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L IB R A R Y
ROOM 5030
JUN 141972
TREASURY DEPARTMENT
table
of
contents
Plan to reward employees for suggestions
July 30, 1947
S-409
Import controls removed on securities
July 25. 1947
S-410
. . . .
........
......
. . . . . .
Food broker pays $>192,000 for tax evasion; other cases
July 30, 1947
S-411
Domestic coinage
July 29, 1947
• • •
. . . . . . . . . . . .
S-412
Subscription figures on 1/%% Certificates, Series G-1948
July 30, 1947
S-413
. .
Amendment to Provisional Regulations of Gold Act of 1934
July 31, 1947
S-414
.,
Banks and financial institutions to cash Leave Bonds
August 1 , 1947
S-415
Bill offering • •
August 1, 1947
. . . .
........................
S-416
Counterfeit currency from Europe
August 8 , 1947
8-417
...
.............
Rum-running violations
....... . . . . . . . . .
August 4, 1947
S-418
makes public Snyder
Admiral Farley/letter, Coast Guard annuversary . . « • • • •
August 4, 1947
S-419
Bill tenders
August 5, 1947
S-420
Record breaking recoveries from tax evaders during 1947 fiscal
August 10, 1947
S-421
Debt limitation . . . . . . . . . . . . . . . .
August 7, 1947
S-422
Bill o f f e r i n g ...........................
August 8 , 1947
S-423
Bill tenders
. . . .
August 12, 1947
. . . . . . . . . . . . . .
£-424
Bill offering . . . . . . . . .
August 15, 1947
...............
£-425i
10-month 7,/q % Certificate o f f e r i n g .......................
August 18, 1947
S-426
\
Pg 2
Market transactions
August 15, 1947
31
..........................
S-427
Customs: Cotton • ..........
August 13,
1947
£-428
32
• • • • • • • • . . .
Customs: Philippine commodities
August 13,
1947
£-429
• • • • •
........
,
34
Customs: Quota commodities
August 13,
1947
£-430
36
Customs: Wheat
. . .............
August 13,
1947
£-431
Conference between British and 0 S Officials, economic conditions 37
August 18,
1947
S-432
Bill tenders
August 19,
1947
|75,000 salary list
August 26, 1947
39
S -433
. . . . ........... . . . . . . .
S-434
40
Restrictions withdrawn on check collections in enemy territory
August 19, 1947
S-435
98
Statistics of Income, 1944, Part 1
August 2 1 ,
1947
£-436
99
Certificate offering, Series
August 20,
1947
S-437
........................ ..
1
H-1943
Dalton-Snyder letters? excessive drainson dollar
Bill offering
August 22,
1947
. . . .
108
111
S-438
Joint session MAC-UK delegation
August 22, 1947
S-439
Snyder pleased with cooperation on Leave Bonds
August 23, 1947
£-440
Joint session NAC-UK delegation
August 22, 1947
S-441
132
....................
• • • • •
.............................
Bill o f f e r i n g ..........................................
August 26, 1947
£-442
Bill tenders ......................................
August 26, 1947
£-443
113
114
Tax evaders operate in black markets
August 27, 1947
S-444
Italy added to released block accounts
August 29, 1947
S -445
...................................
H7
• • • • • • • •
119
Ammonium nitrate; Texas City d i s a s t e r ..............................................
August 30, 1947
S-446
120
Three tax consultants appointed; study of tax system
September 2 , 1947
S-447
124
. .
Subscription figures on 7/8 / C e r t i f i c a t e s .............
August 2y, 1947
S-448
...........
1-1/2/ Certificate -offering, Series B-1948
September 2, 1947
S -449
Bill tenders
. . . .
August 30, 1947
................................ . . . . . . . . .
S-4-50
Federal Estate and Gift Taxes
September 10, 1947
S-451
. . . .
. % > ...............
McKiney & Co. appointed to survey Customs
September 3, 1947
S-452
B i l l o ffe r in g
September 5, 1947
. • • • • . • •
........................ ...
126
129
130
132
133
S -453
. . . . . .
334
* • • • • » • • • « • . . . . * . .
S-455
137
Further details on 2-l/2 nonmarketable bonds
September 5, 1947
S -454
National bank assets
September 9, 1947
125
Debt limitation ................... .............. ..
September 9, 1947
S-456
Cotton quota filled
September 8, 1947
...........................
S-457
Bill tenders
. . . . . ...........
September 9, 1947
S-458
...
. . . . . . . . . .
Customs t Whe a t .......... • • • • • • • • • . . . . .
September 10, 1947
S-459
Customs: Philippine commodities
September 10, 1947
S-460
Customs: Quota commodities
September 10 , 1947
S-461
. . . . . . . . . . . .
142
343
14.4
145
146
Pg 4
Customs: Cotton . . . . . . .
September 10, 1947
S -4 62-
147
........ ..
Bill offering .......................................
September 12, 1947
. S-463
249
Subscription figures on 1 % Certificates, Series B-1948 . .
September 12, 194-7
S-464
150
Market transactions. . . . . ...............
September 15, 1947
S-465
15 1
. . . . . .
•
Bill tenders . . . . . . . . . . . . . . . . . . . .
September 16, 1947
S-466
Cotton quotas filled
September 15, 1947
.........................
S-4-67
Entries and withdrawals of cotton
September 17, 1947
S-468
Bill offering . . . . . . . . . . .
September 19, 1947
S-4S9
154
........... . . . .
155
...............
• . . . . . . . . .
Official circular governing Series A-1965
September 22, 1947S-471
bonds
. . . .
Ebasco Co. to make study of Coast G u a r d ........ ..
September 19, 1947
S-472
Bill tenders
September 23,
153
.....................
1 % Certificate offering, Series J-1948
September 22, 1947
S-470
Bonds issued-Redeemed during August
...
262
156
159
160
175
175
1947
S -473
. . . .
177
Bill o f f e r i n g ......................... ............ ,
September 26, 1947
S-475
178
National bank earnings
September 29, 1947
S-476
179
Global quota of cotton filled
September 24, 1947
S -474
...............
Amendment to S-474 on cotton quota filled
September 26, 1947
S -477
. . . . . . .
132
Pg 5
Bill tenders
. . . . . . .
............. . . . .
September 30, 1947
S-478
183
Revocation of Gen. License No. 50
September 30, 1947
S-479
184
. . ............
Wiggins address, American Bankers Association, Atlantic City
October 1, 1947
S-480
185
Subscription figures on 1% Certificates
September 30, 1947
S-481
196
Federal Retail Excise Taxes
•
October 6 , 1947
S-482
oOo
...............
197
1
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Wednesday, July 30, 1947
Press Service
No. S-409
Secretary1 Snyder announced today that the Treasury
Department has put Into effect a plan through which civilian
employees of Its various bureaus and divisions who make
meritorious suggestions resulting in Improvements or economies
in the operation! of the Department; may be eligible to re
ceive cash awards ranging from $10 to $ 1 ,000.
Legislation enacted by the Congress last year, and an
Executive Order subsequently issued by the President, author
ized the various Government departments and agencies to
establish the practice of employee awards. The legislation
limits the amount that can be paid by the Treasury Department
to a total of not more than $ 25#000 In any one fiscal year.
A further limitation provides that an award cannot be paid
for a suggestion representing a part of an employee’s duties.
Local suggestion committees have been established through
out the departmental and field organizations of the Treasury.
ondfr ntke Plan> officially known in the department as pThe
Cash Awards for Suggestions Program", ideas submitted by employees will first be considered by local committees and then
referred to the departmental committee for final action.
Every suggestion will be evaluated# and no suggestion can be
rejected until it has been passed on by the departmental com
mittee to see if it has possible value in other parts of the
Treasury Department or elsewhere in the Government.
Any employee whose suggestion: is adopted for use will
receive at least the minimum award of $10.
oOo
2
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS
Friday, July 25, 19^7__________
Press Service
No. S-JllO
Secretary of the Treasury Snyder announced the removal of
the import controls on all securities except certain "scheduled
securities set forth in a list issued today by the Treasury
Department as part of an amendment to General Ruling No. 5.
Under the amended controls, persons bringing American
securities or foreign dollar bonds into the United States
from abroad and persons to whom such securities are mailed or
otherwise sent directly from a foreign country are required to
ascertain whether the securities are included in theslist of
scheduled! securities” and, if so, to deposit them with the
Federal Reserve Bank of New York. In addition, any individual
who has actual knowledge that securities received by him in a
domestic transaction, whether for h 3.mself or for any other
person, are on the list of "scheduled securities" is also re
quired to forward such securities to the Federal Reserve Bank
of New York unless such securities are returned i n .accordance
with the provisions of the general ruling to the person in
the United States from whom received, If the securities are
so returned, the last person in the United States to^hom they
are returned is required to deposit them with the Federal
Reserve Bank.
■ i:'[
It was also pointed out that persons who are offered or
tendered scheduled securities" and who refuse to accept them
having actual knowledge that such securities are on the list
are required to file a report with the Federal Reserve Rank of
New York with respect thereto.
T*'Y**±<i* : - v
The provisions of the amended general ruling, it was em
phasized, apply'to Vscheduled securities1’coming to the United
States from Great Britain, Canada, Newfoundland, Bermuda, and
the Philippines, as well as from other’foreign countries.
Previously, securities coming from the named areas weref*in
general■, exempted from the import controls. The change I r i i j
Coupons appertaining to ’scheduled securities’! are them
selves considered "scheduled securities" under the amended
general ruling.
k»
Ml
** "*k
ft
4
:
■'
'
■
3
-
2
-
General License No. 87 vas also amended so as to lift the
prohibition under Sec. 2A$2) of Executive Order No. 8389 upon
the acquisition by persons in the United States of securities
not physically in this country, other than "scheduled securities”.
Acquisition of the latter is 3till prohibited. The previous pro
visions of General License No. 87 which exempted certain securi
ties from General Ruling No. 5 are now unnecessary because of
today's amendment to that ruling, and accordingly, they were
deleted.
Attention was also called to the provisions of Public
Circular No. 35 issued today. In this connection, Treasury
officials emphasized that the amendments of General Ruling
No. 5 and of General License No. 87 in no way affect the
status of blocked property located in the United States nor
do they authorize any transfer of interest, directly or
indirectly, in such blocked property.
0C0
TREASURY DEPARTMENT
W ashingt on
FCR 'RELEASE/ MOhNING NEWSPAPERS,
Wednesday» J u l y 30♦ 19A7.__________
jPSess S e r v ic e
No. 3 - A l l
Secretary Snyder told today of a Southern food broker who will pay
$ 192,000 in taxes and penalties and serve a prison term if convicted on con
templated criminal charges for the folly of his belief that government agents
weren't smart enough to see through his maze of fraudulent bookkeepings
The ram had^concealed approximately $225,000 of profits in recent years
a
^n'tr;Lcat,e -series of false entries on his company's books and had
boasted to his employees that5 »There is nobody in the Bureau of Internal
Revenue smart enough to check these books.»
Mr. Snyder singled this ease out for special comment as a tribute to the
tireless and ingenious work of the Treasury investigators who successfully
match wits daily with the most cunning law violators in the country.
The incident, however, was only one of scores of cases reported to the
Secretary by George J. Schoeneman, Commissioner of Internal Revenue; from the
nationwide drive against tax evaders.
3
Other interesting cases include:
for a ^ t i ^ r l v v i ? eXpert" irV a large W e s t e r n city who will be prosecuted
lor a particularly vicious scneme by which he prepared false refund claims for
clients and then pocketed the refunds himself;
This man, a former
laborer
who operated in the front room of a tailor shop, would fake refund cairns bv
inventing »dependents" for his customers.
Then the «expert« would substitute
his own address for the taxpayer's address on the return. Ihen the refund
check arrived at the "expert's" address, he would forge the taxpayer's
®"d+5®e*®n t » ca®h *he check; and. keep the money.on the complaint of one of the taxpayers.
His'practice was discovered -
c u t W f r ^ t0f manuf?oturer has been assessed $800,000 and faces proseof o ? o m e anc0m?+tax evasl°n. This man had attempted to cover up huge amounts
profits by writing large "expense" checks to himself and relatives. He
^ n ^ r S r d s !
