.X a "clearance certificate” known as Treasury D I ed States TFEL-2 has been attached. Persons within the the clearance holding any such securities will be able to nave ce rtificatee attached to their securities before February 1, 1942, with a minimum, or m inconvenience since the Federal Reserve Banks will automatically attacii the certificates upon V - 2- After February 1, 1942 the clearance certificates will be attached to Philippine securities only after the holder has satisfactorily explained his possession of the securities and the reasons a clearance certificate was not attached prior to February 1, 1942. The Treasury Department called attention to the notice of the Philippine Government to all holders of Philippine securities and currency which was issued today. This notice directed all holders of such securities and currency in all countries except enemy countries to deposit their holdings with banks and forward a registration report through their bank to the New York offlop of the Philippine National Bank, The full text of such notice in as follows: "In order to protect bona fide holders of Philippine currency and securities from the ef fects which would otherwise result from the dis position of such securities and currency which may have been looted during the temporary-occu pation of parts of the Philippine Islands, the following notification is hereby given on behalf of the Government of the Commonwealth of the Philippines. "All holders of Philippine paper currency elsewhere than within the Philippine Islands are notified to deposit such currency on or before February I, 1942 for registration and safekeeping in a reputable bank located outside, and organized under the laws of a country other than, an enemy country, or territory occupied or controlled by an enemy. Depositors of such currency should ob tain an appropriate receipt from such bank i d e n t i fying the currency by kind, denomination and serial number. Banks receiving such currency for such de posit or holding such currency for their own account are hereby notified to hold it in safekeeping pending further instruction. Each such bank should immediately forward to the New York agency of the Philippine Rational Panic, 25 Broad way, Mere York, New York, a report in three counter parts, certifying the names and addresses of the• depositors of such currency, the date of deposit, the amount so deposited by each depositor and the description (including serial number) of the cur rency so deposited. Such reports should be placed in the mail on or before February 15, 1942. Each counterpart should, if feasible, be dispatched by separate means. "All holders, outside the United States and elsewhere than wiihin the Philippine^islandi,jjl securities issued by, or the obligation of, either the Government of the Commonwealth of the Philip pines, including political subdivisions thereof, or any corporation or other organization organized under" the laws of that government are notified to follow a similar procedure. Banks receiving such securities for registration and safekeeping should identify them as completely as possible in the/ re ceipts given to depositors and in their reports which are forwarded to the Row York agency of the Philippine Rational Bank. Such reports should include the name and address of the depositor, date of deposit, and the description snculd in clude the name of the issuing party, the issue, the total number of securities, the serial or certificate numbers> and the name of the. regis tered owner, if any, and in appropriate cases, the denomination. "The Government of the Commonwealth of the Philippines has requested the United States Treasury Departraent and the Department of the Interior to make appropriate provision for the registration of Philippine government and corporate securities' located within"the United States*, and to^adopt such regulatory measures as will assist m carry ing out the purposes of this notification with respect to both currency and securities. Com pliance with the provisions of General Ruling Ro. 10 -4issued by the United States Treasury Department, under Executive Order ho* 8389, as amended, shall be deemed to be compliance with the requirements of this notice. ”A11 Philippine securities and currency not registered pursuant to this notice will be pre sumed by the Government of the Commonwealth of the Philippines, in the absence of clear proof to the contrary, to have come'under the control of the enemy. J. M. Elizalde Resident Commissloner of the Philippines to the United States.” 0Q 0 TREASURY DEPARTMENT Office of the Secretary January 14, 1942 GENERAL RULING- NO. 10 UNDER-EXECUTIVE ORDER NO. 8389, AS AMENDED, AND REGULATIONS ISSUED PUR SUANT THERETO, RELATING- TO TRANS ACTIONS IN FOREIGN EXCHANGE,-ETC. (1 ) The acquisition, disposition or transfer of, or other dealing in, or with respect to, any of the following is hereby prohibited.except as authorized by license expressly referring to this general ruling: (a) Any Philippine paper currency; (b) Any security issued by, or the obligation of, either the Government of the Commonwealth of the Philippines, including political subdivi sions thereof, or any corporation or other organization organized under the laws of the Philippine Islands, unless Form TFEL— 2 has been previously attached to such security by, or under the direction of, the Treasury Department. Form TFEL-2 will be attached to any security referred to herein if presented to any Federal Reserve Bank on or before February 1, 1942 accompanied by a description thereof on Form TFR-10. Subsequent to February 1, 1942, Form TFEL— 2 will be attached to such securities only in the discretion of the Secretary of the Treasury and only upon the filing of appropriate application with a Federal Reserve Bank tracing the ox^nership of such security since January 1, 1942 and satisfactorily explaining the reasons the security was not presented to a Federal Reserve Bank on or before February 1, 1942, for the attachment of Form T'FEL-2. Such form will be attached to stamped securities of the type referred to in section 2A(l) of the Order only pursuant to existing procedure relating to stamped se curities. (2) Except as authorized by license expressly referring to this general ruling: (a) All Philippine paper currency held x^ithin the United States is hereby required to be deposited on or before February 1, 1942, in a blocked currency account with either a domestic bank or with the Nextf York office of the Philippine National Bank. (b) The bank of deposit shall hold such currency for the account, or pursuant to the instruc tions, of the depositor. - 2 (c) On or before February 15, 1942, every bank holding any blocked currency accounts shall file a report on Form TFR-110 in triplicate with the appropriate Federal Reserve Bpnk. Ag used in this general ruling and in any other rulings, licenses, instructions, etc., the term ‘‘blocked currency account” shall mean an account from which no payments, transfers, or withdrawals may b.e made, and no other transaction or dealing may be effected with respect thereto, except pursuant to a license expressly referring I i? to such account. | ¿eat of { ¡rai Ruling (3) Philippine paper currency which prior to January 1, 1942 was of recognized special value to collectors of rare and unusual i ;ioa, and t j i otter tra currency, or which is held as part of any collection of rare and i lection, nc unusual currency, is hereby excluded from the provisions of this general ruling. ! i IFEL-2 la | i which sue By direction of the President. ; This | t isaction pr 1 ilation the l 1, E . PI. F A cting Secretary e Treasury, o( H 17! < i!If) k Wet 8| h. fw. as I i TREASURY DEPARTMENT Office of the Secretary 1 A 1942 January Ite ^ntssin! GENERAL LICEîTSE KO. S3 ■ EXECUTIVE ORDER NO. 8389, APRIL 10, 1940, AS AKEKDED, AND REGULATIONS ISSUED PURSUANT THERETO, RELATING TO TRANSACTIONS IN FOREIGN EXCHANGE, BTC.* triplicati! niiijy icccunt'i 'ttttJ 'beeffs| presslj% A general license is hereby granted authorizing_the detachment of coupons from securities of the type referred to in General Ruling No’. 10, the presentation of such coupons xor colto Januarj; rare aii| lection, and the performance of such, other acts ana effecting of tion o l i i such other•transactions as may he necessarily incident 1,0 such avisions # collection, notwithstanding the fact that Treasury Department Form TFEL-2 may not have been previously attached to the securities from which such coupons are detached. This general license shall not he deemed to authorize any transaction prohibited by reason of any provision (or ruling or regulation thereunder) of the Order other than General Ruling fkm 1 0 . This license shall expire at the close of business on February 1, 1942. le Tppâsuij! E. II. Foley, Jr. Acting Se cretary of the Treasury. Fart 131; Sec. b(b)',"T(T TT7i,at. 415 and 960; ! ec. 2, 48 Stat. -Tf 54 Stat. 179; Public No. 354, 77th Congress Ex. Order 8389, QAi i^40, as amended by Ex. Order 8785, June 14, 1941, April 10, 1 Q9 July 26, Ex. Order 88 __ _ _ H H 1941, B H H Ex. Order 8963, December_9, 1941, and Ex. Order 8998,“ December 26, 1941; Regulations, April 10, 1940, as amended June 14, 1941, and July 26, 1941, T R E ASURY.DEPARTMENT Office of the Secretary January 14, 1942. AMENDMENT OF GENERAL LICENSE NO. 6 8 A UNDER EXECUTIVE ORDER NO. 8389, APRIL 10, 1940, AS AMENDED, a ND REGULATIONS ISSUED PURSUANT THERETO, RELATING TO TRANSACTIONS IN FOREIGN EXCHANGE, ETC.» Paragraphs (3) and (4) of General License No. 6 8 A are hereby amended to read as follows: 11 (3) A report on Series J of Form TFR-300 shall be filed with the appropriate Federal Reserve Bank on or before February 15, 1942, with respect to the property interests of every person licensed herein as a generally licensed national if the total value of the property Interests to be reported is $¡1 , 0 0 0 or more. 11 (4) Every business enterprise licensed herein as a generally licensed national shall also file with the appropriate Federal Reserve Bank on or before February 15, 1942, an affidavit setting forth the Information required by Form TFBE-1, if the total value of all property interests of such business enterprise is in excess of $5,000.M E. H. FOLEY, JR. Acting Secretary of the Treasury. * Part 131; - Sec.5(b), 40 Stat. 415 and 966; Sec. 2, 48"3tat. 1; 54 Stat. 179; Public No. 354, 77th Congress; Ex. Order 8389, April 10, 1940, as amended by Ex. Order 8785, June 14, 1941, Ex. Order 8832, July 26, 1941, Ex. Order 8963, December 9, 1941, and Ex. Order 8998, December 26, 1941; Regulations, April 10, 1940, as amended June 14, 1941, and July 26, 1941. 1 - 2 - No information has come to the Department of any significant amount of such valuables falling into enemy hands* Secretary Mergenthau pointed out that High Commissioner Sayre had been assisted in executing this program by Treasury Department representatives who had been detailed from Washington last July to assist the High Commissioner in administering the freezing control in the Philippines* The Secretary commended the courage and ability of those people in carrying out this program. The Treasury today, acting in cooperation with the Department of the Interior and at the direction of the President, issued a general ruling under the freezing regulations imposing a strict control over Philippine securities and impounding Philippine paper currency within the United States* These measures, together with those taken simultaneously by the Philippine Government, are designed to choke off the a&rket for any assets which the Japanese may subsequently discover in their looting operations in the Philippines* o 0 o TREASURY DEPARTMENT Washington FOR IMMEDIATE RELEASE Wednesday, January 14., 1942 Press Service No* 29-57 Secretary Morgenthau disclosed today that prompt action by American officials in the Philippines prevented many millions of dollars worth of securities, coin, currency, bullion, jewelry and other property from falling into the hands of the Japanese. This is the first applica tion of the "scorched earth policy" which any country has as yet made to this class of valuables. In anticipation of the temporary occupation of Manila and other parts of the Philippines and remembering the experience of unprepared European eountries that permitted hundreds of millions of dollars of valuables to fall into the hands of Germany, the Secretary of the * Treasury, in cooperation with the Secretary of the Interior and at the direction of the President, vested in the U. S. High Commissioner the sweeping powers of Title III of the First War Powers Aot of 1941 and authorized him to take all necessary steps to prevent bullion, currency, coin, checks, securities, and similar valuables from falling into enemy hands. The High Commissioner was authorized to destroy any of these assets or otherwise dispose of them rather than to permit the Japanese to acquire them. Although it is too early to state the amount of valuables within the Philippines which were turned over to or impounded by the High Commissioner, it is certain that the amount runs into many millions. T&EA 8 URT DEPARTMENT Washington FOR IMMEDIATE RELEASE* Wednesday, January l^t 19^-2. Press Service No. 29~57 Secretary Morgenthau disclosed today that prompt action by American officials in the Philippines prevented many millions of dollars worth of securities, coin, currency, bullion, jewelry and other property from falling into the hands of the Japanese. This is the first application of the "scorched earth policy" which any country has as yet made to this class of valuables. In anticipation of the temporary occupation of Manila and other parts of the Philippines and remembering the experience of unprepared European countries that permitted hundreds of millions of dollars of valuables to fall into the hands of Germany, .the Secretary of the Treasury, in cooperation with the Secretary of the. Interior and at the direction of the President, vested In the U. S. High Commissioner the sweeping powers of Title III of the First War Powers Act of 19^-1 and authorized him to take all necessary steps to prevent bullion, currency, coin, checks, securities, and similar valuables from falling into enemy hands. The High Commissioner was authorized to destroy any of these assets or otherwise dispose of them rather than to permit the Japanese to acquire them. Although it is too early to state the amount of valuables within the Philippines which were turned over to or Impounded by the High Commissioner, it is certain that the amount runs into many millions. No Information has come to the Department of any significant amount of such valuables falling into enemy hands. Secretary Morgenthau pointed out that .High Commissioner Sayre had been assisted in executing this program by Treasury Department representatives who 'had been detailed from Washington last July to assist the High Commissioner in administering the freezing control In the Philippines. The Secretary commended the courage and ability df those people in- carrying out this program. The Treasury today, acting in cooperation with the Department of the Interior and at the direction of the President, issued a , general ruling under the freezing regulations imposing a strict control over Philippine securities and Impounding Philippine paper currency within the United States. These measures, together with those taken simultaneously by the Philippine Government, are designed to choke off the market for any assets which the Japanese may subsequently discover in their looting operations in the Philipp ines. FOR RELEASE WHEN NOTIFIED BY MR. SCHOOLER - Co WMlir W i Page 2 o ' 1"' f specific cases. wIt is the aim of this Division to aid the amal 1 business man wherever possible,»1 Mr. Mack said. »»When he is not equipped to bid on prime contracts business, we will point the way for him to bid on subcontracts. a ini To this end, I have established Section in the Division to assist the »little man' in his problems. »»While it is the purpose of the Division to help the small manufacturer or dealer, he must be equipped to produce the material to be purchased. # And the orders will be there.** Ff>tì -y FO^JÌELEASE W Widest possible use of the facilities of industries whose structures have been disturbed by the war effort will be made by the Treasury1s Procurement Division in an intensified supply program, Director Clifton E* Mack said today* The changes in the Division^ procedures will result from the full, wartime purchasing powers grante _ w the extension of Executive Order No* 9001, which provides all-inclusive con tractual authority similar to that already given the War and Navy Departments and the Maritime Commission* Under the new authority, the Division is empowered with the widest latitude to negotiate contracts without having to follow peacetime procedure of advertising or competitive bidding# The new order will enable the Division to /furtherjjdecreas^the time necessary in buying supplies, a process which had been speeded in the past few months to permit almost immediate contracting for industrial supplies urgently required* Buying strategic and critical materials^for Lend-Lease and Defense Housing purposes as well as for the civilian needs of the Government, the Division will be aided in many ways by the new order# Assistance to the smaller business man and more business for him were held out by the Director as results of this extension, because of the flexibility of action permitted, and because it will allow the Division to contract in the various manners needed in TREASURY DEPARTMENT Washington FOR RELEASE, MORNING- NEWSPAPERS,. Thursday, January IS, 19^-2,_____ l7lW^2 ' Press Service No. 29-5% Widest possible use of the facilities of industries whose structures have been disturbed by the war effort will be made by the Treasury1s Procurement Division in an intensified supply program, Director Clifton E. Mach said today. The changes in the Division’s procedures will result from the full, wartime purchasing powers granted yesterday in the extension of Executive Order No. J0Q1, which provides all-inclusive contractual authority similar to that already given the War and Navy Departments and the Maritime Commission. Under the new authority, the Division is empowered with the widest latitude to negotiate contracts without having to follow peacetime procedure of advertising or competitive bidding. The new order will enable the Division to decrease further the time necessary in buying supplies, a process which had been speeded in the past few months to permit almost immediate contracting for industrial supplies urgently required. Buying strategic and critical materials for stockpiles and industrial materials for Lend-Lease and Defense Housing purposes as well as for the civilian needs of the Government, the Division will be aided in many ways by the new order. Assistance to the smaller business man and more business for him were held out by the Director as results of this extension, because of the flexibility of action permitted, and because it will allow the Division to contract in the various manners needed in specific cases. "It is the aim of this Division to aid the small business man wherever possible," Mr, Mack said. "When he is not equipped to bid on prime contracts business, we will point the wáy for him to bid on subcontracts, To this end, I have established a Section in the Division to assist the ’little man 1 in his problems, "While it is the purpose of the Division to help the small manufacturer or dealer, he must be equipped to produce the material to be purchased. And the orders will be there.| -oOo- I INSOLVENT NATIONAL BANKS LIQUIDATED AND FINALLY CLOSED ----DÜRING THE MONTH OF DECEMBER T 1Q/,T______ ________ ---------- Name and Location of Bank Date of Failure Total Disbursements to Creditors Including Offsets Allowed Potomac Savings Bank of 1/ Georgetown, Washington,D.C. 1-18-34. $ Hammond NB & Tr.Co Hammond, Indiana Percent Dividends Declared to All Claimants 2 ,6 9 1 ,7 0 2 81.77? 1-18-32 2,472,781 55.3? Guardian NB of Commerce Detroit, Michigan 1/ 5-11-33 106,389,461 First National Bank Preston, Minnesota 1 -6 -3 9 271,153 Texas National Bank Fort Worth, Texas 2-4.-30 5 ,5 4 5 ,8 6 0 First National Bank Clintonville, Wise. 1 / 8-16-33 1,455,558 Capital Stock at Date of Failure 14 .0,00 0 - 0 - 4. 00,000 - 0 - 1 0 ,000 ,06 a - 0 - 55,000 - 0 - 53.5? 500,000 - 0 - 8 8 .6 $ 10 0 ,0 0 0 - 0 - 89.5? 2 / $ 77.45? A/ Formerly in Conservatorship 2/ 68 percent paid assenting creditors and 89*5 percent paid nonassenting creditors in accordance with agreements. Cash, Assets, Uncollected Stock Assessments, etc. Returned to Shareholders TREASURY DEPARTMENT Comptroller of the Currency Washington FOR RELEASE, MORNING NEWSPAPERS Press Service if->? During the month of December, 19-41, the liquidation of six Insolvent National Banks was completed and the affairs of such receiver« ships finally closed* Total disbursements, including offsets allowed, to depositors and other creditors of these six receiverships, amounted to $113,826,515, while dividends paid to unsecured creditors amounted to an average of 87*43 percent of their claims. Total costs of liquidation of these receiverships averaged 3*45 percent of total collections from all sources including offsets allowed. Dividend distributions to all creditors of all active receiver ships during the month of December, amounted to $622,995* Data as to results of liquidation of the receiverships finally closed during the month are as follows: TREASURY DEPARTMENT Comptroller of the Currency Washington FOR RELEASE, MORNING NEWSPAPERS, Friday, January 16, 19^-2.________ I/I 5 A 2 Press Service No. 29-59 During the month of December, 19^1, the liquidation of six Insolvent National Banks was completed and the affairs of such receiverships finally closed. Total disbursements, including offsets allowed, to depositors and other creditors of these six receiverships, amounted to $118 ,626,515 > while dividends paid to unsecured creditors amounted to an average of 87.^3 percent of their claims. Total costs of liquidation of these receiverships averaged 3*^5 percent of total collections from all sources including offsets allowed. Dividend distributions to all creditors of all active receiverships during the month of December, amounted to $622,995* Data as to results of liquidation of the receiverships finally closed during the month are as follows: INSOLVENT NATIONAL BANKS LIQUIDATED AND FINALLY CLOSED DURING THE MONTH OF DECEMBER» 194l___________ Date cf Failure Total Disbursements to Creditors Including Offsets Allowed Potomac Savings Bank cf Georgetown, Washington,D.C. X-1S-3U $ Hammond NB & Tr.Co Hammend, Indiana N»nift and location of Bank if Percent Dividends Declared tc All Claimants 2 ,691,702 81.77# 1-18-32 2 ,^72*721 55-3$ Guardian NB of Commerce Detroit, Michigan 1 5-11-33 106,389,^61 First National Bank Preston, Minnesota 1 -6-39 271*153 Texas National Bank Fort Worth, Texas 2-4-3 0 5 ,545,860 First National Bank Clintonville, Wise, 8- 16-33 1,455,552 J l/ Capital Stock at Date of Failure $ Cash, Assets, Uncollected Stock Assessments, etc. Returned tc Shareholders_____ 140,000 400,000 - 0 - - 0 - 55,000 - G - 53.5^ 500,000 - 0 - 88.6$ 100,000 - 0 - 89.5$ 2/ 10 ,000,060 WMf 1 / Formerly in Conservatorship nonassenting creditors 2/ 63 percent paid assenting creditors and S9 .5 percent paid in accordance with agreements. •14 PRESS RRT.K&SE 2-f - é P The Bureau of Customs announced today preliminary figures for imports of commodities within the quota limitations provided for under the Philippine 1 ^ Independence Act, as amended by the act of August 7, 1939, from the beginning of the quota periods to December 31, 1 9 4 1 , inclusive, as follows: Products of .Philippine Islands i i Established Quota Period : Quantity iUnit of :Imports as of !Quantity: Dec. 31. 19LI Coconut d l Calendar year 426 ,15 2 ,3 2 1 2/ Pound Refined sugars Calendar year 1 1 2 ,000 ,000) Pound )3/ 1 ,792 ,000 ,000) Pound Sugars other than refined Calendar year \ 4 0 7 ,640,295 1, 111,795,039 fete ?» 1 ,546 ,013,6731 Products Cordage Period - May 1 to Dec.31,1941 Buttons of Pearl or shell Calendar year 4 ,000,000 808,544 2/ Pound 3,752,6371 Gross 802,245 I'ispfs Cigars Calendar year 190,246,573 2/ 18 9 ,053 ,001! Number afcrtha! Scrap tobacco and stemmed and unstemmed filler Calendar year tobacco i 4,280,544 2/ Pound 4,183,743 i ___________ _I k if Pearl l/ The duty-free quota on Philippine sugars applies to 850,000 long tons, of which not more than 50,000 long tons may be refined sugars. 2/ Quota adjusted pursuant to Public No. 367, 77th Congress -oOo- ■fitto am ^lined] |i> ^duty-free i lor inste (Prepared - Appeals and Protests (Quota Unit) Bureau of Customs) TREASURY DEPARTMENT Washington FOR RELEASE, MORNING- NEWSPAPERS, Friday, January l6 t 19^-2.______ L Press Service ^°* 29-0O 1 7 X 571+2 The Bureau of Customs announced today preliminary figures for imports of commodities within the quota limitations provided for under the Philippine Independence Act, as amended by the act of August 7 , 1939, from the beginning of the quota periods to December yi, 19^-1, inclusive, as follows*. Products of Phi limine Islands : ! :Unit of :Imports as of :Quantity: Dec. 31. 1941 Established Quota a : Quantity Period Coconut oil Calendar year 426,152,321 2/ Pound 407,640,295 Refined sugars Calendar year 112,000,000) Pound 111,795,039 Sugars other than refined Calendar year 1,792,000,000) Pound 1,546,013,673 Cordage Period - May 1 to Dec.31,1941 Pound 3,752,637 808,544 2J Gross 802,245 )U Buttons of Pearl or shell Calendar year Cigars Calendar year Scrap tobacco and stemmed and unstemmed filler tobacco Calendar year 4,000,000 190,246,573 2/ Number 4,280,544 2/ Pound 189,053,001 4,183,743 1/ The duty-free quota on Philippine sugars applies to 850,000 long tons, of which not more than 50,000 long tons may be refined sugars. J Quota 2 adjusted pursuant to Public No. 367, 77th Congress. TREASURY DEPARTE BEEInrrn i Washington Press Service . 4ve~:— S€i-G^— /£*, i , o “p l i i.C X ± r c~ jl\. C transactions in Government securities for Tr irrves im.eii'U accounts in ,zy; 2-/— 6/ ¡asury 1U41, resulted in net purchases cretary Lorgenthau announced today. -OoO- r TREASURY department F IS C A L SE R V IC E WASHINGTON BUREAU O F ACCOU N TS O F F IC E O F T H E C O M M IS S IO N E R TO l ____ _ Oaring the month of December 19U1 , the following market transactions took place in direct and guaranteed securities of the Government: Purchases $60,00^,000 Sales Set purchases B U Y U N IT E D STA TES S A V IN G S ^fiONDS AND STAMPS $60,00^,000 TREASURY DEPARTMENT Washington FOE IMMEDIATE RELEASE, Thursday. January 15. 19^2. Press Service No 2 9 - 6 1 Market transactions in Government securities for Treasury investment accounts in December, 19^1; resulted in net purchases of $60,00^,000, Secretary Morgenthau announced today, 3 for Finnish account; steel, molybdenite and machinery valued at $5 6 2 ,000 , held for Italian account; copper wire bars valued at $1 0 4 ,000 , held $435,000, held valued at $6 1 0 ,000 , held for Danish account. In addition to these large items the census included hundreds of small orders valued at upwards of $1 ,000 , Assembling of this information concerning all small orders of war materials held for foreign accounts into one compact list will enable the War Production Board to direct not only the large quantities but the smaller ones as well into the war* effort. The compilation of this list climaxed a doncentrated Treasury Department effort to sweep every corner of the nation for caches of foreign-owned war materials which might benefit the Allied war effort. Even before the Japanese attacked the United States, supplies of strategic materials valued at many millions were found through the administration of Foreign Funds Control, and these supplies have long since been directed into the war effort. - 2 - The vast sum includes not only materials of war, but also strategic materials for use in the nation's domestic economy which is now more than ever feeling the inroads of war industry. The materials include not only those which war manufacturers are now seeking but also foreign-held materials which may alleviate civilian shortages in the coming months of war. The complete list culminates three months of work on the most complete census of foreign-owned property ever attempted in the United States. All property in the United States in which a foreign country or national had an interest was reported on Form TFR-300. Although some complaints were received because of the burden imposed in filling out the lengthy report, the Treasury's foresight during 1941 is paying vital dividends *noWjCpThe Treasury Department has already been able to turn over its extensive list to those agencies which have authority to direct these materials into the war effort. This was accomplished less than a month after the attack on Pearl Harbor. have so far been filed, and the list of foreign—owned property compiled for SPAB will reach an estimated 700 pages before it is completed. Already nearly 400 pages have been compiled. Some of the materials included in the second list sent to Vice President Wallace were a stock of toluol' valued at $6 7 ,000 ; trucks, tires, rubber and gasoline valued at $1 6 5 ,000 , held TREASURY DEPARTMENT ■Washington Press Service No. *2. FOR IMMEDIATE RELEASE < M + v' America's war effort gained momentum here today when the Treasury Department turned over to the iorities and Allocation Board a second inventory of foreign-owned materials and .. i W LjP Ua. APeJl*** J eahiomenti td AuoBlement lEe '#!OT,UD0',QUO list released January 2, K bringing the total inventory amount to almost #4-00 ,000 ,000 , much of which is needed for war production. "When the final figures on this census become available the Division of Foreign Funds Control of the Treasury Department will have placed at the disposal of the War Production Board a list of foreign-held materials and equipment valued at more than #700,000,000," Secretary Morgenthau said. This sum will represent the value of all foreign- held materials and equipment in the United States which the Treasury believes will be of value to the nation in its defense program. Millions of dollars worth of vital defense materials which might otherwise have rusted or rotted in warehouses from coast to coast will be placed at the disposal of American manufacturers. "These materials, except for the Treasury Department's census, might never have been made available to the nation's war Kif 1 Jr J £__',P 3f" this"$ rop erfoiLynlhiiH «Tmr 'simply sitting around in ware houses, unnoticed by the owner or the warehouseman* to the defense effort was not appreciated^" th* Its significance TREASURY DEPARTMENT Washington FOR IMMEDIATE RELEASE, Thursday, January 15» 19^-2, Press Service No-. 29-62 America's war effort gained momentum here today when the Treasury Department turned over to the Supply Priorities and Allocation Board a second inventory of foreign-owned materials and equipment available in the United States to supplement the $ 2 0 0 ,0 0 0 ,0 0 0 list released January 2 , bringing the total inventory amount -to almost $^ 0 0 ,0 0 0 ,0 0 0 , much of which is needed for war production. "When the final figures on this census become available, the Division of Foreign Funds Control of the Treasury Department will have placed at the disposal of the War Production Board a list of foreign-held materials and equipment valued at more than $ 7 0 0 ,0 0 0 ,0 0 0 , Secretary Morgenthau said. 'This large sum will represent the value of all foreign-held materials and equipment in the United States which the Treasury believes will be of value to the nation in its defense program. Millions of dollars worth of vital defense materials which might otherwise have rusted or rotted in warehouses from coast to coast will be placed at the disposal of American manufacturers. "These materials, except for the Treasury Department’s census, might never have been made available to the nation's war effort," the Secretary said. "Much of this property was simply sitting around in warehouses, unnoticed by the owner or the warehouseman. Its significance to the defense effort was not appreciated." The vast sum includes not only materials of war, but also strategic materials for use in the nation's domestic economy which is now more than ever feeling the inroads of war industry. The materials Include not only those which war manufacturers are now seeking but also foreign-held materials which may alleviate civilian shortages in the coming months of war. The complete list culminates three months of work on the most complete census of foreign-owned property ever attempted in the United States. All property in the United States in which a foreign country or national had an interest was reported on Form TFR- 3 0 0 . Although some complaints were received because of the burden imposed in filling out the Lengthy--report, the Treasury's - 2 , 1 q W 1s paying vital dividends now, officials foresight during 19«. is paying ssii*3.» . tlirn over The Treasury Department ^ L ^ w h i c h ^ h a L L u t h o r i t y to its extensive 1 1 * * 0 those effort.* This was accomplished direct these materia l s i n t ™ eh on P e arl Harbor. less than a month after f U e d i and the More than 5 2 5 , 0 0 0 reports have^olist of foreign-owned property P leted< will reach an Already nearly spab page^have^bee^compile^ 6 Some of the t r i a l s ^toclf ofLolLruLd in%he m a n ufacture^f e S l f s ^ s ^ v J l u e d a t . ^ 7 ,0 0 0 ; ; Italian account’t° steel products valued at $^ 3 5 , O W , n lalB Hungarian account, ®^eH ,?and. vital steel shipbuilding account °J J f ne°f0 L i d for Danish account. valued at $ 6 1 0 ,0 0 0 , held -,,1(ie4 hundrede In addition to these, large it?m | ^ ^ ^ A s s e m b l i n g of this o, -S '« « sss S^SSfoSeS' « « - • S f t f “ ”r _ entr>tai Ire„ urj Thp compilation of this ^ c o r n e ^ o f ^ t h f l nation for caches of —oOo — < issue or on subsequent purchase, and the amount actually received either upon sale or redemption at maturity during the taxable year for which the return is made, as ordinary gain or loss. Treasury Department Circular No. 418, as amended, and this notice, prescribe the terms of the Treasury bills and govern the condi tions of their issue. Copies of the circular may be obtained from any Federal Heserve Bank or Branch. i < < < - 2 - Reserve Banks and Branches,,following which public announcement will be made by the Secretary of the Treasury of the amount and price range of accepted bids* Those submitting tenders will be advised of the acceptance or rejec tion thereof, The Secretary of the Treasury expressly reserves the right to accept or reject any or all tenders, in whole or in part, and his action in any such respect shall be final. Payment of accepted tenders at the prices offered must be made or completed at the Federal Reserve Bank in cash or other immediately available funds on January 21, 194-2________ • xSfc The income derived from Treasury bills, whether interest or gain from the sale or other disposition of the bills, shall not have any exemption, as such, and loss from the sale or other disposition of Treasury bills shall not have any special treatment, as such, under Federal tax Acts now or here after enacted. The bills shall be subject to estate, inheritance, gift, or other excise taxes, whether Federal or State, but shall be exempt from all taxation now or hereafter imposed on the prindipal or interest thereof by any State, or any of the. possessions of the United States, or by any local taxing authority. For purposes of taxation the amount of discount at which Treasury bills are originally sold by the United States shall be considered to be interest. Under Sections 42 and 117 (a) (l) of the Internal Revenue Code, as amended by Section 115 of the Revenue Act of 1941, the amount of discount at which bills issued hereunder are sold shall not be considered to accrue until such bills shall be sold, redeemed or otherwise disposed of, and such bills are excluded from consideration as capital assets. Accordingly, the owner of Treasury bills (other than life insurance com panies) issued hereunder need include in his income tax return only the difference between the price paid for such bills, whether on original TREASURY DEPARTMENT Washington EOR RELEASE, MORNING NEWSPAPERS, Friday, January 16, 194-2_____ . The Secretary of the treasury, hy this public notice, invites tenders for $ 150jOOQ,000 , or thereabouts, of 91 —day Treasury "bills, to "be issued on a discount "basis under competitive bidding. be dated January 21, 1942_____ and will mature The bills of this series will April 22, 1942____________ , when the face amount will be payable without interest. They will be issued in bearer form only, and in denominations of $1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (maturity value). Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, two 0 %lock p. m., Eastern Standard time, Monday, January 19» 19^2_, _M p# Tenders will not be received at the Treasury Department, Washington. Each tender must be for an even multiple of $1,000, and the price offered must be expressed on the basis of 100, with not more than three decimals, e. g., 99.925. may not be used. Fractions It is urged that tenders be made on the pointed forms and for warded in the special envelopes which will be supplied by Federal Reserve Banks or Branches on application therefor. Tenders will be received without deposit from incorporated banks and trust companies and from responsible and recognized dealers in investment securities. < Tenders from others must be accompanied by payment of 10 percent of the face amount of Treasury bills applied for, unless the tenders are accompanied by j an express guaranty of payment by an incorporated bank or trust company. ^ Im m ed ia tely a f t e r th e c l o s i n g h o u r , te n d e r s w i l l be op ened a t th e F e d e r a l * 7 9- l> 3 r7 TREASURY DEPARTMENT Washington FOR RELEASE, MORNING NEWSPAPERS, Friday, January l6, 19^2.______ _ The Secretary of the Treasury, by this public notice, invites tenders for $150,000,000, or thereabouts, of 91-day Treasury bills, to be issued on a discount basis under competitive bidding. The bills of this series will be dated January 21, 19^-2, and will mature April 22, 19 ^2 , ivhen the face amount will be payable without interest. They will be issued in bearer form only, and in denomi nations of $1,000, $5,000, $10,000, $100,000, $500,000, and $1 ,000,000 (maturity value). Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, two o'clock p. m., Eastern Stan dard time, Monday, January 19, 19^2. Tenders will not be received at the Treasury Department, Washington. Each tender must be for an even multiple of $1,000, and the price offered must be expressed on the basis of 100, with not more than three decimals, e. g., 119*925. Fractions may not be used. It is urged that tenders be made on the printed forms and forwarded in the special envelopes which will be supplied by Federal Reserve Banks or Branches on application therefor. Tenders will be received without deposit* from incorporated banks and trust companies and from responsible and recognized dealers in investment securities. Tenders from others must be accompanied by payment of 10 percent of the face amount of Treasury bills applied for, unless the tenders are accompanied by an express guaranty of payment by an incorporated bank or trust company. Immediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, following which public announcement will be made by the Secretary of the Treasury of the amount and price range of accepted bids. Those submitting tenders will be advised of the acceptance or rejection thereof. The Secretary of the Treasury expressly reserves the right to accept or reject any or all tenders, in whole or in part, and his action in any such respect shall be final. Payment of accepted tenders at the prices offered must be made or completed at the Federal Reserve Bank in cash or other immediately available funds on January 21, 19^2. 29-63 # H# - 2 - The income derived from Treasury bills, whether interest or gain from the sale or other disposition of the bills, shall not have any exemption,' as such, and loss from the sale or other dis position of Treasury bills shall not have any special treatment, as such, under Federal tax Acts now or hereafter enacted. The bills shall be subject to estate, inheritance, gift, or other excise taxes, whether Federal or State, but shall be exempt from all taxation now or hereafter imposed on the principal or interest thereof by any State, or any of the possessions of the United States, or by any local taxing authority. For purposes of taxation the amount of discount at which Treasury bills are originally sold by the United States shall be considered to be interest. Under Sections 42 and 117 (a) (l) of the Internal Revenue Code, as amende; by Section lip of the Revenue Act of 194-1, the amount of discount at which bills issued hereunder are sold shall not be considered to accrue until such bills shall be sold, redeemed or otherwise dis posed of, and such bills are excluded from consideration as capital assets. Accordingly, the owner of Treasury bills (other than life insurance companies ) issued hereunder need include in his income tax return only the difference between the price paid for sucn bills, whether" on original issue or on subsequent purchase, and the amount actually received either upon sale or redemption at maturity during the taxable year for which the return is made, as ordinary gain or loss. Treasury Department Circular No, 412, as amended, and “this notice prescribe the terms of the Treasury bills and govern the conditions of their issue. Copies of the circular may be obtained from any Federal Reserve Bank or Branch. -0O0- TREASURY DEPARTMENT BiiTyau1oriiilemal" BfSTOItrg Washington, D. C. tA For Immediate Release^ January 15, 1942 * “*i58 IP Commissioner of Internal Revenue Guy T. Helvering announce^ jGf#5*“ that the motor vehicle use tax stamps are now on sale at all post if^ offices and offices of collectors of internal revenue. ( The coopera : ¿1post tion of the public in applying for their stamps at the earliest posjuefae» sible date € a r m m\XU & bn The — — requested*A^^e cost of the stamp is #2.09 and it is >e ea to be affixed to the windshield unless prohibited in any case by State traffic regulations. The Vehicles without windshields should have stamps affixed at some appropriate place. X regiilatio affixed a - - o 0 o - - i TREASURY DEPARTMENT Washington FOR IMMEDIATE RELEASE, Thursday, January 15, 19^-2, Press Service No. 29-o4 Commissioner of Internal Revenue Guy T. Helvering announced today that the motor vehicle use tax stamps are now on sale at all post offices and offices of collectors of internal revenue. The cooperation of the public in applying for their stamps at the earliest possible date was requested by the Commissioner. The cost of the stamp is $ 2 . 0 9 and it is to be affixed to the windshield unless prohibited in any case by State traffic regulations. Vehicles without windshields should have stamps affixed at some appropriate place, Internal Revenue officials said. oOo- TREASURY DEPARTMENT Washington FOR RELEASE, AFTERNOON NEWSPAPERS, Monday, January 26, 19^42« Press Service No* 2 9-65 (The following address by Julián T, Baber, United States Secret Service, Washington, D* C,, before the convention of the Cooperative Food Distributors of America, Sherman Hotel, Chicago, Illinois, is scheduled for delivery at 11:30 a. m., Monday, January ¿6, 19^2.) BEWARE OF COUNTERFEITERS ESPECIALLY NOW During these ominous days, when our democratic way of life is imperiled by evil forces across the seas, our chief concern is an all-out united effort to eliminate the threat to civilization by our ruthless enemies. It is un necessary to remind you of the grave danger we face as we oppose the Axis triumvirate. At the same time, it may not be inappropriate to consider for a few moments another enemy who marches in our midst without benefit of 5th column, an enemy who recruits his regiments from the underworld for sly attacks which menace constantly the integrity of our monetary system. All of us, I am sure, are convinced that the finest engravers in the world design our paper money, and that the finished product of the Bureau of En graving and Printing surpasses in excellence the currency output of all other governments, This satisfaction , however, should not cause us to over look the fact that certain persons with twisted minds envisage a road to rapid wealth by floating unauthorized issues intended to defraud our cit izens and our government. Unlike Hitler and Hirohito, who force printing press money on subjugated peoples, they do not wait for war to force their assaults on the public, (2) Belonging to the nether strata, their connections extend throughout the country, and even into foreign lands. Some of them are so skillful they often lead the Secret Service over long and tortuous trails ending ulti mately at the doors of a Federal penitentiary, ¿holly without conscience, they preconceive their every act, and whatever success they achieve is measured by the deliberate manner in which they engineer their unworthy activities. In the old days dating back to the Civil v/ar, counterfeits were printed from steel plates engraved by master craftsmen whose handiwork flashed a glint of such realism that a wave of hysteria swept banking circles, tel lers and other bank employees being helpless in their attempts to detect the bogus bills. It is an interesting commentary that only two hand-engraved counterfeits have appeared in the past 20 years, both being the handiwork of the same man. The first of these unique productions showed in 1931 in New York and circulated widely in the larger Eastern cities. Since it was fairly deceptive, we were puzzled for a while as we formulated plans for its sup pression, Inasmuch as engravers apply to their handiwork unwittingly the label of their own individuality, our men consulted scores of legitimate engravers and printers in the New York area, exhibiting specimens of the counterfeit, hoping to find someone able to identify the counterfeiter*s technique*.Finally, in one shop, an engraver evinced more than ordinary interest and remarked: "That certainly looks like Billy Jones' work," He pointed out his reasons with adequate explanation. Agents then secured specimens of Jones' engraving from commercial shops in which he formerly (3) worked., finding in them amazing similarity to certain characteristics in the counterfeit. Jones was regarded as an accomplished craftsman, hut his fondness for liquor removed him from the ranks of reliable workmen. In due time- he gradually lost favor with the profession and began to consort with shady characters, -.e arrested him soon afterward in the act of retouching the plates from which the counterfeit was printed. Investigation revealed he was used as a pawn by a group of Italian gangsters who picked him up from the gutter and engaged him to embark upon a counterfeiting career. His fellow conspirators were also arrested and sent to prison by the Secret Service. Jones also went to prison. With the arrest of this gang, this en graved counterfeit faded out of the picture almost immediately, A hand-engraved $5 Silver Certificate began to circulate* in Providence, R. I,, about two years ago, To veteran agents, it radiated the personality of Billy Jones, seeming to flash his actual fingerprints. It so happened Jones lived in Providence at the time. He now resides in a Federal peni tentiary under 10-year sentence, because we arrested him a few days after this counterfeit appeared and seized his equipment in his home. A new order has developed in the graphic arts field in recent years with the perfection of modern engraving and printing processes, It is now un necessary that a counterfeiter shall be a hand-engraver, for the photo engraving industry provides a suitable substitute. However, in embracing this method, the counterfeiter finds a stumbling block which renders his work ineffective in accurate reproduction of the portraits on our currency, the latest duplicating devices being incapable of transferring to metal plates the delicately cut engraved lines and shadow values which distin guish genuine paper money, particularly in the portraits. The facial feat ures are coarse and the eyes generally lack expression and vitality. For this reason, faces on counterfeit notes are obviously strange and Hun friendly" , echoing the base character of their unworthy sires. The average bank teller sees daily the portraits of Washington, Jefferson, Lincoln, Hamilton, Jackson, and perhaps Grant and Franklin, hundreds of times. They pass before him in rapid review and it is impossible for him to stop and examine minutely the portrait oh each note* He must accept or reject the notes instantly. An experienced teller spots instinctively the strange or "unfriendly" face on a counterfeit note as quickly as he iden tifies the face of a stranger before his window. Through long years of training, he acquires a sort of sixth sense which enables him to distinguish between good and bad engraving and printing. But what about the butcher, the baker, the candlestick maker?" Why are they susceptible to the wiles of the counterfeiter? When you realize that the general public is ignorant of the quality and character of our legal tend er, you may understand why the average annual public loss over a U-year period, 1933-1937» amounted to $771,000, This fraud in 1935 reached the astounding figure of approximately one and one quarter million dollars, when counterfeiting in this country climbed to an all-time high, exponents of this gigantic swindle preying upon the ignorance pf an unsuspecting people. Few persons know our currency is printed from steel plates engraved by hand. Except for the serial numbers and Treasury seal, every line, every dot, every dash on each note stands up clearly and distinctly, the com posite design representing a challenge to the finest steel engraved sub ject in any art salon. These notes are printed on high quality distinctive (5) paper impregnated with tiny red and blue fibers difficult to discern at first glance. These fibers are intended to increase the paper’s tensile strength and durability, and contrary to popular belief they are not placed in the paper as a protective feature. The lettering on your engraved bus iness or personal card shows an upraised surface. Every note printed by your government is made similarly and each specimen is a gem of the en graving art. It seems to be a common habit to identify paper money by the large denom inational numerals in each corner; the color tone, artistic workmanship, and general appearance fail to excite interest m one way or another. Most people are prone to accept money without any of these considerations. I am reminded of Tony Spinelli, a New Orleans grocer, who caters to a clientele which demands the best of everything the Old French market af fords. Tony visits the wholesale dealers daily before sun-up to replenish his stock, shopping at various booths in an honest effort to obtain the choicest items, fully aware his customers will inspect his offerings for freshness and quality. One day, when his strawberries attracted more than usual attention, a stranger purchased six baskets with a. $20 note. Now Tony knows his trade personally, but occasionally a stranger calls, and this strawberry sale failed to impress him until a few minutes later, when he dispatched a clerk to a nearby bank w/ith the $20 note to be changed for silver, When the salesman returned with the note labeled "Counterfeit", Tony rent the air with a series of choice epithets. Like many other per sons, Tony was unaware that counterfeits are passed by strangers in 99 out of 100 cases. In our educational campaign, we stress the warning that (6) nearly all counterfeiters are strangers, but that all strangers , of course, are not counterfeiters. Since his unfortunate experience, I am sure Tony is exercising as mutch care in handling his money, in particular money sub— m itted by unknown persons, as he displays in selecting his fruits and veg etables, He doubtless scans his notes a second time to reassure himself that none of his currency bears the tell-tale distinguishing marks of the Aphony’* bill. lihen Frank Sernak came to this country many years ago from Poland, he es tablished himself in the mercantile business in Coalton, a little mining community in West Virginia, where his customers for the most part consist ed of Hungarians and Poles employed in the bituminous field. Sernak* s weak eyes were framed by spectacles carrying heavy lensesr A poorly dressed man called early,one Saturday evening, when business was brisk - it was payday, incidentally - and made a few purchases with a $20 note which Sernak ac cepted in perfunctory manner. Walking away nonchalantly, the stranger en tered a widow s shop two doors distant, carrying a reed basket on his left arm. He examined a tray of neckties on the counter. A little girl, probably 15 years of age, solicited his requirements. '’I’ll take this one”, he in dicated, as he handed the tie and a $20 note to the youthful clerk. The tie was priced at $2. The girl marveled at his extravagant taste as she wrapped the package neatly and handed it to her customer with the priper change. She was delighted to have made so large a sale in the absence of her employer. The stranger, with basket over his arm, resumed his shopping tour by call ing at Max Hertzburg' s butcher ship at a time when the owner was at din ner. Hertzberg's two sons were waiting on the tradef Loitering about until (7) he was approached by the younger of the clerks, a lad of 16, the stranger in quired ; "Can you change a twenty?". Receiving an affirmative response, he made several purchases and departed with a supply of steak, bacon, and butter and $17.50 in cash. He then strolled down the dimly lit street until he reach ed an alley in which he abandoned basket and contents. T,Then he emerged, he turned toward the railroad station, elated over his success in disposing of the counterfeits so easily. Five minutes later, as the train departed, he settled back in his seat in the smoker, puffing a stogie, and began to for mulate his plans for another raid on an unsuspecting community, Following their custom, the Coalton merchants visited the town’s only bank IToniay morning to deposit their week-end collections. Always the first in line, Sernak stood before the cashierfs window watching the banker check his stack of notes which he flipped deftly through trained fingers. All at once the cashier stopped to scan more carefully a $20 note» He held it to the light and finally studied it under a small magnifying glass. ’Sorry, Mr. Sernak", he exclaimed, "you have a phony bill here. The old man whs stunned momentarily, but his defective eyes could now discern the note’s spurious quality as he examined the counterfeit, As Sernak walked away, the widow came in with her meager deposit. The cashier resolved to inspect with un usual care the funds of other customers, convinced that where there is smoke there must also be fire. He picked out nuite easily in the widow’s money the $20 note with which the stranger purchased the expensive necktie, When she realized that she, too, had been swindled out of $18 - more than one week’s profit - she turned aside disconsolately, tears streaming down her cheeks, muttering words of condemnation against the counterfeiter. Hertzburg was among the last of the hank’s customers to appear. He stood silently at the window as the cashier withdrew from his stack of notes the $20 bill which the younger of his two sons accepted from the basket-carrying stranger. It was again the old, old story of failure to examine money carefully. The counterfeiter’s shrewd criminal mind directed him to execute his maneuvers on a Saturday night with full realization his victims could not bank their money until Monday. He chose Sernak because of the merchant’s failing eye sight. He selected the widow’s store because the only clerk on duty was a little slip of a girl, and in the butcher shop he waited until he could be served by the younger of the two clerks. If his victims had given the notes more than a casual glance, they would have observed that the Jackson port rait appeared to be smudgy and too dark, and the border lathework and letter ing were reproduced in amateur style. The serial numbers and Treasury seal were printed carelessly in an off-color shade of green in common with the back of the note. The paper was of such inferior grade that this feature alone should have aroused suspicion. Hollowing his discovery, the banker notified the nearest Secret oervice office immediately. Steps were then taken by the agent-in-charge to issue a descriptive warning notice for distribution t banks and police officers in nearby cities and towns. Two weeks later, in a town less than 100 miles from Coalton, a grocer who received a warning notice from his bank, did not like the looks of a $20 note submitted by an unknown customer, He rushed to the front door, locking it securely, and telephoned to police headquarters. The stranger was so amazed by this turn of events he mode no attempt to es cape. Officers arrested him a few minutes later and found in his possession four counterfeit $20 notes. (9) Genuine notes are issued in eleven denominations, each carrying a standard denominational portrait as follows: $1, Washington; $2, Jefferson; $5, Lin coln; $!■', Hamilton;'$20, Jackson; $5C|, Grant; $100, Franklin; $500, McKin ley; $1000, Cleveland* $5000, Madison; $10,000, Chase. Irrespective of other identifying characteristics, a note should he recognized only by the port rait it bears. If one remembers the portraits on genuine notes, he will not be deceived by the note-raiser Who tampers with genuine currency , erasing the corner numerals and denominational lettering and substituting in paint or ink the artistic flourishes necessary to increase, for his purposes, the original value of the note. He may even tear off the corners of genuine $10, or $20 notes, and paste them over the corners of notes of smaller denom ination. A $20 note carrying the portrait of Lincoln.must, therefore, be a $5 note altered to represent $20, for Lincoln’s portrait appears only on a $5 bill. Those misguided persons who turn to coin counterfeiting are usually possess ed of limited means. With a small outlay of cash, they are able to purchase plaster of Paris, babbitt metal, lead, antimony, tin, and zinc. Little skill is required to fashion a mold and pour molten metal. Counterfeit coins are generally light in weight and produce a dull sound when dropped on a hard surface. They tarnish ouickly and have a ’’greasy feel” when rubbed between one’s finger tips. Molded coins fail to reproduce accurately the parallel crevice lines on the rim edge. This characteristic is often identified in error as the milling instead of reeding, A drop of nitric acid and nitrate of silver applied to a counterfeit coin of base metal will produce a black spot. A few years ago one of our men was reminded by his wife on a Saturday ni^ht that the cupboard was bare of maple syrup, and that the customary flannel cakes for Sunday morning breakfast would be omitted unless he cared to visit the neighborhood grocery and secure a can of the necessary trimmings. Not desiring to be deprived of his favorite breakfast dish, he hurried round the corner to a nationally known chain store and purchased the syrup, paying with a &1 bill which happened to be the only cash in his possession at the time, and receiving in change 75d in two coins. On his return home, his father-in-law advised him of paying the newsboy who called in the agent’s absence to collect for monthly delivery of the after noon paper. The agent reached int' his pocket and reimbursed him with the 50^ coin which came from the grocery store. He then turned to the newspaper and seated himself comfortably in his chair, only to be distracted a few moments later by a discordant musical note. Looking up, he observed his father-in-law seated near the radio balancing a coin on one finger and tap ping it with his knife. "Let me see that”, said the agent, "and where did you get it?” ”You gave it to me a few minutes ago” was the rejoinder. "That’s a good one on me , replied the agent, "I know where it came from and I am going to see about it immediatelyWith this, the agent dashed out of the door and sped to the grocery store, arriving shortly after 9 p. m. A large card labeled CLOSED was suspended in full view on the door. A few late customers were inside completing their marketing. After trying the door knob, the agent rapped sharply on the door and gained the manager’s attention. The manager pointed to the sign and turned away. The agent knocked again. The manager again indicated that business was ended for the day. In response to further knocking, however, he came forward and opened the door, which was held by a small chain allowing it to swing back about 12 inches. "I am sorry, sir”, said the manager, "but the store is closed for the day; we are not oermitted to admit customers after 9 p. m." "I know that”, the agent replied, "but 1 merely want to speak with you a moment. I was in your store about 30 minutes ago and purchased a can of maole syrup with a $1 bill, and one of your clerks gave me a 25^ coin and a 50d coin in change. The 50^ coin is counterfeit and I am calling on you for re imbursement ." The manager peered through the narrow space separating him from the agent, who had not then identified himself, and repeated in part the agent’s state ment, "You say you were in here half an hour ago and one of my men gave you this coin in change in your purchase of a can of syrup.” He toned the remark in such manner as to suggest clearly he did not believe the claim. ,fHow do I knovj you obtained the coin here?” he rueried. The agent then ex hibited his credentials and explained ho possessed no small change when he patronized the store and there could be no mistake as to the source of the counterfeit. ■Yell," said the manager, "since you claim you obtained the coin here, I guess I shall have to make it good out of my own pocket," with this, he ex tracted a 50-i coin from his purse and handed it to the agent who by this time was beginning to lose patience and poise,, particularly because he was held at bay by the chain which limited the door opening to about one foot. (12) ,rBy the way, which one of my clerks waited on you? asked the manager. This ruery placed the agent squarely on the spot. He purchased the syrup hurried ly and was unable to identify the salesman, although he was aware the clerk was a young man. Among the dozen or more clerks, there were two young men. After surveying the store employees, the agent pointed to two and said: "He was either this man or the other one.” ”Jones, come over here” commanded the manager. Jones responded. ”Did you wait on this man 30 minutes ago?” After a brief pause, the clerk said ”No sir, I have never seen him before.” Obeying a nod, the other young salesman stepped forward. ”Brown, did you sell this men a can of syrup about 30 minutes ago and give him this counterfeit coin in change? the manager inquired. "No,-sir, I did not wait on him” was the response. This repudiation did not increase the agent’s stature in the presence of the manager . Acknowledgment by either salesman meant in all likelihood that the manager would collect from the one admitting the syrup transaction. After accepting reimbursement from the manager, the agent advised him of the necessity of surrendering the counterfeit which he could not retain knowing it to be worthless. ”0h no” , the manager exclaimed, ”1 have made good the bad coin and intend to keep this one.” His haughty attitude seemed to in crease when the agent reminded him again of the provisions of the law re lating to possession of counterfeit money by unauthorized persons. ‘'All right, sir” , said the agent, ’’you refuse to surrender the counterfeit coin, but let me tell you this; if that coin is not available TTonday morning, when I make formal demand for it, it shall be my duty to escort you to the (13) office of the U. S. Commissioner and file a complaint charging you with fail ure to surrender counterfeit money.” The agent began to think quickly. He didn*t desire to be humiliated further by his failure to take up the coin through diplomatic process, and he also desired to avoid a scene by summoning a policeman to assist him in his per plexity. "By the way” , he said suddenly, "let me initial that coin.” Taken off his guard, the manager handed over the coin and the agent walked away jubilant over the success of his ruse. The agent involved in this true story knows his monoy. He should be an exoert after 20 years of experience in the business of detecting and suppressing counterfeiting, but in this instance he dropped his guard chiefly because the salesman handed the change to him directly. There was no opportunity to hear the impact of base metal against a hard surface such as the store counter provided. The "greasy feel" of the coin should hove attracted his attention, but the agent ignored this fairly reliable test and, in conse quence he became a victim of an experience he will not soon forget. I rather enjoy telling this story, because your sneaker is the agent who dropped his guard. aroused bv the tremendous loss sustained by the public at the hands of the counterfeiter, Chief Frank J. Wilson, vjho assumed leadership of the Secret Service in 1937, decided upon a bold approach to the problem by adopting new methods in fighting counterfeiting through education instead of prose cution. As an experiment, he sent a picked sauad of agents to New York City Cm ) to conduct an educational campaign intended to familiarize the retail bus iness man and his associates with the identifying characteristics of genuine money and the defects apparent in counterfeit money. These agents were so engaged foh nearly four months. They lectured before 2160 meetings attended by 93,909 persons, including merchants, small shopkeepers, bank employees, police and postal officials. Radio talks were made and short movie subjects dealing with the campaign were projected in line with this educational ac tivity. Nearly one million warning notices describing counterfeit notes were distributed through the mail and more than 100,000 clerks and sales men were instructed orally. Before the campaign was completed, traffic in counterfeit money in the New York area began to show a noticeable decrease and marked reduction was also observed in other sections of the country. The success of the campaign exceeded all expectations, with the result that it was decided to conduct a similar program on a nationwide scale the fol lowing year, featuring a sound motion picture "KNOW Y0T1R YONEY” and a 32page illustrated booklet of the same name containing helpful information for the layman in detecting counterfeits. This film has been exhibited to date before more than 6,500,000 persons, including more than 4000,000 school children. The booklet h^s been acclaimed by thousands of public school of ficials as an educational instrument filling a long-felt want, ’"any high schools have accepted it _as a textbook for study in civic.s and economics classes. The film and booklet have been major factors in the remarkable re duction in counterfeiting activity during the past three years. The whole sale and retail grocer have cooperated splendidly with the secret Service in this educational campaign. Your very capable, executive" vice-president, (15) Mr. Lazo, has already forwarded to you a pamphlet entitled "KNOW YOTTR TK)NEY". Many of you, I am sure, have attended meetings before which our agents have lectured on this subject and exhibited the film. We desire to acknowledge at this time our appreciation of the cooperation by many national advertisers who are distributing counter displays imprinted on the back with "KNOW YOMR MONEY'" information for the protection and information of your clerks and other employees* We will be grateful if you, as an organization, will urge other advertisers to adopt this procedure for the benefit of your employees and also for your own protection against the counterfeiter. In closing, may I cite again the overage annual loss of #771,000 from count erfeit notes for a four-year period, 1935-1937, and point to the public loss of $91,097 during the fiscal year ended June 30, 1941, representing a de c e a s e of #54,347 over the previous fiscal year. The retail grocer’s en thusiastic support of our educational program has been a potent force in this remarkable showing, and we ask your continued assistance in our com mon responsibility of preserving the integrity of our currency and coinage as ?e carry on. * * - 2 - occupied countries, officials explained. Germany had made it a practice to issue a great variety of stamp series both for itself and the countries which it has crushed. The stamp racket was described as running in cycles. First the occupied country's regular stamps are overprinted, circulated and sent to the Western Hemisphere for distribution to dealers and ultimate consumption by enthusiastic American collectors. Secondly, an occupation stamp is introduced and sent through the same channels used in dispensing overprinted stamps. Finally, a series of new German stamps for that country is issued, and within a few weeks those stamps begin to fatten the albums of stamp collectors and dealers in America. Each issue is exploited to the fullest possible extent. Whenever Nazi authorities note a drop-off in the number of stamps sold through the underground channels to American collectors they crank up the presses and grind out another series in order to keep the vital flow of American exchange coming into the hands of Nazi agents in the Western Hemisphere. These stamps are purchased from Nazi agents by astute C\ y \\y \ y stamp dealers who operate in neutral markets and act as distributing agents for such stamps to dealers and collectors throughout the world. The stfift movement of stamps from the occupied nations to . America is shown by the ST-*mp a of United States dealers who carry all the latest Axis stamp issues. The Treasury has appealed X. to these groups in particular to cut off the profitable Axis stamp racket because they are placed in a key transaction• spot i n t h e ordinary stamp TREASURY DEPARTMENT Washington FOR IMMEDIATE RELEASE Press Service No, The Treasury Department announced today it has destroyed a $20,000,000 Nazi postage stamp racket by banning the importation of postage stamps from Axis or Axis-occupied nations. Freezing control officials stated that the Axis, more desDerate than ever for the coveted American dollars which are necessary to carry on a program of sabotage and treachery, has made a practice of printing many new stamp series for the occupied nations. The stamps would be forwarded to American stamp collectors who would in turn pay American dollars for them. The sum of money obtained by this racket is said to have reached $20,000,000. The traffic was terminated by instructions to Collectors of Customs to block the importation of stamps in which Axis and Axis## occupied countries or their nationals have an interest. At the same time the Treasury publicly appealed to patriotic stamp collectors and dealers for cooperation in this program. The Treasury also emphasized the penalty provisions which may be invoked in any case of willful violation of the freezing regulations on the stamp traffic. Catering to the millions of American stamp collectors, Axis presses have poured out many new issues of stamps for the Axis and TREASURY DEPARTMENT Washington FOR IMMEDIATE RELEASE, Friday, January l6, 19^-2, Fress Service No> 29-66 The Treasury Department announced today it has destroyed a $20,000,000 Nazi postage stamp racket by banning the importation of postage stamps from Axis or Axis occupied nations. Freezing control officials stated that the Axis, more desper ate than ever for the coveted American dollars which are necessary to carry on a program of sabotage and trea,chery, has made a practice of printing many new stamp series for the occupied nations. The stamps would be forwarded to American stamp collectors who would in turn pay American dollars for them. The sum of money obtained by this racket is said to have reached $20,000,000. The traffic was terminated by instructions to Collectors of Customs to block the importation of stamps in which Axis and Axisoccupied countries or their nationals have an interest, At the same time the Treasury publicly appealed to patriotic stamp collectors and dealers for cooperation in this program. The Treasury also emphasized the penalty provisions which may be invoked in any case of willful violation of the freezing regulations on the stamp traffic. Catering to the millions of American stamp collectors, Axis presses have poured out many new issues of stamps for the Axis and occupied countries, officials explained. Germany had made it a practice to issue a great variety of stamp series both for itself and the countries which it has crushed. The stamp racket was described as running in cycles. First, the occupied country's regular stamps are overprinted, circulated and sent to the Western Hemisphere for distribution to dealers and ultimate consumption by enthusiastic American collectors, Secondly, an occupation stamp is introduced and sent through the same channels used in dispensing overprinted stamps. Finally, a series of new German stamps for that country is issued, and within a few weeks those stamps begin to fatten the albums of stamp collectors and dealers in America. Each issue is exploited to the fullest possible extent. When ever Nazi authorities note a drop-off in the number of stamps sold through the underground channels to American collectors they crank up the presses and grind out another series in order to keep the vital flow of American exchange coming into the hands of Nazi agents in the Western Hemisphere, - 2 - These stamps are purchased from Nazi dgents by astute stamp dealers who operate iri neutral markets and act as distributing agents for such stamps to dealers and collectors throughout the world* The swift movement of stamps from the occupied nations to America is shown by the circulars of United States dealers who carry all the latest Axis stamp issues. The Treasury has appealed to these groups in particular to cut off the profitable Axis stamp racket because they are placed in a key spot in the ordinary stamp transaction. -0 O 0 - January 15, 1942. MEMORANDUM FOR THE FILE: Mr. Arthur Watson, assistant collector of customs at Tampa, Florida, called me by telephone at 3:15 today, at which time he stated that his officers in Miami, Florida, were encountering a great deal of difficulty in enforcing the licensing provisions of the Trading with the j^iemy Act (T. D. 50525)* Mr. Watson stated that there are more people leaving Miami for foreign countries by air than any other port in the U. S., and that a majority of the individuals leaving that port arrive a few minutes before the plane is to leave, with enormous quantities of blue prints, documents, plans, specifications, and various types of technical communi cations destined for Central and South American countries. A large number of the communications contained are in foreign language. Due to the highly technical data contained in the baggage of these passengers, it is »impossible to examine thaw properly with a view of permitting turn to go forward with the passengers. In many instances he is detaining these documents over the strong protests of their owners. V ,/C ¡ p jf my //V r/ 4 r r ¥ Mr. Watson suggested that some stepg^be^ jjaken in Washington to educate the traveling publitySsc ' iRe^necessity of getting these forms of tangible communications in the hands of customs officers in ample time to have them examined prior to the time the traveler desires to leave the United States. He states that he is getting good cooperation from the airplane companies in Florida who sell tickets in that district. However, a large number of people purchase their tickets in other states and have no knowledge of customs requirements Tintil a short time before they expect to leave the United States. A'v# Jj~ V* n A jfit JL \/ Ajr 3\i * . ’ % * 4. 