^
* * * * *
« * > * » ■ < ! « - *, t h e i r s
|
and
C“ nery ooncey has been assessed over $ 2 ,000,000 for taxes
and penalties after discovery of concealed profits in a secret bank account.
of a ^ ® eSSmenV f n 0f ly W A 3 0 , 0 0 0 and prosecution face the manufacturer
oi a precision instrument m one of the South Atlantic States.
d i s c l o ^ A ^ N f ' anS/ n
zm
rn
b
i&
M
idwestern states recently made voluntary
1
and paid up tax delinquencies of $42,000 and $44,000, respecitvely.'
evaded^taxpRhrina
dyeing establishmfnta
hay nue in ane state reports large amounts of
33
r
°f 3 l0°al drive orl ol=-‘anlng a"d
¿r
- 2 -
Three liquor retailers who had gotten rich in the black market recently
supplied their own evidence of tax ëvasion when they reported to .local' police
that burglars had stolen $ 37*000 from one of their homes and $87*000 from
another home;
An eastern poultry processor was found to have concealed nearly a half
million dollars of profits in secret bank accounts and has been assessed
$400,000.
oÔo
TREASURY DEPARTMENT
Washington
FOR IMMUDIATE RELEASE,
Tuesday, July 29, 194-7»
Press Service
No. S—412
Domestic coinage at the United States Mints during the fiscal year
1947, ending June 30, totaled 2,016,485,295 pieces with a value of
$77,066,507.50, according to a report made public toaay by Nellie Tayloe
Ross, Director of the Mint.
Coinage of one—cent pieces and dimes showed increases'"over the
records for the fiscal year 1946. Fewer half dollar's, quarters and
nickels were, minted.
The totals for the fiscal year 1946 were
1 ,658 -,127,100 pieces with a value of $ 78 ,003 ,1 7 0 .
Half dollars coined during the fiscal year 1947 included the Iowa
Centennial and the Booker T. Washington commemorative coins.
The Mint continued heavy production of military decorations for
the Army, Navy, Coast Guard and Marines, wartime awards of these
decorations having piled up a considerable backlog of orders for them
which the Anil has not yet been able to fill completely.
^ Gold medals authorized by Congress for General George C. Marshall,
Admiral Ernest J* King, General John J. Pershing and the late Brigadier
General William Mitchell are now in process of completion.
They will be
presented by the President.
The Mint manufactured 333,964,363 coins for foreign governments
during the fiscal year.. The countries which placed these orders were
Colombia, Cuba, Dominican Republic, Ecuador, Ethiopia, Netherlands East
Indies, Panama, Saudi Arabia, and Venezuela,
The attached table gives details of the coinage executed by the
various Mints during the fiscal year.
r*r
CO IM G S OS THE UNITED STATES, 3Y MINTS, DURING THE FISCAL YEAR 1947.
Denomination
Philadelphia
San Francisco
Denver
Total Value
Total Pieces
SILVER
$6 ,18 3 ,000.00
$2,563,850.00
$8 ,7 ^6 ,850.00
$250,139.50
10 0 ,056.50
- 50 ,028.50
850,^69.00
1 0 ,0 1 3 ,000.00
1 ,0 5 1 ,000.00
2 ,0 78 ,100.00
1 3 ,1 ^ 2 ,100.00
52,568,400
Dimes - - - - - - - - - - - - -
22 ,5^ 5 .000*00
1 ,6 0 7 ,000,00
5 ,79 ^ »700.00
29,9^6,700.00
299.^67,000
Total silver - - - - - - - -
39,291,301.50
2 ,902 ,139.50
1 0 ,5 3 6 ,706.50
5 2 ,73 6 ,1 ^ 7.5 0
371,330,095
Five-cent pieces - - - - - - -
6 ,1 1 3 ,600.00
1 ,1 1 3 ,000.00
2 ,6 2 1 ,910.00
9,848,510.00
196,970,200
One-cent pieces
- - - - - - -
8 ,^9 5 ,000.00
2 ,323 ,000.00
3 v6 6 3 ,850.00
14,481,850.00
1 ,448 ,185,000
Total minor - - - - - - - -
1 4 ,608 ,600.00
3 ,^3 6 ,000.00
6 ,285,760000
24,330,360.00
1 ,6^ 5 ,155,200
Total domestic coinage - - -
53 .s99 .901.50
6v3^,139.'50
16,822,466,50
7 7 ,066 ,507.50
2 ,0 16 , ^ 5 ,2 9 5
Half dollars - Regular - - - - n
- Commemorative:
Iowa Centennial - - - - - Booker T. Washington - - -
-
500 ,273*00
Quarter dollars - - - - - - - - -
50,028.50
17, *+93.700
/
100,057
1.700,938 ,
MINOR
->1
8
TREASURY DEPARTMENT
Washington
FOR IMMEDIATE RELEASE
Wednesday, July 30 > 19^7
Press Service
Wo. S-413
The Secretary of the Treasury today announced the
subscription and allotment figures with respect to the
current offering of 7/8 percent Treasury Certificates of
Indebtedness of Series G-1948, to be dated August 1, 19^7.
Subscriptions and allotments were divided among the
several Federal Reserve Districts and the Treasury as
.■
i
follows:
Federal Reserve
District
Total Subscriptions
Received & Allotted
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St, Louis
Minneapolis
Kansas City
Dallas
San Francisco
Treasury
$
TOTAL
17,693,000
649.743.000
20.365.000
34.076.000
10.690.000
30.950.000
135.505.000
30.445.000
32.544.000
65.256.000
23.293.000
72.173.000
2,105,000
$1,124,838,000
0O0
9
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS
Thursday, July 31 * 1947________
Press Service
No. S-414
The Treasury Department has given notice in the Federal
Register of July 31, 1947* that it is considering the amend
ment pf the Provisional Regulations issued under the Gold
Reserve Act of 1934, A hearing, under the Administrative
Procedure Act, will he held on August 11, 1947, at which
interested persons may appear.
The Treasury Department proposes 'to amend the regulations
so that licenses for the exportation of gold for industrial,
professional, or artistic purposes will he restricted to semiprocessed gold. If these amendments are put into effect,
licenses for the private export of har gold will no longer he
issued.
Under present regulations licenses are also granted for
the exportation of any gold refined from imported gold-hearing
material. The Treasury proposes to restrict thO granting of
such licenses to gold refined in this country oh a consignment
basis, provided the subsequent exportation of the refined gold
is to he made to the consignor of the gold-hearing material,
or to persons designated by him. Such exportations will also
he subject to the requirement that the gold-hearing material
has been exported from the country of origin and the gold re
fined therefrom is to he imported into the country of designa
tion in accordance with the laws and regulations of such
countries.
The proposed changes in the regulations are in furtherance
of the gold policy of the United States and of the objectives
of the International Monetary Fund. The Secretary of the
Treasury and the Board of Governors of the Federal Reserve
System on July 18, 1947 requested all American hanks, businesses
and Individuals to refrain from using their facilities and funds
for carrying out gold transactions at premium prices. The re
sponse to this request has been most encouraging. The Treasury
Department believes that the proposed changes in the regulations
will, with the continued cooperation of American business,
assure compliance with the United States Government's gold policy
and will contribute to international monetary cooperation. Othei
members of the Fund are also taking measures to Implement the
Fund's objectives with respect to gold.
The notice appearing in the Federal Register follows:
TREASURY DEPARTMENT
(31 CFR, PART 54)
Export of Gold and Re-export of Gold Refined from
Imported Gold-Bearing Materials
Notice of Proposed Rule Making
Notice is hereby given, pursuant to the Administrative
Procedure Act, approved July 11, 1946, that the Secretary of
the Treasury, with the approval of the President, proposes
to amend the Provisional Regulations issued under the Gold
Reserve Act of 1934 (48 Stat. 337). In this connection, a
hearing will be held in Room 4426 of the Treasury Department,
15th and Penna, Ave,, N.W., Washington, D,C., on August 11,
1947* beginning at 10:00 A.M., E.D.T., at which Interested
parties will be afforded an opportunity to present their
views.
Persons desiring to be heard must notify the Secretary
of the Treasury, attention Director of the Office of Inter
national Finance, prior to 5:15 P.M., August 7* 1947. It is
requested that such persons also submit, in writing, a sum
mary of their views prior to the date of the hearing. Per
sons not desiring to appear personally may submit a written
statement of their views or arguments prior to the date of
the hearing. All views, arguments, etc. should be submitted
in quadruplicate.
The proposed amendments will provide In substance that:
1.
Export licenses on form TGL-15 shall be issued with
the approval of the Secretary of the Treasury only for the
exportation of semi-processed gold upon application made on
form TG-15 showing to the satisfaction of the Mint and the
Secretary of the Treasury that the export or transport from
the continental United States is for a specific and customary
industrial, professional or artistic use, and not for the pur
pose of using or holding or disposing of such semi-processed
gold beyond the limits of the continental United States as,
or in lieu of, money, or for the value of its gold content;
and
2.
Export licenses on form TGL-16 for the exportation
of gold refined from imported gold-bearing material shall be
Issued only, upon condition that the importer has no right,
title or interest to the gold refined from the imported goldbearing material, that the refined gold remains the property
of the foreign exporter and is to be re-exported to such ex
porter, or pursuant to his order, and that the exportation of
11
such gold-bearing material from the country of origin and
the importation of such refined gold into the country or
countries of destination are authorized under the appli
cable laws and regulations of such countries.
The proposed amendments are to be issued under the
authority contained in section 3 of the Gold Reserve Act
of 1934 (48 Stat, 340, 31 U.S.O. 442).
/s/ Joseph J. 0 «Connell. Jr.
Acting Secretary of the Treasury
TREASURY DEPARTMENT
Washington
Press Servi
No. S - 4 1
Oft
FOR RELEASE, MORNING NEWSPAPERS.
Friday,., august 1, 1947.
Secretary Snyder announced today that arrangements have been
completed for banks and other financial institutions throughout
the country to cash Armed Forces Terminal Leave Bonds on and after
September 2 , 194.7.
These institutions will cash the bonds as agents of the Treasury
without cost to the veterans.
For the protection of the owners of
the bonds the treasury has asked that banks require presentation of
original discharge or separation papers as a means of identification.
If there are unusual circumstances where original discharge or
separation papers are not available the Treasury has requested paying
agents to exercise extra care and diligence to see that the right
person gets the money.
In this connection, all institutions acting as paying agents
for the Treasury have been reminded of the fact that Armed Forces
Terminal Leave Bonds cannot be sold, transferred or hypothecated
or loans and they have been specially cautioned against cashing
the bonds for anyone other than the person whose name is inscribed
on the bond.
The Secretary of the Treasury also urges veterans to consider’
carefully the fine quality of the security they are holding before
urning it in for cash. It is a demand obligation of the Government
carrying an exceptionally high rate of interest.
There^is no time limit within which a veteran must cash his
on , nor is there need for even the slighest delay in getting
cash for^his bond when he needs it. All He needs to do is to
present it to an authorized paying agent with proper identification
papers; meanwhile the bond will increase in value since it continues
o draw interest at the rate of two and one-half percent per annum
until it is paid any time prior to maturity.
Bonds should not be sent to the War, Navy or the Treasury
epartment, or the Veterans Administration for cash redemption but
be presented to l°cal banks and financial institutions
which are authorized to act as paying agents for the Treasury.
13
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Friday, August 1, 1947_____ _
"Press Service
-No, S-416
The Secretary of the Treasury, by this public notice,
invites tenders for $1 ,100,000,000, or thereabouts, of 91 -day
Treasury bills, for cash ahd-in exchange for. Treasury bills
maturing August f xj 1947* to be issued on a'discount basis
under competitive and non-competitive bidding as hereinafter
provided. The bills of this- series will be dated;August-7,
1947* and will mature November 6 > 1947* when the face amount
will be payable without interest. They will be issued in ’ •
bearer form only, and ’
in, denominations cf;$ 1 ,000, $5 ,000,
$10,0Q0,‘$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 daylight'saving time, Monday, August 4, 1947. Tenders will not be
.jre.ceiye,d at' the Treasury Department, Washington. Each tender
must be‘.for an eVen multiple of $1 ,000, and in the case of com
petitive tenders 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 appli
cation 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 2 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
w i n 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. Subject to these reservations *
non-competitive tenders for $200,000 or less without'* stated price
from any one bidder will be accepted in full at the average price
lIn three decimals) of accepted competitive bids. Settlement for
accepted tenders in accordance with the bids must be made or com
pleted at the Federal Reserve Bank on August 7 , 1947, in cash or
other immediately available funds or in a like face amount of
Treasury bills maturing August 7 , 1947. Cash and exchange ten
ders- will receive equal treatment. Cash adjustments will be
made for differences between the par value of maturing bills
accepted in exchange and the issue price of the new bills.
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 the Internal Revenue Code, or laws amenda
tory or supplementary thereto. 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 tax
ing 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 :i
(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, anct
such'bills are excluded from consideration as capital assets.
Accordingly, the owner of Treasury bills (other than life insur
ance 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 matu
rity during the taxable year for which the return is made, as
ordinary gain or loss.
v-'; •
Treasury Department Circular No* 4l8, as amended, and this
notice, prescribe the terms.of the Treasury bills and govern the
conditions of their issue. Copies of the circular mav be obtained
from any Federal Reserve Bank or Branch.
oOo
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS
Friday.. August 8, 1947
Prass Service
No. S-417
An influx of counterfeit American currency from Europe
has helped push bogus money seizures toward pre-war propor
tions, James J. Maloney, Chief of the United States Secret
Service reported today.
Chief Maloney reported to Secretary Snyder that such
seizures of bills and coins during the fiscal year ended
June 30, totalled $256,000, of which some $60,000 repre
sented counterfeits made abroad. Total seizures the pre
vious fiscal year were $75,000. There were 92 arrests and
69 convictions for counterfeiting in 1947.
Practically all of the alien contraband, which came In
on the persons of seamen and other travellers, or In mail or
bank remittances from abroad, was detected and removed from
circulation before it could reach United States storekeepers.
The notes were usually of poor quality types known to the
Service before the war, but there was evidence of some new
counterfeiting activity both at home and abroad.
Chief Maloney also reported that theft and forgery of
Government checks and bonds continued to mount. He urged
owners of Government obligations to exercise great care to
prevent such thefts; and merchants, banks and other handlers
o require positive Identification of persons presenting
such obligations for payment.
Secret Service head pointed out that recent legisry the Congress end signed by the President
Jfer*unal ^eave Bonds held by former service men
r4rfde?p!ion after September 1 , thus widening the
insi,r/?LCrl? lna:L dePredations. Mr. Maloney said banks can
on
^ lvf s against major losses If they will insist
thll t ^ P nr ^ ^ rgeT?apr s as Certification before cashing
also would be to the advantage of the
Terminal LeaveeBonds.
Separat:lon paDers * * * ashing
some Pf^nnn £he y2a£ ^ust olosed' the Service investigated
obtairert°«Lf? e^dJ £ easury cheoks' totaling $2,000,000, and
lnvesti?ationiyr,e'?^0^i!reStS and « f i c t i o n s . They completed
of f l R n n ^ n o oi\ 16*000 Gorged bonds, with a maturity value
in these°cases
reported some 300 arrests and convictions.
2
15
Enforcement work of the Secret Service during the year
produced several bizarre features. One was the appearance
on the West Coast of hand-drawn notes reminiscent of the
operations of the notorious "Jim the Penman" In the late
l800's.
The modern artist was skillful enough to pass nine of
his $5 and $10 bills on unwary shopkeepers. He is being
sought by the Treasury agents. "Jim the Penman", whose real
name was Emanuel Ninger, produced remarkably deceptive $100
notes over a period of years, working in a secret attic
studio In his home in a suburb of New York City. He fell to
grief when he plunked down one of his bills on a wet bar in
payment for a glass of beer. The ink ran, and the bartender
held Ninger, and called the police.
Another unusual case, in which a dead woman "Indorsed"
a check, Involved a $40 pension payment made out to the aged,
illiterate widow of a Cheyenne Indian who served the Army as
a scout during the Indian wars. She had indorsed all her
checks by t h u m b p r i n t s , T w o days after the woman died, rela
tives took her newly arrived check to the funeral home,
borrowed an ink pad, and affixed the thumbprint to make the
check negotiable.
The expedient was discovered, and payment on the check
was stopped by the Treasury. The relatives agreed to work
out the amount for the merchant to whom they had tendered
the check In payment for a grocery bill owed by the dead
woman.
One youthful forger donned women's clothes to obtain a
Job as a maid in a rooming house, where he was able to pilfer
Government bonds belonging to tenants.
Among forgers arrested was Alfred B. Parkhurst, of
Cambridge, Massachusetts, son of a Harvard University official.
Parkhurst stole more than 50 Government checks from Harvard
students before he was apprehended. He was sentenced to two
years In Federal prison, and subsequently to 24 to 4 years ad
ditional on State charges.
Juveniles continued to dominate the theft and forgery
racket. One highly organized ring of 15 to 18-year-olds
operating In Brooklyn, represented almost the entire cata
logue of social problems, including a "Fagin" mother who
demanded a part of the proceeds of the depredations of her
three children. Sentences of up to three years in prison
were imposed on the group.
1&
3
One 19-year-old seaman stole a number of blank Treasurychecks from his paymaster, and vent on a three-state $ 13,000
spending spree before being arrested by the Service, He
drew a five-year prison sentence.
Secret Service agents spent two and a half years track
ing down the foster parents of a young soldier’s wife, the
parents not only allegedly having secretly appropriated and
cashed the wife’s allotment checks while her husband was
fighting in the Pacific, but absconded with the coxiple’s
son, then 2 \ years old, when the imminent return of the
soldier threatened exposure. The young father saw his son
for the first time when he flew to Alaska after the appre
hension of the couple.
Treasury agents often were only hours behind the foster
parents and the child in a search that extended through many
States, and into Central America and Mexico, The trio finally
was traced to an Alaska-bound boat, and the fugitives were
apprehended after they landed at Juneau, Forgery charges
have been filed against the woman. The pair had resorted to
elaborate efforts to prevent apprehension, including trans
shipment of letters to be mailed from places remote from their
hideouts.
The most ambitious domestic currency counterfeiting, case
smashed by the Secret Service during the year brought a fiveyear prison term to the ringleader, Joseph Paternoster, Seven
accomplices received sentences ranging from two years’ proba
tion to five years’ imprisonment. Undercover operations by
an agent who worked his way into the confidence of the gang
broke the case, and culminated in seizure, at Newark, New
Jersey, of $110,000 in bogus $20 notes,
Kenneth Edward Stevens* alias Edward Hanley, was given
a four-year prison term on a plea of guilty after agents and
Gary, Indiana, police arrested him as the ’’lone wolf” maker
of another bogus $20 note,
A different type of counterfeiting sent John James
O ’Grady, 47 years old, to prison under a 33-year sentence.
O'Grady, who has a long criminal record, was arrested at
Fargo, North Dakota, on May 24, for issuing checks pur
ported to be drawn on the United States Navy, He victimized
storekeepers in some 17 cities before he was apprehended in
the uniform of a Naval warrant officer.
The 33-year sentence
imposed upon him is one of the heaviest on record for such an
offense.
q 0o
Washington
FOR RELEASE, AFTERNOON NEWSPAPERS
Mondavi August A 1947»
press Service
Noo S-4I 8
Treasury agents encountered a more desperate type of lawbreaker,
reminiscent of the violence of the old rum-running days, during the
1947 fiscal year, reports of enforcement heads to Secretary Snyder today
revealed»
Two Treasury investigators were slain while carrying out their
duties, both of them from ambush» In a third case a combined NarcoticsCustoms squad was forced to shoot it out with international dope smugglers
on the Califomia-Mexican border, an encounter which saw the Treasury car
riddled with bullets, but without an officer being touched; while two.
and possibly three of the smugglers we re fatally wounded»
In addition, warfare broke out within and between gangster groups,
particularly narcotics violators, with a number of assassinations re
moving principals in cases which were under investigation by Treasury
officers» These slayings occurred on both sides of the Mexican border,
as well as in a number of interior cities©
The situation was particularly tense along the United States-Mexican
border where rival gangs were battling for power at the same time that
United States and Mexican authorities were conducting a vigorous campaign
to break up their activities»
One of the Treasury officers slain was a Customs patrol inspector,
Clarence J* Trask, who was ambushed and killed on the Arizona border on
April 8 , 194-7o Trask was on watch for suspected liquor smugglers when
he was slain»
The other agent killed was Melvin J» Clark, an Alcohol Tax Unit
investigator, who was shot to death while participating with other of
ficers in a raid on an illicit distillery, near Homer, Georgia, on June 17,
1947» Following an intensive manhunt by posses organized by local, state
and federal officers, three brothers, alleged operators of the still,
were arrested and one of them has been charged with the murder of
Investigator Clark» Two other men are accused of complicity in the
operation of the illicit distillery^
Harry J* Anslinger, .Commissioner of Narcotics, and Sdson J0 Shamhart,
Deputy Commissioner of Customs, today revealed the details of the
•^western thriller*1 investigation that culminated in what is designated in
Department files as the nAffray at Woodbine Check0"
Woodbine Check is an obstruction, or drop, in the All-American
Canal, seven miles west of Calexico, California, some fifty yards north
of the International Boundary line»
- 2 In May 1947, following the annual harvest of the illicit opium crop
in Mexico, Customs officers learned of the presence in Calexico of
traffickers who were offering huge amounts of narcotics for sale0
It was decided to attempt to round up the entire gang, rather than
u0 depend upon catching the conoraband piecemeal as runners tried to get
it across the boider, and an attempt at undercover infiltration was
decided upon«
Customs and harcotics officers planned the strategy, and a seasoned
and versatile Narcotics agent was assigned to the difficult and dangerous
job of working his way into the confidence of the international smugglers,
who were reputedly headed by one Jesus Demare, alias Chiguild, self-"
styled A1 Capone of lower California0 The man has a reputation as a bank
robber and all around bad man«,
The undercover agent appeared in "Calexico 'equippe d with a background
as a »big Hollywood btryer» of narcotics0 Representatives of Mexican
narcotic's smuggling organizations lost no time in seeking him out 0 In
"F O
A M A
-P 4- "U-V
il •
•
“1 A •
I i
*■
'V .
fact,
one of
the.difficulties
s that several competing brokers, some
of whom may nave oeen hoping to deliver the same 16t of done, engaged in
a contest for the business«
A J
■
. Dong-drawn-out negotiations followed« The Treasury agent had to.be
equipped with a flash bank roll *— $2,5.00 made up to simulate $25,000 __
and he was in constant danger of being killed for his money«
.
Dissension among the smugglers added to the difficulties of the-agent,
One sale o f opium to the undercover investigator failed to materialize
when a woman employed to bring in the dope was caught by Customs officers'
in. a routine inspection« Many false appointments were made by the smug
glers as testso
b
Finally on the afternoon of June 22, 1947, the band gave short
notice of intention to deliver a fortune in dope, 13 8 cans of smoking
opium, at the Woodbine Check«
.
It was known that the smugglers were heavily armed, and the flat
^errain at the spot made it virtually impossible for fellow officers to
ake advance positions, and afford any protection to the Narcotics agent«
ine possibixiuies of ambush were well understood by the Treasury men,
but they decided to accept the risk«,'
*
*
Since automobiles seldom visit the spotj only one car could be sent
totend
fbgf “ers J°uld be suspicious.
However, it was found possible
severi f F Uf '
°mS °ff:loers
n f l e and field glasses to a building
snlnort 1
R ed/ ardS fr0m the rendezvous, and they rendered valuable
-pport to the xreasuljr. force in the battle that followed.
used w +uS <le°i d e d t o conceal as mary men as possible in the oar to be
co^artf
“
COTbr aSeN °
0ne Cust° ^ officer was hidden in the trunk
.