1 K JSh'è 1. os 0 . Am \K 2 < It was pointed out that the regulations issued under the Act included written and typewritten documents, that time is required for the translation of statements ini foreign languages and that exposed film, developed or undeveloped, must be examined by the y t/iVl** For Sunday a m ’s Co-operation of the traveling public was asked by the Treasury Department todajl in connection with the enforcement of section 3(c) of the Trading with the Enemy Act, which prohibits except under license the carrying of any form of tangible communication into or out of the United States. To avoid delays in making connections and possible embarrassing incidents, Treasury officials gave the following advice to t r a i l e r s : 1 . Refrain from carrying with you acfeHajSsr on foreign t documents 2 . Wi When you it absolutely necessary to carry maps, plans, blue prints, specifications or similar documents with you, present them as long in advance of departure time as is possible to the office of the Collector Customs, where it will be determined whether the communication msy be licensed. ^^more TREASURY DEPARTMENT Washington FOR RELEASE, MORNING NEWSPAPERS, Sunday, January IS, 19^2.________ Press Service No, 2 9 - 6 7 1 /1 6 A 2 Co-operation of the traveling public was asked by the Treasury Department today in connection with the enforcement of section 3 C&Î of the Trading with the Enemy Act, which prohibits except under license the carrying of any form of tangible communication into or out of the United States, To avoid delays in making connections and possible embarrass ing incidents, Treasury officials gave the following advice to travelers * . 1. Refrain from carrying with you on foreign trips any documents unless they are absolutely essential, 2. When you find it absolutely necessary to carry maps, plans, blue prints, specifications or similar documents with you, present them as long in advance of departure time as is possible to the office of the Collector of Customs, where it will be determined whether the communication may be licensed. It was pointed out that the regulations issued under the Act included written and typewritten documents, that time is required for the translation of statements in foreign languages and that exposed film, developed or undeveloped, must be examined by the Customs officers before licenses can be issued. -0 O 0 - interests in the United States by every conceivable device, and consequently few such enterprises are now directly owned by Axis nationals. Crafty Germans aSt;ump%~t"o’utiliUe^ummy xorpor ations 'a and agents in neutral countries to control their businesses here, and in other cases family ties have given the Germans control of corporations which, on the surface, are owned entirely by American citizens. % J ^ ^ X ' - 3 - In New York a publishing house which had printed Bundist newspapers and magazines during the months leading up to active American participation in the warA found Treasury agents on the spot v.ithin a few hours after the first war news flashed over the wires. Full cooperai 4 Government agencies Intelligence. v Treasury guards have patrolled the premises of the closed and supervised business establishments in order to prevent destruction or removal of valuables, papers and records. Treasury supervisory staffs, including lawyers, investigators, bank examiners, accountants, chemists and other administrative people have been placed i n ~ ninf if im w plant s harve Axis cuiiroirfriuutf^" These men read the correspondence, check the personnel to immttmmm Axis M M p j M b M P B , and pass on all transactions, of the concerns they supervise. In some cases the checks are counter signed by the Treasury representatives. Many of these concerns manufacture such apportaste war materials as films for taking war photographs, drugs for the treatment of the sick and wounded, insulation for radio sets end plastics. One of the factories manufactures presses for fabricating metal, particularly aluminum, one of the most vital of all war materials. * ...... Wily Axis businessmen learned muclijfrom * * ^ " .0 -d r . * iL A-*-*-** i experience in World War I when property in the United States owned by alien enemies was seized by theluXs.^Alien Property Custodian. In the 20-year interval between the two wars, Axis nationals have camouflaged their r - 2 - Among the firms padlocked were exporting houses which had attempted to hold South American markets for German manufacturers, who, since the outbreak of war in 1939, had been unable to continue supplying South American customers with merchandise from Germany. These brokers were buying American goods for delivery in South America in fulfillment of German contracts. In this way the customers in South America were kept satisfied and the German manufacturersjjhoped to regain ¿ i s market after the war * ¥m1inn til TT*T""1" TTi"Tr,fTr,trr"'"Tn' i South American buyers, no longer able to deal through pro-German brokers, now will buy from legitimate American brokers, it is believed. Ok The Treasury also closed large steamship companies, such as the German dominated Hamburg—American line and the Japanese Nippon Yusen Kaisha, known more commonly as NYK. Six foreign banks, including the huge Italian Banco di Napoli and the Japanese Yokohama Specie Bank, were shut down. By wiping out these centerpoints of foreign finance the Treasury has obliterated the possibility of their use for hostile Axis financial transactions. All remaining money conduits are tightly blocked. Four of the Big Five families which dominate the Japanese economy — Mitsui, Mitsubishi, Sumitomo and Okura found their subsidiary concerns in the United States under lock and key and patrolled by Treasury guards the morning following the Pearl Harbor att ack. TREASURY DEPARTMENT Washington Press Service No. FOR 'IMHUUIJgg' fpEBSSS ijt\ uv The Foreign Funds Control Division of the Treasury Department has padlocked more than 100 German, Japanese and Italian business /V houses and subjected 98 *C V > o t h e r ^ t o strict supervision since the United attacked in the Far East. States was The Treasury’s action shortcircuited possible Axis sabotage on the American industrial front by erasing focal points of enemy espionage and other subversive activity on the American continent. Banks, steam ship companies, import—export firms, news agencies, trade associations and brokerage houses, through which the Axis had sought to maintain Its trade and financial influence in this hemisphere, were among the S T ^knew to be potential sources of trouble. enterprises which the I a a ^ o p e ra tio n ofA nmety-eight m a iw fa e tu L 'i.T T ,1 T in th is being strictly supervised by the Treasury to insure \ \ n - r n n rln n i*r**m & the regular flow of the vital war materials which they manufacture. The treasury was able to take instantaneous action to avoid any letup in production because it had controlled alien manufacturers for several months prior to December 7, and the data necessary for action was ready at hand the moment the Japanese loosed bombs on Pearl Harbor. Even before toe N i g p m a m i blit^kriyg 'began, the closed ana A supervised concerns werg operating under special Treasury license and ” ^^was already scrutinizing minutely all transactions those business enterprises undertook. TREASURY DEPARTMENT Washington FOR RELEASE, MORNING NEWSPAPERS, Sunday, January 13, 19*12._______ Press Service No. 29-63 The Foreign Funds Control Division of the Treasury Department has padlocked more than 1 0 0 German, Japanese and Italian business houses and subjected 9 & other business concerns to strict super vision since the United States was attacked in the Far East. The Treasury's action short-circuited possible Axis sabotage on the American industrial front by erasing focal points of enemy espionage and other subversive activity on the American continent Banks, steamship companies, import-export firms, news agencies, trade associations and brokerage houses, through which the Axis had sought to maintain its trade and financial influence in this hemi sphere, were among the enterprises which the Department's agents knew to be potential sources of trouble. Continued operation of the ninety-eight business enterprises, many of which have important Axis connections, is being strictly supervised by the Treasury to insure the regular flow of the vital war materials which they manufacture. The Treasury was able to take instantaneous action to avoid lsiup in production because it had controlled alien manufac turers for several months prior to December 7 , and the data necessary for action was ready at hand the moment the Japanese loosed bombs on Pearl Harbor. Even before Pearl Harbor, the closed and supervised concerns were operating under special Treasury license and the Foreign Funds Control was already scrutinizing minutely all transactions those business enterprises undertook. Among the firms padlocked were exporting houses which had attempted to hold South American markets for German manufacturers, who, since the outbreak of war in 1 9 3 9 > Had been unable to continue supplying South American customers with merchandise from Germany. These brokers were buying American goods for delivery in South America in fulfillment of German contracts. In this way the customers in South America were kept satis fied and the German manufacturers hoped to regain this market after the war. South American buyers, no longer able to deal through pro-German brokers, now will buy from legitimate American brokers, it is believed. 2 The Treasury also closed large steamship companies, such as the German dominated Hamburg-American line and the Japanese Nippon Yusen Kaisha, known more commonly as NYK. Six foreign banks, including the huge Italian Banco di Napoli and the Japanese Yokohama Specie Bank, were shut down* By wiping out these center— points of foreign finance the Treasury has obliterated the possibility of their use for hostile Axis financial transactions. All remaining money conduits are tightly blocked. Four of the Big Five families which dominate the Japanese economy — Mitsui, Mitsubishi, Sumitomo and Okura — found their subsidiary concerns in the United States under lock and key and patrolled by Treasury guards the morning following the Pearl Harbor attack* In New York a publishing house which had printed Bundist newspapers and magazines during the months leading up to active American participation in the war found Treasury agents on the spot within a few hours after the first war news flashed over the wires, Full cooperation in these precautions has been maintained at all times with other Government agencies, such as the Federal Bureau of Investigation, Naval Intelligence and Military Intelli gence * Treasury guards have patrolled the premises of the closed and supervised business establishments in order to prevent destruction or removal of valuables, papers and records. Treasury supervisory staffs, including lawyers, investigators, bank examiners, accountants, chemists and other administrative people have been placed in the plants. These men read the correspondence, check the personnel to determine Axis connections, and pass on all transactions, of the concerns they supervise. In some cases the checks are countersigned by the Treasury represen tatives. Many of these ninety-eight concerns manufacture such useful war materials as films for taking war photographs, drugs for the treatment of the sick and wounded, insulation for radio sets and plastics. One of the factories manufactures presses for fabri cating metal, particularly aluminum, one of the most vital of all war materials. Wily Axis businessmen learned much, Treasury officials said, from their experience in World War I when property in the United States owned by alien enemies was seized by the United States Alien Property Custodian. In the 2 0 -year interval between the two wars, Axis nationals have camouflaged their interests in the United - sV States by every conceivable device, and consequently few such enterprises are now directly owned by Axis nationals. Crafty Germans have attempted to utilize “dummy 11 corporations and agents in neutral countries to control their businesses here, and in other cases family ties have given the G-ermans control of corporations which, on the surface, are owned entirely by American citizens, -0O0- 2 The securities clearing organizations and qualified member firms or corporations of securities and investment associations which wish to qualify may do so through the Federal Reserve Bank in the Reserve Districts where they are located* In a general way the basic requirements for qualification as an issuing agent for a member firm or cor poration is to be in good standing in its association or exchange, and to deposit under suitable regulations with the Federal Reserve Bank the sum of $25,000 or the equiva lent in approved securities« Whether or not a member firm or corporation acts as an issuing agent will not in any way affect its continuing to give information and to help with the sales of all series of Defense Savings Bonds, officials of the organizations said* -OoO- T -f-lo f l u f ~y}j~K4U^ The Treasury announced today that, as a result of the offer by officials of various securities and investment or ganizations to aid in providing a larger number of Issuing agents for Series E Defense Savings Bonds, arrangements have been completed so that clearing corporations of recognized securities exchanges and properly qualified members of the recognized securities and investment organizations may now be designated as such issuing agents« The parent organizations which have been most active in this matter are the New York Stock Exchange, the Investment Bankers Association of America, the National Association of Securities Dealers, Inc«, the Association of Stock Exchange Firms, and 'th^ group* of recognized dealers in United States securities* The following officials of these organizations conducted the negotiations with the Treasury Department; John S. Fleek, President of the Investment Bankers Association of America; Wallace H« Fulton, Executive Director of the National Assoc iation of Securities Dealers, Inc« 5 James F. B u m s , Jr«, Pres ident of the Association of Stock Exchange Firms; Emil Schram President of the New York Stock Exchange; and Dominic W* Rich, representing the groupX of recognized dealers in United States Government securities« TREASURY DEPARTMENT Washington FOR RELEASE, MORNING NEWSPAPERS, Monday, January 19» '19^2.____ ___ 1/17/4-2 Press Service No. 2 9 - 6 9 The Treasury announced today "that, as a result of the offer by officials of various securities and investment organizations to aid in providing a larger number of issuing agents for Series E Defense Savings Bonds, arrangements have been completed so that clearing corporations of recognized securities exchanges and properly qualified members of the recognized securities and invest ment organizations may now be designated as such issuing agents. The parent organizations which have been most active in this matter are the New York Stock Exchange, the Investment Bankers Association of America, the National Association of Securities Dealers, Inc,, the Association of Stock Exchange Firms, and -the group of recognized dealers in United States securities. The following officials of these organizations conducted the negotiations with the Treasury Department* John S, Fleek, President of the Investment Bankers Association of America; Wallace H. Fulton, Executive Director of the National Association of Securities Dealers, Inc,; James F, Burns, Jr,, President of the Association of Stock Exchange Firms; Emil Schram, President of the New York Stock Exchange; and Dominic W. Rich, representing the group of recognized dealers in United States Government securities, The securities clearing organizations and qualified member firms or corporations of securities and investment associations which wish to qualify may do so through the Federal Reserve Bank in the Reserve Districts where they are located. In a general way the basic requirements for qualification as an issuing agent for a member firm or corporation is to be in good standing in its association or exchange, and to deposit under suitable regulations with the Federal Reserve Bank the sum of $-25,000 or the equivalent in approved securities. Whether or not a member firm or corporation acts as an issuing agent will not in any way affect its continuing to give information and to help with the sales of all series of Defense Savings Bonds, officials of the organizations said. - 0 O 0 - 0 ?-•? The Treasury announced today that, effective January 26, 1942, it require from its clerical employees, stepping up the present schedule of 39 hours per week, exclusive of the luncheon period, to a 44-hour basis. As a result, one additional hour of duty will be re quired from Monday through Friday, with the prevailing four hours of duty on Saturday boing left undisturbed. The new order affects all clerical, professional, and sub-professional employees of the Treasury Department, in both the departmental and field services, but in view of the fact that the Bureau of Engraving and Printing# and the(£XlT)Mint and other institutions of the Mint Service^ are already operating to a extent on three 8-hour shifts each day, the new order will not apply to these plants. In many cases the new schedules will be put into effect merely by extending by one hour,the time for closing. This will be true at the main Treasury Building, where §368 em ployees will begin their day at 9:00 A . M . , as at present, and remain until 5:30 P.M., with a half-hour luncheon period* nearly every other case, an additional half-hour will be tacked on each end of the present work day. In TREASURY DEPARTMENT Washington FOR RELEASE, MORNING NEWSPAPERS, Sunday, January 1 6 , 19^2.________ Press Service No. 29-70 1/17752 The Treasury announced today that, effective January 26, 1 9 *1-2 , it will require five additional h o u r s 1 work each week from its clerical employees, hours per week, stepping up the present schedule of 39 exclusive of the luncheon period, to a hour b asis. As a result, one additional hour of duty will be required from Monday through Friday, with the prevailing four hours of duty on Saturday left undisturbed. The new order affects all clerical, professional, professional employees of the Treasury Department, and sub in both the departmental and field services, but in view of the fact that the Bureau of Engraving and Printing and the United States Mint and other institutions of the Mint Service are already operating to a large extent on three 6 -hour shifts each day, the new order will not apply to these plants. In many cases the new schedules will be put into effect merely by extending, by one hour, the time for closing. be true at the main Treasury Building, begin their day at 9 :00 A.M., 5:30 where 2 , 3 6 6 as at present, P.M., with a half-hour luncheon period. This will employees will and remain until In nearly every other case, an additional half-hour will be tacked on each end of the present work day. - 0 O 0 - We are not straining our productive resources and mortgaging our financial future for the sake of any mystic \ formula of a better future* We mortgage our future to save our future. We gird ourselves* We summon our men and our resources to work in unity that our future may be our own. We see work to be done to make a better order here. But we put that aside for the moment while we take up the task of ' making"certain that we can, when the time comes, work our own changes in our own way and that we shall not accept what a world I conqueror sees fit to force upon us. On the great seal of the United States there is a phrase which when translated means, "A new order of the ages*11 That new order was the order of Government of, by and for the people* Today we hear the blasphemy, the obscenity of the use of the words "new order" to describe a reversion to tyranny, the abasement of mankind. That is a system that is old in the world, that goes back to the days when men were just beginning their struggle away from barbarism. There can be no new order except in the elevation of the capacity and the dignity of man. The concept of an order that would swing the world back in full cycle beyond the dark ages is an insult to God and to man* ; Let us be ready to make any sacrifice that no such concept be accepted and no such evil befall us* ,• , : -oOo*^ { -7We might,, and I think we should,, consider seriously the imposition of selective credit controls... Our present emer gency is so great that there should be no room in our national effort for speculation of any kind.... In this kind of control the banks of America might well make themselves, as Secretary Morgenthau suggested last month, the sentinels of the nation in looking carefully at all applications for loans and in granting only those which would not compete in any way with defense production,, and particularly in denying loans for the speculative holding of commodities.. We shall be doing many unprecedented things before this crisis is over.. Already a system of priorities has been im posed over a wide range of materials that used to be free for everyone to buy and use.- The time is coming when we may have to carry priorities and price control a big step further. We may come in the end to a system of apportioning or ration ing consumer use of those goods which are needed most urgently for the defense effort. After all, the dimensions of this world struggle are beyond any of our previous conceptions*. The dimensions of our own part in it are only dimly realized by nine Americans out of ten. We have set as our task a program of production j designed to out-produce Hitler fs Germany and all the industrial areas which Hitler has seized... It will do us no good in this effort to be frightened by j words or to be dismayed by the size of the job ahead of us. Business will have to make sacrifices, farmers will have to make sacrifices, wage earners 'will have to make sacrifices before xire have won the victory which is our announced goal. I know that you are not going to be dismayed. You are showing already by the productive achievements of your indus,tries that you are heart and soul behind this effort to make America secure. We cannot hope to live securely in a world dominated by ; any group or race whose basic motive is enslavement —— the enslavement of its own people and of every people that has tried to progress in freedom. I Americans have never found it possible to be isolated || from the world, nor have they found it consistent with their i| honor to be indifferent to aggression and tyranny. The world . shrinks, and never mpre rapidly than in these recent years. The death of free governments one by one, if our inactivity should sanction it, holds for us the imminent peril of the death of freedom here. -c 4 ~ are at least two others which may he mentioned briefly. One is the reduction of non-defense federal, state, and local governmental expenditure* You may have read of the first me’eting the other day of the new committee which includes the taxing and appropriating committees of the House and Senate, which was formed specifically;to study the whole problem of non-essential federal spending* Secretary Morgenthau has been made a member of this committee and looks to its meetings to translate into action the recommendations for economy which he has so often made in his publio statements. I suggest that you keep your eyes upon the workings of this committee and that you also encourage your local community to make a start toward greater economy in local government. j , The last of these obvious anti-inflationary methods is the control of prices, and I shall say only a word or two on this subject. We at the Treasury felt that the price control bill as introduced into the House of Representatives had the possibility of being a powerful weapon in the fight against inflation. The amendments concerning farm prices have greatly \ '|| weakened the bill, but there is no reason to be discouraged before the bill has actually become law. It is now before the House and it must yet pass through the Senate, and in both houses there is a growing desire to make the bill the most effective instrument possible. Certainly a determined effort will be made to see that the bill as it finally reaches the P r e s i d e n t s desk shall be a brake upon the rising cost of living i and shall furnish some reassurance to the American consuming publi c . No one of these methods — taxation, savings, economy, or price control can serve by itself to prevent inflation. Whatever we do must be compounded of many methods and cannot be limited to the obvious methods alone. We can all of us think of a number of less obvious devices which might furnish added checks upon inflation. One ' of these, for example, would be the increase of our productionj in fields that do not compete either in manpower or materials with production for defense. That means for one thing an in crease in the production of food, which is needed now not only for ourselves but for millions in England who are depending upon us, and will be needed on a tremendous scale after the , ! war when hundreds of millions on the Continent of Europe may be ' looking to us to keep them from starvation. Certainly we should never forget that millions of our own people are still underfed and underclothed. At a time like.this when purchasing power ! is outrunning production, we must cut down on civilian consump tion that would compete with defense, but we might also enlarge civilian consumption where no such competition for raw materials exists. -5with funds borrowed from banks, and their sale was often accompanied by all conceivable devices of high-pressure sales manship. The result was, first, that the Liberty Loans failed to a great extent to enlist, true savings, and second, that too many bonds were thrown on the market at a loss to the buyers after the emergency. We feel that the present method is sounder, in that we limit subscriptions to maturity value a year in the case of the E Bonds, and that we do not sell these bonds to banks at all. Even though we may continue to employ as a supplementary device more traditional financing methods, the widest possible distribution of Savings Bonds is urgently necessary for at least three reasons. First, it has an important effect on national morale in that it offers an opportunity for all citizens to participate in the common effort. Second, and most important, regular voluntary purchase of Savings Bonds withdraws money from consumption expenditure and thus relieves pressure on prices. Third, the savings thus created will be a powerful protec tive force against the danger of a post-war depression. The sale of these Defense Bonds can be greatly enlarged in the coming year. This, can be done by spreading the sale down to the smallest community and throughout every one of the ^6 States. We have only begun our efforts in this direction, I know that you in Connecticut have made a fine record up to now in the sale of Defense Bonds, yet I suspect that there are many communities, even in your compact State, which do not yet have an efficient local Defense Savings committee. Moreover, we shall not make a success of our Defense Savings program, either as a check upon inflation or a contribution to American morale, unless we make- a success of the payroll allotment plan whereby wage earners can set aside a portion of their pay each week to buy a bond. Our payroll allotment plan is now in operation in some 6,000 companies employing about 6 million workers, but the degree of participation is not yet what we should like it to be. If your plant happens to be organized, and if your workers express a desire through their union to join in the payroll allotment scheme, I hope very much that you as the managers will make facilities available in your cashier’s office or elsewhere in your plant. If your plant is not organized, you will be doing a great service to your workers and to your country by bringing the payroll allotment plan to their attention and making it possible for them to save on a systematic and regular basis. I have mentioned increased taxes and increased Defense Savings as two of the obvious ways to attack inflation. There if you, as the heads of corporations and the employers of thou sands upon thousands of highly paid working people, could help to distribute this folder and thus popularize the notion of saving for taxes. These folders are available at the Treasury ] and will be furnished to you gladly if you think you can use them to good effect. But the gap is growing so fast that $12 billions or even We shall, it seems apparent, have to tax still more heavily in the coming year. In this effort in which all the energies of this country are • engaged, all the people will have to bear an increased share except perhaps those at the very bottom of the ladder who are even now living on a subsistence, or nearly subsistence,, level. You will remember that exemptions were lowered in the present tax bill to $750 a year for a single man and $1500 for a married taxpayer. Before you reach the conclusion that these exemp tions should be still further lowered, I can only suggest that you put yourself in the place of the married man earning $30 a week with no investments to fall back upon, with a rising cost of living taking a share of his meager income every day. There is a point at which the least fortunate among us simply cannot be asked to do more. Nevertheless both price considerations and government fiscal considerations make imperative a new tax I program that will be as sweeping as possible, and as productive 1 of revenue as it can be made without creating severe hardships or dangerous disturbances of our economy. $15 billions in revenue will not close it. Along with heavier taxation we shall have to widen and deepen the sale of Defense Savings Bonds during the coming year. I think you all know about these Bonds and about the Savings Stamps which were issued so that those with the smallest amounts of spare income could invest in small installments. The sales of these Bonds are now approaching the $2 billion mark, only a little over six months after the Defense Savings program was launched. We at the Treasury regard this as a satisfactory beginning«, We are especially encouraged to find that October sales were more than i6 percent ahead of those for September, that the sales of the Series E Bonds, those of the smallest denominations, accounted for almost half of the October total, and that the sales of Savings Stamps rose by 20 percent in October over those of the preceding month. These are good signs, yet I would not be frank with you if I did not say that we must do a great deal better. 1 The solution most often pressed upon us by friends outside of Washington is to revive the old Liberty Loan methods of selling Government bonds. I think it may interest you to know j why we do not believe another Liberty Loan drive would be effective in the fight against inflation. Investment in Liberty Bonds, as you may remember, was unlimited as to amount; that is, a wealthy person with large amounts of idle capital could buy these Bonds to any extent and collect handsome interest on them. Moreover, many Liberty Bonds were purchased , 1 - 7 - Businessmen may make high profits in a time of inflation, but those profits are likely to prove in the end as unreal and unsub- ; stantial as a dream. .Farmers may earn high prices for their crops, but those high prices must always be balanced against the deflation and bankruptcy and misery that come with a price collapse. Labor may earn high wages in a time of inflation, yet the rising cost of living wipes out those gains, and in fact j may act as a flat tax upon all wages irrespective of the individual's capacity to pay. There is no real profit for anyone in the tempest of inflation except for those groups in any community, happily few in number, who try to exploit an abnormal situation fof their own gain. We can all agre$, therefore, that inflation is dangerous and should be avoided at all costs. But the question you may well ask, and the question you are amply entitled to ask, is what your Government proposes to do about it. I can assure you from my day-to-day work at the Treasury that no problem occupies more of the time and thought of those who direct the finance and fiscal policies of this country. What disturbs us particularly is the swiftly growing gap between the amount of purchasing power in the hands of our public and the dwindling supply of goods that can satisfy that demand. Accordingly, we at the Treasury must think, and think hard, how to narrow that gap, for that is one essential way to keep inflation in check. { To begin with, there are certain obvious courses. We have already seen enacted a tax bill which together with pre viously enacted legislation should provide .some $12 billions of revenue in the fiscal year 194-2 and a substantially greater amount in later years. This will constitute Federal taxation on a scale without precedent in the history of this republic. Millions who have never before had to pay taxes will have to do so now, and millions more will feel the added impact of this tax burden in heavier excise taxes on many commodities in daily use. It is not enough to impose new taxes; it is the particular job of the Treasury to collect them. In this connection I should like to stress the importance of the new Tax Savings J Notes which were first issued in August to enable taxpayers to save by installments for the tax payments that will become due on March 15 . The corporations of America have been quick to see the advantages to themselves of buying large amounts of these notes and earning the interest that goes with them. But more can be done to acquaint individual taxpayers with the advantages of saving systematically and regularly to meet their tax bills. In an effort to reach the individual taxpayer, the Treasury recently prepared a folder called "Know Your Taxes" ^ which shows at a glance just how much every taxpayer will have to pay under the 1.94-1 Revenue Act. It would be a real service have "been and will be achieved through the willing devotion — not of industry, for so impersonal a word has no meaning in this connection —— but of the men from top to bottom, management to so-called common laborer) who make industry work. It is so with this problem of inflation, about which, principally, I planned to talk with you today. If we are to take effective steps to avert its evils we shall have to have more than decisions of government fiscal policy or acts of Congress. ^First, we shall need counsel in working out a wise policy, and next we shall need understanding and cooperation in making it effective. What we are facing is not the sort of inflation that arises from purely monetary causes and is the result of distrust of the national currency. It isn't necessary, therefore, to conjure up visions of a dollar dwindling toward the vanishing point in purchasing power, with the printing presses working overtime to turn out an ever-increasing supply of currency in ever—higher denominations. We are not in the slightest danger of that sort of inflation. The kind of inflation of which we do stand in imminent danger is something quite different. It is, in briefest terms, the sort of inflation which consists of a rapid and substantial general increase in prices caused by a great increase in money payments a.nd therefore in purchasing pox^er, accompanied by a lack of increase or an actual decrease in the production of consumer goods — - in short, too many buyers and too many dollars In the market and too few goods to be sold. The beginnings of that sort of an inflation are already under way. Wholesale prices of general commodities have increased approximately 15 percent since the first of this year; that is from 2>0 on an index of which the average of the year 1926 is 100, to approximately 92 in October. The fact that the commodity index is still below the average for any year from 1917 to 1929 is not nearly so significant as the rapidity of its rise in the last ten months, and even more striking and sig nificant is the increase in the same time of about 30 percent in the prices of 2<3 oasic commodities. These increases are at a rate which suggests the pattern at least of the early stages of the great price upheaval of 1915 to 1921 , when wholesale prices went from an index level of 6$ in September, 1915 , to 166 in June, 1920, and then dropped in just one year to § 3 . That was a period in which the cost of living was doubled. There is no need to tell a great audience of businessmen of the ruinous consequences of inflation. You manufacturers of Connecticut are only too well aware of the disorganization of business, of the dislocation in every phase of economic life, which accompany and follow an unrestrained rise in prices. í5ote& f l . ^ TREASURY DEPARTMENT Washington " m ° fa € TLi^JLeu* y fs / 9 V i ^ Press Service ^ No. ston ore >the /annual ■'"tfT^onfectiVut l/ew fiáuen Connect ipuí, ii -GU [mIr East er'n'St~a.ni d Time,Vvfe'dnesd¿ releal and is {The following a M r e s s by Herbert Assista^t^^ecretary / o f \ h e TreafiuW, b meet ins'of r£S\Kanuraethers /ssoepati at^bhe Nfew /Have] scheduled^ for i" November I£, 19W that timer) I .bring youuhe greetings of Secretary Morgenoiau and his thanks as well as mjNown for the opportunity to speak to you. In this hour wheh the best of your energies, your brains and your skill are being, devoted to building and to testing the machines and the materials needed to make secure our heritage of freedom, our political'and economic institutions are them selves on the proving ground. While we are t/sting ships and guns, tanks and planes, we asa testing also c/ur ability as a nation and a people to coordinate our effort/ toward a great goal, our ability to produce, our abxsLity to organize to prevent economic anarchy or disaster. In your desire to have a representative of the Secretary of the Treasury talk to you I see s^eth/ng of much deeper sig nificance than a purpose merely to have M speech made to you or even to be entertained or instructed. \ t see in it the charac teristic impulse of men who have grown/to manhood and have lived in the free air of our democracy to dyawVcloser to their political government in a time of anmetyXana stress. I think it is a sound impulse and one that snows t\e health and vigor of our system. There has been demonstratedynere in ourNland, as nowhere else at any time, the capacity for self-governn^ent. An inherent part of that demonstrated capacity is the accepted tradition and fact that there is no probl/m of government Miich is the exclusive concern of any officer of government, bVt that all problems, whether of routine or of emergency, whether of law, of policy or of administration. Are the common problem^ of all citizens, on which their voi/es should be heard and \o whose solution their acts must giy e effect. It is so with the piroblem of production of the materials of defense. The fiat of yCongress and the Executive, th\ appropriation of vast sums of money, the calculations ana the requisitions of military and naval experts, the over-all planning by government agencies none of these will produce the fyools, the guns, the ships ana the airplanes we need. The great Results we have gained so far jand the far greater production to come 14 T h e y are w i l l i n g to pa y w h a t must be p a i d — and ' to f orego al l -Stas© t h i n g s n e e d e d fo r o u r a r m e d forces. W i t h o u t m u c h f l a g w a v i n g but w i t h a grim, a p p r a i s a l of the job t h a t lies ahead, realistic t h e y a w a i t the l e a d e r s h i p of t h e A d m i n i s t r a t i o n a n d of the C o n g r e s s to tell t h e m w h a t t h e y m u s t do to save A m e r i c a . r That ! t h e y w i l l do. W e ar e g o i n g to w i n t h i s w a r . quickly; île h a v e we can't win the r e s o urces, fa r g r e a t e r it easily, the m e n and i m p o rtance w e h a v e W e c a n ’t w i n but win it w e shall, the m a c h i n e s . to rubber, in the P a c i f i c , tin, f o r o u r goods, and h e m p k Of the d e t e r m i n a t i o n # f b r w e a l l r e a l i z e that w e are f i g h t i n g f o r m o r e f e w is l a n d s it than a f o r m o r e than free access r o r m o r e t h a n free m a r k e t s or the m a i n t e n a n c e of o u r s t a n d a r d of l i v i n g . 2. O u r stake is f r e e d o m itself — equality and opportunity, to e x p a n d a n d d e v e l o p — ind i v i d u a l the r i g h t of t h e hu m a n soul the d i g n i t y of man. Then when we have won this war, — G o d g r a n t that u n d e r A m e r i c a ' s u n s e l f i s h l e a d e r s h i p the w o r l d m a y be led a l o n g the p a t h of p e r m a n e n t p eace. T h a t is A m e r i c a ' s d e s t i n y . To To that, T h a t is our task. i t h i s n a t i o n is pledged I that, w e d e d i c a t e o u r s e l v e s . ! i 13 before the c r e e p i n g p a r a l y s i s of Inflation. H o w can j he b u d g e t hi s r e s o u r c e s w h e n he d o e s not k n o w h o w much he m u s t sp e n d fo r eggs today, eggs the d a y after, for eggs tomorrow, f o r butter, for for bread? T a x s a c r i f i c e s ar e a c c o m p a n i e d b y an u n d e r s t a n d i n g of the c o n t r i b u t i o n that that on e the Is b e i n g ma d e , Is d o i n g o n e ' s part s a c r i f i c e s of In a b i t t e r struggle. But b y the h e l p l e s s n e s s a n d the hopelessnei t h a t come w i t h t r y i n g to f i g h t the h o w far ar e w e w i l l i n g Inflation? a realization In f l a t i o n are a c c o m p a n i e d o n l y by the fear of uncertainty, a l l this, by I n v i sible. Knowing j to go to p r e v e n t H o w d e e p l y sh a l l w e a s k the s u r g e o n to cut to free us of this m a l i g n a n t g r o w t h ? T h e w i l l i n g n e s s of the A m e r i c a n p e o p l e to submit to s u b s t a n t i a l l y h i g h e r ta x e s Is a t t e s t e d on al l sides. The taxes w h i c h h a v e b e e n a n d w i l l be I m p o s e d u p o n the American people have been I m p o s e d a n d w i l l be v o t e d by the d u l y e l e c t e d r e p r e s e n t a t i v e s o f the A m e r i c a n people, The p e o p l e of A m e r i c a k n o w y o u c a n n o t p l a c e a price tag on the f r e e d o m of spe e c h . T h e y k n o w that no s u m is too g r e a t to p a y f o r f r e e d o m of w o r s h i p . T h e y k n o w that freedom from w a n t and freedom from fear are beyond evaluation. j 12 letter-Jl.This w e / \ shall do ¿by i n c r e a s e d t a x a t i o n a n d t h r o u g h the sale of D e f e n s e B o n d s Now I r e a l i z e t h a t no one r e a l l y e n j o y s p a y i n g increased t a x e s • But w h a t is the a l t e r n a t i v e ? During the last tw e l v e m o n t h s the cost of li v i n g h a s risen m o r e than 10 p e r c e n t . w o r k e r s of F o r t h e gr e a t m a j o r i t y of the this c o u n t r y that w a s e x a c t l y the same as t h o u g h there h a d been a g r o s s p a y r o l l tax of 10 percent. Y e t the h u g e s u m s u c h a tax w o u l d h a v e y i e l d e d has v a n i s h e d in t h e b o u g h t one tank, thin a i r of i n f l a t i o n -- one truck, it has n o t o r o n e revolver. | Though c r u e l l y h u r t i n g the w a g e e a r n e r it ha s n o t n e t t e d the T r e a s u r y one d o l l a r / fo r t h e h i g h e r p r i c e s h a v e materially I n c r e a s e d the c o s t of a l l those t hings the G o v e r n m e n t m u s t buy. H a v i n g U n c l e S a m as a p a r t n e r J n c h e c k o r the w a g e e n v e l o p e s h a r i n g the salary is f a r b e t t e r than h a v i n g the s p e c t r e of i n f l a t i o n as a g u e s t a t the d i n n e r table. ! T a x i n c r e a s e s are m a n a g e a b l e b y b o t h G o v e r n m e n t and taxpayer. E a c h can see w h a t is h a p p e n i n g . The taxpayer \ can b u d g e t his r e s o u r c e s a n d p l a n hi s s p e n d i n g w i t h a r e a s o n a b l e d e g r e e of c e r t a i n t y . But h e is defenseless - H To a p p r o a c h — j b u t n o t to r e a c h — be the m a j o r o b j e c t i v e of th e t h a t p o i n t s hould i C o n g r e s s in the ne x t I r e v e n u e bill. < B u t th e r e ar e o t h e r c o l l a t e r a l o b j e c t i v e s . This r e v e n u e b i l l s h o u l d s e e k to p r e s e r v e m o r a l e b y d i strib u tiiig th e ta x bu rd en e q u ita b ly a n d T ilth e v e r y ^ regard - .... ...... .......... ..— fo r the a b i l i t y to pay. it s h o u l d w h e r e v e r pos s i b l e audujjherever»needed e n c o u r a g e the d i v e r s i o n of materials, equipmentandskilled A n d ab o v e all, l a b o r f r o m c i v i l i a n to w a r production, it m u s t be so d e v i s e d that as a f o r m i d a b l e w e a p o n to combat it w i l l serve j inf l a t i o n . ,1 a m i n c l i n e d to d o u b t that the a v e r a g e p e r s o n in this c o u n t r y is y e t a w a r e of t h e i m m i n e n t t h r e a t of Gj i n f l a t i o n or the h a v o c it c r e ates. C a u s e d b y an increase in the n a t i o n a l p u r c h a s i n g p o w e r at th e v e r y time when our war effort requires us to r e d u c e the p r o d u c t i o n of g o o d s for c i v i l i a n c o n s u m p t i o n , the cost of l iving it m u s t i n e v i t a b l y start in an u p w a r d s piral u n l e s s w e the p r o d u c t i o n of c i v i l i a n goods, people's excess purchasing power. can increaa o r a b s o r b some of the S i n c e w e c a n n o t do the f o r m e r w i t h o u t h a r m to o u r w a r e f f o r t w e m u s t do the \ 10 a p p r o a c h the l a r g e s t n a t i o n a l t h e w o r l d ha s ever ach i e v e d , Income a n y c o u n t r y In It w o u l d be f o l l y not to t a k e a l a r g e r share of t h a t Income indeed to p a y o u r bills. The A m e r i c a n p e o p l e k n o w w h a t Is at stake today, a n d t h e y k n o w that no p r i c e can be too h i g h fo r those p r e c i o u s f r e e d o m s w e are d e f e n d i n g . T h e y k n o w that If w e a r e to p r e s e r v e ou r A m e r i c a n s y s t e m w e sh a l l p a y for e v e r y last g u n an d p l a n e dollar. know, too, 100 c e n t s on the that every dollar paid They In t a x e s this y e a r sa v e s at le a s t a n o t h e r d o l l a r In I n t e r e s t ch a r g e s over the n e x t 5 0 y e a r s , that — f o r t h e y l e a r n e d in the I n t erest co s t s w i l l expenditures. So, too, last w a r In time e q u a l th e o r i g i n a l do t h e y k n o w t h a t taxes are the o n l y s o u r c e of r e v e n u e of o u r Government, — the o n l y m e a n s of p a y i n g fo r w h a t w e b u y or of r e p a y i n g the m o n e y w e borro?/. O b v i o u s l y in taxes) there w e c a n n o t go w i t h o u t deadening dulling corporate management, is a p o i n t b e y o n d w h i c h Individual Initiative, e n c o u r a g i n g ext r a v a g e n c e an d I n e f f i c i e n c y a n d thus n o t o n l y r e t a r d i n g ou r w a r e f f o r t b u t k i l l i n g th e goose that lays the g o l d e n egg. 9 F o r the f i s c a l y e a r 1 9 4 3 ~ the y e a r d u r i n g w hich w e a n t i c i p a t e e x i s t i n g taxes to y i e l d $1 8 b i l l i o n — A w e e x p e c t to s p e n d on the w a r a l o n e $ 5 6 b i l l i o n . This w i l l e x c e e d t h e to t a l F e d e r a l e x p e n d i t u r e s fo r all purposes during the s i x years- f r o m 1 9 3 5 t h r o u g h 1940. Th e n e e d to p a y as w e go this expenditure resulted for a l a r g e r p r o p o r t i o n of in the r e c o m m e n d a t i o n of the A P r e s i d e n t that a d d i t i o n a l taxes a n d S o c i a l S e c u r i t y c o n t r i b u t i o n s be l e v i e d to y i e l d $9 b i l l i o n m o r e a year. B e t t e r than w o r d s do these f i g u r e s d e s c r i b e a w a i t i n g th e Con g r e s s . the task ^ tU T h e r o l e of t a x p o l i c y d u r i n g this p e r i o d is to b e c o m e the s e r v a n t of the w a r effort. T h i s w a r is b e i n g f o u g h t Aw l t h me n a n d m a c h i n e s , w i t h a i r p l a n e s a n d ships, w i t h guns a n d tanks,;. — ( not with t a x e s A not w i t h dollars, g o o d f i s c a l p o l i c y a l o n e c annot win this w a r no m a t t e r h o w m a n y d o l l a r s Treasury. war, A p o o r f i s c a l policy, it b r i n g s into the h o w ever, can lose this o r cause w a n t a n d m i s e r y a f t e r t h e v i c t o r y . T h e p r i m a r y p u r p o s e of n e w taxes is to raiserevenue, to m e e t a l a r g e r p r o p o r t i o n of o u r c u r r e n t expenditures w i t h c u r r e n t receipts, an d thus to r e d u c e the a mount of b o r r o w i n g that w o u l d o t h e r w i s e be r e q u i r e d . As we - 8 - F i n a n c e C o m m i t t e e s a n d the C o n g r e s s . T r u l y do/ th e y vindicate Democracy. The m a g n i t u d e of the t a s k these two C o m m i t t e e s and the C o n g r e s s n o w face is u n p a r a l l e l l e d . v i e w It in its p r o p e r p r o p o r t i o n s m a y That you may I give y o u some r e c e n t f i s c a l history: In the y e a r 1940, 7 , 6 0 0 , 0 0 0 income r e t u r n s w e r e filed. tax In the y e a r 1941, 1 5 , 2 0 0 , 0 0 0 Income ta x r e t u r n s w e r e filed. In the y e a r 1942, 2 2 , 0 0 0 , 0 0 0 Income tax r e t u r n s w i l l be filed. In the f iscal y e a r 1940, the t o t a l gr o s s tax yield was $5,303,000,000. In the f i s c a l y e a r 1941, the total g r o s s tax yield was $7,361,000,000. In the f i s c a l y e a r 1942, the t o t a l g r o s s t a x y i e l d is e x p e c t e d to r e a c h $12,200,000,000. In the f i s c a l y e a r 1943, on the b a s i s of p r e s e n t law, w e a n t i c i p a t e a y i e l d of $17,261,000,000. T h u s f r o m 1 9 4 0 to 1 9 4 3 not o n l y h a v e o u r t a x receipts b e e n trebled, but the n u m b e r of f i l e r s ha s al s o been t r e b l e d . individual B u t are these collections a d e q u a t e f o r the t a s k w e n o w f a c e ? a r e not. income tax U n f o r t u n a t e l y they I - 7 batteries of newsreel cameras and While scores of r eporters. the c a m e r a s g r i n d a n d the J o u r n a l i s t s scr i b b l e out t o m o r r o w ’s h e a d l i n e s , it is q u i t e n a t u r a l that the n o n - a d m i n i s t r a t i o n m e m b e r s s h o u l d go a f t e r the witnesses on a p a r t i s a n basis, — t h o u g h no m o r e p a r t i s a n than the m a n n e r in w h i c h the a d m i n i s t r a t i o n m e m b e r s r u s h to the defense of their administration. «X* ~ k- X The p u b l i c h e a r i n g s end, ~ a n & th e C o m m i t t e e s go into E x e c u t i v e S e s s i o n s . C o a t s come off, s l e e v e s are r o l l e d u p a n d the C o m m i t t e e m e m b e r s g e t d o w n to work, n o t as 15 D e m o c r a t s a n d 10 R e p u b l i c a n s , conscientious public servants. b u t as 2 5 sincere, I h a v e y e t to see but k one p a r t i s a n v o t e b y e i t h e r c o m m i t t e e . I have never k n o w n a n y g r o u p in p r i v a t e i n d u s t r y to w o r k as intensely o r as l o n g h o u r s as th e s e two c o m m i t t e e s . T h e s e e x e c u t i v e s e s s i o n s l a s t for w e e k s an d even temporary absence is a rarity. I can t e s t i f y to thè *->'-*-*i> h o m e w o r k the c o m m i t t e e m e m b e r s do a t n i g h t .b e c a u s e o f the n u m b e r of ca l l s I ge t t h r o u g h *the e v e ning, a s k i n g for additional i n f o r m a t i o n on some s u b j e c t d i s c u s s e d d u r i n g the day. S u r e l y the A m e r i c a n t a x p a y e r is safe in the hands of the H o u s e W a y s a n d M e a n s gwimrfrfcir a n d the S e n a t e L, - 6 - Under the Constitution Federal Taxes can originate in one place and in one place only, — the House of Representatives.“ As the Department charged with the administration and collection of taxes,' the Treasury is called to cpnsult with and to advise the Congress \When requested,^the Treasury make# recommendations^ important Issues the Treasury presses its views. the Treasury never, never writes a tax hill. On But The Congress does that. It might he well at this time, when the democratic processes are under fire^for me to tell you a hit about how this works out. I douht very much If the average American citizen has any appreciation of how long and how hard the Congress works on our tax problems. Xvt iU. bf'+- IrM t #4% -A tax bill^originates In the House Ways and Means Committee*, when the Secretary of the Treasury and his fiscal assistants are invited to appear at a public hearing to submit such proposals and observations as they deem worthy of Congressional consideration. hearings, — These and the later hearings before the Senate Finance Committee," are largely attended and widely publicized^ Usually at the opening session there are - 5 - heritage. M u c h is a t stake, f o r y o u r e p r e s e n t the v a l u e s of l i v i n g D e m o c r a c y . I h a v e b e e n a s k e d to s p e a k t o n i g h t on the role of F e d e r a l T a x a t i o n in th i s time o f w a r . I do u b t if in a n y f i e l d of l e g i s l a t i o n D e m o c r a c y is b e t t e r e x e m p l i f i e d t h a n in tax a t i o n . In some q u a r t e r s there a p p e a r s to be a f e e l i n g t h a t F e d e r a l t a x e s are a vile type of o p p r e s s i o n , b r e w e d b y the T r e a s u r y a l c h e m i s t s d u r i n g the d a r k o f the m oon, a n d f o r c e d t h r o u g h Congress upon a reluctant populace. H a v i n g c h a p e r o n e d five tax b i l l s t h r o u g h the C o n g r e s s , I can t e l l y o u that n o t h i n g c o u l d be f u r t h e r f r o m the truth. Long before this R e p u b l i c w a s b o r n w e h a d set ideas about taxation without representation. t h r e a t has l o n g since d i s a p p e a r e d , remains, T h o u g h su c h a the h o s t i l i t y to it a n d t o d a y in A m e r i c a taxes a r e i m p o s e d u p o n t h e p e o p l e b y the p e o p l e t h e m s e l v e s , w h o a c t i n g through th e i r ow n r e p r e s e n t a t i v e s d e t e r m i n e w h a t b u r d e n they s h a l l a s s u m e for the n a t i o n a l g o o d . % P r o b a b l y in no p h a s e of a n y t y p e of G o v e r n m e n t in the w o r l d t o d a y does Government depend more directly upon the c o n s e n t of the g o v e r n e d than in the f i e l d of A m e r i c a n F e d e r a l taxes. - 4 t h r o u g h r e s t r i c t i o n s t h e y impose u p o n t h e m s e l v e s l In the d e l i b e r a t i o n s of the G e n e r a l A s s e m b l y , m e m b e r s are free a n d e q u a l agents; speak, the fr e e to think, a c t a n d v o t e as t h e y c h o o s e — a n s w e r a b l e only to t h e i r c o n s t i t u e n t s a n d to t h e i r own c o n s c i e n c e s * W e w h o h a v e so l o n g t a k e n to fo r g e t h o w m u c h this f o r g r a n t e d are apt this m e a n s to us, u n t i l w e stop -- / to r e m e m b e r the l i b e r t y lost a n d the f r e e d o m strangles in the l a s t three y e a r s Poland, Denmark, Norway, France, Bulgaria, in A u s t r i a , Luxembourg, Yugoslavia, Czechoslovakia," Holland, Belgium, A l b a n i a a n d Greece. S u r e l y n o w is the time fo r A m e r i c a ’s t o r c h of l i b e r t y a n d f r e e d o m to b u m b r i g h t l y to s h o w to the o p p r e s s e d p e o p l e s o f the w o r l d the p a t h b a c k to Freedom, This Democracy, and enlightened civilization. is the t i m e f o r D e m o c r a c y a n d for you, representatives, its to d o ev e n b e t t e r than y o u r best. Y o u s u c c e e d m e n w h o h a v e set a s t a n d a r d for y o u an d I w i s h to c o n g r a t u l a t e G o v e r n o r P r i c e a n d his associates upon their fine administration, a n d I w i s h to e x t e n d to G o v e r n o n - E l e c t D a r d e n a n d to y o u h i s col l e a g u e s , best w i s h e s f o r a n a d m i n i s t r a t i o n w o r t h y of V i r g i n i a ’s rich - 3 y e a r s a s a m e m b e r of ttity'ViTglwla Senate, House of Representatives, the N a t i o n a l as S e c r e t a r y of the Treasury, a n d as a m e m b e r of the U n i t e d S t a t e s S e n a t e , he h a s d e v o t e d h i m s e l f to the s e r v i c e of h i s c o u ntry. His a c c o m p l i s h m e n t s c h a l l e n g e the r e c o r d s of h i s c o n t e m poraries. A s the f a t h e r of the F e d e r a l R e s e r v e System, h e b r o u g h t s t a b i l i t y to c o m m e r c e a n d to p r i v a t e banking, a n d w o n f o r the n a t i o n f i s c a l s e c u r i t y . . H e ' s a thinker, a n d h e ' s a f i g h t e r too. A s s u c h he is r e s p e c t e d , a p p r e c i a t e d a n d l o v e d t h r o u g h o u t the land. w a s b o r n in L y n c h b u r g , Virginians, T h o u g h he a n d h a s a l w a y s b e e n e l e c t e d by I s a y he b e l o n g s to a l l A m e r i c a . A m e r i c a ' s S e n a t o r at Large, It is a g r e a t p r i v i l e g e H e is -- C a r t e r Glass. for m e tonight on this particular occasion. to be h e r e w i t h you H e r e w i t h u s are g a t h e r e d the r e c e n t l y e l e c t e d m e m b e r s of the G e n e r a l A s s e m b l y , w h o «as»#ediiasday, a s free r e p r e s e n t a t i v e s of a free pe o p l e , m e e t to c o n s t r u c t the f r a m ework of r e s t r i c t i o n s w i t h i n w h i c h t h e m e n a n d w o m e n of V i r g i n i a can conduct themselves be free. In h o w v e r y f e w p l a c e s in w a r time a n d still in the w o r l d a r e people n o w a l l o w e d to r e g u l a t e a n d to r e s t r a i n t h e m s e l v e s - 2 - o u t s t a n d i n g l e a d e r in the H o u s e of R e p r e s e n t a t i v e s , n e v e r falls to ex e r t h i s v e r y c o n s i d e r a b l e t o w a r d the a c c o m p l i s h m e n t o f inf l u e n c e those o b j e c t i v e s w h i c h w i s d o m a n d v i s i o n i n d i c a t e are f o r the g o o d of the nation. Congressman Robertson, House W a y s and Means Committee, a l e a d i n g m e m b e r of the has p r o v e d inv a l u a b l e in h e l p i n g to s o l v e s o m e of the G o v e r n m e n t s m o s t trying problems. To the U n i t e d S t a t e s S e n a t e V i r g i n i a h a s sent two sta t e s m e n , H a r r y B y r d ha s set a s t a n d a r d for frankness, i n t e l l e c t u a l h o n e s t y a n d c o u r a g e that is so n e e d e d in t h e s e t r y i n g days. Senate, his H i s e a r l y e x p e r i e n c e in the Virginia f o u r y e a r s as G o v e r n o r of this Commonwealth, a n d h i s n i n e y e a r s as a m e m b e r of the U n i t e d S t a t e s S e nate, h a v e g i v e n to his i n q u i r i n g m i n d o p p o r t u n i t i e s for i n t i m a t e k n o w l e d g e of the d e t a i l e d a f f a i r s of Government, H i s a c c e p t a n c e o f t h o s e o p p o r t u n i t i e s has m a d e h i m one o f the S e n a t e * s a b l e s t m e m b e r s . V i r g i n i a c l a i m s a n o t h e r m e m b e r of the S e nate, but a l t h o u g h he h a s a l w a y s a b l y r e p r e s e n t e d the interests of h i s o w n C o m m o n w e a l t h a n d o f h i s o w n c o n s t i t u e n t s , c h a l l e n g e V i r g i n i a ’s c l a i m u p o n him. Fo r the last I I J w "0 , I a m m o s t g r a t e f u l f o r the o p p o r t u n i t y given me to m e e t t o n i g h t w i t h t h i s d i s t i n g u i s h e d * g r o u p of th e l e a d e r s of V i r g i n i a . Virginia, A v i s i t to the h o m e of the P r e s i d e n t s a n d the s t a g e u p o n w h i c h m u c h of A m e r i c a 1s m o s t v i t a l early drama was enacted, is a l w a y s s t i m u l a t i n g . D u r i n g s u c h a p e r i o d as the p r e s e n t — when f r e e d o m t h r o u g h o u t the w o r l d is in d i r e Je o p a r d y — the m e m o r i e s o f w h a t V i r g i n i a has b e e n a n d w h a t V i r g i n i a n s h a v e w r o u g h t are t r u l y i n s p i r i n g . B u t the c o n t r i b u t i o n of this C o m m o n w e a l t h is n o t r e s t r i c t e d to the past, j f o r t o d a y a the sons o f V i r g i n i a a r e a d d i n g n e w g l o r i e s to y o u r history, a n d in the c o u n c i l s of the F e d e r a l Government t h e y m a i n t a i n the p r e s t i g e y o u r representatives have always enjoyed. Washington, Drewry, C o n g r e s s m e n Bland, Ha r r i s , Burch, W In Satterfield, S m i t h a n d F l a n n a g a n ha v e a g a i n and \ a g a i n d e m o n s t r a t e d t h e i r w o r t h i n e s s to c a r r y on your great traditions. Congressman Woodrum, an IE TREASURY DEPARTMENT Washington FOR RELEASE, MORNING- NEWSPAPERS Tuesday, January 20, 19*12, Press Service No. 29-71 (The following address by Assistant Secretary of the Treasury John L. Sullivan before the biennial dinner for the incoming General Assembly of Virginia at the John Marshall Hotel, Richmond, Virginia, is scheduled for g p»jn,t Eastern Standard Time, Monday, January 19» 19*12, and is for release upon delivery at that time. ) It is a great privilege for me to be here with you to night on this particular occasion. Here with us are gathered the recently elected members of the General Assembly, who on Wednesday, as free representatives of free people, will meet to construct the framework of restrictions within which the men and women of Virginia can conduct themselves in war time and still be free. In how very few places in the world are people now allowed to regulate and to restrain themselves through restrictions they impose upon themselves,! In the de liberations of the G-eneral Assembly, the members are free and equal agents; free to think, speak, act and vote as they choose answerable only to their constituents and to their own con sciences. We who have so long taken this for granted are apt to forget how much this means to us, until we stop to remember the liberty lost and the freedom strangled in the last three years in Austria, Czechoslovakia, Poland, Denmark, Norway, Luxembourg, Holland, Belgium, France, Bulgaria, Yugoslavia, Albania and Greece. Surely now is the time for A m e r i c a ^ torch of liberty and freedom to burn brightly to show to the oppressed peoples of the world the path back to Freedom, Democracy, and enlightened civilization. This is the time for Democracy and for you, its representatives, to do even better than your best. You succeed men who have set a standard for you. I wish to congratulate Governor Price and his associates upon their fine administra tion,' and I extend to Governor-Elect Darden and to you his colleagues best wishes for an administration worthy of Vir g i n i a ^ rich heritage. Much is at stake, for you represent the values of living Democracy. I have been asked to speak tonight on the role of Federal Taxation in this time of war. I doubt if in any field of leg islation Democracy is better exemplified than in taxation. In some quarters there appears to be a feeling that Federal taxes are a vile type of oppression, brewed by the Treasury alchem ists during the dark of the moon, and forced through Congress upon a reluctant populace. Having chaperoned five tax bills through the Congress, I can tell you that nothing could be further from the truth. 2Long before this Republic was born we had set Ideas about taxation without representation. Though such a threat has long since disappeared, the hostility to it remains, and to day in America taxes are Imposed upon the people by the people themselves, who acting through their own representatives deter mine what burden they shall assume for the national good. Probably in no phase of any type of Government in the world today does Government depend more directly upon the consent of the governed than in the field of American Federal taxes, un der the Constitution- Federal Taxes can originate in one place and in one place only,— >the House of Representatives. As the Department charged with the administration and collection of taxes, the Treasury is called upon to consult with and to ad vise the Congress, When requested,1 the Treasury makes recom mendations. On Important issues the Treasury presses its views. But the Treasury never, never writes a tax bill. The Congress does that. It toight be well at this time, when the democratic pro cesses are under fire for me to tell you a bit about how this works out. I doubt very much if the average American citizen has any appreciation of how long and how hard the Congress works on our tax problems. A tax bill originates in the House Ways and Means Committee, when the Secretary of the Treasury and his fiscal assistants are invited to appear at a public hearing to submit such propo sals and observations as they deem worthy of Congressional considération. These hearings,— and the later hearings b e f £ he Senate Finance Committee, are largely attended and widely pub licized. Usually at the opening session there are batteries of newsreel cameras and scores of reporters, while the cameras grind and the journalists scribble out tomorrow s head lines it is quite natural that the non-administration members should go after the witnesses on a partisan basis, though no more partisan than the manner in which the administration mem bers rush to the defense of their administration. The public hearings end, and the Committees go into Exec utive Sessions. Coats come off, sleeves a r e r o l l e d up and the Committee members get down to work, not as fifteen Democrats and ten Republicans, but as twenty-five sincere, conscientious public servants. I have yet to see but one partisan vote by either committee. I have never known any group in private industry to work as intensely or as long hours as these two committees. These executive sessions last for weeks ^nd even. temporary absence is a rarity. I can testify to the home work the committee members do at night because of the number of call I get through the evening, asking for additional information on some subject discussed during the day. Surely the American taxpayer is safe in the hands of the House Ways and Means and the Senate Finance Committees and the Congress, Truly do they vindicate Democracy. 3The magnitude of the task these two Committees and the Congress now face Is unparallelled. That you may view it in its proper proportions may I give you some recent fiscal history: In the year 1940, In the year 1941, In the year 1942, 7,600,000 income 15,200,000 income 22 ,000,000 income taxreturns were filed, taxreturns were filed, taxreturns will be filed. In the fiscal year 1940 the total gross yield was In the fiscal year 1941 the total gross yield was In the fiscal year 1942 the total gross yield is expected to reach In the fiscal year 1943 on the basis of present law we anticipate- a yield of tax | 5,303,000,000. tax § 7,361,000,000. tax $1 2 ,2 0 0 ,0 0 0 ,0 0 0 . *• $17,261,000,000. Thus from 1 9 ^ 0 to 19^3 n °t only have our tax receipts been trebled but the number of individual income tax filers has also been trebled. But are these collections adequate for the task we now face? Unfortunately they are not. For the fiscal year 19^3— the year during which we antici pate existing taxes to yield $13 billion— we expect to spend on the war alone $ 5 6 billion. This will exceed the total Federal expenditures for all purposes during the six years from 1 9 3 5 through 1 9 ^ 0 . The need to pay as we go for a larger proportion of this expenditure resulted in the recommendation of the Presi dent that additional taxes and Social Security contributions be levied to yield $9 billion more a year. Better than words do these figures describe the task awaiting the Congress. The role of tax policy during this period is to become the servant of the war effort. This war is being fought with men and machines, with airplanes and ships, with guns and tanks,— not with dollars, not with taxes. A good fiscal policy alone cannot win this war no matter how many dollars it brings into the Treasury, A poor fiscal policy, however, can lose this war, or cause want and misery after the victory. The primary purpose of new taxes is to raise revenue, to meet a larger proportion of our current expenditures with cur rent receipts, and thus to reduce the amount of borrowing that would otherwise be required. As we approach the largest nation al income any country in the world has ever achieved it would be folly indeed not to take a larger share of that income to pay our bills. The American people know what is at stake today, and they know that no price can be too high for those precious freedoms we are defending. They know that if we are to preserve our American system we shall pay for every last gun and plane 100 cents on the dollar. They know, too, that every dollar paid in taxes this year saves at least another dollar in interest charges over the next J>0 years— for they learned in the last war that interest costs will in time equal the original ex penditures. So too do they know that taxes are the only source of revenue of our government— the only means of paying for what we buy or of repaying the money we borrow. Obviously in taxes there is a point beyond which we can not go without deadening individual initiative, dulling cor porate management, encouraging extravagance and inefficiency and thus not only retarding our war effort but killing the goose that lays the golden egg, To approach— but not to reach— that point should be the major objective of the Congress in the next revenue bill. But there are other collateral objectives. This revenue bill should seek to preserve morale by distributing the tax burden equitably and with every regard for the ability to pay. It should wherever possible and wherever needed encourage the diversion of materials, equipment and skilled labor from civil ian to war production. And above all it must be so devised that it will serve as a formidable weapon to combat inflation. I am inclined to doubt that the average person in this country is yet aware of the imminent threat of inflation or the havoc it creates. Caused by an increase in the national purchasing power at the very time when our war effort requires us to reduce the production of goods for civilian consumption, it must inevitably start the cost of living in an upward spiral unless we can increase the production of civilian goods, or ab sorb some of the pe o p l e ’s excess purchasing power. Since we cannot do the former without harm to our war effort we must do the latter. This we shall do by increased taxation and through the sale of Defense Bonds. Now I realize that no one really enjoys paying increased taxes. But what is the alternative? During the last twelve months the cost of living has risen more than ten percent. For the great majority of the workers of this country that was exactly the same as though there had been a gross payroll tax of ten percent. Yet the huge sum such a tax would have yield ed has vanished in the thin air of inflation— it has not bought one tank, one truck, or one revolver. Though cruelly hurting the wage earner it has not netted the Treasury one dollar, for the higher prices have materially increased the cost of all those things the Government must buy. -5Havlng Uncle Sam as a partner in sharing the salary check;-or the wage envelope is far better than having the spectre of inflation as a guest at the dinner table. Tax Increases are manageable by both Government and taxpayer. Each can see what is happening. The taxpayer can budget his resources and plan his spending with a reasonable degree of certainty. But he is defenseless before the creeping paralysis of inflation. How can he budget his resources when he does not know how much he must spend for eggs today, for eggs tomor row, for eggs the day after, for butter, for bread? Tax sacrifices are accompanied by an understanding of the contribution that is being made, by a realization that one is doing o n e ’s part in a bitter struggle. But the sac rifices of inflation are accompanied only by the fear of un certainty, by the helplessness and the hopelessness that comes with trying to fight the invisible. Knowing all this, how far are we willing to go to prevent inflation? How deeply shall we ask the surgeon to cut to free us of this malignant growth? The willingness of the American people to submit to sub stantially higher taxes is attested on all sides. The taxes which have been and will be imposed upon the American people have been imposed and will be voted by the duly elected repre sentatives of the American people. The people of America know you cannot place a price tag on the freedom of speech. They know that no sum is too great to pay for freedom of wor ship. They know that freedom from want and freedom from fear are beyond evaluation. They are willing to pay what must be paid— and to forego all those things needed for our armed forces. Without much flag waving but with a grim, realistic appraisal of the job that lies ahead, they await the leadership of the Administra tion and of the Congress to tell them what they must do to save America. That they will do. We are going to win this war. We c&n’t win it quickly; we c a n ’t win it easily, but win it we shall. We have the re sources, the men and the machines. Of far greater importance we have the determination, for we all realize that we are fight ing for more than a few islands in the Pacific, for more than free access to rubber, tin, and hemp, for more than free mar kets for our goods, or the maintenance of our standard of living. Our stake is freedom itself— Individual equality and opportunity, the right of the human soul to expand and develop— the dignity of man. Then when we have won this war,— God grant that under Amer i c a ’s unselfish leadership the world may be led along the path of permanent peace. That is our task. That is America’s des tiny. To that, this nation is pledged. To that we dedicate ourselves. -OoO- TREASURY DEPARTMENT Washington FOR IMMEDIATE RELEASE, % a ^ i f . January IS. 1942. press Serrice 7 tm ' Secretary of the Treaenry l u n M M today announoed phe final subscription and allotment figure« with respect to the current offering of 2 percent Treasury Bonds of 1949-51. Subscription« and allotment« were divided among the several Federal Reserve Dis tricts and the Treasury as follows t Federal Reserve District______ Treasury Notes Series A-I9A2 3 Percent FFMC Bonds Boston Hew Toxic Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco Treasury Total I 29,451,500 272,205,600 10,500,500 13,900,400 7,121,500 1 ,595,300 8 6,159,900 106,143,000 21,766,600 7,118,700 6,931,900 512,800 32,839,800 3,556,000 4,084,900 6,389,600 932,400 7,775,300 -443.200 ♦204,659,100 38,172,800 7,917,200 1,337,000 11,553,600 2,079,900 9,038,600 . 