rear SOat was iemoved, and two Customs officers and
men w e i ar° ° h CSd gent WGre conoealed ’^ d e r blankets and. suitcases, These
men wer^ armed with pistols and riot guns«'
- 3 -
The agent who had conducted the negotiations with the smugglers
drove to the meeting place about 7 o ’clock in the evening, left the car
and walked some 50 paces to meet three of the smugglers who had appeared
on the bank of the canal0 They had automatic pistols strapped around
their waists« Any slip at that point would have been fatal to the agent,
as he was bet?;een his supporting officers and the smugglers«
On the pretense that his money was in the trunk of the car, the
Treasury agent maneuvered the smugglers, one of whom had the dope in a
sack, to the back of the automobile, and signalled to the concealed
officerso As they sprang out, the smugglers started shooting as they
retreated,.and the battle was on«
Other smugglers who had been concealed on the canal bank opened fire
with rifleso One smuggler who carried the sack of narcotics dropped to
the ground, and remained there throughout the engagement« He and the nar
cotics were captured« Treasury agents saw several of the gangsters go
down, as if hit« Treasury agents exposed themselves to direct fire to
maneuver for vantage spots« The firing continued until dark, when the
smugglers fled across the border, carrying their casualties«
Treasury officers later obtained positive evidence that at least
two, and perhaps three of the gang died of their wounds« A few hours
after the fight, the chief of police of the Mexican town of Mexicali was
found slain, and it is believed there may have been some connection
between the two incidents« The smugglers possibly believed the Mexican
officer had aided the United States officers in their investigation«
A second alleged member of the smuggling gang later was arrested on
the American side of the border« Indictments against Jesus Demara and
five alleged associates have been returned by a federal grand jury at
Los Angeles«
This spectacular case accounted for one of a number of important
narcotics seizures on the border©
The sentencing, on a plea of guilty, of Roy Dudley Linvilie, of
Phoenix, Arizona, to a 1 0 -year prison term for narcotics trafficking was
particularly gratifying to agents, as he was considered a major inter
national violator« A long and difficult undercover investigation by
Narcotics Agent John H0 Van Treel, who died shortly after completing the
case, brought Linvilie to book after he had successfully avoided convic
tion for a number of yedrs0
The 194-7 fiscal year saw a revival of illicit narcotics shipments
from Europe, a number of seizures o f .raw opium, smoking opium and heroin
being identified as of European origin. Customs officers at New York
made two of the largest heroin seizures in many years0
The Bureau of Narcotics, concentrating on interior traffickers,
completed important cases against major violators on both coasts, and
in Texas and North Carolina«
20
- 4 -
Statistics for the year showed a slight increase in seizures at ports
and borders, and a decrease in interipr points, w ith the combined figure
of 5,957 ounces, compared with 8 ,7 8 2 ounces in the 194-6 fiscal year0
Total seizures of bulk marihuana were 23,4.88 ounces in 1947, com
pared to 13,513 ounces in 1946«
The Bureau of Narcotics reported a continuing increase in the number
of violators arrested, 2,855 persons in 1947, compared Ydth 2,620 in
1946o
Commissioner Anslinger reported that narcotics in the illicit
traffic continued scarce, with prices high; and that this scarcity was
reflected in a large number of thefts from legitimate suppliers, as well
as numerous prescription frauds0
0O0
21
TREASURY DEPARTMENT
Washington
FOR IMMEDIATE RELEASE,
Monday, August
1947
Press Service
No^ S-419
, \ Secretary Snyder today made public the following letter to
Admiral Joseph F. Farley, Commandant of the United States Coast
Guardi in observation of the one hundred and fifty-seventh
anniversary of that service:
On the occasion of the one hundred end fifty-seventh
anniversary of the founding of the United States Coast
Guard, I take great pleasure in extending to yon, and to
all officers and men under your command, my sincere and
hearty congratulations.
The achievements of the Coast Guard during the lonn
years of its service to the nation are deserving of the
p«3™?3™ Praise* During the recent conflict, the .Coast
Guard made vital contributions to the defeat of the eomfaotfeS14! a*2 fche,deeds
heroism performed in that war
testify to the valor and devotion to duty that have
always characterized the personnel of the Coast Guard.
ih enviable war record behind it the Coast
thatdnr&«L2??<£ retJ}r?ed t2^lts humane peacetime mission,
3 2 2 §S* m I t « « ! '“ 0' to
*m
" r "!s “ “ vnpMkr
I’s s a f s y s ^ s s
<’" " 4
Sincerely,
(Signed) John W, Snyder
Secretary of the Treasury
oOo
OO
¿Z
TREASURY DEPARTMENT
Washington
FOR RELEASE9 MORNING NEWSPAPERS
Tuesday, August 5, 1947 .
Press Service
No. S-420
The Secretary of the Treasury announced last evening
that the tenders for $1,100,000/000, or thereabouts, of 91 -day
Treasury hills to be dated August 7 and to mature November.
1947, which were offered on August 1, 1947, were opened at the
Federal Reserve Banks on August 4.
The details of this issue are as follows:
Total applied for - $1,601,741,000
Total accepted
- 1,103,077,000 (includes $19,612,000 entered
on a non-competitive basis and accepted
in full at the average price shown below)
Average price
-
99*813 Equiv. rate of discount approx,
0.740$ per annum
Range of accepted competitive bids:
High t 99*674 Equiv. rate of discount approx, 0.498$ per annum
Low -99.810
"
"
M
"
0.752$ "
(28 percent of the amount bid for at the low price was accepted)
Federal Reserve
District
Boston
New York
Philadelphia
Cleveland '
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Total
Applied for
$
TOTAL
1,325,000
1,434,412,000
15,186,000
1 ,230,000
5,235,000
2,655,000
108,098,000
2,205,000
4,065,000
8,350,000
13,530,000
5,450,000
$1 ,601,741,000
oOo
Total
Accepted
$
1,325,000
1 ,013,132,000
4,150,000
958,000
5 ,235,000
2,6l9‘
,000
50,602,000
2 .205.000
3 .921.000
6 ,910,000
8,010,000
4,010,000
$1 ,103,077,000
24
TEEASUHC DEPARTMENT
Washington
FOR RELEASE NEWSPAPERS
Sunday« August 10, 19¿7
Press Service
No. S-4.21
Treasury law enforcement efforts directed to the protection of the
revenues were featured during the 1947 fiscal year by record breaking
recoveries from combined income tax investigative efforts of Intelligence
Agents, Revenue Agents, and Deputy Collectors of the Bureau of Internal
Revenue.
Secretary Snyder today reported, on the basis of reports from
Internal Revenue Commissioner George J. Schoeneman, total additional
assessments of taxes over and above original returns filed by taxpayers,
plus penalties, were i|f>l,938 ,18 3 , 000, compared with &i, 280,218,000 in the
1946 fiscal year. *
At the same time, Acting Commissioner Frank Dow reported that
activities of the Bureau of Customs directed to the protection of Customs
revenues uncovered false and fraudulent declarations on imported
merchandise having a forfeiture value of more than %1 , $00,000, as well as
substantial recoveries in forfeited merchandise and penalties from casual
smuggling attempts by persons crossing-the borders or entering at air and
seaports*
These attempts to enter merchandise without payment of duty
increased with expanding world travel, with small and highly valued
articles such as watches, jewelry, perfumes and such being involved most
frequently. Increased international air travel gave Customs a new enforce
ment problem. However, officials reported no evidence of large scale,
organized smuggling attempts.
The Alcohol Tax unit of the Bureau of Internal Revenue, responsible
for safeguarding revenues from alcoholic beverage taxes, reported some
42,000,000 recovery from property seized and taxes and penalties assessed.
However, largely' due to effective enforcement of sugar rationing and raw
materials controls, illicit distilling operations as reflected by seizures
and arrests declined, with arrests and convictions at the lowest in any
year since the repeal of prohibition.
Deputy Commissioner of Internal Revenue Carroll E, Mealey, reported
seizures of stills, mash and automobiles used in illicit operations were
the lowest since the fiscal year 1943 > which followed the imposition of
sugar rationing.
Still seizures during the fiscal,year 1947 were 6 ,0$3, compared to
6 ,6 4 1 in 1946; and arrests totalled 7 ,864 , compared with 8 ,2 4 6 in 1946.
-
2
-
25
Sugar rationing to consumers ended in June, and Mr..Mealey reported
evidence of an upward trend at .the year end in illicit distillery operations.
With the further removal of controls in July, the Unit prepared to combat
increasing pressure from this source#
The Unit continued to bring to book wartime black market liquor
operators, with 49 persons convicted during the year for such violations.
The joint OPA-Alcohol Tax sugar program during the year resulted in the
conviction of 193 persons and the suspension of more than $00 merchants
from dealing in sugar.
Th.e Alcohol Tax Unit continued its campaign to safeguard the public
from dangerous weapons brought in as trophies of war, conducting some
43,000 investigations under the National Firearms Act which it enforces#
These efforts resulted in registration of 4*000 automatic weapons, seizure
of 800, and the rendering inoperative of 2 , 500#
W. H. Woolf, Chief of the Intelligence Unit of the Bureau of Internal
Revenue,,-which is spearheading the Treasury’s drive against tax evaders,
reported record breaking figures for cases under investigation, indictments
and convictions.
He reported that the Intelligence Unit, in cooperation with Revenue
Agents and deputy collectors investigated 4,125 cases of apparent tax fraud;
that in cases recommended for criminal prosecution, 334 persons were indicted,
while 182 out of 190 individuals brought to trial were convicted*
This phase of the Bureau’s tax enforcement alone resulted in additional
taxes and penalties assessed of 4200,000, 000*
Typical cases closed during the year included a North Carolina couple
and the wife’s mother convicted for tax fraud in connection with a booming
business supplying beer and other merchandise in the vicinity of an Army
camp; and a candy and liquor store proprietor in Nebraska who profited
tremendously from a similar proximity to an Army air base#
A New York war contractor was assessed additional taxes and penalties
m excess of half a million dollars aid given a suspended prison sentence
and a heavy fine# He understated his business income by charging off -La.vxsli
personal expenses on company records*
Two Oklahoma hotel
410, 0 0 0 -each for frauds
in taxes and penalties;
in a case that involved
men were given three year prison terms, and fined
that also involved more than half a million dollars
and a Texas liquor dealer vías given an 8 year term
nearly a million dollars in black market profits#
A Colorado dealer in agricultural products was given a fifteen months'
prison term, and faced additional taxes and penalties in excess of 4800,000#
, Other criminal cases involved professional men, gamblers, slot machine
operators, restaurant and night club proprietors, a chicken hatchery
business, jewelers, a nursery operator, and many others.
One important series of excise tax cases broke up a scheme devised by a
proup of furriers in an attempt to defraud the Government; and other cases
involved failure of employers to account for taxes withheld from employees
wages#
~o 0o~
STATUTORY DEBT LIMITATION
AS OF JULY 31, 19A7
august 7 , 1947
26
Section 21 of the Second Liberty Bond Act, as amended, provides that the face
amount of obligations issued under authority of that Act, and the face amount of
obligations guaranteed as to principal and interest by the United States (except
such guaranteed obligations as may be held by the Secretary of the Treasury), "shall
not exceed in the aggregate $275,000,000,000 outstanding, at any one time* For
purposes of this section the current redemption value of any ob?d.gation issued on a
discount basis which is redeemable 'prior to maturity at the option of the holder
[shall be considered as its face'amount * 11
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
$275,000,000,000
Outstanding July 31* 194-7
Obligations issued under Second Liberty Bond Act, as amended
Interest-bearing
Treasury bills.............. $ 1 5 ,756,473,000
Certificates of indebtedness
25,122,224,000
Treasury notes............. ...13»734» 134» 100 $ 54,612,831,100
Bonds
Treasury................ ..
1 1 9 ,322,877,950
Savings (current redemp. value) 51,551,548,503
Depositary...........
328 , 509,500
Armed Forees Leave........
1,623,793,975 173,026,729,928
Special Funds
Certificates of indebtedness 14,306,250,000
Treasury notes............ .
1 4 ,210» 130» 000 28,516,380,000
Total interest-bearing..... ........... .
256, 155,941 ,028
Matured, interest-ceased..............
•
216,574,371
Bearing no interest
War savings stamps...........
68,091,480
Excess profits tax refund bonds
17,736,331
Special notes of the United States:
Internat'l Bank for Reconst.
and Development series....
415,785,000
Internat'l Monetary Fund series 1,694,000,000
2,195,612,811
Total........ ........ ......................
258 , 568,128,210
Guarantèed obligations (not held by Treasury)
Interest-bearing
Debentures: F.H.A.............
34,116,636
73,836,776
Demand obligations: C.C.C. / . . . ____ 39,720,140
Matured, interest-ceased......... .............
6,134,500
79,971,276
Grand total outstanding............. .............
258,648,099,486
Balance face amount of obligations issuable under above authority... 16,351,900,514
Reconcilement with Statement of the Public Debt ~ July 31, 1947
(Daily Statement of the United States Treasury August 4, 1947)
Outstanding —
Total gross public debt........................... ...... ..... ..
259,447,739,778
Guaranteed obligations not owned by the Treasury.
_______ 79,971,276
Total gross public debt and guaranteed obligations.......... .
259,527,711,054
Deduct - other outstanding public debt obligations
not subject to debt limitation............ .
879 ,6 11,5 6 8
258,648,099,486
S-422
TREASURY DEPARTMENT
Washington
FOR REÈEASE, MORNING ‘P W S M P E R S ,
Friday; August 8, I947
•!•*,'
Press Service V
Nò. S-423
The Secretary of the Treasury, by this public notice,
' ‘•
invites tenders for $1,200,000,000, or thereabouts, of ,91-day
Treasury bills, for cash land1in exchange for Treasury bilis
maturing August 14, 1947, "to be issued ori a discoiint basis-’ ‘ '
under competitive and non-competitive bidding as hereinafter
*
provided* The bills of this series will be dated August 14, 1947,
and will mature November 131*19^7, when the face1amount will be
payable without interest. • They will be issued ttf 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-hodr, /two"d*clock p.m.; Eastern
daylight Saving time, •Mobdày, August 11 '1947, Tenders will ■
hot be received dt the Treasury Department, Washington. Each
tender must be for ah eve#^ifttiple ^df^l^OOÔy, and in the case!
of competitive tenders the price ciféred must be exprès sed'on ;
the basis of 100, with not afore than three decimals, efg.-,
*
99*925. ; Fractions may not be used. It is urged that téWders
be made on'the printed forms and forwarded in the special
envelopes whicH'Will be supplied by Federal Réserve Banks or
Branches oh appfi cat ion therefor.
;x*«.?.*/ :»n
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1
Tenders will 've received without deposit from incorporated
banks and trust companies'and from responsible and recognized { ’
dealers in .investment securities i ; Tenders >frora ethers must: be
accompanied by payment of 2 'percent-ef thé ^àbé' àteount of ‘ Treasury bills applied for, unless the tenders are accompanied
by an express’guaranty -of payment bV an incorporated Wank"dr
trust company. '
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Immediately after* the closing1 hour, tenders ‘
will be opened
at the Federal Reserve Banks and Branches, following which pub
lic announcement will be made by tlbe Secretary of the Treasury
of the amount and price range of accepted bids. Those submitting
tenaers will be advised of the acceptance or rejection thereof,
ihe 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. Subject to these
reservations, non-competitive tenders for $200,000 or less withu stated price from any one bidder will be accepted in full at
hi H«jaVeQa?f i
three decimals) of accepted competitive
oias. Settlement for accepted tenders in accordance with the
Dias must be made or completed at the Federal Reserve Bank on
2
August 14, 1947, in cash or otli$T;iSnédiately available funds
or in a like face amount of Treasury'bills maturing August 14,
1947* Cash and exchange tenders will receive equal treatment.
Cash adjustments will be made for differences between the par
value of maturing bills accepted in exchange and the issue
price of the new bills*
The income derived from Treasury bills, whether interest,,
or gain from the sale or other ■.disposition of the bills, shall t
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 the Internal Revenue Code or leys, ...
amendatory? of supplementary thereto., The bills shall be eubj^
ject. to estate# inheritance, gift or other excise .taxes, whether
Federal or State, but shall be exempt from,- all taxatipn.Jiow ^ r .
hereafter imposed on the principal or interest thereof
an^,r ,
State, or any;..of the possessions of the United States, or by any
lofeal
For purposes of 'taxation, the amount of
discount vat #hich Treasury bills áre; originally sold oy .the,^,..,^
United /States '.shall be considered tó be ’interest* * Under .Sections
'42vahd 117(aj‘
(i|- of .the Internal Revenue- Code,, as amended by
SecÜon>dÍ5 bf^the Revenue Act of;-1941;' thé 'amount- of disqount^at
which bills issued’hereunder are sold shall*ndt be considered^fo
accrue .until {Such bilIs shall be sold, redeemed or otherwise....
dispoaedjof., and such bills are excluded from con side rati on ya s
capital assetsV Accordingly, the/cyner of Treasury bills,Ccthcr
than life.insurance;companies) Issued.hereunder•need include in
his Income tax* return only the.difference beiyeêh the price .paid
for such" bills,¿ whether on original *£ssSie.,ij^^^
Pur~
'chase,' andi;:the amouht actually ‘received.either, upon sale or
redei^piion at maturity :during the taxable ,year,for which the re
turn. ?I s* made y ' * ú s; ordinary gain or '1os s. . ,, ,.V.. .
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r .i Treasury department Circuíar Uo. 41$, as amended, and this
notice ^prescribe the-Vterms of tbe. Treasury'bills and govern
the conditions,of their -issue. qdpies^df the circular may be
obtained fromhany Federal Reservé Bank.óf Branch♦
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28
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Tuesday, August 12, 1 9 4 7_____ _
Press Service
No. S-424
The Secretary of the Treasury announced last evening
that the tenders for $1,200,000,000, or thereabouts, of 91 -day
Treasury bills to be dated August 14 and to mature November 13,
1947, which were offered on August 8y 1947, were opened at the
Federal Reserve Banks on August 11.
The details of this issue are as follows:
Total applied for - $1,668,267,000
Total accepted
- 1,201,158,000
(includes $22,907*000 entered
on a non-competitive basis and accepted
in full at the average price shown below)
Average price
- 99.813
Equiv. rate of discount approx.
0.741$ per annum
Range of accepted competitive bids:
High - 99.905
Low - 99.810
Equiv. rate of discount approx. 0.376$ per annum
"
"
"
"
M
0.752$ "
(46 percent of the amount bid for at the low price was accepted)
Federal Reserve
District
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
$
TOTAL
Total
Accepted
Total
Applied for
1 ,985,000
1,529,900,000
13 .388,000
2 ,470,000
1,410,000
3,032,000
91,259,000
4,205,000
1,695,000
6,993,000
4,265,000
7,665,000
$1 ,668,267,000
0 O0
$
1 ,607,0001 ,127 ,651,000
2,740,000
1,722,000
1,410,000
3,011,000
39,163,000
3 ,989,000
1,317,000
6 ,880,000
4,057,000
7 ,611,000
$1 ,201,158,000
29
TREASURY DEPARTMENT
Washington
• <» ’ < »V>
FOR RELEASE, MORNING NEWSPAPERS'
Friday, August 15, 19^7
- * .:;
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.*• * ‘ •
Press Service
v, S-425
The Secretary of the Treasury, by this public notice,
invites tenders for $1,2,00,000,000, or thereabouts, of 91-day
Treasury bills# for cash and in exchange for Treasury bills
maturing August 21, 19^7, tô be^issued op a discount basis
under competitive and non-competitive bidding: as hereinafter
provided. The bills of this series, will be dated August 21,
1947, and will mature November 20, 19^7, when the face ampunt
will be payable without interest. They will be issued in
bearer form only, and in *denominations of $1,000, $5,Q00,
$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
daylight saving time, Monday, August 18, 19^7. Tenders will
not be received at the Treasury Department, Washington. Each
tender must be for an even multiple of $1,000, end in the
case of competitive tenders 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 thè printed forms and forwarded in the special
envelopes which will be supplied by Federal Resérve Bank?,
or Branches on application therefor.
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Tenders will be received without deposit'from Incprpo-f
rated banks and trust companies and from responsible and . ;
recognized dealers in investment securities* Tenders from
othersmust be accompanied by payment of 2 perpent of tha 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. '
‘
\ -s&r*
r Immediately after the closing hour, tenders will be
opened at the Federal Reserv’e* Banks and Brancbes, 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. Subject to these reservations, non-competitive tenders
for $200,000 or less without stated price from any one bidder
will be accepted in full at the average price (in three decimals)
r '■ v*' '*
of accepted competitive bids, settlement for accepted tenders
in accordance with the bids must be made or completed at the
Federal Reserve Bank on August 2T* 1947# in ¡cash or'other im
mediately available funds or in a like face amount;. of^Treasury
bills maturing August 21, 1947T "Cash arid exchange tenders will
receive equal treatment. Cash adjustments will be made for
differences between the par- value of maturing bills accepted
in exchange and the. issue price of the new bills.
The income derived from Treasury bills., whether .interest
or gain from.the sale or other disposition of thè bills, shall
not have any exemption, as such, and loss from the sale or
other disposition; of. Treasury bills shall not have any special
treatment, as.such, under the Internal Revenue Code, or laws^
amendatory or supplementary thereto. The bills shall be sub
ject to estate, inheritance, gift or other excise taxes,
whether Federal or State, but shall be exempt from all tax
ation now or hereafter imposed on the-principalor'interest
thereof by any State, or any of the possessions of the United
States, or b y ’any.local taxing authority. For purposes -of /
taxation the amount of discount at which Treasury bills ai?e
originally sold by the United States shall be considered tó
be interest. Under Sections 42 and 117(a)( 1), of the Internal
Revenue Code, as amended by Section 11$ 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 iri his
income tax return only the difference between the price paid
for such bill sV ’
ifhèther o n .original issue or on subsequent
purchase, and thè 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.
» f^ 4 ' ;
Treasury Department Circular No. 4l8, as amended, and
this notice, prescribe the terms of the Treasury bills and
govern the -conditions of their issue . Copies of the circu
lar may be-obtained from any Federal Reserve Bank or Branch.
>
. oOo
30
treasury department
Washington
FOR RELEASE, MORNING NEWSPAPERS
Monday, August 18, 19^7
Press Service
No. S-426
Secretary Snyder announced today that the Treasury would
offer on August 20 a 10-month 7/8 percent certificate in ex
change for the 7/8 percent certificates maturing September 1,
19^7 , in the sum of $2,3^1,000,000.
The Secretary also stated that early in September the
Treasury would offer a 12-1/2 month 1 percent note'in ex
change for the 1-1/4 percent and 1-1/2 percept Treasury notes
falling due September 15, 19^7, amounting to $1,687,000,000
and $2,707,000,000, respectively.
He further, indicated that the Treasury Department wil1
offer in the latter part of September a 2-1/2 percent nonmarket able bond, dated October 1, 19^7, subscriptions to
which will be confined, in general, to institutional inves
tors holding savihgs, insurance, and pension funds, and
commercial banks holding savings deposits. Subscriptions
to the new issue will be limited in accordance•with a for
mula which will be;announced later.
The Secretary pointed out that United States Savings
Bonds paying 2.9 percent interest on amounts up to $3,750 "
a year and 2-1/2 percent interest on f\jtrther amounts up to
an additional $100,000 a year are already available to in
dividuals and other classes of investors, and that the
offering of these securities will be continued. He said
that it was his intention to supplement such issues by
the offering of securities suitable primarily for institu
tional Investment whenever the situation warrants such
action.
" ,'i'- • ' B
oOo
31
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS
Friday, August 1 5 » 1 9^7_______
Press Service
No • S-427
During the month of July, 19^7, market transactions
in direct and guaranteed securities of the Government
for Treasury investment and other accounts resulted in net
sales of $609,139,700, Secretary Snyder announced today.
0 O0
TREASURY DEPARTMENT
W ashington
P r e s s S e r v ic e
N o . S-4 2 8
f o r im m e d ia t e r e l e a s e ;,
Wednesday, A u g u st 1 3 , 1947
32
The B u reau o f Customs announced to d a y t h a t p r e lim in a r y d a ta on im p o rts o f
c o tto n and c o t t o n w aste c h a r g e a b le t o th e q u o tas e s t a b l is h e d b y th e P r e s id e n t ’ s
p ro cla m a tio n o f Septem ber 5 , 1 9 3 9 , a s amended, f o r th e p e r io d Septem ber 2 0 ,
1946, t o A u g u st 2 , 1 947, a re a s f o llo w s :
COTTON (o th e r th a n l i n t e r s )
( I n pounds)
C o u n try o f
O r ig in
Under 1 -1 / 8 ” o t h e r
th a n rough o r h a r s h
under 3/4”
E s t a b li s h e d Im p o rts S e p t .
Q uota
2 0 , 1 946, t o
A u g . 2 . 1947
E gyp t and th e
A n g lo -E g y p tia n
Sudan* « .• • • • • • •
B r i t i s h I n d i a .••
C h in a ..............................
M e x i c o ...* • .
B r a z i l .• • • • • • • * .
Union o f S o v ie t
S o c i a l i s t Repub
l i c s . ...• • • • • • ? •
A r g e n t i n a .* ••••*
H a i t i . • * .• • • # • • •
E cu ad o r*• • • • • • • •
H o n d u ra s..* • • • .•
P a r a g u a y .• • .* • • •
C olom bia*• • • * .• •
I r a q .................................
B r itis h E ast
A f r i c a * . .* • • « • • •
N e th erla n d s E a s t
I n d ie s * • • • • • • • « *
B arb ad os** ..• • • •
O th er B r i t i s h
West I n d ie s l / . *
N ig e r ia * * . , . . « • •
O ther B r i t i s h
West A f r i c a 2 / .*
O ther F re n ch
A f r ic a 3 / . . . . . . .
A lg e r ia and T u n is ia
K uw ait** . • . « • • . *
783,816
247 ,9 5 2
2 ,0 0 3 ,4 8 3
1 ,3 7 0 ,7 9 1
8 ,8 8 3 ,2 5 9
6 18,723
4 7 5 ,1 2 4
5 ,2 0 3
237
9 ,3 3 3
752
871
124
195
2 5 ,3 4 8
5 ,081
■—
—
—
—
—
2 ,2 4 0
7 1 ,3 8 8
2 1 ,3 2 1
5 ,3 7 7
1 6 ,0 0 4
689
1 4 ,5 1 6 ,8 8 2
1/
2/
3/
4/
5/
*
1 2 ,1 6 4
2 47,952
1 ,1 6 7 ,5 7 8
344
8 ,8 8 3 ,2 5 9
618,723
1 -1 / 8 ” o r more
b u t l e s s th a n
1 -1 1 /1 6 ” 4/
Im p o rts S e p t .