783.900 *405,657,800 2-3/4 Percent FFMC Bonds RFC Notes Series R 8 2,135,800 64,021,000 6,417,700 1,452,600 2,863,400 733,400 6,398,300 1,293,100 2,009,600 2,388,700 524,100 5,537,100 „ 158.500 895,933,400 8 3,410,000 2 U , 549,000 5,189,000 7,856,000 2,825,000 2,130,000 32,439,000 2,534,000 2,806,000 4,669,000 751,000 1,421,000 . 10.000 1307,539,000 Federal Reserve District Total Subscrip tions Received (Allotted in full^ Boston Hew fork Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco Treasury Total $ U , 157,200 683,913,700 43.373.800 30,327,700 19.741.800 4 , 97M00 109,349,900 15,300,300 10,237,500 25,000,900 4,237,400 23 ,772,000 1000.600 *1,013,829,300 w 6 •TREASURY DEPARTMENT Washington FQKiBffiEDIATE RELEASE % Monday, January 19, 1,942, Press Service No. 29-72 The Secretary of the Treasury today announced the final sub scription and allotment figures with respect to the current offering of 2 percent Treasury Bonds of 1949-51. Subscriptions and allotments were divided among the several Federal Reserve Districts and the Treasury as follows: Federal Reserve District______ Treasury Notes ^42 Series A-19* Boston New Xork Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City • Dallas San Francisco Treasury Total $ 29,451,500 272,205,600 10,500,500 13,900,400 7,121,500 1,595,300 38,172,800 7,917,200 1,337,000 11,553,600 2,079,900 9,038,600 783,900 $405,657,800 3 Percent FFMC Bonds $ 6,159,900 106,143,000 21,766,600 7,118,700 6.931.900 512,800 32,839,800 3,556,000 4.084.900 6,389,600 932,400 7,775,300 448,200 $204,659,100 2—3/4 Percent FFMC Bonds RFC Notes Series R $ 2,135,800 64,021,000 6.417.700 1,452,600 2,863,400 733,400 6,398,300 1 ,2 9 3 ,10 0 2,009,600 2.388.700 524,100 5,537,100 158,500 $9 5 ,9 3 3 ,4 0 0 $ 3,410,000 241,549,000 5.189.000 7.856.000 2.825.000 2,130,000 32,439,000 2.534.000 2.806.000 4.669.000 751,000 1 .4 2 1.0 0 0 10,000 $307,589,000 Federal Reserve District Total Subscrip— tions Received (Allotted in full) Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco Treasury Total I 41,157,200 683,910,700 43.873.000 30,327,700 19,741,800 4,971,500 109,849,900 15,300,300 10,237,500 25,000,900 4,287,400 23.772.000 1 . 400.600 $1,013,839,300 -OoO- 3 month's coinage was $1 1 ,6 0 3 ,0 2 0 .1 0 .The total number of pieces for the month was 2^7,152,^-92. Increased demands from business for coins results not only from the defense expansion in trade,but stems also from increased popularity of vending machines/ and application of state sales taxes and federal admissions, excise and other * levies, Mrs. Ross said* £ In addition to domestic coinage, the Mints turned out during 394-1 more than M 2 0 $,0 0 0 ,0 0 0 pieces for other governments.The largest order was from ^Netherlands East Indies *0*Other countries for which coins were stamped include Curacao, Dominican Republic, Liberia^ and Surinam. During the twelve months, the United States Mint at Philadelphia produced 1 ,36$,6$4,076 domestic coins worth |6 $,410,760.45; the United States Mint at San Francisco coine4 203,073,000 pieces worth $15,473,$50; and the United States Mint at Denver turned out 255,729,200 coins worth $1$, 324,900. "fJL& The San Francisco mint also produced^bulk of the foreign coinage. / T T) -Ko. ^ United States Mints, working "around the clock" to meet J n e tt#£ set new d e m a n d s for coins a r i s i n g fro m the nation'SSpOTsiness, set new all-time records in production during 194*1. Mrs. Nellie Tayloe Ross, director of the Mint, today said the month of December also set a new record^to climax the unprecedented operations for the calendar year. The 194-1 production of domestic coins included 4*3,553,512 half-dollars, 111,64-2,067 quarters, and 2 6 3 ,5 3 0 , 5 5 7 dimes. The value of the silver coins produced was $76,120,4-63,4-5. Minor coins turned out during the year included 3 0 0 ,1 6 0 ,7 2 0 nickels and 1,105,099,100 one-cent pieces, for a total of 1,4-05,259,520 minor pieces. The total number of coins stamped reached 1,62?, 4-66,2 7 6 ^?or a total value of $102,209,510.4-5. These figures compare# with 1,209,4-76,962 coins worth $5 0 ,1 5 7 ,6 5 0 . 3 2 in 194-0, the previous record. Sharp increases in coinage of the larger pieces boosted the value of the 194-1 output more sharply thafc comparison of figures on pieces struck for the two years would suggest» The 1939 figures were 674-,0 6 9 , 1 0 5 pieces worth $35,269,l69.^0* December 194-1 production consisted of 3,222,14*3 half dollars, 15,266,4-16 quarter8 ,3 0 ,5 3 5 , 6 3 1 dimes, 26,500,000 nickels,and 1 6 9 ,6 2 6 , 1 0 0 pennies. Total value of the TREASURY. DEPARTMENT Washington FOR RELEASE, AFTERNOON NEWSPAPERS, Tuesday, January 20, 19^-2. Press Service No. 29-73 United States Mints, working ‘'around the clock" to meet demands for coins arising from the nation's increased business, set new all-time records in production during 1 9 ^1 . Mrs. Nellie Tayloe Ross, Director of the Mint, today said the month of Decemoer also set a new record to climax the un precedented operations for the calendar year. The 19^1 production of domestic coins included ^3>553>&L2 half-dollars, 111,2^2,027 quarters, and 2 6 3 ,$30,557 ^ mes* The value of the silver coins produced was $76,120,423.^5* Minor coins turned out during the year included 3 0 0 ,1 6 0 ,720 nickels and 1 ,1 0 2 ,0 9 9 ) 1 0 0 one-cent pieces, for a total of 1 ,*K)2,259; $ 2 0 minor pieces. The total number of coins stamped reached 1 ,2 2 7 ,^2 6 ,2 7 6 , for a total value of $1 0 2 ,2 0 9 ,5 1 0 .^5 . These figures compare with 1 ,209,^7 % * $5 0 ,1 5 7 >$5 0 . 3 2 in 1 9 ^0 , the previous record. coins worth Sharp increases in coinage of the larger pieces boosted the value of the 1 9 ^ 1 output more sharply than comparison of fig ures on pieces struck for the two years would suggest. The 1939 figures were 67^,029,105 pieces worth $3 2 ,2 2 9 ,l6 9 .$0 . December 19^1 production consisted of 3*222,1^3 dollars, quarters, 3 °,5 3 5 > & 3 1 dimes, 2 2 ,5 0 0 , 0 0 0 nickels, and 1 6 9 ,6 2 6 , 1 0 0 pennies. Total value of the month's coinage was $1 1 ,6 0 *^,0 2 0 .1 0 . The total number of pieces for the month was 1 5 ,2 6 $,Hig ^, ,^ . 2 7 152 92 Increased demands from business for coins from the defense expansion in trade, but stems popularity of vending machines and application taxes and Federal admissions, excise and other said. results not only also from increased of State sales levies, Mrs. Ross In addition to domestic coinage, the Mints turned out during 19^1 more than 2 0 2 ,0 0 0 , 0 0 0 pieces for other governments. The largest order was from the Netherlands East Indies for 122,691,000 pieces. Other countries for which coins were stamped include Curacao, Dominican Republic, Liberia and Surinam. - D u r i n g the t w e l v e months, 2the U n i t e d States Mint at P h i l - ?r q?u 2 ed ¿>363,634,076 domestic coins worth $6 3 , 4 1 0 7 6 0 4 r ited States Mint at San Francisco coined 2 03 073 0 0 0 * % ed S t a t e s ^ a i ° D e n v e r turned out ¿55,729»200 coins worth $1 3 ,3 2 4 ,9 0 0 , forelgneooinage?n0lSO° “lnt alS° produoed the bulk of the -q Oo - TREASURY DEPARTMENT Washington POR REISASS, MORNING NEWSPAPERS, Tues<tey, January 20, 1942.... . 1/19/42 Proas Service The Secretary of the treasury announced laat evening that the tenders for 1X50,000,000, or thereabouts, of 91-day Treasury bills, to be dated January 21 and to nature April 22, 1942, which were offered cm January 16, were opened at the Federal Reserve Banks on January 19» The details of this issue are as followst Total applied for - $351# 5*5,000 Total accepted - 150,330,000 Range of accepted bids: (Excepting one tender of $200,000) High Low Average pries - 99*9*0 - 99*942 - 99.950 Equivalent rate approximately 0*079 percent • * * 0.229 * * • ■ 0.196 « TREASURY DEPARTMENT Washington FOR RELEASE, MORNING- NEWSPAPERS, Tuesday, January 2 0 , 19*1-2 1/19/42 ------- I— 2---- Press Service No. 2 9 ~ 7 *l The Secretary of the Treasury announced last evening that the tenders for $1 5 0 , 0 0 0 ,0 0 0 , or thereabouts, of 9 1 -day Treasury bills, to be dated January 21 and to mature April 22, 1 9 *1 2 , which were A \ offered on January 1 6 , were opened at the Federal Reserve Banks on January 1 9 . The details of this issue are as follows: Total applied for - $351,5^5,000 Total accepted - 1 5 0 , 3 3 0 000 Range of accepted bids: High Low (Excepting one tender of $2 0 0 , 0 0 0 ) “ an'nf,o Ec5ulv^lent rate approximately O.C7 9 percent ~ 99*942 " " 0 .2 2 9 11 Average Price - 99.95" " -oC'o- 11 " 0 .1 9 6 " T R E A S U R Y D E P A R T M E N T WASHINGTON O F F IC E O F D IR E C T O R O F TH E MINT IN REPLYING QUOTE INITIALS January l6, 19^2 MEMORANDUM TOs Mr. Charles Schwarz FROM: Mr. Leland Howard In reference to our telephone conversation of this morning, I transmit to you a copy of the release "Production of Cold and Silver in the United States in ^ l “. As stated to you, the Bureau of Mines and the Federal Reserve Bank have been asking for a copy of this release and are interested in securing it. I do not want to release it, however, to either of those agencies or to the public until it has been approved by you. Whether pine Islands will Country, I am not there is a remote would not want it DH/gd or not the production of the Philip be of any value to enemies of this in a position to state. However, possibility that the War Department released. Tii*o oipu t y p gp a i ^ c iit f fe / PRODUCTION OF GOLD AND SILVER IN THE UNITED STATES IN 1941 1 "f ' ' ' ' ' - -- -- ■ , ■ ' (Arrivals at United States Mints and Assay Offices and at private refineries) The Bureau of the Mint, with the cooperation of the Bureau of Mines, has issued the following statement of the preliminary estimate of refinery production of gold and silver in the United States during the calendar year 1941î : Location Gold : Ounces Silver : Valu!/ • Ounces ! • . Valued 4,090,785 $143,177,475 67,855,209 703,522 24,623,270 233,253 1,161,210 40,642,350 1,244,176 884,747 Totals, 19 4 1---- --- 5,955,517 208,443,095 69,332,638 49,303,209 Last year, 1940- - - - 6,003,105 210,108,700 69,585,734 49,483,189 Previous largest production- - - ---- 6,003,1052/ Continental United States Alaska- - - - - - - - - - Philippine Islands- ---- - $210,108,7002/ ' 148,252,593 165,869 ' $37,397,300^ 74,961,075^/ 1/ Gold valued at $35*00 per fine ounce; silver valued in 1941 at $0.711l/i the amount per fine ounce returned to depositors of newly mined domestic silver during 1941» 2/ 1940. 2/ 1915. ( NjJ^nO <x& i £ 3 [is & ^ ^ \ VjBi^ cX ,30 ^J V\a M \m ht TEEASUET DEPARTMENT WASHINGTON FOR RELEASE, MORNING NEWSPAPERS, Wednesday. January 21. 1942. 1/20/42 Press Service No. 29-75 PRODUCTION OF GOLD AND SILVER IN THE UNITED STATES IN 1941 (Arrivals at United States Mints and Assay Offices and at private refineries) The Bureau of the Mint, with the cooperation of the Bureau of Mines, has issued the following statement of the preliminary estimate of refinery production of gold and silver in the United States during the calendar year 1941: : Location 33 . I : Ounces Continental United States - Gold f : : I * : t Valued/ Silver Ounces : « Walue^/ 4,090,785 $143,177,475 67,855,209 $48,252,593 703,522 24,623,270 233,253 165,869 Philippine Islands - - - --- 1.161.210 40.642.350 1.244.176 884.747 Totals, 1941----------- 5,955,517 208,443,095 69,332,638 49,303,209 Last year, 1940 --- - - 6,003,105 210,108,700 69,585,734 49,483,189 Alaska - - - - - - — Previous largest production - - - - - - - 6,003,105§/$210,108,700i/ 74,961,0753/ $37,397,3003/ ni# 1/ Gold valued at $35.00 per fine ounce; silver valued in 1941 at $0.7111/; the jygT itfifl amount per fine ounce returned to depositors of newly mined domestic silver during 1941. 2/ 1940 1915. TO: - 2- The Treasury also has duly acknowledged contributions from two pets, one accompanied by a picture, and the other sending a paw-printed check. The accompanying letter said that Lady Dot had received a dollar for Christmas to buy bones with, and was sending the money to the President instead. The other canine donor, MMutt,w sent #5*02 from Florida and promised to cut down on ice cream. One of the larger donations came from employes and the owner of two coal mining companies. The employes each donated a day*s pay, and the owner donated the value of all the coal they mined. The Treasury received $14,000 from the project. T h is l a t t e r d o n a tio n was o n ly one o f many i n s t a n c e s i n w h ic h p la n t and f a c t o r y w ork ers have d o n a ted a d a y 's p a y . I n m ost c a s e s t h e s e d o n a tio n s have b een accom pan ied by a ¥\ o f th e em ploye Cash donations to the Government for national defense in the six weeks since the attack on Pearl Harbor have reached $241,572.08, the Treasury announced today. The tabulation covered the period from December 7 to January 16, and did not include securities, old gold and other articles where the value has not been ascertained. In the latter category were such items as dental work, wedding rings and other jewelry. The national defense fund had its spontaneous origin in the middle of June,1940 coincident with the fall of Prance. Since that time a total of $286,922.15 has been received. Among the latest contributions is one of $83 from an Ohio farmer, the amount of his soil conservation check. His note said: ”1 do n ’t need it as bad as my Uncle Sam.” A check for $16 was accompanied by New Y e a r ’s resolutions to give up alcohol, drink more water and milk, eat less high priced meat and more vegetables, and devote the savings to the war effort. Ten members of a Boy Scout troop sent in 25 cents each. A California lad who ”cuts lawns now and then and makes a few cents” sent a dollar. TREASURY DEPARTMENT Washington FOR RELEASE, MORNING NEWSPAPERS, Thursday., January 2 2 ,^ 1942. ,, , 1/21/4-2 • : ----- Press Service No,. 2 9 - 7 6 7 1 Cash donations to the Government for national defense in the six weeks since the attack on Pearl Harhor have reached $241,572.08, the Treasury announced today, . The tabulation covered the period from December 7 to January 1 6 , and did not include securities, old gold and other articles where the value has not been ascertained. In the latter category were such items as dental work, wedding rings,, and other jewelry. The national defense fund had its spontaneous origin In the middle of June, 194*0, coincident with the fall of France, Since that time a total of $2 8 6 ,9 2 2 . 1 5 has been received. Among the latest contributions is one of $ 8 3 from an Ohio farmer/ the amount of his soil conservation check* His note said;. "I don*t need it as bad as my Uncle Sam. '* A check for $16 was accompanied by New Year*s resolutions to give up alcohol, drink more water and milk, eat less high priced meat and more vegetables, and devote the savings to the war effort. Ten members of a Boy Scout troop sent in 2 5 cents each, A California lad who "outs lawns now and then and makes a few cents" sent a dollar, The Treasury also has duly acknowledged contributions from two pets, one accompanied by a picture, and the other sending a paw-printed check« The accompanying letter said that Lady Dot had received a dollar for Christmas to buy bones with,.and was sending the money to the President instead. The other canine donor, “Mutt,tt sent $5,02 from Florida and promised to cut down on Ice cream.One of the larger donations came from employes and the owner of two coal mining companies. The employes each donated a d a y 1s pay, and the owner donated the value of all the coal they mined, The Treasury received $14-, 0 0 0 from the pro ject. This latter donation was only ops of many instances in which plant and factory workers have donated a d a y 1 s pay. In most cases these donations have been accompanied by an additional contribution on the part of the employer. -0 O0 -* Treasury Department Division of Monetary Research Date..!. To: Mr. Schwarz From: Mr. Sotithard < .... The attached draft has "been gone over by Mr. Hawkey and me, and we think it is satisfactory, It is substantially the same as the draft sent to you at noon. number 29—77 At the top of the earlier draft, the was written in ink. The proposed new S~cent piece would present no ausahiiiisal difficulties and would entail no necessity for change of design. The coins will present a "bright, silvery color when newly struck, "but the experts say they will gradually assume a yellowish appear— ance after circulation. The samples are of the same weight and diameter as the 5**cent piece now in use, but are slightly thinner. The coin would func tion properly in such devices as subway turnstiles, telephone pay stations and countless merchandise vending machines# Mrs* Ross also announced that the Bureau of the Mint expects to save 100,000 pounds of tin a year through a change, under pre sent laws, in the content of the cent. In addition, *10,000 pounds of tin on hand are being turned over to defense industries. The tin content of the one-cent piece has been reduced to a trace, without affecting materially the quality or appearance of the coin, she said. The new cent consists, for practical purposes, of 95 percent copper and 5 percent zinc; instead of 95 percent copper, *4-percent zinc, and 1 percent tin, as at present. Mint chemists are making further experiments in an effort to save additional copperi \ Research chemists of the United States Mint have developed a "nickel-less nickel" that will save for defense use annually almost a million pounds each of vital nickel and copper, and at the same time will preserve the usefulness of the coin in mechanical devices. Mrs. Nellie Tayloe Ross, Director of the Mint, told Secretary Morgenthau that the change-over can he made quickly, after Congressional approval, to a coin half silver and half copper, eliminating one-third of the copper and all the nickel now used. Legislation to authorize the change was approved this week hy a Senate judiciary committee. Treasury officials pointed out that the materials vitally needed for defense are being replaced hy a metal of which the nation has ample supply. Of the Government1s total silver stock, more than a hillion and a quarter ounces not currently put to monetary uses are available for this purpose. Only about 2 percent of this amount would be required annually for the proposed coins. Mint officials contemplate no move to call in outstanding coins for melting down. They say that the technical difficulties are too great to warrant consideration of such salvage operations •under present supply conditions of the metals involved. Mrs« Ross also announced that the bureau expects to save 100,000 pounds of tin a year through a change, under present laws, in the content of the nt. In addition, 40,000 pounds* on hand are being turned to defense industries« The tin content of the one-cent piece has been reduced to a trace »without affecting materially the quality or appearance of the coin,she said. The new cent consists, for practical purposes of of 95 95 percent copper and 5 percent zinc; instead percent copper, 4 percent zinc, and 1 percent tin, as at present« Mint dhemists are making effort to further experiments in an additional copper« The p r o p o s e d n e w nick e l w o u l d p r e s e n t no m e c h a n i c a l N difficulties^and would entail no necessity for change of design« Sample coins have been struck from the ^proposed alloy« They present a bright,silvery color when newly coined, but the experts say they will gradually assume a yellowish appearance after circulation« The samples are of the same weight and d i a l e r as the 5-cent piece now in use,but are slightly thinner The coin w o u l d f u n c t i o n p r o p e r l y in such d e v i c e s as turnstiles subway »telephone pay stations and countless merchandise vending machines -x~x-x~~ Z-f- 77 Research chemists of the United States Mint have developed a "nickel-less nickel" that will save for defense use annually almost a million pounds each of vital nickel and copper, and at the same time will preserve the u s e f u l n e s s of the coin in mechanical devices* Mrs. Nellie Tayloe Ross, Director of the Mint, told Secretary Morgenthau that the change-over can be made quickly, after congressional approval, to a coin half silver and half -22-" copper, eliminating one-third of the copper and all the nickel now used. Legislation to authorize the change was approved this week by a Senliate judiciary committee. Treasury officials pointed out that the materials vitally needed for defense are being replaced by a metal of whlcn the Iku cw iiiii i iniiiiirlHi Mint officials contemplate no move to call in outstanding coins f o r m e l t i n g down. are too great The y say that the t e c h n i c a l difficulties to w a r r a n t c o n s i d e r a t i o n of such salvage operations u n d e r p r e s e n t supply c o n d i t i o n s of the m e t a l s involved. TREASURY DEPARTMENT Washington FOR IMMEDIATE RELEASE Thursday, January 22, 1942. Press Service No, 29-77 Research chemists of the United States Mint have develop ed a '‘nickel-less nickel" that will save for defense use an nually almost a million pounds each of vital nickel and copper, and at the same time will preserve the usefulness of the coin in mechanical devices, Mrs, Nellie Tayloe Ross, Director of the Mint, told Sec retary Morgenthau that the change-over can be made quickly, after Congressional approval, to a coin half silver and half copper, eliminating one-third of the copper and all the nickel now used. Legislation to authorize the change was approved this week by a Senate judiciary committee. Treasury officials pointed out that the materials vitally needed for defense are being replaced by a metal of which the nation has ample supply. Of the Government’s total silver stock, more than a billion and a quarter ounces not currently put to monetary uses are available for this purpose. Only about 2 per cent of this amount would be required annually for the proposed coins. Mint officials contemplate no move to call in outstanding coins for melting down. They say that the technical difficul ties are too great to warrant consideration of such salvage op erations under present supply conditions of the metals involved. The proposed new ^■'Cent piece would present no mechanical difficulties and would entail no necessity for change of de sign. The coins will present a bright, silvery color when newly struck, but the experts say they will gradually assume a yellowish appearance after circulation. The samples are of the same weight and diameter as the S-cent piece now in use, but are slightly thinner. The coin would function properly in such devices as subway turnstiles, tele phone pay stations and countless merchandise vending machines, Mrs. Ross also announced that the Bureau of the Mint ex pects to save 100,000 pounds of tin a year through a change, under present laws, in the content of the cent. In addition, 40,000 pounds of tin on hand are being turned over to defense industries. 2. The tin content of the one-cent piece has been reduced to without affecting materially the quality or appearance of the coin, she said. The new cent consists, for practical purposes, of 95 percent copper and 5 percent zinc; instead of 95 percent copper, 4 percent zinc, and 1 percent tin, as at present, } Mint chemists are making further experiments in an effort to save additional copper. - 0O 0- For Friday fun’s Secretary Morgenthau announced today that he has arranged with Walt Disney for the creation of a special animated short color film in which Donald Duck will show millions of income taxpayers how to prepare their returns and how the Government will translate their payments into the war effort* The filit will be called ”The New Spirit” and the Disney Studios at Burbank, California, are setting new production records to have it ready for showing within the next ten days in 12,000 theaters throughout the country. Disney »ft already has shown preliminary sketches to Secretary Morgenthau and received the Treasury Department’s approval of his treatment of the subject. The Treasury meanwhile has ordered 1,000 prints from the Technicolor laboratories, the largest print order in that organization’s history. Treasury tax experts «¡Sfe called upon Disney for guidance in determining Donald D u c k ’s status and decided Donald was the ’’head of a family” because of his support of his three adopted nephews, ”for whose maintenance he has a legal and moral obligation.” < TREASURY DEPARTMENT Washington F O R RELEASE, A F T E R N O O N NEWSPAPERS, Friday, J a n u a r y 23. 19^-2«_________ __ P r e s s Se r v i c e No* 29-78 Secretary Morgenthau announced today that he has arranged with Walt Disney for the creation of a special animated short color film in which Donald Duck will show millions of Income taxpayers how to prepare their returns and how the Government will translate their payments into the war effort, The film will be called “The New Spirit“ and the Disney Studios at Burbank, California, are setting new production records to have it ready for showing within the next ten days in 12,000 theaters throughout the country* Disney already has shown preliminary sketches to Secretary Morgenthau and received the Treasury D e p a r t m e n t ^ approval of his treatment of the subject. The Treasury meanwhile has ordered 1,000 prints from the Technicolor laboratories, the largest print order in that o r g anization^ history* Treasury tax experts called upon Disney for guidance in determining Donald D u c k !s status and decided Donald was the “head of a family“ because of his support of his three adopted nephews, "for whose maintenance he has a legal and moral obligation.“ - 11 - Tills plan leaves it to the individual to decide for himself whether he is to contribute to National saving and thus to war production the extra amount that will be the measure of the value he places on our liberties. As for those liberties, there is this to be said of thesis If we suffer injustices, if we suffer deprivation, if we suffer want, it is because of our sluggishness, our want of foresight, our neglect, our concern with the trivial and the unimportant. More than the people of any other nation we have been and are the masters of our destiny. We can remedy these defects; we can work out a democratic pattern of industrial rule; we can make the machine our servant rather than our master; we can achieve a better order in our civilization. We can do all these things if only we stand together now to crush the enemies who are the foes alike of us and of all we hope to attain* 0O0 - - 10 * The direction that effort must take is very plain and simple* The rule must be; buy Defense Bonds* Cut down expenditure; save; It is very easy to see that when you buy a bond you are lending the Government money to buy a gun or a bomb or a fighting plane* What is not so clearly understood is that when you buy a bond in place of something else y o u ’d like to have you are quite likely releasing the men and the materials which make it possible for the Government to buy a gun or a bomb or a plane that it could not otherwise have bought at any price* At the very least you are reducing by that amount the buying pressure that foments inflation* That is why-we say that a dollop gnved \\ out- / That is why the Treasury Department is pushing so hard the voluntary pay allotment plan for Defense Savings and encouraging every other plan that means restraint of individual expenditure now for the sake of security in the future — security for the individual, security for the Nation, security for democracy as the protector of human liberty. - 9 - Inequities in the present tax structure will need to be remedied. Escape from high taxes through such loopholes as tax-exempt securities, inter-family gifts which greatly reduce tax liability, community property provisions which accomplish a similar effect and excessive deductions from corporate revenue on any account should not be permitted when all classes of the population are asked to make patriotic sacrifices to further the war effort. f *^ Jr But other devices than taxation will be needed to restrain price rises. We should use all means possible to increase the supply of consumer goods so long as the means adopted do not take m e n or materials from the war effort. This is a challenge to greater efficiency in production. The effectiveness of various means of direct price control through price ceilings, allocations and rationing will also have a great deal to do with determining the general course These are indispensable instruments for dealing with the inflation danger. But in spite of what may be accomplished in these lines, there will still be great pressure on prices which can only be neutralised by patriotic voluntary effort. - 8 - Theoretically it is possible and it would be desirable if practicable to pay for the war as we go. Practically, there seems to be pretty general agreement that it can1t be done. That would mean taxation at an even higher rate than that necessary to balance consumer production and spendable income. Taxation as a practicable basis can, however, have a powerful restraining effect on prices. It can be joined with other devices to meet the inflation problem and contribute to the war effort. The present tax laws will yield revenue less than a third the amount we expect to spend in the next fiscal year. enough. From any standpoint that’s not It would seem that we ought to increase the yield by 50 per cent and that in fact is what the President has recommended. It is not going to be easy to do. It will be physically impossible to get all of it out of the high brackets of individual income and out of corporate profits. These will have to assume a substantial share, but the increases are bound to be felt all down the line. - 7 - and could find the means to do it, including-fcir’meanjk fcr divert tfo'i-B huge■ (of preventing individuals from drawing on their existing capital for current consumption, we could t - --- **-a wrl problem. — ix**» — rely on x— i £0 sopve the price But this would mean taxation not only of far greater magnitude but wholly different in character from anything we have known heretofore. It would in fact mean rationing income to fit consumption needs. system provides no mechanism for so Our democratic revolutionary a program, even if we were willing to submit to the restriction of individual liberties and the denial of incentive which it would imply. We cannot even attempt to freeze consumption of goods currently produced at current levels for all classes. Too much of our population now is living below a fair subsistence level. by starving our workers. We are not going to gain efficiency We must in fact permit many, a large class of our population that has been on a low subsistence level, both to earn more and to spend more. LI...mUM W J'.«WWiaW>WW U'lUJ I. II If we were prepared to adopt so drastic a program - 6 B u t there are q u a l i f i c a t i o n s to b e made. first place, the g r oss n a t i o n a l p r o d u c t c e eds the n a t i o n a l income. I n the s u b s t a n t i a l l y ex This is due to the fact that aJj of the gross n a t i o n a l p r o d u c t i n c l u d e s .ine g o o d s a n d services n e c e s s a r y to m a k e n o r m a l r e p l a c e m e n t s due to w e a r a n d tear as thoaq. which r e a c h the final consumer. as w e l l however, m a n y of these r e p l a c e m e n t s w i l l be p o s t p o n e d a n d a p o r t i o n of the g r o s s p r o d u c t w i l l purposes. Normal than a p p e a r s in the savings a n d existing the d i f f e r e n c e b e t w e e n available thus b e r e l e a s e d for other Thi s w i l l m e a n that there w i l l be m o r e c o n s u m e r goods available made. Nex t year, taxes w i l l f u r t h e r reduce the s u pply of g o o d s a n d the i n come to b u y them. d iscrepancy. / simple r e c k o n i n g just Y e t there w i l l r e m a i n a great 7 / T h i s d i s c r e p a n c y w o u l d n e c e s s a r i l y r e s u l t in a tremendous i n f l a t i o n u n l e s s it c o u l d be closed. A p r o g r a m of n ew taxes w h i c h w o u l d b r i n g in c u r r e n t l y an equal a m o u n t would, course, c l ose it. of O t h e r f a c tors m i g h t c a use p r i c e rises, b u t not e x cess of spe n d a b l e income. B u t that m i g h t m e a n taking in F e d e r a l taxes a d o l l a r o ut of e v ery three of the i n c o m e of e v e r y p e r s o n in the l a n d — more than d o u b l i n g the y i e l d of the taxes p a y a b l e n ext f i scal y e a r u n d e r the existing ta x structure. 35 In money figures it m i g h t m e a n a total of to 40 b i l l i o n s as a g a i n s t an e x p e c t e d total F e deral revenue o f some 18 b i l l i o n s for the next fiscal year. JP« 5 • The President has laid down a program of war production that will call for all the ingenuity, all the managerial ability, all the skill of fine craftsmen, all the hard labor and sustained determination we can bring to it* It may fed well be all that we can do; it is the least that we must BÉÉ ¡2Î1SI determine to do. In round money figures it envisages for the next ISSÉI lillf M :KOXJ fiscal year the completion of and payment for war goods and services in the amount of some fifty-six billions of dollars. ‘For this same period it is thought that the income may ¡MÊm ¡gl^gÿ National aei twice that amount. When an automobile plant produces tanks instead of mm pleasure cars, it is still creating income payments, and the men producing the tanks have incomes to spend just the wskM m same as if they had produced automobiles. Thus it might appear at first glance that National income available for expenditure in the next fiscal year would be twice as great as production for consumer use; in other words, that there would be two dollars of spendable income for every dollar of goods for sale. isp » rf|ïi m m ¡1 lyN MÈÊmmmmÊ ÉÉfSiSIS - 4 - But we are woefully simplifying the problem if we think that even in this field of paying for the war governmental fiscal policy is the decisive factor* not be. It will Voluntary action — democratic action — will be the decisive factor* This general conclusion has a very direct bearing on the question I have been asked to discuss: "Can Taxation Stop Price Rises?/" To this question it is possible to give a short and simple answer, which is: practically, no. theoretically, perhaps yes; Taxation alone is not sufficient, but it can have a powerful effect and is one of several essential devices that must be used. At any time before the big armament"“program got under way, an unwisely harsh tax program devised in a premature attempt to balance the budget might have stopped price rises, and at the same time have sent us into an economic tailspin that would have dealt prices and the whole economy a paralyzing blow. TMaJLl^n±s^J^ Even in the present situation of a high level of employment and production due to the war demand, badly chosen taxes might have the effect of badly hampering our war production program. - 3 - Production — war production — is our basic and all-inclusive need. Everything else must give way to it. Every obstacle must be removed from its path. obstacles is inflation. One of these We are so accustomed to thinking of inflation in terms of the hardships and injustices which it causes that we are apt to ignore its dislocating effects upon the process of production. In the grim business of war, however, this latter effect may be the most important. This is but one of several circumstances which make the problem of war finance — of how we are to pay for the war — not a separate problem from that of production, but a part of the problem of production itself. It is easy to say that we can find the means to pay for all we can produce. But what is not so generally understood is that what we pay and how and when we pay it is going to affect directly the amount and quality of what we produce. If our fiscal policy encourages inflation, that will interfere with production and make it more costly. If it encourages non-defense consumption instead of restraining it, that will directly reduce war production wherever it uses labor or material that could have been used to make war supplies* ** 2 "* We have not set up any mechanics by which the full power of this great people can be brought to bear instantly against malignant foes united in the effort to destroy us and equipped with powerful and modern methods of destruction. It is part of our system that we cannot exert our full power except by our own voluntary efforts as individuals and citizens of a free state. That can be our weakness or it can be our surpassing strength*/' Our armed forces will fight boldly and heroically; we can be sure of that. But all their dash and daring, all the superior prowess they may display on land, on sea and in the air will count for little unless we give them superiority in the tools and materials with which to fight. This is preponderantly and essentially a war of production, and we are late starters* We have not been idle in the last two years, but we have not done enough and our enemies started building against us ten years earlier* We have even helped them stock their arsenals. Every living American, on defense work or non-defense work, employed or unemployed, housekeeper or mechanic, is necessarily a part of this machinery of production. Everyone can add something to or take something away from the pile of materials and weapons whose size and quality will determine whether we win or lose. The name of the organization under whose auspices we meet today has, it seems to me, been happily chosen. It ought not to be too exclusively held, I can think of no better hope or wish for our country than that we, its people — all of us, without regard to our personal circum stances or situations — should realize our reponsibility u- and our opportunity to work together as the great Union SI United we may stand; divided we shall surely fall. The situation is that serious. P’l l 1 " for Democratic Action. Let us not be complacent. This is no demagogue¥s fake crisis; no business-as-usual me I If we here in America can*t make democracy a more perfect union, a union that can be more efficient in its own defense than any tyranny, then Democracy will die; America |. life. We fight for life, our own lives and our way of -- I emergency. In this greater union for democratic action, the "W r— - as the land of a free people, a union of the free, will die. indispensable need is for action — action not simply by the democratic action to save democracy to save a world in 'r ! l)l f President or by the Army and the Navy — but action by all, T' which men may live as men, and may grow. I f e . . life? nr wmrm ¿¿amuts&HkJ (c r u I / *— C 1 -^*2 C- I iS iL y - Í y *(/ ' < ^ «/ t / É&stj.S^n ^ i 1 ~------------------------ i ni m i........................n i,______ „nirr) r|||. 1( _Mj1jJJ--jjJ_.1-riri^ y V - ----t ^ ^ —--|^ ~ -^ íífc -w y ^ i «iiii>i«w>wrii( r 3 w ^ ^ iMtw<iito^ ^iaiwMwuWBWWWMaww»»wt^ ^ L f M 3 *r-+ ^ v v ^ y fl -V n J?Z£ T*v*»4. [ ^ (£Le— ¿H TREASURY DEPARTMENT Washington (The following address by Herbert E, G-aston, Assistant Secretary of the Treasury, is scheduled to be delivered at 1 1 : 1 0 a .m. Eastern Aiandard Time, Saturday. JanuarygTT, before the New York Conference on War and the Consumer 11 called by the Union for Democratic Action and is for release upon delivery. } The name of the organization under whose auspices we meet today has, it seems to me, been happily chosen. be too exclusively held, It ought not to I can think of no better hope or wish for our country than that we, its people — all of us, without regard to our personal circumstances or situations — should realize our responsibility and our opportunity to work together as the great Union for Democratic Action, United we may stand; divided we shall surely fall. The situation is that serious. Let us not be complacent. This is no demagogue s fake crisis; no business-as-usual emergency. We fight for life, our own lives and our way of life. If we here in America can t make democracy a more perfect union, a union that can be more efficient in its own defense than any tyranny, then Democracy will die; America as the land of a free people, a union of the free, will die. In this greater union for democratic action, the indispensable need is for action — action not simply by the President or by the Army and the Navy — but action by all, democratic action to save democracy to save a world in which men may live as men, and may grow. We have not set up any mechanics by which the full power of this great people can be brought to bear instantly against malignant foes united in the effort to destroy us and equipped with powerful and modern methods of destruction. It is part of our system that we cannot exert our full power except by our own voluntary efforts as Individuals and citizens of a free state. That can be our weakness or It can be our surpassing strength* 29-79 -2Our armed forces will fight boldly and heroically; we can be sure of that. But all their dash and daring, all the superior prowess they may display on land, on sea and in the air will count for little unless we give them superiority in the tools and materials with which to fight. This and we are years, but against us arsenals. is preponderantly and essentially a war of production, late starters. We have not been idle in the last two we have not done enough and our enemies started building ten years earlier.* We have even helped them stock their Every living American, on defense work or non-defense work, employed or unemployed, housekeeper or mechanic, is necessarily a part of this machinery of production. Everyone can add something to or take something away from the pile of materials and weapons whose size and quality will determine whether we win or lose. Production — war production — is our basic and all-inclusive need. Everything else must give way to it. Every obstacle must be removed from its path, One of these obstacles is inflation. We are so accustomed to thinking of Inflation in terms of the hardships and injustices which it causes that we are apt to ignore its dislocating effects upon the process of production. In the grim business of war, however, this latter effect may be the most important. This is but one of several circumstances which make the problem of war finance — of how we are to pay for the war — not a separate problem from that of production, but a part of the problem of production itself. It is easy to say that we can find the means to pay for all we can produce. But what is not so generally understood is that what we pay and how and when we pay it is going to affect directly the amount and quality of what we produce. If our fiscal policy encourages inflation, that will interfere with production and make it more costly. If it encourages non-defense consumption Instead of restraining it, that will directly reduce war production wherever it uses labor or material that could have been used to make war supplies. But we are woefully simplifying the problem if we think that even in this field of paying for the war governmental fiscal policy is the decisive factor. It will not be. Voluntary action — democratic action — will be the decisive factor. This general conclusion has a very direct bearing on the question I have been asked to discuss: “Can Taxation Stop Price Rises?“ -3To this question It is possible to give a short and simple answer, which is: theoretically, perhaps yes; practically, no. Taxation alone is not sufficient, but it can have a powerful effect and is one of several essential devices that must be used. At any time before the big war production program got under way, an unwisely harsh tax program devised in a premature attempt to balance the budget might have stopped price rises, and at the same time have sent us into an economic tailspln that would have dealt prices and the whole economy a paralyzing blow. Even in the present situation of a high level of employment and production due to the war demand, badly chosen taxes might have the effect of badly hampering our war production program. The President has laid down a program of war production that will call for all the ingenuity, all the managerial ability, all the skill of fine craftsmen, all the hard labor and sustained determination we can bring to it.' It may well be all that we can do; it is the least that we must determine to do. In round money figures it envisages for the next fiscal year the completion of and payment for war goods and services in the amount of some fifty-six billions of dollars. For this same period it is thought that the National income may not much exceed twice that amount. When an automobile plant produces tanks instead of pleasure cars, it is still creating income payments, and the men producing the tanks have incomes to spend Just the same as if they had produced automobiles. Thus it might appear at first glance that National income available for expenditure in the next fiscal year would be twice as great as production for consumer use; in other words, that there would be two dollars of spendable income for every dollar of goods for sale. But there are qualifications to be made. In the first place, the gross national product substantially exceeds the national income. This is due to the fact that the gross national product includes all of .the goods and services necessary to make normal replacements due to wear and tear as well as those which reach the final consumer. Next year, however, many of these replacements will be postponed and a portion of the gross product will thus be released for other purposes. This will mean that there will be more consumer goods available than appears in the simple reckoning Just made. Normal savings and existing taxes will further reduce the difference between the supply of goods and the income available to buy them. Yet there will remain a great discrepancy. This discrepancy would necessarily result in a tremendous inflation unless it could be closed. A program of new taxes which would bring in currently an equal amount would, of course, close it. Other factors might cause price rises, but not excess of spendable income. But that might mean taking-in.Federal taxes a dollar out of every three of the income of every person in the land -— more than doubling the yield of the taxes payable next fiscal year under the existing tax structure. In money figures it might mean a total of 35 to ^0 billions as against an expected total Federal revenue of some 13 billions for the next fiscal year. If we were prepared to adopt so drastic a program and could find the means to do it, including means of preventing individuals from drawing on their existing capital for current consumption, we could rely on these means alone to solve the price problem. But this would mean taxation not only of far greater magnitude but wholly different in character from anything we have known heretofore. It would in fact mean rationing income to fit consump-. tion needs. Our democratic system provides no mechanism for so revolutionary a program, even if we were willing to submit to the restriction of individual liberties and the denial of incentive which it would imply. We cannot even attempt to freeze consumption of goods currently produced at current leveis for all classes. Toe much of our population now is living beloitf a fair subsistence level. We are not going to gain efficiency by starving our workers We must in fact permit many, a large class of our population that has been on a low subsistence level, both to earn more and to spend more. Theoretically it is possible and it would be desirable if practicable to pay for the war as we go. Practically, there seems to be pretty general agreement that it can’t be done. That would mean taxation at an even higher rate than that necessary to balance consumer production and spendable income. 'Taxation as a practicable basis can, however, have a powerful restraining effect on prices. It can be joined with other devices' to meet the Inflation problem and contribute to the war effort. The present tax laws will yield revenue less than a third the amount we expect to spend in the next fiscal year. From any standpoint that’s not enough. It would seem that we ought to increase the yield by 5° per cent and that in fact is what the President has recommended. It is not going to be easy to do. It will be physically impossible to get all of it out of the high brackets of individual Income and out of corporate profits. These will have to assume a substantial share, but the increases are bound to be felt all down the line. Inequities in the present tax structure will need to be remedied. Escape from high taxes through such loopholes as taxexempt securities, inter-family gifts which greatly reduce tax liability, community property provisions which accomplish a similar effect and excessive deductions from corporate revenue on any account should not be permitted when all classes of the population are asked to make patriotic sacrifices to further the war effort. -5But other devices than taxation will be needed to restrain price rises. We should use all means possible to increase the suppiy of consumer goods so long as the means adopted do not take men or materials from the war effort. This is a challenge to greater efficiency in ^production. The effectiveness of various means of direct price control through price ceilings, allocations and rationing will also have a great deal to do with determining the general course of prices, These are Indispensable instruments for dealing with the inflation danger. But in spite of what may be accomplished in these lines, there will still be great pressure on prices which can only be neutralized by patriotic voluntary effort,. The direction that effort must take is very plain and simple. The rule must be: Cut down expenditure; save; buy Defense Bonds, It is very easy to see that when you buy a bond you are lending the Government money to buy a gun or a bomb or a fighting plane. What 1ft not so clearly understood is that when you buy a bond in place of something else you'd like to have you are quite likely releasing the men and the materials which make it possible for the Government to buy a gun or a bomb or a plane that it could not otherwise have bought at any price. At the very least you are reducing by that amount the buying pressure that foments inflation. That is why the Treasury Department is pushing so hard the voluntary payroll savings plan for Defense Bonds and encouraging every other plan that means restraint of individual expenditure now for the sake of security in the future — security for the individual, security for the Nation, security for democracy as the protector of human liberty. This plan leaves it to the individual to decide for himself whether he is to contribute to National saving and thus to war production the extra amount that will be the measure of the value he places on our liberties. As for t h o s e liberties, there is this to be said of them: If we suffer injustices, if we suffer deprivation, if we suffer want, it is because of our sluggishness, our want of foresight, our neglect, our concern with the trivial and the unimportant. More than the people of any other nation we have been and are the masters of our destiny. We can remedy these defects; we can work out a democratic pattern of industrial rule; we can make the machine our servant rather than our master; we can achieve a better order in our civilization. We can do all these things if only we stand together now to crush the enemies who are the foes alike of us and of all we hope to attain. - o Oo- - 3 - and tubes, brass sheets, vast quantities of news print and other paper, autos and trucks, locomotive parts, tin plate, copper wire, steel bars and airplane engine spare parts. & 0 To supplement this information, the-Foreign Funds Control I oanva&sod all bankers, export houses, shippers and freight handlers to locate materials consigned to areas now overrun by Japan, A unit was created within Foreign Funds Control to assemble information and draft a list of war materials to be forwarded to the War Production Board in order that it might allocate idle war materials (j/uxtjdyt<cb-4-u-4*> to othor All-ied war uses. By this prompt action Foreign Funds Control made certain that essential war supplies would not lie unused in ships* holds, docks and warehouses. Some of this material was already on the Pacific and en dangered by roving Nipponese undersea craft. Other ships were somewhere < À between eastern seacoast oorts and the west coast. i The stoppage of shipments to certain Far Eastern points caused goods to pile up on the shipping piers of the west coast. i Military authorities ordered the wharfs cleared to make them available for military use. At the request of the Army the Foreign Funds Control helped clear the docks by issuing blanket licenses to owners and holders of the goods, enabling them to resell the unloaded merchandise directly from the wharfs. Day after day the trucks of buyers carted the goods away, and^ in spite of incoming boats constantly unloading^ the vital piers were kept open for military uses. \\ Amonc the shipments which were unloaded on west coast piers and which the Treasury has reported to the War Production Board were tires ^ 4 TREASURY DEPARTMENT Press Service No. pT> raRiLS mu T2 The Treasury Department revealed today that an estimated $15,000,000 worth of vital war materials, originally destined for Far Eastern areas now occupied by Japan^will be redirected into the AH 1 iwf* le war effort through freezing control. At the same time it told of aiding the military authorities to clear west coast shipping docks of Orient-bound goods which piled up after the outbreak of war. Both of these moves were part of the Foreign Funds Control Division1s program to aid the war effort. This marks the fourth time At clear lied u p Ivielon in ' Mini lof at few ffiw months that freezing control ha in the last dollars worth of war materials held for foreign ovmersjjbo be redirected ’easury carl Ha: iliLu bftu Allied m r BPPrrrtrgThe current estimate of $15,000,000 is based largely on examination of ship cargo manifests which were reported to the Treasury1s freezing^officials shortly after the attack on Pearl Harbor. information from four different . nffi ninl ~ amassed i " xinj ....saingsources. oroi Within a few hours after the attack on Pearl Harbor the the a ¿Foreign* -ffuwdg-eu n U ul staff was checking customs cards in order to spot cargoes of war materials on their way to the Far last. Leading banks and shippers were asked to give full reports on supplies ready for shipment, and ffereh' por t] 1var h tippers lipment mai To' tippers Ai [formati ¡erlali customs authorities were asked to send in complete cargo manifests of every boat In west coast ports. 1 Ware] enàai pevhei*' / TREASURY DEPARTMENT • Washington FOR RELEASE, MORNING- NEWSPAPERS, gT-ffifo January 23, 19*12._ _ _ _ _ _ Press Service No. 29-gO The Treasury Department revealed today that an estimated $1 5 *000,000 worth of vital war materials, originally destined for Far Eastern areas now occupied by Japan, will be redirected into the United Nations war effort through freezing control. At the same time it told of aiding the military authorities to clear west coast shipping docks of Orient-bound goods which piled up after the outbreak of war. Both of these moves were part of the Foreign Funds Control Division's program to aid the war effort. This marks the fourth time in the last few months that freezing control has resulted In diverting to the United Nations1 supply program millions of dollars worth of war materials held for foreign owners. The current estimate of $15,000,000 is based largely on examination of ship cargo manifests which were reported to the Treasury*s freezing control officials shortly after the attack on Pearl Harbor. Foreign Funds Control officers amassed information from four different sources. Within a few hours after the attack on Pearl Harbor they were checking Customs cards in order to spot cargoes of war materials on their way to the Far East. Leading banks and shippers were asked to give full reports on supplies ready for shipment, and Customs authorities were asked to send in pomplete cargo manifests of every boat in west’ coast ports. To supplement this information, all bankers, export houses, shippers and freight handlers, were canvassed to locate materials consigned to areas now overrun by Japan. the War Production Board in order that-It might allocate idle war materials to United Nations war uses. By this prompt action Foreign Funds Control made certain that essential war supplies would not lie unused in ships1 holds, docks and warehouses. Some of this material was already on the Pacific and endangered by roving Nipponese undersea craft. Other ships were somewhere between eastern seacoast ports and the west coast. - 2- Tho stoppage of shipments to certain Far Sastern points caused goods to pile up, on the shipping piers of the west coast. Military authorities ordered the wharfs cleared to make them available for military use. At the request of the Army, the Foreign Funds control helped clear the docks by issuing blanket licensee to owners and holders of goods, enabling them to resell the unloaded merchandise directly from the wharfs. Day after day the trucks of buyers carted the goods away, and, in spite of incoming boats constantly unloading, the vital piers were kept open for military uses. • _ shipments which were unloaded on west coast piers and which the Treasury has reported to the War Production Board were tires and tubes, brass sheets, vast quantities of news print and other paper, autos and trucks, locomotive parts, tin plate, copper wire, steel bars, and airplane engine spare parts* -oOo- TREASURY DEPARTMENT Washington FOR RSLiijASxLy MORNING NEWSPAPERS, Friday, January 23, 19^2.________ 1/22/42 Press Service No, 29-gO The Treasury Department revealed today that an estimated $1 5 ,000,000 worth of vital war materials, originally destined for Far Eastern areas now occupied by Japan, will be redirected into the United Nations war effort through freezing control. At the same time it told of aiding the military authorities to clear west coast shipping docks of Orient-bound goods which piled up after the outbreak of war. Both of these moves were part of the Foreign Funds Control Division's program to aid the war effort. This marks the fourth time in the last few months that freezing control has resulted in diverting to the United Nations' supply program millions of dollars worth of war materials held for foreign owners. The current estimate of $ 1 5 ,000,000 is based largely on examination of ship cargo manifests which were reported to the Treasury's freezing control officials shortly after the attack on Pearl Harbor. Foreign Funds Control officers amassed information from four different sources. Within a few hours after the attack on Pearl Harbor they were checking Customs cards in order to spot cargoes of war materials on their way to the Far East. Leading banks and shippers were asked to give full reports on supplies ready for shipment, and Customs authorities were asked to send in complete cargo manifests of every boat in west coast ports. To supplement this information, all bankers, export houses, shippers and freight handlers, were canvassed to locate materials consigned to areas now overrun by Japan, A unit was created within Foreign Funds Control to assemble information and draft a list of war materials to be forwarded to the War Production Board in order that it might allocate idle war materials to United Nations war uses. By this prompt action Foreign Funds Control made certain that essential war supplies would not lie unused in ships' holds, docks and warehouses. Some of this material was already on the Pacific and endangered by roving Nipponese undersea craft. Other ships were somewhere between eastern seacoast ports and the west coast. - 2The st o p p a g e of sh i p m e n t s to ce r t a i n F a r E a s t e r n p o i n t s caused goods to p i l e up. on the s h i p p i n g p i e r s of the west coast. M i l i t a r y a u t h o r i t i e s o r d e r e d the w h a r f s cleared to m a k e t h e m available for m i l i t a r y use. At the request of the Army, the Foreign Funds C o n trol h e l p e d clear the d o c k s b y i s s uing b l a n k e t licenses to o w n e r s and h o l d e r s of goods, e n a b l i n g them to r e s e l l the u n l o a d e d m e r c h a n d i s e d i r e c t l y f r o m the wharfs. Day a f ter d a y the trucks of b u y e r s c a r t e d the g o o d s away, and, in s p ite of incoming coats c o n s t a n t l y unloading, the v i t a l p i e r s w e r e kept open for m i l i t a r y uses. A m o n g t he s h i p m e n t s w h i c h w e r e u n l o a d e d on west coast p i e r s and w h i c h the T r e a s u r y has r e p o r t e d to the W a r P r o d u c t i o n B o a r d were tires a nd tubes, b r a s s sheets, vast q u a n t i t i e s of n e w s p r i n t and o t her paper, autos an d trucks, l o c o m o t i v e parts, tin plate, copper wire, steel bars, and a i r p l a n e engine spare parts. ~ o 0o~ w m - 3 ~ issue or on subsequent purchase, and the amount actually received either upon sale or redemption at maturity during the taxable year for which the return is made, as ordinary gain or loss* Treasury Department Circular No* 418, as amended, and this notice, prescribe the terms of the Treasury bills and govern the condi tions of their issue. Copies of the circular may be obtained from any Federal He serve Bank or Branch. Msm. - 2- Reserve Banks and Branches^,following which, public announcement will be made by the Secretary of the Treasury of the amount and price range of accepted bids« Those submitting tenders will be advised of the acceptance or rejec tion thereof. The Secretary of the Treasury expressly reserves the right to accept or reject any or all tenders, in whole or in part, and his action in any such respect shall be final. Payment of accepted tenders at the prices offered must be made or completed at the Federal Reserve Bank in cash or other immediately available funds on January 23. 1942,------ • 55 The income derived from Treasury bills, whether interest or gain from the sale or other disposition of the bills, shall not have any exemption, as such, and loss from the sale or other disposition of Treasury bills shall not have any special treatment, as such, under Federal tax Acts now or here after enacted. The bills shall be subject to estate, inheritance, gift, or other excise taxes, whether Federal or State, but shall be exempt from all taxation now or hereafter imposed on the principal or interest thereof by any State, or any of the possessions of the United States, or by any local taxing authority. For purposes of taxation the amount of discount at which Treasury bills are originally sold by the United States shall be considered to be interest. Under Sections 42 and 117 (a) (l) of the Internal Revenue Code, as amended by Section 115 of the Revenue Act of 1941, the amount of discount at which bills issued hereunder are sold shall not be considered to accrue until such bills shall be sold, redeemed or otherwise disposed of, and such bills are excluded from consideration as capital assets* Accordingly, the owner of Treasury bills (other than life insurance com panies) issued hereunder need include in his income tax return only the difference between the price paid for such bills, whether on original ¡00 isblngl TREASURY DEPARTMENT Washington peR-RED EA SET^reSN ii^i^W SPA EH RS. -Friday*—January 25^ 1312— . The Secretary of the treasury, hy this public notice, invites tenders for fr 150.0Q0.000 , or thereabouts, of 91— -day Treasury bills, to be issued J on a discount basis under competitive bidding. ». be dated January 28. 1942 it and will mature »nomini The bills of this series will 1ST» Tei ties up April 29,, 19£|. T XI XI when the face amount will be payable without interest. \W / They will be issued m le Tre pen mu [the bearer form only, and in denominations of $1,000, $5,000, $10,000, $100,000, * IH $500,000, and $1,000,000 (maturity value). Tenders will be received at Federal Reserve Banks and Branches up to the J [ closing hour, two o'clock p. m., Eastern Standard time, Monday, January 26. 1 9 * M fede a hich ppllc I Tenders will not be received at the Treasury Department, Washington. Each tender j must be for an even multiple of $1,000, and the price offered musty be expressed 1 on the basis of 100, with not more than three decimals, e. g., 99.925. may not be used. V Fractions I fenks s ealere scolpa Ills a less g It is urged that tenders be^ made on the pointed forms and for 'Ii warded in the special envelopes which will be supplied by federal Reserve Banks lc or Branches on application therefor. :the i Eiders le3eci Tenders will be received without deposit from incorporated banks and trust companies and from responsible and recognized dealers in investment securi ties. V Tenders from others must be accompanied by payment of 10 percent of tho ccept < stlon ! aiders sderal !Januj face amount of Treasury bills applied for, unless the tenders are accompanied ty j Un frc We anj an express guaranty of payment by a.n incorporated bank or trust company. Immediately after the closing hour, tenders will be opened at the teterzj litio! TREASURY DEPARTMENT FOR RELEASE, MORNING NEWSPAPERS, Washington Friday, The S e c r e t a r y of the Treasury, vites tenders bills, The b i l l s of this out interest. 29, of 9I~J-ay in Treasury b a s i s u n d e r c o m p e t i t i v e bidding. series w i l l be d a t e d J a n u a r y 26, 19*12, 19*12.________ by this publ i c notice, for $ 150, 000, 000, or thereabouts, to be i s s u e d on a discount mature April J a n u a r y 23, 19L 2, and will w h e n the face amou n t w ill be p a y a b l e w i t h T h e y w i l l be i s sued in b e a r e r form only, and in d e n o m inations of $ 1 , 000, $ 5, 000, $ 10, 000, $ 100, 000, $ 500, 000, and $ 1 ,000,000 ( m a t urity value). T e n ders w i l l b e r e c e i v e d at F e d e r a l R e s e r v e B a nks a nd B r a n ches up to the c l o s i n g hour, two o * c l o c k p, m., E a s t e r n S t a n d a r d time, Monday, J a n u a r y 26, 19*1-2. T e n d e r s w ill not be r e c e i v e d at the T r e a s u r y Department, Wash i n g t o n , Eac h tender must be for an even m u l t i p l e of $ 1 , 000, and the p r i c e o f f e r e d must b e e x p r e s s e d on the b a s i s of 100, w i t h not m o r e than three decimals, e, g , , 99.925. Fra c t i o n s m a y not be used. It is u r g e d that tenders be made on the p r i n t e d forms and f o r w a r d e d in the special envelopes which will be s u p p l i e d by Federal R e s e r v e B a n k s or B r a n c h e s on a p p l ication therefor. Tenders will be r e c e i v e d w i t h o u t d e p o s i t fro m i n c o r p o r a t e d banks and trust c o m p a n i e s and from r e s p o n s i b l e and r e c o g n i z e d dealers in inv e s t m e n t securities. T e n ders from others must be a c c o m p a n i e d b y p a y m e n t of 10 p e r c e n t of the face amount of T r e a s u r y bills a p p l i e d for, u n less the tenders are a c c o m p a n i e d by an ex press g u a r a n t y of p a y m e n t by an i n c o r p o r a t e d b a n k or trust company. I m m e d i a t e l y a f t e r the c l o s i n g hour, tenders will be o p e n e d at the Federal R e s e r v e B a nks a nd Branches, f o l l o w i n g w h i c h p u b lic a nnouncement wil l be m ade b y the S e c r e t a r y of the T r e a s u r y of the amount and p r i c e r a nge of a c c e p t e d bids. Those submitting tenders will b e a d v i s e d of the a c c e p t a n c e or rej e c t i o n thereof. The Sec r e t a r y of the T r e a s u r y e x p r e s s l y r e s e r v e s the right to accept or reject any or all tenders, in w h o l e or in part, and his action in any suc h r e s p e c t shall b e final. P a y m e n t of a c c e p t e d tenders at the p r i c e s o f f e r e d must b e m a d e or c o m p l e t e d at the Federal R e s e r v e B a n k in c ash or o t her i m m e d i a t e l y ava i l a b l e funds on J a n u a r y 26, 19*12, The income d e r i v e d from T r e a s u r y bills, w h e t h e r interest or gain from the sale or o t her d i s p o s i t i o n of the bills, shall not have any exemption, as such, and loss from the sale or o t h e r d i s p o s ition of T r e a s u r y b i l l s shall not hav e any special treatment, 29-SI - 2 - as such, u n d e r F e d e r a l t ax A c t s n o w or h e r e a f t e r enacted. The bills shall b e subject to estate, inheritance, gift, or other excise taxes, w h e t h e r Federal or State, but shall be exempt from all taxation n o w or h e r e a f t e r i m p o s e d on the p r i n c i p a l or i n t e r est thereof by any State, or any of the p o s s e s s i o n s of the U n i t e d States, or b y any local t a x i n g a uthority. F o r p u r p o s e s of t a x a tion the amount of d i s c o u n t at w h i c h T r e a s u r y b i l l s are orisrinallv sold b y the U n i t e d S t ates shall b e c o n s i d e r e d to be interest. Un der Se c t i o n 42 and 117 (a) (l) of the I n t e r n a l R e v e n u e Code, as amended b y S e c t i o n 115 of the R e v e n u e Act of 1941, the amount of discount at w h i c h b i l l s i s sued h e r e u n d e r are sold shall not be considered to a c c r u e until such b i l l s shall b e sold, r e d e e m e d or otherwise d i s p o s e d of, and such b i l l s are e x c l u d e d from c o n s i d e r a tion as capital assets. Accordingly, the o w ner of T r e a s u r y b i l l s (other than life i n s u r a n c e c o m p a n i e s ) i s s u e d h e r e u n d e r n e e d in clude in his income tax r e t u r n only the d i f f e r e n c e b e t w e e n the price p a i d for suc h bills, w h e t h e r on o r i ginal issue or on s u b s e quent purchase, and the amount a c t u a l l y r e c e i v e d either upon sale or r e d e mption at m a t u r i t y d u r i n g the ta x a b l e y e a r for w h i c h the return is made, as o r d i n a r y gain or loss. T r e a s u r y D e p a r t m e n t C i r c u l a r No. 4lg, as amended, and this notice, p r e s c r i b e the terms of the T r e a s u r y b i l l s and g o v e r n the conditions of their issue. Copies of the c i r c u l a r m a y be o b t a i n e d from any Federal R e s e r v e B a n k or Branch. o 0 o "This Japanese Army creed is a joke," Mr. Anslinger continued. "One thousand hospital beds at Nanking are filled with heroin-addicted soldiers of the Japanese Army. Illicit drug trafficking acts like a boomerang, the purveyors of the drugs often becoming its victims. Many Japanese Army officers in Manchuria have fallen victims to the drug habit. Where Japanese influence advances, the drug traffic and drug addiction go with it. "These statements are supported by the minutes of the Opium Advisory Committee for the years 1936 to 1940. Nearly all of the members of that Com mittee representing twenty-seven nations were of the opinion that Japan’s aggressive dope-spreading policy was just as definite an instrument of national policy as her military aggression." weakened and debauched. We should not be far short of the mark if we said that 90$ of all the illicit ’white drugs* of the world are of Japanese origin, manufactured in the Japanese Concession of Tientsin, around Tientsin, in or around Dairen or in other cities of Manchuria, Jehol and occupied China, and this always by Japanese or under Japanese supervi sion. Words would fail to describe the revolting conditions in the dens of the Japanese Concession.” Commissioner Anslinger quoted the following text of a regulation appearing in a booklet which the Japanese Military Command distributes to Japanese soldiers: "Paragraph 15.— The use of narcotics is unworthy of a superior race like the Japanese. Only inferior races, races that are decadent, like the Chinese, Europeans and the East Indians, are addicted to the use of narcotics. This is why they are destined to become our servants and eventually to disappear. "A Japanese soldier who is guilty of using narcotics becomes unworthy of wearing the uniform of the Imperial Japanese Army and of venerating our divine Emperor.” 