2 0 , 1 94 6 , t o
A u g . 2 . 1947
L e s s th a n 3/4u
h a r s h o r ro u g h
5 /
Im p o rts S e p t . 2 0 ,
1 94 6 , t o A u g . 2 ,
1947
36 , 4 1 5 ,1 74
9 , 209,346
—
«
3 1 ,9 0 0
—
—
—
—
—
—
a , 2 15 ,3 5 8
—
—
—
—
—
—
—
—
—
rnm
—
-
—
-
—
—
mm
mm
-
—
—
•■
w
Ml ?
mm
mm
mm
mm
mm
—
1 0 ,9 6 0 ,4 4 9
—
45,656,420
O th er th a n B a rb a d o s, Bermuda, Ja m a ic a , T r i n i d a d , and Tobago*
O th er th a n G o ld ;C o a s t and N i g e r i a .
O th er th a n A l g e r i a , T u n i s i a , and M adagascar*
E s t a b lis h e d Q uota « 4 5 ,6 5 6 ,4 2 0 .
E s t a b lis h e d Quota ** 7 0 ,0 0 0 ,0 0 0 .
See F o o tn o te n e x t p a g e .
2 3 7 ,6 0 0
a , 452,958
33
- 2COTTON PASTES
( in pounds)
COTTON CARD STRIPS made from c o t t o n h a y in g a s t a p le o f l e s s th a n 1 -3 / l6 in c h e s
i n l e n g t h , COMBER WASTE, LAP WASTE, SLIVER WASTE, AND ROVING WASTE, WHETHER
OR NOT MANUFACTURED OR OTHERWISE ADVANCED IN VALUE: P r o v id e d , how ever, t h a t
n o t more th a n 33-1/3 p e r c e n t o f t h e q u o tas s h a l l be f i l l e d b y c o tto n w astes
o th e r th a n comber -wastes made from c o tto n s o f 1-3 /1 6 in c h e s o r more in
s t a p le le n g t h i n th e c a se o f th e f o llo w in g c o u n t r ie s ;
U n ite d Kingdom ,
F r a n c e , N e th e r la n d s , S w it z e r la n d , B e lg iu m , Germ any, and I t a l y ;
#
#
C o u n try o f O r i g in ;
. ♦
•
E s t a b li s h e d ; T o t a l im p o rts ; E s t a b li s h e d : Im po rts
TOTAL QUOTA ; S e p t . 2 0 , 1946 , :
33-1/3% o f : S e p t .2 0 ,1 9 4 6
•• t o A u g .2* 1947 : T o t a l Q uota : t o A u g .2 ,1 9 4 7
y
U n ite d K in g d o m .. . , • •
Canada. ............................... .
Fran ce*.. . . . . . . . . . . . .
B r it is h In d ia * . . . . . .
N eth erla n d s
S w itz e r la n d * .................. *
B e l g i u m ................................
Jap an ........................ ..
C h in a * . . . . . . . . . . . . . .
E g y p t .......................................
C u b a ...........................................
Germany............... ....................
I t a l y . ......................................
T o t a ls
4 ,3 2 3 ,4 5 7
2 39 ,6 9 0
2 27,420
6 9 ,6 2 7
6 8 ,2 4 0
44-,388
3 8 ,5 5 9
3 41,535
1 7 ,3 2 2
8 ,1 3 5
6 , 544
7 6,32 9
2 1 ,2 6 3
5, 482,509
1 , 4 a , 152
6 9 ,75 7
7 5 ,8 0 7
6 9 ,6 2 7
—
»
2 2 ,7 4 7
1 4 ,7 9 6
1 2 ,8 5 3
"W
-
mm
—
145 ,7 3 1
tmm
-
6 ,3 4 7
—
y-p
mm
_
2 5 ,4 4 3
7*088
1 ,5 9 9 ,8 8 6
1/ In c lu d e d i n t o t a l im p o r ts , column 2*
The P r e s i d e n t s p r o c la m a tio n o f Ju ne 9 , 1947, p r e s c r ib e d a su p p le m e n ta l
q u ota o f 2 3 ,0 9 4 ,0 0 0 pounds o f c o tto n h a v in g a s t a p le o f 1 -3 / 8 in c h e s o r
more b u t l e s s th a n 1-11/16 in c h e s i n le n g t h f o r t h e p e r io d Ju ne 14 t o
Septem ber 2 0 , 1 94 7 , w hich q u ota was f i l l e d on Ju n e 2 3 , 1947*
TREASURY DEPARTMENT
W ash in gto n
FOR IMMEDIATE RELEASE,
Wednesday, A u g u st
1 3 »
P r e s s S ®^Yi c e
No# S-4 2 9
1947*
The B u reau o f Custom s announced to d a y p r e lim in a r y f i g u r e s show ing
th e im p o rts f o r c o n su n p tio n o f com m odities on w h ich q u o tas were
p r e s c r ib e d b y th e P h il ip p in e T rad e A c t o f 1 94 6 , from Ja n u a r y 1 , 1947,
t o Aug\|gpfc 2 , 1 947, i n c l u s i v e , a s f o llo w s :
P ro d u cts o f
:
P h ilip p in e I s la n d s :
B u tto n s
E s t a b li s h e d Q uota
Q u a n t ity
8 5 0 ,0 0 0
:
:
U n it o f
Q u a n tity
G ross
C ig a r s
2 0 0 ,0 0 0 ,0 0 0
Number
Coconut O i l
4 4 8 ,0 0 0 ,0 0 0
Pound
: Im p o rts as o f
: A u g u st 2 , 1947
6 4 ,5 5 1
3 ,1 2 8 ,4 3 4
1 4 ,7 7 3 ,9 0 2
Cordage
6 ,0 0 0 ,0 0 0
it
1 ,3 6 3 ,7 5 6
R ice
1 ,0 4 0 ,0 0 0
n
50
1 ,9 0 4 ,0 0 0 ,0 0 0
u
S u g a r s , r e f in e d )
u n r e fin e d )
T obacco
6 ,5 0 0 ,0 0 0
ft
762,662
TREASURY DEPARTMENT
W àsh in gto n
P r e s s S e r v ic e
N o. S-4 3 0
FOR IMMEDIATE RELEASE
Wednesday* A u g u st 13* 1947
The Bureau o f Custom s announced to d a y p r e lim in a r y f i g u r e s show ing
th e im p orts f o r consum ption o f com m odities -w ithin q u o ta l i m i t a t i o n s
p ro v id e d f o r under tr a d e agreem en ts* from th e b e g in n in g o f th e q u ota
p e r io d s to A ugust 2* 1947* i n c l u s i v e * a s f o llo w s ?
Commodity
j U n it : Im p o rts a s
E s t a b li s h e d Quota
:
o f j o f A u g . 2*
. ; P e r io d and C o u n tr y ;Q u a n t it y ?Q u a n t ity : 1947
Whole M ilk * f r e s h
o r so u r
C a le n d a r y e a r
3*000*000
G a llo n
3*742
Cream* f r e s h o r so u r
C a le n d a r y e a r
1 *5 0 0 ,0 0 0
G a llo n
969
F is h * f r e s h o r fro z e n *
f i l l e t e d , e t c .* cod*
haddock* hake* p o llo c k *
cusk* and r o s e f i s h
C a le n d a r y e a r
23*906*423
Pound 14*057*399
90*000*000
60*000*000
Pound Quota F i l l e d
Pound Q uota F i l l e d
W hite o r I r i s h p o t a t o e s :
c e r t i f i e d se e d
o th e r
12 months from
S e p t . 15* 1946
Cuban f i l l e r to b a c c o un~
stemmed or stemmed ( o th e r
th a n c i g a r e t t e l e a f to b a c c o )
and s c r a p to b a c c o
C a le n d a r y e a r
Pound
(unstemmed
2 2,0 0 0 * 000 e q u iv a le n t )
Quota
Fille d
Red C ed ar S h in g le s
C a le n d a r y e a r
1*380*300
S q u a re
1*097*705
M o lasses and s u g a r s ir u p s
c o n ta in in g s o lu b le non
su g a r s o l i d s e q u a l t o
more th a n
o f to ta l
s o lu b le s o l i d s
C a le n d a r y e a r
1*500*000
G a llo n
3 6 4 ,8 8 1
6 %
36
TREASURY DEPARTMENT
W ash in gton
FOB IMMEDIATE RELEASE,
W ednesday, A u g u st 1 3 , 1947
P r e s s S e r v ic e
No* S-4 3 1
The B u reau o f Customs announced t o d a y p r e lim in a r y f i g u r e s show ing th e
q u a n t it i e s o f wheat and w heat f l o u r e n t e r e d , o r w ithdraw n from w arehou se, f o r
consum ption under th e im port q u o ta s e s t a b l is h e d in th e P r e s i d e n t ’ s p roclam a
t io n o f May 2 8 , 1 9 4 1 , a s m o d ifie d b y th e p r e s i d e n t ’ s p r o c la m a tio n s o f A p r i l 1 3 ,
1942, and A p r i l 2 9 , 1 94 3 , f o r th e 12 months commencing May 2 9 , 1 94 7 , as
f o llo w s :
/
Wheat
C o u n try
of
O r ig in
Canada
C h in a
Hungary
Hong Kong
Japan
U n ite d Kingdom
A u s t r a li a
Germany
S y r ia
New Z e a la n d
C h ile
is
N e th erla n d s
A rg e n tin a
Ita ly
Cuba
Fran ce
Gree ce
M exico
Panama
Uruguay
P o la n d and D a n zig
Sweden
Y u g o s la v ia
Norway
C an ary I s la n d s
Rumania
Guatem ala
B r a z il
Union o f S o v ie t
S o c i a l i s t R e p u b lic s
B elgium
E s t a b li s h e d :
Im p o rts
Q uota
sMay 2 9 , 1 947, t o
: A u g u st 2 , 1947
(B u s h e ls )
(B u s h e ls )
7 9 5 ,0 0 0
7
*
100
100
100
100
2 ,0 0 0
100
2 ,0 0 0
1 2 ,0 0 0
1 ,0 0 0
1 ,0 0 0
1 ,0 0 0
1 ,0 0 0
1 ,0 0 0
1 ,0 0 0
1 ,0 0 0
1 ,0 0 0
1 ,0 0 0
1 ,0 0 0
100
100
100
8 00,000
3 ,8 X 5 ,0 0 0
24 ,0 0 0
1 3 ,0 0 0
1 3 ,0 0 0
8 ,0 0 0
7 5 ,0 0 0
1 ,0 0 0
5 ,0 0 0
5 ,0 0 0
1 ,0 0 0
1 ,0 0 0
1 ,0 0 0
3 3 9 ,8 9 7
4 ,4 0 0
14,000
1 ,0 0 0
1 ,0 0 0
100
100
Wheat f l o u r , s e m o lin a ,
cru sh e d o r c r a c k e d
w h e a t, and s i m i l a r
w heat p ro d u c ts
E s t a b li s h e d ; Im po rts
Q uota
;M ay 2 9 , 194r
•t o A ug*2,19/
(Pounds)
(Pounds)
2 ...
~ .
7
7
~
—
—
—
—
—
4 ,0 0 0 ,0 0 0
3 44 ,2 9 7
37
TREASURY DEPARTMENT
Wash in gfcon
FOR M E D IA T E RELEASE
Monday. A u g u st 18. 194-7
P re s s S e r v ic e
N o . S -4 3 2
The c o n fe r e n c e between B r i t i s h and U . S . o f f i c i a l s opened to d a y a t
3 P .M . i n th e N a t i o n a l A d v is o r y C o u n c il C o n fe r e n c e Room i n th e T r e a s u r y
D epartm ent t o d i s c u s s such B r i t i s h econom ic c o n d it io n s as a f f e c t th e
A n g lo -A m erica n lo a n a g re e m e n t.
Those i n a tte n d a n c e w ere:
U n ite d S t a t e s D e le g a t io n
T r e a s u r y D epartm ent
S e c r e t a r y Sn y d er
M r . Frank A* S o u th a r d , J r .
S t a t e D epartm ent
M r . R o b ert A . L o v e tt
M r . W i lli a r d Thorp
Commerce D epartm ent
Mr* D av id Bruce
M r . C la r e n c e B lau
F e d e r a l R e se rv e Board
M r . M . S . Szym czak
M r . Burke Knapp
E x p o r t-Im p o rt Bank
Mrw Wm. M cChesney M a r t in , J r
M r . H e r b e rt G aston
-
2
38
-
B r i t i s h D e le g a t io n
S i r W ilfr e d Eady
M r . A . T . K .- G ran t
<
S i r Edmund H a ll- P a t c h
) F o r e ig n O f f i c e
M r. H . J .