11 - died of narcotic addiction without any provision for their interment. An eye-witness who was in Mukden in October 1936 is quoted as saying: *Adjacent to a rag-pickers’ market about a reeking open sewer are some fifty or more hovels inhabited by the lowest type of prostitutes who, in addition to their regular occupation, also openly dispense narcotics. The setting was loathsome to a degree. Demonstrating with peculiar force the relation of cause to effect, there lay on an ash heap just behind the narcotic brothels seven naked corpses which had evidently been stripped of their rags by fellow addicts. It is generally stated that this is a daily sight, despite regular removal of the bodies by the Red Swastika Society. There was offered no other explanation than that these dead met their end through narcotics poisoning.1 "During the last two years, there have been in Harbin many Japanese addicts, especially among the soldiers and officers of the Japanese Army. During the very severe Harbin winters, many addicts die in the street; their corpses are left for days in the streets, as nobody bothers to take them away; even the dogs sometimes will not eat them. "The Japanese Concession in Tientsin has be come the heroin center of China proper and of the world, and it is from here that not only the Chinese race but all other countries of the world are being - 10- increase in the area sown to poppy and in opium pro duction; and morphine factories were at once started in Chahar by Japanese. One factory at Kalgan was reported to have an output of 50 kilograms of heroin daily, a sum fifteen times the legitimate needs of the world. “Major General Kita, Japanese Military Attache in Shanghai, speaking of the Inner Mongolian crisis said, ’Reports that these Mongols are too poor to buy tanks, armored cars and munitions are untrue, for they have assets such as a vast opium harvest. We have been paid in kind.’ “The situation in Manchuria is terrifying. The condition in that area is now almost beyond belief. This is the one region in the world where the govern ing authority not only makes no effort to prevent the abuse of narcotic drugs but actually profits by the rapid increase of narcotic addiction. The degradation of the population of Manchuria through increasing use of opium and its derivatives has come to a pass where even Japanese newspapers published in that area have been moved to protest. "Press reports have stated that, in 1935, in the principal cities of Manchuria, nearly 6,000 persons - 9- to Japanese firms. In addition, a large quantity (1,000 chests) of opium was reported as being held in Macao to the order of the Japanese Army and Japa nese firms, intended eventually for sale in either South China or in Shanghai. "A lot of 428 chests from the Singapore Maru’ arrived in Tangku and was distributed under the con trol of a Japanese Army officer at Tientsin; 300 chests were sent to Shanghai, via Dairen, and were taken over by the Japanese Army. "Efforts were under way for some time to sell, under the control of a colonel of the Japanese Army who has been entrusted by that army with arrangements for the sale of opium in the Shanghai region, 460,000 pounds of opium (12,000,000 shots of heroin) which was consigned in care of the Mitsui Bussan Kaisha at Shanghai. "In addition to these activities by the Japanese Army, Japan itself and all Japanese possessions are havens for Japanese nationals engaged in the illicit drug traffic. "When the Japanese military forces of the regime now functioning in Manchuria and Jehol occupied northern^Jhahar, there immediately resulted a forced -8 the consequences of the situation in the occupied areas. Japanese authorities in China are feeding the international traffic and crossing the seas to poison other countries as well. HIn the Japanese-controlled, areas of China, so great was the increase in drug addiction during a year that enormous quantities of opium have been imported into China to satisfy that addiction. The movements of opium and heroin into the Japanesecontrolled areas have been made with as much secrecy as possible. Japanese Concessions in China, especially that of Tientsin, and also the Hankow Concession before its evacuation by the Japanese authorities, consti tute or constituted centers of illicit traffic; Manchuria and Jehol were transformed into narcotics arsenals; Japanese Consulates, such as that at Chengchow in Honan, have acted as centers for the distribution of drugs; Japanese Army lorries have been used to transport narcotic drugs which have poisoned Chinese by the thousands almost all over China. "Huge quantities of opium arrived in North China and in Shanghai consigned to the Japanese Army and -7 tion must make up for the inferiority of China’s armaments. "Lieutenant-Commander Fletcher, in the House of Commons on December 22nd, 1938, gave a vivid descrip tion of the position when he stated: ’Pestilence and war are historically associated with each other, hut it has been left to the Japanese to find a way of making a pestilence pay for war.’ MIs it surprising that in such circumstances the ravages of drugs are decimating the Chinese people, to whom the Japanese military say they are bringing 'order and peace' and ’the benefits of friendly collaboration'? "It is difficult to estimate the number of opium addicts in the occupied areas; but there can be no question that in those areas, including Manchuria and Jehol, never at any time in their history has the situation been so revolting, never has the per centage of opium addicts and other drug addicts been so high, as since they have been occupied by the Japanese troops. It is equally beyond question that no such situation exists, or ever has existed, any where else in the world. "The Chinese people are not alone in suffering United States from the Japanese Concession in Tientsin. By one gang of traffickers alone, enough heroin was smuggled into the United States to supply 10,000 addicts^or one year, We very properly protested at the failure of the Japanese authorities to observe the obligation to limit the manufacture and control the distribution of narcotics, "Morphine and heroin were also used by the Japanese Army as a means of destroying the bodies and souls of the people in the areas which that army occupied. This is another form of chemical warfare against the Chinese people as deadly as that of the prohibited gases. It is not only a violation of the international opium Conventions to which Japan is a. party, but also a diabolical method of killing off the Chinese population in the occupied areas by slow poisoning. "Japanese authorities derive revenue from it to cover part of the costs of their invasion. This method of systematic poisoning is adopted by Japan to weaken Chinese resistance and to find traitors among the Chinese, because drug addicts will do any thing to obtain drugs, and are useless in the fight against the invader, in which courage and determina- by the government. The Japanese now ha,ve their eyes on this large potential revenue and if they should conquer those Islands, they would immediately re establish a system of sale of opium to the Filipinos. They are master technicians at poisoning with drugs. wWe attacked the Japanese opium policy year after year in the Opium Advisory Committee at Geneva and were always joined by our Canadian, Chinese and Egyptian colleagues, who had evidence to corroborate our allegations. We charged that the Japanese Army in China had been deliberately encouraging and spread ing the illicit use of narcotics among the Chinese, with the inevitable result that, in the words of a resolution of the Opium Advisory Committee, fthe situation in those regions (in China) which are under Japanese influences has deteriorated to an alarming extent.f "In all parts of Chinese territory under Japa nese military occupation conditions were getting steadily worse. In North China all legal control of the narcotic trade had ceased to exist since its invasion by the Japanese in August 1937. The pro portions which the traffic had assumed could be gauged, for example, by the shipments to the in soy beans which arrived in the United States on the same ship with Prince Chichibu, the Emperor's brother* HWe have experienced Pearl Harbors many times in the past in the nature of dangerous drugs from Japan which were meant to poison the blood of the American people. The Treasury Department's Coast Guard for years has trailed Japanese vessels into and out of Honolulu and Pacific Coast ports to pre vent dope cargoes from being thrown over the sides of vessels to smugglers. In order to combat this illicit traffic further, we enacted a law in 1935 imposing heavy fines on the master or owner of any vessel visiting our ports on which unmanifested heroin, morphine or cocaine is found./-Aftor tfa»*» TOSS* prohibited the sale of smoking opium to the people "Wherever the Japanese Army goes, the drug traffic follows. In every territory conquered by the Japanese, a large part of the people become en slaved with drugs," Commissioner Anslinger continuing: / "We in the Treasury Department have been in a war against Japanese narcotics policy and practices for more than ten years. Many shipments from nar cotic factories licensed by the Japanese government have been smuggled into the United States. For instance, year after year from 1920 to 1935 large quantities of the Fujitsuri brand of cocaine illicit ly entered the United States, Canada, China and India. In reply to our demands that the traffic be suppressed we got only bland expressions and futile answers. "Japanese penalties (an open scandal) were two months’ imprisonment, usually suspended, and a 100 yen fine, for an offense which in this country would carry 5 to 10 years’ imprisonment, or capital punish ment in China. One shipment seized in Seattle from four Japanese totalled a million shots of morphine. It came from a government licensed factory, the Japanese Pharmaceutical Establishment at Osaha. We also seized a large shipment of morphine concealed 2 already invaded or marked for invasion by Japan* Under the Secretary*s policy of co-ordinating the work of Treasury law enforcement agencies, the Bur eau of Narcotics has had the active help of the Coast Guard, the Bureau of Customs, the Secret Service and the investigative units of the Bureau of Internal Revenue in fighting the Japanese opium offensive. years ago, an offensive in which, the weapons were nar cotic drugs, Secretary Morgenthau said today. The Secretary made the assertion in disclosing details of the battle conducted by the co-ordinated law enforcement agencies of the Treasury Department against what he said was an illicit opium traffic engaged in by Japan as an instrument of national policy for a decade before Pearl Harbor* Commissioner of Narcotics Harry J. Anslinger reported to the Secretary that he had abundant proof that Japan had defied international commitments by pro moting the opium trade. As head of the Treasury’s Bur-; eau of Narcotics, Mr. AnsjLinger has been in constant touch with both legal and illict trade in narcotics and for many years collaborated closely with the late Stuart J. Fuller, the American representative of the League of Nations Opium Advisory Committee, in international dis cussions« The Narcotics chief told Secretary Morgenthau that Japanese officials had had three obvious objectives in their traffic: to gain revenue, to corrupt Western nations and to weaken and enslave the peoples of lands TREASURY DEPARTMENT Washington FOR RELEASE, AFTERNOON NEWSPAPERS, Monday, Ja n u a ry 26, 19^-2. P r e s s S e r v ic e No. 29-32 Japan*s war on Western C i v i l i z a t i o n s t a r t e d t e n y e a r s ago, an o f f e n s i v e in which th e weapons were n a r c o t i c d rugs, S e c r e t a r y Morgenthau s a i d t o d a y . The S e c r e t a r y made t h e a s s e r t i o n in d i s c l o s i n g d e t a i l s o f t h e b a t t l e conducted by t h e c o - o r d i n a t e d law enforcement a g e n c ie s of t h e T re a s u r y Department a g a i n s t what he s a i d was an i l l i c i t opium t r a f f i c engaged in by Japan as an in s t r u m e n t of n a t i o n a l p o l i c y f o r a decade b e f o r e P e a r l Harbor. Commissioner of N a r c o t i c s Harry J . A n s l i n g e r r e p o r t e d t o the S e c r e t a r y t h a t he had abundant p r o o f t h a t Japan had d e f i e d i n t e r n a t i o n a l commitments by promoting t h e opium t r a d e . As head of th e T r e a s u r y ' s Bureau of N a r c o t i c s , Mr. A n s lin g e r has been in c o n s t a n t touc h w ith b o th l e g a l and i l l i c i t t r a d e in n a r c o t i c s and f o r many y e a r s c o l l a b o r a t e d c l o s e l y with t h e l a t e S t u a r t J , F u l l e r , t h e American r e p r e s e n t a t i v e of t h e League of N ations Opium Advisory Committee, in i n t e r n a t i o n a l d i s c u s s i o n s . The N a r c o t i c s c h i e f t o l d S e c r e t a r y Morgenthau t h a t Ja p a n e s e o f f i c i a l s had had t h r e e obvious o b j e c t i v e s in t h e i r t r a f f i c : to gain revenue, t o c o r r u p t Western n a t i o n s and t o weaken and en s la v e t h e p e o p l e s of l a n d s a l r e a d y invaded o r marked f o r in v a sio n by J a p an . Under t h e S e c r e t a r y ' s p o l i c y of c o - o r d i n a t i n g th e work of T re a su ry law enforcement a g e n c i e s , t h e Bureau of N a r c o t i c s has had t h e a c t i v e h e l p o f t h e Coast Guard, t h e Bureau of Customs, t h e S e c r e t S e r v i c e and t h e i n v e s t i g a t i v e u n i t s of t h e Bureau of I n t e r n a l Revenue in f i g h t i n g th e Ja p a n e s e opium o f f e n s i v e . “Wherever t h e J a p a n e s e Army goes, th e drug t r a f f i c f o l l o w s . In every t e r r i t o r y conquered by t h e J a p a n e s e , a l a r g e p a r t of th e people become e n s la v e d w ith d r u g s , “ Commissioner A n s lin g e r rep o rted , continuing: “We in t h e T re a s u r y Department have been in a war a g a i n s t Japanese n a r c o t i c s p o l i c y and p r a c t i c e s f o r more th a n t e n y e a r s . Many shipments from n a r c o t i c f a c t o r i e s l i c e n s e d by the Ja p a n e s e government have been smuggled i n t o th e U n ite d S t a t e s , For i n s t a n c e , y e a r a f t e r y e a r from 1920 t o 1935 l a r g e q u a n t i t i e s of t h e F u j i t s u r i b rand of c o c a in e i l l i c i t l y e n t e r e d t h e U n ite d S t a t e s , Canada. China and I n d i a . In r e p l y to our demands t h a t t h e t r a f f i c be s u p p r e s s e d we got only b la n d e x p r e s s i o n s and f u t i l e an swers . “Japanese penalties (an open scandal) were two m o n t h s ’ imprisonment, usually suspended, and a 100 yen fine, for an offense which in this country would carry 5 to 10 y e a r s ’ imprison ment, or capital punishment in China. One shipment seized in Seattle from four Japanese totalled a million shots of morphine. It came from a government licensed factory, the Japanese Pharmaceutical Establishment at Osaka. We also seized a large shipment of morphine concealed in soy beans which arrived in the United States on the same ship with Prince Chichibu, the Emperor’s brother. "We have experienced Pearl Harbors many times in the past in the nature of dangerous drugs from Japan which were meant to poison the blood of the American people. The Treasury Department’ Coast Guard for years has trailed Japanese vessels into and out of Honolulu and Pacific Coast ports to prevent dope cargoes from being thrown over the sides of vessels to smugglers* In order to combat this illicit traffic further, we enacted a law in 1 9 3 5 imposing heavy fines on the master or owner of any vessel visiting our ports on which unmanifested heroin, morphine or cocaine is found. "When we took over the Philippine Islands we prohibited the sale of smoking opium to the people by the government. The Japanese now have their eyes on this large potential revenue and if they should conquer those Islands, they would immediately re-establish a system of sale of opium to the Filipinos* They are master technicians at poisoning with drugs, "We attacked the Japanese opium policy year after year in the Opium Advisory Committee at Geneva and were always joined by our Canadian, Chinese and Egyptian colleagues, who had evidence to corroborate our allegations. We charged that the Japanese Army in China had been deliberately encouraging and spreading the illicit use of narcotics among the Chinese, with the inevitable result that, in the words of a resolution of the Opium Advisory Committee, ’the situation in those regions (in China) which are under Japanese influences has deteriorated to an alarming extent.’ "In all parts of Chinese territory under Japanese military occupation conditions were getting steadily worse. In North China all legal control of the narcotic trade had ceased to exist since its invasion by the Japanese in August 1937. The propor tions which the traffic had assumed could be gauged, for example, by shipments to the United States from the Japanese Concession in Tientsin. By one gang of traffickers alone, enough heroin was smuggled into the United States to supply 10,000 addicts for one year. We very properly protested at the failure of the Japanese authorities to observe the obligation to limit the manufacture and control the distribution of narcotics. -3Morphine and heroin were also used by the Japanese Army as a means of destroying the bodies and souls of the people In the areas which that army occupied. This is another form of chemical warfare against the Chinese people as deadly as that of the prohibited gases. It is not only a violation of the international opiuir/Conventions to which Japan is a party, but also a diabolical method of killing off the Chinese population in the occupied areas by slow poisoning. MJapanese authorities derive revenue from it to cover part of the costs of their invasion. This method of systematic poisoning is adopted by Japan to weaken Chinese resistance and to find traitors among the Chinese, because drug addicts will do anything to obtain drugs, and are useless in the fight against the invader, in which courage and determination must make up for the inferiority of China1s armaments. "Lieutenant-Commander Fletcher, in the House of Commons on December 2 2 nd, 193&* gave a vivid description of the position when he stated: ‘Pestilence and war are historically associated with each other, but it has been left to the Japanese to find a way of making a pestilence pay for w a r . 1 "Is it surprising that in such circumstances the ravages of drugs are decimating the Chinese people, to whom the Japanese military say they are bringing ‘order and p e a c e 1 and ‘the benefits of friendly collaboration1? 11It is difficult to estimate the number of opium addicts in the occupied areas; but there can be no question that in those areas, including Manchuria and Jehol, never at any time in their history has the situation been so revolting, never has the percentage of opium addicts and other drug addicts been so high, as since they have been occupied by the Japanese troops. It is equally beyond question that no such situation exists, or ever has existed, anywhere else in the world. "The Chinese people are not alone in suffering the conse quences of the situation in the occupied areas. Japanese authorities in China are feeding the international traffic and crossing the seas to poison other countries as well. "In*the Japanese-controlled areas of China, so great was the increase in drug addiction during a year that enormous quantities of opium have been imported into China to satisfy that addiction. The movements of opium and heroin into the Japanesecontrolled areas have been made with as much secrecy as possible. Japanese Concessions in China, especially that of Tientsin, and also the Hankow Concession before its evacuation by the Japanese authorities, constitute or constituted centers of illicit traffic; Manchuria and Jehol were transformed into narcotics arsenals; Japanese Consulates, such as that at Chengchow in Honan have acted as centers for the distribution of drugs; Japanese Army lorries have been used to transport narcotic drugs which have poisoned Chinese by the thousands almost all over China. “Huge quantities of opium arrived in North China and in Shanghai consigned to the Japanese Army and to Japanese firms. n addition, a large quantity (l , 0 0 0 chests) of opium was reported as being held in Macao to the order of the Japanese Army and Japanese firms, intended eventually for sale in either South China or in Shanghai. r * MA lot of ^28> chests from the 'Singapore Maru* arrived in Tangku and was distributed under the control of a Japanese Army officer at Tientsin; J00 chests were sent to Shanghai, via Dairen and were taken over by the Japanese Army. "Efforts were under way for some time to sell, under the control of a colonel of the Japanese Army who has been entrusted by that army with arrangements for the sale of opium in the Shanghai region, 460,000 pounds of opium (12,000,000 shots of heroin) which was consigned in care of the Mitsui Bussan Kaisha at Shanghai. "In addition to these activities by the Japanese Army, Japan itself and all Japanese possessions are havens for Japanese nationals engaged in the illicit drug traffic. "When the Japanese military forces of the regime now functioning in Manchuria and Jehol occupied northern X h a h a r there immediately resulted a forced increase in the area sown to poppy and in opium production; and morphine factories were at once started in Chahar by Japanese. One factory at Kalgan was reported to have an output of 5 0 kilograms of heroin daily, a sum fifteen times the legitimate needs of the world. Major General Kita, Japanese Military Attache in Shanghai, speaking of the Inner Mongolian crisis said, 'Reports that these Mongols are too poor to buy tanks, armored cars and munitions are untrue, for they have assets such as a vast opium harvest. We have been paid in k i n d . ' The situation in Manchuria is terrifying. The condition in that area is now almost beyond belief. This is the one region in the world where the governing authority not only makes no effort to* prevent the abuse of narcotic drugs but actually profits by the rapid increase of narcotic addiction. The degradation of the population of Manchuria through increasing use of opium and its -5 derivatives has come to a pass where even Japanese newspapers published in that area have been moved to protest. nP re s s r e p o r t s have s t a t e d t h a t , in 1935 1 “th e p r i n c i p a l c i t i e s o f M anchuria, n e a r ly 6 ,0 0 0 p e rso n s d ie d o f n a r c o t ic a d d ic t i o n w ith o u t any p r o v is io n f o r t h e i r in te r m e n t. An e y e -w itn e ss who was in Mukden in O cto b er 193& I s q u o te d as sa y in g : 'Adjacent to a rag-pickers1 market about a reeking open sewer are some fifty or more hovels inhabited by the/lowest type of prostitutes who, in addition to their regular occupation, also openly dispense narcotics. The setting was loathsome to a degree. Demonstrating with perculiar force the relation of cause to effect, there lay on an ash heap just behind the narcotic brothels seven naked corpses which had evidently been stripped of their rags by fellow addicts. It is generally stated that this is a daily sight, despite regular removal of the bodies by the Red Swastika Society. There was offered no other explanation than that these dead met their end through narcotics poisoning.' “During the last two years, there have been in Harbin many Japanese addicts, especially among the soldiers and officers of the Japanese Army. During the very severe Harbin winters, many addicts die in the street; their corpses are left for days in the streets, as nobody bothers to take them away; even the dogs sometimes will not eat them. “The Japanese Concession in Tientsin has become the heroin center of China proper and of the world, and it is from here that not only the Chinese race but all other countries of the world are being weakened and debauched. We should not be far short of the mark if we said that ^0% of all the illicit ’white drugs' of the world are of Japanese origin, manufactured in the Japanese Concession of Tientsin, around Tientsin, in or around Dairen or in other cities of M&nchuria, Jehol and occupied China, and this always by Japanese or under Japanese supervision. Words would fail to describe the revolting conditions in the dens of the Japanese Concession.” Commissioner Anslinger quoted the following text of a regulation appearing in a booklet which the Japanese Military Command distributes to Japanese soldiers: “Paragraph 1 5 . — The use of narcotics is unworthy of a superior race like the Japanese. Only inferior races, races that are decadent, like the Chinese, Europeans and the East Indians, are addicted to the use of narcotics. This is why they are destined to become our servants and eventually to disappear, - 6- "A Japanese soldier who is guilty of using narcotics becomes unworthy of wearing the uniform of the Imperial Japanese Army and of venerating our divine Emperor.“ “This Japanese Army creed l,s a joke," Mr. Anslinger con tinued. “One thousand hospital beds at Nanking are filled with heroin-addicted soldiers of the Japanese Army. Illicit drug trafficking acts like a boomerang, the purveyors of the drugs often becoming its Victims* Many Japanese Army officers in Manchuria have fallen victims to .the drug habit. Where Japanese influence advances, the drug traffic and drug addiction go with it. “These statements are supported by the minutes of the Opium Advisory Committee for the years 193^ to 19*4-0. Nearly all of the members of that Committee representing twenty-seven nations were of the opinion that Japan*s aggressive dope-spreading policy was just as definite an instrument of national policy as her military aggression.“ -oOo- If this Is accoaplished it will be a contribution to the financing of the war, the morale of our people, and the rictory of our cause. <* 24 * I f ® Americanscan be proud of the unity that has been shown by all sections of our people since Pearl Barber. is a precious thing. But national unity It will be subjected to many strains in the souths and years of trial abet' r this reason, with your help, I am going to fight for the speedy removal of any defects in the tax laws which may injure dollars in additional revenue} I should like the very first billion of that amount to be obtained by closing the remaining loopholes. '» ss •* th® American public has been inclined to shrug its shoulders at the defects in our tax lawsj yet they are not small matters, either morally or materially, nor are they matters beyond the control of the people themselves. It has been difficult until now to correct our tax laws because taxpayers have been too few and too indifferent. Until the great body of American taxpayers becomes thoroughly aroused to the injustices which have been left on the statute books year after year, we cannot expect to correct the laws. The remedy lies in your hands as taxpayers. of their income indefinitely. In oil company which may long ago have recovered tax free many times the cost of the wells which it is operating is still permitted a deduction of 27 1/2 per cent of the gross income from those very same wells. The allowance of percentage depletion costs the Treasury, on the basis of existing rates, at least $80,000,000 a year. I have pointed out the most glaring examples of these loopholes, but there are others, all of them unfair to the many for the advantage of the few, all of them dangerous to the unity we need to win this war. Perhaps * £1 * jour capital* Headless to ®ay, you are not permitted to deduct more than the cost of the machine* But you may be surprised to learn that this is not true of mines and oil wells whose owners are permitted oyer the years to deduct far more than the amount of money which they have put into the property for the conduct of their business* The so-called percentage depletion provision of the income-tax law allows these companies, not simply to deduct a percentage of the cost of their wells and mines each year until the entire cost has been made good, but to deduct an arbitrary percentage «* 30 * a year, in addition to the revenue that is lost because of the eoMunity-property tax privilege* Percentage Depletion The final loophole which I shall mention this afternoon is one against which the Treasury has struggled for years without avail* If you use a machine in your business and that machine can be expected to last for ten years, you are permitted to deduct each year for ten years one-tenth of the cost of that machine* Because you will probably have to buy a new machine at the end of ten years, this deduction Is a fair and reasonable method of allowing you to recover half of securities to M s he will pay a tax of $20,926 and M s wife will pay a tax of the same amount* T M s couple, at the a reduction of $10,896 in its income-tax under pi loophole could and the unfairness to the great mass of by taxing ^acl A -The ■■■'a n >i>1 o <&■eigmp"lie| 1wfeyynaw^ A tax returns TU. AsV^-£s&y'V''--£-''^ for^ husband and wife cos5/ i Treasury, on *■ fl X k o , 0 6 0 , 0 66 basis of rates t $EüliirÜMllj0UÖ*“ A - 18 to-y*. /^4ur4' present law, if & husband h t& income t .gnè^h m i iste» grid1hl'ar* A J uif e ^ e # IncemaEy each pays a tax on the separate income. progressive — Because the income«tax rates are that is* because the higher the income the greater is the rate of tax — a family in which both husband and wife hay© income pays less tax, in many instances, than a family haying the same amount of income all of which is received either by the husband or the wife, Let us take the case of a married taxpayer in the upper brackets haying a $100,000 Income from securities, Under the present law he would pay a tax of $52,748, But if he gives able to escape their fair share of the load at the expense of the married citisene in the rest of the country. The existence of this communi ty-property tax privilege costs the Treasury, on the basis Jt'S'S7 0001 of existing rates, about ^86,QQ6;-660-a year. Separate Returns for Husband and Wife The removal of this community-property privilege alone would not, however, reach a Ci still more widespread form of avoidance* SSaeiyj— (K V ¿¿A 4<weM*^tBc0Bte between ■ ¿ fit, X X t y 'X & '¿ m *- huwband axul jul£a« la such a manner that two A families having virtually the same economic position pay vastly different taxes. Under the *u4 - 16 ~ have the management and control of the income and in both cases the income is devoted to the family purposes. In a community-property State a husband who earns a $10*000 salary is allowed to report only $5*000 of that salary as his income and his wife may report the other $5,000 as hers. The two of them together will pay a total tax of $965. In the thirty-nine other States* however* the husband who earns a $10*000 salary must report that salary as M s pay a tax of $1,505 on it. income and must Thus the married citiaeas of nine out of forty-eight States are - IS - fit existence of this loophole costs the Treasury, at present tax rates, about $200,000,000 a year. A second source of tax discrimination exists in the nine States having what is called the community property system* In a commun!ty*preperty State the law assumes that the income of the husband belongs equally to the husband and wife* let since the husband has full management and control of the whole income, he is, in practical effect, in no different position fro® a husband in a noa~comunliy~property State. Both of them - 14 - no matter how high the tax rates may be for others, a taxpayer is not obliged to contribute anything in this hour of his country's peril, if only he can afford to lay his hands upon a sufficient amount of tax-exempt securities. The Federal Government last year took a first step toward remedying this situation by stopping the issuance of tax-exempt Federal securities. Sow that we are at war, now that the revenue needs of the Government have soared beyond all previous conceptions, it is high time, in m y opinion, to tax the income of State and municipal securities — not only the income from future issues, but also the income from those issues now outstanding * 13 specific examples of tax loopholes — and I could name a great many more than four — which have been allowed to remain on the statute books at the expense of the majority of our taxpayers* Tax-Ixempt Securities The first Is the continued existence of tax-exempt securities* At present, as you know, the interest from State and municipal bonds is exempt from Federal income tax* gives % m sr wealthy taxpayers This provision w „ not from A some income tax, but from all income taxes* matter how much m oney No may be needed for the war, tax Is the fiscal year that ends is June# Bow can the war efforts of our reach their peak level until such a situation getting tl as it Is In m m we he sure from everyone until to make them? we are drafting youni to fight and risk their lives for their country, >ge for a few So that you in mind, I should like to turn now to four -11 Yet I am * to say that the present so rry tax structure still falls short of the requirements of equity and the insistent needs of a nation at war. In spite of all our efforts of recent years our tax laws are still weakened by loopholes; it is still possible for a few thousand Individuals to escape their fair share of the burden and to pass their share onto the shoulders of the rest of us. I asked our Treasury tax experts the other day to compute the total am ount of revenue that had to be passed onto the shoulders of other taxpayers because of the existence of loopholes in the law. The answer was almost a billion dollars, about one-eighth of the entire - 10 - How that we are at wap, the fight becomea more necessary than ewer. The President has spoken again and again of the need of ¡asking our taxes not only effective but equitable as well. Only the other day, In his Budget message, he repeated that "a fair distribution of the war burden is necessary for national unity." War knows no avoidance. As the President said, "When our enemies challenged our country to stand up and fight they challenged each and every one of us." Every one of us has a direct stake in the outcome of this war, and each of us must, therefore, pay his fair share of the cost. For eight years at the Treasury I hare fought against the remaining vestiges of unfairness d n the statute hooks, and in almost every one of those eight years Congress has closed some loopholes and enacted some remedial provisions* In the Revenue Act of 1937 there was a whole series of reforms which mad# it impossible, among other things, for anyone to escape taxation by incorporating his yacht or country estate, or by creating a personal holding company These devices have now been outlawed* Since then the struggle to perfect the statutes has gone on without stopping* We are, however, entitled to ley down just this one premises that whatever hardship may be in store, we shall face it together? that it shall be distributed fairly and borne by all in their fair proportion, in with their ability to carry it. And that brings accordance me to the chief subject I should like to discuss this afternoon. This Administration has tried hard for years, and with a good deal of success, to remove tax injustices. two kinds: Such Injustices are of those which permitted some to escape their fair share of tax payments, and those which bore down too harshly upon certain taxpayer <, 7 «* tradition to face the facts* however harsh the facts may he# You know, without my saying so, that we cannot divert half of our national income to war production without “dislocating* our econom y without my from it s customary routine. You know, saying so, that we cannot spend forty billion dollars in this year 1942 without “disturbing* ordinary business and ordinary living. You know, too, that we cannot fight and win a life-and-&eath struggle, a war that encircles the whole planet, without discarding old habits, old fears, old notions of businisas-usual» - without flinching. before, that i t ’s 6 » Wt know, as I have said a million times cheaper to win a war than to lose one. This is not the time for me to discuss the new tax program. The President has said we must have nine billion dollars in new revenue. We have no more right to fall short of that goal than we would have to fall short of the President’s announced goal of sixty thousand plane® and forty-five thousand tanks in 1942. It will produce hardship; of course it will* Since when have the American people been daunted by hardship? It is part of our American <■» Involve. m In the near future, for example, we shall face a new challenge of a kind which I think too few of us have planned for or even considered. the war. That is the challenge of paying for It will come first on March 18th( fifteen million will be called upon to Income taxes for the m & winning of this war. It will come later in the of the increased war taxes which we shall have to impose upon ourselves in the new financial year. I am confident that we shall * 4 * total has now passed throe billion dollars, and the response in January has set new records in every direction* Whatever test m y going to surmount it* be given to us, we are Whatever hardship m y be in store for us, we are ready to take it and give it back to our enemies & hundredfold until victory is won* That was the pioneer way in the old Ohio days; that is the American way today* That is the way we shall keep faith with the pioneers and with the promise of a better world which they foresaw. We have only just begun to fight; we have only begun to learn what this war effort will answered the shock of Pearl Harbor by ourselves to ever confronted our country. 1 m that we can take accepting and other day, the of such number of se will be utterly unable to match us, If any further our .# let any of our ignificent response to the sale of <3N IP in the look at the You and all the others of our 130 million people have begun to speak In the only language that tyrants understand — the language of tanks and planes, guns and ships, and men with the courage and conviction to carry that message all the way to Tokyo and Berlin. fhat has happened, I wonder, to those who used to say that the pioneer spirit was dead? The pioneers who opened Ohio did not let danger or hardship daunt them} they regarded every danger as a challenge, every hardship an adventure. spirit. You in Cleveland have not lost that It is alive and strong, here in your State and in every State. I am very happy to be with you in Cleveland this afternoon, because this great city, far from any battle line, is on© of the places where the outcome of this war and the future of this country Is being decided* Here in the Cleveland area you have a great concentration of the forges and the assembly lines which are America fs real front lines at this moment* Bay and night your industrial wheels are turning, your hammers pounding, your fires burning, your workers toiling, to win the war* You in Cleveland are showing what our free people can do when they are aroused, and I take m y hat off to you* TREASURY DEPARTMENT Washington (The following address by SECRETARY MORGENTHAU before the Forum of the City Club of Cleveland is scheduled .to be delivered at the Statler Hotel in Cleveland, Ohio, at 1 P,M., Eastern Standard Time, Saturday, January 24, 1942, and is for release upon delivery at that time,) I am very happy to be with you in Cleveland this after noon, because this great city, far from any battle line, is one of the places where the outcome of this war and the future of this country is being decided. Here in the Cleveland area you have a great concentra tion of the forges and the assembly lines which are America’s real front lines at this moment. Day and night your indus trial wheels are turning, your hammers pounding, your fires burning, your workers toiling, to win the war. You in Cleveland are showing what our free people can do when they are aroused, and I take my hat off to you. You and all the others of our 130 million people have begun to speak in the only language that tyrants understand — the language of tanks and planes, guns and ships, and men with the courage and conviction to carry that message all the way to Tokyo and Berlin. What has happened, I wonder, to those who used to say that the pioneer spirit was dead? The pioneers who opened Ohio did not let danger or hardship daunt them; they regarded every danger as a challenge, every hardship an adventure. You in Cleveland have not lost that spirit. It is alive and strong, here in your State and in every State. Already we have answered the shock of Pearl Harbor by dedicating ourselves to the greatest job that ever confronted our country. We have shown that we can take marching orders 2 9 -8 3 - 2 - by accepting and applauding the great task the President set for us the other day, the task of making such an overwhelm ing number of weapons that the Nazis and the Japanese will be utterly unable to match us. If any further proof of our determination were needed, let any of our enemies look at the magnificent response to the sale of Defense Bonds and Stamps in the past few weeks. The t o t a l h a s now passed three billion dollars, and the response in January has set new records in every direction. Whatever test may be given to us, we are going to sur mount it. Whatever hardship may be in store for us, we are ready to^take it and give it back to our enemies a hundred fold until victory is won. That was the pioneer way in the old Ohio days; that is the American way today. That is the way we shall keep faith with the pioneers and with the promise of a better world which they foresaw. We have only just begun to fight; we have only begun to learn what this war effort will involve. In the near future, for example, we shall face a new challenge of a kind which I think too few of us have planned for or even considered. That is the challenge of paying for the war. It will come first on March 16th, when fifteen million Americans will be called upon to pay income taxes for the waging and the win ning of this war. It will come later in the payment of the vastly increased war taxes which we shall have to impose upon ourselves in the new financial year. I am confident that we shall meet those new requirements, and any require ments, without flinching. We know, as I have said before, that i t ’s a million times cheaper to win a war than to lose one. This is not the time for me to discuss the new tax pro gram. The President has said that we must have nine billion dollars in new revenue. We have no more right to fall short of that goal than we would have to fall short of the President’s announced goal of sixty thousand planes and forty-five thousand tanks in 1942. - 3 - It will produce hardship; of course it will. Since when have the American people been daunted by hardship? It is part of our American tradition to face the facts, however harsh the facts may be. You know, without my say ing so, that we cannot divert half of our national income to war production without "dislocating” our economy from its customary routine. You know, without my saying so, that we cannot spend forty billion dollars in this year 1942 without "disturbing" ordinary business and ordinary living. You know, too, that we cannot fight and win a life-and-death struggle, a war that encircles the whole planet, without discarding old habits, old fears, old notions of business-as-usual. We are, however, entitled to lay down just this one premise: that whatever hardship may be in store, we shall face it together; that it shall be distributed fairly and borne by all in their fair proportion, in accordance with their ability to carry it. And that brings me to the chief subject I should like to discuss this afternoon. This Administration has tried hard for years, and with a good deal of success, to remove tax injustices. Such injustices are of two kinds: those which permitted some to escape their fair share of tax payments, and those which bore down too harshly upon certain taxpayers. For eight years at the Treasury I have fought against the remaining vestiges of unfairness in the statute books, and in almost every one of those eight years Congress has closed some loopholes and enacted some remedial provisions. In the Revenue Act of 1937 there was a whole series of reforms which made it impossible, among other things, for anyone to escape taxation by incorporating his yacht or country estate, or by creating a personal holding company. These devices have now been outlawed. Since then the struggle to perfect the statutes has gone on without stopping. 4 - Now that we are at war, the fight becomes more neces sary than ever. The President has spoken again and again of the need of making our taxes not only effective hut equitable as well. Only the other day, in his Budget Message, he repeated that !,a fair distribution of the war burden is necessary for national unity.” War knows no avoidance. As the President said, “When our enemies challenged our country to stand up and fight they challenged each and every one of u s . ” Every one of us has a direct stake in the outcome of this war, and each of us must,- therefore, pay his fair share of the cost. Yet I am sorry to say that the present tax structure still falls short of the requirements of equity and the insistent needs of a nation at war. In spite of all our efforts of recent years our tax laws are still weakened by loopholes; it is still possible for a few thousand indi viduals to escape their fair share of the burden and to pass their share onto the shoulders of the rest of us. I asked our Treasury tax experts the other day to compute the total amount of revenue that had to be passed onto the shoulders of other taxpayers because of the existence of loopholes in the law. The answer was almost a billion dollars, about one-eighth of the entire receipts from income tax in the fiscal year that ends in June. How can the war efforts of our people reach their peak level until such a situation has been remedied? Can we be sure of getting the maximum response from everyone until everyone feels that the tax laws are as fair as it is humanly possible to make them? In wartime, when we are drafting young men to fight and risk their lives for their country, any special privilege for a few becomes inexcusable. So that you may know exactly what I have in mind, I should like to turn now to four specific examples of tax loopholes — and I could name a great many more than four -which have been allowed to remain on the statute books at the expense of the majority of our taxpayers. - 5 - Tax-Exempt Securities The first is the continued existence of tax-exempt securities. At present, as you know, the interest from State and municipal bonds is exempt from Federal income tax. This provision gives wealthy taxpayers a possible refuge, not from some income tax, but from all income taxes. No matter how much money may be needed for the war, no matter how high the tax rates may be for others, a taxpayer is not obliged to contribute anything in this hour of his country’s peril, if only he can afford to lay his hands upon a sufficient amount of tax-exempt securities. The Federal Government last year took a first step toward remedying this situation by stopping the issuance of tax-exempt Federal securities. Now that we are at war, now that the revenue needs of the Government have soared beyond all previous conceptions, it is high time, in my opinion, to tax the income of State and municipal securi t i e s - - not only the income from future issues, but also the income from those issues now outstanding. The existence of this loophole costs the Treasury, at present tax rates, about $200,000,000 a year. Community Property A second source of tax discrimination exists in the nine States having what is called the community property system. In a community-property State the law assumes that the income of the husband belongs equally to the husband and wife. Yet since the husband has full management and control of the whole income, he is, in practical effect, in no dif ferent position from a husband in a non-community-property State. Both of them have the management and control of the income and in both cases the income is devoted to the familv purposes. J In a community-property State a husband who earns a $10,000 salary is allowed to report only $5,000 of that salary as his income and his wife may report the other $5,000 as hers. The two of them together will pay a total tax of $965. In the thirty-nine other States, however, the husband who earns a $10,000 salary must report that salary as his income and must pay a tax of $l,305x on it. Thus the married citizens of nine out of forty-eight States are able to escape their fair share of the load at the expense of the married citizens in the rest of the country. The existence of this community-property tax privilege costs the Treasury, on the basis of existing rates, about $55,000,000 a year. Separate R e turns for Hu sband and Wife The removal of this community-property privilege alone would not, however, reach a still more widespread form of avoidance. I refer to the method of separating a husband’s and w i f e ’s investment income — as distinguished from the income they get from salary and wages — in such a manner that two families having virtually the same economic position pay vastly different taxes. Under the present law, if a husband and wife both have investment income, each pays a tax on the separate income. Because the income-tax rates are progressive -- that is, because the higher the income the greater is the rate of tax -- a family in which both husband and wife have investment income pays less tax, in many instances, than a family having the same amount of income all of which is received either by the husband or the wife. Let us take the case of a married taxpayer in the upper brackets having a $100,000 income from securities. Under the present law he would pay a tax of $52,748. But if he gives half of those securities to his wife, he will pay a tax of $20,926 and his wife will pay a tax of the same amount. This couple, at the cost of a moderate gift tax, has thus secured a perpetual reduction of $10,896 in its income-tax liability under present rates. The loophole could be closed and the unfairness to the great mass of taxpayers removed by taxing the investment income of each married couple as a unit. - 7 - The use of separate tax returns for the investment income of husband and wife costs the Treasury, on the basis of present rates, about $260,000,000 a year, in addition to the revenue that is lost because of the community-property tax privilege. Percentage Depletion The final loophole which I shall mention this afternoon is one against which the Treasury has struggled for years without avail. If you use a machine in your business and that machine can be expected to last for ten years, you are permitted to deduct each year for ten years one-tenth of the cost of that machine. Because you will probably have to buy a new machine at the end of ten years, this deduction is a fair and reasonable method of allowing you to recover your capital. Needless to say, you are not permitted to deduct more than the cost of the machine. But you may be surprised to learn that this is not true of mines and oil wells whose owners are permitted over the years to deduct far more than the amount of money which they have put into the property for the conduct of their business. The so-called percentage depletion provision of the incometax law allows these companies, not simply to deduct a per centage of the cost of their wells and mines each year until the entire cost has been made good, but to deduct an arbitrary percentage of their income indefinitely. An oil company which may long ago have recovered tax free many times the cost of the wells which it is operating is still permitted a deduction of 27 1/2 per cent of the gross income from those very same wells. The allowance of percentage depletion costs the Treasury, on the basis of existing rates, at least $80,000,000 a year. I have pointed out the most glaring examples of these loopholes, but there are others, all of them unfair to the many for the advantage of the few, all of them dangerous to the unity we need to win this war. Perhaps the American - 8 - public has been inclined to shrug its shoulders at the defects in our tax laws; yet they are not small matters, either morally or materially, nor are they matters beyond the control of the people themselves. It has been difficult until now to correct our tax laws because taxpayers have been too few and too indifferent. Until the great body of American taxpayers becomes thoroughly aroused to the injustices which have been left on the statute books year after year, we cannot expect to correct the laws. The remedy lies in your hands as taxpayers. We Americans can be proud of the unity that has been shown by all sections of our people since Pearl Harbor. But national unity is a precious thing. It will be subjected to many strains in the months and years of trial ahead. For this reason, with your help, I am going to fight for the speedy removal of any defects in the tax laws which may injure our national morale. We need nine billion dollars in additional revenue; I should like the very first billion of that amount to be obtained by closing the remaining loopholes. If this is accomplished it will be a contribution to the financing of the war, the morale of our people, and the victory of our cause. TREASURY DEPARTMENT Washington FOR RELEASE, MORNING NEWSPAPERS, Press Serrloe Ho. 29-84 Monday, February 2, 1942» 1/53742 Secretary of the Treasury Morgenthau today made public the first of a series of tabulations from "Statistics of Incase for 1939, Part 2, Compiled from Corporation Income and (Deolared Value) Excess-profits Tax Returns and Personal Holding Company Returns," prepared under the direction of Commissioner of Internal Revenue Guy T. Helvering* The oomplete report will be published at a later date. RETURNS INCLUDED . The returns oovered by these tabulations are, in general, for the calendar year ending December 31, 1939. However, a considerable number of returns for a fiscal year, other than the calendar year, ending within the period July 1939 through June 1940, are tabulated with the oalendar year returns for 1939. There are also included part-year returns for which the greater part of the accounting period falls in 1939. Data are tabulated from Forms 1120 and 1120A filed by domestic corporations and resident foreign corporations not exempt from tax under seetlon 101, Internal Revenue Code as amended; also from Form 1120L filed by domestic life insurance companies and by foreign life insurance companies carrying on insurance business within the - 2 - United States or holding reserve funds upon business transacted within the Uhlted States* The data are tabulated froai the returns as filed by the taxpayer* and prior to revisions that nay be made as a result of audit by the Bureau of Internal Revenue* Amended returns and tentative returns are not included in the tabulations* TAXES UNDER INTERNAL REVENUE CODE AS AMENDED The corporation income tax rates in sections 13 and 14 of the Internal Revenue Code as amended* became effective for taxable years beginning after December 51* 1938* and the (declared value) excess«* profits tax rates in section 600 of the Code as amended* became effective for income-tax taxable years ending after «Nine 30* 1959* Consequently* the majority of returns oovered by this statement are filed under the provisions of the Internal Revenue Code as amended* The corporation income and (declared value) excess-profits tax rates are the same for all returns oovered by this statement* since the Internal Revenue Code* approved Pebruary 10* 1939* contains the tax rates whioh were in force on January 2* 1939— those of the Revenue Act of 1938* Moreover* the income and (deolared value) excess»profits tax rates* applicable to all returns for 1959 filed through December 31* 1940* are the same as those applicable to the majority of returns for 1938 filed through December 51* 1939* The name of the existing excess-profits tax in section 600 of the Internal Revenue Code was changed to "Declared Value Excessprofits Tax*" effective Pebruary 10* 1939 (see seo* 606 of the Seoond Revenue Act of 1940* approved October 8* 1940)* The new name is • 3 • used throughout this series of tabulations» even though it did not appear on the returns for 1939» many of whioh were filed prior to the date of approval of the Second Revenue Aot of 1940« NUMBER OF RETURNS, NET INCOME OR DEFICIT, TAX, AND DIVIDENDS PAID IN CASH AND ASSETS OTHER THAN CORPORATION’S OWN STOCK The number of corporation income and (declared value) excess«» profits tax returns for 1939 is 515,960, of whioh 199,479 show net income for (declared value) excess-profits tax computation of $8,826,713,029, while 270,138 show a defioit of $2,092,147,535, and 46,343 have no inoome data (inaotive corporations). The inoome tax is $1,216,450,292, the (deolared value) exoess-profits tax $15,805,962, the total tax $1,232,256,254, The total amount of dividends paid in oash and assets other than corporation* s own stock is $5,746,738,970, of whioh $5,562,273,122 is reported on returns with net inoome and $184,465,848 on returns with no net income* Of the 199,479 returns with net income for (declared value) excess-profits tax computation, 170,380 show only inoome tax liability, 49 show only (deolared value) excess-profits tax liability, 26,122 show both inoome tax and (deolared value) excess-profits tax liabil ities and 2,928 show no tax liability. As compared with 1938, the total number of returns decreased 4,541, or 0,9 percent, the number of returns with net income for (deolared value) excess-profits tax computation increased 29,595, or 17.4 percent, the number of returns with no net income decreased 31,010, or 10.3 percent, and the number of returns with no net income data (inaotive corporations) decreased 3,126, or 6*3 percent* The net income for (declared ralue) excess-profits tax computation in creased #2*300,733*772, or 36«3 percent* end the deficit decreased |760*950*192* or 26*7 percent. The income tax increased #362*872*361* or 42*5 percent* the (declared value) excess-profits tax increased #9*818*326* or 164*0 percent* and the total tax increased #372*690*687 or 43*4 percent* DESCRIPTION OF TABLES In the first of the two attached tables* there are shown* by States and Territories and by returns with net income and with no net income* the number of returns* total compiled receipts* net income or deficit* income tax* (declared value) excess-profits tax* and dividends paid in oash and assets other than corporation's own stock* The second table presents the following data for taxable returns with net income* by net income olasses* cross-classified by returns with income tax only* those with (deolared value) excessprofits tax only* and those with both types of tax* Number of returns* net income* income tax* and (deolared value) excess-profits tax* There are also shown* by net income olasses* for returns with net income but with no tax* the number of returns and net income % and by defioit classes* for returns with no net inoome* the number of returns and deficit - 5ITEM S TABULATED "Net income" or "Deficit" is the amount reported for (declared value) excess-profits tax computation (item 28, page 1, Forms 1120 and 1120A) and is equal to the difference between "Total inoome" and "Total deductions" (items 14 and 27, respectively, page 1, Forms 1120 and 1120A). The amount tabulated as "Inoome tax" represents an amount prior to the allowance of credit claimed for inoome and profits taxes paid to a foreign country or United States possession* The "(Declared value) excess-profits tax" is the amount reported as a tax liability (item 8, Schedule A, page 2, Form 1120 and item 40, page 1, Form 1120A)* This amount is allowed as a deduction in the computation of net inoome for inoome tax purposes and is reported as item 29, page 1, Forms 1120 and 1120A, unless the return is rendered on a cash basis* If the cash basis of accounting is used, the deduction is the amount of (declared value) excess-profits tax aotually paid within the taxable year covered by the return* In using the amounts of net inoome or deficit, attention is oalled to the two special deductions from gross inoome permitted life insurance companies under seotion 203 (a), Internal Revenue Code as amended, relating to reserve funds required by law and reserve ibr dividends* On 1939 returns with net income these deduc tions aggregate #17,344,708, and on returns with no net Inoome, #899,758,292* Table 1. - Corporation returns, 1939, by States and Territories and by returns with net income and with no net income» Humber of returns, total receipts, net Income or deficit, income tax, (declared value) excess-profits tax, and dividends paid in cash and assets other than corporation's own stock (Honey figures in thousands of dollars) States and Territories n 12 ,18 14 IS 16 17 18 19 20 21 2 2 23 24 25 26 27 28 29 80 31 32 33 34 35 36 37 38 39 40 41 42 48 44 45 46 47 48 49 50 51 Alabama Alaska Arisona Arkansas California Colorado Connecticut Delaware District of Columbia Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Loul siena Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraeka Nevada New Ha^>shire New Jersey New Mexico New Torte North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming Total For footnotes, see page 8. Total number of returns 2/ 3,432 274 1|422 2,479 24,097 5,355 9,286 3,109 2,710 9*450 5,425 809 1,991 55,409 11,668 7,378 4,559 4,870 6,119 5,645 6,080 23,116 15,885 10,151 2,509 14,515 2,552 4,266 904 1,484 27,820 997 122,070 6,210 2,235 24,904 5,424 4,878 25,094 3,479 5,405 2,159 4,791 15,723 2,646 1,281 6,946 10,455 4,665 14,955 1,150 515,960 Number of returns 1,612 95 512 1,245 9,221 1,862 5,556 1,553 1,310 5,405 2,697 503 631 14,695 5,854 5,501 2,070 2,862 2,751 1,385 2,700 9,185 6,752 4,086 1,212 6,372 1,022 1,766 280 647 7,925 446 36,994 3,342 827 11,621 2,019 1,773 9,869 1,326 1,677 797 2,468 6,935 1,015 471 3,541 3,507 2,128 5,958 552 199,479 Total compiled receipts 4/ Returns with net income n __ Net Incorna (Declared income ¡ / tax value) excessprofits tax 432,537 10,464 109,438 256,203 5,093,991 528,362 1,732,237 1,498,834 626,150 605,649 888,768 261,775 104,247 11,990,379 1,668,733 945,178 571,674 906,294 750,672 320,552 1,121,800 4,402,716 6,916,261 1,868,411 215,654 3,045,740 167,891 433,791 265,237 181,117 3,031,265 64,317 27,152,888 1,432,150 77,174 7,135,306 854,524 425,617 8,345,021 590,678 434,054 85,532 848,625 2,482,033 2a, 719 108,080 1,077,092 868,062 575,469 1,857,268 47,794 25,213 1,105 6,710 14,553 454,985 46,794 149,057 428,284 46,468 40,502 69,108 28,604 9,027 700,077 117,924 52,417 27,656 65,188 52,287 25,826 117,498 311,012 609,127 111,853 11,285 240,452 ii,ea 29,724 12,644 12,707 342,294 3,747 2,536,806 114,597 2,a4 555,217 62,955 a , 982 692,260 45,698 23,107 3,828 55,267 ia,416 16,550 8,862 116,481 63,825 45,628 120,094 5,960 105,658,558 8,826,713 3,958 159 991 2,213 a , 084 6,982 22,401 38,584 6,008 5,878 10,873 3,729 1,289 105,965 18,661 8,191 8,969 10,223 7,560 3,7a 14,175 45,2 a 94,979 16,336 1,699 37,655 1,747 4,541 1,289 1,885 41,2a 524 320,448 18,» 9 347 85,885 9,235 3,ao 94,234 6,668 3,692 sa 8,865 26,294 2,262 1,271 17,866 8,860 6,745 19,245 ae 1,216,450 60 5 14 49 830 74 265 264 36 160 140 12 16 1,482 sa 139 49 136 127 108 195 714 6a 167 44 404 51 53 12 25 675 9 3,227 224 7 1,395 73 72 1,602 260 49 19 230 309 29 28 456 181 143 285 16 15,806 Dividends paid in cash and assets other than corporation's own stock 12,434 490 s,sa 8,204 a 6,262 29,003 80,096 348,005 28,986 18,755 38,529 18,245 e,ae 577,908 59,688 22,678 19,359 88,480 52,205 18,127 115,991 195,a e 554,585 60,529 4,909 144,703 7,294 18,958 7,624 8,057 2a, 205 1,893 1,710,547 60,599 1,157 293,710 49,715 11,574 ae,572 26,261 7,154 2,198 55,160 132,085 9,6a 4,495 59,212 54,i a 87,887 54,542 2,ae 5,562,278 Number of returns 1,593 125 as 1,001 11,911 2,650 5,166 1,184 1,180 4,909 2,495 283 708 17,260 4,809 2,ea 2,055 2,170 2,834 1,936 2,745 12,763 7,589 4,584 1,082 6,735 1,190 2,007 406 782 17,728 422 77,258 2,591 1,018 11,940 2,850 2,a s 12,809 1,876 1,491 1,110 2,072 7,250 1,187 700 5,a9 4,985 2,190 7,257 479 270,188 Retums with no net income j j Tota Deficit 2/ compiled receipts 4/ 156,680 5,832 49,544 56, a 4 1,827,360 179'597 554,566 115,917 94,393 202,022 179,853 30,453 36,535 2,366,689 sa,m a2, 329 a s ,880 165,948 265,353 154,204 422,s a 1,544,011 764,212 518^213 69,865 797,905 42,565 ia,135 11,144 57,382 l,a4,023 18^895 8,427,106 169^625 32,634 1,268,725 428,084 186,309 1,932,194 202,296 95,576 34,180 180, 7 a 964,817 67,713 59,554 211,603 285,962 152,385 465,864 16'922 27,a9,886 8,222 586 3,607 5'l93 97'551 15'751 47j909 12,415 61700 17,785 9'835 2,027 2,052 la, 006 55^043 a , 938 10^997 10, S U 14,495 11,014 58,940 120,218 72,922 42,385 4,596 69,610 Slll4 15,195 1^686 3,480 125'570 1,663 607'750 8,827 1,683 93,200 a , 966 14,586 149^259 9'336 4'a2 1,673 18^574 55j797 3,554 4Ì26S a , 478 25^565 13,286 45^001 1,352 2,092,148 Dividends paid in cash and assets other than corporation's 1*251 5 63 328 7,802 3'058 5^955 2*889 '264 1,263 1^158 126 188 19,440 2,548 l'l06 2*847 1,815 3^262 '267 1,827 4^984 2*314 l'884 455 3,730 '252 427 61 ia 9,758 59 36,652 '976 as 13,302 13^ 916 281 15,926 '696 294 141 2,903 8*535 195 325 2,666 2^492 615 2,878 'ill 184,466 1 2 3 4 5 6 7 8 9 10 11 u 18 14 16 18 17 18 19 < 0 n2 2 28 24 26 26 27 28 29 30 81 82 33 34 35 Tabla 2. - Corporation raturas, 1939, with nst income, ly nst income classes* Taxable, cross-classified tjjr type of tax liability, showing number of retains, net lncaem, incone tax, and (declared value) excess-profits tax, and nontaxable, showing number of returns and net income; also corporation returns with no net income, by deficit classes, ¿lowing number of returns and deficit (Net income and deficit classes and money figures in thousands of dollars) Returns with net income ¡ / Total Net income classes jr f Under 1 1 under 2 2 under S 5 under 4 4 under 5 S under 10 10 under IS 15 under 20 20 under 25 25 under 50 50 under 100 100 under 250 250 under 500 500 under 1,000 1,000 under 5,000 5,000 under 10,000 10,000 and over Total Nunber of returns Net income J j Income tax (Declared value) excessprofits tax Number of returns Taxable Income tax only (Declared value) excess-profits tax only 5/ Net income J j Income tax Number of Net inoome ¿/ (Declared returns value) exceseprofits tax 73,604 24,310 14,983 10,404 7,974 21,701 10,437 6,351 5,269 9,591 6,314 4,649 1,885 1,046 943 125 93 25,650 56,177 56,901 36,105 35,759 155,145 128,035 110,340 118,469 331,879 445,564 717,816 661,577 729,305 1,997,062 887,859 2,376,090 3,086 4,179 4,584 4,279 4,254 18,895 16,028 13,933 15,357 51,124 70,006 109,372 99,151 107,679 278,974 116,779 298,970 99 148 163 163 153 685 528 420 444 1,045 1,595 2,141 1,518 1,721 3,198 1,055 934 67,224 20,882 12,479 8,501 6,590 17,550 8,530 5,156 4,250 7,606 4,928 5,626 1,483 818 790 101 86 23,157 30,203 30,687 29,543 29,554 125,504 102,459 89,678 95,712 268,909 347,721 561,912 519,655 574,458 1,692,818 704,629 2,113,747 2,826 5,654 5,711 3,560 3,571 15,479 12,937 11,594 12,465 41,470 54,512 84,596 76,982 82,652 234,972 92,088 264,158 12 2 5 4 1 11 6 1 1 2 1 1 1 4 3 12 15 4 78 75 15 23 70 85 210 386 1 2,842 25 - - - 199,479 8,826,713 1,216,450 15,806 170,580 7,340,544 1,000,829 49 5,322 81 Returns with net income ¡ / - Continued Taxable - Continued Nontaxable 6/ Both income and (declared value) excess-profits tax Net income er deficit classes ¡ / Under 1 1 under 2 2 under 8 3 under 4 4 under 5 5 under 10 10 under 15 15 under 20 20 under 25 25 under 50 50 under 100 100 under 250 250 under 500 500 under 1,000 1,000 under 5,000 5,000 under 10,000 10,000 and over Total Por footnotes, see page 8. Number of returns 5,436 2,993 2,216 1,701 1,251 3,821 1,957 1,115 966 1,653 1,311 953 571 Net income ¡ / Income tax 186 20 7 2,181 4,355 5,504 5,865 6,615 27,133 23,714 19,282 a , 584 58,220 90,636 144,727 130,827 146,288 266,575 156,144 262,345 260 525 673 719 683 5,415 5,091 2,538 2,892 9,655 15,693 24,776 22,168 25,028 44,002 24,6a 34,812 26,122 1,370,7a 215,621 as (Declared value) excessprofits tax 99 148 163 168 153 684 527 420 444 1,044 1,592 2,140 1,517 Number of returns 3,173 1,053 954 932 453 285 198 132 339 144 79 52 130 74 69 SO IS 16 4 - 15,775 2,928 1 ,7 a Net income ¡ / 558 635 697 682 586 2,4a 1,787 1,565 Returns with no net income ¡ / Number of retuns Deficit 2/ 5,123 10,968 10,708 8,559 35,530 27,066 - 154,828 56,596 18,844 11,568 7,896 18,157 7,038 3,794 2,294 4,745 2,423 1,386 582 187 167 18 15 150,525 129,086 346,130 134,020 258,568 112,326 8/316,481 2,092,148 i, ia 4 ,6 a 46,148 52,269 46,258 40,106 55,284 127,588 85,900 65,507 a , 126 164,899 166,724 212, 2a (7 (7 (r (7J (7] Vi 1 (7) Í71 1 (71 1 2 - 8 - Footnote« for Tables 1 and 2 1/ Return« filed in a State may not be a complete coverage of all corporations whose principal place of business is looated therein« as a corporation may file an inoome tax return either in the collection district in which it has its principal plaoe of business or in the collection district in which it has its principal offioe or agency, and conversely, a tabulation for a given State may inolude data from returns of corporations having their principal plaoe of business in another State* 2/ Includes number of returns of inactive corporations* 2/ "Wet inoome" or "Deficit" is the amount reported for (declared value) excessprofits tax computation (item 28, page 1, Forms 1120 and 1120A), and is equal to the difference between "Total income" and "Total deductions"' (items 14 and 27, respectively, page 1, F o m a 1120 and 1120A). 4/ "Total compiled receipts" corresponds to "Total income" (item 14, page 1, Forms 1120 and 1120A) after trans ferring to deductions the negative Items of inoome reported under sources of inoome and adding "Cost of goods sold," "Cost of operations,"* (items 2 and 5, respectively, page 1, Forms 1120 and 1120A) and "Wholly tax-exempt interest on Government obligations*" 6/ Returns with (declared value) excessprofits tax liability on which "(Declared valve) excess-profits tax" and/or "Interest on obligations of the Doited States subject to (declared value) excess« profits; tax" are in excess of "Wet for (deolared value) excess-profits tax computation." 6/ Returns without (deolared value) excessprofits tax liability on whioh "Interest on obligations of the United 8tates subject to (deolared value) excessprofits tax" is in excess of "Wet inoome for (deolared value) exoessprofits tew computation." 2/ Less than $500* &/ Includes 46,343 returns of inactive corpo rations* TREASURY DEPARTMENT Washington FOR R E L E A SE , AFTERNOON PAPERS, Wednesday, February A. IQ 42t Press Servioe No. 29-85 1/23/42 Secretary of the Treasury Morgenthau today made public the second in the series of tabulations from "Statistics of Income for 1939, Part 2, Compiled from Corporation Income and (Declared Value) Excess-profits Tax Returns and Personal Holding Company Returns," prepared under the direction of Commissioner of Internal Revenue Guy T. Helvering. The attached table shows hy major industrial groups and minor industrial groups and by returns with net income and with no net income, the number of returns, total compiled reoeipts, net income or deficit, inoome tax, (declared value) excess-profits tax, and dividends paid in oash and assets other than corporations own stock. In general, corporations are classified industrially on the one business activity which accounts for the largest percentage of "Total receipts." Therefore, the industrial groups oontain corporations not engaged exclusively in the industries in whieh they are classified. "Total reoeipts" means the sum of the following items1 Gross sales (where Inventories are an ineome-detemlning factor); gross receipts (where inventories are not an income-determining faotor); interest on loans, notes, mortgages, bonds, bank deposits, etc.; taxable interest on obligations of the United States; rents; royalties; capital gain; gain from sale or exchange of property other than capital iy \ - 2 - assets; dividends; and other income required by law to be included in gross income* The industrial groups for 1939 are comparable with those for 1958* The Industrial classification tor 1939 and 1938 is based on the Standard Industrial Classification* issued by the Division of Statistical Standards* Bureau of the Budget* Executive Offioe of the President* Since the Standard Industrial Classification* as at present designed* is on an establishment basis* oertaln modi fications are neoessary to make it applicable to corporation inoome tax returns which are filed on an ownership basis* "Net inoome" or "Defioit" is the amount reported for (declared value) excess-profits tax computation (item 28* page 1* Forms 1120 and 1120A) and is equal to the difference between "Total inoome" and "Total deductions" (items 14 and 27* respectively* page 1* Forms 1120 and 1120A)* The amount tabulated as "Income tax" represents an amount prior to the allowance of eredit claimed for income and profits taxes paid to a foreign country or Chited States possession* Thr "(Deolured *»1««) teas" la the Mount ra> parted i* a tax liability (it«* S, lehadula A. pa*« 8, P a m and itaa 40 , 1180 pa*« 1 , Pam HiOA). Phis aaeuat la allowed aa a da« duatlaa la tbs eeaputatiea ef nat ineeae far iaeane taa purpsaea aad la raparted aa itaa 88, page 1 , Perns 1180 a ad 11B0A, unless the return la readered aa a aaah baala. if the eaah basis ef aeeeuatiag is used, tbs deduatlaa is the anetnt ef (deelared value) exeess-prefits tax aatually paid withia the taxable year severed by the return. / - 3 - V In analysing the data compiled from returns classified under the minor industrial group "Life insurance companies,tt allowance should be made for the two special deductions from gross income permitted life insurance companies under section 203(a), Internal Revenue Code as amended, relating to reserve funds required by law, and reserve for dividends* On 1939 returnr with net income these deductions aggregate $17,344,708, and on returns with no net income, $899,758,292. Corporation returns, 1939, by major industrial groups and minor industrial groups and by returns with net income and with no net incomet Number of returns, total compiled receipts, net income or deficit, income tax, (declared value) excess-profits tax, and dividends paid in cash and assets other than corporation's own stock (Money figures in thousands of dollars) Total number of returns 2/ 12 5 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 2 2 23 Number of returns Total compiled receipts 4/ Returns with net income 3/ Net income 3/ Income tax 515,960 14,434 2,587 117 126 142 1,451 113 638 130 2,053 5,974 5,206 768 1,916 1,586 311 199,479 3,622 353 28 17 45 182 31 50 23 505 1,892 1,656 236 818 709 106 105,658,338 1,713,324 688,506 82,418 298,557 102,713 115,762 39,319 49,537 18,136 390,621 403,427 317,290 86,137 211,353 149,867 61,284 8,826,715 250,590 134,383 6,149 70,224 10,546 27,958 12,218 7,288 507 18,257 69,695 60,240 9,456 27,407 14,509 12,875 1,216,450 36,882 18,766 839 8,741 1,598 4,517 2,008 1,063 77 2,802 10,854 9,262 1,592 4,356 2,277 2,077 19 1,774 89,347 10,144 1,926 633 3 31 43,002 5,040 875 257 201 1,482 49,-994,914 9,059,007 754,949 361,482 23 341 3,948,328 418,789 48,970 39,860 3 27 624,375 67,375 7,995 6,386 1,518 934 699 563 768,101 3,859,587 54,476 50,089 1,256 69 2,401 167 924 696 28 1,242 123 417 913,016 150,366 1,026,839 559,495 484,538 516 3,191 686 348 163 1,960 34 307 4,923 861 140 1,656 326 94 73 1,144 19 116 2,578 519 517 292 (Declared value) excessprofits tax 15,806 388 184 15 4 14 150 1 5 42 71 37 33 86 61 25 Dividends paid in cash and assets other than corporation's own stock Returns with no net income 3/ Deficit 3/ Number of Total compiled returns receipts 4/ Dividends paid in cash and assets other than corporation's own stock 5,562,273 199,291 120,457 4,552 56,359 11,113 29,§27 10,896 8,230 387 12,193 47,720 42,412 5,308 18,101 6,350 11,751 270,138 7,198 1,020 57 50 56 592 40 225 96 1,315 3,382 2,982 400 942 770 163 27,219,886 1,163,220 155,436 106,479 16,520 3,141 19,859 1,141 8,296 183,743 425,584 345,900 314,937 30,963 45,359 39,905 5,078 2,092,148 119,414 11,731 1,707 1,329 526 5,714 457 1,998 18,545 24,425 57,561 54,012 5,549 5,732 4,513 1,205 184,466 18,369 869 750 21 87 2 9 462 819 15,921 15,799 122 293 161 132 1 9,701 640 33 12 435 2,176,241 236,660 31,781 22,676 9 443 43,181 4,697 976 554 377 7,198 8,511,456 1,069,132 163,868 61,648 14 1,421 580,572 31,626 4,227 2,305 6 35,359 3,027 112 163 9,276 7,729 206 189 20,093 21,502 732 347 95,961 234,791 5,719 3,585 60 49 17 18 32,662 17,148 40,315 34,102 76,480 5,415 2,848 6,237 5,347 12,379 103 7 47 9 50 16,729 10,799 25,088 19,699 51,068 514 39 1,060 38 483 133,094 1,552 144,392 110,394 85,698 5,445 148 4,072 4,628 2,072 122 168 719 1,590 19 180,635 1,443,913 773,565 346,793 26,836 286,453 10,286 1,296,491 3,167,253 888,637 24,687 150,967 76,961 21,977 1,713 49,646 671 129,169 189,459 47,907 3,764 25,598 13,237 3,709 277 8,263 112 21,148 31,729 7,958 3 183 45 26 59 61 13 7 1,242 104 17,424 72,554 36,392 9,003 205 26,902 54 94,106 69,972 20,998 154 1,321 289 154 85 778 15 181 2,232 528 37,752 252,164 114,543 85,509 6,223 43,251 2,637 28,159 728,213 259,213 1,425 17,027 7,919 5,034 497 3,236 341 1,187 38,436 10,657 244 262 96 136 a. 28 3 13 3,151 977 24 292 101 533,858 74,810 32,189 5,281 5,466 559 307 23 9,184 908 215 181 80,117 35,804 5,577 1,938 245 281 35 100 1,325 65 655 210,948 539,331 16,630 24,974 2,889 4,210 196 136 5,182 8,558 34 645 18,916 145,708 487 8,030 433 34 35 151 115 74 69 57,553 188,760 2,967 20,637 505 3,378 6 287 1,428 6,454 72 42 22,144 5,193 561 782 35 - 36 37 574 504 280 295 202,977 207,760 12,679 15,890 2,126 2,623 50 97 5,013 6,417 285 198 55,178 40,167 3,807 2,070 40 930 38 39 484 228 262,639 12,504 2,016 56 6,029 232 85,774 4,748 210 40 12 3 4 5 6 7 8 9 10 12 U 13 14 15 16 20 21 2 2 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 25 26 27 28 29 30 31 32 Corporation returns, 1939, by major industrial groups and minor industrial groups and by returns with net income and with no net Income> Number or returns, total compiled receipts, net income or deficit, income tax, (declared value) excess-profits tax, and dividends paid in cash and assets other than corporation's own stock - Continued (Money figures in thousands of dollars) Major industrial groups and minor industrial groups 1/ Continued 41 42 43 44 45 46 47 48 49 50 51 i52 “ 53 I 54 55 56 57 58 59 60 61 62 33 64 65 66 67 68 69 70 71 72 73 74 75 * 76 77 Manufacturing - Continued Apparel and products made from fabrics Men's clothing Women's clothing Fur garments and accessories Millinery Other apparel and products made from fabrics Apparel and products made from fabrics not allocable Leather and products Leather, tanning, currying, and finishing Footwear, except rubber Other leather products Leather and products not allocable Rubber products Tires and inner tubes Other rubber products, including rubberised fabrics and clothing Rubber products not allocable Lumber and timber basic products Logging and sawmills Planing mills Lumber and timber basic products not allocable Furniture and finished lumber products Furniture (wood and metal) Partitions and fixtures Wooden containers Matches Other, including cork products Furniture and finished lumber products not allocable Paper and allied products Pulp, paper, and paperboard Pulp and paper converted products Paper and allied products not allocable Printing and publishing industries Newspapers Periodicals Books Commercial printing Other printing and publishing Printing and publishing industries not allocable Chemicals and allied products Paints, varnishes, and colors Soap and glycerin Drugs, toilet preparations, etc. Rayon (raw material) and allied products Fertilizers Oils, animal and vegetable, except lubricants and cooking oils For footnote: page 10. Total number of returns 2/ Number of returns Returns with net income 3/ Total Net income J j Income (Declared compiled tax value) receipts 4/ excessprofits tax Returns with no net income 3/ Dividends paid in cash and assets other than corporation's own stock Number of returns Total compiled receipts £ / Deficit 3/ Dividends paid in cash and assets other than corporation's own stock 8,513 1,770 3,508 712 559 5,725 915 1,489 267 185 1,735,791 684,325 682,066 47,319 35,870 51,644 25,999 14,087 703 491 8,302 4,259 2,234 94 65 306 198 40 6 2 19,163 10,120 4,876 63 69 4,694 855 1,980 441 370 610,205 144,576 307,185 31,099 36^154 1,490 675 235,922 9,125 1,483 57 3,792 802 63,282 2,009 81 45 474 2,157 194 1,080 50,288 992,365 1,239 46,506 187 7,605 3 130 244 22,533 266 1,050 27,911 248,375 1,197 10,449 19 317 46 313 799 1,012 196 387 477 281,784 561,658 132,642 13,400 28,369 3,803 2,219 4,654 575 63 52 15 5,014 15,590 1,537 112 405 522 38,446 155,670 52,171 1,787 6,225 2,247 26 165 124 47 48 49 S3 565 48 20 326 36 16,281 1,010,671 825,766 934 64,766 51,035 156 10,457 8,156 (10) 113 48 391 30,696 >25,849 15 219 11 2,087 73,690 29,553 189 1,687 412 3 313 299 51 277 13 1,297 858 427 183,801 1,104 617,412 449,245 166,165 13,691 41 38,288 29,594 8,662 2,296 5 5,991 4,609 1,377 64 (10) 129 100 29 4,847 1 22,844 19,928 2,917 202 6 1,552 1,040 494 43,753 385 307,099 255,629 49,249 1,262 14 20,888 18,008 2,808 3,043 2^993 50 18 2,222 72 * 494 23 2,975 1,989 951 17,601 5^750 7,067 762 816 559 280 169 9 2 14 4L 42 43 44 50 52 53 54 55 33 12 2,004 32 4 1 4,567 2,125 400 586 25 1,335 2,136 1,024 147 287 18 617 978,458 488,355 31,963 109,383 48,220 269,166 58,028 28,884 1,282 5,604 4,121 17,049 9,348 4,822 197 862 601 2,699 194 125 5 24 1 38 27,141 12,122 332 2,304 2,424 9,722 2,351 1,070 242 293 7 691 254,188 126,884 18,101 42,182 1,427 53,671 14,565 7,996 779 1,992 100 5,100 127 96 2,213 457 1,710 43 1,423 292 1,103 31,372 1,546,225 716,201 761,220 1,088 120,417 63,720 52,076 167 19,562 10,281 8,580 1 315 161 147 257 54,659 30,255 22,410 48 744 147 582 11,923 224,685 120,474 99,993 596 19,828 15,456 4,075 « 636 65 572 46 11,690 2,231 713 399 2,015 2,749 28 4,817 1,160 288 176 798 1,247 68,805 1,778,953 702,343 231,589 107,173 197,259 364,363 4,622 157,999 79,236 20,329 8,089 12,023 24,823 701 23,814 11,999 3,138 1,232 1,701 3,963 7 227 28 22 20 29 43 1,994 92,682 52,551 10,982 5,562 5,336 12,582 15 6,511 1,022 402 214 1,198 1,441 4,218 490,399 141,894 61,343 26,668 69,290 93,516 296 29,454 10,357 4,939 1,569 2,500 4,583 (10) 1,300 277 352 213 146 176 65 3,583 7,049 974 206 2,380 1,148 3,368 568 87 897 176,226 4,097,415 528,766 464,278 596,887 13,499 553,738 37,589 59,923 99,533 1,781 84,947 6,220 9,601 15,939 85 1,401 67 143 176 5,667 530,312 17,153 54,834 64,918 2,254 3,417 375 109 1,573 97,687 259,814 34,696 10,981 48,634 5,527 17,912 2,308 471 4,831 135 1,269 6 71 403 72 75 74 10 354 6 205 10,729 7,807 1,775 1,221 6 17 10,225 3,707 4 159 472 31,688 181 983 • 543 75 76 282 168 103,054 144,321 \ 339,966 16,279 2,679 87 7,580 107 37,303 2,718 156 77 56 402 59 17 200 _ %i 57 58 59 60 61 62 65 64 66 67 68 69 70 Corporation re turns, 1939, by major industrial groups and minor industrial groups and by returns with net income and with no net income> Number of returns, total compiled receipts, net income or deficit, income tax, (declared value) excess-profits tax, and dividends paid in cash and assets other than corporation's own stock - Continued (Money figures in thousands of dollars) Major industrial groups and minor industrial groups 1/ Continued 78 79 80 81 82 83 84 85 86 87 88 89 1 90 <0 ' 91 92 93 94 95 96 97 98 99 100 101 102 103 104 1C5 106 107 108 109 no Manufacturing - Continued Chemicals and allied products Continued Plastic materials Industrial chemicals Other chemicals and allied products Chemicals and allied products not allocable Petroleum and coal products Petroleum refining Other petroleum and coal products Petroleum and coal products not allocable Stone, clay, and glass products Cut-stone products Structural clay products Pottery and porcelain products Qlass and glass products Cement Concrete and gypsum products, wall board Abrasives and asbestos products Stone, clay, and glass products not allocable Iron, steel, and products Blast furnaces and rolling mills Structural steel, fabricated; ornamental metal work Tin cans and other tinware Hand tools and general hardware Heating apparatus, except electrical, and plumbers' supplie s Other iron, steel, and products (not classified below) Iron, steel, and products not allocable Nonferrous metals and their products Nonferrous metal basic products Clocks and watches Jewelry, except costume jewelry Other manufactures of nonferrous metals and their alloys Nonferrous metals and products not allocable Electrical machinery and equipment Electrical equipment for public utility, manufacturing, mining, transportation (except automotive) and construction use Automotive electrical equipment Radio apparatus and phonographs Household electrical appliances Other electrical machinery Electrical machinery and equip ment not allocable Por footnotes, see page 10. Returns with net income 3/ Total number of returns 2/ Number of returns 153 613 79 403 Total compiled receipts 4/ Net income 5/ Income tax Returns with no net income ¿/ (Declared value) excessprofits tax 55,781 1,283,049 5,816 251,449 989 35,698 23 571 Dividends paid in cash and assets other than corporation's own stock Number of returns 2,208 162,452 71 202 Total compiled receipts 4/ Deficit jj/ 2,814 27,639 374 2,377 26 78 79 Dividends paid in cash and assets other than corporation's own stock 1,333 636 282,510 30,284 4,964 227 11,937 658 36,653 2,223 85 80 744 733 571 319 350 267 298,804 4,131,S84 3,937,558 34,328 196,590 184,119 5,862 20,342 18,648 82 192 184 15,498 172,524 165,882 379 323 256 28,934 1,279,057 1,254,375 1,445 16,828 16,110 50 14,302 14,302 81 156 81 193,017 12,383 1,678 8 6,625 64 24,157 686 _ 83 1,009 1,321,342 20,608 164,926 84,449 448,620 184,078 87 157,643 901 15,540 6,239 53,496 32,034 16 25,805 132 2,497 1,049 8,947 5,223 557 7 59 11 48 69 17 87,986 346 6,779 2,701 31,072 21,186 3 1,752 379 407 90 256 28 525 184,486 26,933 44,378 18,952 31,191 20,654 32 11,793 2,038 3,666 1,019 1,846 614 664 12 189 67 95 212 6 3,626 554 922 221 482 118 2 1,771 165 486 126 213 87 " 82 84 85 86 87 88 89 946 315 471 185 196,693 205,644 19,294 29,258 3,237 4,574 81 74 9,435 16,239 445 117 25,837 15,327 1,646 655 38 50 68 6,816 296 38 3,917 172 16,324 4,977,439 2,175,991 880 344,662 110,163 145 56,006 16,893 7 1,421 460 230 170,340 58,767 30 2,685 101 3,214 1,043,535 511,225 328 46,157 18,044 1,028 247 93 895 88 912 457 50 495 216,473 351,669 262,021 11,473 35,827 25,364 1,907 6,126 4,130 21 28 160 3,754 20,581 13,249 419 37 385 43,556 23,603 27,342 1,759 1,008 2,290 17 55 94 95 96 90 91 92 1,266 611 611,668 44,134 7,343 121 20,963 595 108,064 6,994 135 97 3,211 2,033 1,291,663 113,410 18,878 610 50,602 1,104 303,616 15,100 558 98 148 2,621 359 85 523 99 1,368 216 47 255 67,953 1,530,964 756,698 86,886 72,379 4,292 152,202 61,280 9,612 3,731 729 24,846 10,071 1,661 . 613 22 554 57 43 36 2,423 68,914 30,614 3,538 1,088 46 1,193 125 35 262 26,129 106,118 51,897 7,785 15,416 961 4,740 1,116 299 674 15 135 24 32 100 1,633 840 536,093 73,997 11,834 412 33,436 763 50,817 2,641 79 103 23 1,727 12 880 78,909 1,732,832 3,582 187,240 667 30,226 5 276 238 UO,162 8 784 205 135,690 10 8,707 97 494 86 294 138 601 303 40 136 67 276 619,289 71,676 218,218 114,336 459,654 88,898 12,858 11,570 12,948 38,469 14,332 2,013 2,010 2,186 6,079 109 58 35 38 35 57,264 8,710 4,693 5,990 21,838 180 40 144 65 302 21,664 9,566 55,926 11,919 54,380 1,205 592 2,714 956 2,804 75 (10) 2 19 114 58 249,659 22,498 3,606 21 11,665 53 2,235 458 - 99 101 102 104 105 106 107 108 109 110 Corporation returns, 1939, by major industrial groups and minor industrial groups and by returns tilth net income and with no net incomet Number of returns, total compiled receipts, net income or deficit, income tax, (declared value) excess-profits tax, and dividends paid in cash and assets other than corporation's own stock - Continued (Honey figures in thousands of dolían) Major industrial groups and minor industrial groups ¿/ Continued Ill 112 US 114 US U6 U7 118 U9 120 • 121 I 122 123 124 125 126 127 128 129 130 151 132 133 134 155 136 137 138 139 140 Manufacturing - Continued Machinery, except transportation equipment and electrical Special industry machinery General industry machinery Metal-working machinery, including machine tools Engines and turbines Construction and mining machinery Agricultural machinery Office and store machines Household and service-industry machines Machinery, except transportation equipment and electrical, not aUocable Automobiles and equipment, except electrical Automobiles, trucks, bodies, and industrial trailers Trailers for passenger cars Automobile accessories and parts, other than electrical Automobiles and equipment, except electrical, not allocable Transportation equipment, except automobiles Railroad and railway equipment Aircraft and parts Ship and boat building Motorcycles and bicycles Other transportation equipment, except automobiles Transportation equipment, except automobiles, not allocable Other manufacturing Ice, natural and manufactured Manufacturing not elsewhere classified Manufacturing not allocable Public utilities Transportation ¿/ Railroads, switching, terminal, sleeping and dining car companies Railway express companies Railways, street, suburban, and interurbanj bus lines, city and suburban Bus lines, interstate and interurban Taxicab coapanies Trucking, interstate and interurban Trucking, local; and warehousing Air transportation and allied services For footnotes, see page 10. Total numhr of returns 2/ Returns with net income 3/ Number of returns Total compiled receipts 4/ Net income ¿/ Income tax Returns with no net income ¿/ (Declared value) excessprofits tax Dividends paid in cash and assets other than corporation's own stock Number of returns Total compiled receipts 4/ Deficit £/ Dividends paid in cash and assets other than corporation's own stock 6,299 1,322 2,331 3,289 691 1,157 3,180,661 386,651 757,915 330,945 48,115 80,205 55,254 7,725 13,209 101 170,898 29,454 39,509 2,798 595 307 1,112 363,552 73,363 101,362 23,484 4,986 6,148 1,882 286 145 757 108 472 50 356,043 114,126 49,448 12,564 8,524 2,150 405 45 19,590 5,552 258 46 23,682 15,569 1,495 2,064 74 515 3fS 317 279 183 161 353,189 535,823 301,185 34,423 32,608 36,950 5,851 5,610 6,193 55 15 4 14,849 25,255 19,809 217 185 140 40,249 51,356 14,659 2,114 1,384 105 998 182 252 102 193,679 22,211 3,544 13,344 116 14,814 985 15 U8 2,112 72 119 959 8 21 2,201 6 m U2 113 114 US 116 U7 341 194 202,051 14,424 2,448 5,538 131 28,538 916 457 3,437,438 384,159 60,439 292 219,626 418 251,645 18,092 58 572 39 172 14 2,932,617 4,332 331,079 154 51,588 115 4 194,750 49 183 183,268 1,740 14,578 305 39 — 120 491 266 494,005 52,500 8,755 171 24,792 205 44,815 2,674 19 122 14 5 6,484 426 75 3 55 9 1,825 534 847 167 184 442 17 339 91 56 164 13 720,188 201,747 266,686 222,487 26,270 84,769 19,059 46,748 17,019 1,765 14,150 2,856 365 24 257 80 38,479 10,743 19,607 6,898 1,157 445 69 150,979 101,079 26,925 21,633 11,284 3,448 5,823 1,897 41 32 14 2,909 74 16 761 5 5,502 1,116 1 2,387 575 295 9 55,790 6,604 4 2,953 521 470 220,736 55,601 14,789 5,453 502 558 4,386 1,968 23,893 15,764 286 49,186 1,174,122 291,369 165,135 49,534 3,959,065 3,555,897 11,556 4,042 555,274 296,295 143 94 55,278 7,412 131 132 1,198 1,055 2,432 861 11,478 8,025 818 12 22 8,122 2,848 296 2 2 21 100 252 4 111 123 284 160 78 46 124 125 126 127 176 27 958,043 75,088 (10) 108,757 9,030 (10) 18,010 1,289 1,812 682 10,586 6,605 882,954 280,470 9,134,548 4,235,943 99,726 21,593 1,523,801 474,757 16,721 3,424 215,683 72,351 365 2,155,607 169,335 223,585 25 51,667 320 (10) 153,228 - 372 1 2,430,421 697 198,618 58 4,210 35 133 134 1,660 135 5 136 157 2,206 44 204 138 139 1,206 49 140 1 88 _ 102 8,200 10 54 531 152,995 14,185 2,128 15 7,218 404 457,195 64,994 882 685 394 196 129,892 49,079 20,365 2,339 3,220 337 16 10,848 627 449 422 18,944 21,665 2,071 1,101 1,923 5,671 1,092 2,158 312,754 202,359 16,433 18,138 2,671 2,763 97 4,141 8,235 769 3,253 67,697 114,765 8,001 78,247 8,048 1,421 41 534 377 9,677 112 6 121 128 20 821 602 121 129 ISO C o rp o ra tio n . r e t u r n s , 1 9 3 9 , b y m a jo r i n d u s t r i a l g r o u p s a n d m in o r i n d u s t r i a l g r o u p s a n d b y r e t u r n s w i t h n e t in c o m e a n d w i t h n o n e t in c o m e t N um ber o f r e t u r n s , c o m p ile d r e c e i p t s , n e t in c o m e o r d e f i c i t , in c o m e t a x , ( d e c l a r e d v a l u e ) e x c e s s - p r o f i t s t a x , a n d d i v i d e n d s p a i d i n c a s h a n d a s s e t s o t h e r t h a n c o r p o r a t i o n 's ow n s to c k - C o n tin u e d (H o n e y f i g u r e s M a jo r i n d u s t r i a l g ro u p s a n d m in o r i n d u s t r i a l g ro u p s 1 / C o n tin u e d T o ta l num ber of re tu rn s 2 / in th o u s a n d s o f d o l l a r s ) R e t u r n s w i t h n e t in c o m e 3 / N um ber o f re tu rn s T o ta l c o m p ile d re c e ip ts 4 / N e t in c o m e j j / In c o m e ta x / 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 169 170 171 172 173 174 175 176 177 178 179 180 P u b lic u t i l i t i e s - C o n tin u e d T r a n s p o r ta tio n 5 / - C o n tin u e d P ip e l i n e s 6 / W a te r t r a n s p o r t a t i o n O th e r tr a n s p o r ta tio n an d a l l i e d s e rv ic e s 7 / T ra n s p o rta tio n n o t a llo c a b le C o m m u n ic a tio n T e le p h o n e a n d r a d io te le p h o n e T e le g ra p h a n d r a d io te le g r a p h R a d io b r o a d c a s t i n g a n d s e r v i c e s O t h e r c o m m u n ic a tio n O th e r p u b lic u t i l i t i e s 5 / E le c tric lig h t and pow er O as p r o d u c tio n a n d d i s t r i b u t i o n , e x c e p t n a tu r a l g a s p ro d u c tio n 6 / W a te r P u b lic u t i l i t i e s n o t e ls e w h e re c la s s ifie d 7 / O th e r p u b lic u t i l i t i e s n o t a llo c a b le T ra d e W h o le s a le R e ta il D e p a rtm e n t, g e n e r a l m e rc h a n d is e , d ry goods U n ite d - p r ic e v a r ie ty s to re s M a il-o rd e r h o u se s Food s to re s Package liq u o r s to re s D ru g s t o r e s A p p a re l F u rn itu re an d house fu rn is h in g s E a tin g an d d rin k in g p la c e s D e a le rs i n a u to m o b ile s . a c c e s s o rie s , t i r e s , b a tte r ie s M o to i^ -v e h ic le d e a l e r s A c c e s s o rie s , t i r e s , and b a tte rie s D e a le rs i n a u to m o b ile s , e t c . , n o t a llo c a b le F illin g s ta tio n s H ard w are L um ber a n d c o a l y a r d s O th e r r e t a i l tr a d e R e ta il tra d e n o t a llo c a b le T rad e n o t a llo c a b le S e rv ic e P e rs o n a l s e rv ic e H o te ls a n d o th e r lo d g in g p la c e s L a u n d r ie s , c le a n in g a n d d y e in g P h o to g ra p h ic s tu d io s O th e r p e r s o n a l s e r v ic e P e rs o n a l s e rv ic e n o t a llo c a b le B u s in e s s s e r v ic e A d v e rtis in g O th e r b u s in e s s s e r v ic e B u s in e s s s e r v ic e n o t a llo c a b le F o r foot n o t e s , see p a g e 10. 256 1 ,9 5 5 138 971 - 1 ,7 3 1 2 1 8 ,7 1 0 5 1 8 ,7 9 5 2 1 2 ,0 1 9 to ta l 7 9 ,8 2 4 5 8 ,1 2 2 1 3 ,3 7 6 9 ,3 2 5 R e t u r n s w i t h n o n e t in c o m e (D e c la re d v a lu e ) excessp ro fits ta x D iv id e n d s p a id in c a sh and a s s e ts o th e r th a n c o r p o r a t i o n 's ow n s to c k 15 234 6 8 ,3 9 2 3 4 ,4 0 1 N um ber o f re tu rn s T o ta l c o m p ile d re c e ip ts 4 2 ,4 3 0 1 5 8 ,0 5 6 2 ,1 3 4 9 ,6 7 1 665 376 141 142 2 3 ,0 2 3 906 3 7 ,3 0 5 1 5 ,0 4 3 1 6 4 ,6 3 4 2 6 ,9 8 1 1 2 5 ,7 3 7 1 1 ,2 1 4 702 4 4 0 ,5 3 3 2 9 4 ,6 6 5 5 ,0 8 2 725 3 6 3 ,9 0 6 1 ,1 7 3 1 2 ,6 0 8 2 ,7 4 7 8 ,0 8 8 1 ,5 0 3 270 4 6 ,3 7 1 3 3 ,8 7 4 45 121 923 906 - 143 144 2 6 ,9 4 3 2 0 ,8 8 0 149 3 ,6 2 1 2 ,3 9 9 150 151 152 694 155 1 ,6 5 0 1 ,3 1 4 15 320 1 2 ,3 3 1 730 3 6 ,1 5 4 1 ,5 8 4 ,1 9 4 1 ,4 4 0 ,0 4 5 1 7 ,5 2 2 1 2 6 ,7 2 7 102 3 , 3 1 4 , «L O 2 ,5 4 0 ,7 2 2 3 1 ,7 1 0 1 ,9 8 5 4 3 7 ,2 6 5 4 1 3 ,8 1 3 3 ,2 2 7 2 0 ,2 2 3 2 6 1 1 ,7 7 9 4 9 7 ,9 4 2 5 ,1 3 9 305 4 7 ,8 0 7 4 3 ,8 5 9 559 3 ,3 8 9 (1 0 ) 9 5 ,5 2 4 7 7 , ‘3 4 0 173 16 53 27 - - 91 49 5 1 8 ,8 4 7 4 2 5 ,8 7 2 156 1 ,9 7 7 1 ,6 8 8 49 236 4 1 ,4 7 6 365 800 1 ,7 5 5 457 967 6 7 7 ,0 0 9 7 1 ,8 7 9 9 4 ,3 0 0 1 5 ,7 8 6 1 5 ,0 7 5 2 ,5 0 6 28 9 8 0 ,3 4 1 1 2 ,0 6 0 327 604 1 0 4 ,8 0 0 2 3 ,2 9 7 8 ,3 1 8 3 ,0 4 2 — D iv id e n d s p a id in ca sh and a s s e ts o th e r th a n c o r p o r a t i o n 's ow n s to c k 95 812 408 3 ,8 8 5 3 ,1 7 2 74 633 6 4 ,2 4 4 1 ,2 4 6 26 %/ D e fic it 1 / 5 5 1 ,9 3 4 557 1 1 ,6 1 5 17 • 145 146 147 148 270 129 1 2 ,6 6 1 1 ,5 6 1 243 5 1 ,0 3 0 121 1 4 ,3 3 8 780 4 173 1 4 1 ,4 7 4 5 6 ,8 2 6 8 8 ,2 8 4 68 6 3 ,1 7 4 1 9 ,5 6 7 3 5 ,1 9 3 1 2 ,1 4 0 3 4 ,5 0 1 ,9 2 8 1 6 ,5 6 0 ,0 4 7 1 5 ,1 9 6 ,6 7 6 2 ,1 9 1 1 ,0 3 1 ,2 7 1 359 1 6 3 ,8 2 1 6 1 ,9 2 4 8 4 ,8 8 7 (1 0 ) 2 ,6 4 5 1 ,6 1 1 766 1 ,5 4 4 4 9 9 ,7 0 9 1 8 4 ,5 0 5 2 6 4 ,7 5 4 59 7 5 ,0 3 3 1 6 ,4 5 4 5 1 ,0 8 6 3 ,4 3 1 8 ,2 4 5 ,4 4 0 3 ,2 0 4 ,6 4 0 4 ,2 2 4 ,9 2 5 356 2 1 8 ,7 1 0 6 8 ,9 2 0 1 2 2 ,2 7 5 39 1 1 ,5 1 9 4 ,7 4 3 5 ,9 1 0 6 ,1 6 9 370 274 6 ,4 9 2 1 ,7 0 2 5 ,7 0 5 1 1 ,4 7 1 3 ,0 1 6 160 92 1 ,9 0 1 654 1 ,8 0 7 4 ,5 1 8 4 ,0 3 1 ,2 6 2 9 4 3 ,2 4 3 1 1 1 ,9 0 8 3 ,0 8 4 ,5 3 7 4 5 ,0 2 4 4 4 0 ,9 0 7 2 0 2 ,1 2 6 6 9 ,2 2 8 4 ,2 5 8 6 4 ,9 7 5 778 1 3 ,4 7 8 4 1 ,3 0 5 97 4 1 111 10 26 69 9 9 ,5 6 7 4 5 ,5 3 8 2 ,3 6 6 4 0 ,9 7 3 80 6 ,3 6 0 1 5 ,5 3 0 3 ,0 4 4 202 171 4 ,3 7 9 1 ,0 0 8 3 ,7 8 2 6 ,9 4 2 3 7 9 ,9 0 2 1 0 ,2 9 1 1 7 ,4 5 0 5 8 3 ,9 5 8 4 0 ,3 1 0 1 7 1 ,9 8 0 5 0 0 ,4 9 5 1 0 ,8 9 2 423 1 ,0 7 5 9 ,5 5 5 980 4 ,6 7 6 1 ,2 7 1 ,9 0 0 5 3 ,7 4 6 1 1 ,7 5 7 731 1 0 ,6 3 3 98 2 ,0 4 9 6 ,6 3 3 1 8 ,5 5 3 512 1 ,9 0 9 32 797 10 29 462 155 156 157 158 159 160 161 5 ,4 6 7 8 ,8 4 8 2 ,4 1 5 2 ,0 3 8 5 8 1 ,7 5 3 3 5 1 ,6 2 2 2 2 ,2 7 8 1 4 ,2 5 6 5 ,5 3 1 2 ,1 5 8 69 41 7 ,4 5 5 6 ,9 8 6 2 ,9 7 7 6 ,5 5 8 1 8 6 ,8 3 1 3 7 8 ,5 6 1 209 136 162 1 3 ,5 8 3 9 1 6 ,3 4 7 5 ,1 3 5 4 ,6 6 8 1 0 ,7 9 3 9 ,6 5 5 5 9 7 ,7 7 3 5 2 6 ,9 0 2 163 2 ,1 0 4 ,8 5 6 2 ,0 0 6 ,6 7 7 2 4 ,6 1 8 3 ,4 4 0 67 6 ,9 8 2 2 2 ,0 3 4 3 ,0 4 9 59 6 ,3 7 3 5 ,3 4 5 4 ,6 9 1 8 8 0 ,5 1 5 1 2 ,1 8 4 1 0 ,7 7 0 271 267 164 385 7 607 596 5 3 ,5 0 9 1 ,2 6 7 4 165 6 1 ,1 9 8 508 3 ,6 5 7 3 ,7 8 1 986 1 7 ,0 1 0 2 7 ,0 0 1 4 ,7 1 7 2 ,1 1 2 1 ,9 5 8 137 507 3 6 ,5 8 7 2 ,8 6 6 3 ,7 1 4 7 1 7 12 85 119 55 268 531 84 39 27 1 17 (1 0 ) 71 36 34 (1 0 ) 2 4 ,1 8 7 973 1 0 ,0 5 8 1 6 ,0 0 6 56 2 ,3 2 3 7 6 ,2 4 9 7 4 ,0 7 5 5 2 4 ,6 0 8 4 8 2 ,5 0 9 8 1 ,3 5 9 8 1 5 ,8 7 7 1 ,4 0 2 ,7 1 8 6 2 1 ,4 2 1 3 5 2 ,3 8 4 1 9 2 ,7 4 7 1 2 ,0 2 9 6 3 ,9 7 5 285 1 7 8 ,8 8 0 7 7 ,8 1 7 1 0 0 ,7 1 2 350 146 1 ,7 9 8 5 ,2 0 8 1 1 ,9 8 2 1 9 ,8 1 4 4 ,5 9 1 2 7 ,5 1 4 9 9 ,8 7 4 4 5 ,3 8 5 3 4 ,8 2 1 6 ,4 1 4 814 3 ,3 0 8 27 1 0 ,0 6 2 4 ,2 6 3 5 ,7 7 0 28 14 47 737 674 73 866 166 167 168 169 170 171 172 1 ,0 3 9 427 9 5 ,3 3 4 2 ,5 3 5 99 2 ,0 2 0 3 ,3 4 7 8 ,3 5 5 1 4 ,8 9 5 2 ,4 0 0 1 6 ,3 6 4 4 5 ,0 0 8 1 4 ,4 8 5 4 ,7 8 ? 5 ,0 7 8 560 4 ,0 3 8 26 7 ,5 7 6 2 ,0 7 6 5 ,4 5 7 45 40 669 1 ,5 3 4 4 ,2 2 2 6 ,2 5 3 1 ,1 7 9 8 ,4 1 4 1 4 ,1 1 4 4 ,6 4 6 1 ,4 1 7 1 ,8 5 9 159 1 ,2 0 5 6 2 ,7 3 7 868 1 ,6 5 6 13 2 ,8 4 4 1 7 0 ,4 8 7 1 5 3 ,4 4 9 7 5 5 ,4 7 3 9 5 2 ,6 0 6 2 1 7 ,6 5 2 2 ,7 4 5 ,2 0 4 2 ,2 6 5 ,6 6 2 6 1 8 ,2 2 1 2 5 9 ,6 1 2 2 7 6 ,3 5 2 1 5 ,3 7 4 6 6 ,0 6 4 820 5 4 4 ,6 0 2 3 2 1 ,4 9 7 2 2 2 ,2 8 1 824 49 7 ,4 8 6 3 ,6 2 5 2 5 ,4 8 2 2 6 ,4 1 2 6 ,6 1 8 1 0 6 ,5 9 7 v 8 ,9 6 2 153 154 1 7 9 ,9 7 3 3 2 ,1 8 3 1 4 ,4 2 5 1 3 ,1 6 8 866 3 ,6 9 9 25 4 3 ,0 7 5 1 7 ,9 1 2 2 5 ,1 1 0 53 1 ,9 1 3 5 0 ,4 4 9 8 5 ,0 1 1 1 2 ,4 2 8 5 ,4 2 4 5 ,1 5 3 387 1 ,4 6 5 — 1 ,2 9 5 1 ,9 7 4 3 ,9 6 4 8 ,2 9 6 1 ,1 5 3 7 ,4 9 3 2 6 ,9 1 ( > 9 ,2 9 7 3 ,1 6 0 3 ,0 1 5 384 2 ,7 1 9 19 2 5 ,3 5 6 9 ,3 9 7 1 5 ,9 3 1 28 4 ,2 8 3 1 ,0 7 4 3 ,1 8 0 29 2 ,9 6 3 517 267 146 1 102 263 81 178 4 173 174 175 176 177 178 179 180 C o rp o ra tio n r e t u r n s , 1 9 5 9 , b y m a j o r i n d u s t r i a l g r o u p s a n d m in o r i n d u s t r i a l g r o u p s a n d b y r e t u r n s w i t h n e t in c o m e a n d w i t h n o n e t in c o m e > N u m b e r o f r e t u r n s , c o m p ile d r e c e i p t s , n e t in c o m e o r d e f i c i t , in c o m e t a x , ( d e c l a r e d v a l u e ) e x c e s s - p r o f i t s t a x , a n d d i v i d e n d s p a i d i n c a s h a n d a s s e t s o t h e r t h a n c o r p o r a t i o n 's ow n s to c k - C o n tin u e d (M o n e y f i g u r e s M a jo r i n d u s t r i a l g ro u p s a n d m in o r i n d u s t r i a l g ro u p s 1 / C o n tin u e d S e r v ic e - C o n tin u e d A u to m o b ile r e p a i r s e r v i c e s A m usem ent M o tio n -p ic tu re p ro d u c tio n M o tio n -p ic tu re th e a te r s O th e r am usem ent A m u sem en t n o t a l l o c a b l e O th e r s e r v i c e , in c lu d in g s c h o o ls S e rv ic e n o t a llo c a b le F in a n c e , in s u ra n c e , r e a l e s t a t e , an d le s s o r s o f r e a l p ro p e rty B a n k s a n d t r u s t c o m p a n ie s M o rtg a g e a n d t i t l e c o m p a n ie s I n v e s tm e n t t r u s t s a n d in v e s tm e n t c o m p a n ie s M anagem ent ty p e F ix e d ty p e 181 182 185 184 185 186 187 188 189 190 191 192 195 194 , 195 196 197 198 199 200 201 202 205 . 204 205 206 207 208 209 210 211 212 I n s ta llm e n t in v e s tm e n t p la n s an d g u a ra n te e d fa c e -a m o u n t c e rtific a te s O i l r o y a l t y c o m p a n ie s In v e s tm e n t t r u s t s a n d in v e s tm e n t c o m p a n ie s n o t a l l o c a b l e H o ld in g c c o p a n te s 8 / R a ilro a d s e c u r itie s O th e r p u b lic u t i l i t y s e c u r i t i e s In d is t r i a l s e c u r itie s B ank s e c u r i t i e s O th e r s p e c i f i e d s e c u r i t i e s S e c u r itie s n o t s p e c ifie d O th e r c o r p o r a tio n s h o ld in g s e c u ritie s 9 / S e c u r i t y a n d c o m m o d ity -e x c h a n g e b ro k e rs an d d e a le rs C o m n e rc ia l c r e d i t a n d f in a n c e c o m p a n ie s I n d u s tr ia l an d p e rs o n a l lo a n c o m p a n ie s O th e r f i n a n c e c o m p a n ie s In su ra n c e c a r r i e r s , a g e n ts , e t c . L i f e i n s u r a n c e c o m p a n ie s I n s u r a n c e c o m p a n ie s , e x c e p t life A g e n ts , b r o k e r s , e t c . R e a l e s t a t e , in c lu d in g le s s o r s o f b u ild in g s D e a l e r s a n d d e v e lo p m e n t c o m p a n ie s , l e s s o r s o f b u ild in g s , le s s e e and ow ner o p e ra to rs o f b u ild in g s A g e n ts , b r o k e r s , e t c . R eal e s t a t e , in c lu d in g le s s o r s o f b u ild in g s , n o t a llo c a b le L e sso rs o f r e a l p ro p e rty , e x c e p t b u ild in g s A g ric u ltu ra l, f o r e s t, e t c ., p ro p e rtie s F o r foot n o t e s , see p a g e 10. T o ta l num ber of re tu rn s in th o u s a n d s o f d o l l a r s ) R e t u r n s w i t h n e t in c o m e N um ber o f re tu rn s 2 / 4 ,8 2 2 1 0 ,4 2 6 616 5 ,9 9 5 5 ,6 9 7 118 7 ,4 4 7 252 1 ,2 4 5 5 ,5 7 5 168 2 ,0 5 6 1 ,3 5 8 11 1 ,8 5 2 61 1 5 7 ,1 5 0 1 8 ,0 3 8 1 ,7 1 2 T o ta l c o m p ile d re c e ip ts 4 / N e t in c o m e 5 / to ta l 3 / In c o n e ta x R e tu rn s w ith (D e c la re d v a lu e ) excessp ro fits ta x 9 4 ,2 4 8 8 2 2 ,9 4 6 2 5 4 ,3 7 0 4 4 2 ,2 7 9 1 2 5 ,9 6 6 3 ,3 6 9 8 5 ,9 7 4 2 6 ,6 1 5 4 3 ,2 6 3 1 6 ,0 7 2 331 1 8 0 ,5 4 1 5 ,1 0 5 24 1 5 ,1 8 4 189 5 5 ,6 4 6 1 1 ,1 1 4 549 6 ,0 8 4 ,2 0 8 1 ,5 4 3 ,6 8 5 1 ,7 7 6 ,5 1 4 2 7 1 ,2 2 4 3 ,6 1 1 1 3 1 ,5 5 8 1 4 ,3 6 9 2 3 ,9 3 1 806 408 63 490 297 43 1 4 8 ,9 6 4 1 2 3 ,5 3 7 5 ,0 7 1 19 54 12 18 262 717 14 205 240 35 166 57 120 522 8 148 179 20 135 474 1 2 ,8 6 7 3 ,8 1 8 D iv id e n d s p a id in ca sh and a s s e ts o th e r th a n c o r p o r a t i o n 's ow n s t o c k 15 102 15 38 49 (1 0 ) 59 1 1 ,0 2 7 3 9 ,1 0 9 1 0 ,0 0 0 2 2 ,8 1 2 6 ,2 8 3 15 7 ,0 1 8 73 483 915 256 7 1 0 0 ,7 2 2 9 3 ,9 8 4 3 ,4 6 5 2 ,8 0 7 2 ,5 9 6 86 36 16 19 1 6 ,6 2 9 73 1 ,0 2 2 IS 58 1 52 5 ,6 5 5 8 9 0 ,0 8 7 1 0 ,7 6 7 3 7 8 ,8 1 0 2 6 4 ,1 1 0 1 1 ,2 4 1 6 1 ,2 4 1 1 6 3 ,9 1 9 2 ,2 3 8 6 5 0 ,7 1 9 7 ,7 6 4 2 4 9 ,9 2 9 2 1 5 ,8 6 6 8 ,9 6 0 4 9 ,4 1 1 1 1 8 ,7 8 8 66 2 9 ,7 5 6 298 8 ,4 3 6 1 2 ,7 1 7 241 1 ,9 9 9 6 ,0 6 6 6 ,3 9 9 2 ,6 4 8 2 2 ,5 3 2 25 (1 0 ) (1 0 ) 22 • 17 4 • (1 0 ) - N um ber o f re tu rn s n o n e t in c o m e T o ta l c o m p ile d re c e ip ts 4 / 3 ,4 0 6 5 ,7 6 9 379 1 1 3 ,8 6 5 3 5 6 ,3 6 8 1 1 8 ,6 5 7 1 ,8 1 3 3 ,5 2 7 50 4 ,0 1 5 146 1 ,3 7 4 ,8 4 6 1 9 3 ,9 8 2 2 ,9 0 4 8 6 ,6 8 6 4 ,9 9 2 D e fic it 3 / D iv id e n d s p a id in c a sh and a s s e ts o th e r th a n c o r p o r a t i o n 's ow n s t o c k 1 2 1 ,0 7 8 9 6 ,0 5 6 578 1 4 9 ,9 0 9 2 ,2 7 9 4 ,5 2 7 2 6 ,6 8 3 7 ,0 9 9 6 ,4 1 0 1 3 ,1 0 8 65 1 2 ,9 5 0 268 68 1 ,9 0 2 1 ,5 9 S 242 65 .. 210 5 182 185 184 185 186 187 902 5 ,1 3 0 ,5 0 1 3 5 3 ,4 3 4 3 6 ,0 0 8 8 4 0 ,4 1 6 7 4 ,1 9 4 1 8 ,4 8 2 7 8 ,7 2 1 1 9 ,6 6 8 1 ,2 0 7 188 189 1 3 3 ,2 3 5 1 2 7 ,8 2 1 3 ,0 9 9 278 109 18 1 6 ,4 8 2 1 1 ,7 4 8 665 1 0 ,5 0 8 7 ,9 5 2 566 5 ,9 9 1 5 ,8 8 5 19 190 191 648 15 7 50 729 550 510 521 51 192 195 1 ,6 5 5 5 2 8 ,7 8 7 4 ,7 0 0 1 9 9 ,7 4 2 1 9 6 ,4 6 9 114 165 2 ,9 8 9 5 1 ,5 9 7 1 1 ,9 2 2 4 6 ,7 7 7 6 9 ,1 7 8 5 55 52 9 26 20 353 2 2 ,2 2 6 3 ,8 4 5 1 ,3 3 6 2 ,4 3 7 1 ,4 0 1 779 3 3 ,8 5 8 2 ,7 7 8 2 1 ,4 2 5 7 ,6 5 4 164 1 ,7 1 6 141 181 36 9 ,1 9 0 19« - 195 196 197 198 199 8 ,2 3 4 930 1 25 200 3 ,5 2 1 2 ,0 9 7 2 2 7 ,8 3 3 1 7 4 ,1 5 2 7 ,5 5 6 23 1 5 5 ,4 0 8 1 ,2 5 3 1 6 ,7 7 7 5 4 ,2 3 9 2 ,7 1 8 201 2 ,2 0 5 852 9 7 ,5 2 7 1 3 ,2 5 7 1 ,7 1 1 62 7 ,2 2 0 1 ,2 5 1 5 5 ,6 5 0 1 7 ,2 7 3 1 ,2 4 9 202 2 ,6 5 1 1 ,4 1 9 2 0 6 ,5 0 1 6 1 ,4 5 9 9 ,0 6 3 25 4 6 ,6 4 8 1 ,0 5 9 1 9 ,5 0 5 3 ,5 2 7 512 205 2 ,5 0 2 2 ,8 8 8 7 ,8 9 8 730 1 ,4 9 5 524 5 ,4 0 3 137 1 1 5 ,8 9 5 4 6 ,1 4 5 1 ,6 9 0 ,1 6 5 2 8 ,7 1 5 5 1 ,6 6 5 1 3 ,6 3 9 2 1 4 ,9 2 6 3 ,5 4 9 5 ,0 3 9 1 ,9 8 4 2 4 ,5 6 8 459 14 20 69 661 1 ,3 5 0 4 ,0 7 2 519 9 ,4 9 7 1 6 ,5 8 4 1 ,4 7 1 ,5 3 9 1 ,1 7 0 ,0 4 1 2 ,0 9 2 2 6 ,4 2 5 2 9 9 ,4 4 2 1 8 7 ,2 5 1 109 1 ,3 0 0 2 4 ,0 4 8 2 2 ,1 0 2 204 205 - 1 8 ,8 2 5 1 1 ,8 0 2 1 0 4 ,5 0 9 1 ,6 7 5 1 ,2 1 8 5 ,9 5 0 623 2 ,6 4 3 1 ,5 2 0 ,2 0 9 1 4 1 ,2 4 1 1 8 9 ,4 0 6 2 1 ,9 7 1 2 1 ,0 9 5 3 ,0 1 3 4 65 8 8 ,5 5 6 1 4 ,2 7 8 503 3 ,0 5 0 2 5 6 ,9 8 4 4 4 ,5 1 5 1 0 9 ,2 4 1 2 ,9 5 0 1 ,5 6 9 577 207 208 1 0 1 ,4 0 2 2 8 ,3 1 7 8 3 0 ,5 7 7 1 5 2 ,0 6 5 1 8 ,4 0 9 321 7 4 ,1 7 8 6 4 ,5 6 2 1 ,0 2 6 ,2 9 6 2 7 7 ,0 3 0 8 ,5 0 4 9 5 ,5 0 7 5 ,8 7 3 2 6 ,1 5 5 2 ,1 5 5 7 7 3 ,7 8 7 5 5 ,8 5 3 1 2 6 ,1 4 6 5 ,7 2 1 1 7 ,6 1 1 770 299 21 7 1 ,6 9 7 2 ,3 5 0 6 1 ,1 5 2 3 ,4 2 1 9 8 9 ,5 8 8 3 6 ,7 2 2 2 7 2 ,9 3 6 4 ,0 8 5 8 ,4 4 7 57 (1 0 ) 206 209 210 211 22 9 937 198 28 151 9 188 10 4 ,5 8 4 1 ,8 7 4 1 5 8 ,2 0 5 8 1 ,3 2 1 1 3 ,0 6 8 31 7 3 ,7 5 9 2 ,2 1 5 2 8 ,5 6 4 1 7 ,4 8 3 1 ,5 6 2 858 251 5 ,2 7 8 1 ,0 4 4 146 3 768 568 3 ,1 6 1 2 ,3 1 3 58 212 C o r p o r a t i o n r e t u r n s , 1 9 5 9 , b y m a j o r i n d u s t r i a l g r o u p s a n d m in o r i n d u s t r i a l g r o u p s a n d b y r e t u r n s w i t h n e t in c o m e a n d w i t h n o n e t in c o m e i N um ber o f c o m p ile d r e c e i p t s , n e t in c o m e o r d e f i c i t , in c o m e t a x , ( d e c l a r e d v a l u e ) e x c e s s - p r o f i t s t a x , a n d d i v i d e n d s p a i d i n c a d i a n d a s s e t s o t h e r t h a n c o r p o r a t i o n 's ow n s to c k — C o n tin u e d (H o n e y f i g u r e s M a jo r i n d u s t r i a l g r o u p s a n d m in o r i n d u s t r i a l g ro u p s A / C o n tin u e d F in a n c e , in s u and le s s o rs C o n tin u e d le s s o rs o f b u ild in g s M in in g , o T o ta l num ber of re tu rn s in 2 / T o ta l c o m p ile d re c e ip ts N e t in c o m e 3 / to ta l th o u s a n d s o f d o l l a r s ) R e t u r n s w i t h n e t in c o m e 5 / N um ber o f re tu rn s re tu rn s , In c o m e ta x R e tu rn s w ith n o n e t in c o a » (D e c la re d v a lu e ) excessp ro fits ta x 4 / D iv id e n d s p a id in cash and a s s e ts o th e r th a n c o r p o r a t i o n 's ow n s to c k N um ber o f re tu rn s T o ta l c o m p ile d 3 / D e fic it 5 / re c e ip ts D iv id e n d s p a id i n ca sh and a s s e ts o th e r th a n c o r p o r a t i o n 's ow n s to c k ra n c e , re a l e s ta te , o f r e a l p ro p e rty r e a l p ro p e rty , e x c e p t - C o n tin u e d i l , e t c ., p ro p e rtie s R a ilro a d p r o p e r tie s P u b lic - u tility p ro p e rtie s O th e r r e a l p r o p e r ty , e x c e p t b u ild in g s le s s o r s o f r e a l p ro p e rty . e x c e p t b u ild in g s , n o t a llo c a b le F in a n c e , in s u r a n c e , r e a l e s t a t e , an d le s s o r s o f r e a l p ro p e rty n o t a llo c a b le C o n s tru c tio n G en e ra l c o n tra c to rs S p e c ia l tra d e c o n tra c to rs C o n s tru c tio n n o t a llo c a b le A g ric u ltu re , f o r e s tr y , and f is h e r y A g ric u ltu re and s e rv ic e s F o re s try F is h e ry N a tu re o f b u s in e s s n o t a l l o c a b l e , e x c e p t tra d e A/ In 2 ,9 0 5 509 1 ,3 0 1 160 111 195 5 8 ,6 6 8 2 4 ,6 5 2 3 ,8 7 9 6 4 ,5 9 5 2 6 ,8 8 7 4 2 ,8 4 8 1 0 ,8 4 6 7 ,0 4 8 1 ,7 S 5 (1 0 ) (1 0 ) 27 (1 0 ) 2 6 ,6 8 6 1 ,4 4 0 1 0 ,8 5 6 7 ,7 9 7 5 5 ,1 6 6 9 ,5 4 9 84 61 8 ,4 5 9 5 ,2 4 8 4 ,1 8 5 2 ,8 0 4 24 11 912 228 55 U 176 168 95 40 3 ,8 6 6 1 ,7 0 5 227 1 1 ,6 2 8 51 464 217 8 ,6 0 8 1 7 ,1 9 6 8 ,6 6 0 8 ,4 8 1 55 9 ,3 0 0 2 ,9 9 2 5 ,6 0 0 2 ,8 1 5 2 ,7 7 2 29 467 567 100 2 5 ,7 8 8 2 6 ,7 4 2 2 3 ,2 2 5 5 ,5 0 0 4 8 ,7 6 6 7 7 9 ,0 1 5 5 0 1 ,5 7 7 2 7 6 ,2 2 a 8 ,4 0 0 519 581 2 7 ,7 5 5 7 0 ,2 4 4 5 7 ,0 2 5 1 3 ,0 5 2 187 4 0 ,4 6 1 5 7 ,2 1 2 2 ,2 4 0 1 ,0 1 0 2 ,7 4 5 1 0 ,7 0 1 8 ,7 5 4 1 ,9 3 6 15 2 ,8 5 9 2 ,6 2 4 111 104 1 0 4 ,8 9 0 1 ,4 7 0 ,6 1 6 1 ,0 5 2 ,5 6 6 4 1 4 ,0 0 8 4 ,2 4 2 4 2 0 ,1 3 1 5 8 5 ,1 2 1 1 5 ,9 0 4 2 1 ,1 0 6 1 ,2 1 0 1 9 1 ,0 7 6 1 7 3 ,5 2 4 6 ,9 3 5 1 0 ,8 1 6 2 6 ,0 6 5 5 7 ,6 7 9 2 6 ,6 8 0 1 0 ,9 5 5 46 2 7 ,9 1 2 2 5 ,1 1 8 1 8 ,1 7 8 896 7 3 ,0 0 7 5 ,5 5 0 746 5 7 ,5 9 7 g e n e ra l, c o rp o ra tio n s a re c la s s ifie d in d u s tria lly on a c t i v i t y w h ic h a c c o u n ts f o r t h e l a r g e s t p e r c e n t a g e o f T h e re fo re , th e i n d u s tr ia l g ro u p s c o n ta in c o rp o ra tio n s e x c l u s i v e l y i n t h e i n d u s t r i e s i n w h ic h t h e y a r e c l a s s i n d u s t r i a l c l a s s i f i c a t i o n i s b a se d o n th e S ta n d a rd I n C l a s s i f i c a t i o n , I s s u e d fay t h e D i v i s i o n o f S t a t i s t i c a l o f th e B u d g e t, E x e c u tiv e O f f i c e o f t h e P r e s i d e n t . re tu rn s o f in a c tiv e 141 151 7 17 2 2 ,2 9 0 2 0 ,1 7 6 1 ,8 6 1 5 255 5 ,9 2 6 1 0 ,4 6 1 5 ,0 0 6 5 ,4 5 4 21 5 ,7 9 7 s ,a o 359 248 4 ,0 2 1 5 ,5 8 8 • 18C , 8 / C o n s i s t s o f c o r p o r a t i o n s w ho a t a n y tim e d u r i n g t h e t a x a b l e y e a r ow ned 5 0 p e r c e n t o r m o re o f t h e v o t i n g s t o c k o f a n o t h e r c o r p o r a t i o n a n d w h o s e In c o m e f r o m s u c h s t o c k w a s 5 0 p e r c e n t o r m o re o f t h e a m o u n t o f d i v i d e n d s re c e iv e d . 9 / C o n s is ts o f c o r p o r a tio n s ( o t h e r th a n in v e s tm e n t t r u s t s a n d in v e s tm e n t c o m p a n ie s ) w ho ( a ) a t n o tim e d u r i n g t h e t a x a b l e y e a r o w n e d 5 0 p e r c e n t o r m o re o f t h e v o t i n g s to c k o f a n o t h e r c o r p o r a t i o n o r ( b ) a t a n y d u r i n g t h e t a x a b l e y e a r ow n ed 5 0 p e r c e n t o r m o re o f t h e v o t i n g s t o c k o f a n o t h e r c o r p o r a t i o n b u t w h o s e in c o m e f r o m s u c h s t o c k w a s l e s s t h a n 5 0 p e r c e n t o f th e am ount o f d iv id e n d s re c e iv e d . " T o t a l c o m p ile d r e c e i p t s " c o r r e s p o n d s t o " T o t a l in c o m e " ( i t e m 1 4 , p a g e 1 , F o rm s 1 1 2 0 a n d 1 1 2 0 4 ) a f t e r t r a n s f e r r i n g t o d e d u c t i o n s t h e n e g a t i v e it e m s o f in c o m e r e p o r t e d u n d e r s o u r c e s o f in c o m e a n d a d d i n g " C o s t o f g o o d s s o l d , " " C o s t o f o p e r a t i o n s ," ( i t e m s 2 a n d 5 , r e s p e c t i v e l y , p a g e 1 , F o rm s 1 1 2 0 a n d 1 1 2 0 4 ) a n d " W h o lly ta x - e x e m p t i n t e r e s t o n G o v e rn m e n t o b l i g a t i o n s . " 5/ See n o te s 10/ L ess th a n $500. 218 219 220 221 225 *0tiie r tra n s p o rta tio n an d a l l i e d s e rv ic e s ” in c lu d e s t o l l ro a d s an d h » n b r i d g e s w h ic h f o r 1 9 3 8 w e re i n c l u d e d i n " P u b l i c u t i l i t i e s n o t e ls e w h e r e c la s s if ie d ." 4 / 2 ,8 6 2 1 ,5 0 9 1 ,0 8 5 224 1 ,5 9 2 7 / " N e t in c o m e " o r " D e f i c i t " i s t h e a m o u n t r e p o r t e d f o r ( d e c l a r e d v a l u e ) e x c e s s - p r o f i t s t a x c o m p u ta tio n ( i t e m 2 8 , p a g e 1 , F o rm s 1 1 2 0 a n d 1 1 2 0 4 ) , a n d i s e q u a l t o t h e d i f f e r e n c e b e tw e e n " T o t a l in c o m e " a n d " T o t a l d e d u c tio n s " ( i t a n s 1 4 a n d 2 7 , r e s p e c t i v e l y , p a g e 1 , F o rm s 1 1 2 0 a n d 1 1 2 0 4 ) . 217 1 2 ,2 9 6 "G as p ro d u c tio n an d d i s t r i b u t i o n , e x c e p t n a tu r a l g a s p ro d u c tio n " in c lu d e s n a t u r a l g a s p i p e l i n e s w h ic h f o r 1 9 5 8 w e re i n c l u d e d i n " P ip e l i n e s . " £ / 216 7 224 6 / c o rp o ra tio n s . 214 215 5 ,5 5 2 1 ,2 6 2 th e o n e b u s in e s s In c lu d e s num ber o f SIS 1 ,5 7 6 1 ,0 7 6 289 11 " T o ta l r e c e ip ts ." n o t engaged ifie d . The d u s tria l S ta n d a r d s , B u re a u 3 / 6 an d 7 b e lo w . SI 5 ,6 8 5 5 ,1 9 9 528 156 165 951 62 505 222 £25 TREASURY DEPARTMENT Washington FOR RELEASE, MORNING NEWSPAPERS 9 Friday, February 6. 1942, 1/23/42 Press Servioe No, 29-86 ■* Secretary of the Treasury Morgenthau today made public the third in the series of tabulations from "Statistics of Income for 1939, Part 2, Compiled from Corporation Income and (Declared Value) Excess«» profits Tax Returns and Personal Holding Company Returns,* prepared under the direction of Commissioner of Internal Revenue Guy ?• Helvering« The following table shows by major industrial groups the number of returns for corporations reporting income data, compiled receipts and compiled deductions, compiled net profit or net loss, net income or deficit, Income tax, (declared value) excess «»profits tax, total tax, compiled net profit less total tax, and dividends paid« In general, corporations are classified industrially on the one business activity which accounts for the largest percentage of "Total receipts«" Wierefore, the industrial groups contain corporations not engaged exclusively in the industries in whioh they are classified« "Total receipts" means the cum of the following items t Gross sales (where inventories are an inoome-determining factor); gross receipts (where inventories are not an income-determining factor); interest on loans, notes, mortgages, bonds, bank deposits, etc.; taxable interest on obligations of the United States; rents; royalties; oapital gain; gain from sale or exchange of property other than oapital assets; dividends; and other income required to be included in gross income. - 2 - The major Industrial groups for 1939 are comparable with those for 1938« The industrial classification for 1939 and 1938 is based on the Standard Industrial Classification, issued by the Division of Statistical Standards, Bureau of the Budget, Executive Office of the President, Since the Standard Industrial Classification, as at present designed, is on an establishment basis, certain modifications are necessary to make it applicable to corporation income tax returns which are filed on an ownership basis. In analyzing the data compiled from returns classified under the major industrial group insurance carriers, agents, etc«,tt allowance should be made for the two special deductions from gross income per mitted life insurance companies under section 203(a), Internal Revenue Code as amended, relating to reserve funds required by law, and reserve for dividends. On 1939 returns with net income these deductions aggregate $17,344,708, and on returns with no net income, $899,758,292, In the attached table, the special deductions for life insurance companies are included in nOther deductions,** C o m o rm tio B r e t u r n « 1939 b y B a to r i n d u s t r i a l g ro u p s« C o rp o ra tio n « » to m a , 1 9 5 9 , t y m a jo r I ta a b a r o f r s t a r n s , c o s ip ile d r e c s i p t « a n d c o m p ile d d e d u c t i o n s , C ^ p i l e d ^ ( < to c la w d v t i u e ) e x c e s s - p r o f i t s t a x , t o t a l t a x « a i d iv fc to n d s p a i d n e t p r o f it o r n o t lo a n , n o t M a jo r i n d u s t r i a l g ro u p s 1 / i l l in d u s tria l g ro o p s d tn m in o u s c o a l, L ig n ite , p e a t, a te . In th ra e ite M e ta l T o ta l and q u a rry in g lh a a b e r o f r a t u r n s 6 / B e s s ip ts , ta x a b le « G ro ss s a l s a 7 / G ro ss r e c e ip t« f r o « o p e r a tio n s 8 / In ts rs s t ■ a n ts a n d r o y a l t i e s 9 / N et c a p ita l g a in 1 2 / N ot g a in , s a le o f p ro p e rty o th e r th a n c a p i t a l a s s e t s U / D iv id e n d s , d o m e s tic c o r p o r a tio n s ¿ 2 / D iv id e n d s , f o r e ig n c o r p o r a tio n « ¿ 5 / O th e r r e c e ip t« B s c e lp ta , p a r t i a l l y a n d w h o lly ta x -e x a m p ti I n te r e s t on Q ev en assn t o b lig a tio n s i S u b je c t to « x e s s s -p ro fit« ta x 1 4 / ■ h o lly ta x -e x e m p t 1 6 / T o ta l o o a p ile d r e c e ip t« ! § / D e d u c tio n s « C o s t o f g o o d s c o ld 1 2 / C o st o f o p e ra tio n s 1 8 / C o m p e n s a tio n o f o f f i c e r » B u t p a id o n b u s in e s s p ro p e rty 24 26 26 B s p a irs 1 2 / B ad d e b ts I n te r e s t p a id T ax er p a id 2 0 / C o n trib u tio n s o r D e p re c ia tio n D e p le tio n N et c a p ita l lo s s B et le s s , s a ls o th a n c a p ita l a s O th e r d e d u c tio n s g ifts ¿ 1 / M a n u fa c to r in g M in in g a n d q u a r r y i n g Pat r o l e « to ta l m a n u fa c tu rin g d in in g an d q u a rry in g not a llo c a b le (o n est a l l i c and q u a rry in g Food a n d B ev erag es rindred jro d u e ts T obaoeo m a n u fa c tu re s 1 ,8 2 0 5 ,2 7 4 1 ,7 6 0 474 2 ,9 7 7 297 1 ,5 7 5 119 9 ,7 5 7 1 0 ,8 2 0 8 6 ,1 8 5 4 6 9 ,6 3 1 7 1 0 1 ,5 7 5 ,7 8 6 2 2 ,2 9 5 ,8 5 5 2 ,4 4 5 ,5 9 5 2 ,5 1 8 ,9 6 5 2 1 1 ,9 7 6 2 ,4 5 6 ,0 5 1 2 9 5 ,1 6 5 8 ,8 9 8 4 1 ,8 2 9 7 ,9 9 6 7 7 5 ,5 0 1 2 0 ,5 4 5 2 ,8 7 7 5 ,5 0 6 615 1 8 2 ,0 9 8 1 0 ,6 4 1 715 4 ,9 7 1 58 7 1 0 ,2 0 6 7 1 ,5 6 4 2 ,0 5 8 1 7 ,4 8 0 968 5 4 1 ,2 7 8 1 6 1 ,2 6 7 2 ,7 8 1 1 1 ,2 9 0 6 ,1 2 6 2 2 0 ,9 4 1 2 9 ,5 2 0 422 1 ,9 5 6 206 6 ,2 2 7 1 ,8 2 6 49 126 25 5 6 ,9 6 2 ,5 4 1 1 ,1 7 6 ,8 7 7 1 0 5 ,9 9 7 1 9 6 ,8 9 8 2 5 ,4 4 9 9 ,9 5 5 ,1 5 5 7 5 ,5 6 6 9 ,0 4 5 1 6 ,7 9 4 1 ,2 5 8 1 ,6 6 2 ,1 6 1 1 3 ,0 7 0 1 ,7 6 8 4 ,0 0 1 6 177 1 ,5 0 9 ,1 8 2 2 ,4 1 6 2 ,2 0 6 2 ,4 1 0 715 1 1 4 ,9 1 0 1 ,9 0 5 ,9 4 9 2 5 0 ,0 7 7 9 9 7 ,6 9 1 6 ,6 6 5 4 1 ,5 6 8 1 ,4 5 1 5 4 ,6 0 5 521 2 6 ,5 0 6 1 ,5 5 0 9 ,7 1 5 64 678 5 ,5 6 9 9 ,5 9 5 56 1 0 ,9 0 5 154 961 2 2 ,5 6 0 138 194 1 88 1 4 ,1 9 8 5 6 6 ,9 6 5 1 2 0 ,1 0 6 2 9 e ,8 S l 1 ,5 5 9 2 7 ,6 5 9 1 8 ,7 6 8 4 5 ,5 4 4 505 5 ,4 1 1 920 9 ,5 9 4 106 4 ,6 0 5 456 1 ,9 4 8 2 ,4 2 6 659 5 ,6 1 5 62 8 ,9 1 2 5 2 0 ,1 9 2 4 4 5 ,2 5 0 1 ,8 0 7 1 ,2 1 0 617 592 212 18 6X 8 182 541 540 117 74 2 5 1 4 ,5 4 0 1 2 ,5 4 6 1 ,2 9 6 959 225 281 575 251 7 4 9 ,5 2 7 2 5 6 ,7 1 2 8 ,6 8 0 1 ,3 2 4 ,6 5 0 201*879 8 1 6 ,2 0 5 1 ,6 9 6 ,0 7 7 8 4 5 ,7 4 2 1 0 ,1 2 8 ,1 5 9 2 ,8 7 6 ,6 4 4 5 8 ,5 0 6 ,5 6 9 1 5 2 ,8 7 8 ,2 2 4 7 7 ,2 7 2 ,1 0 2 1 1 ,1 2 7 ,9 7 5 2 5 /2 ,6 9 7 ,4 5 8 1 ,6 0 5 ,5 5 8 1 ,0 9 7 ,5 4 0 7 1 5 ,0 9 5 2 ,7 9 6 ,5 0 7 5 ,9 9 5 ,4 4 5 5 0 ,7 8 0 5 ,4 4 2 ,7 1 5 4 5 7 ,6 8 6 6 4 ,8 4 7 1 ,6 0 0 ,5 8 1 1 8 4 ,5 2 5 4 7 ,0 6 8 1 6 ,4 4 6 5 4 ,4 1 9 8 ,2 4 0 5 8 ,0 3 2 1 5 2 ,2 2 4 441 1 6 2 ,2 4 2 2 1 0 ,1 5 4 895 4 8 4 ,2 6 9 1 5 ,6 1 8 5 ,7 8 9 1 ,0 6 5 1 2 .2 7 5 1 ,4 0 6 1 0 .2 7 5 4 8 ,6 7 7 179 5 5 ,5 4 7 7 4 ,1 9 2 75 1 5 6 ,5 2 0 8 ,6 0 0 1 ,2 9 2 605 5 ,4 9 5 1 ,2 9 5 8 ,1 5 5 1 1 ,8 1 9 1 6 ,5 5 6 6 ,6 1 5 6 5 6 8 ,7 8 6 5 0 ,9 4 6 9 ,6 4 6 4 ,6 6 2 1 8 ,9 2 2 1 ,8 5 9 1 2 ,0 1 5 5 4 ,8 8 5 61 5 6 ,1 8 1 1 5 ,6 8 9 247 2 5 6 ,0 2 4 9 2 ,9 7 6 2 0 ,0 5 8 8 ,0 9 5 8 ,5 5 6 2 ,2 6 0 2 5 ,8 7 9 2 8 ,6 2 2 115 7 0 ,8 6 8 1 0 5 ,4 4 0 416 1 2 9 ,9 8 5 1 6 ,8 5 2 1 0 ,0 8 1 1 ,9 4 9 8 ,9 7 5 1 ,5 9 2 5 ,6 5 7 7 ,7 4 8 85 1 4 ,6 0 9 7 ,9 0 7 125 4 ,7 9 6 1 ,5 3 0 221 64 205 48 78 474 (2 4 ) 480 290 25 4 1 ,2 4 6 ,6 4 2 6 5 4 ,0 5 7 9 6 4 ,9 4 8 5 0 5 ,5 8 1 7 5 9 ,1 2 5 1 6 6 ,9 7 0 5 4 5 ,9 8 4 1 ,5 8 5 ,2 8 1 1 4 ,0 5 5 1 ,4 4 2 ,2 5 4 1 8 7 ,6 8 8 4 ,8 8 1 8 ,0 5 1 ,1 9 5 5 2 ,6 0 7 9 5 ,0 6 4 5 4 ,6 4 5 7 8 ,5 0 1 1 8 ,2 5 7 5 5 ,6 2 8 1 7 0 ,0 9 0 1 ,5 2 1 1 5 6 ,7 9 6 258 551 8 8 8 ,0 6 6 4 ,7 4 8 2 9 ,6 4 7 6 ,0 8 9 1 1 ,8 9 8 7 ,1 6 8 1 4 ,1 8 9 2 6 7 ,5 8 7 6U 8 7 ,s n . 97 127 9 6 3 ,0 8 4 1 ,8 6 4 6 ,6 9 2 1 ,5 8 5 1 ,9 0 4 545 5 ,5 5 2 9 5 ,1 2 1 161 7 ,9 4 1 4 ,0 4 8 1 ,0 8 2 ,8 7 9 1 ,2 9 2 2 9 5 ,0 7 5 164 1 1 5 ,8 1 2 10 ¡2 / f p ro p e rty o th e r s s ts U / 22/ 1 8 6 ,2 1 9 2 6 /2 0 ,2 5 2 ,7 5 5 6 ,5 2 9 2 6 2 ,5 8 7 746 5 4 ,5 7 0 550 1 2 ,5 9 5 1 ,3 1 8 6 6 ,4 9 5 2 ,0 5 9 1 1 7 ,5 0 4 1 ,4 6 9 5 0 ,1 5 1 88 1 ,4 7 2 4 5 ,6 4 0 7 ,0 4 9 ,4 5 1 8 2 2 ,1 9 1 2 5 4 ,9 6 5 9 ,7 4 0 ,0 1 7 1 ,1 9 6 ,4 8 6 2 1 9 ,8 9 9 1 ,5 6 1 ,9 0 6 7 2 0 ,4 9 8 5 4 ,7 2 6 ,2 6 7 2 ,7 4 4 ,1 5 8 9 ,7 5 6 2 2 /1 2 5 ,7 0 0 ,4 0 9 7 5 6 ,8 5 2 T o ta l c o n p ile d d e d u c tio n s 1 5 2 ,5 8 6 1 5 1 ,1 7 6 1 2 5 ,2 4 4 1 2 2 ,6 5 2 2 8 /5 ,9 8 6 2 8 /6 ,1 6 8 1 2 ,4 7 5 1 2 ,1 5 5 2 1 ,7 4 9 2 1 ,6 7 6 2 8 /1 ,0 7 6 7 ,1 7 7 ,8 1 5 6 ,7 5 4 ,5 6 6 2 8 /1 8 ,0 2 0 ¿ 8 /1 8 ,0 5 8 3 /1 ,0 8 0 5 ,5 8 0 ,1 0 2 5 ,5 6 7 ,7 5 6 5 8 8 ,1 2 2 5 8 7 ,1 6 2 1 5 4 ,1 7 1 1 5 5 ,9 4 0 1 2 8 ,2 1 4 1 2 7 ,9 8 5 50 C o n p ile d n e t p r o f i t o r n e t l o s s (1 5 l a s s 2 8 ) M e t in c o m e o r d e f i c i t 2 8 / ( 2 9 l e s s 1 2 ) 51 52 In c o m e t a x (D e c la re d v a lu e ) 1 ,2 1 6 ,4 5 0 1 5 ,8 0 6 8 6 ,8 8 2 888 1 8 ,7 6 6 184 77 5 2 ,8 0 2 42 1 0 ,8 5 4 71 4 ,5 5 6 86 27 1 6 2 4 ,5 7 5 9 ,7 0 1 6 7 ,5 7 6 640 2 5 ,5 9 8 185 2 1 ,1 4 8 7 2 ,8 4 4 1 0 ,9 2 5 4 ,4 4 2 28 2 5 ,7 8 1 2 1 ,1 5 5 82 6 8 ,0 1 6 5 7 ,2 7 C 1 8 ,9 5 0 6 5 4 ,0 7 7 1 ,2 5 2 ,2 6 6 2 9 /8 ,8 5 0 1 ,5 5 0 1 7 ,5 0 7 1 0 6 ,5 9 0 1 0 7 ,0 5 9 2 9 /1 8 ,1 0 5 5 2 0 ,1 0 6 1 0 4 ,2 9 4 2 ,9 4 6 ,0 2 5 9 5 ,l i t 2 9 /1 ,1 0 3 5 ,9 4 5 ,5 5 9 1 2 1 ,5 2 6 16 849 1 5 ,0 1 2 167 6 5 ,6 4 1 1 ,5 1 1 1 8 ,5 9 4 459 2 2 ,2 0 9 ,5 6 0 5 2 ,7 7 0 2 5 9 ,6 8 7 1 ,4 7 6 7 2 ,8 1 6 3 ,9 6 1 9 4 ,1 1 9 2 1 7 , 66« 1 ,4 9 « 27 29 55 54 55 e x c e s s -p ro fit# ta x T o ta l ta x C o n p ile d n e t p r o f i t l e s s t o t a l ta x (2 9 l e s s 55) D iv id e n d s p a id « C ash sn d a s s e t s o th e r th a n c o r p o r a t i o n 's ow n s t o c k C o r p o r a t i o n 's ow n s t o c k Tor footnotes, see pages lo end 11. C o rp o ra tio n re tu rn s . 1 9 5 9 , t y m a jo r i n d u s t r i a l g ro u p s« o r d e f i c i t , in c o m e t a x , H um ber o f r e t u r n s , c o m p ile d r e c e i p t s a n d c o m p ile d d e d u c t i o n s , c o m p ile d n e t p r o f i t o r n e t l o s s , n e t in c o m e ( d e c l a r e d v a lu e ) e x c e s s - p r o f i t s t a x , t o t a l t a x a n d d iv id e n d s p a i d - C o n tin u e d (M oney f i g u r e s i n th o u s a n d s o f d o l l a r s ) M a jo r i n d u s t r i a l g ro u p s M a n u fa c tu rin g - T e x tile -m ill p ro d u c ts N um ber o f re tu rn s 6 / A p p a re l an d p ro d u c ts m ade fro m fa b ric s le a th e r and p ro d u c ts L um ber and tim b e r b a s ic p ro d u c ts R ubber p ro d u c ts F u m itu re and fin is h e d lu m b e r p ro d u c ts " jj - C o n tin u e d C o n tin u e d P ap er and a llie d p ro d u c ts P rin tin g and p u b lis h in g in d u s trie s C h e m ic a ls and a llie d p ro d u c ts R e n ts a n d r o y a l t i e s 9 / N et c a p i t a l g a in 1 0 / H et g a in , s a le o f p ro p e rty o th e r th a n c a p ita l a s s e ts 1 1 / D iv id e n d s , d o m e s tic c o r p o r a tio n s 1 2 / D iv id e n d s , f o r e ig n c o r p o r a tio n s 1 5 / O th e r r e c e ip ts R e c e i p t s , p a r t i a l l y a n d w h o lly ta x -e x e m p t« I n t e r e s t o n G o v e rn m e n t o b l i g a t i o n s « S u b je c t to e x c e s s -p ro fits ta x 1 4 / W h o lly ta x - e x e m p t 1 5 / T o t a l c o m p ile d r e c e i p t s 1 1 / BPS R e p a irs 1 9 / D e p le tio n M et c a p i t a l l o s s 1 0 / th a n c a p ita l a s s e ts 1 1 / O th e r d e d u c tio n s 2 2 / T o t a l c o m p ile d d e d u c tio n s C o m p ile d n e t p r o f i t o r n e t l o s s (1 5 l e s s 28) M et In c o m e o r d e f i c i t 2 5 / ( 2 9 l e s s 1 2 ) |D e c l a r e d v a lu e ) e x c e s s -p ro fits ta x T o ta l ta x C o m p ile d n e t p r o f i t l e s s t o t a l t a x (2 9 l e s s 55) D iv id e n d s p a id « C ash an d a s s e t s o th e r th a n C o r p o r a t i o n ' s o* m s t o c k For footnotes, see pegos 10 end IX, Iro n , s te a l. and p ro d u c ts 6 ,6 0 2 8 ,4 1 9 2 ,1 5 0 545 2 ,8 4 9 4 ,4 8 7 2 ,1 6 7 U , 528 6 ,7 8 5 675 5 ,5 2 5 5 ,7 5 9 ,5 0 6 8 7 ,6 2 8 4 ,2 4 4 1 2 ,6 9 2 1 ,5 9 5 2 ,2 7 9 ,4 6 4 4 9 ,6 9 2 964 4 ,1 2 0 241 1 ,2 2 1 ,1 2 7 8 ,4 4 1 1 ,2 6 5 1 ,5 6 9 114 1 ,0 6 1 ,5 9 5 1 ,6 7 6 1 ,4 9 4 5 ,4 5 1 773 8 8 2 ,8 4 4 1 7 ,2 0 5 2 ,0 5 3 5 ,5 9 4 2 ,0 0 8 1 ,2 0 9 ,1 7 5 7 ,7 4 7 1 ,6 8 2 2 ,0 6 0 622 1 ,7 5 1 ,1 8 3 5 ,6 6 2 8 ,4 1 3 5 ,1 1 4 1 ,2 6 4 2 ,0 2 5 ,1 0 1 1 8 1 ,9 4 3 4 ,4 4 1 1 2 ,7 1 2 2 ,1 9 2 4 ,1 9 7 ,5 2 2 2 9 ,4 1 6 7 ,5 5 6 1 4 ,5 1 5 2 ,4 8 5 4 ,9 6 8 ,7 7 2 2 5 4 ,9 6 1 1 5 ,0 9 7 5 8 ,8 8 6 2 ,4 1 9 1 ,4 6 3 ,4 5 8 1 4 ,2 7 2 2 ,0 4 7 5 ,1 1 4 755 1 ,7 6 4 5 ,0 9 5 955 2 0 ,8 8 6 167 1 ,1 8 9 681 9 ,1 4 4 177 1 ,2 2 7 6 6 ,6 2 1 46 4 ,5 7 8 5 ,2 6 8 5 ,5 8 2 1 ,2 6 7 2 ,4 7 9 10 1 0 ,9 4 7 554 1 ,9 0 6 556 7 ,8 7 4 496 6 ,0 0 8 1 ,0 4 1 1 0 ,7 8 5 849 1 9 ,0 5 6 1 ,2 0 4 1 9 ,5 4 4 1 ,4 0 1 7 0 ,5 0 0 1 5 ,0 2 0 1 7 ,4 7 7 1 ,1 9 6 1 0 4 ,1 6 8 4 ,8 0 5 2 1 ,0 5 7 250 7 ,5 2 0 2 , 555 9*199 1 ,5 8 2 1 9 ,1 7 1 8 ,6 6 2 2 2 ,4 6 4 717 589 215 150 125 75 71 47 205 104 484 224 695 254 1 ,5 5 9 972 1 ,6 6 2 2 ,2 8 8 540 760 691 450 1 ,5 5 9 5 ,8 9 5 ,4 6 6 2 ,5 4 5 ,9 9 6 1 ,2 4 0 ,7 4 0 1 ,0 6 4 ,5 6 1 9 2 4 ,5 1 1 1 ,2 3 2 ,6 4 6 1 ,7 7 0 ,9 1 1 2 ,2 6 9 ,5 5 2 4 ,5 5 7 ,2 2 9 5 ,4 1 0 ,6 4 2 1 ,5 0 5 ,8 2 7 6 ,0 2 0 ,9 7 5 5 ,0 5 5 ,4 4 1 5 9 ,5 6 1 6 7 ,5 4 5 1 2 ,8 9 6 5 7 ,1 4 8 8 ,7 7 4 2 1 ,2 5 6 7 7 ,4 9 7 675 9 1 ,1 4 7 11 552 1 ,8 4 1 ,5 4 7 5 9 ,2 1 8 8 0 ,7 4 5 2 6 ,0 4 1 5 ,4 5 5 7 ,2 4 8 6 ,9 2 6 2 9 ,8 5 5 508 1 0 ,7 0 4 25 171 1 ,0 1 1 ,5 8 6 4 ,2 4 5 2 5 ,9 6 4 7 ,1 0 0 7 ,8 8 1 5 ,5 1 2 4 ,2 5 2 1 9 ,2 5 6 280 1 1 ,7 1 4 45 99 7 3 6 ,5 4 8 442 8 ,5 2 5 6 ,0 5 9 1 4 ,4 4 2 5 ,6 9 7 8 ,7 1 7 4 8 ,9 0 1 164 2 7 ,6 4 0 9 55 6 7 5 ,0 5 2 1 0 ,5 9 1 2 0 ,5 8 5 2 ,7 6 5 6 ,9 2 9 4 ,1 5 2 1 0 ,0 6 5 2 3 ,1 6 4 156 2 7 ,4 5 0 2 5 ,6 2 7 259 8 9 6 ,8 1 6 2 ,9 1 5 4 0 ,4 6 6 9 ,4 2 6 1 0 ,2 6 2 5 ,5 1 0 6 ,5 5 8 2 5 ,1 0 2 277 2 1 ,2 3 9 2 ,5 9 4 202 1 ,2 6 2 ,5 0 6 2 ,8 6 6 5 7 ,6 2 8 9 ,2 1 6 5 6 ,8 3 8 1 1 ,6 2 4 2 5 ,5 0 9 5 9 ,4 8 9 551 6 4 ,6 5 4 2 ,5 5 2 196 1 ,5 5 1 ,6 1 8 9 7 ,4 7 1 1 0 0 ,6 9 4 5 2 ,1 7 1 8 ,8 6 5 1 5 ,9 5 9 1 4 ,9 6 1 5 1 ,8 9 5 1 ,1 7 8 4 6 ,5 1 9 61 565 2 ,6 4 4 ,4 8 0 7 ,2 5 6 7 5 ,0 4 7 1 5 ,5 6 8 5 5 ,5 0 5 1 2 ,4 6 5 2 0 ,4 0 0 9 6 ,5 5 0 1 ,1 2 1 1 2 3 ,4 6 2 5 ,9 1 2 580 5 ,5 5 5 ,2 7 9 1 1 7 ,5 6 6 1 4 ,4 5 5 5 2 ,9 0 2 9 0 ,5 9 0 1 5 ,4 7 1 3 7 ,5 7 5 1 7 8 ,5 9 1 621 2 6 5 ,1 5 2 1 4 1 ,2 9 5 78 963,a s 4 ,4 9 6 ,5 3 2 15*557 9 6 ,7 1 0 2 7 ,8 4 9 159*515 1 2 ,8 6 5 7 0 ,8 5 4 1 5 9 ,2 0 6 1 ,2 8 4 2 0 4 ,9 1 6 6 ,8 1 4 5 0 4 ,9 5 8 514 2 6 4 ,8 6 8 777 1 0 8 ,1 5 6 1 ,8 1 1 1 6 2 ,4 4 7 1 ,5 1 7 9 9 ,3 7 9 783 1 6 7 ,0 0 9 2 ,0 5 0 1 7 6 ,6 0 8 2 ,1 1 2 4 5 7 ,9 6 7 2 ,5 5 5 7 6 0 ,6 1 4 5 ,6 2 8 7 5 9 ,5 5 5 1 ,4 8 7 1 9 5 ,5 5 6 5 ,9 6 4 4 8 9 ,1 2 0 5 ,7 4 5 ,8 5 5 2 ,5 1 1 ,8 2 4 1 ,2 0 4 ,6 0 9 1 ,0 2 1 ,2 5 6 9 0 7 ,0 0 0 1 ,1 8 8 ,9 5 7 1 ,6 7 0 ,0 6 7 2 ,1 5 9 ,8 5 6 5 ,8 1 9 ,1 1 5 5 ,2 5 0 ,1 2 0 1 ,3 5 9 ,5 4 8 5 ,7 a , 682 1 S 1 ,6 1 5 1 5 1 ,0 2 5 5 4 ,1 7 5 5 4 ,0 4 5 5 6 ,1 5 1 5 6 ,0 5 8 6 3 ,1 2 6 6 3 ,0 7 8 1 7 ,5 0 3 1 7 ,4 0 0 4 5 ,6 8 9 4 3 ,4 6 5 1 0 0 ,8 4 3 1 0 0 ,5 8 0 1 2 9 ,5 1 6 1 2 8 ,5 4 5 5 5 8 ,1 1 4 5 5 5 ,8 2 6 1 8 0 ,5 2 2 1 7 9 ,7 6 2 1 4 6 ,2 8 0 1 4 5 ,8 4 9 2 9 8 ,5 0 6 5 1 ,7 2 9 1 ,2 4 2 8 ,5 0 2 506 7 ,6 0 5 150 1 0 ,4 5 7 115 5 ,9 9 1 129 9 ,5 4 8 194 1 9 ,5 6 2 515 2 5 ,8 1 4 227 8 4 ,9 4 7 1 ,4 0 1 2 0 ,5 4 2 192 2 5 ,8 0 5 557 5 6 ,0 0 6 5 2 ,9 7 0 8 ,6 0 6 7 ,7 3 4 1 0 ,5 7 0 6 ,1 2 0 9 ,5 4 2 1 9 ,8 7 7 2 4 ,0 4 1 8 6 ,5 4 8 2 0 ,5 5 3 2 6 ,1 6 0 5 7 ,4 2 7 1 1 8 ,6 4 2 2 5 ,5 6 5 2 8 ,5 9 7 5 2 ,5 5 6 1 1 ,5 8 3 5 4 ,1 4 7 8 0 ,9 6 7 1 0 5 ,4 7 5 4 5 1 ,7 6 6 1 5 9 ,9 8 9 1 2 0 ,1 1 9 2 4 1 ,8 6 4 7 5 ,1 2 5 2 ,4 0 4 1 9 ,7 2 5 1 ,6 5 6 2 2 ,8 5 0 1 ,5 0 5 5 1 ,0 0 9 414 2 5 ,8 8 7 550 2 7 ,5 4 3 180 5 5 ,2 9 6 427 9 3 ,9 8 2 666 sa, 581 1 8 6 ,8 2 6 220 8 8 ,6 5 0 145 1 7 1 ,5 6 8 D e d u c tio n s « • 14 15 16 17 18 19 S to n e , c le y , and g la s s p ro d u c ts 4 ,8 1 0 R e c e ip ts , ta x a b le « G ro ss r e c e i p t s fro m o p e r a tio n s 8 / P e tro le u m and c o a l p ro d u c ts 8 ,2 3 9 9 ,5 6 2 5 S |7 1 b 6 ,5 8 2 5 5 ,5 a 5 ,2 4 5 1 0 ,0 5 8 5 5 ,8 0 0 496 a , 691 2 ,2 0 1 2 a S ,a 7 ,a7 1 2 ,2 4 8 1 2 ,9 7 5 1*545 2 ,8 6 5 469 299,2a 1,4a C o rp o ra tio n r e t u r n s , 1 9 5 9 , b y m a jo r i n d u s t r i a l g r o u p s : o r d e f i c i t , in c o n e t a x , B u n b e r o f r e t u r n s , c o m p ile d r e c e i p t s a n d c o » p ile d d e d u c tio n s , c o m p ile d n e t p r o f i t o r n o t l o s s , n e t I n o o a a ( d e c l a r e d r a i n s ) e x c e s s - p r o f i t s t a x , t o t a l t a x a n d d iv id e n d s p a i d - C o n tin u e d (H o n e y f i g u r e s I n th o u s a n d s o f d o l l a r s ) M a jo r i n d u s t r i a l g r o u p s M a n u fa c tu rin g - 1 N um ber o f 2 5 4 6 6 7 8 9 10 11 12 IS i 14 IS 18 17 18 BBP8 19 24 25 26 27 28 29 80 51 82 55 54 55 56 re tu rn s 6 / - C o n tin u e d P u b lic U t i l i t i e s C o n tin u a d iu tc a a o b ile s a n d e q u ip m e n t, e x c e p t e le c tric a l T ra n s p o rta s * t l o n e q u ip m e n t, e x c e p t a u to m o b ile s O t h e r m anu fa c tu rin g M a n u fa c tu rin g n o t a llo c a b le T o ta l p u b lic u tilitie s T ra n s p o rta t i o n %/ T o t a l c o m p ile d r e c e i p t s 1 ,6 / D e d u c tio n s : C ost o f goods a d d 1 7 / C o st o f o p e ra tio n s 1 8 / C o m p e n s a tio n o f o f f l o e r s R an t p a id o n b u s in e s s p ro p e rty R e p a irs 1 9 / B ad d e b ts I n t e r e s t p a id T axes p a id 2 0 / C o n trib u tio n s o r g i f t s 2 1 / D e p re c ia tio n D e p le tio n H ot c a p ita l lo s s 1 0 / H ot lo s s , s a le o f p ro p e rly e th e r th a n c a p i t a l a s s e t s JJJ O th e r d e d u c tio n s 2 2 / T o t a l c o m p ile d d e d u c tio n s C o m p ile d n e t p r o f i t o r n e t l o s e (1 5 l a s s 28 ) H o t in c o m e o r d e f i c i t ¡ ¡ / ( 2 9 l e s s 1 2 ) In c o m e t a x (D e c la re d v a in e ) e x c e s s -p ro fits ta x T o ta l ta x C o m p ile d n e t p r o f i t l o s s t o t a l t a x (2 9 l e s s 5 5 ) D iv id e n d s p a id « C ash an d a s s e ts o th e r th a n c o r p o r a t i o n 's asm s t o c k C o r p o r a t i o n 1 s ow n s t o c k For footnotes, see paces 10 and li. > \ O th e r p u b lic u tilitie s E le c tric a l m a c h in e ry an d e q u ip - M a c h in e ry , except tra n s p o rta t i o n e q u ip m ent and e le c tric a l 2 ,5 6 1 1 ,6 6 4 6 ,0 8 7 875 784 6 ,5 4 0 1 ,6 4 8 2 2 ,0 6 4 1 4 ,8 5 0 8 ,8 2 7 5 ,8 0 7 1 ,5 4 7 ,6 6 6 60 j 515 2^605 2*196 '2 6 2 1 ,8 2 6 ,5 5 1 7 ,0 1 9 5^441 4" 774 554 5 ,5 7 2 ,1 7 « 7 1 ,7 0 4 1 4 ,5 5 4 2 9 ,0 0 4 1 ,9 9 6 8 ,5 6 5 ,1 1 1 4 ,4 4 1 6 ,1 9 9 1 0 ,8 1 6 790 6 0 2 ,4 0 2 2 4 9 ,1 5 1 2 ,2 1 4 8 ,0 .9 2 ,5 0 8 1 ,1 1 5 ,9 9 5 5 1 ,5 4 1 2 ,8 4 9 6 ,6 6 2 1 ,8 1 6 8 2 0 ,7 5 1 2 ,7 2 « 858 954 91 1 4 1 ,7 6 6 1 2 ,5 8 1 ,6 7 1 9 5 ,5 2 9 9 7 ,4 6 2 5 ,7 8 9 9 2 ,8 2 5 7 ,2 7 0 ,0 8 2 6 7 ,1 8 6 4 9 ,2 0 8 ,7 9 2 8 ,9 6 2 1 ,5 2 7 ,8 4 6 9 ,1 2 6 2 5 ,4 6 8 5 0 4 4 ,9 8 0 5 ,5 8 5 ,7 4 4 2 9 ,0 7 2 4 ,7 5 4 1 ,4 6 6 145 8 ,7 9 2 5^078 9 ,5 2 7 170 1 2 ,4 2 7 5 ,6 7 2 8 ,1 4 1 987 1 0 ,8 7 9 1 0 ,5 4 4 28^752 508 4 4 ,8 1 1 5 5 ,2 9 6 1 6 ,5 1 6 702 6 ,4 5 2 578 5 ,6 9 7 267 5 ,7 5 9 5 ,7 5 0 1 1 ,5 0 0 161 1 ,5 5 6 922 1 ,8 9 8 8 ,4 8 5 2 9 5 ,2 7 9 5 ,8 4 4 5 6 ,2 5 9 4 ,7 6 2 6 9 ,5 7 9 659 5 6 ,1 0 259 1 7 8 ,7 9 7 1 ,4 8 5 5 ,2 0 5 5 ,4 8 5 4 4 ,9 0 5 5 ,8 2 0 1 6 ,8 7 2 10 517 192 858 1 ,1 5 5 2 ,0 2 0 1 ,8 5 6 540 666 455 250 268 206 120 14 4 ,8 6 8 2 ,8 5 9 5 ,8 0 1 ,8 4 8 69 112 997 •0 4 11 12 1 ,6 5 7 ,0 8 2 1 ,8 6 8 ,5 2 2 5 ,5 4 4 ,2 1 5 8 ,6 6 9 ,0 8 8 8 7 1 ,1 6 7 1 ,1 7 8 ,7 7 9 8 6 0 ,0 0 4 1 5 ,0 9 5 ,6 1 1 7 ,6 8 9 ,8 4 0 1 ,7 4 8 ,8 2 8 5 ,7 6 4 ,0 4 5 1 ,1 9 4 ,4 6 5 8 l0 8 50^772 6 ,8 5 5 1 9 ,8 8 9 5 ¡0 7 4 9 ,0 8 5 5 2 ,0 5 1 586 5 2 ,6 4 8 2^706 'i l l 1 ,2 4 1 ,6 7 9 5^090 2 7 ,5 0 6 8 ,6 9 5 2 2 ,5 8 1 5 ,5 9 7 5 ,1 8 7 4 8 ,8 1 5 642 4 7 ,5 5 8 92 111 2 ,2 4 5 ,6 7 0 1 4 ,2 2 2 8 6 ,0 5 5 1 5 ,1 7 5 5 6 ,4 2 2 1 5 ,5 6 6 1 6 ,8 0 8 8 8 ,2 5 1 1 ,2 9 5 9 7 ,2 1 9 144 496 2 ,8 1 6 ,4 9 1 2 ,7 7 7 1 7 ,1 5 9 5 ,1 5 9 5 5 ,5 6 0 7 ,5 6 9 8 ,8 4 8 6 2 ,4 7 4 1 ,6 0 5 6 7 ,7 9 9 717 66 4 5 1 ,0 5 5 1 8 5 ,5 6 1 1 5 ,5 6 6 5 ,6 2 2 1 8 ,4 7 0 900 5 ,4 1 8 2 2 ,4 6 5 122 2 9 ,6 4 0 42 44 6 9 6 ,4 8 9 1 6 ,4 5 4 4 5 ,2 8 5 1 1 ,1 7 8 1 0 ,5 6 4 7 ,1 4 « 7 ,1 2 4 2 9 ,2 7 8 457 5 2 ,6 2 0 69 219 2 2 9 ,4 2 9 1 ,5 8 6 1 1 ,9 4 8 2 ,0 4 2 2 ,7 5 6 1 ,2 S L 2 ,4 6 2 6 ,6 4 0 69 6 ,7 9 4 885 86 1 0 4 ,1 2 8 6 ,9 0 ,7 0 2 1 1 0 ,9 5 5 1 7 5 ,4 5 6 5 4 ,6 1 2 2 7 ,0 7 1 ,1 5 4 ,4 2 6 1 ,0 5 7 ,0 9 2 6 ,1 6 7 9 5 6 ,1 2 4 1 5 ,0 2 4 9 0 6 6 ,5 2 4 4 ,7 8 5 ,6 4 5 7 9 ,8 5 5 0 ,7 5 6 2 6 ,8 9 2 1 1 ,6 7 6 6 7 9 ,9 7 0 6 1 2 ,1 1 2 6 0 2 9 2 ,1 0 5 2 ,5 2 7 615 1 ,8 9 5 6 7 1 ,8 6 0 8 |1 6 7 4 5 ,5 8 5 2 ,9 8 5 5 ,7 5 5 6 8 ,6 5 4 1 4 1 ,0 7 2 781 20 7« 5 6 ,9 0 9 1 ,4 4 6 ,4 9 8 2 2 ,0 5 4 0 ,0 6 4 ,6 5 6 1 0 ,2 0 9 4 0 5 ,0 2 2 8 8 8 ,9 0 9 1 ,6 9 5 4 4 2 ,5 7 6 1 0 ,4 7 7 246 162 1 4 8 ,7 1 6 797 2 7 9 ,1 2 8 2 ,7 4 6 6 9 9 ,8 8 9 1 ,8 6 9 2 6 7 ,1 8 0 1 ,7 8 8 6 7 ,1 6 1 1 ,0 5 7 2 2 6 ,7 0 6 486 4 6 ,8 0 7 1 2 ,2 6 2 1 ,4 1 0 ,8 8 2 6 ,0 9 9 8 6 5 ,6 7 7 778 1 7 7 ,6 5 2 5 ,8 8 4 6 7 7 ,0 4 4 1 ,4 8 9 ,4 2 8 1 ,6 8 8 ,8 5 4 8 ,2 5 4 ,9 1 7 3 ,8 0 2 ,6 6 1 7 9 7 ,4 5 2 1 ,0 8 4 ,6 0 7 6 1 2 ,4 6 8 1 1 ,9 2 2 ,2 2 6 7 ,4 0 9 ,5 5 6 1 ,5 2 4 ,0 6 0 5 ,1 0 8 ,4 5 0 28 1 4 7 ,6 6 4 1 4 7 ', 4 6 2 1 7 9 ,6 6 8 1 7 8 , 555 5 0 9 ,2 9 6 5 0 7 ,4 6 1 8 6 6 ,7 2 6 6 6 6 ,0 6 7 7 5 ,7 1 5 7 5 ,4 8 5 9 4 ,1 7 2 9 5 ,9 6 7 1 7 ,6 6 « 1 7 ,5 5 2 1 ,1 7 1 ,5 8 6 1 ,1 6 8 ,5 2 7 1 8 0 ,5 0 5 1 7 8 ,4 0 4 2 4 ,7 8 8 4 2 4 ,6 6 7 6 6 6 ,0 5 5 6 5 ,4 0 9 29 4 7 ,d 0 7 65 9 5 ,6 2 4 a R e c e ip ts , ta x a b le : C ro ss s a le s 7 / G ro ss r e c e ip ts fro m o p e r a tio n s 8 / In te re s t R e n ts a n d r o y a l t i e s 9 / R a t c a p i t a l g a in 1 0 / 1 s t g a i n , s a l e o f p r op e r t y o t h e r th a n c a p ita l a s s e ts 1 1 / D iv id e n d s , d o m e s tic c o r p o r a tio n s 1 2 / D iv id e n d s , f o r e ig n c o rp o ra tio n s 1 8 / O th e r r e o e ip ts R e c e i p t s , p a r t i a l l y a n d w h o lly t a x - e x a a p t: I n t e r e s t o n O o v e rn n sn t o b lig e tlo n s i S u b je c t to e x c e s s -p ro fits ta x 1 4 / W h o lly t a x - e x a a p t 1 5 / C m m ra n i c a tio n H o n fe rro u a m e ta ls an d th e ir p ro d u c ts 2 4 ,8 4 6 *564 5 0 ,2 2 6 276 5 6 ,2 5 4 959 20,445 ¡/ 8 0 ,4 5 9 292 1 4 ,1 6 0 865 1 8 ,0 0 295 6 ,4 2 4 102 0 6 ,6 8 5 1 ,1 9 6 7 2 ,8 5 1 1 ,0 6 6 1 8 ,8 0 6 8 ,6 2 7 2 1 8 ,8 0 7 8 ,4 0 6 4 7 ,8 8 0 0 6 ,0 6 1 15 Id 15 16 17 IB 19 20 21 22 25 24 26 26 27 50 a 52 55 2 5 ,5 9 9 5 0 ,5 0 2 £ 6 ,2 1 5 6 0 ,7 5 2 1 4 ,5 1 5 1 2 2 ,2 5 4 1 4 9 ,1 6 « 2 5 5 ,0 6 5 5 0 5 ,9 9 1 5 9 ,2 0 0 7 5 ,8 6 7 1 4 ,0 6 9 9 5 4 ,8 0 5 1 0 6 ,8 9 9 5 7 6 ,9 0 6 4 7 0 ,6 9 7 54 6 9 ,0 4 9 '5 7 0 1 1 0 ,2 5 8 1^07 1 7 2 ,7 8 0 5 ,6 4 5 2 1 9 ,6 8 8 262 5 8 ,7 6 4 5 6 ,2 0 879 8 ,2 9 4 160 1 ,2 0 9 ,4 0 1 ,7 8 4 2 9 8 ,7 0 844 5 6 4 ,8 2 9 118 5 4 6 ,7 9 0 894 55 56 — • »w s w s ^ r f a s r “ | -■*- - r (M o n e y f i g u r e s I n th o u s a n d s o f d o l l a r s ) M a jo r i n d u s t r i a l g ro u p s 1 / - C o n tin u e d T ra d e il tra d e B a tin g F u rn itu re and bo u se fu rn is h in g s A p p a re l D ru g s to re s Package liq u o r s to re s Food s to re s M a il o rd e r h o u ses U n ite d p ric e v a rie ty s to re s T o ta l re ta il d rin k in g p la c e s goods N uaber o f re tu rn s 6 / 562 265 6 ,2 8 0 1 ,6 6 2 8 ,5 9 6 6 ,0 6 0 5 ,5 9 2 8 6 ,2 7 9 1 1 ,2 6 0 8 6 ,0 2 1 5 ,5 8 9 1 8 8 ,2 0 7 1 9 ,0 0 0 ,8 7 0 5 4 5 ,0 0 5 8 0 ,8 2 4 2 2 ,4 5 6 2 ,5 8 7 1 8 ,6 8 3 ,9 2 2 8 5 9 ,1 3 9 5 7 ,9 1 0 6 2 ,8 0 4 2 ,9 0 1 4 ,2 6 8 ,1 9 8 2 6 ,1 0 6 1 8 ,0 8 8 1 8 ,5 4 8 468 9 2 8 ,7 7 6 2 ,2 4 1 1 ,2 7 8 8 ,6 8 7 1 2 6 ,1 5 4 1 ,2 9 8 81 74 86 8 ,6 2 4 ,5 9 9 2 1 ,2 7 5 902 4 ,2 3 6 642 8 2 ,7 4 5 2 ,1 9 8 6 111 18 5 9 8 ,2 6 6 5 ,C 8 6 424 1 ,8 0 5 65 1 ,7 0 1 ,2 2 2 2 7 ,1 8 1 1 ,8 5 1 6 ,5 2 5 6 8 6 ,9 8 2 1 2 ,4 1 6 2 ,4 8 4 6 5 5 ,9 0 8 ,1 0 5 ,1 1 7 9 5 8 ,0 9 7 7 4 ,1 2 7 9 7 ,2 7 8 6 ,2 5 1 110 162 5 ,6 5 2 5 2 ,6 1 8 4 0 ,5 7 9 4 0 4 ,8 5 8 1 ,7 8 6 8 3 ,7 1 9 1 4 ,8 4 2 1 1 8 ,4 5 8 2 ,5 9 1 1 6 ,8 8 8 1 0 ,2 8 8 2 6 2 ,9 0 7 207 8 ,1 9 4 1 80 618 1 ,7 5 8 15 1 5 ,8 4 8 55 (2 4 ) - 46 1 ,1 7 1 (2 4 ) 5 ,4 1 2 250 697 404 7 0 ,6 8 4 41 1 ,0 8 3 1 0 ,1 5 4 1 ,2 8 1 2 ,9 5 1 2 ,1 0 1 1 ,2 6 0 1 ,0 0 2 1 ,4 6 3 857 857 856 ,7 4 7 ,8 6 8 1 9 ,7 6 4 ,6 8 7 1 9 ,4 2 1 ,6 0 0 4 ,4 1 1 ,1 6 5 9 5 8 ,5 8 4 ,9 4 2 ,2 2 7 4 8 9 ,1 4 6 8 2 1 ,5 5 0 6 8 7 ,5 0 1 9 0 ,9 0 2 1 5 7 ,8 0 7 1 3 6 ,2 5 4 4 4 2 ,3 8 1 7 ,2 0 1 2 8 9 ,7 5 6 1 ,9 5 8 5 ,8 5 7 1 6 ,6 0 5 ,9 5 9 2 5 0 ,5 8 8 5 2 7 ,1 4 4 9 5 ,5 0 1 1 7 ,9 2 9 6 6 ,4 0 7 5 5 ,1 8 2 1 2 3 ,9 6 2 2 ,1 9 8 6 7 ,1 7 0 649 1 ,5 5 1 1 5 ,6 5 9 ,9 5 8 1 9 8 ,2 3 0 4 0 2 ,8 8 8 5 4 9 ,4 9 8 6 2 ,4 6 8 7 2 ,9 8 8 6 7 ,7 0 5 2 7 4 ,1 0 7 4 ,3 7 6 1 8 8 ,7 6 9 1 ,0 8 7 1 ,7 9 0 2 ,9 1 1 ,9 8 6 6 ,7 6 8 4 5 ,6 6 1 9 8 ,5 6 8 1 8 ,111 1 4 ,6 9 1 1 8 ,6 4 7 7 6 ,2 8 5 1 ,7 4 6 4 5 ,8 5 8 108 203 5 8 * 7 ,9 1 8 154 5 ,8 9 0 6 4 ,9 1 4 2 ,6 8 1 63 1 ,1 5 5 2 0 ,7 2 2 159 1 2 ,8 8 5 Receipts, taxable» Gross sales 2 / Gross receipts f r o a o p e r a t i o n s ¡ / Interest R e n ts a n d r o y a l t i e s S j Net c a p i t a l g a l a / N e t g a in , s a le o f p r o p e r ty o th e r th a n c a p i t a l a s s e ts 1 1 / D iv id e n d s , d o m e s tic c o r p o r a tio n s / D i v i d e n d s , f o r e i g n c o r p o r a t i o n s 2 Jj/ 20 22 11 12 ,18 <0 ' 14 15 16 17 18 19 20 21 22 28 24 25 26 27 28 O th e r r e c e i p t s R e c e ip ts , p a r t i a l l y a n d w h o lly ta x - e x e a p ti I n t e r e s t on G o v n n w n n t o b lig a tio n s » S u b je c t to e x c e s s - p r o f its ta x 1 4 / W h o lly t a x - e x a n p t 1 5 / T o ta l c c o p ile d re c e ip ts J6 / D e d u c tio n s » C o st o f goods s o ld 1 7 / C o st o f o p e ra tio n s 1 8 / C o n d e n s a tio n o f o f f i c e r s R a n t p a id o n b a a in e s s p ro p e rty R e p a irs 2 2 / B ad d e b ts I n t e r e s t p a id T axes p a id 2 0 / C o n trib u tio n s o r D e p re c ia tio n D e p le tio n M et c a p i t a l l e s s M et l e s s , s a le o th a n c a p i t a l a s O th e r d e d u c tio n s T o ta l g ifts 21/ 20/ f p ro p e rty o th e r s e ts 1 1 / 22/ coopl i e d d e d u c tio n s 12 8 1 ,6 5 5 495 108 15 1 2 9 ,5 5 7 7 8 ,5 6 4 650 1 ,9 2 6 518 156 950 255 1 ,0 4 5 14 488 4 4 202 8 5 ,0 6 6 6 176 46 5 (2 4 ) 2,888 2 2 85,691 98 8 6 3 ,6 0 8 442 4 ,8 9 6 151 170 975 (2 4 ) 5 ,9 0 0 8 5 ,5 5 5 6 1 2 ,8 8 7 1 ,7 7 2 ,5 9 5 7 6 8 ,5 8 4 7 8 0 ,1 8 3 2 ,8 5 5 ,4 6 0 1 4 ,8 9 1 8 0 ,1 2 4 6 0 ,5 6 5 1 2 ,7 2 2 8 ,8 5 0 7 ,5 5 5 4 0 ,5 2 9 648 5 7 ,1 1 2 50 176 6 4 ,2 0 3 1 ,8 0 2 5 ,5 5 1 2 ,8 0 0 117 58 142 1 ,4 4 9 14 542 (2 4 ) 4 2 0 ,1 5 2 5 ,4 5 6 1 6 ,8 9 5 8 1 ,8 2 4 1 ,4 4 4 569 12 5 8 8 ,5 0 2 5 ,0 5 7 8 5 ,0 9 2 2 7 ,5 1 0 2 ,0 1 9 8 ,9 0 5 4 ,6 7 6 1 4 ,2 9 4 217 5 ,4 1 8 19 96 5 7 9 ,8 6 7 4 0 ,9 5 0 2 6 ,5 2 4 5 0 ,4 5 6 6 ,1 4 9 685 2 ,5 9 0 8 ,7 4 1 124 6 ,5 7 6 44 48 1 ,1 2 1 ,5 9 2 1 2 ,5 4 3 5 9 ,4 5 3 1 1 9 ,8 5 5 8 ,6 2 0 8 ,0 2 7 4 ,4 8 5 2 3 ,3 1 5 500 1 5 ,7 3 5 57 168 586 5 8 0 ,6 0 8 285 2 6 7 ,5 5 6 548 1 8 5 ,0 1 5 17, 88« 116 1 8 ,7 0 5 57 88 1 2 ,2 5 6 > ,8 5 0 ,2 1 2 4 ,4 8 2 1 ,8 1 6 ,1 1 0 5 ,8 4 5 3 ,5 4 6 ,9 4 9 514 9 8 1 ,0 0 1 76 1 9 0 ,1 1 7 65 4 1 ,5 8 2 660 5 4 9 ,2 2 6 7 9 ,0 5 9 140 1 1 2 ,9 8 6 1 2 6 ,1 8 0 5 ,6 1 2 ,9 6 6 1 ,7 4 9 ,6 0 0 7 2 9 ,4 9 2 4 ,2 1 9 ,5 7 5 8 8 4 ,7 2 7 7 5 5 ,2 2 8 1 9 ,0 1 6 ,1 5 6 6 0 4 ,0 7 9 1 9 ,4 5 4 ,8 3 3 8 5 ,5 3 5 L,9 5 2 , 7 0 5 29 C o m p ile d n e t p r o f i t o r n o t l o s s 8 1 4 ,6 6 5 8 1 2 ,5 6 2 3 2 9 ,8 5 4 5 2 8 ,8 5 5 4 0 5 ,4 6 4 4 0 4 ,6 2 7 1 9 1 ,5 8 9 1 9 1 ,2 8 8 6 8 ,8 0 7 6 8 ,8 0 6 5 ,1 7 7 5 ,1 6 5 5 5 ,5 5 0 5 5 ,4 2 2 2 8 /2 0 2 2 8 /2 0 2 8 ,8 0 8 8 ,8 0 2 2 2 ,7 9 6 2 2 ,7 5 0 1 8 ,8 6 1 1 8 ,5 1 7 691 672 80 (1 8 l e s s 2 8 ) M et In c o n e o r d e f i c i t 2 8 / (2 9 l e s s 1 2 ) 6 1 ,9 2 4 1 ,6 1 1 8 4 ,8 8 7 766 5 5 ,7 4 6 97 1 1 ,7 5 7 4 1 0 ,6 5 3 98 In c c n e ta x (D e c la re d v a lu e ) 1 6 5 ,8 2 1 2 ,6 4 5 731 81 82 2 ,0 4 9 26 6 ,6 3 5 69 5 ,5 5 1 69 2 ,1 5 8 41 2 ,1 9 9 1 1 ,7 4 1 5 ,5 9 9 8 5 ,8 4 8 6 ,7 0 2 6 5 ,5 5 5 8 5 ,6 5 5 2 ,0 7 6 1 6 6 ,4 6 7 1 6 ,0 9 5 9 ,7 6 2 2 9 /1 ,5 0 8 2 6 6 ,3 1 9 5 1 9 ,8 U 6 ,7 5 5 6 4 8 ,1 9 6 5 1 1 ,2 2 8 1 0 ,1 8 7 1 8 9 ,2 4 9 6 ,1 9 5 2 7 0 ,6 6 4 2 ,8 9 2 88 84 e x c e s s -p ro fits ta x T o ta l ta x C o n p ils d n e t p r o f i t l o s s to ta l ta x (2 9 lo s s 88) D iv id e n d s p a id » C ash an d a s s e t s o th e r th a n c o r p o r a t i o n 's ow n s to c k C o r p o r a t i o n 's ow n s t o c k F o r fo o tn o te s , see p ag es 10 sa d 11. 1 0 0 ,0 7 9 582 1 111 10 1 0 ,7 4 5 2 9 /5 0 9 5 7 ,0 6 6 2 ,4 4 6 4 4 ,7 8 7 4 7 ,2 4 7 2 ,5 9 7 4 1 ,7 7 0 6 ,5 8 8 1 5 ,9 9 2 7 ,6 4 4 7 ,1 2 2 1 ,5 8 8 14 54 48 54 8 5 6 7 8 9 10 57 19 5 ,6 6 8 ,4 9 6 1,120 8 « 14 15 16 17 18 19 20 21 22 28 24 25 26 27 C o rp o ra tio n ra ta n ia , 1859, by in d u s tr ia l g ro u p s, o r d e f i c i t , in c o m e t a x , » u m b e r o f r e t u r n s , c o m p ile d r e c e i p t s a n d c o m p ile d d e d u c tio n s , c o m p ile d n e t p r o f i t o r n e t l o e s , ( d e c l a r a d v a lu e ) e x c e s s - p r o f i t s t a x , t o t a l t a x a n d d iv id e n d s p a i d - C o n tin u e d (M o n e y f i g u r e s i n th o u s a n d s o f d o l l a r s ) M a jo r i n d u s t r i a l g ro u p s 1 / - T rad e R e ta il D e a le rs in a u to m o b ile s , a c c e s s o rie s . tire s , b a tte rie s 1 2 5 4 5 6 7 8 9 10 11 12 15 f■ 14 15 16 17 18 20 21 22 25 24 25 26 27 28 29 N um ber o f r e t u r n s 6 / R e c e ip ts , ta x a b le . O ró se s a le s 7 / Qrosa r e c e i p t s f r o m o p e r a t i o n s 8 / R e n te a n d r o y a l t i e s 9 / N et c a p ita l g a in 1 0 / N et g a in , s a le o f p ro p e rty o th e r th a n c a p i t a l a a a a ta 1 1 / D iv id e n d s , d o m s s tie c o r p o r a tio n s 2 2 / D iv id e n d s , f o r e ig n c o r p o r a tio n s 1 5 / O th e r r e c e ip ts R e c e ip ts , p a r t i a l l y an d w h o lly ta x -e x e m p t, I n t e r e s t o n O o v e la m e n t o b l i g a t i o n s . S u b je c t to e x c e s s - p r o f its ta x 1 4 / W h o lly ta x - e x e m p t 1 5 / T o ta l e n f i l a d re o e ip ts 1 6 / D e d u c tio n s , C o st o f goo d s s o ld 1 7 / C o st o f o p e ra tio n s 1 8 / C a c c u s a tio n o f o f f ic e r s R e n t p a id on b u s in e s s p ro p e rty R e p a irs 1 9 / B ad d e b ts I n t e r e s t p a id T ax as p a id 2 0 / C o n trib u tio n s o r g i f t s 2 1 / D e p re c ia tio n D e p le tio n N et c a p ita l lo e s 1 0 / N et lo s s , s a le o f p ro p e rty o th e r th a n c a p i t a l a s s e t s 1 1 / O th e r d e d u c tio n s 2 2 / T o ta l o o ^ lls d d e d u c tio n s SO C o m p ile d n e t p r o f i t o r n e t l o s s (1 5 l a s s 2 8 ) N e t in c o m e o r d e f i c i t 2 5 / ( 2 9 l a s s 1 2 ) 51 52 In co m e t a x (D e c la re d v a lu e ) 55 54 55 56 e x c e s s -p ro fits ta x T o ta l ta x C o m p ile d n o t p r o f i t l o s a t o t a l t a x (2 9 l a s a 55) D iv id e n d s p a i d , C ash a n d a s s e t s o th e r th a n c o r p o r a t i o n 's asm s t o c k C o r p o r a t i o n 's ow n s t e a k F o r footnotes, mmm pages 1 0 a w l 11« F illin g s ta tio n s H a rd w a re C o n tin u e d C o n tin u e d S e rv ic e C o n tin u e d L um ber and coal y a rd s n e t in c o m e O th e r re ta il tra d e R e ta il tra d e not a llo c a b le not a llo c a b le T o ta l s e rv ic e A m usem ent s e rv ic e s e rv i» re p a ir s e rv ic e s 1 0 ,4 7 8 1 ,9 6 2 5 ,5 0 8 8 ,1 8 6 1 4 ,5 4 9 2 ,5 5 2 1 5 ,9 0 7 4 1 ,0 5 0 1 5 ,9 4 5 7 ,0 2 0 4 ,6 5 1 9 ,5 4 2 2 ,9 0 0 ,8 6 4 9 1 ,8 5 5 2 ,0 0 0 191 2 5 6 ,5 5 0 6 ,1 5 6 89 2 ,5 0 7 62 2 0 2 ,5 9 7 1 ,4 5 4 786 549 17 1 ,0 4 1 ,0 2 0 1 8 ,0 2 1 2 ,6 6 7 4 ,5 1 6 541 1 ,5 5 0 ,5 9 5 5 2 ,8 8 6 5 ,7 5 2 4 ,9 6 6 276 2 8 0 ,0 7 8 6 ,7 4 8 845 1 ,4 4 5 152 5 ,4 1 8 ,8 2 4 7 5 ,9 5 4 5 ,5 9 5 1 2 ,0 5 8 795 6 8 0 ,6 8 0 2 ,8 2 6 ,5 6 2 7 ,4 1 1 7 8 ,8 5 8 2 ,4 5 6 5 6 5 ,5 0 5 8 1 8 ,8 8 8 1 ,1 2 6 5 9 ,4 5 9 957 9 0 ,9 0 0 6 1 4 ,4 5 7 1 ,1 4 2 4 ,2 0 4 596 1 5 4 ,5 1 2 6 6 ,4 7 0 IS O 5 ,0 5 6 161 5 8 ,4 8 5 1 ,0 5 5 ,6 7 9 5 ,5 1 5 2 4 ,5 0 6 586 119 576 7 2 1 ,0 5 1 117 18 44 (8 4 ) 8 ,8 7 5 471 277 869 6 1 1 ,8 5 2 945 54 2 1 ,4 4 0 108 195 (2 4 ) 9 ,5 9 7 1 ,5 2 6 148 (8 4 ) 1 ,5 5 1 1 ,5 5 1 2 0 ,9 8 1 8 ,8 8 0 4 0 ,4 6 8 442 1 ,6 6 6 12 1 1 ,6 5 8 217 5 ,8 8 4 1 ,4 6 1 6 ,5 8 9 167 45 1 5 ,7 9 9 2 8 ,4 7 5 (8 4 ) 1 ,7 6 5 597 1 4 ,4 5 7 6 ,9 7 6 1 4 ,6 5 5 25 15 92 105 95 45 78 65 81 14 206 262 528 80 157 95 5 55 51 5 ,0 2 1 ,2 0 5 2 4 6 ,7 5 6 8 0 7 ,5 2 2 1 ,0 8 0 ,0 8 1 1 ,4 5 5 ,1 1 4 2 9 9 ,0 1 1 5 ,5 6 1 ,0 8 1 5 ,6 6 8 ,5 8 0 1 ,2 5 9 ,6 4 2 7 2 5 ,4 8 2 2 0 8 ,U 0 1 ,1 5 9 ,5 1 4 2 ,4 9 4 ,6 1 6 6 6 ,8 8 0 5 7 ,7 6 4 5 2 ,5 8 5 4 ,0 2 7 8 , /4 5 1 0 ,8 0 9 2 0 ,2 6 9 256 9 ,9 6 2 256 177 1 7 6 ,7 2 8 5 ,9 4 2 5 ,5 1 5 5 ,7 5 5 2 ,0 5 1 729 747 5 ,4 0 4 8 0 5 ,6 9 9 1 2 ,4 2 2 4 0 ,0 0 8 7 ,5 6 6 4 ,1 8 5 1 0 ,6 9 2 6 ,5 6 1 1 6 ,9 0 9 221 1 2 ,8 1 8 215 455 9 9 2 ,5 5 6 2 5 ,4 7 9 5 6 ,0 2 5 5 8 ,5 9 8 4 ,0 5 5 9 ,9 1 0 6 ,4 5 7 1 9 ,9 5 4 259 1 4 ,6 6 2 504 229 2 0 8 ,8 6 7 4 ,6 5 7 9 ,9 5 4 4 ,8 9 4 875 5 ,6 5 4 1 ,6 9 9 4 ,4 5 5 66 5 , 1 SL 14 52 2 ,6 9 6 ,5 5 0 4 0 ,5 2 8 9 1 ,4 9 7 4 2 ,5 0 1 1 0 ,5 0 5 1 8 ,4 1 2 1 5 ,5 4 8 4 4 ,5 1 2 627 5 5 ,7 9 6 496 4 1 6 ,6 9 6 1 ,5 5 0 ,5 6 9 1 8 7 ,9 2 7 1 9 7 ,9 5 5 4 4 ,0 5 6 2 0 ,0 6 6 6 1 ,0 8 5 1 2 0 ,1 4 2 1 ,1 7 4 1 4 1 ,6 2 4 408 960 2 0 5 ,7 9 8 5 8 9 ,4 9 5 6 0 ,9 5 4 5 8 ,5 9 2 2 8 ,5 4 5 6 ,6 5 9 5 4 ,0 4 5 5 8 ,8 9 7 500 7 5 ,5 6 7 U S 518 6 5 ,4 2 5 5 5 5 ,2 0 4 5 6 ,7 7 1 1 7 ,4 8 2 2 ,5 2 1 4 ,9 9 1 2 ,1 5 6 1 2 ,6 9 5 257 1 4 ,1 6 5 55 212 9 4 ,4 0 8 2 8 ,1 8 2 1 2 ,6 7 7 2 2 ,2 6 7 1 ,2 8 0 1 ,0 7 9 2 ,5 5 7 5 ,1 9 8 55 6 ,4 6 2 U 65 2 1 ,4 2 5 4 5 4 ,2 6 0 5 0 ,0 8 4 8 7 ,4 5 9 9 ,5 7 5 4 ¡8 0 1 1 9 ,7 0 7 5 4 ,5 1 2 504 5 9 ,1 5 8 159 189 14 15 16 17 5 ,9 4 0 17 56 1 5 6 ,5 1 8 886 1 0 ,7 5 2 4 ,4 1 9 280 1 ,5 0 2 1 ,2 2 7 5 ,0 1 5 54 1 ,4 2 7 7 50 455 5 0 2 ,2 1 5 51 5 6 ,0 5 4 102 2 7 ,8 8 4 748 1 8 0 ,4 5 9 624 2 5 9 ,4 2 1 728 5 5 ,9 8 6 2 ,4 0 9 4 8 7 ,1 5 5 4 ,5 8 7 1 ,0 6 0 ,9 2 7 2 ,5 2 9 5 5 5 ,5 7 5 168 1 7 9 ,5 1 6 226 5 5 ,0 6 4 895 5 9 7 ,4 7 1 26 27 5 ,0 0 8 ,7 5 4 2 4 0 ,9 4 5 2 0 7 ,1 0 4 1 ,0 6 8 ,5 5 6 1 ,4 2 8 ,4 5 1 2 9 6 ,9 7 0 5 ,4 8 1 ,7 5 7 5 ,5 8 7 ,9 5 2 1 ,2 6 2 ,7 6 4 6 9 0 ,5 7 4 2 0 9 ,2 6 6 1 ,0 9 9 ,9 7 1 28 1 2 ,4 4 9 1 2 ,4 5 4 5 ,7 9 1 5 ,6 8 8 417 417 1 5 ,5 4 5 1 5 ,5 0 0 6 ,6 6 5 6 ,5 9 8 2 ,0 4 1 2 ,0 2 7 7 9 ,5 4 6 7 9 ,0 8 2 8 0 ,4 2 8 8 0 ,1 0 0 £ 3 /1 5 ,1 2 2 2 8 /1 5 ,2 0 2 5 5 ,1 0 8 5 5 ,0 1 5 “ A , 166 £ 2 /1 ,1 5 8 5 9 ,5 4 2 5 9 ,2 9 2 29 5 ,4 4 0 67 1 ,1 9 8 7 508 12 5 ,6 5 7 85 5 ,7 8 1 119 986 1 7 ,0 1 0 268 2 7 ,0 0 0 . 