) Board o f T rade
B. lin t o t t
T reasu ry
M r . P , S . B e a le
M r . L . P . Thom pson-M cCausland
j Bank o f E n glan d
S i r Gordon Munro
) U* K . T r e a s u r y D e le g a t io h
S i r Jo h n B a lfo u r
) C harge d * A f f a i r e s , B r i t i s h Embassy,W ashington
M r . Edgar Jo n e s
M r . A lla n C h r is t e lo w
) U* K . T re a s u r y D e le g a t io n
The i n i t i a l m e e tin g was o f a p r o c e d u r a l or o r g a n i z a t io n a l c h a r a c te r *
Arrangem ents f o r t e c h n i c a l d is c u s s io n s were made.The B r i t i s h o f f i c i a l s s k e tc h e d , i n g e n e r a l, t h e économie d evelop m en ts
o f th e B r i t i s h s in c e th e s i g n i n g o f th e lo a n a g re em en t.
F u r th e r d is c u s s io n s a re sch e d u le d f o r tom orrow a ft e r n o o n .
oOo
39
TREASUKT DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Tuesday, August 19, 1947________
Press Service
No* S-433
The Secretary of the Treasury announced last evening that
the tenders for $1,200,000,000, or thereabouts, of 91-a&y
Treasury^bills to be dated August 21 and to mature November 20,
1947, which were offered August 15, 1947, were opened at the
Federal Reserve Banks on August 18,
The details of this issue are as follows:
Total applied for - $1,633,803,000
Total accepted
- 1,201,036,000 (includes $20,971,000
entered on a non-competitive basis
and accepted in full at the average
price shown below)
Average price
- 99,813 Equivalent rate of discount
approx. 0.741% per annum
Range of accepted competitive bids:
(Excepting two tenders
totaling $100,000)
High
- 99.825 Equivalent rate of discount
approx. 0.692% per annum
Low
- 99.810 Equivalent rate of discount
approx. 0.752% per annum
(54 percent of the amount bid for at the low price
was accepted)
Federal Reserve
Total
Total
District
'
Applied for
Accepted
Boston *
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
TOTAL
$
1,095,000
1,497,255,000
12.305.000
1.965.000
3.685.000
1.340.000
74.616.000
2.707.000
1.760.000
8.680.000
3,985,000
24.410.000
$
1,095,000
1,136,540,000
2,110,000
1, "719,000
3.685.000
1.340.000
25.476.000
2.569.000
1.530.000
8.577.000
3.985.000
12.410.000
$1,633,803,000
$1,201,036,000
oOo
TREASURY DEPARTMENT
W ashington
FOR RELEASE, MORNING NEWSPAPERS
T uesday, August 26, 1947_____
Press Service
No. S-434
S e c r e t a r y S n y d e r to d a y made p u b l i c , i n a cco rd a n ce w ith a p r o v is io n o f
the I n t e r n a l Revenue C ode, a l i s t o f i n d i v i d u a l s r e c e i v i n g from c o r p o r a tio n s
com pensation f o r p e r s o n a l s e r v ic e s i n e x c e s s o f $7 5 ,0 0 0 f o r t h e c a le n d a r
y ear 1945 and f i s c a l y e a r s e n d in g i n 1946, and s u p p le m e n ta l r e p o r t s f o r th e
c a le n d a r y e a r 1943 and f i s c a l y e a r s ended i n 1944, and f o r t h e c a le n d a r
y ear 1944 ana f i s c a l y e a r s ended i n 1945.
The S e c r e t a r y o f th e T r e a s u r y i s r e q u ir e d by S e c t io n 148 ( f ) o f th e
Code, as amended by S e c t io n 407 o f t h e Revenue A c t o f 1939, t o make p u b lic
th e names o f su ch i n d i v i d u a ls as were r e p o r te d b y em p lo yin g c o r p o r a tio n s
in t h e i r incom e t a x r e t u r n s . The l i s t com p iled shows th e amounts p a id to
o f f i c e r s and em ployees by r e p o r t in g c o r p o r a tio n s i n th e fo im o f s a l a r y ,
com m ission, bonus o r o th e r com pensation f o r p e r s o n a l s e r v i c e s .
S e c t io n 148 ( f ) o f t h e I n t e r n a l Revenue C od e, as amended by S e c t io n 407
o f th e Revenue A c t o f 1939, i s as f o llo w s :
“ C om pensation o f O f f i c e r s and Em ployees: - Under r e g u la t io n s
p r e s c r ib e d by th e C om m issioner w ith th e a p p r o v a l o f th e S e c r e t a r y ,
e v e r y c o r p o r a tio n s u b je c t t o t a x a t i o n u n d er t h i s c h a p te r s h a l l , i n
i t s r e t u r n , subm it a l i s t o f t h e names o f a l l o f f i c e r s and em ployees
o f such c o r p o r a tio n and t h e r e s p e c t iv e amounts p a id t o them d u r in g
th e t a x a b le y e a r o f t h e c o r p o r a tio n b y th e c o r p o r a tio n a s s a l a r y ,
com m ission, bonu s, o r o t h e r com pensation f o r p e r s o n a l s e r v i c e s
ren d ere d , i f th e a g g r e g a te amount so p a id t o th e i n d i v i d u a l i s i n
e x ce ss o f $ 7 5 ,0 0 0 .
"The S e c r e t a r y s h a l l co m p ile from th e r e tu r n s made a l i s t c o n -,
t a i n i n g th e names o f , and t h e amounts p a id t o , e a ch su ch o f f i c e r
and em ployee and th e name o f t h e p a y in g c o r p o r a tio n and s h a l l make
such l i s t a v a i l a b l e t o th e p u b lic .. I t s h a l l be u n la w fu l f o r any
person t o s e l l , o f f e r f o r s a l e , o r c i r c u l a t e , f o r an y c o n s id e r a t io n
w h a tso e v e r, any cop y or r e p r o d u c tio n o f any l i s t , or p a r t t h e r e o f ,
a u th o r iz e d t o be made p u b lic by t h i s A c t o r by any p r i o r A c t ,
r e l a t i n g t o th e p u b li c a t io n o f in fo r m a tio n d e r iv e d from incom e t a x
r e t u r n s ; and any o f fe n s e a g a in s t th e fo r e g o in g p r o v is io n s h a l l be
a m isdem eanor and be pu n ish ed by a f i n e n o t e x c e e d in g $ 1 ,0 0 0 o r by
im prisonm ent n o t e x c e e d in g one y e a r , or b o th , a t t h e d i s c r e t i o n o f
th e e b u r t:
P r o v id e d , t h a t n o th in g i n t h i s s e n te n c e s h a l l be
co n stru e d to be a p p li c a b le w ith r e s p e c t t o a n y 'n e w sp a p e r, or o th e r
p e r i o d i c a l p u b lic a t io n e n t i t l e d t o a d m issio n to t h e m a ils as
s e c o n d - c la s s m a t t e r ,"
The names o f th e c o r p o r a tio n s and o f th e o f f i c e r s and em ployees who
re ce iv e d com pensation i n e x c e s s , o f $ 7 5 ,0 0 0 , as r e p o r te d t o t h e S e c r e t a r y
by th e Bureau o f I n t e r n a l R even u e, a r e a s f o llo w s ;
2
MME OF CORPORATION
AND OFFICERS OR
EMPLOYEES
CALENDAR OR
FISC A L YEAR
ENDED
SALARY
COMMISSION
BONUS
OTHER
COMPEN
SATION
TOTAL
CALIFORNIA
K . ARAKELIAN, INC.
A r a k e l ia n , E d d ie K .
BANK OF AMERICA N. T .
S . A.
G ia n n in i , L . M.
BULLOCK1 S, IN C.
Howd, 0 . B.
W in n e tt, P . G.
CATALINA, :I N C.
S t e w a rt, E dgar W.
CONSOLIDATED VULTEE AIRCRAFT COEP.
Lad d on , I . M.
W oodhead, H a r ry
THE EMPORIUM OAPWELL COMPANY
C i v e l l i , J . S.
F i s h e r , H a ld a n e S .
Lipm an , E . C.
FAMOUS ARTISTS CORPORATION
Feldm an , C h a s. K enneth
FOX INTER-MOUNTAIN AMUSEMENT CORP.
R ic k e ts o n , F . H ., J r .
FOX WEST COAST AGENCY CORPORATION
S k o u r a s , C h a r le s P .
EEARST CONSOLIDATED PUBLICATIONS, IITÇ •
H e a r s t , W illia m R andolph
HEARST PUBLICATIONS, IN C .
H e a r s t , W illia m R an d o lp h
£■
S/30/U6
8 5.210 .U 2
85*210,.U2
12/31/45
1/ 31/46
53. 200.00
20, 000.00
83,200.00
95,000.00
9,000.00
68, 3 6 1.5 3
7 7 ,3 6 1 .5 3
6 .4 5
6 .4 5
80, 000.00
80, 000.00
1/31/46
2U, 000.-00
U0,000.00
35,000.00
6/ 30/46
12/ 31/45
12/ 31/45
12/31/45
12/ 31/45
79.7U 7.0 0
30,000.00
75*000.00
7/31/46
11/ 30/46
U ,7U 7.00
75,000.00
62, 19 7 .6 3
62, 625.77
95, U03. 56
8 6 ,19 7 .6 3
1 2 2 ,8 2 5 .7 7
1 3 0 ,U03.56
82,U25.00
82,U25.00
6U ,900.00
8 0 ,0 0 6 .U5
8 0 .0 0 6 .U5
27, 57^.97
5,200.00
97. 67U.97
130,000.00
130,000.00
100,000,00
100,000.00
100,000.00
100,000.00
I— ¿»
- 3~
NAME
oe
corporation
AND OFFICERS OH
EMPLOYEES
CALENDAR OR
E I SCAL YEAR
ENDED...
--------------------- 7------SALARY
OTHER
COMMISSION
BONUS
COMPENSATION
TOTAL
CALIFORNIA ( C e n t .) .
LOCKHEED AIRCRAFT CORPORATIOH
B a r k e r , C. A. » J r .
G r o s s , R o b e rt E .
"LOS ANGELES TURE CLUB, IN C.
S t r a b , C h a r le s H .
MARCHANT CALCULATING MACHINE COMPANY
C o o k e, Dw ight R .
MONOGRAM PICTURES CORPORATION
B r o i d y , S*
NATIONAL THEATRES AMUSEMENT CO. , IN C.
S k o u r a s , C h a r le s P*
PACI E I C GAS AND ELECTRIC COMPANY
B l a c k , Ja m e s 3 .
P H IL BERG-BERT ALLENBERG, IN C.
A lle n b e r g , B e rtra m
B erg, P h il
*
12 / 31/4 5
£ 9 , 4 ^2.36
1 2 3 , 313.2 4
S 9 ,4 3 2 .3 S
123,313*24
6/30/46
529 , 4 12 .77
1 2 ,0 0 0 .0 0
54 1 ,4 1 2 . 7 7
12 / 31/^ 5
8 5 , 800.92
S 5 ,S 00.92
6 / 30/46
2 0 ,2 0 0 .0 0
36 , 264.04
21 , 72 4 .34
7 8 ,7 2 6 .3 2
12 /31/4 5
12 / 31/45
75*000.00
12 / 3 1 /U5
438 , 143.60
4 3 8 ,1 4 ^ .6 0
2 , 160.00
7 7 » l6 0 .0 0
1 1 6 ,7 5 0 .0 0
1 0 2 ,7 5 0 .0 0
500 . 82*
341 . 03 *
1 1 7 , 250.82
10 3 , 091.0 3
T hese ite m s r e p r e s e n t premiums on 1i f e in s u r a n c e c a r r ie d on th e l i v e s o f th e s e i n d i v i d u a ls by
t r u s t e e s under D e c la r a t io n o f P e n s i on T r u s t f o r th e Em ployees o f P h i l B e r g -B e r t A lle n b e r g ,
Incorporated*
ro
_
NAME 01 CORPORATION
AND OFFICERS OR
EMPLOYEES
CALENDAR OR
FISCAL YEAR
ENDED
h
_
SALARY
COMMISSION BONUS
OTHER
-COMPEN
SAT 10 il
TOTAL
115,411*06
150*266,64
Ca l i f o r n i a (cont*)
HAL ROACH STUDIOS, INC.
Bendix, William
ROSENBERG BROTHERS & COMPANY
Oppenheimer, Arthur C.