551 4 ,7 1 7 84 6 ,5 8 7 1 2 ,8 6 7 71 474 15 51 52 5 ,6 0 7 1 ,2 0 6 621 5 ,7 4 0 5 ,9 0 0 1 ,0 5 9 1 7 ,2 7 8 2 7 ,5 5 2 4 ,8 0 1 8 ,8 5 8 488 1 2 ,9 6 9 55 8 ,9 4 2 4 ,5 8 6 2 8 /1 0 5 9 ,8 0 5 2 ,7 6 4 1 ,0 0 2 6 2 ,0 6 6 5 5 ,0 9 6 2 9 /1 7 ,9 2 5 2 6 ,4 5 0 £ 9 /1 ,6 4 5 4 6 ,5 7 4 54 7 ,2 5 4 152 4 ,2 0 1 9 1 ,0 2 0 25 1 0 ,7 9 5 578 1 6 ,6 8 0 118 1 ,9 8 6 159 5 1 ,5 1 5 1 ,1 0 2 8 7 ,9 7 5 1 ,0 1 0 1 2 ,9 4 5 152 2 5 ,6 1 9 147 1 ,0 9 5 1 41,a u 416 55 56 22 8 (8 4 ) SB 2,o a o 222 _ 1 2 5 4 5 6 7 8 9 10 11 12 U 18 19 20 21 22 25 24 25 50 102 i C o rporation returns, 1 9 3 9 , JSSm ^ vS^rêicIs^^iS^r^l^1^ by d i ^ d « “ 1» P “ 1 * ^ Continued (Money f i gures in thousands o f dollars) M a jo r i n d u s t r i a l g r o u p s 1 / — C o n tin u e d S e rv ic e 2 3 4 5 6 7 8 9 10 U 12 re tu rn s 6 / R e c e ip ts , ta x a b le i O ro ss s a le s 7 / G ro ss r e c e ip ts fro m o p e r a tio n s 8 / In te re s t R e n ts a n d r o y a l t i e s 9 / N e t c a p i t a l g a in IQ / N et g a in , s a le o f p ro p e rty o th e r th a n c a p i t a l a s s e ts 1 1 / D iv id e n d s , d o m e s tic c o r p o r a t i o n s W D iv id e n d s , f o r e i g n c o r p o r a t i o n s J J / O th e r r e c e i p t s R e c e i p t s , p a r t i a l l y a n d w h o lly ta x -e x e m p t« I n t e r e s t o n G o v e rn m e n t o b l i g a t i o n s « S u b je c t to e x c e s s - p r o f its ta x ¿ i / W h o lly ta x - e x e m p t 1 5 / T o t a l c o m p ile d re c e ip ts 1 6 / rSPo D e d u c tio n s « C o s t o f go o d s s o ld XU C o st o f o p e ra tio n s 1 8 / C o m p e n s a tio n o f o f f i c e r s B ent p a id on b u s in e s s p ro p e rty R e p a irs 1 2 / B ad d e b t s I n t e r e s t p a id T axes p a id £ 2 / C o n trib u tio n s o r D e p re c ia tio n D e p le tio n N et c a p ita l lo s s N et lo s s , s a le o th a n c a p i t a l a s O th e r d e d u c tio n s g ifts 21/ IQ / f p ro p e rty o th e r s e ts 1 1 / 22/ T o t a l c o m p ile d d e d u c tio n s C o m p ile d n e t p r o f i t o r n e t l o o s (IS le s s 28) H tt l n c o t o r d i i i c i t In c o m e t a x (D e c la re d v a lu e ) Z£ / (2 9 l® * s 1 2 ) e x c e s s -p ro fits ta x T o ta l ta x C o ^ lle d For footnotes,'SO* paces 10 and 11. B anks and tru s t com p a n ie s 1l o r t g a g e in d t i t l e c n p a n ie s n v e s tm e n t .r u s t s and n v e s tm e n t ¡c n p a n ie s ' [o ld in g • o m p a n ie s 4 / )th e r ;o r p o ra tio n s m o ld in g s e c u ri tie s £ / Security and coaakxiltyexchange b ro k e rs and dealers ■ 1 6 ,1 0 6 1 ,4 5 1 768 3 ,3 5 0 2 ,1 0 3 207 1 4 2 ,5 5 2 687 5 ,8 6 7 4 8 ,6 7 2 2 6 6 ,8 6 0 1 ,6 7 6 5 ,5 9 7 531 2 ,9 8 9 4 ,0 2 7 25 17 4 8 7 ,6 7 4 2 ,9 1 6 ,2 6 2 2 ,1 4 7 ,1 3 2 1 ,7 8 7 ,1 5 2 1 5 8 ,4 3 4 2 7 8 ,3 5 4 9 0 6 ,2 2 5 9 6 ,3 6 7 1 0 8 ,6 8 6 2 0 ,8 5 3 1 5 ,5 7 3 1 4 ,5 9 0 1 ,8 2 4 1 4 ,2 2 2 2 1 ,7 0 1 1 ,2 8 2 1 1 ,6 2 7 2 8 ,6 8 2 1 5 8 ,4 5 4 2 ,9 7 1 4 ,6 6 8 5 ,5 0 5 5 ,4 8 1 3 7 ,1 1 9 2 ,9 7 8 5 ,7 8 1 8 9 ,6 7 9 4 ,5 4 7 1 ,5 7 6 1 ,9 6 6 126 935 432 5 ,5 4 4 2 18 7 5 ,0 9 8 1 ,1 1 6 ,1 8 7 7 1 ,4 7 6 1 3 7 ,4 1 6 2 ,0 5 7 2 2 ,7 4 1 575 3 6 ,2 7 7 218 832 2 4 ,2 9 8 602 1 0 9 ,8 6 1 3 ,5 1 9 1 ,4 4 3 134 6 5 4 ,5 5 0 5 8 ,6 8 5 1 1 ,5 0 7 228 1 7 6 ,2 1 8 5 ,9 1 7 3 ,0 5 9 4 1 ,5 4 6 4 ,0 8 6 42 5 ,3 6 4 1 2 9 4 ,5 6 3 4 2 3 , 514 2 4 3 ,9 0 9 2 0 1 ,9 7 2 480 1 ,4 7 4 652 537 1 ,5 3 0 524 1 ,8 4 4 2 ,4 8 2 856 5 ,3 1 6 1 ,8 9 7 ,1 2 0 5 9 ,9 3 9 2 4 4 ,6 1 0 1 5 2 ,9 7 7 9 ,2 1 4 ,7 0 9 9 2 1 ,6 8 5 7 ,5 8 2 1 6 5 ,4 4 6 3 3 0 ,4 5 0 3 0 ,3 6 6 1 2 1 ,9 3 4 2 7 ,6 8 5 1 1 ,6 4 2 2 ,2 7 3 2 ,5 3 2 2 ,7 6 0 8 ,6 9 5 96 8 ,2 9 8 107 164 1 ,2 7 8 1 ,4 9 4 757 713 44 25 80 151 1 177 4 11 6 9 ,4 7 5 1 9 5 ,9 8 1 2 6 /4 5 9 ,6 5 7 1 9 4 ,1 5 0 1 1 0 ,6 8 9 3 1 9 ,4 6 4 1 ,0 1 6 ,9 8 4 6 2 6 ,6 5 4 4 ,2 5 1 4 0 1 ,0 3 8 2 2 ,4 5 7 5 1 ,8 5 3 627 1 8 6 ,0 5 8 4 7 ,6 8 5 1 5 ,6 4 0 1 8 5 ,7 3 3 2 5 5 ,7 6 5 9 8 ,8 6 4 1 ,8 4 4 5 2 ,7 4 8 139 3 5 ,2 5 6 1 ,3 3 4 5 ,6 3 8 1 ,0 3 8 1 ,2 3 5 8 ,3 8 4 1 4 ,9 0 2 4 ,6 7 » 25 3 ,0 0 1 25 576 1 ,8 5 6 4 ,1 9 3 775 188 6 ,0 1 9 2 2 ,4 6 0 4 ,7 6 8 94 377 116 549 9 ,5 1 3 9 ,9 7 6 2 ,9 4 1 78 1 2 ,0 4 9 1 9 2 ,0 7 8 1 2 ,2 6 0 193 3 ,2 0 7 428 195 2 ,7 7 0 140 9 ,8 1 7 913 233 1 0 ,5 1 5 5 0 ,1 7 9 7 ,9 1 2 745 1 ,3 5 2 251 1 ,7 8 8 569 1 1 0 ,9 9 7 1 2 ,7 2 6 1 0 1 ,5 0 8 2 6 /4 ,3 0 0 ,9 7 7 1 9 ,7 1 2 5 9 8 ,0 4 7 4 ,7 6 1 2 7 ,7 4 6 476 5 2 ,6 2 5 369 6 1 ,2 1 4 7 ,4 6 1 2 2 /7 ,8 5 5 ,0 9 7 1 ,4 9 8 ,1 1 9 7 5 ,3 5 6 7 4 ,4 9 5 5 2 8 ,1 1 7 2 ,5 3 3 2 ,2 5 4 2 8 /7 9 2 g /7 9 1 ,3 5 9 ,6 1 2 9 3 6 ,0 9 8 3 9 9 ,0 0 1 1 9 7 ,0 2 9 2 8 /1 5 ,3 9 7 £ 3 /1 4 ,8 7 1 2 ,5 3 2 59 25 1 1 3 1 ,5 5 8 915 1 4 ,3 6 9 256 483 7 178 99 301 (2 4 ) C o m m e rc ia l c r e d it and fin a n c e c o m p a n ie s finance c o m p a n ie s and p e rso n a l lo a n c o m p a n ie s 2 ,1 5 4 1 ,8 7 4 6 ,4 9 4 1 5 6 ,4 7 1 4 7 ,3 0 0 873 265 2 ,5 1 0 4 1 ,0 6 7 7 6 ,9 5 3 633 149 4 ,7 1 7 4 ,6 2 5 3 ,9 5 5 5 9 ,7 2 9 837 259 8 ,1 3 6 140 5 ,9 8 9 61 1 ,0 8 3 (2 4 ) 2 ,9 8 5 376 6 ,7 7 5 43 1 ,3 8 4 58 45 105 92 199 2 2 6 ,0 0 7 1 2 5 ,3 9 2 6 2 ,7 2 9 13 3 ,7 4 9 1 ,9 9 0 3 ,9 1 5 732 710 1 1 ,9 6 6 3 ,9 1 9 2 ,7 8 5 14 15 16 17 18 19 2 ,4 7 8 25 5 ,8 1 0 5 ,6 7 9 1 3 ,7 4 6 4 ,5 1 5 416 1 4 ,7 8 1 2 6 ,9 4 9 6 ,5 8 8 116 2 ,0 8 1 1 ,7 9 6 4 ,7 8 7 8 ,5 2 5 4 ,3 5 5 132 7 ,7 7 7 1 6 ,1 1 9 3 ,8 2 2 4 ,5 2 2 136 2 ,4 8 3 5 5 ,1 1 9 2 ,1 4 7 6 5 ,8 9 6 3 0 4 ,5 0 0 1 0 2 ,2 1 5 9 0 ,9 5 1 9 0 ,4 1 4 6 1 7 ,5 8 5 6 1 6 ,8 6 1 2 ,8 0 7 36 2 9 ,7 5 6 22 3 0 ,6 1 6 2 6 ,7 7 1 7 ,2 7 1 189 5 ,2 2 3 4 ,5 3 9 5 ,5 7 5 90 1 ,0 2 8 20 21 22 23 101 10 870 6 ,5 9 1 57 58 202 24 25 108 8 9 ,5 2 4 134 4 7 ,4 3 6 5 ,7 6 8 3 5 ,1 2 1 26 27 1 5 3 ,6 7 7 1 6 8 ,0 5 3 9 5 ,7 1 3 7 5 ,5 1 5 1 4 2 ,3 9 5 1 3 9 ,9 1 2 2 8 /7 0 0 2 2 7 4 ,0 1 6 5 7 ,9 5 4 5 7 ,9 3 1 2 9 ,6 7 9 2 9 ,5 7 5 2 § /1 2 ,5 8 6 2 2 /1 2 ,7 8 4 7 ,5 5 6 23 1 ,7 1 1 62 9 ,0 6 5 25 5 ,0 3 9 14 1 ,9 8 4 9 ,0 8 9 5 ,0 5 8 2 ,0 0 5 11 5 1 20 1 4 ,6 2 5 2 ,8 4 3 7 ,5 7 9 25 1 3 2 ,4 7 2 2 9 ,7 7 8 2 ,5 9 1 490 1 ,7 7 2 2 9 /2 ,4 7 2 2 4 ,6 2 6 2 9 /1 4 ,5 9 0 8 8 ,1 0 7 4 8 ,8 6 5 3 8 4 ,3 7 6 1 5 4 ,8 1 6 1 ,2 2 7 ,1 4 0 5 8 7 ,6 0 7 2 9 /1 0 4 2 9 /1 3 ,8 8 7 2 2 /5 8 7 ,2 2 £ 314 77 1 ,4 5 3 ,5 6 7 4 1 ,8 0 5 2 1 5 ,6 5 1 4 ,6 4 7 4 ,1 1 2 3 1 5 9 ,2 2 6 IS O 5 3 7 ,9 7 8 3 2 ,4 5 0 1 5 8 ,1 2 6 626 8 ,4 6 9 152 4 7 ,1 6 0 798 1 8 ,9 5 4 1 ,1 9 4 1 3 ,1 0 2 64 n e t p r o f it le s s t o t a l ta x (2 9 l e s s 33) D iv id e n d s p a id « C ash a n d a s s e t s o th e r th a n c o r p o r a t i o n 's ow n s t o c k C o r p o r a t i o n 's ow n s to c k T o ta l fin a n c e , in su ra n c e , re a l e s ta te , and le s s o r s of real p ro p e rty S e rv ic e not a llo c a b le O th e r s e rv ic e , in c lu d in g s c h o o ls N um ber o f - C o n tin u e d C o rp o ra tio n re tu rn s , 1939, by m a jo r i n d u s t r i a l g ro u p s « o r d e f i c i t , in c o m e t a x , H um ber o f r e t u r n s , c o m p ile d r e c e i p t s a n d c o m p ile d d e d u c t i o n s , c o m p ile d n e t p r o f i t o r n e t l o s s , ( d s o l a r e d s a l v e ) e x c e s s - p r o f i t s t a x , t o t a l t a x a n d d i v id e n d s p a i d - C o n tin u e d (H o n ey f i g u r e s i n M a jo r i n d u s t r i a l g r o u p s J / F in a n c e , In su ra n c e c a rrie rs , a g e n te , e t c . 1 2 3 4 6 6 7 8 9 10 n 12 18 O» 1 14 IS 16 17 18 19 20 21 22 28 24 28 26 27 28 29 N um ber o f r e t u r n s 6/ R e c e ip ts , ta x a b le « G ro ss s a l e s 7 / G ro se r e c e i p t s fro m o p e r a tio n s 8 / In te re s t R e n ts a n d r o y a l t i e s 9 / M et c a p ita l g a in 1 0 / H at g a in , s a le o f p ro p e rty o th e r th a n c a p ita l a s s e ts 1 1 / D iv id e n d s , d o m e s tic c o r p o r a tio n s 1 2 / D iv id e n d s , f o r e ig n c o r p o r a tio n s 1 3 7 O th e r r e c e i p t s R e c e i p t s , p a r t i a l l y a n d v b o l l y ta x - e x e m p t« I n t e r e s t o n G o v e rn m e n t o b l i g a t i o n s « S u b je c t to e x c e s s - p r o f its ta x 1 4 / W h o lly t a x - e x e m p t 3 ,5 / T o t a l c o m p ile d r e c e i p t s 16/ D e d u c tio n s « C o s t o f goo d s s o ld 1 7 / C o st o f o p e ra tio n s 1 8 / C o m p e n s a tio n o f o f f i c e r s R an t p a id o n b u s in e s s p ro p e rty R e p a irs 1 9 / B ad d e b ts I n te r e s t p a id T axes p a id 2 0 / C o n trib u tio n s o r g i f t s 2 1 / D e p re c ia tio n D e p le tio n N et c a p ita l lo s s 1 0 / N et lo s s , s a le o f p ro p e rty o th e r th a n c a p ita l a s s e ts 1 1 / O th e r d e d u c tio n s 2 2 / T o t a l c o m p ile d d e d u c tio n s 80 C o m p ile d n e t p r o f i t o r n e t l o s s (1 5 l e s s 2 8 ) N e t in c o m e o r d e f i c i t 2 3 / ( 2 9 l e s s 81 82 In c o m e t a x (D e c la re d v a lu e ) 88 84 85 88 e x c e s s -p ro fits ta x T o ta l ta x C o m p ile d n e t p r o f i t l e s s t o t a l t a x (2 9 l e s s 33) D iv id e n d s p a id « C ash a n d a s s e t s o t h e r th a n c o r p o r a t i o n ' s ow n s t o c k C o r p o r a t i o n ' s « am s t o c k For footnotes, eee pages IO auod U . 12) n e t in c o m e th o u s a n d s o f d o lla r s ) in s u ra n c e , r e a l e s ta te , and le s s o r s o f r e a l p r o p e r ty - C o n tin u e d R eal e s ta te , F in a n c e , L e sso rs o f in c lu d in g re a l in s u ra n c e , le s s o rs o f p ro p e rty , re a l e s ta te , b u ild in g s except and le s s o r s b u ild in g s o f re a l p ro p e rty n o t a llo c a b le C o n tin u e d A g ric u ltu re , f o r e s tr y , C o n s tru c tio n T o ta l a g ric u ltu re , fo re s try and fis h e ry A g ric u ltu re and se rv ic e s and fis h e ry F o re s try F is h e ry N a tu re o f b u s in e s s not a llo c a b le , except tra d e e 7 ,4 7 5 9 2 ,8 7 9 4 ,0 8 9 6 ,9 1 8 1 6 ,0 6 1 8 ,6 5 6 7 ,8 5 4 450 552 4 ,2 8 4 1 5 1 ,4 9 9 5 4 1 ,8 0 2 2 7 ,5 6 9 1 ,5 4 7 ,1 3 7 1 0 ,6 9 6 3 ,7 1 7 1 0 0 ,2 9 5 1 ,9 4 2 5 9 ,2 6 0 2 ,4 2 1 1 5 ,4 3 5 4 5 ,0 7 8 5 0 ,5 1 4 2 4 ,9 2 6 5 ,9 5 2 5 9 6 ,8 6 4 1 ,6 1 1 ,0 0 4 2 ,9 2 4 7 ,7 2 6 1 ,6 1 6 4 6 4 ,8 8 6 1 1 2 ,6 9 5 2 ,4 8 5 9 ,3 2 5 3 ,0 2 6 4 2 4 ,0 5 3 1 0 4 ,2 1 6 2 ,1 8 0 8 ,9 5 6 1 ,6 5 1 1 5 ,1 9 1 2 ,7 8 2 272 509 1 ,2 1 1 2 5 ,6 4 1 5 ,6 9 5 31 80 164 8 2 ,4 2 9 1 7 ,7 0 6 1^295 2 ,9 5 5 999 2 1 ,7 8 9 ,6 7 5 8 1 5 ,5 0 2 1 9 4 ,8 8 0 3 ,5 6 4 309 9 4 ,5 1 6 1 ,8 6 4 9 ,8 4 5 2 6 ,7 1 3 1 5 ,0 0 1 156 5 3 ,8 9 7 723 2 ,9 1 0 IS 1 4 ,8 0 5 1 ,8 9 5 1 9 ,6 8 0 519 6 ,5 6 7 1 ,9 4 2 6 ,2 8 9 544 1 9 ,9 1 6 739 6 ,7 6 9 1 ,5 4 9 8 ,5 7 5 436 6 ,4 7 2 1 ,5 4 7 7 ,8 1 7 2S7 265 1 555 46 52 (2 4 ) 221 580 1 ,4 9 2 46 2 ,7 6 6 4 2 ,6 1 3 2 0 9 ,1 8 6 1 ,1 1 9 1 ,2 8 6 290 191 875 2 ,2 1 9 518 490 830 555 814 522 14 5 2 9 71 67 3 ,1 6 1 ,7 0 4 1 ,8 5 6 ,8 7 5 1 8 6 ,5 6 9 1 8 8 ,8 5 7 2 ,2 4 9 ,8 8 1 6 1 1 ,2 0 7 5 S B ,4 4 5 2 0 ,8 4 0 5 1 ,9 2 2 1 1 0 ,4 0 5 18 3 1 ,0 4 6 2 5 /4 6 .9 9 8 2 0 ,9 8 8 2 ,9 8 0 7 ,0 7 3 4 6 ,8 1 2 1 0 9 ,6 5 6 828 4 8 ,1 9 6 6 784 5 7 ,9 9 5 1 0 4 ,4 8 0 1 0 1 ,5 0 3 9 7 ,9 2 6 8 5 ,3 1 7 3 4 ,5 1 2 5 4 0 ,7 4 4 3 4 1 ,9 1 7 578 2 7 1 ,5 4 2 651 5 ,9 2 7 2 ,5 6 8 1 ,7 2 8 4 ,4 3 6 1 ,8 0 8 1 ,5 6 2 1 ,2 1 2 4 0 ,1 7 4 1 6 ,7 2 8 40 8 ,4 6 4 2 0 ,2 0 5 277 1 4 ,7 8 9 4 ,3 8 6 1 6 ,4 8 1 3 ,4 0 6 2 ,0 0 9 1 4 ,2 1 9 2 2 ,5 4 3 1 1 ,2 8 8 89 6 ,9 8 1 586 1 ,5 6 2 4 7 7 ,2 6 1 1 ,3 3 7 ,2 1 6 1 0 0 ,2 7 1 1 1 ,9 9 8 1 5 ,2 2 1 9 ,6 7 8 8 ,6 9 2 5 2 ,0 0 3 338 3 9 ,8 7 1 146 729 3 4 8 ,5 5 2 4 6 ,5 4 1 1 9 ,6 8 7 1 4 ,9 1 9 9 ,6 6 6 2 ,5 2 9 1 5 ,6 1 2 1 6 ,5 1 9 108 2 6 ,5 5 4 1 ,6 4 2 550 5 1 6 ,9 1 3 4 1 ,8 9 0 1 7 ,7 8 3 1 4 ,5 9 1 8 ,8 1 8 2 ,3 3 6 1 1 ,8 3 0 1 4 ,4 4 7 97 2 5 ,0 1 9 440 498 1 0 ,1 6 8 1 ,2 3 2 '7 8 5 90 144 53 1 ,4 7 9 1 ,4 4 0 9 2 ,1 3 5 1 ,2 0 1 40 2 1 ,4 7 1 5 ,4 1 9 1 ,0 6 9 257 706 157 505 452 2 1 ,5 8 0 1 12 6 6 ,7 4 1 8 ,2 4 0 5 ,5 3 7 1 ,7 5 5 969 2 ,7 2 8 3 ,4 6 0 8 ,5 6 6 20 8 ,3 1 8 281 288 14 IS 18 17 18 18 3 ,2 9 6 2 6 /2 ,7 2 1 ,8 7 0 5 5 ,7 5 8 5 2 2 ,1 4 7 1 ,6 8 0 2 1 ,6 6 4 4 ,8 3 8 4 6 ,5 6 8 1 ,0 6 8 1 8 4 ,0 9 4 2 ,1 4 1 9 5 ,6 2 4 1 ,1 6 1 9 0 ,2 0 2 846 2 ,5 5 8 155 2 ,8 6 4 2 ,4 4 9 1 8 ,0 1 2 2 7 /8 ,0 5 7 ,0 5 4 2 ,0 0 0 ,5 5 4 1 2 2 ,5 4 1 1 4 9 ,7 4 6 2 ,2 1 6 ,5 7 6 5 9 8 ,5 2 5 5 4 4 ,0 2 9 2 2 ,1 2 8 3 2 ,1 6 6 1 1 7 ,1 0 4 28 1 2 4 ,6 7 0 2 8 /8 4 ,5 1 6 2 8 /1 4 5 .6 7 9 2 8 /1 4 4 ,9 6 5 6 4 ,0 2 9 6 3 ,8 5 7 5 ,9 1 1 1 ,6 9 2 3 8 ,0 5 5 5 2 ,5 6 5 1 2 ,8 8 4 1 2 ,5 4 9 1 4 ,4 1 6 1 4 ,0 9 4 28A . 289 Z§/1,Z9Z 2 § /2 4 5 2 g /2 5 8 2 8 /6 .7 0 0 2 8 /6 ,7 6 7 29 80 2 4 ,5 6 8 69 1 8 ,4 0 9 321 1 8 ,0 6 8 51 2 ,7 4 3 29 1 0 ,7 0 0 . 467 5 ,6 8 3 141 5 ,1 9 9 151 528 7 156 5 746 18 2 4 ,6 5 7 1 8 ,7 3 0 1 3 ,0 9 9 2 ,7 7 2 1 1 ,1 6 8 5 ,8 2 5 5 ,5 3 0 536 159 764 1 0 0 ,0 5 3 2 9 /1 6 2 .4 0 9 5 0 ,9 2 9 1 ,1 3 8 2 1 ,8 8 7 7 ,0 5 9 9 ,0 8 6 2 9 A .6 2 4 2 2 /4 0 2 2 9 /7 .4 6 4 34 1 2 8 ,3 5 8 878 8 2 ,6 8 2 472 7 5 ,1 2 1 48 2 6 ,6 5 0 826 2 8 ,0 5 1 466 2 5 ,6 6 6 156 2 1 ,2 5 2 94 2 ,1 6 0 40 264 2 5 ,6 1 8 224 85 88 s 4 6 6 7 8 » 10 11 12 20 21 22 28 24 25 26 27 81 82 88 - 10 £ y la general, corporations are classified industrially on the one business activity which accounts for the largest percentage of "Total receipts«* Therefore, the industrial groups contain corporations not engaged exclusively in the industries in which they are classified« The indus trial classification is based on the Standard Industrial Classification, issued by the Division of Statistical Standards, Bureau of the Budget, Executive Office of the President« u/ Dividends from donestic corporations subject to taxation under Chapter 1 of the Internal Revenue Code (oolunn 2, Schedule 0, page 5, P o m 1120 and colons 2, Schedule E, page 2, P o m 112QA) which is the anount used for the eoaputatien of the dividends received credit« Dividends from corporations organised under the China Trade Act, 1922, and corporations entitled to the benefits of Section 251 of the Internal Revenue Code (corporations receiving a large portion of their gross incone from sources within a possession of the United States) are included in "Other receipts«" 2 / Includes toll roads and toll bridges which were included in "Other public utilities" for 1958, and excludes natural gas pipe lines which are included in "Other public utilities" (see note 5)« ¡J Includes natural gas pipe lines which were included in "Transportation" for 1938, and excludes toll roads and toll bridges which are included In "Transportation" (see note 2)« j/ Consists of corporations who at any tine during the taxable year owned 50 percent or note of the voting stock of another corporation and whose inoone from such stock was 50 percent or acre of the* anount of dividends reoeived« y y Consists of corporations (other than investment trusts and investment companies) who (a) at no time during the taxable year owned 50 percent or more of the voting stock of another corporation or (b) at any time during the taxable year owned 50 percent or more of the voting stock of another corporation but whose income from such stock was less than 50 percent of the amount of dividends reoeived« Excludes number of returns of inactive corporations« 7/ Gross sales lees returns and allowances where inventories are ea incomedetermining factor« Por "Cost of goods sold," see "Deductions«” y y Gross receipts from operations where inventories arc not an income-determining factor« Por "Cost of operations," see "Deductions«” Consists of gross amounts received« Repairs, interest, taxes, other expenses, deprecia tion, and depletion are Included in the proper deduction items« 10/ Excludes property used in trade or business of a character which is subject to the allowance for depreciation« Net capital lose ie limited to #2,000 except for eartain losses of banks and trust oaapanlea. Consists of net gain or loss frea property used in trade or business of a character which is subject to the ellowance for depreciation« w Reported in colusn 5, Schedule 0, page 3, P o m 1120 and in oolunn 5, Schedule E, page 2, P o m 112CVL, and not used for the computation of dividends received credit. 14/ Consists of interest on United Statee savings bonds and Treasury bonds owned in principal mount over #5,000 reported as item 8, page 1, Pome 1120 end 112QA« 15/ Consists of interest on obligations of States, Territories, m d political subdivisions thereof, the District of Columbia, and United Statee possessions) obligations of the United Statee issued on or before Septsaher 1, 1917, Treasury notes, Treasury bills, and Treasury certificates of indebted ness) United States savings bends and Treasury bonds owned in principal mount of #5,000 or less) and obligations of instru mentalities of the United States« 16/ Excludes nontaxable income other than interest on tax exempt obligations reported la Schedule P, page 5, P o m 1120 and in Schedule A, page 2, P o m 112QA« 17/ Includes taxes which are reported in "Cost of goods sold«" }8 / Includes taxas which are reported in "Cost of operation e«" 19/ The oost of incidental repairs, including labor m d aftpplies, which do net add ^ materially to the value of the property or appreciably prolong Its life« Por 1938, tide item was included in "Other deductions«” 20/ Excludes (1) Federal income and (dedezwd veins) arcsse-profits taxes, (2) taxes reported in "Cost of goods sold” and "Cost of operations,” and (3) income mid profits taxes paid to foreign countries and United States possessions, claimed as a credit against income tax« % * -11 FOOTNOTES - CONTINUED 21/ Limited to 5 percent of not income before deduction of contributions or gifts* 22/ Unlike 1938, excludes «Repairs* (sse note 19)* ¿2/ "Net income« or «Deficit* is the amount reported for (declared value) excessprofits tax confutation (item 28, page 1, Foma 1120 and 112Q1) and is equal to the difference between «Total income« and «Total deductions« (items 14 and 27, respectively, page 1, Forms 1120 and 11201)* 24/ Less than $500* 2§/ Excludes compensation of officers of life Insurance companies which file Form U20L. 26/ Includes special deductions of life insurance companies relating to reserve for dividends and reserve funds required by law* 27/ Includes special deductions of life insurance companies relating to reserve for dividends and reserve funds required by law, but excludes compensation of officers of life insurance companies which file Form 112QL* 28/ Compiled net loss or deficit* 29/ Compiled net loss after total tax payment* TREASURY DEPARTMENT Washington Press Service No« 29-87 FOR RELEASE, MORNING NEWSPAPERS,f Monday. February 9. 1942» 1 /2 3 / 4 2 Secretary of the Treasury Morgenthau today Bade public the fourth in the series of tabulations from "Statistics of Income for 1939, Part 2, compiled from Corporation Income and (Declared Value) Excess* profits Tax Returns and Personal Holding Company Returns,11 prepared under the direction of Commissioner of Internal Revenue Guy T. Helvering« For returns with balance sheets, the first of the two attached tables shows by major industrial groups, and the second table by total assets classes, the following datat Items of assets and liabilities as of the end of the taxable year, items of compiled receipts and compiled deductions, compiled net profit or net loss, net income or defioit, income tax, (declared value) excess-profits tax, total tax, compiled net profit less total tax and dividends paid. Adjustments of assets and liabilities are made in tabulating the data, when certain conditions appear on the balance sheet, as follows t (l) a negative amount reported in assets is transferred to its appro priate place under liabilities and "Total assets" and "Total liabilities" are increased by this negative amount, (2) a defioit in surplus shown under assets is transferred to liabilities and "Total assets" and "Total liabilities" are decreased by the amount of the deficit, and (3) reserves for depreciation, depletion, and bad debts when shown under liabilities are used to reduce the corresponding asset accounts and "Total assets" and "Total liabilities" are reduced by the amount of such reserves. "Net capital assets" consists of net tangible and intangible oapital assets. Tangible assets oomprise (l) depreciable and depletable assets (such as buildings* machinery and equipment* furniture and fix tures* delivery equipment* and natural resources) less reserves for depreciation and depletion* and (2) land. Intangible assets comprise patents* copyrights* franchises* leaseholds* formulas* goodwill* trade marks* etc.* less reserve for depredation or amortisation. For 1938* net intangible assets were included in "Other assets." "Surplus reserves" comprises reserves reported by corporations tinder the oaption "Surplus reserves." "8urplus and undivided profits" consists of positive amounts of "Paid-in or oapital surplus" and "Burned surplus and undivided profits." If either or both of these amounts are negative they are tabulated as "Deficit." In general, corporations are classified industrially on the one business activity which aoeounts for the largest percentage of "Total receipts." Therefore, the industrial groups contain corporations not engaged exclusively in the industries in which they are classified. "Total receipts" means the sum of the following items t Gross sales (where inventories are an income-determining factor) ; gross receipts (where inventories are not an income-determining factor); interest on loans* notes* mortgages* bonds* bank deposits* etc.; taxable interest on obligations of the United States; rents; royalties; oapital gain; gain from sale or exchange of property other than oapital assets; dividends; and other income required to be included in gross income. s The major indue trial groups for 1939 are comparable with those for 1938» The industrial classification for 1939 and 1938 is based on the Standard industrial Classification* issued by the Division of Statistical Standards* Bureau of the Budget* Executive Office of the President* Since the Standard Industrial Classifioation* as at present designed* is on an establishment basis* certain modifications are necessary to make it applicable to corporation income tax returns which are filed on an ownership basis* In analysing the data* compiled from returns classified under the major industrial group "Insurance carriers* agents* etc**" allowance should be made for the two special deductions from gross income per* mitted life insurance companies under section 203(a)* Internal Revenue Code as amended* relating to reserve funds required by law* and reserve for dividends* aggregate For 1939 returns with balance sheets* these deduotlons f 15*861* 101 on returns with net income* and $893*445*626 on returns with no net inoome* In the attached tables* the special deduo* tions for life insurance companies are included in *Other deductions*" T*blDec^be?a°1t559n ’ ’ , * * aJo*' 6">»ps and by returns with net Income and with no net incone ¿/« Number of «.turns, assets and liabilities ,» of <a,OBe f fiacal r w nearest thereto, compiled receipts aid compiled deductions, compiled net profit or loss, net income or deficit, incone tax, (declared value) excess-profits tax, total tax, and dividends paid _________________ (Money figures in thousands of dollars) Major industrial groups 2/ All industrial groups 1 2 S 4 S 6 7 8 9 10 11 12 13 14 IS 16 17 18 19 20 21 22 123 24 25 26 27 28 29 50 31 52 33 34 35 36 37 38 39 40 41 42 45 44 45 46 47 48 49 50 51 62 58 54 Number of returns with balance sheets 7/ Assets« Cash £/ Motes and accounts receivable (less reserve for bad debts) Inventories Investments, Government obligations 9/ Other investments Met capital assets 10/ Other assets ¿¿/ Total assets 12/ Liabilities« Accounts payable Bonds, notes, mortgages payable« Maturity less than 1 year Maturity 1 year or note Other liabilities Capital stock, preferred Capital stock, common Surplus reserves 13/ Surplus and undivided profits 14/ Less deficit 15/ Total liabilities 12/ Receipts, taxable« Gross sales 16/ Gross receipts from operations 17/ interest Rents and royalties 18/ Net capital gain 19/ Net gain, sale of property other than capital assets 20/ Dividends, domestic corporations 21/ Dividends, foreign corporations 227 Other receipts Receipts, partially and wholly tax exempt. Interest on Government obligations« Subject to excess-profits tax 25/ Wholly tax-exempt 24/ Total compiled receipts 25/ Deductions« Cost of goods sold 26/ Cost of operations 27/ Compensation of officers Rent paid on business property Repairs 28/ Bad debts Interest paid Taxes paid 29/ Contributions or gifts 50/ Depreciation Deletion Net capital loss 19/ Net loss, sale of property other than capital assets 20/ Other deductions 51/ Total coepiled deductions Compiled net profit or net loss (51 less 46) Net income or deficit (47 less 50) Income tax (Declared value) excess-profits tax Total tax Compiled net profit less total tax (47 less 51) Dividends paid« C ad i and a s s e t s o t h e r » o n c o r p o r a ti o n 's own s to c k C o r p o r a tio n 's own s to c k For footnotes, seo pages Total mining and quarrying Mining and quarrying Anthracite mining Metal mining Bituminous coal, lignite, peat, etc. No net Net incese No net Net income No net Net income No net Net incese No net Net income income incese income 187,920 224,839 3,557 5,930 319 776 23 89 487 1,106 1,722 1 28,106,427 5,947,125 321,100 86,921 180,279 7,857 1,919 9,420 37,360 28,850 61,849 14,479,093 17,286,305 49,690,600 61,754,509 5,956,469 206,670,943 7,962,779 3,238,997 10,116,242 51,464,291 58,491,788 2,909,140 100,130,565 314,378 255,448 82,902 977,405 2,079,929 105,765 4,114,928 235,246 85,179 27,523 284,150 2,570,266 126,714 3,215,799 74,129 152,590 49,063 669,264 958,852 65,126 2,149,303 32,695 21,486 1,083 18,496 451,065 47,896 580,579 2,558 711 601 1,231 7,000 242 14,261 22,496 10,151 6,903 57,103 246,931 20,299 375,305 38,727 18,984 15,178 99,760 363,804 10,838 604,652 78,606 20,158 5^499 89'605 680'061 19,058 92l'817 145,704 23¡036 IS'456 179'507 522¡163 16^917 961¡652 7 8 9 10 2 3 4 5 6 9,189,247 5,316,524 184,454 357,312 84,134 90,574 1,221 26,039 32,279 76,044 46,461 4,495,702 26,689,518 co,oa9,518 55,949,3 ‘ 12,678,2 53,969,463 5,940,922 40,207,646 2,449,023 206,670,943 3,531,327 22,698,658 42,067,177 4,576,975 19,512,441 1,906,309 11,094,338 10,573,867 100,130,363 73,025 501,958 134,455 99,715 1,767,577 152,255 1,571,458 149,908 4,114,928 189,593 698,423 159,178 150,866 1,556,291 72,819 865,160 631,845 3,215,799 16,438 100,861 76,012 25,305 1,000,204 56,827 823,739 34,215 2,149,303 12,095 52,226 34,141 9,327 255,254 7,869 220,009 100,916 580,579 525 726 1,261 3 2,934 328 7,548 283 14,261 23,110 163,729 31,278 1,614 108,233 10,056 58,929 51,684 375,305 9,432 62,719 16,247 26,999 254,658 11,654 208,630 17,946 604,652 35,624 188'519 41j279 98^510 350¡456 19,143 267,499 155¡257 92l'ei7 38,774 106¡230 31¡859 22¡874 361¡790 45*060 391* 789 81*206 961*632 83,120,659 15,145,266 1,347,275 1,124,228 166,086 16,919,304 6,415,459 1,058,020 1,085,025 39,775 1,454,650 157,573 5,647 17,007 4,773 962,972 124,651 5,121 23,674 2,971 628,926 12,376 2,734 3,956 563 143,876 7,235 119 1,448 31 15,339 2,510 21 129 5 165,575 7,545 691 4,842 53 549,184 24,249 876 7,233 400 355,802 42'598 1*165 10'l53 '581 275,717 99^652 1*640 4*214 3,659 75,205 1,740,076 242,180 750,695 52,733 120,577 4,799 227,166 2,873 36,451 1,437 20,483 2,723 4,853 12 15,695 207 26,181 1,350 8,526 111 114 28 38 37 640 1,365 50 2,376 208 1,472 52 4,629 431 2,141 10 4,145 2,327 7¡650 52 5,642 26 26 27 28 258,859 197,194 104,167,699 56,486 240,097 26,197,241 1,367 840 1,703,082 429 350 1,139,451 608 573 685,800 9 19 154,526 13 2 18,136 199 15 181,973 525 149 388,777 193 S3 416,980 509 29 30 598,870 SI 62,611,556 6,872,801 35/1,902,741 1,066,615 850,425 417,105 1,553,026 2,867,131 29,023 2.459.456 290,739 20,846 13,395,554 3,948,046 52/717,777 493,556 229,072 268,691 1,172,482 1,048,541 1,248 918,450 136,250 39,973 865,659 92,404 28,019 5,854 51,352 5,135 20,788 61,426 412 88,218 158,170 203 722,578 84,231 17,883 10,267 22,546 4,871 36,275 69,579 22 71,597 69,945 559 575,117 7,562 4,631 836 10,927 612 7,160 25,367 178 27,551 66,732 30 107,247 5,291 1,058 218 1,313 775 3,049 23,211 1 5,664 7,294 37 12,955 1,479 500 64 139 56 75 621 (52) 606 142,527 6,596 754 533 5,554 1,210 8j071 11,117 (32) 5,937 6,486 6 266,582 17,590 S,096 1,234 10,252 503 3,424 15,467 50 16,053 8,498 33 298,252 30*213 4'296 3,364 8,525 l'309 8*204 19j075 9 19.738 7,051 '205 104,814 55¡787 10j098 2*325 2¡826 *989 7,838 15^492 *107 33,050 55^252 ' 86 52 752 4,552 116,618 157,114 1,453,012 1,251,999 250,070 26/112,548 249,230 26/112,898 36,672 380 — 37,051 215,019 56/112,548 48 24,327 551,078 134,722 134,150 18,731 182 18,913 115,810 655 9,204 165,017 36/10.691 16/10,711 237 11,443 200,292 36/18,519 5SA8.334 50 25,832 370,461 18,316 18,167 2,790 39 2,829 15,487 1,605 38'220 440,066 5£/23'.Q86 56/23.119 279 43.148 330^069 68j802 68*754 10,702 69 10,771 58'031 44 45 46 47 48 49 50 36/10,691 1 1,000 17,626 509 507 77 5 82 427 120,087 853 - 387 - 47,466 '840 55 54 ^463 55,043 110,745 54/14,285,378 34/5,386,623 55/95,261,863 21/27,866,968 8,905,836 36/1,669,747 8,708,642 36/1,909,844 1,202,070 IS, 387 • 1.217.457 % — 7,688,380 36/1,669,747 5,475,733 84,200 162,962 2,076 198,460 1,023 17,895 43 16 - • • ISO - _ — 52/18,319 462 12,178 - 167 36/23,086 807 ____ -1 47 U 12 15 14 15 16 17 18 19 20 21 22 25 24 53 54 55 56 37 58 59 40 41 42 45 51 52 Table 1« - Corporation returns with balance sheets, 1939, by major Industrial groups and by returns with net income and with no net income ¿/t Number of returns, assets and liabilities as of December 51, 1959, or close of fiscal year nearest thereto, compiled receipts and compiled deductions, compiled net profit or loss, net incoeie or deficit, income tax, (declared value) excess-profits tax, total tax, and dividends paid - Continued (Money figures in thousands of dollars) Major industrial groups 2/ - Continued Mining and quarrying - Continued Manufacturing Nonmetallic mining and Mining and quarrying Total manufacturing Food and kindred Beverages Tobacco manufactures quarrying not allocable products Net income 1 2 5 4 5 6 7 8 9 10 11 12 15 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 50 51 32 35 54 55 56 57 38 59 40 41 42 45 44 45 46 47 48 50 51 52 55 54 Number of returns with balance sheets 7/ Assets] Cash 8/ Notes and accounts receivable (less reserve for bad debts) Inventories Investments, Government obligations 9/ Other investments Net capital assets 10/ Other assets 11/ Total assets 12/ Liabilities] Accounts payable Bonds, notes, mortgages payable) Maturity less than 1 year Maturity 1 year or more Other liabilities Capital stock, preferred Capital stock, common Surplus reserves 15/ Surplus and undivided profits 14/ Less deficit 15/ Total liabilities 12/ Receipts, taxable) Oross sales 16/ Qross receipts from operations 17/ Interest Rents and royalties 18/ Net capital gain 19/^ Net gain, sale of property other than capital assets 20/ Dividends, domestic corporations 21/ Dividends, foreign corporations 22/ Other receipts Receipts, partially and wholly tax exempt] Interest on Government obligations] Subject to excess-profits tax 25/ Wholly tax-exempt 24/ Total compiled receipts 25/ Deductions) Cost of goods sold 26/ Cost of operations 27/ Compensation of officers Rent paid on business property Repairs 28/ Bad debts Interest paid Taxes paid 29/ Contributions or gifts 50/ Depreciation Depletion Net capital loss 19/ Net loss, sale of property other than capital assets 20/ Other deductions 51/ Total compiled deductions Compiled net profit or net loss (31 less 46) Net income or deficit 1/ (47 less 30) Income tax (Declared value) excess-profits tax Total tax Compiled net profit less total tax (47 less 51) Dividends paid* Cash and assets other than corporation's own stock Corporation's own stock F o r footnotes, see pages 19 and 20« No net income Net income No net income Net income No net Net income income 58,914 4,869 Net income No net income 1,610 4,103 Met income No net income 1,184 110 No net income 784 805 22 267 41,946 59,312 3,241 582 705 4,136,561 435,458 437,977 28,110 85,946 8,178 59,484 1,879 32,582 40,059 5,584 24,226 225,271 10,550 377,364 11,689 5,145 535 7,471 86,143 4,612 118,634 877 68 20 3,417 2,840 112 7,716 1,428 6,344,534 879 9,307,195 96 1,103,607 8,059 7,579,508 42,230 18,366,445 2,239 926,916 55,637 47,764,365 1,082,691 1,685,500 53,167 770,752 4,693,718 254,976 8,974,262 576,458 1,046,115 78,953 775,501 1,941,081 101,658 4,957,722 86,071 135,167 4,288 42,917 309,578 16,959 623,089 123,127 232,542 14,636 67,658 465,298 42,486 1,031,693 35,136 61,978 886 10,366 124,667 11,125 252,536 162,458 560,608 27,115 93,644 170,215 6,229 1,979,752 7,993 8,433 398 2,511 5,360 913 27,287 19,686 16,855 674 7,756 30,680 8,995 24,534 145,903 20,548 154,419 14.957 577,564 7,243 23,094 6,899 11,321 52,964 2,405 22,269 24,417 118,634 101 742 59 186,756 18,513 548 1,457 164 164 i 2 5 4 5 6 7 8 9 5,826,787 1,003,362 356,670 82,542 96,706 32,453 71,584 2,152 10 938,513 1,391,284 390,538 955,701 3,446,410 275,669 2,010,093 1,437,108 8,974,262 205,545 375,696 159,095 652,595 1,684,629 219,420 1,373,860 49,787 4,957,722 61,749 111,108 26,050 59,678 293,115 10,234 106,614 107,997 623,089 37,483 124,027 57,518 49,131 266,555 16,690 390,804 7,219 1,051,693 39,539 48,745 12,936 18,946 85,540 2,927 48,177 56,928 252,356 14,438 98,905 44,599 127,555 421,821 23,622 278,567 1,116 1,079,752 2,557 1,516 309 3,576 10,543 101 10,567 3,832 27,287 11 2,109 20 5,312 1,301 7,716 903 1,227,500 3,992 3,863,721 1,618 1,658,757 562 4,695,184 52,100 16,585,180 55 1,888,097 7,740 14,626,877 19,811 507,740 55,637 47,764,563 52,587 9,520 75 481 41 708 475 27 18 2 5,494 47,641,551 1,197 805,305 8 88,741 84 164,874 1 19,014 7,718,365 308,057 13,720 29,126 6,130 8,853,411 52,576 8,250 13,907 891 1,015,648 15,338 709 1,734 514 1,414,788 7,506 1,465 5,156 125 259,433 4,741 304 872 52 1,276,848 2,327 2,106 2,354 698 27,456 89 16 52 14 103 922 2 1,806 17 59 (52) 727 188 1 29 10,475 341,855 119,085 240,884 3,160 17,524 551 48,415 1,030 27,251 18,648 36,957 197 528 120 6,107 326 3,344 918 8,026 159 67 2 1,515 101 4,586 458 1,804 5 97 132 115 65 210,048 4 9 45,516 13,498 (52) 11,559 6,832 49,456,641 736 734 8,146,499 1,208 877 9,015,006 85 82 1,040,662 199 250 1,440,061 24 1 247,168 369 225 1,291,674 6 9 27,875 29 4 1,450 105,888 9,883 7,655 1,357 7,197 972 2,276 6,400 78 10,924 7,485 54 25,079 6,142 2,277 555 1,622 399 1,319 1,265 5 3,495 377 51 4,468 34,655,557 1,055 421,881 142 752,908 11 219,215 189 648,099 58 117,186 259,494 55 367 1,345,064 (32) 13,706 436 1,146,772 193 122,848 9 3,022 6,093,012 180,337 198,756 78,661 86,854 47,283 78,818 226,430 265 273,713 57,471 1,543 7,165,119 19,262 74,251 27,992 70,314 14,108 27,180 146,156 1,469 116,111 194 355 831,945 9,844 17,330 6,045 7,764 5,888 7,975 23,096 45 19,696 59 167 733,942 2,054 23,955 4,474 10,401 5,395 10,155 226,821 607 29,309 61 82 149,097 2,179 5,361 1,475 1,456 1,747 3,958 39,971 4 7,769 35 40 957,522 1,787 5,547 1,587 1,815 419 5,260 92,239 160 7,603 21,753 77 1,087 181 84 114 166 849 1 317 8 2 52 55 54 55 56 57 58 59 40 41 42 45 374 22,126 182,648 27,400 27,335 4,348 84 4,432 22,969 586 7,173 48,346 ¿6/4,830 36/4.839 20,316 1,158,295 8,501,749 36/355.250 36/555.984 1,974 932,250 8,596,714 418,292 417,416 67,161 626 67,787 350,50S 1,503 140,485 1,069,840 36/29,178 36/29.259 ¿¿AS, 799 87 109,044 1,162,879 128,795 128,572 21,059 7 21,067 107,728 76 4,337 29,024 56/1,149 36/1.157 56/29,178 418 241,696 1,289,369 150,692 150*462 25,515 *182 25,698 124,994 495 49,399 262,967 36A5.799 56/15.800 ¿6/4,850 185 1,130 320 316 24 1 25 296 6 15,624 981 5,811,233 7,952 45,530,387 36/1,120 3,926,254 36/1.120 3,914,695 — 619,682 9,608 629,290 56/1,120 5,296,964 ¿¿A,149 18,093 - 293 - 250 - 236,147 2,891 38 72,439 5^961 262 93,384 13 — • - - - - 304 304 59 38 12 3 15 79 - 35 95 1 - 8,479 14 3 - 32 3 2 2,139,320 30,210 _ 36/355,250 30,807 424 1^436 _ _ _ 12 15 14 15 16 17 18 19 20 21 22 25 24 25 26 27 28 50 51 44 45 46 47 48 49 SO 51 52 55 54 Table 1. - Corporation returns with balance sheets, 1959, by major industrial groups and by returns with net incase and with no net incone ¿/i Number of retains, assets and liabilities as of Decenber 51, 1959, or close of fiscal year nearest thereto, compiled receipts and compiled deductions, compiled net profit or loss, net income or deficit, income tax, (declared nine) excess-profits tax, total tax, and dividends paid - Continued (Honey figures in thousands of dollars) Major industrial groups 2/ - Continued Manufacturing - Continued Textile-mill products Net Income 1 2 5 4 5 6 7 8 9 10 11 12 15 14 15 16 17 IS 19 20 21 22 ’25 24 25 26 27 28 29 50 51 52 55 54 55 56 57 58 59 40 41 42 45 44 45 46 47 48 49 50 51 52 55 54 Number of returns with balance sheets 7/ Assetsi Cash 8/ Notes and accounts receivable (less reserve for bad debts) Inventories Investments, Government obligations 9/ Other investments Net capital assets 10/ Other assets 11/ Total assets 12/ Liabilities» Accounts payable Bonds, notes, mortgages payable» Maturity less than 1 year Maturity 1 year or more Other liabilities Capital stock, preferred Capital stock, common Surplus reserves 15/ Surplus and undivided profits 14/ Less deficit 15/ Total liabilities 12/ Receipts, taxable» Gross sales 16/ Gross receipts from operations 17/ Interest Rents and royalties 18/ Net capital gain 19/~^ Net gain, sale of property other than capital assets 20/ Dividends, domestic corporations 21/ Dividends, foreign corporations 227 Other receipts Receipts, partially and wholly tax-exempt» Interest on Government obligations» Subject to excess-profits tax 25/ Wholly tax-exempt 24/ Total oonpiled receipts 25/ Cost .of goods sold 26/ Cost of operations 27/ Compensation of officers Rent paid on business property Repairs 28/ Bad debts Interest paid Taxes paid 29/ Contributions or gifts 50/ Depreciation Depletion Net capital loss 19/ Net loss, sale of property other than capital assets 20/ Other deductions 51/ Total compiled deductions Compiled net profit or net loss (51 less 46) Net income or deficit 1/ (47 less 30) Income tax (Declared value) excess-profits tax Total tax Compiled net profit less total tax (47 less 51) Dividends paid» Cash and assets other than corporation's own stock Corporation’s own stock For footnotes, see pages 19 and 20« 2,550 Apparel and products made from fabrics No net Net income income 2,069 3,647 Leather and products No net Net income incesse 4,277 1,072 Rubber products No net income Net income 961 322 No net income Lumber and timber basic products Met Income 199 1,248 Furniture and finished lumber products No net Net income Income 1,585 2,095 No net incase 2,141 192,767 25,758 71,091 16,800 62,445 6,395 65,477 8,599 59,269 15,992 52,985 8,422 344,865 734,611 59,792 170,422 1,038,701 47,962 2,569,120 68,487 151,195 4,723 55,013 344,145 14,158 661,459 202,139 252,834 9,656 47,524 96,676 22,059 681,979 60,941 64,654 1,122 11,131 38,116 6,849 199,612 136,610 221,656 6,951 48,574 112,468 15,921 604,425 27,717 45,990 159 14,818 27,600 7,562 150,240 186,964 209,616 4,001 217,284 258,087 69,432 1,010,861 9,005 11,826 849 8,592 21,588 1,551 61,811 95,112 159,875 8,966 91,408 587,232 14,592 776,2S2 57,552 85^465 2,148 74,005 555,248 16,505 584,895 159,767 194,504 14*293 71,711 243*964 16,991 754,214 42,955 62,693 1^666 16*667 94*015 8,412 254,810 161,240 77,760 115,415 53,673 47,478 22,626 106,724 8,287 40,655 44,197 60,080 44,509 146,083 116,928 73,171 303,065 910,666 78,017 850,000 50,050 2,569,120 52,075 95,032 21,784 102,881 277,418 14,004 160,627 158,122 661,459 57,377 22,817 28,406 71,849 218,019 12,935 165,489 10,527 681,979 22,278 16,253 9,277 23,222 92,536 1,310 25,232 44,170 199,612 41,855 17,732 16,725 68,155 210,625 22,521 187,596 8,259 604,425 22,045 29,472 4,581 25,445 48,310 3,450 17,299 42,986 150,240 10,199 200,435 50,917 228,119 219,912 40,199 176,540 4,184 1,010,861 2,196 5,233 1,704 15,405 15,940 709 19,489 5,151 61,811 56,617 41,535 24,691 31,124 296,211 11,875 526*947 52,401 776,252 55,172 107,009 19,081 56,052 279,046 28'985 156,714 139,364 S84'895 31,885 44,551 25^586 59,012 292,545 22,855 235*477 15,557 754,214 19,431 50*535 111245 25,857 110,467 4,780 45I050 52*642 254,810 3,046,651 64,156 5,187 9,788 819 682,059 22,461 1,009 2,807 552 1,693,174 15,644 790 3,475 195 555,486 30,490 165 623 45 976,579 5,557 1,145 1,110 92 254,956 2,525 114 457 10 981,490 1,553 1,447 5,565 82 70,259 527 45 64 691 585,652 8'162 1,268 5^605 1,424 285,268 7*685 769 1,748 528 950,750 4,942 1,552 1^522 491 241,658 2^218 *558 726 100 1,109 4,105 847 15,911 643 557 106 4,675 48 1,130 677 7,150 106 58 4 1,825 129 1,143 6 5,170 47 60 (52) 1,405 50 4,528 5,265 5,586 5 50 5 1,882 885 2,162 8 6,242 562 500 2 4,514 131 1,782 *555 6,252 196 118 4 1,440 643 497 3,147,694 70 82 714,999 193 116 1,722,571 22 14 588,858 121 71 990,904 2 2 259,377 71 11 1,001,007 (52) 37 75,560 176 74 609,627 27 30 501,255 465 194 968,194 19 30 246,848 2,451,440 42,990 '52,652 8,641 51,081 5,014 13,362 60,866 667 70,555 7 215 597,264 15,794 14,124 3,892 5,787 3,628 7,685 15,898 4 20,125 4 108 1,357,696 11,620 55,136 15,951 2,606 4,711 4,381 21,552 468 7,441 14 89 458,256 24,732 23,990 9,555 801 2,597 2,444 7,908 34 3,157 10 59 799,767 1,921 19,547 4,159 6,675 2,414 2,654 15,297 276 8,807 57 62 203,428 1,811 6,195 2,765 1,175 857 1,518 3,804 5 2,766 8 29 675,242 165 7,375 5,641 15,569 3,209 8,552 44,505 162 25,556 53,865 262 1,066 596 665 2,477 350 3,555 1 1,978 9 15 434,071 250,648 4'557 6,387 1,091 2,271 1,575 5,763 8,258 9 11,074 10,951 115 692,759 815 29,426 6*190 8,471 5,697 4,027 19,185 *262 15,715 1,073 *106 189,855 1^610 10^516 3*020 ll697 1,645 2^268 5,638 14 5,504 1,519 79 1,877 239,662 2,958,807 188,887 188,589 51,594 1,254 52,828 156,059 5,561 62,282 749,956 36/34.957 36/55.039 324 71,145 604,793 36/15.956 36/15.969 56/19,978 125 128,552 910*377 57*817 57,625 9,284 *192 9,477 48*541 353 56,580 260^076 36/13*229 56/13,259 2§A,S89 509 60,544 571,546 58,081 38,007 5,948 128 6,077 32,004 887 57,649 521,211 36/19* 978 56/20r008 36/9,344 80 155,164 956,838 64,170 64,159 10,355 '112 10,468 55^702 1,732 8,585 74,950 56/l'589 36/1.626 56/15,956 88 82,693 944,375 46,529 46,457 7,598 150 7,727 38,801 388 25,975 248,721 56/9.544 56/9.346 56/34,957 139 189,351 1,671,094 51,477 51,361 8,260 505 8,566 42,911 ¿6/13,2*9 69,884 648 2,192 1 18,993 1,255 518 9 22,529 1,505 226 - 30,626 99 504 316 22,558 519 3.005 31 27,003 ~175 596 • — - — — - « • • 20 *,70 7 15,697 1,657 4,594 2,465 4,222 14,642 127 16,030 14,591 110 _ Table 1. - Corporation returns with- balance sheets, 1939, by major industrial groups and by returns with net income and with no net income 1/: Number of returns, assets and liabilities as of December 31, 1939, or close of fiscal year nearest thereto, compiled receipts and coqriled deductions, compiled net profit or loss, net income or deficit, income tax, (declared value) excess-profits tax, total tax, and dividends paid - Continued (Honey figures in thousands of dollars) Major industrial groups Z j - Continued Paper and allied producte Net income 1 2 3 4 5 6 7 8 9 10 U 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 Number of returns with balance sheets 7/ Assets: Cash 8/ Notes and accounts receivable (less reserve for bad debts) Inventories Investments, Government obligations 9/ Other investments Net capital assets ¿0/ Other assets 11/ Total assets 12/ Liabilities: Accounts payable Bonds, notes, mortgages payable: Maturity less than 1 year Maturity 1 year or more Other.liabllities Capital stock, preferred Capital stock, common Surplus reserves 13/ Surplus and undivided profits 14/ Less deficit 15/ Total liabilities 12/ Receipts, taxable: Gross sales 16/ Gross receipts from operations 17/ Interest Rents and royalties 18/ Net capital gain VZ! Net gain, sale of property other than capital assets 20/ Dividends, domestic corporations 21/ Dividends, foreign corporations 22/ Other receipts Receipts, partially and wholly tax-exempt: Interest on Government obligations: Subject to excess-profits tax 28/ Wholly tax-exempt 24/ Total compiled receipts 25/ Cost of goods sold 26/ Cost of operations 27/ Compensation of officers Rent paid on business property Repairs 28/ Bad debts Interest paid Taxes paid 29/ Contributions or gifts 30/ Depreciation Depletion Net capital loss 19/ Net loss, sale of property other than capital assets 20/ Other deductions 31/ Total oompiled deductions Compiled net profit or net loss (31 less 46) Net income or deficit ¿/ (47 less 30) Income tax (Declared value) excess-profits tax Total tax Compiled net profit less total tax (47 less 51) Dividends paids Cash and assets other than corporation1s own stock Corporation*s own stock For footnotes, see pages 19 and 20« No net income Printing and publishing industries Net income Manufacturing - Continued Chemicals and allied Petroleum and coal products products Net income No net income 5,709 3,262 No net Net income income 3,030 342 149 701 4,630 119,552 7,988 137,241 17,485 476,234 15,380 192,086 259,505 34,654 579,002 886,691 54,884 1,906,173 53,956 35,933 335 111,295 154,131 17,462 561,095 301,088 143,804 79,969 413,086 791,533 75,526 1,942,046 85,505 57,309 5,273 40,325 226,915 51,779 444,589 566,628 744,115 126,116 885,350 1,739,769 82,526 4,620,759 No net income Stone, clay, and glass products Net income 291 1,741 368,734 103,431 170,956 50,294 49,067 3,132 36,818 142,561 17,159 314,411 543,410 664,591 48,210 1,492,358 2,993,026 79,062 6,189,390 131,703 197,219 1,367 100,825 1,091,751 23,826 1,650,121 166,911 235,311 60,434 205,564 748,742 28,585 1,616,502 Iron, steel, and products No net Net income income 1,586 3,866 No net income 2,502 1 15,255 415,552 50,616 2 31,454 45,933 1,249 19,460 225,850 7,997 547,198 680,200 1,160,314 68,799 689,516 2,747,121 76,857 5,838,358 117,167 352,596 5,831 59,874 773,394 14,691 1,374,168 3 4 5 6 7 8 9 24,089 85,416 27,049 163,186 74,584 346,703 42,922 346,277 140,315 93,023 769,482 159,492 41,722 279,461 44,550 557,091 567,515 58,255 481,855 9,691 1,906,173 25,978 73,950 72,797 36,125 100,186 10,736 87,586 73,511 561,093 52,709 159,531 116,028 195,140 570,938 85,802 688,145 57,231 1,942,046 57,059 62,285 50,443 57,257 178,125 6,993 106,574 128,532 444,589 119,715 260,162 121,522 562,480 1,515,806 259,478 1,488,168 51,295 4,620,739 21,362 48,620 7,684 34,058 142,155 6,507 75,151 64,048 514,411 48,250 709,438 101,029 162,325 2,957,550 127,863 1,806,804 70,147 6,189,390 145,494 321,381 50,731 126,360 530,606 73,448 336,795 75,009 1,650,121 23,008 110,610 51,548 140,397 652,786 52,081 519,265 26,215 1,616,502 127,202 16,718 64,700 785,248 16, 5.32 145,673 53,439 560,971 151,665 1,972,941 6,991 191,209 79,521 Í 1,325,476 66,457 39,843 347,198 5,838,358 315,384 126,795 29'439 84,487 424,267 21,104 350,549 157,348 1,374,168 1,508,747 3,875 7,092 3,146 1,169 206,528 1,756 1,073 1,787 94 1,606,462 106,815 5,747 10,165 1,625 396,275 65,556 585 2,575 559 3,883,552 26,109 6,598 15,128 2,373 247,075 2,498 711 822 77 5,644,085 101,652 10,155 29,620 1,969 1,149,350 99,254 2,856 8,142 448 1,281,327 8,372 1,777 4,194 593 172,442 5,509 254 830 153 4,842,823 14,737 10,792 10*775 1,380 1,024,362 6,635 900 1,813 152 394 5,825 1,041 9,258 92 106 (32) 1,441 655 18,215 1,059 15,975 185 416 1 5,266 1,130 69,236 12,972 15,555 257 273 21 1,495 857 88,194 4,808 15,578 313 10,595 2 7,844 186 7,120 2,334 7,522 42 196 (32) 1,467 1,378 18,819 8,349 19,374 160 544 20 2,617 25 26 27 28 689 241 1,541,477 5 4 212,685 1,241 937 1,766,871 109 55 469,158 1,599 2,208 4,054,462 48 75 253,352 506 745 3,896,139 34 15 1,278^355 606 416 1,314,447 24 15 180,934 1,225 743 4,930,392 110 39 1,067,153 29 30 31 1,082,694 1,324 32,199 7,370 32,808 4,596 15,572 34,363 541 55,944 1,988 157 166,850 1,519 5,254 1,770 3,888 7,195 6,474 4,873 9 8,039 541 54 1,033,775 54,946 69,680 21,289 6,942 9,662 10,224 40,699 1,106 35,032 14 366 281,213 37,901 28,904 9,967 1,816 3,929 4,451 10,477 62 10,632 47 170 2,423,655 5,305 63,756 12,842 50,498 9,902 17,070 88,869 1,096 113,681 5,099 256 180,617 1,344 10,025 2,455 1,816 2,399 2,999 6,151 14 7,291 563 94 2,541,903 63,160 11,268 53,341 66,304 11,412 26,649 143,858 621 187,875 91,462 49 832,317 40,809 2,623 18,439 24,079 2,011 9,817 30,641 (32) 66,613 42,855 25 832,046 5,047 28,367 5*069 29,271 3,994 6,357 30,149 486 50,907 1,642 157 125,755 4,268 7,001 1,204 3,675 1,211 5^625 5,282 8 10,198 525 78 3,593,535 8,000. 80,643 22,332 145,182 10,514 63,897 109,586 1,267 149,508 2,827 360 864,695 4,790 15,464 5,292 15,998 2,180 6'027 28,458 11 53,758 37 95 32 S3 34 35 36 37 58 39 40 41 42 43 1,157 150,774 1,421,267 120,210 119,970 19,482 315 19,797 100,413 334 24,458 231,219 £6/18.534 36/18.538 • • — 56/18,534 802 324,672 1,609,208 157,662 156,726 23,646 225 23,871 133,792 1,175 105,485 496,206 36/27.068 36/27.102 w. 548 53,622 269,938 36/16.586 36/16.661 556 163,721 1,157,769 '156,679 156'263 25,578 '350 25,928 150'7S1 682 28,314 191,825 36/10*892 36/10.906 1,236 401*673 4,590,358 340*033 339,290 55,091 1*415 56^506 283'527 2,624 83,050 1,080,480 36/43.327 36/43.366 44 45 46 47 48 49 50 £6/16,586 1,991 525,065 3,704,957 191,183 190,438 20,007 192 20,198 170,985 1,606 223,198 1,295,036 36/16.683 36/16.698 36/27,068 1,459 695,490 5,486,976 547,486 545,278 83,651 1¡373 85,024 462,461 36/43,327 52 54,571 427 117 92,133 659 1,272 1 964 22 162,030 220 153,843 2^623 712 (32) 527,106 8,217 I _ 36/16,683 14,302 86,990 145 36/10,892 641 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 51 53 54 Table 1. - Corporation returns with balance sheets, 1939, by major industrial groups and by returns with net income and with no net Income 1/: Number of returns, assets and liabilities as of December 31, 1939, or close of fiscal year nearest thereto, compiled receipts and compiled deductions, compiled net profit or loss, net income or deficit, income tax, (declared value) excess-profits tax, total tax, and dividends paid - Continued ________________________________________________________________ (Money figures in thousands of dollars)___________ Major industrial groups 2/ - Continued Manufacturing - Continued Nonferrous metals and Electrical machinery Machinery, except Automobiles and equip Other manufacturing Transportation and equipment their products transportation equip ment, except equipment,except electrical ment and electrical automobiles Net income 1 2 3 4 S 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 52 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 Number of returns with balance sheets 7/ Assetss Cash 8/ Notes and accounts receivable (less reserve for bad debts) Inventories Investments, Government obligations £/ Other, investments Met capital assets 10/ Other assets 11/ Total assets 12/ Liabilities! Accounts payable Bonds, notes, mortgages psysblei Maturity less than 1 year Maturity 1 year or more Other liabilities Capital stock, preferred Capital stock, comaon Surplus reserves 13/ v Surplus and undivided profits 14/ Less deficit 15/ Total liabilities 12/ Receipts, taxable! Dross sales 16/ Dross receipts from operations 17/ Interest Rents and royalties 18/ Net capital gain 19/^ Net gain, sals of property other than capital assets 20/ Dividends, domestic corporations 21/ Dividends, foreign corporations 227 Other receipts Receipts, partially and wholly tax-exempti Interest on Dovenuaent obligations! Subject to excess-profits tax 23/ Wholly tax-exempt 24/ Total compiled receipts 25/ Deductions! Cost of goods sold 26/ Cost of operations 27/ Compensation of officers Kent paid on business property Repairs 28/ Bad debts Interest paid Taxes paid 29/ Contributions or gifts 50/ Depreciation Depletion Net capital loss 19/ Met loss, sale of property other than capital assets 20/ Other deductions 31/ Total compiled deductions Compiled net profit or net less (31 less 46) Net Income or deficit J/ (47 less 30) Income tax (Declared value) excess-profits tax Total tax Compiled net profit less total tax (47 less 51) Dividends paid! Cash and assets other than corporation's own stock Corporation's own stock For footnotes, see pages 19 and 20. Net incase No net income Net income No net income No net income Net income Net income No net income Net income No net income No net income 1,344 1,092 856 724 2,616 442 376 324 405 2,332 2,684 1 93,115 3,990 157,450 6,165 378,427 27,597 478,585 17,633 165,442 52,916 91,420 12,835 2 232,822 332,282 26,941 337,710 487,603 26,279 1,536,752 13,128 33,769 240 5,243 38,474 3,675 98,519 251,739 573,839 105,262 568,944 414,186 23,569 1,672,970 19,548 a ,8 7 4 539 4,701 47,778 5,511 116,114 700,784 880,246 128,076 469,069 1,115,168 a , 023 3,732,792 91,358 154,736 3,817 56,297 215,535 21,845 5 a ,1 8 5 411,115 486,594 175,288 470,567 1,009,025 43,471 3,074,446 15,813 35,090 11,605 19,471 90,537 5,956 196,105 127,562 204,334 16,142 87,312 349,069 28,712 978,572 49, a s 54,742 1,737 64,761 198,887 7,700 410,362 166,034 197,368 26,997 ia ,8 8 6 293,986 a , 640 9 4 9 ,3 a 39,540 38,507 1,587 a , 199 155, a s 10,645 290,126 159,319 11,630 132,582 19,073 222,014 53,125 315,273 &,819 97,687 23,733 58,590 28,186 59,616 117,782 48,100 2 7 3 ,2 a 374,754 84,175 457,903 18,147 1,536,752 10,544 52,227 4,275 7,881 42,993 2,416 10,933 24,379 98, a9 50,708 58,a 7 89,030 72,583 683,283 104,082 508,097 5,915 1,672,970 10,862 14,062 4,982 13,006 46,824 2,316 34,590 29,599 116,114 64,972 179,072 163,544 401,078 1,589,667 245,530 1,117,125 49,809 5,732,792 30,480 59,471 20,926 74,386 239,850 19,560 121,553 87,947 531,183 14,192 49,464 112,246 223,987 699,453 193,821 1,475,806 9,797 5,074,446 6,012 20,626 8,653 14,645 97,816 11,128 59,463 44,056 196,105 15,066 62,211 158,283 33,026 239,691 45,468 559,622 10,481 978,572 14,745 54,189 23,020 95,303 ia , 4 0 8 57,585 95,282 54,904 410,362 25,252 43,787 40,090 93, a 4 865,076 56,864 280,037 11,879 949,531 25,867 6 3 ,a o 11,284 42,258 119,306 7,772 52,880 58,437 290,126 1,441,132 57,315 2,530 1,960 207 99,981 2,455 63 215 52 1 ,6 8 4 ,8 a 5,541 5,324 4 ,s a . 534 129,397 1,366 111 380 20 3,010,550 63,739 12,648 27,648 1,801 342,575 7,087 1,812 1,338 196 3,322,237 2,469 4,904 10, 4a 719 225,272 1,850 295 381 SO 468,501 233,406 1,171 2,607 507 128,424 14,919 942 350 1,985 895,589 17,643 2,299 4,043 1,257 198,100 12,623 532 1,430 55 129 8,744 5,078 8,956 9 44 (32) 540 124 12,386 3 ,6 a 7,038 46 41 41 1,034 796 10,500 10,173 26,060 127 379 169 2,427 232 44,349 35,259 12,536 75 462 38 763 617 3,815 363 3,075 45 2,562 7 598 197 3,359 5,741 9,458 50 399 9 1,673 25 26 27 28 298 175 1,526,524 2 1 103,542 847 1,134 1,723,762 11 2 132,449 1,959 1,766 3,167, a 9 81 70 356,259 337 541 3,434,013 1 115 229,303 411 190 714,663 24 31 149,888 235 157 939,959 33 46 214,952 29 30 51 1,109,440 6,423 25,084 5,442 19,186 2,682 8,271 29,695 580 29,993 2,700 80 80,064 1,728 5,327 1,340 684 366 759 2,237 4 2,549 5 29 1,151,997 2,073 23,344 7,088 20,744 2,566 4,484 45,294 639 43,678 90 74 101,491 970 3,610 1,532 1,758 786 6a 3,258 1 3,428 2 34 1,975,593 9,130 71,074 12,674 52,327 10,574 11,471 78,050 1,274 84,527 136 308 255,384 4,531 14,185 2,313 4,016 2,741 4,168 9,764 17 12,338 9 171 2,a9,018 965 14,079 4,510 50,443 4,146 7,685 58,216 1,495 49, a 9 717 38 192,865 1,688 2,880 610 2,975 3,182 1,097 4,105 7 8,110 28 339,560 171,492 9,760 2,804 14,528 611 2,880 17,412 118 21,421 33 23 107,787 11,482 3,386 766 3,» 5 278 2,a4 4,870 2 7,903 10 18 549,201 8,015 32,735 7,034 8,126 4,366 3,533 22,454 415 22,794 22 93 133,712 7,690 11,585 3,933 2,131 2,360 3,495 6,233 10 9,136 37 115 32 33 34 35 36 87 217 2S3, 676 1,535,966 187,797 186,663 30,125 274 30,329 157,398 440 22,673 140,635 3 6 /8 .ie6 36/8.187 • 36/8,136 1,342 528,217 2,836,495 531,124 329,358 54,982 94C 55.928 275,196 1,176 68,045 378,858 36/22.598 36/22.668 m £6/22,598 396 238,240 3,042,469 384,544 584,004 60,414 292 60.706 323,838 854 28,301 246,702 36/17.399 36A7.a4 — 36/17,399 578 49,225 630,445 84,218 84,028 14,036 365 14.40C 69,818 1,037 16,991 160,858 56A0.970 36/11,001 Ù 36A0,970 399 173,864 833, o a 106,908 106,750 17,670 289 17,959 88,949 586 47,719 228,742 36A3.790 36A3.836 — • • 36AS,790 109,890 i,a e 85 (32) 170,250 3,545 1,869 219,604 262 58 37,9a 284 54,513 879 88 134,917 1,374,380 152,144 ia,968 24,813 553 25,366 126,778 68,762 370 33 12,588 107,713 36/4.371 56/4.372 — 36/4,371 135 * 3,229 | * ' 493 T. 3 4 5 6 7 8 9 10 U 12 13 14 15 16 17 18 19 20 a 22 23 24 88 39 40 41 42 43 44 45 46 47 48 49 50 § 53 54 Table 1. - Corporation returns with balance sheets, 1939, by major industrial groups and by returns with net income and with no net Income ¿/i Number of returns, assets and liabilities as of December 31, 1939, or close of fiscal year nearest thereto, compiled receipts and compiled deductions, compiled net profit or loss, net income or deficit, income tax, (declared value) excess-profits tax, total tax, and dividends paid - Continued (Money figures in thousands of dollars) ________________________________ Manufacturing - Continued Total public utilities Manufacturing not allocable Net income 1 2 3 Number of returns with balance sheets 7/ Assetst Cash 8/ Note8 and accounts receivable (less 4 s Investments, Government obligations £/ 6 7 8 9 10 n 12 15 14 16 16 17 18 19 20 i» o> 22 i 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 3d 39 40 41 42 43 44 45 46 47 49 49 SO 51 52 68 »4 Total assets 12/ Liabilitlesi Accounts payable Bonds, notes, mortgages payable! Maturity less than 1 year Maturity 1 year or sore 'Surplus and undivided profits 14/ Total liabilities ¿g/ Receipts, taxablei Gross receipts from operations 17/ Bents and royalties IB/ let capital gain 19/ let gain, sale of property other than Dividends, domestic corporations 21/ Dividends, foreign corporations 227 Other receipts Receipts, partially and wholly tax-exempt! Interest on Government obligations! Subject to excess-profits tax 23/ Total compiled receipts 26/ Deductions! Rent oaid on business property Contributions or gifts 30/ Net capital loss 19/ Net loss, sale of property other than Compiled net profit or net loss (31 less 46) Net income or deficit i/ (47 less 30) Income tax (Declared value) excess-profits tax Compiled net profit less total tax (47 less 51) Dividends paids Cash and assets other than Corporation’s own stock For footnotes, see pages 19 and 20« 668 16,632 36,654 52,531 4,359 45,420 76,804 7,872 240,273 18,686 No net income Net income 717 2,063 9,761 1,126,058 7,792 1,030,086 466,879 11,322 122,789 218 6,667 6,061,205 33,974 28,333,977 2,696 1,044,975 64,733 38,205,966 9,545 699,590 8,609 26,035 8,608 30,781 76,937 6,558 73,494 8,415 240,275 4,969 277,106 9,265 13,197,051 2,807 1,296,536 7,441 2,564,226 38,295 14,151,840 374,860 2,613 11,687 5,856,764 21,889 215,964 64,733 58,206,969 272,572 1,480 716 747 67 46,562 1,074 116 182 25 96,953 8,517,948 65,064 64,065 4,357 Major industrial groups 2/ - Continued Public utilities Communication Transportation 3/ Net income No net incram 6,217 8,983 456,150 570,072 363,450 429,855 218,404 247,648 23,756 53,970 1,803,511 1,745,182 18,560,083 10,965,814 557,870 769,795 22,024,575 14,559,118 Net income No net income 1,572 6,633 871,769 265,754 205,284 21,279 1,695,082 15,662,677 606,707 18,828,550 108,089 152,021 55,994 1,669 2,747,571 3,757,122 59,479 6,881,945 Trade Total trade Other public utilities 4/ Net Income No net income 2,172 1,128 16,486 447,897 20,647 11,943 82 22,473 465,032 52,952 587,597 448,211 192,482 67,150 1,588,502 13,613,041 627,626 16,984,906 16,567 257,451 Net income No net income 60,745 1,222 No net income 63,882 1,283,562 217,oca 77,029 4,255,947 50,419 4,143,267 204,658 2,395 85,956 2,169,900 2,234,575 2,954,300 345,671 110,155 2,606,225 15,557,504 967,718 1,015,485 14,255 525,518 1,006,794 128,145 3,672,715 2,859,899 903,524 10 11 67,896 97,140 l z 3 4 5 6 7 8 9 565,585 1,042,272 78,556 668,457 80,978 10*796,750 4,901,605 519,736 2,284,500 1,150,286 570,157 5,755,910 4,576,595 144,499 515,464 2,041,175 5,560,552 178,566 2,123,927 22,024,373 14,339,118 589,726 9,154,581 2,115,685 664,500 4,899,758 , 271,657 1,804,594 1,915,985 18,828,550 7.2Ï8 1,591,707 199,516 161,721 4,505,955 20,958 727,269 8,997 6,881,945 188,848 5,771 254,322 6,903^7X9 .679,284 70,861 10,679 1,852,560 184,920 5,471,612 209,404 16,091 9$,970 1,568,962 26,622 65,585 587,597 16,984,908 958,363 74,960 1,587,828 1,050,946 592,081 97,765 255,027 1,020,116 671,251 4,952,940 27,816 164,230 140,809 5,957,674 318,944 144,561 2,608,225 15,557,504 588,758 512,818 178,566 297,555 1,551,270 64,485 575,409 797,268 5,672,715 51,891 5,172,120 22,705 50,013 862 2,819 1,564,615 8,674 22,526 462 882 141,727 459 610 4 54,150 5,146,001 26,788 22,995 1,140 10,401 52,867,611 607,291 415,231 66,144 2,118 1,694 71,773 510 4,399 7,428,182 279,132 10,299 25,062 1,596 5,724 60,587 40,285 527,575 1,619 1,925 71,958 26 26 27 28 1,155,980 45,175 5,729,078 25,262 52,317 1,176 57,004 4,007,271 29,602 18,544 2,755 48 977 56 2,758 U 18 1« 16 ie 17 18 19 to a zz ts 24 SO 1,482 922 1,628 42 73 (32) 254 6,252 271,510 5,314 52,555 1,520 21,597 550 22,245 2,829 49,869 65 16,486 1,272 19,557 474 18,861 228 177,727 1,485 2,548 (52) 1,063 626 5,195 45,915 5,764 15,502 117 14 279,575 5 1 48,551 4,465 2,101 9,067,540 377 707 3,877,783 5,456 1,177 4,189,057 551 659 5,298,725 67 97 1,581,047 1 14 145,567 940 827 5,297,256 2,483 44 54 453,692 54,030,304 212 175 7,818,244 29 50 51 195,784 681 9,334 1,388 2,218 926 1,810 5,177 68 5,188 142 38 34,192 770 2,478 620 525 517 637 1,105 1 1,552 245 41 70,992 4,310,546 77,365 110,436 21,840 20,408 591,046 750,424 5,060 729,148 10,194 462 30,844 2,512,228 50,010 63,072 11,585 6,902 545,822 297,420 44 195,809 2,655 404 42,251 2,488,573 51,749 44,947 17,655 6,612 214,455 258,064 346 163,599 2,340 259 22,522 2,240,802 25,077 45,238 8,307 4,933 454,103 248,905 57 122,708 184 509 1,165 566,554 6,595 52,120 1,563 4,846 66,975 150,860 773 180,986 16 55 453 88,934 1,515 10,975 1,162 764 9,159 9,188 5 17,837 4 17 27,599 1,255,258 19,022 55,369 2,643 8,950 519,615 341,500 1,941 384,563 7,837 150 6,089 26,254,246 260,505 182,491 566,148 3,619 490,844 6,858 67,959 1,916 108,479 1,205 95,402 82,560 540,147 39,528 6,598 4 212,990 55.264 1,148 2,467 1,972 78 5,987,812 52 33 54 35 56 57 58 59 40 41 42 45 SSI 36,966 258,048 21,527 21,513 3,412 102 3,515 18,00.3 104 9,415 52,000 36/3.668 36/3.669 • • 4,453 514,585 4,215,635 56/337.853 36/358.559 1,206 426,176 5,718,191 470,846 469,669 71,519 1,035 72,554 398,292 2,772 410,073 3,585,770 36/287.047 56/287.685 - 700 161,255 1,144,440 456,608 456,511 47,679 51 47,731 388,877 46 15,717 155,554 56/8.187 36/8,201 - 1,225 284,095 2,687,746 2,947 1,635 90,796 4,598,089 476,511 53,007,476 56/42,619 1,022,829 ¿6/42,673 1,020,935 162,223 * 2,506 * 164,729 838,099 36/42,619 5,585 1,154,995 8,010,804 ¿6/192,661 36/192.755 “ 44 45 46 47 48 49 60 “ 56/192,561 a 36/3,668 5,151 871,525 7,550,577 1,516,963 1,514,862 214,212 1,177 215,389 1,301,574 8,147 150 69 - 1,161,625 1,584 34,669 52 288;240 7,181 1 488,165 8,656 • — 36/357,853 834 — 56/287,047 363,662 113 . - — 16/8,187 917 (32) 609,ao 608,683 95,014 91 95,105 514,405 509,721 637 26,572 51 250,565 180,527 21,246 45,716 58,445 94,234 485 71,624 753 1,548 52 65 54 Table 1. - Corporation returns with balance sheets, 1999, by major Industrial groups and by returns with net income and with no net incase l/i Humber of returns, assets and liabilities as of Deceaber 51, 1959, or close of fiscal year nearest thereto, ocapiled receipts and compiled deductions, oonpiled net profit or loss, net inccae or deficit, lnccae tax, (declared wains) excess-profits tax, total tax, and dividends paid - Continued (Honey figures In thousands of dollars) 1 2 ft 4 5 6 7 8 9 8P8È6SÎ5ÎÎ ÉftfeÊÊSSSSRSSS SSS 83S5 KSSBPS SS5SKESKP 10 SS 6« Hasher of returns with balance sheets 7/ Assets! Cadi 8/ Votes and accounts receivable (less rsserve for bad debts) Inventories Investaenta, Government obligations j j Other investmenta let capital assets 10/ Other assets 11/ Total assets 12/ Liabilities! Accounts payable Bonds, notes, mortgages payables Maturity less than 1 year Maturity 1 year or nore Other liabilities Capital stock, preferred Capital stock, marnm Surplus reserves 15/ Surplus and undivided profits 14/ Less deficit 1§/ Total liabilities 12/ Receipts, taxable! Gross sales 16/ Gross receipts froa operations 17/ Interest Msnts and royalties 18/ let capital gain ¿$/ let gain, sale of property other than capital assets 20/ Dividends, domestic corporations 21/ Dividends, foreign corporations 22/ Other receipts Receipts, partially and wholly tax-axsnpti interest on Government obligations! Subject to excess-profits tax 25/ Wholly tax-exenpt 24/ Total compiled receipts 25/ Deductions! Cost of goods sold 26/ Cost of operations 27/ Caqmnaation of officers Bent paid on business property Repairs 28/ Bad debts Interest paid Taxes paid 29/ Contributions or gifts 50/ Depredation Depletion let oapltal loss 19/ 1st loss, sale of property other than capital aaaata 20/ Other deductions 51/ Total oonpiled deductions Compiled net profit or net loss (51 less 46) let income or deficit ¿/ (47 less 50) lnccae tax (Declared value) excess-profits tax Total tax CoapUad net profit leas total tax (47 less SI) Dividends paidt Cash and assets other than corporation's cam stock Corporation's own stock For footnotes, see pages 19 and 20, Major Industrial groups 2/ - Continued Trade - Continued Iholesale Retail Limited-price Total retail Department, general Mail-order houses Food stores merchandise, dry goods variety stores let income Ho net let income lo net let inccae No net let income No not 1st Income Mo net let Income lo net income income inooma incone Incarne income 19,046 14,755 35,586 86 42,496 2,887 2,475 168 148 188 5,564 1,755 £39,621 96,257 598,460 100,241 2,006,710 1,804,457 78,854 1,545,651 674,174 118,510 6,615,717 588,567 547,451 6,199 142,353 240,014 50,422 1,271,042 1,904,765 1,959,552 112,257 606,258 1,979,498 197,301 7,357,869 461,599 551,794 6,281 159,290 621,754 62,059 1,942,818 1,455,395 577,903 1,192,053 415,646 560,558 462,191 186,599 460,790 2,117,458 172,820 1,585,740 165,413 6,615,717 159,429 148,176 50,096 97,401 506,674 17,668 189,558 255,664 1,271,042 295,550 497,148 350^472 493,565 2,396,515 167,799 2,078,471 113,101 7,557,869 207,920 502,070 109,182 153,591 846,894 41,793 508,691 442,970 1,942,818 2,914,312 14,575,552 137,114 171,010 5,567 31,999 4,705 46,179 597 2,01? 1 11,545 77,542 206 4,167 920 119,990 12,058 2 67,507 72,115 1,074 8,589 71,559 5,912 227,679 7,650 152,241 5,454 92,018 254,962 42,547 612,593 277 1,697 18 767 142 ft,108 52,555 12,446 825 565 6,540 1,847 58,722 1,115 2,408 145 1,225 1,709 1,194 8,715 62,442 218,886 47,068 55,808 257,554 24,989 766,766 £4,549 27,698 768 15,287 118,275 5,528 201,745 5 4 6 e 7 8 9 567,721 52,244 55,424 752 4,416 1,249 125,158 58,019 10 46,717 217,463 91,694 224,604 901,158 84,955 761,955 13,242 2,885,001 15,020 41,619 9,042 21,589 105,656 1,867 40,485 37,843 227,679 755 28,856 19,296 28,684 228,880 15,069 257,586 116 612,593 523 215 195 171 1,927 1 189 665 5,108 5,599 5,259 2,469 11,748 7,611 2,527 19,507 194 58,722 575 1,500 524 680 4,657 72 2,551 2,850 8,715 18,100 42,579 28,505 45,873 209,196 15,574 289,047 4,855 766,756 10,560 40,576 8,082 16,562 74,157 5,658 57,581 29,112 201,745 11 12 1ft 14 IS 16 17 18 19 5,778,554 118,402 5,655 15,705 725 5,892,415 21,269 16,972 16,464 580 550,887 4,104 1,064 2,019 82 918,411 2,064 1,269 8,670 8 7,456 64 4 11 * 109,696 506 65 20 18 16,125 854 18 54 18 5,038,914 4,871 787 2,744 527 529,355 8,555 UO 1,575 77 20 21 22 2S 24 1,615 16,107 10,252 212,470 776 680 6 46,785 166 8,088 12 64,005 55 106 (52) 6,451 6 1,085 10,154 1,201 am (52) 1 15 1,471 • 15 182 450 1,670 11 11,861 127 88 2 1,859 2S 26 27 £8 956 918 16,248,049 1,546 76 55 741 3,081,259 15,069,266 112 92 5,967,287 336 552 4,020,458 22 24 564,791 8 1 942,856 7,585 8 12 111,609 5 1 17,252 488 89 5,062,591 5 19 541,528 29 50 51 15,647,441 155,891 250,850 70,806 15,582 46,075 41,646 97,081 2,061 50,064 455 909 2,575,266 10,551,970 84,506 85,553 70,487 251,210 23,035 591,454 4,058 47,225 18,862 50,250 12,696 45,159 24,622 210,544 96 4,016 159,149 16,055 190 572 559 781 2,850,500 76,997 154,878 144,580 14,055 21,075 21,295 58,698 292 46,542 462 803 2,659,646 5,116 36,201 85,668 16,859 12,499 16,485 69,562 1,718 41,195 101 155 252,142 1,101 8,480 12,185 1,178 2,064 2,068 6,619 22 5,997 2 62 580,489 5,175 48 550 464 11 5 19 90 1 75 • 4 68,012 1 1,505 295 127 646 192 866 15 405 2 10,548 560 596 218 29 279 62 172 1 78 • 2 2,595,998 2,177 18,229 47,777 8,974 2,561 4,661 50,975 618 27,841 5 65 415,674 6,418 9,869 11,054 5,596 1,207 2,592 8,906 18 8,807 41 77 52 55 54 5ft 56 57 58 59 40 41 42 45 1,128 1,477,882 15,855,887 592,162 391,245 60,879 1,507 62,587 529,775 1,288 1,531 311,114 2,765,292 14,544,507 3,142,815 36/61,554 524,760 35/61.609 524,019 — 84,481 754 • 85,215 56/61,554 459,545 2,150 721,616 4.075.699 36/106.412 36/106.504 — — 56/106,412 255 892,915 5,818,155 202,285 201,955 55,725 96 53,819 168,466 184 84,247 374,555 36/9,563 51/9.586 — Sg/9,565 71 187,971 873,650 69,226 69,225 11,757 4 11,740 57,486 (52) 1,557 7,794 33/211 33/211 1 5,950 18,296 56/1.045 36/1.045 «• • • 33/1,043 546 459,470 2,997,697 64,694 64,605 10,576 108 10,684 54,010 259 85,104 549,605 53/8.074 33/8,094 • 33/211 61 35,458 107,562 4,247 4,255 750 1 751 3,516 • • 33/8,074 44 4ft 46 47 48 49 60 51 52 5,619 48 99,422 528 450 4 45,538 - 5 - 2,562 - 52 5 40,965 1,119 754 1 55 54 15,668,745 590,559 27,140 17,256 1,894 1,110 52,629 14,267 92,595 181,284 6,052 556 949 75 19,455 4,575 24 256,489 2,549 161,695 854,554 716,954 28,534 265,765 807,265 48,2552,883,001 em 3,442 64,270 2,662 60 1,125 20,585 157 12,790 • 10 me 49 • em me T*U na! ^ ^ i i 0r^ n I!*“? " wiih.**u ?ce ahe®t8» If5»» jVJ■**>*• i«tartrl»l groups and by retains with net income end with no net Inoone 1/« Number of retains, assets and liabilities as of Decenter 51, 1950, or dose of fiscal year nearest thereto, compiled receipts and conpiled deductions, compiled net profit or loss, net income or deficit, lnooae tax, (declared value) excess-profits tax, total tax, and dividends paid - Continued __________________ (Money figures in thousands of dollars)______________________ Major industrial groups %/ - Continued Trade - Continued Retail - Continued Package ■iquor stores Drug stores Apparel Furniture and house Bating and drinking Dealers in automobiles, accessories, tires, fund,things places Net Income Mo net Met income Mo net Met incone No net Net income No net Net income No net Net income No net income incoas income income Number of retains with balance sheets 7/ 595 798 1,654 2,880 4,182 5,867 2,552 2,582 1,847 5,126 5,014 4,784 Assetsi Cash 3 / 2,105 1,595 18,437 5,174 55,418 15,411 21,143 5,512 18,942 8,775 55,522 9,011 s Motes and accounts receivable (less rsserve for bad debts) 920 619 19,963 5,524 152,529 54,560 277,076 75,571 4,762 8,495 99,879 42,947 4 Inventories 6,210 5,150 64,268 26,156 185,654 90,842 105,758 58,907 9,161 6,801 166,986 81^152 5 Invustmmits, Oovenssent obligations %J 1 (52) 555 150 10,843 405 2,299 715 1,182 649 1,180 '555 e Other invastaents 158 153 7,869 2,257 44,420 16,948 14,742 9,558 22,961 15'063 15,229 6,797 7 Met capital assets 10/ 2,199 2,854 41,439 17,565 101,755 58,712 55,544 25,562 86,854 84^235 95^264 41*674 Other assets 11/ 411 642 5j316 1,586 15,850 7,453 8,091 4,905 5,775 6,152 15,754 8*420 9 Total assets 12/ 12,004 10,791 157,827 56,192 546,249 222,111 480,435 160,507 155,565 137,612 190'514 416*600 Liabilities! 10 Accounts payable 4,621 4,814 25,162 16,402 89,077 64,154 75,525 50,959 17,752 55,281 59,595 48,628 Bonds, notes, nortgages payablei U Maturity less than 1 year 955 1,206 5,524 4,730 21,215 20,450 51,676 15,800 5,092 11,547 76,416 46,586 12 Maturity 1 year or nore 858 1,120 10,721 6,129 56,9 U 17,500 23,665 19,374 14,846 45j118 49,865 29^726 Other liabilities 15 681 547 6,208 2,804 28,151 11,058 73,738 16,273 7,821 9,272 12'642 26,079 14 Capital stock, preferred 151 149 16,092 2,630 57,544 20,079 55,462 15,968 10,414 12,852 5^821 15,704 15 Capital stock, n isiin 5,725 4,205 54,685 31,122 157,608 103,999 130,255 67,094 51,945 42'116 79'119 15llS05 16 Surplus reserves 15/ 12 50 1,975 154 7,355 2,694 15,881 5,980 1,563 7,608 6,925 1¡840 17 Surplus and undivided profits 14/ 1,502 678 42,735 6,736 161,019 56,584 109,865 25,581 47,890 14,459 75,040 19¡577 18 less deficit 15/ 496 1,958 3,074 14,514 12,629 54,207 15,650 55,502 5,958 45,586 17'582 53*224 19 Total liabilities ¿2/ 12,004 10,791 157,827 56,192 546,249 222,111 480,455 160,507 153,365 416'600 157,612 190'514 Receipts, taxable! dross sales 16/ 42,115 55,951 425,967 145,140 1,214,559 457,115 509,407 163,906 319,727 506,005 2,002,825 847,920 dross receipts from operations 17/ 262 729 1,692 2,038 16,749 7,082 8,093 4,056 18,681 58'844 26,125 29*065 Interest (52) 592 25 987 352 1,790 685 221 220 5,496 1,167 25 Rents and royalties 18/ 82 25 1,190 558 4,688 1,535 1,636 687 1,970 2,813 1,220 *723 24 Met capital gain V3f 2 45 12 72 52 124 57 59 65 82 105 25 Met gain, sale of property other than capital assets 20/ 46 5 28 15 145 97 54 55 19 115 72 59 26 Dividends, domestic corporations 21/ (52) (52) 1,156 13 642 54 276 128 943 9 46 505 27 Dividends, foreign corporations 22/ (52) * • 2 8 (52) (32) 7 28 Other rsoelpts 95 84 5,829 1,457 25,809 8,545 54,112 8,472 1,803 2,003 14,506 6,290 Receipts, partially and wholly tax-exempt: Interest on Oovemcent obligations! 29 Subject to excess-profits tax 25/ _ (52) 5 170 (32) 4 58 14 22 14 20 S 50 Wholly tax-exempt 24/ 5 * • 2 36 8 50 5 15 15 5 10 51 Total ooapiled receipts 25/ 42,609 54,773 454,508 149,219 1,263,855 475,855 574,555 178,054 543,641 537,167 2,081,185 885,564 Deductions! 52 Cost of goods sold 26/ 52,527 26,286 293,850 105,597 797,381 302,477 276,102 103,026 186,164 174,256 1,712,549 758,339 55 Cost of operations 27/ 195 581 565 1,575 7,902 2,898 956 1,461 11,465 16,797 40,114 25¡564 54 Compensation of officers 2,612 2,248 8,087 7,064 56,165 21,258 21,104 10,959 10,735 15,187 17*346 59,221 55 Rent paid on buslnsss property 1,154 1,579 21,869 8,547 79,010 57,954 17,892 8,704 20,905 26,563 20^725 10^ 935 36 Repairs 28/ 58 45 976 386 2,745 819 1,498 461 5,03.0 2,741 1*229 2,710 57 Bad debts 24 25 526 188 5,548 2,482 6,655 2,117 215 594 5^276 5¡155 58 Interest paid 62 69 645 404 2,910 1,483 2,669 1,915 898 1,568 6,447 4*116 59 Taxes paid 29/ 662 655. 5,942 2,899 16,889 6,072 11,051 2,999 8,551 14"072 8,455 5*812 40 Contributions or gifts 50/ 4 8 99 16 462 54 195 20 73 51 191 42 41 Depredation 250 275 4,517 1,781 10,746 4,766 3,702 1,625 8,042 9,925 6,686 5,070 42 Depletion (52) 5 55 16 17 2 16 4 35 42 'IBS 45 Net capital loss 19/ 1 9 n 24 64 79 46 40 18 51 79 77 44 Net loss, sals of property other than capital assets 20/ 2 5 29 76 119 159 75 91 69 156 57 249 45 Other deductions 51/ 4,559 3,971 84,000 24,998 263,037 111,201 210,522 52,594 79,657 94,797 208,555 88,159 46 Total ooapiled deductions 41,870 55,555 420,917 152,886 1,222,795 491,667 552,446 186,027 529,585 896*134 548,754 2,056^846 47 Caqdlsd net profit or net loss (51 less 46) 759 35/762 15,591 36/3,667 41,061 36/15,832 22,109 56/7.992 14,058 33/11,566 24'338 J6A0*769 48 Net income or deficit ¿/ (47 less 50) 759 56/762 15,587 36/3,669 41,026 33/15,859 22,079 33/8,007 33/10¡77S 14,042 33/11,570 24,328 49 Income tax 95 2,058 6,592 3,500 2,150 3,402 50 (Declared value) excess-profits tax 8 25 — am — * 58 68 36 64 Total tax 101 — am • 2,063 6,650 3,569 2,166 3,466 52 Compiled net profit less total tax (47 less 51) 658 ¿6/762 11,328 3§/5,667 34,412 33/15,852 18,540 35/7,992 11*892 33/11,666 20^872 33/10,769 Dividends paldt 55 Cash and assets other than corporation's own stock 75 10 6,540 27 15,442 417 7,426 176 6,942 222 111 6,904 54 Corporation's own stock 14 * (32) 27 5 47 2 44 10 152 For footnotes, see pages 19 and 20, 1 2 6 20 21 22 SI u tu 1, - Corporation «turns »ith balsnc* sheets, 1959, by major industrial groups and by returns with net income and with no net income l/t »umber of retains, assets and liabilities as a t nennener 51, 1959, or «lose of fiscal year nearest thereto, eonpiled receipts and compiled deductions, ecnpiled net profit or loss, net incane or deficit, ine incone tax, (declared value) excess-profits tax, totea tax, amt dividends paid - Continued Tilling stations îsfsgéfcSfti; ÊgfcÊêsssâSïs« jagg sssisjag Met income Number of returns with balance sheets 2/ Assetst Cash £ / Motes and accounts receivable (less reserve for bad debts) Inventories Investments, Government obligations 9/ Other investments Met capital assets 10/ Other assets J i / Total assets 12/ Liabilities« Accounts payable Bonds, notes, mortgages payable« Maturity less than 1 year Maturity 1 year or more Other liabilities Capital stock, preferred Capital stock, common Surplus reserves 15/ Surplus and undivided profits 14/ Less deficit 15/ Total liabilities Jg/ Receipts, taxable« Gross sales 16/ Gross receipts from operations 17/ Interest Rents and royalties IB/ Met capital gain 1%J Met gain, sale of property other than capital asseta 20/ Dividends, domestic corporations 21/ Dividends, foreign corporations 227 Other receipts Receipts, partially and wholly tax-exempt« Interest on Government obligations« Subject to excess-profita tax 25/ Wholly tax-exempt 24/ Total compiled receipts 25/ Deductions« Cost of goods sold 26/ Cost of operations 27/ Compensation of officers Rent paid on business property Repairs 26/ Bad debts Interest paid Taxes paid 29/ Contributions or gifts 50/ Depredation Depletion Met capital loss 19/ Net leas, sale of property other than capital assets 20/ Other deductions 51/ Total compiled deductions Compiled net profit or net loss (51 less 46) Met income or deficit (47 less 50) (Declared value) excess-profits tax Total tax Compiled net profit less total tax (47 less 51) Dividends paid« Cash and assets ether than corporation*s own stock Corporation's own stock 655 Major industrial groups g / - Continued Trade - Continued Retail - Contitrued Lumber and coal yards Other retail trade Hardware Mo net Met income Income 1,072 1,276 No net income Met Income No net income Net income Trade r*ot allocable Retail trade not allocable Net incase No net No net income Net income 1,697 4,114 3,560 6,970 7,028 1,117 977 8,115 6,6a 6,275 1,148 4,612 2,056 27,948 10,892 39,468 18,227 7,200 2,554 95,4a 20,505 12,649 12,719 5,528 5,201 45,825 961 87,177 5,825 2,677 672 12,622 657 25,620 25,272 53,925 162 1,895 11,955 1,422 79,240 15,877 25,510 62 2,693 10,455 1,554 53,986 160,005 135,$61 4,202 45,628 118,742 9,545 499,751 74,250 49,143 1,106 18,707 88,717 8,417 251,212 164,457 125,875 5,885 29,796 98,801 14,208 476,470 79,218 108,970 421 56,718 76,2a 8,557 528,562 46,599 56,606 542 6,575 28,248 2,sa 127,899 21,620 14,589 255 6,681 19,989 1,599 544,474 579,498 15,567 500,628 50,060 1,585,719 117,952 114,260 1,773 45,675 145,026 15,664 458,855 15,527 6,526 11,506 10,117 58,391 46,005 94,950 72,174 15,472 10,544 214,455 109,975 2,275 5,294 5,872 1,098 41,572 1,408 19,858 1,508 87,177 2,078 5.581 1,185 565 9,879 54 2,557 4.581 25,620 8,529 4,517 2,485 1,644 35,855 405 18,756 2,255 79,240 6,080 5,583 1,911 2,685 51,844 141 8,314 12,490 55,986 52,000 29,505 14,865 19,221 227,172 4,616 150,884 16,719 499,731 27,190 56,074 8,602 18,270 127,257 2,573 41,027 59,995 58,970 23,805 29,199 135,596 11,496 65,807 88,680 528,562 9,512 7,645 7,873 6,411 a, 575 1,754 53,195 5,555 127,899 5,781 8,840 4,445 6,575 50,527 1,964 9,185 10,595 82,655 71,606 55,210 2a, 212 55,208 28,556 54,937 20,714 168,194 7,966 109,656 19,710 476,470 66,866 459,189 23,a o 473,464 42,450 1,585,719 41,408 62,572 19,087 46,s a 197,702 5,022 75,559 98,654 458,855 164,196 1,550 71 1,758 26 59,285 2,454 17 416 24 128,294 547 623 268 67,101 495 158 269 725,422 8,847 2,089 2,699 562 500,1SB 7,455 552 1,758 162 885,006 26,276 2,601 2,007 BL 424,128 20,852 1,076 2,865 202,598 2,191 635 764 154 69,862 3,550 188 643 14 2,as, 255 45,742 4,005 8,558 488 735, a 7 23,a 7 1,277 2,655 276 7 252 784 5 8,980 203 85 2,682 189 796 54 14,974 74 no (52) 6,071 74 59 950,219 455,2a 215,842 76,222 511,268 11,689 ,5a 17,656 1,566 5,216 2,976 7,a s 38 5,556 187 116 149,585 649 6,498 5,267 582 2,099 980 2,976 58 2,078 55,505 3,240 5,013 1 , 4a 260 1,459 675 1,502 342 89,467 475,221 33/17,970 33/17,976 33/17,970 26 58,656 207,285 6,559 6,547 978 52 1,050 5,529 654 4 1,909 125 106 146 (52) 1,010 91 105 168,841 120,754 466 2,890 2,915 1,779 405 588 5,971 17 2,991 8 12 21 10 1 502 10 12 51 (52) 1,579 1 (52) 62,489 46,520 1,489 2,220 2,425 214 295 528 1,217 4 869 8 27 12 6 12 668 20 (32) (52) 68,715 75 58 747,550 7 513,062 98,186 259 ,O U 2,105 156 947 751 1,804 42 825 4 15 51,595 531 4,222 2,080 116 522 466 1,114 9 567 5 552,869 5,776 26,585 4,003 2,757 6,860 5,681 11,515 176 8,416 124 207 256,495 5,444 12,557 3,179 1,583 3,671 2,554 5,292 41 4,172 74 197 650,o a 9,754 32,122 19,605 2,555 6,528 5,291 11,728 194 8,685 67 10,439 71,542 36/2,827 36/2,827 195 99,271 722,215 25,355 25,297 457 48,606 524,064 /11,022 36/11,029 56/11,022 205 160,154 904,666 25,555 25,495 3,648 114 5,762 21,791 676 8,224 6 12 8,488 65,911 36/1,422 36/1,422 4 16,712 127,777 5.590 5.590 504 7 1,205 6,571 36/1,422 SL6 3,074 56/2,827 82 3,715 21,620 971 25 42 - 9,987 356 12 11 6 1 1 (52) 151,567 17 24,655 161,267 7,574 7,471 4,186 5 55,565 36 1 112 95 111 86 3 6 21 88 169 (32) 7,258 11 12 8 25 66,866 20 220,011 65,962 1,001 i,6a 15,785 22,509 287 295 5 5,721 ia 255 2,712,989 24 27 769,697 29 2,054,834 19,262 64,068 28,585 7,152 12,156 8,597 52,522 521 25,757 125 282 582,247 16,184 25,199 12,715 3,175 5,7a 4,456 io,a 4 96 9,027 a 186 52 55 54 55 1,967 122,266 794,292 33/24,595 36/24.622 33/5,690 288 554,a 5 2,607,082 105,907 105,675 16,863 265 17,127 88,780 33/24,595 52 13 50,595 1,065 462 37 14 1,9a 19 2 6 992 7 25 155 14,054 79, a s 33/5,690 33/3,692 50 51 56 57 56 59 40 41 42 45 T a b l e 1 . - C o r p o r a t i o n r e t u r n s w i t h b a l a n c e s h e e t s , 1 9 5 9 , b y m a j o r I n d u s t r i a l g r o u p s a n d b y r e t u r n s w i t h n e t in c o m e a n d w i t h n o n e t i n c o m e l / j N um ber o f r e t u r n s , a s s e t s a n d l i a b i l i t i e s a s o f D e c e m b e r 5 1 , 1 9 5 9 , o r c l o s e o f f i s c a l y e a r n e a r e s t t h e r e t o , c o m p i l e d r e c e i p t s a n d c o m p ile d d e d u c t i o n s , c o m p ile d n e t p r o f i t o r l o s s , n e t t a c o a n o r d e f i o l t , in c o m e t a x , ( d e c l a r e d v a l u e ) e x c e s s - p r o f i t s t a x , t o t a l t a x , a n d d iv id e n d s p a id - C o n tin u e d (U o n e y f i g u r e s i n t h o u s a n d s o f d o l l a r s ) M a jo r i n d u s t r i a l g ro u p e 2 / - C o n tin u e d S3Ì38&&3&& fcftfeeêSgîSggîâîSSS {Sgg N n a b e r o f r e t u r n s w i t h b a l a n c e s h e e t s jJ in s e ts t C a s h &/ N o te s a n d a o o o u n ts r e c e i v a b l e ( l e s s re s e rv e f o r bad d e b ts ) I n v e n to rie s I n v e s t m e n t s , G o v e rn m e n t o b l i g a t i o n s 9 / O th e r in v e s tm e n ts N et c a p ita l a s s e ts 1 0 / O th e r a s s e t s 1 1 / T o ta la s s e ts 12/ L ia b ilitie s i A c c o u n ts p a y a b le B o n d s, n o t e s , m o rtg a g e s p a y a b le t M a tu rity l e s s th a n 1 y e a r M a t u r i t y 1 y e a r o r m o re O th e r l i a b i l i t i e s C a p ita l s to c k , p re fe rre d C a p ita l s to c k , « S u rp lu s r e s e r v e s 1 5 / S u r p lu s a n d u n d iv id e d p r o f i t s I d / L ass d e f ic it I S / T o ta l l i a b i l i t i e s 1 2 / R e c e ip ts , ta x a b le i O ro ss s a l e s 1 6 / G ro s s r e c e i p t s fro m o p e r a tio n s 1 7 / In te re s t R e n ts a n d r o y a l t i e s 1 6 / N et c a p i t a l g a in 1 9 / N et g a in , s a le o f p ro p e rty o th e r th a n c a p ita l a s s e ts 2 0 / D iv id e n d s , d o m e s tic c o r p o r a t i o n s 2 1 / D iv id e n d s , f o r e i g n c o r p o r a tio n s 2 5 / O th e r r e c e i p t s R e c e ip ts , p a r t i a l l y a n d w h o lly ta x -e x e m p t t I n t e r e s t o n G o v e r n me n t o b l i g a t i o n s i S u b je c t t o e x c e s s - p r o f its ta x 2 5 / W h o lly ta x - e x e m p t 2 4 / T o t a l c o m p ile d r e c e i p t s 2 5 / D e d u c tio n s « C o st o f goods s o ld 2 6 / C o st o f o p e ra tio n s 5 7 / C o m p e n s a tio n o f o f f i c e r s R an t p a id o n b u s in e s s p ro p e rty R e p a i r s ZBj B ad d e b ts I n te r e s t p a id T ax es p a id 2 9 / C o n trib u tio n s o r g i f t s 5 0 / D e p re c ia tio n D e p le tio n N et capi t a l lo s s 1 9 / N e t l o s s , s a le o f p r o p e r ty o th e r th a n c a p ita l a s s e ts 2 0 / O th e r d e d u c tio n s * * ? !/ T o t a l c o m p ile d d e d u c tio n s C o m p ile d n e t p r o f i t o r n e t l o s s ( 5 1 l e s s 4 6 ) N e t in c o m e o r d e f i c i t 1 / ( 4 7 l e s s 5 0 ) In o o m e t a x ( D e c la re d v a l u e ) e x c e s s - p r o f i t s t a x T o ta l ta x C o m p ile d n e t p r o f i t l e s s t o t a l t a x ( 4 7 l e s s 5 1 ) D iv id e n d s p a id « C a s h a n d a s s e t s o t h e r t h a n c o r p o r a t i o n 's ow n s t o c k C o r p o r a t i o n 's ow n s t o c k Vor footnotes, see pages 19 end 20* No n e t in c o m e N e t In co m e B u s in e s s s e r v ic e No n e t in c o m e N e t in c o m e A u to m o b ile r e p a i r s e rv ic e s No n e t ta c e rn e N e t in c o m e A m usem ent No n e t in c o m e N e t in c o m e O th e r s e r v i c e , s c h o o ls No n e t in c o m e N e t in c o m e in c lu d in g No n e t in c o m e 1 2 ,8 6 2 2 1 ,3 1 5 4 ,5 0 0 7 ,6 5 5 2 ,5 5 3 3 ,4 4 0 1 ,1 5 1 2 ,8 6 5 5 ,2 1 8 4 ,3 2 7 1 ,6 0 9 1 9 0 ,5 0 6 7 0 ,5 4 8 5 8 ,9 5 9 3 1 ,4 0 5 6 0 ,8 7 9 1 1 ,2 8 5 5 ,7 4 6 2 ,8 5 5 6 8 ,8 1 1 1 6 ,3 2 7 1 7 ,5 5 7 8 ,4 7 5 2 2 1 ,8 4 4 1 5 7 ,5 0 9 2 2 ,4 4 8 5 5 4 ,2 7 1 1 ,2 4 5 ,8 7 1 7 9 ,7 2 0 2 ,2 5 1 ,9 6 7 1 6 6 ,4 4 5 8 0 ,7 5 9 8 ,5 3 4 2 4 0 ,5 4 6 1 ,3 6 4 ,5 5 7 7 2 ,0 7 5 2 ,0 0 5 ,2 6 1 5 0 ,9 0 5 2 1 ,0 2 0 3 ,0 5 5 4 6 ,3 1 9 5 2 5 ,9 4 7 2 4 ,5 5 7 7 0 6 ,7 5 9 4 8 ,2 5 5 1 7 ,2 1 2 1 ,7 6 2 6 3 ,1 4 7 9 4 4 ,0 5 9 5 1 ,2 4 9 1 ,1 3 7 ,0 8 6 8 1 ,7 7 5 9 ,2 2 7 6 ,3 7 2 5 5 ,9 2 4 1 1 1 ,0 9 7 2 1 ,8 5 9 5 4 7 ,1 5 0 4 0 ,0 3 4 5 ,1 0 8 3 ,0 4 0 1 7 ,0 4 9 4 0 ,6 6 8 7 ,5 2 2 1 2 4 ,7 0 5 8 ,9 6 5 4 ,6 1 6 157 1 ,8 7 2 3 1 ,0 7 3 1 ,9 0 0 5 2 ,5 0 8 1 0 ,7 9 7 5 ,5 7 8 180 2 ,6 2 9 6 1 ,1 5 6 2 ,9 9 5 8 5 ,8 9 8 5 3 ,7 2 1 9 6 ,5 4 4 6 ,6 7 7 2 2 9 ,0 1 5 5 0 5 ,9 1 7 2 4 ,4 9 2 9 8 5 ,1 7 8 3 9 ,6 1 2 4 5 ,8 2 0 485 1 0 9 ,7 3 3 2 1 7 ,2 8 3 1 9 ,5 2 9 4 4 8 ,7 8 7 2 6 ,0 6 7 5 ,9 8 5 6 ,1 5 7 2 0 ,8 1 6 7 2 ,8 9 7 6 ,8 2 7 1 5 6 ,1 0 4 2 7 ,4 1 9 7 ,1 8 0 2 ,9 1 9 4 7 ,8 5 9 9 9 ,7 0 7 1 0 ,6 6 5 2 0 4 ,2 2 5 2 ,9 3 3 2 0 7 ,7 0 5 2 5 9 ,6 4 2 4 2 ,5 5 5 9 8 ,1 5 2 5 7 ,7 2 4 5 5 ,1 2 3 7 ,5 1 2 1 5 ,0 8 6 8 7 ,0 4 9 7 1 ,5 4 9 1 2 ,6 0 6 5 9 ,0 5 5 6 2 ,2 4 4 4 9 8 ,2 5 4 1 0 6 ,0 9 4 1 4 8 ,1 2 8 6 4 0 ,6 1 9 4 5 ,8 1 8 6 5 9 ,8 1 8 9 4 ,6 8 9 2 ,2 5 1 ,9 6 7 1 5 6 ,8 5 8 7 9 0 ,5 1 6 1 7 5 ,1 3 7 1 6 6 ,7 6 5 6 2 5 ,8 4 9 1 1 4 ,8 1 0 3 1 1 ,2 3 1 5 9 5 ,3 2 5 2 ,0 0 5 ,2 6 1 2 2 ,6 3 9 2 0 7 ,5 6 5 2 8 ,8 1 1 4 7 ,7 8 5 2 1 5 ,4 7 1 6 ,8 6 5 1 6 8 ,7 5 4 3 1 ,4 7 7 7 0 8 ,7 5 9 7 9 ,5 5 7 5 6 2 ,2 0 6 1 0 9 ,1 7 5 9 7 ,2 7 7 5 0 8 ,8 5 5 3 8 ,4 1 9 1 5 8 ,5 6 7 5 1 4 ,8 8 2 1 ,1 5 7 ,0 8 6 6 ,7 0 1 2 0 ,5 9 9 5 0 ,1 9 0 5 0 ,9 2 0 1 0 6 ,9 4 2 1 5 ,0 2 9 8 9 ,6 6 1 8 ,6 5 6 5 4 7 ,1 5 0 1 0 ,1 9 8 2 0 ,4 4 2 1 8 ,1 7 8 9 ,8 5 0 8 7 ,4 2 3 4 ,5 2 6 2 4 ,5 2 2 8 5 ,3 3 8 1 2 4 ,7 0 5 4 ,3 7 8 1 0 ,4 8 0 2 ,4 5 5 4 ,4 8 0 1 6 ,9 9 4 565 8 ,8 1 5 5 ,3 6 5 5 2 ,5 0 8 8 ,9 6 2 5 5 ,4 4 4 6 ,7 4 3 4 ,5 9 5 5 3 ,2 0 4 257 8 ,1 9 9 2 6 ,5 9 2 8 5 ,8 9 8 2 5 ,5 5 7 2 4 1 ,4 1 9 3 1 ,5 4 1 5 6 ,9 7 0 2 4 0 ,2 9 7 1 7 ,5 4 4 5 2 9 ,5 8 4 4 2 ,1 6 4 9 8 5 ,1 7 8 2 9 ,6 5 5 1 4 6 ,9 6 0 2 7 ,5 6 6 4 2 ,1 2 2 1 1 1 ,4 4 0 6 3 ,6 2 5 8 0 ,5 7 1 1 2 4 ,0 9 5 4 4 8 ,7 8 7 5 ,0 6 9 1 8 ,1 0 2 1 2 ,9 2 4 7 ,8 1 8 6 0 ,1 4 1 6 ,0 0 0 4 2 ,5 9 0 8 ,9 4 9 1 5 6 ,1 0 4 2 8 ,5 4 6 2 2 ,8 7 2 1 1 ,5 5 7 1 2 ,6 7 2 8 1 ,7 0 6 8 ,1 8 4 3 9 ,1 5 5 5 9 ,2 8 1 2 0 4 ,2 2 5 5 1 4 ,9 5 4 1 ,7 9 2 ,4 5 5 4 ,8 1 7 5 9 ,8 9 6 1 ,4 1 1 5 3 7 ,0 0 6 9 1 2 ,4 5 3 2 ,4 7 5 5 5 ,0 4 6 777 1 6 6 ,5 5 1 4 1 4 ,4 2 2 722 1 6 ,5 2 7 595 1 8 6 ,6 5 0 5 7 2 ,5 6 4 580 2 1 ,2 7 4 257 5 1 ,5 5 8 4 5 4 ,6 5 5 886 2 ,5 0 9 259 3 6 ,6 2 5 1 2 5 ,8 4 0 242 1 ,5 8 2 78 5 4 ,4 9 6 5 4 ,1 7 6 70 1 ,6 7 4 122 7 2 ,6 6 6 2 7 ,1 4 8 56 5 ,0 1 5 36 1 6 ,3 1 0 7 4 7 ,8 6 2 2 ,8 3 4 1 7 ,1 7 6 286 1 8 ,4 2 5 2 7 9 ,5 4 5 473 6 ,8 0 0 255 2 5 ,5 4 6 1 5 9 ,4 1 0 295 2 ,0 0 2 168 2 2 ,4 5 5 1 0 5 ,9 5 7 1 ,5 0 9 2 ,5 7 1 152 905 1 6 ,5 5 8 6 ,9 8 5 2 2 ,7 9 6 402 4 ,5 8 5 1 ,8 8 5 1 6 ,1 8 5 509 1 ,2 5 4 11 5 ,8 7 7 125 565 1 5 ,4 6 8 148 5 ,7 5 7 1 ,4 4 6 5 ,9 5 5 55 95 (5 2 ) 2 ,4 7 2 136 22 (5 2 ) 664 14 20 989 233 1 0 ,7 1 7 5 ,5 0 6 9 ,6 7 8 169 3 ,7 0 # 1 ,4 7 0 4 ,4 8 8 78 629 19 2 ,5 7 9 41 201 415 2 ,7 5 1 501 217 2 ,2 0 1 ,0 9 5 156 109 1 ,5 1 0 ,8 5 5 .4 5 55 6 0 6 ,5 4 2 25 28 5 8 6 ,9 1 4 79 66 5 1 9 ,0 5 8 77 29 1 6 7 ,0 9 4 5 5 9 1 ,5 6 8 (5 2 ) (5 2 ) 1 0 5 ,9 4 5 45 42 8 1 0 ,6 8 6 10 8 5 1 5 ,1 4 2 150 54 1 6 8 ,7 0 8 45 45 1 5 5 ,7 1 6 1 8 8 ,0 4 2 8 1 1 ,8 2 2 1 0 8 ,1 5 6 1 1 0 ,1 5 5 2 1 ,7 7 5 8 ,4 9 0 2 6 ,6 7 4 6 5 ,1 5 5 965 7 4 ,4 2 9 257 575 2 1 1 ,7 2 0 4 6 1 ,6 6 5 6 9 ,1 5 1 7 8 ,5 7 1 2 0 ,6 9 5 1 0 ,8 4 8 5 2 ,6 7 6 5 0 ,7 7 0 156 6 2 ,6 4 2 141 450 8 7 ,5 0 0 1 9 2 ,1 9 4 5 1 ,4 4 6 2 5 ,4 9 9 1 2 ,3 8 8 5 ,2 9 5 1 0 ,9 7 2 2 4 ,2 5 9 250 5 0 ,2 5 6 51 112 1 1 0 ,2 2 5 1 8 5 ,6 8 6 2 6 ,1 2 5 2 9 ,8 7 9 1 5 ,2 9 0 5 ,0 8 8 2 2 ,1 5 4 5 2 ,8 5 6 55 4 1 ,0 1 9 55 159 5 7 ,2 7 9 2 4 9 ,1 1 1 5 8 ,1 0 5 1 0 ,8 6 9 2 ,0 1 2 2 ,1 5 2 1 ,0 2 4 9 ,1 5 0 212 1 0 ,1 6 5 29 100 2 6 ,2 1 5 7 5 ,6 2 5 1 5 ,2 2 1 5 ,5 6 5 422 2 ,6 2 2 1 ,0 7 2 2 ,8 5 1 15 3 ,5 5 5 4 97 5 9 ,0 5 5 1 4 ,6 9 8 4 ,7 6 5 8 ,8 1 8 586 447 625 2 ,0 4 9 20 3 ,5 2 6 7 14 5 0 ,1 9 4 1 0 ,8 4 0 6 ,9 1 4 1 2 ,0 7 2 822 577 1 ,5 9 8 2 ,8 8 7 12 2 ,9 2 1 3 55 8 ,4 9 6 2 9 8 ,9 6 6 1 8 ,2 6 9 6 0 ,0 2 9 5 ,8 8 4 1 ,2 9 7 1 5 ,0 4 7 2 5 ,1 4 5 451 2 6 ,5 6 2 86 74 1 0 ,8 7 9 1 4 0 ,5 5 2 1 0 ,0 8 5 2 4 ,8 4 6 5 ,0 7 4 5 ,4 0 6 6 ,1 5 4 8 ,5 7 1 45 1 1 ,4 3 3 52 84 1 4 ,6 1 9 5 6 ,0 9 0 1 5 ,2 1 7 4 ,5 5 0 1 ,0 7 5 1 ,2 8 7 986 4 ,5 0 5 49 4 ,2 5 5 85 75 1 4 ,0 6 8 5 2 ,5 5 0 1 0 ,4 7 6 6 ,1 2 7 1 ,0 7 5 1 ,1 4 2 1 ,6 4 5 5 ,7 5 8 52 3 ,6 5 5 24 67 464 6 0 9 ,7 5 9 2 ,0 2 6 ,4 9 3 1 7 4 ,6 0 0 1 7 4 ,5 8 5 2 £ ,1 5 0 500 2 6 ,4 5 0 1 4 8 ,1 7 0 2 ,9 7 4 5 9 7 ,5 8 3 1 ,4 0 0 ,0 1 9 3 6 /8 9 ,1 6 3 3 3 ^ 8 9 ,2 7 2 1 ,8 6 6 1 6 2 ,6 6 2 6 2 9 ,1 2 0 3 6 /4 2 ,2 0 6 3 ^ 4 2 ,2 5 5 56 1 1 9 ,0 6 5 4 7 9 ,5 0 2 5 9 ,7 5 6 3 9 ,6 9 0 6 ,0 2 2 70 6 ,0 9 2 3 5 ,6 6 4 104 4 4 ,6 6 8 1 7 6 ,0 2 8 5 6 /8 ,9 5 4 3 3 /8 ,9 6 2 44 5 1 ,4 2 4 1 5 4 ,0 5 5 14j 675 1 4 ,6 2 0 2 ,2 5 .* 55 2 ,5 0 6 12*367 161 5 1 ,2 6 6 1 4 6 ,0 2 5 5 6 /1 0 ,3 0 7 3 3 /1 0 ,5 5 1 5 6 /4 ,0 6 0 192 2 6 7 ,5 9 5 7 2 5 ,6 9 5 8 4 ,9 9 1 8 4 ,9 5 0 1 2 ,7 2 1 82 1 2 ,8 0 3 7 2 ,1 8 8 642 1 1 9 ,1 6 9 5 5 8 ,5 7 0 5 6 /2 3 ,4 2 8 3 j5 /2 5 ,4 S S 3 6 /8 ,9 3 4 14 1 5 ,8 2 4 8 8 ,0 4 2 3 ,5 2 6 3 ,5 2 3 468 14 482 2 ,8 4 4 201 1 8 ,9 2 6 1 0 8 ,0 0 5 5 6 /4 ,0 6 0 3 5 /4 ,0 6 0 5 § /8 9 ,1 6 S 158 1 5 6 ,3 5 0 5 7 4 ,6 7 1 5 1 ,6 7 2 5 1 ,6 1 9 4 ,6 4 2 81 4 ,7 2 5 2 6 ,9 4 8 8 2 ,0 5 3 940 2 ,7 5 5 69 1 2 ,2 6 6 128 219 64 1 ,0 1 6 - 64 - 8 8 ,7 6 0 415 — — - 5 § /4 2 ,2 0 6 487 ____________ lI 2 3 ,0 0 1 85 mm mm | am 1 5 6 /2 3 ,4 2 8 1 1 ,8 8 7 1 6 ,9 1 5 314 5 6 /1 0 ,5 0 7 99 (8 2 ) 8 888 88 8 0 8 888 538 8 S 8 Í8 0 8 ggíSSKSStít: N e t in c o m e P e rs o n a l s e rv ic e 8 P 8 & & 5 & S S ftfeÊSSSSSgSaS 088 T o ta l s e rv ic e 1 9 3 9 . h r m a jo r i n d u s t r i a l g r o u p s a n d b y r e t u r n s w i t h n e t In co m e a n d w i t h n o n e t In c o m e l / J “ c e l l e d d e d u c t i o n ., c o m p ile d n e t p r o f i t o r l o s s , n e / W e x c e s s - p r o f i t s for t a x , t o t a l t*T. t a x , And a n d dlvldendfl d i r i d e n d s Dflid p a i d — PluMlUfl (M o n e y f i g u r e s i n t h o u s a n d s o f d o l l a r s ) 4 5 6 7 8 9 10 11 12 13 14 IS 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 52 53 34 35 56 57 58 39 40 41 42 43 44 45 46 47 48 49 50 51 52 55 54 To t footnotes, see pages 19 a n d 20* R e t in c o m e No n e t in c o m e R e t in c o m e Ho n e t Incase No n e t in c o m e No n e t in c a s e 51 117 5 0 ,7 4 3 7 0 ,2 0 2 1 0 ,8 0 9 4 ,5 4 0 224 2 0 ,8 9 4 ,6 1 7 4 ,6 2 2 ,8 9 6 1 8 ,8 5 5 ,6 8 0 3 ,2 5 5 ,1 1 5 1 8 ,5 8 1 4 2 .5 4 0 1 3 0 ,4 8 0 1 7 ,9 4 9 6 9 5 ,7 3 6 2 6 ,1 7 6 555 1 4 ,4 7 5 ,1 8 5 5 ,1 8 8 ,0 1 0 3 5 ,9 9 8 7 2 ,7 0 9 5 7 ,4 7 2 2 7 ,2 6 7 9 6 0 ,1 1 5 3 1 4 ,6 0 5 1 4 ,1 0 6 ,9 5 8 6 ,0 5 3 ,1 5 1 9 7 3 ,4 9 7 5 5 7 ,4 6 2 5 4 ,8 2 1 ,9 3 1 2 ,4 9 5 ,6 2 9 1 ,5 8 0 ,3 0 4 5 2 9 ,0 4 7 1 0 2 ,7 5 4 1 0 ,9 5 0 ,8 3 6 20,686 7 5 ,6 6 6 2 4 ,6 0 2 2 ,8 6 1 1 7 8 .4 1 5 2 7 ,9 4 4 3 4 5 ,2 1 9 5 7 ,6 6 9 1 5 ,6 1 9 5 5 9 .4 9 9 9 2 ,6 3 8 2 ,4 2 2 ,2 0 7 9 ,7 5 8 2 0 ,9 5 7 997 4 8 8 ,9 4 5 2 ,7 5 5 ,5 1 2 8 ,9 8 1 5 5 1 .6 8 2 1 9 4 ,3 2 9 1 6 ,4 2 0 ,1 7 6 8 3 ,3 8 6 2 5 0 ,0 5 8 1 8 .6 0 5 .7 9 7 1 ,7 2 2 1 ,9 9 3 ,4 6 4 8 ,6 2 4 3 6 ,6 7 4 2 ,3 8 1 ,2 6 0 1 0 ,2 3 8 1 7 ,4 5 1 5 8 ,8 2 8 8 ,0 3 6 1 0 ,2 2 6 8 8 ,5 5 5 212,666 1 0 3 ,7 2 1 6 5 8 ,5 5 8 1 2 4 ,7 1 3 4 6 8 ,1 9 1 6 8 0 ,5 8 6 5 1 4 ,1 5 8 3 3 7 ,1 2 7 3 9 5 ,3 4 8 . 2 ,3 8 1 ,2 6 0 415 118 51 525 940 85 2 ,4 8 8 “ 129 1 ,7 0 3 115 2 ,5 6 1 1 8 ,9 1 4 ,5 6 8 1 7 ,8 0 6 1 5 ,6 4 1 ,5 3 6 3 2 ,2 2 1 ,1 4 2 8 ,1 2 0 ,3 1 1 1 ,5 7 5 ,2 6 5 9 7 .1 8 5 .2 4 5 4 ,8 6 1 ,9 7 7 2 4 ,2 1 2 9 ,9 7 2 ,5 8 2 2 7 ,8 3 2 ,3 7 7 9 ,9 7 8 ,9 5 3 1 ,4 9 6 ,9 4 5 5 8 ,7 8 8 ,8 9 9 258 899 1 ,1 8 2 ,1 4 8 1 ,5 8 6 ,3 8 3 329 62 7,545 125 270 172 158 775 16 816 100 2 ,4 8 8 543 2 ,5 9 2 137 266 1 ,2 4 2 1 418 3 ,1 3 7 2 ,5 6 1 1 ,8 3 3 ,9 6 9 7 ,6 9 4 ,9 8 2 5 2 , 0 0 6 ', 7 1 4 4 ,0 9 7 ,9 1 2 1 5 ,1 9 7 ,2 1 1 3 ,0 6 8 ,8 2 1 1 3 ,1 9 7 ,1 1 7 1 ,0 8 3 ,6 2 9 9 7 .1 8 5 .2 4 5 1 ,0 5 7 ,9 0 6 8 ,2 4 9 ,0 4 7 3 8 ,7 6 7 ,2 5 8 1 ,7 7 6 ,7 8 2 6 ,0 6 4 ,1 6 4 1 ,0 4 6 ,1 4 8 4 ,9 3 9 ,9 8 7 4 ,4 7 7 ,7 1 5 5 8 ,7 8 9 .9 5 9 4 8 ,8 6 9 ,0 5 1 2 5 0 ,4 8 7 2 ,1 1 1 ,2 8 7 5 8 3 ,8 9 4 5 ,0 5 0 ,3 4 7 5 ,1 5 4 5 4 ,8 2 1 ,9 5 1 9 ,6 1 5 ,0 5 5 1 6 1 ,1 2 4 6 0 6 ,5 7 7 2 0 0 ,0 2 8 4 9 0 ,6 2 5 1 6 2 ,3 7 1 1 0 ,9 5 0 ,8 3 6 1 6 ,1 8 6 2 8 ,7 9 7 2 6 ,2 1 1 7 ,4 0 7 5 5 ,8 0 9 7 ,2 5 2 3 1 ,0 9 1 4 ,5 7 6 1 7 8 .4 1 5 5 2 .5 4 1 3 8 1 ,4 4 7 5 6 ,1 0 6 1 9 .5 4 2 1 0 4 ,2 7 5 1 7 ,1 9 4 5 7 ,5 0 4 1 0 6 ,5 3 8 5 5 9 .4 9 9 2 0 ,1 8 0 4 0 6 ,7 9 8 4 4 ,9 1 5 5 0 6 ,1 1 5 7 0 4 ,8 4 0 1 8 9 ,1 0 5 1 ,2 3 2 ,8 1 8 2 0 6 ,8 8 6 2 ,7 3 3 ,5 0 2 4 ,6 4 2 2 2 8 ,0 0 1 5 7 ,9 1 6 2 2 6 ,0 0 2 2 8 2 ,4 5 6 3 4 ,7 2 5 2 1 4 ,0 5 2 4 8 4 ,0 4 7 5 5 1 .6 8 2 3 ,7 5 2 ,8 8 9 2 8 1 ,9 5 0 2 ,5 6 7 ,7 5 0 6 ,4 6 5 ,6 6 5 1 ,8 6 3 ,2 4 ? 5 ,5 3 7 ,3 5 2 2 0 0 ,9 4 7 1 8 .6 0 3 .7 9 7 2 ,6 9 3 1 ,9 5 0 11 9 5 207 1 ,7 8 0 12 8 1 4 8 ,7 0 5 2 ,1 2 1 ,2 7 4 1 ,1 1 5 ,6 0 2 7 5 5 ,5 0 1 1 2 8 ,9 6 4 5 3 ,8 5 2 5 4 7 ,4 3 9 1 ,0 0 0 ,9 4 7 9 3 1 ,7 1 3 2 4 ,8 4 7 2 2 2 ,7 6 1 7 2 3 ,5 5 7 7 1 ,4 1 6 9 5 ,6 5 5 5 1 ,5 7 7 1 7 4 ,5 0 5 2 4 ,1 6 5 1 2 ,0 9 5 1 4 ,7 6 1 4 ,3 3 6 1 ,7 6 7 707 5 ,6 6 0 1 0 ,5 0 0 1 2 ,6 6 4 1 ,0 8 5 1 1 ,1 6 7 1 9 ,2 7 4 982 9 ,9 7 0 3 ,0 5 7 2 ,3 3 1 295 1 ,5 9 6 2 4 ,4 7 4 1 4 5 ,7 9 9 2 ,7 1 8 4 ,2 7 6 907 6 ,8 5 8 224 918 124 6 5 4 ,3 9 6 5 6 ,1 5 7 10 J4 5 9 1 0 ,5 8 3 527 1 ,0 1 7 14 1 ,5 2 2 518 8 8 0 ,4 4 5 2 7 ,5 3 3 i 18 • 264 1 (8 2 ) 4 ,9 3 0 1 ,5 3 7 1 7 ,9 5 0 476 2 5 ,3 4 4 529 4 ,6 1 5 115 272 57 2 2 ,4 4 3 6 7 ,9 2 6 1 ,6 1 7 4 4 ,9 7 7 9 ,7 5 5 1 ,2 2 6 5 ,0 1 0 2 ,0 4 5 2 3 5 ,5 0 8 1 8 0 ,0 6 9 5 ,7 9 9 ,9 6 1 5 4 ,4 0 3 2 3 7 ,6 8 6 2 ,9 6 7 ,8 3 0 2 1 7 ,5 5 8 1 5 4 ,9 9 5 1 ,5 5 1 ,0 4 6 2 4 ,4 0 0 4 5 ,8 9 4 5 4 7 ,1 5 5 285 116 2 5 ,6 0 8 194 1 ,3 5 4 5 5 ,0 9 9 655 532 1 4 5 ,4 7 0 353 1 4 3 .9 8 2 3 8 ,5 9 1 1 1 ,8 6 4 1 2 0 ,7 8 0 1 8 8 ,8 6 4 7 7 ,6 4 0 1 ,8 3 0 3 9 ,2 1 4 216 5 9 ,8 1 5 8 ,4 1 9 5 ,6 4 9 6 2 ,7 7 9 6 3 ,6 1 2 2 0 ,2 3 7 7 1 5 ,0 8 8 39 2 5 ,7 0 4 456 5 ,4 7 8 549 249 874 1 ,5 6 4 1 ,3 5 8 25 689 796 246 2 ,7 1 8 455 185 1 ,1 6 0 1 5 ,1 6 4 5 ,2 1 5 94 318 29 281 1 ,6 0 6 1 ,5 6 1 307 4 4 ,7 7 9 8 ,6 5 9 717 1 1 ,2 6 7 1 2 5 ,1 9 5 5 7 0 ,0 2 6 5 6 /2 2 ,8 9 2 3 3 /6 8 ,7 8 6 148 2 4 ,4 4 2 4 6 ,4 5 0 9 9 ,0 2 0 9 8 ,4 8 9 2 ,7 4 2 303 7 ,4 6 5 2 5 ,5 1 6 3 6 /9 ,9 4 9 f f /9 ,9 5 5 S g /5 1 5 ,5 4 5 7 ,2 8 7 4 6 5 ,9 8 1 1 ,1 0 7 ,0 6 9 4 2 5 ,9 7 7 2 6 8 .9 8 3 1 4 ,1 6 1 253 1 4 ,4 1 4 4 0 9 ,5 6 2 6 4 ,7 4 5 1 ,3 4 7 1 9 5 ,4 4 4 3 ,5 2 6 (8 2 ) (3 2 ) 1 ,0 9 5 761 536 609 81 11 23 70 1 87 1 140 633 512 84 9 12 55 66 (8 2 ) 1 1 ,7 2 3 4 ,7 4 8 1 871 2 ,2 7 5 182 182 55/230 M /Z 50 24 1 24 137 — — 3 6 /2 3 0 73 * HU 4 9 ,0 8 7 1 ,(0 1 ,4 0 9 6 7 ,2 5 8 8 6 ,5 8 5 294 9 8 ,8 5 2 5 ,2 5 7 510 81 4 8 (3 2 ) , 3 7 ,6 8 6 886 6 ,8 1 0 3 5 /'22 9 8 , 0 6 1 111111,.1 5 5 4 5 ,5 0 9 1 5 4 ,9 3 2 5 4 9 ,9 0 2 2 9 4 ,5 5 6 5 ,9 4 4 1 6 4 ,2 9 5 1 7 ,0 7 2 1 4 ,3 3 4 2 8 ,1 8 9 9 4 ,1 5 7 3 5 /1 2 4 ,7 5 7 7 4 ,2 4 5 5 9 ,2 5 5 1 4 3 ,5 4 7 4 2 6 ,4 1 6 2 9 1 ,0 7 2 210 2 1 9 ,0 2 5 4 ,4 1 9 5 4 ,6 1 7 7 0 ,4 9 5 1 1 ,6 3 6 1/ 2 , 110,868 3 4 / 1 , 9 1 2 , 7 7 5 y S , 8 9 8 ,7 1 7 W 3 , 4 8 3 ,1 7 5 5 6 /5 1 5 ,5 4 5 1 ,9 0 1 ,2 4 3 ||^ 7 S 3 ,0 3 2 1 ,7 2 1 ,1 7 4 1 2 6 ,4 5 3 1 ,3 5 5 ,7 8 2 4 0 ,1 5 0 85 1 0 ,6 0 0 22 555 2 2,000 460 939 6 ,7 3 4 1 0 ,7 1 6 3 ,1 9 9 2 2 ,2 6 0 2 20 38 504 5 ,5 5 0 1 7 ,3 0 1 4 8 ,4 7 9 3 6 /1 3 ,5 8 1 f f /L 4 ,7 3 5 3 § /2 2 ,8 9 2 955 9 ,7 2 5 1 9 ,9 6 1 3 ,6 4 7 3 ,5 5 1 474 7 481 3 ,1 6 6 1 9 ,1 0 5 1 ,0 9 0 2 ,8 7 5 3 6 1 5 ,5 6 7 58 87 169 1,201 2 ,7 7 5 9 6 ,2 4 6 1 3 1 ,2 5 2 118 111 4 4 ,7 3 2 2 3 6 ,3 0 9 6 4 4 ,1 3 6 6 4 3 ,6 1 7 2 9 ,2 2 2 200 10 7 6 1 ,8 8 7 590 175 14 7 ,0 6 7 5 6 ,0 2 3 1,010 265 46 248 7 ,5 7 4 5 4 ,8 9 9 5 6 /2 7 ,3 6 6 3 § /2 7 ,5 7 2 22 35 3 6 /1 3 ,3 8 1 7 ,2 2 8 9 ,5 4 1 2 ,7 4 8 84 4 ,9 7 9 1 5 4 ,2 0 1 9 ,2 0 2 193 2 ,9 3 8 428 142 3 ,7 2 5 1 1 ,4 1 0 248 3 6 /9 ,9 4 9 5 ,9 8 8 2 9 ,2 4 4 6 1 4 ,8 9 2 5 2 8 ,3 2 4 3 2 ,4 5 0 3 6 /2 T ,S 6 6 1,110 SSSSKSKSP 2 5 N um ber o f r e t u r n s w i t h b a l a n c e s h e e t s T j A s s e ts i C ash 9 / N o te s a n d a c c o u n ts r e c e i v a b l e ( l e s s re s e rv e f o r bad d e b ts ) In v e n to rie s I n v e s tm e n ts , G o v e rn m e n t o b l i g a t i o n s 9 / O th e r in v e s tm e n ts N et c a p ita l a s s e ts 1 0 / O th e r a s s e t s U / T o ta l a s s e ts 1 2 / lia b ilitie s « A c c o u n ts p a y a b le B o n d s, n o t e s , m o rtg a g e s p a y a b le « M a tu rity le s s th a n 1 y e a r M a t u r i t y 1 y e a r o r m o re O th e r l i a b i l i t i e s C a p ita l s to c k , p re f e r r e d C a p i t a l s t o c k , c o ra n o n S u rp lu s r e s e r v e s 1 3 / S u rp lu s an d u n d iv id e d p r o f i t s 1 4 / le s s d e f ic it 1 8 / T o ta l l i a b i l i t i e s 1 2 / R e c e ip ts , ta x a b le « d ro ss s a le s 1 6 / O ro s s r e c e i p t s fro m o p e r a tio n s 1 7 / In te re s t R e n ts a n d r o y a l t i e s 1 8 / N e t c a p i t a l g a i n 1 9 /~ ~ ^ R e t g a in , s a le o f p ro p e rty o th e r th a n c a p ita l a s s e ts 2 0 / D iv id e n d s , d o m e s tic c o r p o r a tio n s 2 1 / D iv id e n d s , f o r e i g n c o r p o r a tio n s ¿ 2 / O th e r r e c e i p t s R e c e ip ts , p a r t i a l l y a n d w h o lly ta x -e x e m p t: I n t e r e s t o n G o v ern m en t o b l i g a t i o n s « S u b je c t to e x c e s s - p r o f its t a x 2 3 / W h o lly ta x - e x e m p t 2 4 / T o t a l c o m p ile d r e c e i p t s 2 5 / - D e d u c tio n s « C o st o f goods s o ld 2 6 / C o st o f o p e ra tio n s 2 7 / C o m p e n s a tio n o f o f f i c e r s R en t p a id o n b u s in e s s p ro p e rty R e p a irs 2 8 / B ad d e b ts I n t e r e s t p a id T axes p a id 2 9 / C o n trib u tio n s o r g i f t s 5 0 / D e p re c ia tio n D e p le tio n N et c a p ita l lo s s 1 9 / N et lo s s , s a le o f p ro p e rty o th e r th a n c a p ita l a s s e ts 2 0 / O th e r d e d u c tio n s - ? ! / T o t a l c o m p ile d d e d u c tio n s C o m p ile d n e t p r o f i t o r n e t l o s s ( 5 1 l e s s 4 6 ) N e t in c o m e o r d e f i c i t \ / (4 7 l e s s 5 0 ) In co m e t a x (D e c la re d v a lu e ) e x c e s s - p r o f i t s t a x T o ta l ta x C o m p ile d n a t p r o f i t l e a s t o t a l t a x ( 4 7 l e s s 5 1 ) D iv id e n d s p a id « C ash and a s s e ts o th e r th a n c o r p o r a t i o n 's ow n s to c k C o r p o r a t i o n 's ow n s t o c k R e t In c o m e No n e t in c o m e B n ld tw fl c o m p a n ie s 5 / I n v e s tm e n t t r u s t s an d i n v e s tm e n t c o m p a n ie s 88838 1 R e t in c o m e No n e t in c o m e and le s s o r s o f r e a l p ro p e rty M o rtg a g e a n d t i t l e c o m p a n ie s B anks and t r u s t c o m p a n ie s 8388 T o ta l f in a n c e ,in s u r a n c e , r e a l e s ta te , and le s s o rs o f r e a l p ro p e rty S e rrie d n o t s Ilo o s M e N e t in c o m e C o n tin u e d F in a n c e , in s u r a n c e , r e a l e s t a t e , C o n tin u e d Pg8 M a jo r i n d u s t r i a l g ro u p s 2 / S e rv ic e - R u sh er o f r e tu r n s , a s s e ts an d l i ab i l i t i e s a s o f s o r d e f i c i t , in c o m e t a x , ( d e c l a r e d v a l u e ) SfcPiSSSSSSSSS b a la n c e s h e e ts ¡SPg£&3&&£ _ f a b l e 1 . - C o r p o r a t i o n“ o f D ecem ber 3 1 , 1959, 9 1 T a b le 1 . - C o r p o r a t i o n r e t u r n s w i t h b a l a n c e s h e e t s , 1 9 3 9 , b y m a jo r i n d u a t r i a l g r o u p s a n d b y r e t u r n s w i t h n e t in c o m e a n d w i t h n o n e t in c o m e N um ber o f r e t u r n s , a s s e t s a n d l i a b i l i t i e s a s o f D e c e m b e r 5 1 , 1 9 5 9 , o r c l o s e o f f i s c a l y e a r n e a r e s t t h e r e t o , c o m p i l e d r e c e i p t s a n d c o m p i l e d d e d u c t i o n s , c o m p i l e d n e t p r o f i t o r l o s s , n e t I n c o m e o r d e f i c i t , i n c o m e t a x ( d e c l a r e d Talus) e x c e s s - p r o f i t s t a x , t o t a l t a x , a n d d iv id e n d s p a i d - C o n tin u e d (M o n e y f i g u r e s i n t h o u s a n d s o f d o l l a r s ) M a jo r i n d u s t r i a l g ro u p s 2 / F in a n c e , in s u ra n c e , r e a l e s t a t e , O th e r c o r p o r a tio n s h o ld in g s e c u r i t i e s 6 / N e t in c o m e 1 2 3 4 5 6 7 8 9 10 11 12 15 14 15 16 17 18 19 20 21 •1 zz 25 l 24 25 h 26 27 28 29 50 31 52 35 54 55 56 37 58 59 40 41 42 45 44 45 46 47 48 49 50 51 52 55 84 N um ber o f r e t u r n s w i t h b a la n c e s h e e t s 1 / A s s e ts « C ash 6 / N o te s a n d a c c o u n ts r e c e i v a b l e ( l e s s re s e rv e f o r b ad d e b ts ) I n v e n to rie s I n v e s tm e n ts , G o v e rn m e n t o b l i g a t i o n s 9 / O th e r in v e s tm e n ts N et c a p ita l a s s e ts 1 0 / O th e r a s s e t s U / T o ta la s s e ts 1 2 / L ia b ilitie s i S A c c o u n ts p a y a b le B o n d s, n o t e s , m o rtg a g e s p a y a b le s M a tu rity l e s s th a n 1 y e a r M a t u r i t y 1 y e a r o r m o re O th e r l i a b i l i t i e s C a p ita l s to c k , p re f e r r e d C a p i t a l s t o c k , com m on S u rp lu s r e s e r v e s 1 5 / S u rp lu s a n d u n d iv id e d p r o f i t s 1 4 / L ess d e f i c i t 1 5 / T o ta l l i a b i l i t i e s 1 2 / R e c e ip ts , ta x a b le » G ro ss s a le s 1 6 / G ro ss r e c e i p t s fro m o p e r a tio n s 1 7 / In te re s t R e n ts a n d r o y a l t i e s 1 8 / N et c a p i t a l g a in IS / N et g a in , s a le o f p ro p e rty o th e r th a n c a p ita l a s s e ts 2 0 / D iv id e n d s , d o m e s tic c o r p o r a tio n s 2 1 / D iv id e n d s , f o r e i g n c o r p o r a tio n s 2 2 / O th e r r e c e i p t s R e c e ip ts , p a r t i a l l y a n d w h o lly ta x -e x e m p t: I n t e r e s t o n G o v e rn m e n t o b l i g a t i o n s s S u b je c t to e x c e s s - p r o f its ta x 2 5 / W h o lly t a x - e x e m p t 2 4 / T o t a l c o m p ile d r e c e i p t s 2 5 / D e d u c tio n s » C ost o f goods s o ld 2 6 / C o s t o f o p e r a tio n s T il C o m p e n s a tio n o f o f f i c e r s R en t p a id an b u s in e s s p r o p e r ty R e p a irs 2 8 / B ad d e b ts I n t e r e s t p a id T ax es p a id 2 9 / C o n trib u tio n s o r g i f t s 5 0 / D e p re c ia tio n D e p le tio n N et c a p ita l lo s s 1 9 / ’ N et l o s s , s a le o f p ro p e rty o th e r th a n c a p ita l a s s e ts 2 0 / O th e r d e d u c tio n s " ? ! / T o t a l c o m p ile d d e d u c tio n s C o m p ile d n e t p r o f i t o r n e t l o s s ( 5 1 l e s s 4 6 ) N e t in c o m e o r d e f i c i t X / ( 4 7 l e s s 5 0 ) In c o m e t a x ( D e c la re d v a lu e ) e x c e s s - p r o f i t s t a x T o ta l ta x C o m p ile d n e t p r o f i t l e s s t o t a l t a x ( 4 7 l e s s 5 1 ) D iv id e n d s p a id » C ash an d a s s e t s o th e r th a n c o r p o r a t i o n 's ow n s t o c k C o r p o r a t i o n 's ow n s t o c k F b r fo o tn o te s , s e e p a g e s 1 9 a n d SO . S e c u r i t y a n d c o m m o d ity exchange b ro k e rs and d e a le rs N e t in c o m e No n e t in c o m e No n e t In c o m e and le s s o rs C o m m e rc ia l c r e d i t a n d f i n a n c e c o m p a n ie s N e t in c o m e C o n tin u e d o f r e a l p r o p e r t y - C o n tin u e d I n d u s tr ia l and p e rso n a l l o a n c o m p a n ie s N e t in c o m e No n e t in c o m e No n e t in c o m e In su ra n c e c a r r i e r s , a g e n ts , e t c . O th e r f in a n c e c o m p a n ie s N e t in c o m e No n e t in c o m e N e t in c o m e No n e t in c o m e 1 ,9 7 9 1 ,1 3 2 829 1 ,1 2 7 1 ,5 6 2 932 1 ,4 5 5 572 462 1 ,1 6 3 3 ,0 7 2 3 ,1 2 4 1 1 4 6 ,9 5 8 2 2 ,6 2 7 7 4 ,3 1 4 6 0 ,2 6 5 1 8 9 ,8 9 9 1 0 ,7 4 2 5 1 ,2 4 8 2 ,7 0 8 2 1 ,5 5 2 1 5 ,5 0 0 4 6 6 ,9 5 1 1 ,0 0 2 ,8 2 3 2 3 3 7 ,9 9 5 5 ,4 0 4 1 0 5 ,8 2 7 5 ,4 0 9 ,3 6 6 8 3 ,0 7 1 5 1 ,1 6 8 4 ,1 1 7 ,7 9 0 1 5 6 ,7 4 7 309 2 3 ,7 7 3 1 ,5 9 7 ,5 7 9 2 6 ,9 5 6 1 5 ,0 0 7 1 ,8 4 2 ,9 9 7 9 5 ,5 5 2 5 4 ,6 8 1 — 5 4 ,6 7 6 628 2 ,4 4 7 1 2 ,8 0 1 1 ,9 1 7 2 ,5 4 5 5 7 ,7 2 1 2 0 ,7 1 5 547 1 ,5 2 5 7 5 ,0 1 5 5 8 ,8 4 6 4 ,1 8 6 1 8 1 ,9 8 1 7 6 ,1 2 1 485 3 ,8 0 0 1 5 4 ,7 8 7 1 0 4 ,1 5 3 1 8 ,0 4 9 5 7 2 ,8 9 4 — — 7 3 ,8 1 4 1 3 6 ,4 2 1 1 5 ,8 9 8 2 1 ,7 9 2 3 6 2 ,8 7 2 4 2 4 ,5 6 2 1 ,6 1 2 1 ,6 2 6 5 5 ,7 5 7 8 ,5 1 6 5 ,8 3 7 5 2 9 ,1 5 8 3 5 ,0 1 0 • 8 2 ,7 8 0 811 528 3 4 ,9 8 2 5 ,6 7 2 2 ,5 8 7 1 3 6 ,1 0 3 1 0 6 ,6 6 5 7 1 ,6 5 5 1 8 3 ,3 5 0 7 ,5 5 1 2 3 ,3 2 0 4 5 5 ,5 2 2 1 ,6 7 5 ,3 0 8 1 ,9 8 0 3 ,9 4 6 7 9 ,8 6 8 9 ,7 8 5 1 2 ,0 4 0 1 ,9 7 2 ,8 2 7 8 9 3 ,9 8 4 2 ,2 6 7 ,1 1 6 1 2 4 ,9 1 1 5 1 1 ,9 9 4 4 ,3 7 1 ,6 1 9 7 ,2 9 8 ,2 6 0 1 9 ,8 6 7 ,0 6 1 2 8 1 ,7 8 8 1 ,0 2 0 ,2 1 9 2 9 ,5 0 5 ,1 6 2 5 4 5 6 7 1 4 2 ,4 3 7 1 6 4 ,8 9 5 1 0 4 ,4 8 5 7 5 ,7 7 0 2 0 6 ,9 2 9 1 3 ,0 1 4 2 4 ,3 4 3 6 ,9 5 1 1 0 ,9 6 2 5 3 ,2 0 9 1 0 7 ,6 0 5 5 6 ,6 0 6 10 9 4 ,8 3 2 2 5 0 ,8 9 5 2 5 ,6 5 9 3 8 6 ,1 9 6 1 ,5 7 6 ,7 9 8 1 7 3 ,9 2 0 1 ,6 4 0 ,8 5 3 1 7 3 ,8 0 1 4 ,1 1 7 ,7 9 0 1 2 6 ,6 7 9 4 0 3 ,4 6 3 6 2 ,8 8 7 2 0 1 ,4 9 0 6 0 4 ,2 9 8 1 7 4 ,8 6 8 5 1 7 ,2 4 6 4 1 2 ,8 3 0 1 ,8 4 2 ,9 9 7 8 2 ,4 9 2 1 9 ,6 5 0 2 7 ,7 8 7 5 9 ,9 7 8 7 4 ,9 4 5 1 3 ,5 3 7 1 0 2 ,2 3 3 9 ,5 6 4 4 5 5 ,5 2 2 5 1 ,4 1 4 2 2 ,9 6 5 8 2 ,1 4 3 2 2 ,5 8 6 8 1 ,1 5 5 9 ,9 1 5 1 1 1 ,0 6 4 9 4 ,1 5 9 3 6 2 ,8 7 2 9 3 0 ,8 8 8 1 4 1 ,7 4 4 9 8 ,9 8 2 1 1 3 ,4 5 2 2 6 1 ,6 7 1 6 0 ,7 7 8 1 6 0 ,0 7 5 1 ,6 9 1 1 ,9 7 2 ,8 2 7 3 3 ,0 6 9 3 5 ,1 0 4 6 ,1 2 5 1 1 ,4 1 7 2 6 ,2 4 7 8 ,5 8 1 1 4 ,1 7 6 1 1 ,6 3 0 1 3 6 ,1 0 5 1 6 5 ,1 7 8 9 0 ,2 1 7 1 6 ,0 2 3 6 5 ,7 2 3 1 0 0 ,8 0 9 8 ,5 9 4 6 0 ,1 2 7 1 ,6 7 7 5 2 9 ,1 3 8 1 5 ,2 0 8 1 4 ,6 5 9 4 ,1 2 1 5 ,9 4 0 1 3 ,6 7 1 729 4 ,0 4 5 5 ,6 0 1 5 7 ,7 2 1 5 ,9 0 9 4 ,0 2 6 1 1 ,1 1 5 1 7 ,5 7 8 8 8 ,4 9 1 1 2 ,8 1 7 4 2 ,3 8 4 1 1 ,5 0 1 1 8 1 ,9 8 1 1 1 ,0 7 5 1 3 3 ,1 3 2 4 3 ,6 6 1 2 2 ,7 1 6 9 9 ,8 4 2 1 6 ,9 6 5 1 1 7 ,9 7 1 1 0 5 ,6 7 6 5 7 2 ,8 9 4 5 ,5 3 7 6 ,9 5 7 2 ,3 0 3 ,2 4 0 1 9 ,4 0 3 5 5 5 ,1 7 2 6 ,8 0 0 1 ,3 9 4 ,1 5 5 7 ,0 4 7 4 ,3 7 1 ,6 1 9 4 ,1 2 9 5 ,7 8 0 2 8 ,0 1 4 ,2 9 0 5 ,4 9 7 2 5 4 ,5 5 8 2 ,9 5 4 1 ,2 4 4 ,4 1 7 4 1 ,0 7 0 2 9 ,5 0 5 ,1 6 2 11 2 ,7 8 3 4 ,7 1 7 2 8 ,1 7 5 2 ,7 3 6 4 ,7 6 8 444 714 7 ,7 7 8 185 464 - — 2 ,9 9 1 9 ,4 4 3 5 ,4 3 0 248 29 1 ,7 2 8 3 6 ,9 5 1 7 1 ,1 5 9 494 155 521 5 ,1 9 6 4 ,9 7 4 126 12 4 ,2 3 5 2 ,1 4 9 426 3 1 ,5 3 0 331 447 2 ,3 3 6 5 ,5 0 2 7 ,3 0 3 479 — 3 3 ,7 1 7 1 ,9 0 5 1 ,2 6 0 1 ,1 5 4 3 ,3 4 4 1 4 5 ,3 9 6 4 0 ,2 0 0 594 231 — 5 3 ,0 9 9 2 ,5 6 4 283 769 1 ,3 3 9 ,8 3 6 4 7 ,0 9 0 1 4 ,5 5 0 2 ,1 4 0 2 4 2 ,5 8 5 7 5 4 ,6 9 6 1 7 6 ,2 5 8 1 ,1 5 9 148 1 6 1 ,0 1 7 5 ,5 6 7 2 ,0 6 5 43 4 ,9 9 2 216 837 3 1 ,3 7 1 3 ,1 2 1 31 3 ,2 5 2 9 ,8 2 6 905 11 2 ,0 5 4 223 8 ,0 6 9 140 5 ,2 9 8 26 56 (3 2 ) 556 57 1 ,0 6 9 2 ,6 6 6 74 6 ,4 1 0 41 540 276 340 3 975 265 5 4 ,4 8 7 1 ,0 2 1 5 ,9 0 9 17 2 9 ,5 4 2 709 2 ,7 1 9 25 28 27 28 1 ,7 4 5 1 ,9 4 6 2 1 5 ,6 6 7 56 507 1 6 ,2 5 7 677 1 ,9 8 7 9 7 ,1 5 5 161 1 ,3 2 5 5 2 ,2 9 6 53 16 2 0 3 ,5 6 5 4 6 1 8 ,7 6 8 26 62 1 1 4 ,5 4 5 19 43 9 ,1 1 4 51 8 4 5 ,3 9 5 42 190 1 5 ,8 9 2 1 1 ,1 6 6 1 7 ,0 8 8 1 ,4 9 3 ,3 3 0 2 9 ,0 6 1 1 8 7 ,4 8 8 1 ,4 2 5 ,8 1 4 29 2 ,1 5 7 129 7 ,5 4 5 672 209 1 ,9 3 1 1 4 ,4 3 5 5 ,5 6 1 726 1 ,1 0 5 247 1 ,1 3 1 429 11 2 ,0 2 3 235 19 5 ,3 8 8 1 4 ,8 0 9 966 (5 2 ) 257 1 519 - - ~ 1 ,5 5 1 4 ,1 7 6 6 ,8 2 6 3 ,7 8 7 112 6 ,1 7 2 1 4 ,0 0 4 3 ,4 4 4 99 770 1 27 389 555 1 ,3 0 8 481 18 1 ,4 2 9 1 ,9 8 7 293 1 87 5 ,5 5 5 777 2 ,1 6 9 397 107 147 698 977 8 2 ,1 9 5 52 52 575 1 ,1 7 2 1 ,5 4 0 305 590 1 1 ,7 4 2 3 ,1 5 8 1 ,7 4 4 2 5 ,2 5 5 22 165 - 1 2 ,2 4 4 8 ,4 1 9 4 ,1 3 9 119 4 ,2 7 6 2 ,0 0 6 2 ,0 0 7 6 507 S 4 ,4 1 2 2 ,7 6 9 1 ,5 3 8 2 ,6 2 6 569 67 3 ,4 2 9 1 ,9 1 6 467 5 170 (5 2 ) 76 • 1 5 ,9 6 8 1 8 ,0 0 5 3 ,0 6 5 68 582 2 ,2 6 5 5 ,8 1 0 84 496 2 70 2 ,9 9 8 1 ,7 2 0 1 0 ,8 3 8 3 ,6 7 4 558 1 0 ,5 8 9 2 3 ,5 9 5 5 ,8 3 9 112 1 ,9 0 0 5 45 1 6 ,5 9 1 3 5 /5 2 .5 7 8 1 6 ,1 0 6 1 ,5 1 9 2 ,2 0 3 2 ,1 3 1 4 7 ,2 1 6 505 5 ,5 0 5 5 502 1 1 ,4 6 0 3 5 /1 3 ,7 1 0 3 ,1 6 1 1 ,5 2 8 4 ,4 2 9 4 4 ,2 8 5 5 3 ,3 1 5 12 5 6 ,4 9 0 2 184 55 54 55 56 57 58 39 40 41 42 45 252 1 2 ,6 9 1 4 8 ,5 8 6 1 6 7 ,0 8 1 1 6 5 ,1 5 5 7 ,1 7 4 22 7 ,1 9 6 1 5 9 ,8 8 5 538 1 9 ,6 6 0 4 4 ,8 3 5 3 6 /2 8 ,5 9 8 3 5 /2 9 .1 0 6 1 ,2 4 7 2 6 ,9 5 9 6 6 ,5 4 4 3 6 /1 4 ,0 4 8 3 5 /1 5 .5 7 1 2 ,2 5 5 4 ,6 9 3 1 ,0 2 7 1 1 ,2 0 3 5 4 /1 .1 5 8 ,4 5 9 5 0 . , 3 5 8 , 0 6 2 3 9 ,9 6 7 3 5 /1 ,2 8 5 ,9 4 4 3 5 /1 . 5 2 8 .8 7 2 3 6 /1 0 5 ,0 5 8 2 0 9 ,3 8 6 5 6 /2 4 ,0 7 5 5 3 /2 9 2 .5 4 6 3 6 /2 4 .2 6 5 1 9 2 ,2 9 8 _ — 2 2 ,3 2 9 • • 66 _ 2 2 ,3 9 6 3 6 /1 0 5 ,0 5 8 3 6 /2 4 ,0 7 5 1 8 6 ,9 9 0 44 45 46 47 48 49 50 3 6 /2 ,7 2 5 55 4 2 ,2 0 3 8 3 ,0 2 5 3 1 ,5 2 0 5 1 ,2 5 8 4 ,9 7 4 15 4 ,9 8 7 2 6 ,5 5 5 60 4 ,3 3 9 1 0 ,9 7 2 3 6 /1 ,8 5 8 3 6 /1 .9 0 1 3 6 /1 4 ,0 4 8 48 8 0 ,5 8 9 1 4 2 ,2 9 2 6 1 ,2 7 3 6 1 ,2 5 7 9 ,0 5 6 25 9 ,0 6 1 5 2 ,2 1 2 40 7 ,8 2 0 2 1 ,4 9 1 3 6 /2 ,7 2 3 3 6 /2 .7 2 8 S g /2 8 ,5 9 8 41 3 7 ,7 9 1 8 1 ,9 4 4 1 5 ,2 1 1 1 3 ,2 2 4 1 ,7 0 7 61 1 ,7 6 8 1 3 ,4 4 3 1 4 8 ,4 6 9 584 1 ,8 1 6 42 7 ,1 3 5 152 790 - 4 6 ,5 3 1 791 453 5 18,SU 1 ,1 6 2 102 2 3 ,7 4 4 50 55 54 — • — - - am 5 15. (5 2 ) 207 - 26 • • 5 § /l,8 5 8 •j 55 2 1 ,1 3 8 5 2 ,0 8 1 1 5 ,5 1 4 1 3 ,3 0 6 1 ,9 3 5 20 1 ,9 5 4 1 1 ,5 6 0 1 1 ,5 5 4 62 1 ,1 4 0 (3 2 ) 1 0 3 ,8 0 0 828 8 8 12 15 14 15 16 17 18 19 20 21 22 25 24 SO 51 52 51 52 T a b l e 1 . - C o r p o r a t i o n r e t u r n « w i t h b a l a n c e s h e e t s , 1 9 5 9 , b y m a j o r i n d u s t r i a l g r o u p s a n d b y r e t u r n s w i t h n e t in c o m e a n d w i t h n o n e t i n c o m e l / j N um ber o f r e t u r n s , a s s e t s a n d l i a b i l i t i e s a s o f D e c e m b e r 5 1 , 1 9 3 9 , o r c l o s e o f f i s c a l y e a r n e a r e s t t h e r e t o , c o m p i l e d r e c e i p t s a n d c o m p ile d d e d u c t i o n s , c o m p i l e d n e t p r o f i t o r l o s s , n e t in c o m e o r d e f i c i t , In c o m e t a x , ( d e c l a r e d v a l u e ) e x c e s s - p r o f i t s t a x , t o t a l t a x , a n d d iv id e n d s p a i d - C o n tin u e d (M o n e y f i g u r e s i n t h o u s a n d s o f d o l l a r s ) M a jo r i n d u s t r i a l g ro u p e 2 / F in a n c e , In s u ra n c e , r e a l e s t a t e , R e a l e s t a t e , in c lu d in g le s s o r s o f b u ild in g s N e t in c o m e 1 2 5 4 5 6 7 8 9 10 11 12 15 14 - 15 16 17 IB 19 20 • ¡0 . «22 h 2S • 24 25 26 27 28 29 50 51 52 55 34 55 56 57 38 59 40 41 42 43 44 45 46 47 48 49 SO 51 52 55 54 N um ber o f r e t u r n s w i t h b a la n c e s h e e t s T j A s s e ts i C ash 8 / N o te s a n d a c c o u n ts r e c e i v a b l e ( l e s s re s e rv e f o r b ad d e b ts ) I n v e n to rie s I n v e s tm e n ts , G o v e rn m e n t o b l i g a t i o n s 9 / N et c a p ita l a s s e ts 1 0 / O th e r a s s e t s 1 1 / T o ta l a s s e ts 1 2 / L ia b ilitie s ) A c c o u n ts p a y a b le B o n d s, n o t e s , m o rtg a g e s p a y a b le « M a tu rity l e s s th a n 1 y e a r M a t u r i t y 1 y e a r o r m o re O th e r l i a b i l i t i e s C a p ita l s to c k , p re fe rre d C a p i t a l s t o c k , com m on S u rp lu s r e s e r v e s 1 5 / S u rp lu s an d u n d iv id e d p r o f i t s 1 4 / L ass d e f ic it 1 5 / T o ta l l i a b i l i t i e s 1Z j R e c e ip ts , ta x a b le i Q ro ss s a le s 1 6 / G ro s s r e c e i p t s fro m o p e r a tio n s 1 7 / In te re s t R e n ts an d r o y a l t i e s 1 8 / N et c a p i t a l g a in 1 9 /~ ^ N et g a in , s a le o f p ro p e rty o th e r th a n c a p ita l a s s e ts 2 0 / D iv id e n d s , d o m e s tic c o r p o r a tio n s 2 1 / D iv id e n d s , f o r e ig n c o r p o r a tio n s ¿ 2 7 O th e r r e c e i p t s R e c e ip ts , p a r t i a l l y a n d w h o lly ta x - e x e m p t: I n t e r e s t o n G o v e rn m e n t o b l i g a t i o n s i S u b je c t to e x c e s s - p r o f its ta x 2 3 / W h o lly t a x - e x e m p t 2 4 / T o t a l c o m p ile d r e c e i p t s 2 5 / D e d u c tio n s i C o st o f goods s o ld 2 6 / C o st o f o p e ra tio n s 2 7 / C o m p e n s a tio n o f o f f i c e r s R en t p a id on b u s in e s s p ro p e rty R e p a irs 2 § / B ad d e b ts I n t e r e s t p a id T ax es p a id 2 9 / C o n trib u tio n s o r g i f t s 5 0 / D e p re c ia tio n D e p le tio n N et c a p ita l lo s s 1 9 / N et l o s s , s a le o f p ro p e rty o th e r th a n c a p ita l a s s e ts 2 0 / O th e r d e d u c tio n s " ? ! / T o t a l c o m p ile d d e d u c tio n s C o m p ile d n e t p r o f i t o r n e t l o s s ( 3 1 l e s s 4 6 ) N e t in c o m e o r d e f i c i t 1 / ( 4 7 l e s s 5 0 ) In c o m e t a x ( D e c la re d v a lu e ) e x c e s s - p r o f i t s t a x T o ta l ta x C o m p ile d n e t p r o f i t l e s s t o t a l t a x ( 4 7 l e s s 5 1 ) D iv id e n d s p a id ! C a sh a n d a s s e t s o t h e r t h a n c o r p o r a t i o n 's ow n s t o c k I C o r p o r a t i o n » a ow n s t o c k For footnotes, see pages 19 end SO* and C o n tin u e d A g ric u ltu re , f o r e s tr y an d f is h e r y C o n s tru c tio n T o ta l a g r ic u ltu r e , f o r e s tr y , and fis h e ry F in a n c e , in s u r a n c e , r e a l e s ta te ,a n d l e s s o r s o f r e a l p ro p e rty n o t a llo c a b le L e sso rs o f r e a l p ro p e rty , e x c e p t b u ild in g s N e t in c o m e No n e t in c o m e L e s s o rs o f r e a l p r o p e r ty - C o n tin u e d N e t in c o m e No n e t in c o m e No n e t in c o m e N e t in c o m e N e t in c o m e No n e t in c o m e No n e t in c o m e A g ric u ltu re s e rv ic e s N e t in c o m e and No n e t in c o m e 2 5 ,0 6 4 5 1 ,4 2 1 1 ,5 2 0 1 ,7 3 5 2 ,7 5 0 3 ,5 0 2 5 ,2 9 1 8 ,8 7 1 2 ,4 9 1 4 ,5 5 7 2 ,3 0 5 4 ,0 5 7 1 5 9 ,2 4 9 1 5 2 ,2 0 5 5 6 ,2 0 5 9 ,5 7 4 6 7 ,9 6 7 2 4 ,8 7 9 1 0 7 ,6 5 4 5 8 ,6 2 5 3 6 ,2 6 0 1 5 ,3 8 7 3 2 ,4 8 5 1 1 ,2 1 5 2 5 0 3 ,6 0 4 5 ,0 3 5 5 6 ,7 8 7 5 5 4 ,0 8 4 4 ,6 7 2 ,0 0 0 9 4 ,1 2 4 5 ,8 4 4 ,8 8 2 5 0 4 ,0 1 4 1 8 ,5 5 1 2 2 ,5 6 1 1 ,0 2 0 ,7 1 6 8 ,0 0 6 ,6 7 5 1 9 0 ,0 0 6 9 ,9 1 4 ,3 0 5 5 6 ,5 8 7 3 ,2 9 2 1 3 ,6 6 9 1 2 6 ,7 1 8 1 ,8 8 5 ,8 8 1 4 5 ,4 2 4 2 ,1 6 5 ,5 7 5 3 4 ,3 7 1 1 ,1 4 5 811 7 5 ,3 9 0 9 0 2 ,6 9 1 4 0 ,7 7 3 1 ,0 6 4 ,7 5 5 5 6 5 ,0 1 7 2 ,1 5 6 7 7 ,9 0 9 4 9 8 ,6 8 8 1 8 0 ,7 2 7 1 5 ,8 1 5 1 ,2 0 8 ,2 5 9 2 8 0 ,9 8 8 2 ,5 0 3 2 0 ,4 9 6 5 2 6 ,7 0 7 2 3 2 ,3 2 2 2 1 ,9 5 8 1 ,1 0 9 ,8 5 5 5 5 0 ,9 7 0 7 5 ,8 2 4 3 0 ,0 9 3 9 4 ,3 1 6 1 8 9 ,4 1 7 3 3 ,5 6 9 8 6 1 ,8 2 3 1 9 7 ,9 9 1 4 4 ,9 9 2 1 1 ,0 4 0 5 9 ,9 2 2 1 3 6 ,2 7 5 1 9 ,5 5 9 5 0 8 ,2 0 3 5 1 ,2 5 1 8 6 ,9 7 1 2 5 ,8 6 1 1 7 5 ,4 8 7 4 0 5 ,7 0 1 2 4 ,0 0 1 8 0 3 ,5 3 2 4 8 ,3 6 9 5 0 ,9 2 6 4 ,2 3 5 1 0 0 ,1 8 0 4 6 3 ,7 3 6 1 7 ,2 3 3 6 9 8 ,0 6 6 4 5 ,9 9 2 8 2 ,0 9 5 2 5 ,2 5 9 1 6 5 ,6 5 9 5 5 8 ,8 2 4 1 4 ,2 0 4 7 2 2 ,5 1 5 4 0 ,2 0 5 4 9 ,5 9 9 4 ,0 2 1 8 2 ,4 7 0 5 7 0 ,2 7 1 1 4 ,5 5 5 5 7 2 ,1 1 6 5 4 5 1 5 2 ,8 8 8 1 0 5 ,8 4 0 8 4 ,5 7 5 8 4 ,6 9 7 6 7 ,5 1 3 10 11 1 6 7 8 9 2 9 5 ,1 1 9 7 6 2 ,3 0 1 2 0 ,3 2 5 6 7 ,6 5 5 6 8 ,6 5 7 1 1 1 ,9 5 9 1 6 1 ,2 6 2 1 9 9 ,2 9 1 2 ,2 0 4 ,5 1 3 1 6 4 ,5 8 2 1 6 4 ,1 9 5 1 ,8 0 5 ,2 5 9 8 5 ,5 8 6 1 ,1 9 5 ,3 5 2 2 6 6 ,5 9 3 5 ,8 4 4 ,8 8 2 5 5 1 ,6 5 2 5 ,6 3 3 ,1 2 5 6 2 5 ,6 4 7 4 0 2 ,1 7 9 2 ,4 9 4 ,2 7 8 2 1 2 ,3 8 9 1 ,5 7 9 ,7 5 8 2 ,1 4 7 ,0 2 3 9 ,9 1 4 ,5 0 5 2 4 ,4 5 3 6 0 4 ,1 8 7 5 5 ,6 4 2 1 0 9 ,4 2 5 9 7 7 ,9 8 8 5 2 ,0 9 5 4 2 7 ,0 7 7 8 5 ,5 9 3 2 ,1 6 5 ,5 7 5 3 8 ,1 7 3 4 7 5 ,2 5 4 7 2 ,7 8 5 5 4 ,4 5 9 4 0 9 ,8 4 9 9 ,4 6 6 1 9 0 ,1 9 5 2 5 3 ,0 5 9 1 ,0 6 4 ,7 5 5 7 6 ,5 7 7 1 8 4 ,5 3 0 8 1 ,7 5 9 7 3 ,2 0 7 4 3 7 ,4 9 7 5 1 ,5 9 5 5 4 5 ,4 5 5 1 1 0 ,8 1 9 1 ,2 0 8 ,2 5 9 6 5 ,8 0 2 2 5 9 ,5 8 0 4 3 ,9 1 2 1 5 6 ,6 2 2 4 2 4 ,5 7 3 4 4 ,1 7 4 2 6 1 ,8 1 5 2 5 8 ,5 8 4 1 ,1 0 9 ,8 5 3 4 3 ,7 2 2 5 3 ,7 5 8 1 2 5 ,9 7 7 5 5 ,4 0 0 2 3 1 ,2 4 9 2 5 ,6 1 8 2 2 9 ,1 4 7 2 2 ,3 0 8 8 6 1 ,8 2 3 5 6 ,8 5 9 6 1 ,4 6 6 5 9 ,0 6 0 2 8 ,7 7 5 1 8 6 ,2 9 0 7 ,4 2 5 8 3 ,9 8 5 1 0 8 ,5 3 9 5 0 8 ,2 0 3 5 4 ,3 9 9 5 8 ,9 8 6 2 1 ,2 9 1 1 5 ,7 5 3 5 8 1 ,2 4 7 2 2 ,7 2 2 2 0 1 ,7 7 8 5 6 ,4 8 5 8 0 5 ,5 3 2 6 7 ,5 4 2 1 5 7 ,1 5 5 3 6 ,8 4 4 5 4 ,9 2 9 3 5 7 ,5 1 0 5 ,5 1 1 1 7 6 ,5 0 9 2 0 1 ,6 8 7 6 9 8 ,0 6 6 3 3 ,6 8 4 5 5 ,4 5 2 1 8 ,9 1 5 1 1 ,1 0 2 5 4 8 ,1 8 8 22*056 1 7 8 ,4 7 2 5 0 ,0 2 9 7 2 2 ,5 1 5 6 4 ,2 8 9 1 5 7 ,4 1 9 2 7 ,2 4 1 2 5 ,4 9 9 2 8 9 ,0 2 2 4 ,3 9 7 1 2 1 ,8 0 6 1 6 5 ,0 7 0 5 7 2 ,1 1 6 2 4 ,5 3 6 1 4 7 ,1 6 6 1 2 ,5 5 0 5 6 8 ,4 2 7 5 ,7 2 7 2 2 ,4 6 6 1 7 2 ,0 7 2 1 3 ,6 4 1 6 9 0 ,3 7 9 3 ,7 5 1 3 ,1 3 0 8 4 ,5 9 2 1 ,0 7 6 4 5 ,6 1 0 956 576 9 ,8 4 1 785 9 ,5 0 0 595 8 ,9 4 9 3 4 ,1 8 6 1 9 ,5 9 6 1 4 ,8 1 3 5 ,3 2 1 6 ,5 8 7 9 ,7 5 6 9 ,6 9 2 9 ,2 8 2 2 ,4 6 9 3 3 5 ,3 5 7 1 ,0 6 7 ,1 5 9 1 ,8 9 5 4 ,0 5 0 893 2 4 3 ,5 0 6 4 7 4 ,2 4 3 977 5 ,4 6 5 676 5 2 0 ,9 4 7 6 7 ,5 7 1 1 ,6 0 0 5 ,5 6 6 1 ,5 8 8 1 2 9 ,8 5 4 5 4 ,5 4 9 853 5 ,4 7 0 1 ,5 4 7 2 9 2 ,1 6 5 6 5 ,7 1 7 1 ,5 8 4 5 ,1 9 7 899 1 1 8 ,5 2 8 5 0 ,5 0 7 755 5 ,2 5 6 668 1 5 ,4 5 4 1 0 ,2 9 2 123 1 5 ,0 1 4 1 0 ,8 0 7 4 ,2 1 8 52 1 8 ,8 1 7 505 2 ,5 1 3 5 1 2 ,9 8 1 227 249 12 1 ,5 8 8 1 ,1 4 5 1 2 ,9 5 8 442 5 ,5 1 9 471 5 ,2 6 3 62 2 ,7 4 2 1 ,1 7 7 5 ,7 3 3 270 1 4 ,1 9 9 676 554 74 5 ,4 7 5 466 5 ,2 6 2 1 ,5 3 3 4 ,6 7 3 208 1 ,5 5 9 15 3 ,5 7 2 236 4 ,9 7 7 1 ,5 3 1 4 ,5 1 7 157 1 , 550 15 3 ,0 2 4 25 26 27 28 845 849 7 9 6 ,9 6 4 255 427 9 5 6 ,8 6 4 274 175 1 5 1 ,5 9 1 12 18 2 2 ,8 0 4 672 1 ,7 8 0 1 0 1 ,5 8 1 179 425 4 6 ,7 0 8 423 522 1 ,4 2 9 ,4 5 9 94 150 7 2 9 ,6 6 9 770 159 4 0 9 ,7 5 5 58 175 1 7 5 ,2 1 8 758 148 5 7 5 ,5 2 8 55 171 1 5 8 ,2 8 4 29 50 51 1 6 ,9 3 3 5 5 ,6 1 8 4 7 ,5 8 8 5 7 ,6 4 9 2 6 ,8 8 4 5 ,0 8 8 1 0 2 ,8 5 0 1 1 8 ,8 6 9 353 1 0 0 ,9 9 2 289 884 1 7 ,8 1 5 6 0 ,4 9 0 4 4 ,4 1 2 5 4 ,4 4 2 5 0 ,9 9 6 1 9 ,1 8 5 2 1 3 ,5 4 1 1 9 9 ,7 1 2 168 1 5 5 ,6 8 4 294 3 ,8 4 5 2 ,1 3 9 1 ,1 4 5 2 ,7 1 1 1 ,3 9 3 1 ,0 8 1 195 2 3 ,0 6 9 1 1 ,7 5 5 56 4 ,8 8 9 1 5 ,5 8 6 89 429 569 1 ,4 1 0 357 402 986 1 3 ,3 0 9 2 ,9 7 9 5 3 ,3 4 1 3 ,7 4 5 146 8 ,7 5 5 2 ,4 0 4 1 0 ,2 8 5 2 ,0 5 1 1 ,0 3 0 2 ,2 3 4 9 ,0 6 3 6 ,1 5 2 82 5 ,2 8 5 563 492 5 ,9 8 3 1 ,8 1 2 5 ,5 2 1 1 ,2 1 2 909 1 1 ,5 2 4 1 2 ,6 1 6 4 ,4 2 7 5 3 ,5 8 2 206 823 2 6 4 ,3 5 4 8 6 6 ,2 5 9 5 8 ,8 2 3 6 ,0 9 5 8 ,8 6 0 2 ,9 0 8 4 ,1 5 9 2 0 ,0 3 3 269 2 6 ,4 3 5 81 311 1 9 7 ,6 6 1 4 1 3 ,7 8 9 5 6 ,8 9 1 5 ,2 5 3 5 ,9 0 0 6 ,5 4 8 4 ,1 4 9 1 0 ,8 5 0 49 1 2 ,5 2 2 44 367 2 3 3 ,4 9 5 1 8 ,8 5 1 1 0 ,5 2 7 1 1 ,9 8 1 6 ,4 8 7 1 ,1 7 1 4 ,9 1 0 8 ,7 4 8 55 1 5 ,7 0 6 807 130 1 0 4 ,4 0 7 2 1 ,0 9 3 7 ,8 5 3 2 ,4 8 9 2 ,8 1 1 1 ,2 4 1 0 ,0 6 2 6 ,7 3 2 16 9 ,9 0 1 791 548 2 1 1 ,7 6 3 1 7 ,0 9 2 9 ,4 5 6 1 1 ,8 0 7 6 ,0 8 4 1 ,1 0 7 4 ,4 7 1 7 ,9 0 5 48 1 5 ,6 2 2 524 118 9 4 ,8 5 2 1 8 ,6 5 4 7 ,0 5 4 2 ,5 4 5 2 ,5 7 9 1 ,1 1 6 6 ,7 5 8 5 ,7 7 9 12 8 ,5 7 5 112 516 52 55 54 55 56 57 58 59 40 41 42 45 1 ,1 7 1 1 7 6 ,8 1 4 6 6 9 ,9 8 2 1 2 6 ,9 8 1 1 2 6 ^ 2 1 7 ,6 1 3 266 1 7 ,8 7 9 1 0 9 ,1 0 2 4 1 ,2 2 1 3 0 1 ,2 0 3 1 ,1 6 2 ,8 0 6 3 6 /2 2 5 ,9 4 2 3 5 /2 2 6 .3 7 0 1 ,4 7 3 1 0 ,0 3 4 3 8 ,9 6 4 3 6 /1 6 ,1 6 0 3 6 /1 6 .1 7 8 3 6 /2 3 .2 9 5 296 1 0 1 ,1 7 1 1 ,3 6 0 ,0 5 5 6 9 ,4 0 4 6 9 ,0 8 2 1 0 ,5 2 2 437 '1 0 , 9 5 9 5 8 ,4 4 5 648 7 1 ,6 3 4 7 6 4 ,2 8 6 3 6 /5 4 ,6 1 8 3 6 /5 4 .7 6 8 3 6 /1 6 .1 6 0 358 2 6 ,5 3 4 7 3 ,0 8 8 2 8 ,2 9 2 2 6 ,5 1 3 2 ,6 4 5 27 2 ,6 7 2 2 5 ,6 2 1 5 ,6 2 2 1 7 ,9 6 1 7 0 ,0 0 3 3 6 /2 3 ,2 9 5 3 6 /2 3 .7 2 0 3 6 /2 2 5 ,9 4 2 132 9 ,7 6 9 7 3 ,9 8 6 7 7 ,6 0 5 7 7 ,4 5 2 1 2 ,4 4 1 20 1 2 ,4 6 0 6 5 ,1 4 5 167 5 7 ,4 6 8 5 7 0 ,3 0 4 3 9 ,4 3 2 3 9 ,2 7 3 5 ,5 0 6 129 5 ,6 3 5 3 3 ,7 9 6 6 9 ,5 2 5 206 6 ,2 0 0 148 7 1 ,5 9 5 35 943 - 2 2 ,7 6 7 231 2 ,1 5 4 12 2 6 ,3 2 2 462 1 -1 9 0 • — - - — — 3 6 /3 4 .6 1 8 2 1 ,6 6 4 117 1 ,2 1 7 5 3 ,0 7 0 2 0 0 ,0 3 2 5 6 /2 4 ,8 1 4 3 6 /2 4 .9 8 7 — 3 6 /2 4 ,8 1 4 1 ,2 3 1 19 153 5 5 ,1 2 9 5 3 9 ,0 8 0 5 6 ,2 4 8 3 6 ,1 0 0 5 ,0 3 2 120 5 ,1 5 2 3 1 ,0 9 7 1 9 ,6 9 8 75 822 5 0 ,5 2 5 1 7 9 ,0 3 8 3 6 /2 0 ,7 5 4 3 6 /2 0 ,9 2 5 — — 3 g /2 0 ,7 5 4 930 19 12 15 14 IS 16 17 18 19 20 21 22 25 24 44 45 46 47 48 49 SO SI 52 55 54 T a b le 1 . - C o r p o r a t i o n r e t u r n s w i t h b a la n c e s h e e t s , 1 9 3 9 , b y m a jo r i n d u s t r i a l g ro u p s a n d b y r e t u r n s w i t h n e t In c o m e a n d w i t h n o n e t in c o m e \ / t N um ber o f r e t u r n s , a s s e t s a n d l i a b i l i t i e s a s o f D ecem b er 3 1 , 1 9 3 9 , o r c l o s e o f f i s c a l y e a r n e a r e s t t h e r e t o , c o m p ile d r e c e i p t s a n d c o m p ile d d e d u c t i o n s , c o m p ile d n e t p r o f i t o r l o s s , n e t in c o m e o r d e f i c i t , In c o m e t a x , ( d e c l a r e d T a l u s ) e x c e s s - p r o f i t s t a x , t o t a l t a x , a n d d iv id e n d s p a i d - C o n tin u e d (H o n e y f i g u r e s i n t h o u s a n d s o f d o l l a r s ) M a jo r i n d u s t r i a l g ro u p s 2 / A g ric u ltu re , f o r e s tr y , F o re s try N e t in c o m e 1 2 5 4 5 6 7 8 9 10 11 12 15 14 15 16 17 18 19 20 21 22 25 24 25 26 27 28 29 50 51 52 53 34 55 56 37 58 39 40 41 42 45 44 45 46 47 48 49 50 51 52 55 54 N u m b e r o f r e t u r n s w i t h b a l a n c e s h e e t s l’ l A s s e ts > C ash 6 / N o te s a n d a c c o u n ts r e c e i v a b l e ( l e s s r e s e rv e f o r b ad d e b ts ) In v e n to rie s I n v e s tm e n ts , G o v e rn m e n t o b l i g a t i o n s 9 / O th e r in v e s tm e n ts N et c a p ita l a s s e ts 1 0 / O th e r a s s e t s / T o ta l a s s e ts 1 2 / lia b ilitie s » A c c o u n ts p a y a b le B o n d s, n o t e s , m o rtg a g e s p a y a b le M a tu rity l e s s th a n 1 y e a r M a t u r i t y 1 y e a r o r m o re O th e r l i a b i l i t i e s C a p ita l s to c k , p re fe rre d C a p i t a l s t o c k , com m on S u rp lu s r e s e r v e s 1 5 / S u rp lu s an d u n d iv id e d p r o f i t s 1 4 / le a s d e f ic it 1 5 / T o ta l l i a b i l i t i e s 1 2 / R e c e ip ts , ta x a b le t O ro ss s a le s 1 6 / C r o s s r e c e i p t s trem o p e r a t i o n s 1 7 / In te re s t B e n ts an d r o y a l t i e s 1 8 / N e t c a p i t a l g a i n 1 9 /~ ~ ^ N et g a in , s a le o f p ro p e rty o th e r th a n c a p ita l a s s e ts 2 0 / D iv id e n d s , d o m e s tic c o r p o r a tio n s 2 1 / D iv id e n d s , f o r e ig n c o r p o r a tio n s 2 2 / O th e r r e c e i p t s R e c e ip ts , p a r t i a l l y a n d w h o lly ta x -e x e m p t I n t e r e s t o n G o v e rn m e n t o b l i g a t i o n s ! S u b je c t t o e x c e s s - p r o f its t a x 2 3 / W h o lly ta x - e x e m p t 2 4 / T o t a l c o m p ile d r e c e i p t s 2 5 / D e d u c tio n s ! C o st o f goods so ld 2 6 / C o st o f o p e ra tio n s 2 7 / C o m p e n s a tio n o f o f f i c e r s R e n t p a id o n b u s in e s s p ro p e rty R e p a irs 2 8 / B ad d e b ts I n t e r e s t p a id T ax es p a id 2 9 / C o n trib u tio n s o r g i f t s 5 0 / D e p re c ia tio n D e p le tio n N et c a p ita l lo s s 1 9 / N e t lo s s , s a le o f p ro p e rty o th e r th a n c a p ita l a s s e ts 2 0 / O th e r d e d u c tio n s S i / T o t a l c o m p ile d d e d u c tio n s C o m p ile d n e t p r o f i t o r n e t l o s s ( 3 1 l e s s 4 6 ) N e t in c o m e o r d e f i c i t 1 / ( 4 7 l e s s 5 0 ) In o o m e t a x (D e c la re d v a lu e ) e x c e s s - p r o f its t a x T o ta l ta x C o m p ile d n e t p r o f i t l e s s t o t a l t a x ( 4 7 l e s s 5 1 ) D iv id e n d s p a id ! C a s h a n d a s s e t s o t h e r t h a n c o r p o r a t i o n 's a m s to c k C o r p o ration18 own stock 11 1 1 For footnotes, see pages 19 and 20* and fis h e ry - C o n tin u e d C o n tin u e d F is h e ry No n e t in c o m e N e t in c o m e No n e t in c o m e N a tu re o f b u s in e s s n o t a llo c a b le , ex c e p t tra d e N e t in c o m e No n e t in o o m e 95 287 93 215 724 2 ,1 8 5 1 2 ,8 0 3 1 ,6 8 9 974 484 1 0 ,5 2 9 8 ,1 5 9 2 4 ,9 8 8 2 ,6 9 7 393 5 ,7 0 0 3 6 ,9 6 0 9 ,3 6 1 6 2 ,9 0 2 6 ,5 5 6 590 188 1 6 ,4 7 5 8 3 ,4 5 1 2 ,0 5 2 1 1 1 ,0 0 0 2 ,2 7 1 2 ,1 7 9 209 4 ,1 2 8 7 ,9 1 6 437 1 8 ,1 1 5 1 ,6 0 7 957 27 1 ,2 5 5 1 0 ,0 1 4 646 1 4 ,9 5 0 2 4 ,1 6 2 8 ,1 9 6 2 ,4 1 2 5 7 ,5 6 5 4 0 ,3 5 9 2 ,5 8 7 1 2 5 ,8 1 0 5 8 ,9 1 5 6 ,2 9 7 1 ,5 5 2 4 7 ,5 3 5 1 1 7 ,4 0 6 2 3 ,9 0 2 2 4 3 ,7 4 7 1 8 ,9 6 6 1 1 ,4 7 0 2 ,1 7 8 5 ,5 9 0 1 1 ,5 6 3 5 2 ,8 6 0 279 2 ,4 5 3 2 ,1 2 8 835 2 7 ,6 8 3 524 1 5 ,6 9 6 5 ,4 6 2 6 2 ,9 0 2 2 ,5 8 0 1 7 ,8 5 9 9 ,2 6 6 8 ,9 2 3 4 1 ,4 7 1 641 5 1 ,0 7 1 5 2 ,0 8 1 1 1 1 ,0 0 0 436 1 ,0 8 1 250 1 ,8 1 6 5 ,3 7 5 362 7 ,6 1 0 994 1 8 ,1 1 5 673 1 ,8 5 6 537 506 6 ,8 1 8 273 3 ,4 3 2 4 ,5 5 6 1 4 ,9 5 0 5 ,3 7 4 9 ,9 0 3 5 ,2 5 8 3 ,8 9 0 6 1 ,6 0 2 2 ,5 2 0 4 7 ,0 3 4 2 1 ,3 3 4 1 2 5 ,8 1 0 2 7 ,2 6 1 4 1 ,4 2 1 1 8 ,4 9 7 5 5 ,5 4 2 1 9 0 ,9 4 5 4 ,1 8 2 9 4 ,9 9 4 2 0 1 ,9 5 5 2 4 3 ,7 4 7 1 0 ,4 8 5 1 ,5 9 2 189 153 676 4 ,3 9 2 1 ,1 2 7 76 175 552 1 8 ,3 0 1 2 ,2 6 2 26 36 13 7 ,1 1 4 2 ,9 1 5 5 42 147 5 5 ,2 1 0 8 ,8 8 9 765 1 ,6 9 8 706 2 2 ,6 5 1 5 ,8 9 8 589 1 ,1 4 9 256 206 257 1 184 29 8 22 (5 2 ) 308 22 29 (5 2 ) 172 40 245 1 ,1 1 1 15 1 ,5 6 7 183 280 31 844 11 2 1 5 ,5 5 6 2 1 6 ,6 4 8 1 9 2 0 ,8 7 1 1 (5 2 ) 1 0 ,2 8 6 44 52 7 0 ,0 6 4 19 14 5 1 ,6 9 5 29 SO 31 6 ,5 7 5 647 285 22 74 8 361 587 6 1 ,6 2 1 483 8 3 ,5 9 3 555 401 65 67 44 1 ,0 8 7 795 5 473 678 27 1 5 ,5 5 7 1 ,1 1 2 588 152 329 56 78 257 1 463 (5 2 ) 5 5 ,9 8 2 1 ,9 0 4 417 79 565 81 217 158 1 855 1 5 4 3 ,7 2 5 3 ,9 2 2 2 ,9 5 4 901 547 394 651 1 ,5 9 8 15 1 ,4 6 4 162 36 1 9 ,3 1 1 2 ,8 5 8 1 ,9 2 9 694 583 1 ,7 5 5 1 ,8 1 9 1 ,4 5 5 4 1 ,6 1 7 52 157 32 S3 34 35 36 57 58 59 40 41 42 45 6 867 1 1 ,5 4 7 2 ,1 8 9 2 ,1 8 7 522 6 528 1 ,8 6 1 278 1 ,4 8 7 9 ,5 5 5 3 6 /2 ,9 0 7 3 6 /2 .9 0 9 117 1 ,2 6 0 1 1 ,4 3 9 5 6 /1 ,1 5 5 3 3 /1 ,1 5 5 26 8 ,6 4 7 6 5 ,0 4 2 5 ,0 4 1 5 ,0 0 9 670 16 686 4 ,5 5 5 725 6 ,5 7 5 5 9 ,2 8 9 5 6 /7 ,5 9 6 3 6 /7 ,6 1 0 44 45 46 47 48 49 3 § /2 ,9 0 7 7 1 ,4 7 2 1 9 ,8 7 7 994 985 153 5 156 838 1 ,7 2 9 40 289 - 237 2 11 - 2,564 1 ,0 1 4 49 9 - • • • 3 6 /1 ,1 5 3 • 5 6 /7 ,5 9 6 5 4 5 6 7 8 9 10 11 12 IS 14 15 16 17 18 19 20 21 22 28 24 25 26 27 28 50 51 52 55 54 T a b le 2. - C o rp o ra tio n r e tu r n s w ith b a la n c e s h e e ts , 1 9 3 9 , b y t o t a l a s s e t s c l a s e e s t N um ber o f r e t u r n s , a s s e t s a n d l i a b i l i t i e s a e o f D ecem b er 5 1 , 1 9 5 9 , o r c l o s e o f f i s c a l y e a r n e a r e s t t h e r e t o , c o m p ile d r e c e i p t s a n d c o m p ile d d e d u c t i o n s , c o m p ile d n e t p r o f i t o r n e t l o s s , n e t in o o m e o r d e f i c i t , ln c c s M t a x , ( d e c l a r e d v a l u e ) e x c e s s - p r o f i t s t a x , t o t a l t a x , a n d d i v i d e n d s p a i d ( T o t a l a s s e t s c l a s s e s a n d M oney f i g u r e s i n th o u s a n d s o f d o l l a r s ) T o ta l a s s e ts c la s s e s 1 2 / T o ta l 1 2 5 4 5 6 7 8 9 10 11 12 15 14 15 16 17 18 19 20 21 22 25 . 24 1 25 s l 26 27 28 29 50 31 52 33 54 55 56 37 38 59 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 N um ber o f r e t u r n s w i t h b a l a n c e s h e e t s 2 / A s s e ts t C adi 8 / N o te s a n d a c c o u n ts r e c e i v a b l e ( l e s s re s e rv e f o r b ad d e b ts ) In v e n to rie s I n v e s tm e n ts , G o v e rn m e n t o b l i g a t i o n s 9 / O th e r in v e s tm e n ts N et c a p ita l a s s e ts 1 0 / O th e r a s s e t s 1 1 / T o ta l a s s e ts A S / L ia b ilitie s « A c c o u n ts p a y a b le B o n d s, n o t e s , M o rtg a g e s p a y a b le « U a tu rlty le s s th a n 1 y e a r M a t u r i t y 1 y e a r o r m o re O th e r l i a b i l i t i e s C a p ita l s to c k , p re fe rre d C a p i t a l s t o c k , com non S u rp lu s r e s e r v e s 1 5 / S u rp lu s an d u n d iv id e d p r o f i t s 1 4 / L ess d e f ic it 1 5 / T o ta l l i a b i l i t i e s 1 2 / R e c e ip ts , ta x a b le * O ro ss s a le s 1 6 / G ro ss r e c e i p t s fro m o p e r a tio n s 1 7 / In te re s t R e n ts a n d r o y a l t i e s 1 8 / N e t c a p i t a l g a i n V i/ N e t g a in , s a le o f p r o p e r ty o th e r th a n c a p ita l a s s e ts 2 0 / D iv id e n d s , d o m e s tic c o r p o r a tio n s 2 1 / D iv id e n d s , f o r e i g n c o r p o r a tio n s 2 2 / O th e r r e c e i p t s R e c e i p t s , p a r t i a l l y a n d w h o lly ta x -e x e m p t« I n t e r e s t o n G ove m i e n t o b lig a tio n s « S u b je c t to e x c e s s - p r o f its t a x 2 5 / W h o lly ta x - e x e m p t 2 4 / T o ta l c o m p ile d r e c e i p t s 2 5 / D e d u c tio n s « C o st o f g o o d s s o ld 2 6 / C o st o f o p e ra tio n s 2 7 / C o m p e n s a tio n o f o f f i c e r s 3 5 / R en t p a id on b u s in e s s p ro p e rty R e p a irs 2 8 / B ad d e b ts I n t e r e s t p a id T ax es p a id 2 9 / C o n trib u tio n s o r g i f t s 5 0 / D e p re c ia tio n D e p le tio n N et c a p ita l lo s s ¿ 2 / N e t l o s s , s a le o f p r o p e r ty o th e r th a n c a p ita l a s s e ts 2 0 / O th e r d e d u c tio n s 5 1 / $ 4 / T o ta l c o m p ile d d e d u c tio n s 5 5 / C o m p ile d n e t p r o f i t o r n e t l o s s ( 3 1 l e s s 4 6 ) N e t in c o m e o r d e f i c i t A / ( 4 7 l e s s 3 0 ) In co m e t a x (D e c la re d v a lu e ) e x c e s s - p r o f i t s t a x T o ta l ta x C o e p ile d n e t p r o f i t l e s s t o t a l t a x (4 7 l e s s 5 1) D iv id e n d s p a id « C ash an d a s s e t s o th e r th a n c o r p o r a t i o n 's o u n s to c k C o r p o r a t i o n 's ow n s t o c k T o r f o o t n o t e s , s e e p a g e s 19 and 2 0 - U n d er 50 SO u n d e r 1 0 0 100 u n d er 250 250 u n d e r 500 500 u n d e r 1 ,0 0 0 1 ,0 0 0 u n d e r 5 ,0 0 0 5 ,0 0 0 u n d e r 1 0 ,0 0 0 1 0 ,0 0 0 u n d e r 5 0 ,0 0 0 5 0 ,0 0 0 u n d e r 1 0 0 ,0 0 0 1 0 0 ,0 0 0 a n d over 4 1 2 ,7 5 9 2 2 6 ,8 7 7 6 0 ,2 5 6 5 8 ,1 1 9 2 7 ,4 4 7 1 7 ,2 3 2 1 7 ,5 3 7 2 ,5 3 7 2 ,2 1 7 342 595 1 5 4 ,0 5 3 ,5 5 2 3 3 6 ,6 7 5 2 7 6 ,5 4 5 6 2 2 ,3 1 8 8 1 2 ,1 6 3 1 ,2 2 7 ,5 5 5 4 ,1 4 4 ,3 5 6 2 ,0 5 1 ,3 6 8 5 ,4 8 5 ,2 6 1 2 ,4 3 8 ,1 7 5 1 6 ,6 7 9 ,1 6 2 2 5 9 ,4 5 0 ,5 1 8 1 7 ,7 1 8 ,0 9 0 2 7 ,5 5 2 ,5 4 7 8 1 ,1 5 4 ,8 9 1 1 0 0 ,2 2 6 ,0 9 7 6 ,8 4 5 ,6 1 0 3 0 6 ,8 0 1 ,3 0 6 9 6 9 ,0 1 0 7 4 3 ,5 3 8 1 2 ,5 0 9 1 8 6 ,1 5 8 1 ,7 3 9 ,2 1 8 1 5 3 ,8 4 2 4 ,1 4 0 ,9 2 7 9 3 3 ,3 8 0 6 6 1 ,3 5 5 2 3 ,3 6 4 2 4 7 ,7 5 3 2 ,0 1 1 ,2 1 6 1 3 8 ,4 3 8 4 ,2 9 2 ,0 4 8 1 ,9 2 1 ,6 7 1 1 ,2 4 5 ,9 5 5 1 2 2 ,8 6 6 7 1 5 ,7 5 4 4 ,2 8 7 ,1 9 6 2 7 4 ,5 4 9 9 ,1 8 8 ,2 8 9 2 ,0 6 4 ,0 6 5 1 ,1 3 0 ,2 8 7 2 7 9 ,5 9 2 1 ,0 2 2 ,8 9 0 4 ,0 9 1 ,6 6 0 2 4 8 ,4 0 8 9 ,6 4 8 ,8 6 6 2 ,4 8 5 ,5 0 1 1 ,2 3 9 ,7 4 7 5 5 4 ,4 7 3 1 ,5 5 9 ,9 2 1 4 ,6 9 8 ,5 5 0 2 9 0 ,0 2 5 1 2 ,0 5 5 ,5 5 2 6 ,7 7 0 ,4 4 0 5 ,1 4 0 ,2 5 5 2 ,4 2 2 ,4 3 8 6 ,4 6 4 ,8 9 7 1 2 ,4 0 4 ,4 1 2 8 0 3 ,0 7 5 3 6 ,1 4 9 ,8 5 2 2 ,7 7 2 ,9 5 5 1 ,2 4 5 ,5 7 5 1 ,3 6 4 ,0 1 0 3 ,7 9 9 ,8 0 7 5 ,9 9 2 ,1 3 2 4 0 9 ,3 3 2 1 7 ,6 1 3 ,1 6 0 6 ,1 8 6 ^ 1 4 7 5 ,0 0 6 ,8 5 3 3 ,7 4 7 ,1 2 8 1 1 ,4 0 8 ,8 2 1 1 4 ,8 8 7 ,0 7 3 1 ,0 4 3 ,8 7 4 4 5 ,7 6 7 ,1 5 7 2 ,5 2 8 ,5 6 9 1 ,3 4 3 ,6 9 8 1 ,6 6 6 ,1 7 4 5 ,7 7 1 ,5 4 7 9 ,2 4 8 ,3 8 2 7 4 4 ,0 2 2 2 5 ,7 4 0 ,5 6 5 1 2 ,8 1 8 ,9 9 9 3 ,9 6 0 ,8 3 1 1 7 ,1 6 0 ,1 9 3 4 9 ,9 7 9 ,3 8 2 4 0 ,8 6 6 ,2 7 8 2 ,7 4 0 ,0 4 5 1 4 4 ,2 0 4 ,8 9 1 3 4 5 6 7 8 9 1 4 ,5 0 5 ,7 7 1 1 ,1 3 8 ,1 6 8 7 5 5 ,2 8 9 1 ,2 8 3 ,1 8 8 9 6 8 ,2 5 8 9 8 0 ,6 1 6 2 ,2 8 9 ,2 4 5 8 9 7 ,8 4 5 1 ,9 0 5 ,0 4 7 8 4 9 ,4 8 8 3 ,4 4 2 ,6 8 3 10 8 ,0 2 7 ,0 2 9 4 9 ,3 8 8 ,1 5 6 9 8 ,0 1 6 ,5 1 9 1 7 ,2 5 5 ,3 0 2 7 3 ,4 8 1 ,9 0 4 7 ,8 4 7 ,2 3 1 5 1 ,3 0 1 ,9 8 5 1 5 ,0 2 2 ,3 9 0 3 0 6 ,8 0 1 ,3 0 6 4 7 7 ,0 5 5 7 3 5 ,U O 5 1 7 ,2 4 2 1 8 1 ,2 2 5 2 ,6 2 2 ,1 7 7 3 0 ,6 0 1 5 5 0 ,2 8 3 1 ,9 1 0 ,9 1 3 4 ,1 4 0 ,9 2 7 5 7 0 ,6 1 7 8 5 3 ,4 7 4 2 5 8 ,8 1 8 1 7 6 ,0 1 3 1 ,9 1 0 ,1 6 5 5 6 ,6 1 4 6 8 6 ,6 5 6 7 S 5 ,5 7 5 4 ,2 9 2 ,0 4 8 6 7 0 ,2 4 1 1 ,9 3 6 ,6 8 6 7 7 1 ,2 3 6 4 5 7 ,6 5 5 5 ,5 8 3 ,5 8 4 9 6 ,3 1 2 1 ,6 6 4 ,1 9 5 1 ,2 7 4 ,7 8 7 9 ,1 8 8 ,2 8 9 6 2 1 ,2 7 6 1 ,8 1 9 ,5 4 5 1 ,4 3 0 ,7 8 7 5 5 7 ,7 2 1 3 ,2 3 8 ,4 4 4 1 2 4 ,3 3 5 1 ,8 9 7 ,0 8 4 1 ,0 0 8 ,3 8 4 9 ,6 4 8 ,8 6 6 6 7 8 ,2 0 7 2 ,0 1 2 ,2 0 9 2 ,5 0 6 ,2 2 4 7 2 5 ,4 2 0 3 ,6 1 2 ,4 4 0 2 0 0 ,3 7 2 2 ,5 2 0 ,2 0 5 1 ,1 8 0 ,1 4 1 1 2 ,0 5 5 ,5 5 2 1 ,4 9 3 ,1 9 5 5 ,2 3 2 ,2 4 5 9 ,2 5 1 ,2 2 7 2 ,3 0 4 ,9 7 7 9 ,2 6 7 ,8 0 7 7 7 4 ,2 9 5 7 ,8 3 3 ,5 8 9 2 ,2 9 6 ,7 2 6 5 6 ,1 4 9 ,8 5 2 5 4 7 ,5 5 9 2 ,6 4 5 ,4 1 1 4 ,7 2 6 ,6 5 2 1 ,1 2 9 ,3 9 1 4 ,2 4 3 ,4 7 6 4 6 2 ,1 1 1 4 ,0 0 6 ,6 7 2 1 ,0 4 5 ,9 5 8 1 7 ,6 1 3 ,1 6 0 9 3 5 ,2 1 ? 6 ,9 7 1 ,8 4 4 1 2 ,8 4 0 ,8 6 6 3 ,2 8 2 ,3 4 3 1 0 ,3 6 8 ,9 8 7 1 ,5 0 8 ,5 7 0 9 ,5 4 7 ,0 4 7 1 ,5 9 0 ,7 6 5 4 5 ,7 6 7 ,1 5 7 4 1 6 ,1 7 2 5 ,2 5 2 ,3 9 4 5 ,9 7 6 ,7 5 2 1 ,9 0 5 ,8 2 4 5 ,U 7 , 560 8 9 4 ,2 4 9 4 ,0 8 1 ,8 5 3 7 5 2 ,7 0 2 2 5 ,7 4 0 ,5 6 5 1 ,8 1 7 ,5 0 9 2 1 ,9 2 9 ,4 4 2 5 9 ,9 3 7 ,5 1 4 6 ,5 3 4 ,7 5 8 2 9 ,5 1 7 ,2 6 6 3 ,7 1 9 ,7 7 1 1 8 ,5 1 4 ,4 4 1 1 ,2 0 8 ,4 3 8 1 4 4 ,2 0 4 ,8 9 1 U 12 IS 14 IS 16 17 18 19 1 0 0 ,0 5 9 ,9 4 3 2 1 ,5 6 0 ,7 2 5 2 ,4 0 5 ,2 9 5 2 ,2 0 7 ,2 5 3 2 0 5 ,8 6 0 7 ,6 3 0 ,0 2 6 1 ,7 9 5 ,0 1 1 1 4 ,8 8 7 1 5 1 ,7 8 8 7 ,3 3 0 5 ,7 4 7 ,9 0 7 9 2 1 ,7 5 1 1 5 ,6 7 8 1 3 6 ,1 5 1 4 ,2 9 6 9 ,6 7 8 ,4 3 9 1 ,4 0 9 ,6 9 3 4 8 ,1 7 1 2 7 6 ,8 5 4 7 ,9 2 9 7 ,7 8 9 ,4 9 2 1 ,1 0 7 ,2 3 8 7 1 ,7 9 1 2 2 6 ,7 9 6 7 ,4 5 3 7 ,9 5 2 ,0 6 4 9 7 0 ,3 6 8 1 0 2 ,7 8 9 2 1 6 ,9 9 4 1 1 ,0 7 1 1 7 ,6 7 5 ,2 9 2 2 ,1 7 0 ,2 8 8 3 1 5 ,2 3 5 4 1 8 ,5 9 2 5 6 ,6 9 1 6 ,4 9 9 ,2 3 3 9 9 3 ,8 7 8 1 3 1 ,6 3 6 1 5 0 ,9 8 1 1 8 ,1 7 3 1 4 ,8 9 1 ,0 6 1 5 ,1 4 1 ,9 9 4 3 0 7 ,5 6 1 2 1 5 ,O U 3 3 ,8 1 1 5 ,3 6 3 ,9 2 4 1 ,7 1 8 ,4 7 5 1 4 4 ,5 4 9 9 6 ,5 0 8 1 2 ,8 5 5 1 6 ,8 3 4 ,5 0 5 7 ,3 3 2 ,0 5 0 1 ,2 5 2 ,9 9 9 3 1 7 ,5 7 7 6 6 ,2 5 3 20 21 22 23 24 1 0 7 ,9 5 7 1 ,8 6 0 ,4 5 4 2 4 6 ,9 7 9 9 7 7 ,8 5 9 9 ,9 4 1 4 ,4 0 1 376 8 2 ,5 4 3 6 ,5 4 7 5 ,4 2 6 64 6 4 ,0 7 4 1 0 ,3 5 2 1 3 ,9 2 3 1 ,3 1 9 1 1 0 ,8 5 6 1 5 ,2 0 4 1 9 ,3 9 5 902 8 6 ,9 0 2 1 4 ,2 0 2 3 3 ,4 2 7 1 ,4 9 1 8 8 ,9 2 8 2 4 ,2 6 3 1 6 5 ,2 7 9 1 1 ,2 8 1 1 9 6 ,2 1 0 8 ,2 9 0 9 0 ,9 3 6 7 ,2 2 3 8 4 ,8 1 4 9 ,4 9 6 3 1 8 ,7 4 9 4 5 ,2 8 1 1 2 8 ,5 4 1 4 ,9 5 5 1 6 5 ,5 8 8 4 1 ,8 0 4 4 5 ,5 1 6 4 ,6 8 7 1 ,0 4 5 ,5 3 2 1 5 7 ,2 3 7 8 9 ,4 7 5 25 26 27 28 5 1 5 ,3 4 4 4 3 7 ,2 9 1 1 5 0 ,3 6 4 ,9 4 0 182 228 9 ,6 9 6 ,7 1 2 326 297 6 ,9 0 0 ,4 9 8 2 ,0 0 9 1 ,5 8 9 1 1 ,5 6 1 ,1 3 5 , 4 ,4 4 5 5 ,4 8 2 9 ,3 5 5 ,0 9 9 7 ,7 1 3 1 2 ,3 1 9 9 ,3 9 1 ,5 6 5 3 3 ,0 7 5 4 7 ,0 0 7 2 1 ,0 9 1 ,2 1 5 1 8 ,4 8 6 2 2 ,6 3 4 8 ,0 2 6 ,2 8 4 4 8 ,1 2 8 5 9 ,4 0 7 1 9 ,1 9 9 ,0 4 1 1 8 ,5 0 9 2 4 ,4 4 9 7 ,6 3 7 ,1 2 9 1 8 2 ,4 7 1 2 6 5 ,8 7 9 2 7 ,5 2 6 ,4 6 4 29 SO 31 7 6 ,0 0 7 ,0 7 0 1 0 ,8 2 0 ,8 4 7 2 ,6 2 0 ,5 1 8 1 ,5 6 0 ,1 7 1 1 ,0 7 9 ,4 9 8 6 8 5 ,7 9 4 2 ,7 2 5 ,5 0 8 3 ,9 1 5 ,6 7 2 3 0 ,2 7 1 3 ,5 7 7 ,9 0 5 4 2 6 ,9 8 9 6 0 ,8 1 9 5 ,9 2 6 ,2 2 6 1 ,0 0 0 ,5 1 1 6 1 3 ,1 0 5 3 0 2 ,5 2 8 4 4 ,1 8 4 5 3 ,4 1 6 5 4 ,2 9 5 1 5 6 ,5 3 1 1 ,3 9 5 1 3 7 ,2 5 0 4 ,2 6 0 5 ,4 3 9 4 ,5 5 6 ,2 5 1 5 2 3 ,6 6 9 5 1 6 ,7 6 1 1 1 9 ,4 9 3 5 2 ,3 7 7 3 8 ,3 3 0 5 6 ,0 9 6 1 2 2 ,3 8 5 1 ,1 1 1 1 0 8 ,2 4 4 4 ,6 0 9 3 ,3 8 2 7 ,6 3 1 ,8 7 9 8 1 3 ,5 6 9 4 3 5 ,1 9 6 1 6 0 ,4 4 7 5 8 ,6 1 8 6 2 ,1 2 9 1 1 9 ,2 1 7 2 2 8 ,0 5 4 2 ,0 7 5 1 9 6 ,4 6 7 9 ,8 0 6 8 ,2 2 2 6 ,0 6 3 ,0 4 5 6 4 7 ,2 4 9 2 8 8 ,6 9 2 1 0 6 ,4 2 0 5 8 ,3 0 9 5 2 ,0 7 6 1 1 3 ,1 9 9 2 1 6 ,1 2 9 1 ,7 7 5 1 7 6 ,7 1 6 1 2 ,7 0 3 4 ,2 8 2 6 ,1 5 6 ,1 7 5 5 1 7 ,3 0 0 2 3 3 ,9 6 3 1 0 0 ,5 5 7 6 4 ,1 2 5 5 2 ,6 6 0 1 2 9 ,7 7 3 2 3 4 ,5 6 9 2 ,0 2 9 1 9 7 ,3 0 7 1 7 ,2 5 5 5 ,2 7 3 1 5 ,5 9 7 ,6 4 3 1 ,0 1 8 ,5 9 1 3 5 8 ,8 6 1 2 1 0 ,7 0 9 1 7 2 ,2 3 1 1 1 5 ,7 6 7 3 2 3 ,6 2 7 6 1 6 ,1 0 0 5 ,8 7 4 4 9 8 ,9 3 7 6 2 ,5 9 5 1 6 ,6 8 0 4 ,7 6 9 ,7 2 4 4 0 0 ,5 8 2 9 2 ,9 1 0 7 2 ,2 5 9 8 3 ,0 7 7 5 7 ,0 2 7 1 4 9 ,2 3 3 2 6 4 ,5 9 8 2 ,6 6 8 2 2 8 ,6 7 1 5 2 ,6 3 9 4 ,6 4 2 1 0 ,9 4 6 ,0 1 6 1 ,2 8 2 ,1 8 0 1 4 8 ,5 5 6 1 5 4 ,7 7 1 2 1 1 ,3 2 2 8 5 ,4 8 5 3 7 4 ,2 6 9 5 9 8 ,6 7 2 5 ,3 3 4 5 8 8 ,3 2 6 8 2 ,5 5 9 9 ,6 6 3 3 ,8 6 7 ,2 8 6 6 4 7 ,4 7 1 4 0 ,5 4 7 7 9 ,1 7 6 7 3 ,9 9 2 3 1 ,0 4 8 2 5 7 ,6 2 5 3 5 7 ,4 8 4 2 ,U 4 2 7 6 ,1 8 8 4 4 ,1 5 2 464 1 2 ,7 1 2 ,8 7 6 3 ,9 6 9 ,7 2 5 9 1 ,9 2 6 2 5 4 ,0 1 2 2 8 1 ,2 6 5 1 3 7 ,8 5 5 1 ,1 4 8 ,1 7 6 1 ,1 2 1 ,1 5 0 5 ,8 9 8 9 6 9 ,7 9 9 1 5 6 ,4 3 2 2 ,7 7 3 82 33 34 35 36 37 38 39 40 41 42 43 1 4 5 ,7 8 8 1 9 ,6 7 2 ,0 0 1 1 2 3 ,1 2 8 ,8 5 1 7 ,2 5 6 ,0 8 9 6 ,7 9 8 ,7 9 8 1 ,2 0 2 ,0 7 0 1 5 ,5 8 7 1 ,2 1 7 ,4 5 7 6 ,0 1 8 ,6 3 2 1 6 ,5 6 7 1 ,5 0 1 ,3 0 7 9 ,8 1 7 ,0 1 3 1 6 /1 2 0 ,5 0 1 3 6 /1 2 0 ,5 2 9 1 7 ,1 6 6 1 ,0 7 6 1 8 ,2 4 2 1 7 /1 3 8 ,5 4 3 7 ,7 0 8 9 8 9 ,4 8 0 6 ,8 5 9 ,8 9 4 4 0 ,6 0 4 4 0 ,3 0 7 2 0 ,1 1 9 887 2 1 ,0 0 5 1 9 ,5 9 9 1 0 ,9 0 6 1 ,6 3 1 ,2 4 0 1 1 ,3 6 7 ,8 2 6 1 9 5 ,3 0 9 1 9 1 ,7 2 0 4 9 ,8 4 0 1 ,4 8 4 5 1 ,3 2 5 1 4 1 ,9 8 5 1 6 ,6 3 7 1 ,3 2 9 ,8 6 1 9 ,0 8 7 ,0 9 5 2 4 8 ,0 0 4 2 4 2 ,5 2 1 5 7 ,8 7 5 1 ,4 2 8 5 9 ,3 0 1 1 8 8 ,7 0 5 1 5 ,2 3 6 1 ,3 5 1 ,3 4 0 9 ,0 7 5 ,3 3 9 3 1 6 ,0 2 6 3 0 3 ,7 0 7 7 0 ,9 2 3 1 ,4 5 6 7 2 ,3 8 0 2 4 3 ,6 4 6 3 3 ,2 7 0 3 ,1 5 6 ,2 5 9 1 9 ,9 8 7 ,1 4 2 1 ,1 0 4 ,0 7 1 1 ,0 5 7 ,0 6 3 2 0 7 ,0 8 7 3 ,7 4 9 2 1 0 ,8 3 6 8 9 3 ,2 3 5 1 4 ,5 6 9 1 ,3 1 3 ,1 5 4 7 ,4 8 5 ,5 3 5 5 4 0 ,7 5 1 5 1 8 ,1 1 7 9 5 ,1 8 4 1 ,3 1 3 9 6 ,4 9 7 4 4 4 ,2 5 4 2 0 ,6 6 0 5 ,1 2 6 ,4 7 7 1 7 ,6 3 4 ,2 9 0 1 ,5 6 4 ,7 5 1 1 ,5 0 5 ,3 4 5 2 4 5 ,2 8 8 2 ,3 1 3 2 4 5 ,6 0 1 1 ,3 1 9 ,1 5 0 3 ,0 4 5 1 ,8 0 7 ,6 4 2 6 ,9 8 8 ,1 8 8 6 4 8 ,9 4 6 6 2 4 ,4 9 6 1 0 5 ,8 1 2 670 1 0 6 ,4 8 2 5 4 2 ,4 6 3 9 ,3 8 8 3 ,9 6 5 ,2 6 1 2 4 ,8 2 6 ,5 3 5 2 ,6 9 9 ,9 2 9 2 ,4 3 6 ,0 5 0 3 3 4 ,7 7 8 1 ,0 1 2 3 3 5 ,7 8 9 2 ,3 6 4 ,1 4 0 44 45 46 47 48 49 50 51 52 5 ,6 3 8 ,6 9 5 8 6 ,2 7 7 4 9 ,1 9 8 942 5 4 ,4 4 4 857 1 3 8 ,1 3 0 2 ,8 9 2 1 7 4 ,8 9 9 4 ,9 6 5 2 1 8 ,6 4 2 5 ,7 7 0 3 7 2 ,6 2 2 1 0 ,5 2 1 1 ,1 5 4 ,2 7 4 4 ,7 1 7 5 4 8 ,3 5 2 7 ,9 1 5 2 ,1 8 7 ,7 8 4 2 8 ,7 1 8 53 54 7 4 0 ,4 0 0 1 8 ,9 9 9 FOOTNOTES "Net income" or "Deficit" is the amount reported for (declared value) excessprofits tax computation (item 28, page 1, Forms 1120 and 112OA) and is equal to the difference between "Total Income" and "Total deductions" (items 14 and 27, respectively, page 1, Forms 1120 and 1120A). In general, corporations are classified industrially on the one business activity which accounts for the largest percentage of "Total receipts." Therefore, the industrial groups contain corporations not engaged exclusively in the industries in which they are classified. The indus trial classification is based on the Standard Industrial Classification, issued by the Division of Statistical Standards, Bureau of the Budget, Executive Office of the President. Includes toll roads and toll bridges which were included in "Other public utilities" for 1938, and excludes natural gas pipe lines which are included in "Other public utilities" (see note 4). Includes natural gas pipe lines which were included in "Transportation" for 1958, and excludes toll roads and toll bridges which are included in "Transportation" (see note 5). Consists of corporations who at ary time during the taxable year owned 50 percent or more of the voting stock of another corporation and whose income from such stock was 50 percent or more of the amount of dividends received. Consists of corporations (other than invest ment trusts and investment companies) who (a) at no time during the taxable year owned 50 percent or more of the voting stock of »other corporation or (b) at any time during the taxable year owned 50 percent or more of the voting stock of another corporation but whose income from such stock was less than 50 percent of the amount of dividends received. Excludes number of returns of inactive corporations and number of returns with fragmentary balance sheet data. Includes cash in till and deposits in bank. Consists of obligations of States, Territories, and political subdivisions thereof, the District of Columbia, and United States possessions; obligations of the United States; and obligations of instrumentalities of the United States. ¡10/ Unlike 1938, includes intangibles. IX/ Unlike 1938, excludes intangibles. 12/ Adjustments of assets and liabilities are made in tabulating the data, when certain conditions appear on the balance sheet, as followst (1) a negative amount reported in assets is transferred to its appropriate place under liabilities and "Total assets" and "Total liabilities" arm increased by this negative amount, (2) a deficit in surplus shown under assets is transferred to liabilities and "Total assets" and "Total liabilities" are decreased by the amount of the deficit, and (3) reserves for depreciation, depletion, and bad debts when shown under liabilities are used to reduce corresponding asset accounts and "Total assets" and "Total liabilities" are reduced by the amount of such reserves. 13/ Consists of reserves reported by corporations under the caption "Surplus reserves" (item 13, Schedule 0, page 5, Form 1120, and Schedule U, page 4, Form 1120A). w Consists of positive amounts of "Paid-in or capital surplus" and "Earned surplus and undivided profits" (items 15 and 16, Schedule 0, page 5, Form 1120 and Schedule H, page 4, Form 1120A). 15/ Consists of negative amounts of "Paid-in or capital surplus* and "Earned surplus and undivided profits" (items 15 and 16, Schedule 0, page 5, Form 1120 and Schedule M, page 4, Form 1120A). 16/ Gross sales lass returns and allowances where inventories are an income-deteraining factor. For "Cost of goods sold,” sea "Deductions." 17/ Gross receipts from operations wrhere inven toriés are not an incase-determining factor. For "Cost of operations," see "Deductions." 18/ Consists of gross amounts received. Repairs, interest, taxes, other expenses, deprecia tion, and depletion at« included in the proper deduction items. 19/ Excludes property used in trade or business of a character which is subject to the allowance for depreciation. Net capital loss is limited to $2,000, except for certain losses of banks and trust companies. 20/ Consists of net gain or loss from property used in trade or business of a character which is subject to the allowance for depreciation. - 20 - FOOTNOTES - CONTINUED 2^./ Dividends from domestic corporations sub ject to taxation under Chapter 1 of the Internal Revenue Code (column 2, Schedule 0, page 3, Form 1120 and column 2, Schedule E, page 2, Form 112OA) which is the amount used for the computation of the dividends received credit. Divi dends from corporations organized under the China Trade Act, 1922, and corpo rations entitled to the benefits of Section 251 of the Internal Revenue Code (corporations receiving a large portion of their gross income from sources with in a possession of the United States) are included in "Other receipts." 22/ Reported in column 5, Schedule G, page 3, Form 1120 and in column 3, Schedule E, page 2, Form 112QA, and not used for the computation of dividends received credit. 28/ The oo8t of incidental repairs, including labor and supplies, which do not add materially to the value of the property or appreciably prolong its life. For 1938, this item was included in "Other deductions." 291 Excludes (1) Federal income and (declared value) excess-profits taxes, (2) taxes reported in "Cost of goods sold" and "Cost of operations," and (3) income ahd profits taxes, paid to foreign countries and United States possessions, claimed as a credit against income tax. 50/ Limited to 5 percent of net income before deduction of contributions or gifts. 51/ Unlike 1938, excludes "Repairs" (see note 28). 52/ Less than $500. 23/ Consists of Interest on United States savings bonds and Treasury bonds owned in principal amount over $5,000 reported as item 8, page 1, Forms 1120 and U20A. 24/ Consists of interest on obligations of States, Territories, and political sub divisions thereof, the District of Columbia, and United States possessions; obligations of the United States issued on or before September 1, 1917, Treasury note8, Treasury bills, and Treasury certificates of indebtedness; United States savings bonds and Treasury bonds owned in principal amount of $5,000 or less; and obligations of instrumentalities of the United States. 25/ Excludes nontaxable income other than interest on tax-exempt obligations reported in Schedule P, page 5, Form 1120 and in Schedule A, page 2, Form U20A. 26/ Includes taxes which are reported in "Cost of goods sold." 27/ Includes taxes which are reported in "Cost of operations." 55/ Excludes compensation of officers of life insurance companies which file Form 1120L. 34/ Includes special deductions of life Insurance companies relating to reserve for dividends and reserve funds required by law. 35/ Includes special deductions of life insurance companies relating to reserve for dividends and reserve funds required by law, but excludes compensation of officers of life insurance companies which file Form 1120L. 36/ Compiled net loss or deficit. 57/ Compiled net loss after total tax payment. ( 2 Commission to Great Britain and Sweden in 1938, He was a member of the General Staff of the United States Army in the World War, 1917-18, serving as Assistant Director of Purchase, Storage and Traffic. Trained as an electrical engineer and now a life member of the corporation and a member of the executive com mittee of the Massachusetts Institute of Technology, from which he was graduated in 1895, Mr. Swope has devoted much attention to industrial and labor problems. He is the author of "Stabilization of Industry," published in 1931 and often referred to as "the Swope plan" of. industrial organi zation. . Secretary Morgenthau today announced the appointment , of Gerard Swope to be a Special Assistant to the Secretary < of the Treasury. Mr* Swope is to act as general adviser to the Secretary on a great variety of business problems that arise in the conduct of the Department. In accepting the position in the Treasury Department, to which he will devote his full time, Mr. Swope is resigning the Chairmanship of the New York City Housing Authority, which he has held for the last two years, and also his directorship in the National City Bank of New York. Mr. Swope,who retired as President of the General Electric Company on January 1, 1940, has long been active in public affairs. He was a member of the Industrial Advisory Board of the National Recovery Administration in 1933, first Chairman of the Business Advisory Council for the Department of Commerce, Chairman of the Coal Arbitration Board and a member of the first National Labor Board in the same year, a member of the P r e s i d e n t s Advisory Council on Social Security in 1937 and 1938 and Chairman of the Industrial Relations ; TREASURY DEPARTMENT Washington FOR RELEASE, MORNING NEWSPAPERS, Saturday, January 24, 1942._____ Press Service No. 29-gg 1/23/42 Secretary Morgenthau today announced the appointment of Gerard Swope to be a Special Assistant to the Secretary of the Treasury. Mr. Swope is to act as general adviser to the Secretary on a great variety of business problems that arise in the conduct of the Department., In accepting the position in the Treasury Department, to xirhich he will devote his full time, Mr. Swope is resigning the Chairmanship of the New York City Housing Authority, which he has held for the last two years, and also his directorship in the National City Bank of New York. Mr. Swope, who retired as President of the General Electric Company on January 1, 1940, has long been active in public affairs. He was a member of the Industrial Advisory Board of the National Recovery Administration in 1933» first Chairman of the Business Advisory Council for the Department of Commerce, Chairman of the Coal Arbitration Board and a member of the first National Labor Board in the same year, a member of the President^ Advisory Council on Social Security in 1937 an& 193$ and Chairman of the Industrial Relations Commission to Great Britain and Sweden in 193 S. He was a member of the General Staff of the United States Army in the World War, 1917-1S* serving as Assistant Director of Purchase, Storage and Traffic, Trained as an electrical engineer and now a life member of the corporation and a member of the executive committee of the Massachusetts Institute of Technology, from which he was graduated in 12>95> Mr, Swope has devoted much attention to industrial and labor problems. He is the author of “Stabilization of Industry,” published in 1931 and often referred to as “the Swope plan" of industrial organization. ~o0o- TREASURY DEPARTMENT Washington FOR IMMEDIATE RELEASE, Friday, January 23, 19^2. Press Service No. 29-^9 The Treasury, through its Division of Foreign Funds Control, announced today the denial of an application for a license to authorize the Silesian-American Corporation and its trustees to obtain a loan from European interests for the purpose of paying the Silesian-American Corporation 7$ bonds which matured on August 1, 19^1. Other applications to obtain funds from the same sources previously had been denied. ~oOo- a M c - M For Monday am’s Irving Berlin has written another song for the Treasury Department* ”1 Paid My Income Tax Today,” the copyright J3een_ of which Im M h has’/tcurned over to Secretary Morgenthau, has^jj|p> just come off the presses as a companion piece to Berlin’s "Any Bonds Today?” The Treasury’s first patriotic song was written by request. But, on a visit to Yfashington several weeks ago, Berlin learned about the Department ’s intensive preparations for unprecedented income tax -^popula r'”5! une collections this spring, and volunteered to do a/%^pg^ on the subject. ^he words of the new song are as follows: TREASURY DEPARTMENT Washington FOR RELEASE, M O R N I N G NEWSPAPERS, MONDAY, J a n u a r y 26, 19*4-2. P r e s s Se r v i c e No. 2 9 -90 I r v i n g B e r l i n h as w r i t t e n a n o t h e r song f o r the T r e a s u r y Departments "I P a i d M y I n c o m e T a x T o d a y , “ the c o p yright of w h i c h has been t u r n e d ove r to S e c r e t a r y M o r g enthau, has just come o ff the p r e s s e s as a c o m p a n i o n p i e c e to B e r l i n * s "Any B o n d s Today?" The T r e a s u r y * s first p a t r i o t i c song was w r i t t e n by request. But, on a visit to W a s h i n g t o n several weeks ago, B e r l i n l e a r n e d about the D e p a r t m e n t * s intensive p r e p a r a t i o n s for u n p r e c e d e n t e d income t a x c o l l e c t i o n s this spring, a n d v o l u n t e e r e d to do a “p o p u l a r “ tune on the subject. The words of the n e w song are as follows: VERSE I said to m y U n c l e Sam “O l d M an Taxes, h e r e I a m , “ A n d he w as g l a d to see me. Mr. Small Fry, yes indeed, L o w e r b r a o k e t s that*s my speed, B ut he was g l a d to see me, 1st CHORUS I PAID M Y INCOME TAX T O D A Y . I n e v e r felt so p r o u d before, To b e right t h ere w i t h the m i l l i o n s more W h o p a i d t h eir income t a x today, I* m s q u a r e d u p w i t h the U . S #A. Y o u see t h o s e b o m b e r s in the sky, R o c k e f e l l e r h e l p e d to b u i l d them, So did I. I P A I D M Y I N C O M E T A X TODAY. 2nd CHORUS I P A I D M Y I N C O M E T A X TODAY. A t h o u s a n d p l a n e s to b o m b Berlin. T h e y *11 all b e p a i d for, and I c h i p p e d in, That c e r t ' n l y m a k e s me feel okay, Ten t h o u s a n d m o r e and that ain*t hay! W e must pay for this w ar somehow, U n c l e Sam was w o r r i e d but h e isn*t now, I P A I D M Y I N C O M E T A X TODAY, 2. 3 rd CHORUS I P A I D M Y I N COME T A X T O D A Y . I never cared what Congress s p e n t . But n o w I *11 w a t c h over e v ’ry cent, E x a m i n e e v ’ry b i l l they pay, T h e y * 11 h a v e to let me hav e my say I w r o t e the T r e a s u r y to go slo w Careful, Mr, H e n r y Junior, t h a t ’s m y dough. I PAID MY INCOME TAX T O D A Y « oOo- m m w : 2 I Paid My Income Tax Today By IRVING BERLIN M oderately B right Bounce Tempo > { r 1 1 ..Jr f T: f é ^g “~ ^ * , 7- * | Ig y h i > .... i — ^ ---------- -- L_------------------------ fil------------------:--- ------------------- s L — —H O VOICE + > {rullar, f o r Ukulele and Banjo, Copyright 1 9 4 2 by HENRY MORGENTHAU Jr, Secretary o f the Treasury, W ashington, D. C. A ll R ights Reserved In clu d in gth e Right o f Public Performance for Profit. International Copyright Secured, Made in U. S.A. 2nd CHORUS I paid my Income Tax today, A thousand planes to bomb Berlin. They’ll a ll be paid for, and I chipped in, That cert’nly makes me feel okay. Ten thousand more and that ain’t hay! We must pay for this war somehow, Uncle Sam was worried but he isn’t now, I paid my Income Tax today. 3rd CHORUS I paid my Income Tax today, I never cared what Congress spent. But now i ’l l watch over ev ry cent, Examine ev’ry b ill they pay, They’ll have to let me have my say I wrote the Treasury to go slow Careful, Mr. Henry Junior, that’s my dough, I paid my Income Tax today. C opyright 1942 by Henry Morgenthau Jr., Secretary of the Treasury, W ashington, D.C. 1 Paid e tc . - 4 1 4 "The p r o g r a m f S H B B ^ a v o i d s d e l a y s a ll along < t h e lin e b y e x p e d i t i n g p u r c h a s e s a n d d e l i v e r i e s . ” In a d d i t i o n t o s p e e d in p u r c h a s i n g a n d delivery, Mr. M a c k s a i d t h e G o v e r n m e n t w o u l d b e n e f i t f r o m t h e stand p o i n t of p r i c e as a r e s u l t o f p l a c e m e n t o f l a r g e quantity o r d e r s at on e t i m e i n s t e a d o f s m a l l o r d e r s o v e r a p e r i o d ^ ^ J In p l a n n i n g t h e o f f i c e f u r n i t u r e p u r c h a s i n g p r o g r a m a n d i t s ope r a t i o n , J o h n M. 0 Dibrell rf~Yhn B r o w e r a n d Edwin R. of t h e W a r P r o d u c t i o n Board have been working a c t i v e l y ^ Mr. D i b r e l l ha s b e e n d e t a i l e d to t h e Division, in l a y i n g t h e g r o u n d w o r k a n d d e v e l o p i n g ___ _ li ll»l'tl* ~ 1 between the fto v er s a ' è ^ cooperation a g en o i o o a g i « t h e D i v i s i o n ^ - - ^ — -oOo- ( £ a n d assisted ...I....... , ^ ¿T© v e'h o tn&ydk 6- 1/23/42 on. ^ •*- 4 3 1. Obtaining estimates of requirements of the armed services and Executive departmentsy and agencies for a six-month period. 2. Broadening of specifications for wooden desks and files formerly purchased, retaining a satis factory standard of quality which can be made by most manufacturers in the industry. 3. R evision of normal purchasing procedure and eliminating all possible routine to permit placement of orders received from the services on the day on which they arrive. 4* Setting up within the D i ^ i o n o f a control p l a n w h i c h sets f o r t h t h e a m o u n t o f p r o d u c t i o n each m a n u f a c t u r e r is a b l e to d e v o t e t o G o v e r n m e n t a l orders, f o r w h i c h h e h a s r e c e i v e d a n award. an d Thi s a l l o c a t i o n p r o g r a m p r o v i d e s an o p p o r t u n i t y to s p r e a d t h e p u r c h a s e orders f o r o f f i c e f u r n i t u r e as w i d e l y as p o s s i b l e a m o n g qualified manufacturers. c o m m e n t i n g on t h i s s t r e a m l i n e d b u y i n g technique, P r o c u r e m e n t D i r e c t o r C l i f t o n E. M a c k d e c l a r e d tha t speed is its essence. "A r e q u i s i t i o n f r o m t h e A r m y o r N a v y or a n y o t h e r F e d e r a l a g e n c y in e f f e c t w i l l be n o w a r e q u i s i t i o n f or m e r c h a n d i s e w h i c h is a c t u a l l y on t h e p r o d u c t i o n line a n d in t h e p r o c e s s of b e i n g t u r n e d o x r t J ' & 2 c i e n t l y b r o a d e n e d t o m a k e p o s s i b l e t h e p r o c u r e m e n t of a r t i c l e s o f a s a t i s f a c t o r y s t a n d a r d of q u a l i t y w h i c h c o u l d b e p r o d u c e d by m o s t o f t h e m a n u f a c t u r e r s in t h e i n d u stry. A l t h o u g h c o n t r a c t s w i l l b e a w a r d e d on a c o m p e t i t i v e basis, orders will be spread through the in dustry to take full advantage of existing facilities)^ Ì p i’ogi"gg^miiCTi"T5r' m r a i i u iti u r flyui'ecaYy'iTOTgdflTmtrs olfeey / ^ To e f fect r e q u i r e d c o n s e r v a t i o n of m e tals c r i t i c a l l y needed, e s p e c i a l l y steel, w o o d is b e i n g su b s t i t u t e d w h e r e v e r p o s s i b l e i n b u y i n g o f f i c e furniture. Thi s is i n l i n e w i t h d i r e c t i v e s o f t h e Army, N a v y and t h e O f f i c e o f P r o d u c t i o n M a n a g e m e n t to m i n i m i z e t h e c o n s u m p t i o n of m a t e r i a l s e s s e n t i a l to t h e p r o s e c u t i o n of t h e war. C o n c u r r e n t l y w i t h t h e c a l l i n g fo r q u o t a t i o n s on w o o d files, w o r k was g o i n g a h e a d on m e e t i n g r e q u i r e m e n t s o f w o o d chairs. estimated A t a m e e t i n g h e l d here, c h a i r m a n u f a c t u r e r s w e r e t o l d of n e w s p e c i f i c a t i o n s and w e r e a s k e d for s u g g e s t i o n s . S t eps t o s p e e d p r o c u r e m e n t of o f f i c e furniture a n d to a v o i d u n n e c e s s a r y c o m p l i c a t i o n s w i t h i n agencies o f t h e G o v e r n m e n t t h e m s e l v e s were; Moving quickly to speed purchases, the T r e a s u r y fs P r o c u r e m e n t D i v i s i o n p r e p a r e d t o d a y to place with wood office furniture manufacturers w h i c h before t h e year-end may exceed their 1939 orders sales of $48,000,000. Into this operation went the D i v i s i o n s new s t r e a m l i n e d b u y i n g t e c h n i q u e to d e l i v e r y of office furniture urgently required by t he armed ser vices and other Federal agencies. One of t he first steps in t h e h u g e f u r n i t u r e b u y i n g p r o g r a m w a s t h e c a l l last w e e k f o r q u o t a t i o n s on approximately 150,000 the Government, w o o d f i les to m e e t t h e n e e d s of p a r t i c u l a r l y t h e m i l i t a r y forces, the next six months. for Q u o t a t i o n s a n d o t h e r info r m a t i o n r e q u e s t e d w i l l be t h e b a sis "for t h e a w a r d o f contracts. Under authority granted by the President, is ¿-empowered t o m a k e p u r c h a s e s t h e Di v i s i o n b y d i r e c t n e g o t iation, b y s i m p l y w r i t i n g o r t e l e p h o n i n g m a n u f a c t u r e r s f or prices on s p e c i f i e d a r t i c l e s . S i n c e G o v e r n m e n t a l r e q u i r e m e n t s f o r o f f i c e furniture for 1942 w i 11 u n a u u b U u d l y ^ e x c e e d t h e s a l e s of the e n t i r e i n d u s t r y in 1939, s p e c i f i c a t i o n s a r e b e i n g suffi- TREASURY DEPARTMENT Washington. FOR RELEASE, M O R N I N G NEWSPAPERS, Monday, J a n u a r y 26, 19^-2. P r ess S e r vice No. 29-91 Moving quickly to speed purchases, the Treasury’s Procure- ment Division Prepared today to place with wood office furniture manufacturers orders which before the year-end may exceed their 1939 sales of $4-8, 000, 000. Into this o p e r a t i o n w ent the D i v i s i o n ’s n e w s t r e a m l i n e d b u y i n g t e c h n i q u e to exped i t e d e l i v e r y of o f f i c e f u r n i t u r e u r g e n t l y r e q u i r e d b y the a r m e d services and other F e d e r a l agencies. On e of the first steps in the h u g e f u r n i t u r e b u y i n g p r o g r a m was the call last w e e k for q u o t ations on a p p r o x i m a t e l y 150,000 w o o d files to mee t the n e e d s of the Government, p a r t i c u l a r l y the m i l i t a r y forces, for the next s ix months. Q u o t a t i o n s a n d o t her i n f o r m a t i o n r e o u e s t e d will b e the b a s i s fo r t he a w a r d of c o n t r a c t s U n d e r a u t h o r i t y g r a n t e d b y the President, the D i v i s i o n is n o w em p o w e r e d to m a k e p u r c h a s e s by direct negotiation, by s i m p l y w r i t ing or t e l e p h o n i n g m a n u f a c t u r e r s for p r i c e s on s p e c i f i e d articles. S i nce G o v e r n m e n t a l requirements for o f f i c e f u r n i t u r e for are expected to exceed the sales of the entire industry in 1 9 3 9 » specifications are being sufficiently broadened to make possible the procurement of articles of a satisfactory standard of quality which could be produced by most of the manufacturers in the industry. Although contracts will be awarded on a com petitive basis, orders will be spread through the industry to take full advantage of existing facilities. To effect r e q u i r e d c o n s e r v a t i o n of m e tals c r i t i c a l l y needed, e s p e c i a l l y steel, w o o d is b e i n g s u b s t i t u t e d w h e r e v e r p o s s i b l e in b u y i n g o f f i c e f urniture. This is in line w i t h d i r e c t i v e s of the Army, N a v y and O f f i c e of P r o d u c t i o n M a n a g e m e n t to m i n i m i z e the c o n s u m p t i o n of m a t e r i a l s ess e n t i a l to the p r o s e c u t i o n of the war. C o n c u r r e n t l y w i t h the c a l l i n g for q u o t a t i o n s on w o o d files, w o r k was g o i n g a h e a d on m e e t i n g e s t i m a t e d r e q u i r e m e n t s of w o o d chairs. At a m e e t i n g h e l d here, c h air m a n u f a c t u r e r s w ere tol d of n e w s p e c i f i c a t i o n s and w e r e a s k e d for suggestions. Steps to s p e e d p r o c u r e m e n t of o f f i c e f u r n i t u r e and to a v o i d u n n e c e s s a r y c o m p l i c a t i o n s w i t h i n a g e n c i e s of the G o v e r n m e n t t h e m selves w e r e ’ . 2. 1 . O b t a i n i n g est i m a t e s of r e q u i r e m e n t s of the a r m e d services an d E x e c u t i v e d e p a r t m e n t s and a g e n c i e s for a s i x - m o n t h period. 2. B r o a d e n i n g of s p e c i f i c a t i o n s for w o o d e n d e s k s and files f o r m e r l y purchased,-, r e t a i n i n g a s a t i s f a c t o r y s t a n d a r d of q u a l i t y w h i c h can be m a d e b y most m a n u f a c t u r e r s in the industry f- 3. R e v i s i o n of n o r m a l p u r c h a s i n g p r o c e d u r e and e l i m i n a t i n g all p o s s i b l e r o u t i n e to p e r m i t p l a c e m e n t of orders r e c e i v e d from the services on the day on w h i c h they arrive. k. S e t ting up w i t h i n the D i v i s i o n of a c o n trol p lan w h i c h sets f o rth the amount of p r o d u c t i o n each m a n u f a c t u r e r is able to d e v o t e to G o v e r n m e n t a l orders, a n d for w h i c h he h a s r e c e i v e d an award. This a l l o c a t i o n p r o g r a m p r o v i d e s an o p p o r t u n i t y to s p read the p u r c h a s e o r d e r s for o f f i c e f u r n i t u r e as w i d e l y as p o s s i b l e among qualified manufacturers. C o m m e n t i n g on this s t r e a m l i n e d b u y i n g technique, P r o c u r e m e n t D i r e c t o r C l i f t o n E. M a c k d e c l a r e d that s p e e d is its essence, "A r e q u i s i t i o n f r o m the A r m y or Nav y or any o t her Federal agency in effect wil l be n o w a r e q u i s i t i o n for m e r c h a n d i s e w h i c h is a c t u a l l y on the p r o d u c t i o n lin e and in the p r o c e s s of b e i n g t u r n e d o u t , “ he said. “The p r o g r a m a v o i d s d e lays all a l o n g the line b y e x p e d i t i n g p u r c h a s e s and d e l i v e r i e s . “ In a d d i t i o n to s p e e d in p u r c h a s i n g and delivery, Mr. M a c k said the Gove r n m e n t w o u l d b e n e f i t f r o m the stan d p o i n t of p r i c e as a result of p l a c e m e n t of l a r g e q u a n t i t y orders at one time i n s t e a d of small o r d e r s o v e r a p e r i o d of months. In p l a n n i n g the o f f i c e f u r n i t u r e p u r c h a s i n g p r o g r a m an d its operation, J o h n M, B r o w e r and E d w i n R. D i brell o f the W a r P r o d u c t i o n B o a r d h a v e b e e n w o r k i n g a c t i v e l y w i t h the T r e a s u r y P r o curement Division, Mr, D i b r e l l has b e e n d e t a i l e d to the Division, a nd a s s i s t e d in l a y i n g the g r o u n d w o r k and d e v e l o p i n g close c o o p e r a tion b e t w e e n the D i v i s i o n a nd o t h e r G o v e r n m e n t agencies, -oOo- The women of America who have glorified our past and prayed for our future will respond to the needs of the day as American women have always answered their country's call. (Air fathers handed down to us from their fathers a mighty nation, strong and united, fearing no enemy, bowing to no master, and yielding to no force. we are the temporary trustees of this proud inheritance. It is for us to pass it on to (hit children as we received it — » strong and free. This we shall do. I 3 These taxes sill soon be increased to all-out proportions* They will impose Sjcriflees on everyjom os* Yet we welcome them because we are resolved to profit from the examples of those other peoples who taxed them selves too little and too late — and who lost all* Let us remember that today taxes serve a vital purpose* the purpose of self preservation, the purpose of preserving the American concept of freedomt Freedom of Speech, Freedom at worship, Freedom from Want, and Freedom fro® Fear* No one knows how long this war will last* But of this much I am sure: Whether it lasts two years or five, those years will see America at its best* Men will fight and die for those principles that have made America worth living in and worth dying for* From these figures you css judge whether a sales tax Is nece^^ary to bring hose to our people the necessity and the cost of bringing our enemies to their knees. I have talked to you at such length about the sales tax because I look upon It as the start of a vicious spiral of rising prices. I know that you* who ara leaders of your communities, can warn every household in the country against this threat. And I earnestly hope that you will do so. Speedy and extensive discussion by the women of America will make our country increasingly awars of its dangers* In conclusion, I want to ask you to think of the United States as your home — as the very house in which you and your family live their lives. If you lose it, you loseererythlng. the taxes you pay now are literally to secure protection and to pay insurance on your own home. s. These Higher wages would mean higher prices for the goods you buy would go up and up and up* the line* causing higher still more Another argument advanced for a sales tax Is that it would give all the people an opportunity to contribute directly to tide nation’s war we believe they now have this opportunity* a married couple without $34*50 a week pays an Income tax* Surely we do nol wish to impose taxes on in 1940 - 7#b0O»i \ in 1941 - 15*200*000 tax returns In 1942 - 22*000*000 tax returns t surely these figures opportunity to contribute to that all the fe 10 In varying «ays and degreis, tha same thing Is true of tha medicine that you buy at the drug store and the food from the butcher or grocer. The price Is higher, even if nominally there's no sales tax added to these exempted articles. Some sales tax advocates suggest that it be levied on manufacturers or wholesalers instead of retailers. I'll grant that this would simplify the administration of the tax. disadvantages. But it also has its Let's take a carpet, example. The wholesaler pays the tax when he buys from the manufacturer. Naturally he adds that tax-plus something for profit on the tax — when he sells to tha retailer. Then the retailer does exactly the same thing when he sells the carpet to you. lhat's tin result? instead of one — Tou pay two price increases and each increase is larger than the amount of the tax. Any type of sales tax will increase the cost of living and make effective price control exceedingly difficult if not in fact impossible. The increased cost in living would cause labor to seek and obtain c \ - CL, adds those taxes, plus something for profit, onto the sales price of the clothes which he made. And when you or your husband buy those clothes, you pay an Increased price for them even if it isn't marked on the ticket as a sales tax. Federal^State-aad^local tax load is already out of proportion with that of their economically sore fortunate fellows* Some people who favor the sales tax believe that its oppressive result on the poor can be avoided by exempting food, clothing and medicines* But let me point out that under our war program a preponderant part of our civilian production is going to be in these very essentials* If they are excluded from the tax, there won*t be very much left to tax* If they are not excluded, the burden of the tax falls too heavily on those who can least afford to pay it the individuals living on $14*50 a week* As a matter of fact, even if it were feasible to exempt certain necessities, I very much question whether the exemption would prevent price increases in these articles* For example, take the case of a clothing manufacturer* He would pay a sales tax on the materials he bought and on :' %'■ ... his machines* These added taxes constitute for him another cost of doing business and naturally, like any businessman, he wants to earn a profit on this additional investment. So he We know also that a sale« tax would be a difficult and expensive tax to collect# whereas increases in the rates of existing taxes would not require more than a nominal increase in administrative costs* The federal government already has the machinery set up and in action for collecting the other kinds of taxes# But we have no machinery set up# no mm trained for collecting a sales tax* 1® should have to establish a whole new tax organisation different from and in addition to our existing tax organisation* That is a big job* the expense of which would eat heavily into the m tim r slim revenue that a moderate sales tax would bring into the Treasury* We also feel that a sales tax Is undesirable because it works a disproportionate hardship on the low-income group® who are least able to stand it — the people who spend substantially all their income on the very necessities of life* The Treasury believes that# insofar^) as possible, it is sound policy to guard against dispro portionate increases in the tax burden on these low-income groups* There is much evidence that their combined 7 our total additional tax noads — $7 billion. WW 0 41 T M s Increase is due partly to increased production and higher national income — and partly to tax legisla tion enacted by a courageous Congress during the last two years« But we cannot hope that a national income already at the $100 much farther. Further government income must be billion level will continue to rise primarily from new taxes and higher tax rates. This will not be easy on any of us, but it can be And ‘ done, - M t we all know that this is no time to oomplain of tax burdens when so »any Americans are contributing all their energies and even their lives to the Nation's great task. Tiia 5S2SL®* America arrange the You spend the family money. and what to do without. family budgets. You decide what to have You decide how much is to be taken out of each pay envelope or salary chock and put away for savings — and taxes. So on behalf of your Government, I ask you, as the leaders of the women of America, to cooperate b y seeing to it that Income taxes are paid promptly. And I cannot urge you too strongly to persuade your members everywhere to pay entirely with borrowed money would be merely to postpone the day of reckoning* Tax«« may seem painfult In reality they are relatively painless* For *31 other method® of paying for the war mean the accumulation of a debt to burden America for decades to come* They .mean a heavy and continuing cost in the future* but no smaller hardship now« haphazard ri *' They mean a ; planned distribution of the The task before us is unparalleled* War expenditures alone in the coming fiscal year will be $36*000*000*000* That is more than the combined Federal Government expenditures for all purposes in the six year® from 1936 through 1940* For tunately we have made a start toward meeting this tremendous cost* The Federal Government,s receipts will have more than tripled in the space of three years| rising from $5,303*000*000 in fiscal 1940* to an estimated $17*861*000*000 in fiscal 1943 under existing ■ W W IIinrin iMfii i H iin l n J I i i tax LAWS k to control the rising course of prices and keep the cost of living within reasonable bounds* You women who are the economists and the purchasing agents of the families of the nation don't need any argument from me to convince you how important that is* You've already seen the price of almost everything you buy start upward. You are paying more today — for the food on considerably more — your family's table and the clothes on your family's backs than you did a year ago* You have seen the coat of living increase more than*10& in the last year* This is serious, but a far greater increase impends unless we can prevent it* one of our best weapons against this very real war-tine danger is to pay for the war as little as possible on credit, as much as possible with cash. And that means TAXES. *■ J 5 sore of them than they can put Into the air. W® are going to win it with stronger, heavier tanks — with bigger guns — with more battleships and cruisers and destroyers and submarines* We are going to win with millions of soldiers and sailors better trained, better fed, better clothed, and better armed than our enemies* And we are going to win with the bravery and sacrifice and faith of a hundred and thirty million free people laboring as one to "secure the blessing of liberty to ourselves and to our posterity". It is our Job in the Treasury to raise the money to finance this titanic effort* require a great deal of money. It will But no American questions that it is worth a very high price and very great sacrifice to preserve our civilization. Part of the cost of war will be financed by borrowing. That is, by the sale of bonds which must be repaid in years of peace. But, insofar as is possible, we should pay for this tot as we go along. When we do this we help 2 And so it is eminently proper that you thoughtful« earnest citizens« who have grown up in the free air of our democracy« should thus draw closer to your government in a time if crisis and anxiety« to consult with us who are« in a very real sense« your servants. This is a tJJm of crisis* Through no fault of its own. America is again engaged in a great war to determine whether this nation or any nation dedicated to freedom can endure. The tragic fate of Austria« Czechoslovakia« Poland« Denmark« and Norway ~~ of Luxembourg, Holland, Belgium and France — of Roumanla, Bulgaria, Yugoslavia, Albania and Greece — * warns us of the penalty of losing. But we are not going to lose, we are going to win this war. We are going to win it with bigger and faster P&anes than the enemy has, and scores of thousands I m honored that you have asked rae to speak to you at this most momentous meeting In all the history of the General Federation of women’s Clubs. More than that, 1 am grateful for the opportunity to discuss with you national problems of great Importance* We at the Treasury have a message which we believe ought to bo delivered to every woman In the United States, fe hope that as representative women of the nation you will carry this message to your membership In every city and town and village. America has demonstrated a capacity for self-government unequalled in any age or In any nation. Part and parcel of that ability to govern ourselves, without dictation from super-parties or supermen, is the American tradition that no proPlea of government is the exclusive concern of any officer of government — but rather that it is the common problem of every citizen. -2- And so it is eminently proper that you thoughtful, earnest citizens, who have grown up in the free air of our democracy, should thus draw closer to your government in a time of crisis and anxiety, to consult with us who are, in a very real sense, your servants. This .is a time of crisis. Through no fault of its own, America is again engaged in a great war to determine whether this nation or any nation dedicated to freedom can endure. The tragic fate of Austria, Czechoslovakia, Poland, Denmark and Norway — of Luxembourg, Holland, Belgium and France — of Roumania, Bulgaria, Yougoslavia, Albania and Greece — warns us of the penalty of losing. are not going to lose. We are going to win this war. We are going to win it with bigger and faster planes than the enemy has, and scores of thousands more of them than they can put into the air. We are going to win it with stronger, heavier tanks — 'Vnx^CT'JL with bigger guns — with^battleships and cruisers and ^destroyers and submarines. We are going to win with millions of soldiers and sailors better trained, better fed, better clothed, and better armed than thair enemies. And we are going to win with the bravery and sacrifice and faith of a hundred and thirty million free people laboring as one to Hsecure the blessing of liberty to ourselves and to our posterity". -3- It is our job in the Treasury to raise the money to finance this titanic effort* It will require a great deal of Part of the cost of war will be financed by borrowing* That is, by the sale of bonds which must be repaid in years of peace* But, insofar as is possible, we should pay for this war as we go along. When course of prices and keep the cost of living 4 m m within reasonable bounds. You women who are the economists and the purchasing agents of the families of the nation don't need any argument from me to convince you how important that is* You've already seen the price of almost everything you buy start upward. XQJiim^aeen 8u g a r g O jT ^ r -T if’te e»- pounds; fronriT^nro^gjr ^ -fr o m You.- are p a y i n g mor e t o d a y — c o n s i d e r a b l y m o r e — for the f o o d on y o u r family's table a n d the c l o t h e s d i d a y e a r a g o . / ^ S o far ,this • on y o u r f a m i l y ' s b a c k s than you 1-g— not-y-eryngeri^a-— b ut One of our best weapons against this very real war-time danger is to pay for the war as little as possible on credit, as much as possible with cash. And that means TAXES -3- It is our job in the Treasury to raise the money to finance this titanic effort* money* It will require a great deal of But no American questions that it is worth a verv hicrh price^to flcftve i our futtirn for ourocilvoo* pAJb&ii/NAj*^ ^ a . Part of the cost of war will be financed by borrowing* That is, by the sale of bonds which must be repaid in years of peace* But, inaofar as is possible, we should pay for this war as we go along. And that means TAXES. as we go along. When we do this we control the rising eoure« of prices and keep the cost of living t e bounds. within reasonable You women who are the economists and the purchasing agents of the families of the nation don't need any argument from me to convince you how important that is. You've already seen the price of almost everything you buy start upward. 1Yft paf.o4;nan s ugar from jtffflp ^ 8; ^ You.- are paying more today— considerably more— for the food on your family's table and the clothes on your family's backs than you did a year ago./Kjlo far .thlo 1 b net very TTtrrlbuQ. but ik-ls threatajai*g. One of our best weapons against this very real war-time danger is to pay for the war as little as possible on credit, as much as possible with cash. And that means TAXES* V (s\ u a , \*r\ r*. Draft for an a before the ant Secretary Sullivan Lon of Women*s Clubs January 26, 1942 * * * * * * * * * I am honored that you have asked me to speak to you at Federation of Women*s Clubs* More than that, I am grateful for the opportunity to discuss with you national problems ot great importance. We at the Treasury have a message which we bell ' *> to be delivered to every woman in the United State ;es. 3fett_the un*iSL representative^of the nation*»' yommi, carry fciaett message to your membership in every city and town and village. America has demonstrated a capacity for self-government unequalled in any age or in any nation. Part and parcel of that ability to govern ourselves, without dictation from super parties or supermen, is the American tradition that no problem of government is the exclusive concern of any officer of government -- but rather that it is the common problem of every citizen. ^ A , O p u ^ i TREASURY DEPARTANT ? Washington 1 (/ Press Service No. FOR RELEASE f AFTERNOON NEWSPAPERS, __Tii g s Q ^ Cx^^^ar: "S"wpt omb»1*■■30, "4£4rK M r (The following address by John L. Sullivan, Assistant Secretary, before the l rtmi?1 ■..Nornting■<)f 1the1 — -- . p^r \ n 11 | |■^r^ri rf Tnrm °~nn 1 . a í * * n t is scheduled for delivery at IS.GO-yxm., Oeia t r c ^ Standard Time, t W Tuo□flayy September SO, lOhlb» ), r T M 1 '' T ! mi b U pii»....IM»‘ friuuu ¿ I'trt!. / ¿fej ' f |II iw ij/i r rrn nf Plfìfìting W j J t hr-¥^ l/am especially grateful for the/opportunity to discussy^tl you intergovernmental tax relations. Scarcely a day^asseA fin our tax work at the Treas/ry that Federal-Stater relations in some a r o O f taxation da^iot come up for consideration, "hey will /doubtless require even more attrition as defense financing efforts k^ep /ace with o u r g r o w i n g needs. The Treasury is M v i n p the pu^Plem of tax coordination extensive study Jus* nnw hnd ^propose here to outline the general point of vi si f-pom^nrlvs^h we are approaching the as ’’putting int 11 Tne die •J- vr\9: subject. harmonious relat/ori^ and that anu uucil we! uo^; our objective: harmonious heiaifionship among Federal, Stìnte, and municipal / x ] Av / taxing and fiscal operations. / In stri/ing for that goal w| cannot ignore the historical \ / d W e l o p m e n y of our political institutions. \ I Because of thi j background there may be instances where the attaining m m V _ U A ..i j _ , TREASURY DEPARTMENT Washington FOR RELEASE, AFTERNOON NEWSPAPERS, Saturday« January 2k-, 19^-2, Press Service No. 29-92 (The following address by John L. Sullivan, Assistant Secretary, before the G-eneral Federation of Women's Clubs In Washington, D.C., is scheduled for delivery at 1 p.m., Eastern Standard Time, Saturday, January 2 li, 1914-2 , and is for release upon delivery at that time. ) I am honored that you have aslTed me to speak to you at this most momentous meeting in all the history of the General Federation of Women^s Clubs. More than that, I am grateful for the opportunity to discuss with you national problems of great importance. We at the Treasury have a message which we believe ought to be delivered to every woman in the United States. We hope that as representative women of the nation you will carry this message to your membership in every city and town and village. America has demonstrated a capacity for self-government unequalled in any age or in any nation. Part and parcel of that ability to govern ourselves, without dictation from super-parties or supermen, is the American tradition that no problem of govern ment is the exclusive concern of any officer of government— but rather that it is the common problem of every citizen. And so it is eminently proper that you thoughtful, earnest citizens, who have grown up in the free air of our democracy, should thus draw closer to your government in a time of crisis and anxiety, to consult with us who are, in a very real sense, your servants. This i_s a time of crisis. Through no fault of its own, America is again engaged in a great war to determine whether this nation or any nation dedicated to freedom can endure. The tragic fate of Austria, Czechoslovakia, Poland, Denmark, and Norway— of Luxembourg, Holland, Belgium and France of Roumania, Bulgaria, Yugoslavia, Albania, and Greece— warns us of the penalty of losing. But we are not going to lose. We are going to win this war. 2. We sire going to win it with bigger and faster planes than the enemy has, and scores of thousands more of them than they can put into the air. We are going to win it with stronger, heavier tanks— with bigger guns— with more battleships and cruisers and destroyers and submarines. We are going to win with millions of soldiers and sailors better trained, better fed, better clothed, and better armed than our enemies. And we are going to win with the bravery and sacrifice and faith of a hundred and thirty million free people laboring as one to “secure the blessing of liberty to ourselves and to our posterity.M It is our job in the Treasury to raise the money to finance this titanic effort, It will require a great deal of money. But no American questions that it is worth a very high price and very great sacrifice to preserve our civilization. Part of the cost of war will be financed by borrowing. That is, by the sale of bonds which must be repaid in years of peace. But, insofar as is possible, we should pay for this war as we go along. When we do this we help to control the rising course of prices and keep the cost of living within reasonable bounds. You women who are the economists and the purchasing agents of the families of the nation don't need any argument from me to convince you how important that is. Y o u ’ve already seen the price of al most everything you buy start upward. You are paying more today— considerably more— for the food on your family's table and the clothes on your family's backs than you did a year ago. You have seen the cost of living increase more than \0% in the last year. This is serious, but a far greater increase impends unless we can prevent it, One of our best weapons against this very real war-time danger is to pay for the war as little as possible on credit, as much as possible with cash. And that means TAXES. To pay entirely with borrowed money would be merely to post pone the day of reckoning. Taxes may seem painful; in reality they are relatively painless. For all other methods of paying for the war mean the accumulation of a debt to burden America for decades to come, They mean a heavy and continuing cost in the future, but no smaller hardship now. They mean a haphazard rather than a planned distribution of the burden, 3The task before us Is unparalleled. War expenditures alone in the coming fiscal year will be * 5 6 .0 0 0 ,0 0 0 , 0 0 0 . T h a t is more than the combined Federal Government expenditures for all pur poses in the six years from 1 9 3 5 through 1 9 * 0 . Fortunately we have made a start toward meeting ^ « v e ^ o r e mendous cost. The Federal Government’s receipts will have more than tripled in the space of three years; rising from |5 3 0 3 ,0 0 0 , 0 0 0 in fiscal 1 9 *1 0 , to an estimated §17,261, , in*fiscal i9^3 under existing tax laws. This increase is due partly to Increased Production and higher national income— and partly to tax legislation enacte by a courageous Congress during the last two years, cannot hope that a national income already billion level will continue to rise much farther. further g . income must be primarily from new taxes and higher tax rates. This will not be easy on any of us, but it can And we all know that this is no time to and when so many Americans are contriouting all their energies even their lives to the Nation s great task. The women of America arrange the family budgets. «»fiiiFSsw-. I-.» out. You decide how much You spend is to be taken out or eaca p x or salary check and put away for s a v m g s - a n d taxes. So on behalf of your Government, S i. X ask you, income as it comes i n . Uo to this point I have been speaking primarily of ^ c o m e taxes 1 In our opinion, they represent sound government finane1 oolicy.' They are levied against those citizens who afford to pay, and the better-to-do men and women pay high rates and larger taxes than the less fortunate. But there are other taxes, notably the sales tax, «« at the Treasury are reluctant to see incorporated in pmlain n L n of fexation. I should like to take a few minutes to explain ? vmi and through y o u to the women of your communities, why. Trefsui-y regards i L ' s a l e s Tax as a "last resort" measure. 4, First of all, we are not convinced that it would be effec tive in raising a very great amount of revenue. Tax experts have estimated that a 2% tax on the sale of everything except food, clothes, and medicines would bring in only about $ 5 0 0 million. True, that is a great deal of money— but it Is a relatively small fraction of our total additional tax needs— $7 billion. We know also that a sales tax would be a difficult and ex pensive tax to collect, whereas increases in the rates of exist ing taxes would not require more than a nominal increase in ad ministrative costs. The Federal government already has the machinery set up and in action for collecting the other kinds of taxes. But we have no machinery set up, no men trained for collecting a sales tax. We should have to establish a whole new tax organization different from and in addition to our ex isting tax organization. That is a big Job, the expense of which would eat heavily into the comparatively slim revenue that a moderate sales tax would bring into the Treasury. We also feel that a s.ales tax is undesirable because it works a disproportionate hardship on the low-income groups who are least able to stand it— the people who spend substantially all their income on the very necessities of life. The Treasury believes that, insofar as possible, it is sound policy to guard against disproportionate increases in the tax burden on these low-income groups. There is much evidence that their combined Federal-State-and-local tax load is already out of proportion with that of their economically more fortunate fellows. Some people who favor the sales tax believe that its op pressive result on the poor can be avoided by exempting food, clothing and medicines. But let me point out that under our war program a preponderant part of our civilian production l going to be in these very essentials. If they are excluded from the tax, there w o n ’t be very much left., to tax,. If they are not excluded, the burden of the tax falls too heavily on those who can least afford to pay it— the individuals living on $1 ^ . 5 0 a week. As a matter of fact, even if it were feasible to exempt certain necessities, I very much question whether the exemption would prevent price increases in these articles. For example, take the case of a clothing manufacturer. He would pay a sales tax on the materials he bought and on his machines. These added taxes constitute for him another cost of doing business and naturally, like any businessman, he w ants to earn a profit on this additional investment. So he adds those taxes, plus something for profit, onto the sales price of the clothes which he made. And when you or your husband buy those clothes, you pay an increased price for them even if it isn t marked on the ticket as a sales tax, 5In varying ways and degrees, the same thing is true of the medicine that you "buy at the drug store and the food from the butcher or grocer. The price is higher, even if nominally there’s no sales tax added to these exempted articles. Some sales tax advocates suggest that it be levied on manu facturers or wholesalers instead of retailers. I ’ll grant that this would simplify the administration of the tax. But it also has its disadvantages. L e t ’s take a carpet, for example. The wholesaler pays the tax when he buys from the manufacturer. Naturally he adds that tax— plus something for profit on the tax— when he sells to the retailer. Then the retailer does ex actly the same thing when he sells the carpet to you. W h a t ’s the result? You pay two price increases instead of one— and each increase is larger than the amount of the tax. Any type of sales tax will increase the cost of living and make effective price control exceedingly difficult if not in fact impossible. The increased cost in living would cause labor to seek and obtain higher wages. These higher wages would mean higher prices for the goods you buy— and thus the spiral would go up and up and up, increasing prices all along the line, causing higher war costs and bigger deficits* and necessitating still more taxes. Another argument advanced for a sales tax is that it would give all the people an opportunity to contribute directly to the nation’s war chest. We believe they now have this opportunity. Today a married couple without dependents earning tydy.vv a week pays an income tax. A single person earning $14.50 a week pays an income tax. Surely we do not wish to impose taxes on those earning less than these amounts. In 1940— 7 ,6 0 0 , 0 0 0 Income tax returns were filed. In 1 9 L 1 — 15,200,000 income tax returns were filed. In 1942__2 2 ,0 0 0 , 0 0 0 income tax returns will be filed. Surely these figures show that all the people above a sub sistence level have already been given the opportunity to con tribute to the Federal G-overnment. From these figures you can judge whether a sales tax is necessary to bring home to our people the necessity and the cost of bringing our enemies to their knees. I have talked to you at such length about the sales tax iecause I look upon it as the start of a vicious sP ^ a l of risng prices. I know that you, who are leaders Of yo . :an warn every household in the country against ■ tnis threat, und I earnestly hope that you will do so. Speedy and extensiv liscussion by the women of America will make our country l sreasingly aware of its dangers. ’ 6. In conclusion, I want to ask you to think of the United States as your home— as the very house in which you and your family live their lives. If you lose it, you lose everything. The taxes you pay now are literally to secure protection and to pay insurance on your own home. These taxes will soon he increased to all-out proportions. Thev will impose sacrifices on everyone of us. Yet we welcome them because we are resolved to profit from the examples of those other peoples who taxed themselves too little and too late— and who lost all. Let us remember that today taxes serve a vital purpose, the Duroose of self preservation, the purpose of preserving the Amer ioan concept of freedom: Freedom of Speech, Freedom.of Worship, Freedom from Want, and Freedom from Fear. No one knows how long this war will last. But much I am sure: Whether it lasts two years or five, those years will see America at its best. Men will fight and die for those principles that have made America worth living in and worth dying for. The women of America who have glorified our j^erifor the future will . respond to the needs of the day as Ameri can women have always answered their country s call. Our fathers handed down to us from their : nation, strong and united, fearing no enemy, bowing to no master, and yielding to no force. We are the temporary trustees of this proud It is for us to pass it on to our children as we received i t strong and free. This we shall do. -0O0- TREASURY DEPARTMENT Washington (The following address by SECRETARY MORGENTHAU before the Defense Rally of the United Automobile Workers is scheduled to be delivered at the State Fair Coliseum in Detroit, Michigan, at *4- P. M #, Eastern Standard Time, Sunday, January 25, 19^2, and is for release upon delivery at that time. ) It is a good and wholesome experience for any official from Washington to come here to Detroit to meet a great audience of automobile workers. We in Washington are much too accustomed to think that we sit at the very center of the war effort. For the past few weeks we have seen our Capital City become, in a sense, the capital of the world, the scene of wartime planning on a world-wide scale. The officials and admirals and generals of many countries are working together in Washington at this very moment, planning the military, naval, and economic strategy that will bring Japan and Germany to their knees. Yet all our strategy, no matter how brilliant, cannot accomp lish its decisive purpose until the materials of victory have rolled from America!s assembly lines. All the individual daring and bravery of our men in uniform cannot win the war unless they are backed by the mass production of the implements of war. The real heart of the war effort is, therefore, not in Washington but right here in your workshops and factories. The big push begins here. The great offensive against the Axis is under way here in your State of Michigan, next door to you in Ohio and Pennsylvania, and wherever the skill and energy of working men and women are producing the weapons of victory. You in this hall are in the front lines in this phase of the war, and I am genuinely proud to be here among you today. This is not the first time that I have been privileged to visit the Detroit industrial area in recent months. Some of you know that I had the pleasure of attending a meeting of shop *» stewards at Pontiac in November. I came back to Washington from that meeting heartened and invigorated as seldom before. In that one evening I heard more sound common sense than I had heard in many meetings, in Washington or elsewhere. From that day I have been convinced that American labor has been ahead of all of us in its willingness to produce armaments to win the war, whatever the sacrifices, whatever the consequences. There is every reason for the rank and file of American labor to be out in the forefront in its understanding of the war and in its response to wartime needs. In the first place, this is a people’s war, to an extent never before known in any of the great struggles of human history. This war is a people’s uprising against tyrants who are trying to push us back into the Dark Ages. It is being fought by the people and it can only be won by the people’s efforts, by your efforts. Upon your skill, your sweat, your willingness to dedicate yourselves to war production, the ultimate outcome will very largely depend. 29-93 -2- In the second place, this is a war against the enemies of the free labor movement in this and every other country. Nobody needs to stand before any group of labor men and women in this country to tell it what Fascism means. When the Blackshirts bullied their way to power in Italy twenty years ago, when others praised Mussolini for making the trains run on time, American labor instantly knew Fascism for what it was. When Hitler crushed Germany's trade unions, you of American labor knew at once that he would crush yours if he ever had the chance. Labor has never been dazzled by the military accomplishments of the dictators. Labor has never made the mistake of imagining that Fascism was in any sense a “new order" or that its medieval tyrannies could supply us with any guideposts to our own future. Now, at last, the life-and-death struggle has come, just as the rank and file of labor foresaw that it would. As Hitler said — truthfully, for once!— "two worlds are in conflict; one of them must break asunder." We can tell him now that it is his world, not ours, which will break and die. But there is a third and still more compelling reason why labor has an Immeasurable stake in this war. Labor in this country and elsewhere looks to a better world, a freer and a more secure future. Everything that labor has fought for a hundred years to attain will be lost forever if the dictators shouxd win. Everything that labor seeks, for its children and its children s children, is bound up with the success of the free countries in the present struggle. I think I can describe those aims in a very few w°rds Wy telling you about a great picture in the Grand Central Station In New York. It is a unique picture because it happens to be the biggest phot-mural in the world; we of the Treasury put it there to help the sale of Defense Bonds and Stamps, and we made It big enough to cover an entire wall of the Station concourse, so that everybody could see it. But what makes me so proud of it is not its size, but its message and its spirit. The first of its three huge photographs shows an American farmer and his land, and the caption under It says "That we may defend the land we love. The second Is a panel of children's faces, with the caption, That these may face a future unafraid." And the last shows a worker looking up a t a factory, and under it is the caption, That we may build a better world." Those happen to be the objectives of the Defense Savings Bond campaign, but I also know that they are the objectives. of American labor, and they are the greatest of the alms for which we are fighting this war. -3 It may seem unfeeling of *e ®^yn 0f°y“unha?& temporarily lost Rnnds to Sin audience in which Jf , ^ ¿vm, because oj your Jobs, suddenly Und through f fault of^your « I fhp ohanffe—oVcr war suffei“ know w S t you into the D eproduct! t r a l t a r e a h a v e b>>000 eensu f f e r iing g in ^temporary when unemployment, W I wish as 4 » » . and when those vour -Giants will be bach in rux Pt -up hack at your benches of you who are walking the stree L ask or expect any of you who h L e more Certainly 1 would ne^er ^ 8^ ° a t!m?s We have a slogan are out of a Job ^ T^ ® ^ f | Ve°fpayday Bond Day." That does not^apply6toUthose who have no payday ^/^dri^i^means S and Shelter from his S ^ lftr a aS S ^ c ? . 5 ^ family« $ The other day a elaborate sales promotion ¿Sft these |mong the(American p e o p l o f Wbeing he°ld up to pu b U c ^ i d i c u ! ^ ^ y o n e who did not^buy a ^ l n d ^ V e i l e d that w ^ p f i e H h ^ t i f ^ countenance anything 0f intimidating k m e r l c & n s ,«,tvp th e 5 “ ™.»?»“ “ '"* ” ” tr',p° ” 4 ’ ” PI'8” ' b „, for « . . . «ho “ “ 0“ 1 1 " » « n i V S S ” ; » » good Jobs at good w?Se®’DPPei e You who are working In the Detroit ^ fo^war! * & v ~ ^ ”.'.rfiSndS srLSKSVs know that those who :^ n t t ^ s e ^ s h ^ ^ t h a i ^ t h o s e who S S “ not*S«?ferihSeW»J K ? " r 4 :“ S " i i ^ n e ^ ?SfSesM” oiSp... bond. w l U bring I am often ashed three ‘f ^ ^ ^ f i r s t m ust, X S |u f b e i n ??o - Tlif f n- e rT^ ^ r t e ^ S l • ^ is, "Gan I get my a y U - a « ^ sixty days from the date ^ ^ ^ ^ a n s w e r ' is that we at the happens if L ^ f cf ef e3 bond a n f its owner; we can supply Treasury have a record of every lf and we will be glad to vou With another lf y ° ^ ; ai£p Treasury if you wish us to heep i kpeo vour bond for you at the ireasu y j lose money on these sltl for you. The third question £ . « & * * * Bonds?* The bond» ih.s.bojds, ^ ^ % & l iSt“=rSn?r!=£ S £ S , * 3 i “ ?f? S lf h S l n lnp.i!r.nt“ * r ' - t . 1» SS,*“ *" &’^ J 3 i r u r ' - r iffai.’sS £ » - . dollar, and the longer you value. «fe Moreover, Defense Bonds not only help to pay for the guns and tanks and planes that will win the war; they also pay for labor, your labor. Every time you buy a $75 "bond you pay for the services of a skilled worker for an entire week; every time you buy a Bond or even a Defense Stamp you are enabling the United States Government to pay you for your work, and you are hastening the day when our fighting men will be able to carry the war to Tokyo and Berlin. About a month ago two of your brothers in the Dodge local, Mr. Rubin and Mr. Swetz, came to see me in Washington, to discuss ways and means of hastening the conversion of their plants to war production. Together we accomplished something, because those two men had the Initiative to come to my office, and also because of the fine cooperation of Mr. Patterson, the Undersecretary of War, Mr. Stettinius, the Lend-Lease Administrator, and Mr. K. T. Keller, of the Chrysler Corporation. But what I shall always remember about that meeting is the spirit that your representatives showed. I argued then, and I have said it for months to everyone who would listen, that the only way to arm this country in time was to order the complete and immediate stoppage of all automobile production, and the quickest possible conversion of the plants. Your representatives knew that that would mean Immediate unemployment for great numbers of men; yet when I asked them how they felt about it they answered, without a moment*s hesitation, HWe can take it; we want it done.M That was just a sample of the spirit I have found among American labor ever since we at the Treasury started the Defense Savings program. It is a sample of the spirit that the whole country has discovered in the weeks since Pearl Harbor. It is the spirit that is going to win the war. I said in Cleveland yesterday that the pioneers who settled this Middle Western country did not let danger or hardship frighten them. They regarded every danger as a challenge, every hardship as an adventure. That is the spirit with which you are meeting this crisis, the greatest that free men have ever undergone. You workers of Detroit are in the forefront of the fight, and I am confident that you will see it through until the fight is won. •oOo- TREASURY DEPARTMENT Washington FOR IMMEDIATE RELEASE Monday, January 26, 19^2# Press Service The Treasury Department announced today that a staff of Treasury representatives under Thurman Hill, Special Assistant to General Counsel of the Treasury Department has begun an investigation of the records and personnel of^American Bosch Corporation -whose main plant is located at Springfield, Massachusetts* The majority of the capital stock of the American Bosch Corporation is beneficially owned by foreign interests* Accordingly, the corporation is under the freezing control of the Treasury Department* TREASURY DEPARTMENT Washington FOR IMMEDIATE RELEASE, Monday, January 26 , 19^-2. Press Service No. 29-9^ The Treasury Department announced today that a staff of Treasury representatives under Thurman Hill, Special Assistant to the General Counsel of the Treasury Department, has begun an investigation of the records and personnel of the American Bosch Corporation, whose main plant is located at Springfield, Massachusetts. The majority of the capital stock of the American Bosch Corporation is beneficially owned by foreign Interests. Accordingly, the corporation is under the freezing control of the Treasury Department. -oOo- 2T-T6 'DerpaTtmerrtriihat i he n a t i o n * s l e a d i n g i n v e s t m e n t o r g a n i z a t i o n s h a v e offered h e i r s e r v i c e s e n t i r e l y on a v o l u n t e e r b a s i s to a c q u a i n t in v e s t o r s w i t h the G o v e r n m e n t * s p l a n o f s a v i n g f o r taxes by the purchase, of T r e a s u r y T a x S a v i n g s Notes., a nd to a i d in the^ sale The o f f e r o f c o o p e r a t i o n was m a d e at a m e e t i n g w i t h T r e a s u r y o f f i c i a l s b y J a m e s F. Burns, Jr., P r e s i d e n t of the A s s o c i a t i o n of Stock E x c h a n g e F i r m s * W a l l a c e H. Fulton, E x e c u t i v e D i r e c t o r of the N a t i o n a l A s s o c i a t i o n of Securities Dealers* E m i l Schram, P r e s i d e n t of t h e N e w Y o r k S t o c k Exchange; a n d J o h n S. Fleek, P r e s i d e n t of the I n v e s t m e n t B a n k e r s A s s o c i a t i o n of A m e r i c a . These investment organizations represent s o m e 3 , 500 m e m b e r firms in a l l p a r t s of the U n i t e d States with a n e s t i m a t e d sales p e r s o n n e l t o t a l i n g a b o u t 20,000. The T r e a s u r y h as a c c e p t e d this o f f e r a n d ha s p r i n t e d a s p e c i a l f o l d e r to h e l p t h e m e x p l a i n to i n v e s t o r s the r e a sons w h y t h e y s h o u l d i n v e s t f u n d s r e g u l a r l y f or f u t u r e t ax payments, p a r t i c u l a r l y F e d e r a l i n c o m e taxes, g i f t taxes, a n d estate taxes. The r e p r e s e n t a t i v e s o f the v a r i o u s firms r e p r e s e n t e d by the c o o p e r a t i n g a s s o c i a t i o n s w i l l p o i n t out to c l i e n t s the d e s i r a b i l i t y o f these T a x S a v ings N o t e s as an i m p o r t a n t part o f a w e l l - b a l a n c e d i n v e s t m e n t plan. In l e t t e r s to t h eir mem b e r s , the I n v e s t m e n t Bankers A s s o c i a t i o n , N a t i o n a l A s s o c i a t i o n of S e c u r i t i e s Dealers, the N e w Y o r k S t o c k Exchange, and the A s s o c i a t i o n of S t o c k Exchange F i r m s say: ^ T h e f a c i l i t i e s of the I n d u s t r y are a g a i n p l a c e d at the d i s p o s a l of the U n i t e d S t a t e s G-overnment and the T r e a s u r y D e p a r t m e n t for the p u r p o s e of a c q u a i n t i ng the p u b l i c w i t h the a d v a n t a g e s of p u r c h a s i n g Tax Savings Notes. ¿iThese n o t e s o f f e r an o p p o r t u n i t y to r e n d e r a w o r t h w h i l e I n v e s t m e n t s e r v i c e to ou r c u s t o m e r s and, at the same time, c o n t r i b u t e m a t e r i a l l y , t h r o u g h our s p e c i a l i z e d k n o w l e d g e a n d e x p e r i e n c e , to the nation's w a r effort. It is g o o d i n v e s t m e n t a d vice to urge p e o p l e to set a s i d e for tax p a y m e n t s a p o r t i o n of I n c o m e as it is r e c e ived. 11 9 TREASURY DEPARTMENT Washington F O R RELEASE, M O R N I N G NEWSPAPERS, Press Service No- 29~95 Tuesday. January 27. 19^2,______ 1/26/4-2 The nation's leading investment organizations have offered their services entirely on a volunteer basis to acquaint investors with the Government's plan of saving for taxes by the of Treasury Tax Savings Notes, and to aid in the sale of the Notes, Secretary Morgenthau announced today. The offer of cooperation was made at a meeting with Treasury officials by James F. Burns, Jr., President of the Association of Stock Exchange Firms; Wallace H Fulton, Executive Director of the National Association of Securities Dealers, Sc^ ® | dent of t^e of the New York Stock Exchange; and John S. Fleek, President or Investment Bankers Association'of *»erloa These :investment organizations represent some 3,500 member firms l ^ a l l p a r United States with an estimated sales personnel totaling about 20, 000. The Treasury has accepted this offer and has printed a special folder to help8them explain^to investors the reason why they should invest funds regularly for future tax payments, particularly feaerar income taxes, gift taxes, and estate taxes. The -renresentatives of the various firms represented by the cooperating assoc?afions will point out to clients the desirability of these t I x Savings Notes as an Important part of a well-balance investment plan. In letters to their members, the Investment Bankers Associatio National Association of Securities Dealers, the New York Stock Exchange, and the Association of Stock Exchange Firms say: "The facilities of the Industry are again Placed at the disposal of the United States Government and the Treasury Department for the purpose of acquainting the public with the advantages of purchasing Tax Savings o "These Notes offer an opportunity to render a worthwhile investment service to our customers end, &t the time, contribute materially, through our specialized knowledge and experience, to the nation s war e _ a^ide It is good investment advice to urge for tax payments a portion of Income as it -0O0- i§|1 Roosevelt, yet the uoyd "impossible* had been «trunk out 1 of his dictionary* he proved it* Nothing was impossible to him, end He ie proving it today end evei^ day* * In the ««me nay the road ahead of our country must seem dark at times* fa as a nation have been struck a blow while we were not looking* Our whole world has been stricken with the disease of conquest and tyranny 4 which we shall have to stamp out before we can live in ¿JBlff peace and happiness and well-being again* pHS \ 4 But If anyone should ever have his doubts, if anyone should suppose for one moment that the job is too big for us, let him think of the example of Franklin Roosevelt, and then carry on* i D-B 4 trip» together. of its. Than, too, he was a n inspiration to all Chen other« grumbled, he was always cheerful; w h e n others hen their doubts, he was always optialstic. I remember particularly one cold autism day w h e n he spoke 14 tines from a n open car« This was the stricken nan whoa we had accompanied to C a m Springs only a few years before. Be was winning his fight, i# was waging his war Ctr-Lwlth every ounce of energy and determination within him. r i Thin determination to heat all hardships, to conquer *11 handicaps, is being created la these United States daj V day* Mr* Hitler, Mr. Mussolini, and Mr* Mikado/ 1 A * v . I want you to taka a look at the spirit of W a r » Springs , ' ^or ***** *8 ^ spirit of Anerioa today and it is something which you can never beat, so »attar hoar long you try* Mai^y times in those early days at W a r ® Springs the road ahead most have seamed dark and painful to Franklin D-B i toward one another, an attitude toward life which subsequently came to be known as the "spirit of Wars Springs**1 In reality that was the spirit of Franklin Roosevelt. He blew the breath of life and courage into that place through the example he set, through the reserves a t courage that he summoned* Be had already made up his mind that he had "nothing to fear but fear itself.1* 7 Be never spoke to me then about the disease that struck him, nor has he spoken about it since, fighting his fight alone. s *7 * fie was He was determined to show that he could take it, with the ssSne grim and gay spirit that .jjl the people of London showed when a different kind of scourge fell upon them. In later years when Franklin Roosevelt had re-entered state politics Is Mew York, we went on a number of campaign D-B DRAFT OF SECRETARY MORGENTHAU'S BROADCAST FOR THE 11!ANTILE PARALYSIS CAMPAIGN, JANUARY 26, 1942. Tonight I should like to speak to you for a very few minutes, not as Secretary of the Treasury, but as an old friend and neighbor of Franklin Roosevelt. I feel very deeply that it will help our country to surmount the dangers ana obstacles of this hour if all of us remember how Franklin Roosevelt conquered the obstacles that at one time shadowed his whole life. It is more than twenty years since the President was stricken with infantile paralysis. The very first TRa^/. .cf/x.*.* year that he went to Warm Springs, sar went with him. It did not take us long to discover that he had brought a new spirit to -arm Springs. winter, we a m Even in the very first that the patients there had a certain cheerful optimism, a kindly and helpful relationship (The f o l l o w i n g t a l k b y S E C R E T A R Y M O R G E N T H A U on b e h a l f o f t h e " P r e s i d e n t * s B i r t h d a y cele*b r a t i o n ’'is s c h e d u l e d to b e b r o a d c a s t o v e r t h e B l u e N e t w o r k at 10145 P*m»t E a s t e r n S t a n d a r d Time, J a n u a r y 26, 1942, a n d T s for r e l e a s e u p o n d e l i v e r y at t h a t t i m e 71 * f « w 4 TREASURY DEPARTMENT Washington (The following talk by SECRETARY MORG-ENTHAU on behalf of the ‘'President *s Birthday celebration" is scheduled to be broadcast over the Blue Network at 10:^5 P. m . t Eastern Standard T i m e , January 267 19^-2, and is for release upon delivery at that tlmeTl Tonight I should like to speak to you for a very few minutes, not as Secretary of the Treasury, but as an. old friend and neighbor of Franklin Roosevelt, I feel very deeply that it will help our country to surmount the dangers and obstacles of this hour If all of us remember how Franklin Roosevelt conquered the obstacles that at one time shadowed his whole life. It is more than twenty years since the President was stricken with infantile paralysis. The very first year that he went to Warm Springs, Mrs. Morgenthau and I went with him. It did not take us long to discover that he had brought a new spirit to Warm Springs. Even In the very first winter, we saw that the patients there had a certain cheerful optimism, a kindly and helpful relationship toward one another, an attitude toward life which subsequently came to be known as the "spirit of Warm Springs." In reality that was the spirit of Franklin Roosevelt. He blew the breath of life and courage Into that place through the example he set, through the reserves of courage that he summoned. He had already made up his mind that he had "nothing to fear but fear itself." He never spoke to me then about the disease that struck him, nor has he spoken about It since. He was fighting his fight alone He was determined to show that he could take it, with the same grim and gay spirit that the people of London showed when a different kind of scourge fell upon them. In later years when Franklin Roosevelt had re-entered state politics in New York, we went on a number of campaign trips together. Then, too, he was an inspiration to all of us. When others grumbled, he was always cheerful; when others had their doubts, he was always optimistic. i remember particularly one cold autumn day when he spoke lU- times from an open ca^ # This was the stricken man whom we had accompanied to Warm bprings only a few years before. He was winning his fight. He was waging his war with every ounce of the energy and determination within him. 29-96 - 2- This determination to beat all hardships, to conquer all handicaps, is being created in these United States day by day. Now, listen, Mr. Hitler, Mr. Mussolini, and Mr. Mikado .1 I want you to take a look at the spirit of Warm Springs, for that is the spirit of Amerida today and it is something which you can never beat, no matter how long you try. Many times in those early days at Warm Springs the road ahead must have seemed dark and painful to Franklin Roosevelt, yet the word “impossible” had been struck out of his dictionary. Nothing was impossible to him, and he proved it. He is proving it today and every day. In the same way the road ahead of our country must seem dark at times. We as a nation have been struck a blow while we were not looking. Our whole world has been stricken with the disease of conquest and tyranny, a disease which we shall have to stamp out before we can live in peace and happiness and well-being again. But if anyone should ever have his doubts, if anyone should suppose for one moment that the job is too big for us, let him think of the example of Franklin Roosevelt, and then carry on. -0O0- TREASURT DSPABTHHiT Washington FOR RELEASE, HORHIHO KEWSPAPERS, Tutydnr. Jwnary 27. 1942. 1/26/42 T im Ft m * Servlet Secretary of ths Treasury announc'd last evening that ths tenders far $150,000,000, or thereabout', of 91-day treasury bills, to be dated January 28 and to nature April 29» 1942, which were offered on January 23, were opened at the Federal Reserve Banks on January 26« tbs details of this issue are ae follows t total applied for - $371,501,000 total aeeepted - 150,074,000 Range of scoeptsd bidet High Low Average pries (Rxeepting two tenders totaling $105,000) - 99*975 Equivalent rate approximately 0*099 percent - 99.934 « « * 0.261 « - 99.942 » » * 0.231 ■ (15 percent of ths anount bid for at the low prise was acosptsd) TREASURY DEPARTMENT Washington FOR RELEASE, MORNING- NEWSPAPERS, Tuesday. January 27, 1 9 ^ 2 . ..... Press Service N o - 29~97 1/26 A T The Secretary of the Treasury announced last evening that the tenders for $ 1 5 0 ,000,000, or thereabouts, hills, of Treasury to he dated January 2$ and to mature April 29, 19^2, which were offered on January 23, were opened at the Federal Reserve Banks on January 2 6 .. The details of this issue are as follows: Total applied for $37^> 501, 0 00 Total accepted - 150,07^,000 Range of accepted bids: High Low Average Price (15 99*975 99*934 (Excepting two tenders totaling $ 1 0 5 ,0 0 0 ) Equivalent rate approximately 0.0^9 percent 0 .2 6 1 " " O.2 3 1 99 9^2 • percent of the amount hid for at the low price was accepted) -o 0 o~ PRESS RELEASE The Bureau of Customs announced today that preliminary reports from the collectors of customs show imports of cattle weighing 700 pounds or more each (other than cows imported specially for dairy purposes), under the tariff rate quotas for the first quarter of the calendar year 1942, provided for in the trade agreement with Canada, as allocated between Canada and other foreign countries in the Presidents proclamation of December 22, 1941, &s follows: Established Quota First Quarter 1942 Canada Other foreign countries Head 51,720 8,280 Entered, or Withdrawn from Warehouse, for Consumption Jan. 1 to 17. 1942. Incl. 21,5^0 Head (Tariff rate quota filled) (Prepared — Appeals and Protests (Quota Unit) Bureau of Customs)» TREASURY DEPARTMENT Washington Press Service No. 29-98 FOR RELEASE, MORNING NEWSPAPERS, Wednesday, January 2g, 1942. 1/27/4-2 The Bureau of Customs announced today that preliminary reports from the collectors of customs show imports of cattle weighing 7 0 0 pounds or more each (other than cows imported specially for dairy purposes ), under the tariff rate quotas for the first quarter of the calendar year 1 9 ^ 2 , provided for in the trade agreement with Canada, as allocated "between Canada and other foreign countries in the President's proclamation of December 22, 19^-1 > a-8 follows*. Established Quota First Quarter 19*12 Canada Other foreign countries Entered, or Withdrawn from Warehouse, for Consumption Jan. 1 to 17. 19*12. Incl,_ Head 51,720 8,280 -o 0 o~ 21,580 Head (Tariff rate quota filled) <3 For Immediate Release Secretary Morgenthau today witnessed a screening of the first completed print of the Treasury*s new Donald Duck income tax picture, **The New Spirit,**/and gave his approval for release of the film this weekend. Between that time and March 16, millions of Americans will see the fast-moving color short, in which Donald learns of the vital importance to the nation’s war effort of prompt tax payments. The Office of the Co-ordinator of Government Films has arranged with the War Activities Committee of the Motion Picture Industry for distribution of the film to 1 2 , 0 0 0 theaters in that p er iod • Walt Disney broke all of his production records, leading his crew of artists and technicians in working around the clock seven days a week, in order to get the picture set for a maximum number of showing before the income tax deadline• They turned out in less than two months a finished product that normally requires at least six months. ooOoo TREASURY DEPARTMENT Washington FOR IMMEDIATE RELEASE, Tuesday, January 27, 19^2^ presS S ®rvice N o - 29-99 Secretary Morgenthau today witnessed a screening of the first completed print of the Treasury's new Donald Duck Income tax picture, MThe New Spirit,” and gave his approval for release of the film this weekend. Between that time and March 16, millions of Americans will see the fast-moving color short, in which Donald learns of the vital Importance to the nation's war effort of prompt tax payments, The Office of the Co-ordinator of Government Films has arranged with the War Activities Committee of the Motion Picture Industry for distribution of the film to 12,000 theaters in that period. Walt Disney broke all of his production records, leading his crew of artists and technicians in working around the clock seven days a week, in order to get the picture set for a maximum number of showings before the income tax deadline. They turned out in less than two months a finished product that normally requires at least six months. oOo