SIGNAL OIL- AND GAS COMPANY AND
SUBSIDIARIES
Mosher, S. B,
Notes:
8 /31/46
5 /3 1 /1*6
2 5 ,9 1 6 .6 7
s ,9 3 g .91
2 5 ,000.08
13^*353.2^
,
159.353* 32
12/31/^5.
54,000.00
5S5.00*
3 0 ,000.00*
84,585*00
Item 4 does not include additional Bonus of $3 0 ,000.00 vh
Item J does not include a traveling and entertainment allowance of $12,000*00 paid to
S. B. Moeller in 19^5*
VANGUARD FILM S, INC*
Agnew , N e i l F .
H e c h t i Ben
O ’ Shea* D a n ie l T .
H o g e r s , G in g e r
S c h a r y , Dore
V id o r , K in g
12/31/^5
6 7 ,10 0 .0 0
70*425*00
93.333*34
5 2 .1 6 6 .6 7
111,083*32
86.6 6 6 .6 7
25.ooo.oo
117.159.^
5 9 ,7 1 9 .6 9
1 3 7 ,525.0 0
93* 333-3U
7 7 .1 6 6 .6 7
117,159*44
1 7 0 ,803*01
8 0 .6 6 6 .6 7
4^
co
- 5 -
¡'AM! '0 ? CORPORATION
ARD OPPI CERS OR
Sr iP LOTES S
CALERDAR OR.
FISC A L TEAR
ENDED
SALART
SIOR
BONUS
OTHER
COMPERSAT I OR
TOTAL
CORRECTICUT
REMIHGTOR ARMS COMPART, IRC*
D a v is , C. K.
LIMITED AIRCRAFT CORPORATOR
R e n t s c h le r , F r e d e r ic k B*
■ 12/31/^5
4 0 , 596.00
41,250.00
240.00
8 2,086.00
3 ,850.00
7 8 ,850.00
12/31/45
7 5 .0 0 0 .0 0
DELAWARE
AMERICAS SUPPLIERS, IR C .
L ip sco m b , Ja m e s E * , J r .
AMERICAS VISCO SE .CORPORATIOR
A p p le t o n , W illia m C ,
G r i f f i n , F ra n k H .
BENEFICIAL MANAGEMENT CORPORATIOR
W a t ts , C h a r le s H .
THE COCA-COLA COMPART
B r o c k , Pope F .
J o n e s , H a r r is o n
E . I . du PORT de NEMOURS
CO.
Brow n, J . Thompson
C a m e n t e r , W a lte r S . , J r .
C r a n e , J a s p e r E«
du P o n t , H en ry B .
E c h o ls , A ngus B .
H a r r in g t o n , W i l l i s F .
K in g , K en n eth T .
M cCoy, Jo h n W*
R o b in s o n , Edmund G .
S t i n e , C h a r le s M. A .
W ardenburg, F r e d e r ic A .
T a n c e y , Edward B .
T e r k e s , Leo n ard A*
&
I 2 / 3 I /45
1 2 0 ,000,00
1 2 0 ,0 0 0 .0 0
I 2 / 3 I /45
7 5 ,0 0 0 .0 0
60 , 000.00
12/31/^5
10 0 ,000.00
80,000.00
2 5 ,000.00
20 ,000.00
105,300.04
1 0 5 ,3 0 0 .0 4
I 2 / 3 I /45
700.00
500.00
8 0 ,0 0 0 .0 0
8 0 ,0 0 0 .0 0
80,700.00
80,500.00
I 2 / 3 I /45
- 5 0 ,0 0 0 .0 4
150 , 000.00
50 , 000 . c4
50 , 000.04
5 7 ,9 9 9 «96
5 0 ,0 0 0 .0 4
16 , 556*00
5 0 ,0 0 0 .0 4
46 , 512.00
25 . 000.02
4 2 , 600.00
5 0 .o o o .o 4
3 9 , 276.00
62,733*00
6 2 ,733.0 0
50,173.50
6 7 .7 3 3 .OO
6 2 ,73 3 .0 0
7 2 ,090.38
6 2 ,73 3 .0 0
50 ,1 7 3 .5 0
6 0 ,233.00
48,173*50
56 , 9 3 3 .1 3
5 2 ,1 7 3 .5 0
600.00
550.00
500.00
550.00
600.00
600^00
550*00
600.00
500,00
450.00
600.00
450.0 0 ,
n 3 .333.cif
1 5 0 ,550.00
1 1 3 ,233«o4
100,723.54
1 2 6 ,3 3 2 .9 6
1 1 3 ,3 3 7 .0 4
88,646.38
1 1 3 ,283.0 4 . '
9 7 ,285.5 0 :
S5»733«02
9 1 .2 2 3 .5 0
1 0 7 , 5 3 3 .1 7 ^
92 .u 99.50
-
Ha m s
o f c o r p o r a t io n
and o f f ic e r s or
EMPLOYEES_______
CALENDAR OPFISC A L YEAR
ENDED
6
-
SALARY
COMMISSION
BONUS
OTHER .
COMPENTOTAL
SAT I ON : _____________ _
DELAWARE ( P o n t.)
HERCULES POW ER COMPANY
H i g g i n s , C h a r le s A .
THE LAMBERT COMPANY
J o h n s t o n , Jo h n L .
12/31/45
8 1 ,900.00
2 1 ,900.00
6 0 ,000.00
1 2 /31/45
10 0 ,000.00
1 0 0 ,000.00
GEORGIA
9 /30/46
9 3 ,5 9 6 .5 6
6 8 ,5 9 6 .5 6
2 5 ,000.00
1/31/46
0 0
0•0«
0 0
0 0
5 8 ,5111.62
6 0 ,000.00
0 0
0 s.
AMERICAN ASSOCIATED COMPANIES, IN C.
May, Armand
R IC H 'S , IN C .
N e e ly , F ra n k H*
R i c h , W a lte r H .
60,000.00
1 8 ,000.00
5 .600.00
5 .600.00
9U, i U i .6 2
9 5 ,600.00
IL L IN O IS
AMERICAN STEEL FOUNDRIES
D r e v e r , Thomas
B AND
MAIIAGEMENT CORPORATION
B a la h a n , Jo h n
JOHN BLAIR AND COMPANY
B l a i r , Jo h n P .
B o l l i n g , G eo rge W.
BORG-WARNER CORPORATION
In g e r s o l l , R . C.
BRINK 1 S , INCORPORATED
A lle n , Frank
A lle n , Jo h n D.
X
9/30/46
7 8 ,000.00
1 2 /3 1 /U5
10U.000.00
ioU,ooo.oo
1 2 /3 1/4 5
1 2 ,000.00
6 ,000.00
80,8 9 6 .7 1
69.U0 8 .7 0
12/31/45
5 9 ,500.00
9 3 ,3 9 6 .7 1
7 5 ,908.70
1 ,000.00
500.00
35*975*00
U 50.00
9 5 ,925.0 0
1 .650.00
1 .650 .00
8 6 .650.00
8 6 .650.00
1 2 /3 1/4 5
8 5 ,000.00
8 5 ,000.00
4^4
FAME OF CORPORATION
AND OFFICERS OR
EMPLOYEES
CALENDAR OR
FISCA L YEAR
ENDED
SALARY
COMMISSION
BONUS
OTHER
COMPEN
TOTAL
SATION
I LLIN O IS ( C o n t .)
EURGESS-NORTON MANUFACTURING COMPANY
S m ith , H. D.
BUTLER BROTHERS
Freem an, Thomas B .
CARON SPINNING COMPANY
C a ro n , 0 . J ,
CENTRAL STEEL AND WIRE COMPANY
L o w e n s tin e , H andel
CHICAGO FLOWER GROWERS, IN C.
K lin g s u o r n , P a u l R .
CONTAINER CORPORATION OF AMERICA
P a e p c k e , W a lte r P .
CONTINENTAL GRAIN COMPANY
B i s s e l l , E . V. IT.
CONTINENTAL IL L IN O IS NATIONAL BANK AND
TRUST COMPANY OF CHICAGO
Cum m ings, W a lte r J .
CRANE COMPANY
C o l l i e r , J . H.
R. R . DONNELLEY & SONS COMPANY
Zimmermann, E . P .
THE REUBEN H. DONNELLEY CORPORATION
A n d e r s e n , A lb e r t M.
B a m fo r th , A r th u r H .
G u n n is o n , Raymond M.
H a r r in g t o n , D a v id L .
L i l l y b l a d e , C la r e n c e 0 .
I 2 / 3 1 /U5
2 , 500.00
lO3.i36.lS
50 , 000.00
50 . 000 . 00
100,000.00
24,993.96
S U , 2l S , 70
1 0 9 ,2 1 s.6 6
66 ,000.00
12.000.
3 , 000.00
9 7 , 636 . 1 g
I 2 / 3 1 /U5
I 2 / 3 1 /U5
12 / 3 1 /U5
00
S U
6 / 30 /U6
I 2 / 3 1 /U5
3 , 9U0 . 00
7U,2.U5.U2
.
0 0 0 .0 0
7 8 . 1S 5 .
5 5 *000.00
7 5 »ooo .oo
U
2
1 3 0 ,000.00
5 / 3 1 /Uc
1 1 0 .U2 3 .1 5
1 1 0 ,USO.81
12 / 31/^ 5
1 5 0 , 000.00
1 , 150.00
1 5 1 ,150 .0 0
I2/31/U5
£pn
r-»
onu»n
ul
50 , 000.00
30 , 000.00
2 4 ,2 0 0 .0 0
100 , 000.00
12U,200.00
7 , 020.00
1 9 , 500.00
2 5 , 000.00
1 0 , 800.00
. 19 , 500.00
S l,U U 3 . 90
6 U ,S 3 3 . 6U
6U .S 3 3 .6 3
7 3 * 5 3 3 . 6U
6U ,S 3 3 . 6U
8S.U6 3.90
80 , 650.00
12/31/^5
1 2 /3 1 / 1+5
8 U . 333 . 6 U
29,233.63
SU,333.6U
S U ,3 3 3 .6 U
8
käm e o f
c o r p o r a t io n
AND OFFICERS OR
EMPLOYEES
CALENDAR OR
FISCA L YEAR
ENDED
SALARY
OTHER
COMMISSION BONUS
COMPELTOTAL
,_________________________ __________ SAT I ON___________
IL L IN O IS ( C o n t .)
EVERSHARP, INCORPORATED
S t r a u s , M a r tin L . » I I
FAIRBANKS, MORSE AND COMPANY
M o rse , R o b e rt H*
THE FIRST NATIONAL BANK OF CHICAGO
Brow n, Edward E a g le
GREAT LAKES CARBON CORPORATION
S k a k e l, G eorge
HART SCHAFFNER & MARX
Ke'stnbaum, M.
HOUSEHOLD FINANCE CORPORATION
HENDERSON, 3 . E .
INLAND STEEL COMPANY
S y k e s , W ilf r e d
INTERNATIONAL HARVESTER COMPANY
M c C a ffr e y , J . L ,
M cC orm ick, Fo w ler
INTERNATIONAL MINERALS & CHEMICAL CORP.
W are, L o u i s
LION MANUFACTURING CORPORATION
Lyon, S tu a rt G,
LUMBERMENS MUTUAL CASUALTY COMPANY
Kem per, Ja m e s S , .
MARS, INCORPORATED
M a rs, M rs. E . V.
P/2S/U6
6 0 ,996.00
5 5 ,7 6 6 .5 0
7 5 ,000.00
9 2 ,9 3 2 .6 2
1 1 6 ,764.50
1 2 /3 1/45
1 2 /3 1/ 4 5
8 5 ,000,00
3 ,000.00
1 7 0 ,9 3 2 .6 2
4 ,275.0 0
6 9 ,275.0 0
10/31/46
7 5 ,000.00
1 1 5 ,000.00
40,000.00
1 1 /30/M-6
7 3 .0 56 ,6 6
2 5 ,000.00
9 6 ,0 56 .6 6
38.2s
1 2 3 ,23 6.26
1 2 /3 1/4 5
1 1 2 ,000.00
1 1 ,200.00
50 ,000.00
30,000.00
8 1 ,9 0 2 ,1 7
99,909*96
24,570.00
30 ,000,00
1,470.00
1 ,550.00
1 0 7 ,9 4 2 .1 7
1 3 1 ,54 9 .9 6
50 ,000.00
5 0 ,000.00
1 ,200.00
1 0 1 ,200.00
1 2 /3 1/43
80,000.00
10/31/46
6 /30/46
12/31/45
7 7 ,7 7 6 .4 2
77,776.42
1 2 /3 1/4 5
6 0 ,000.00
12/31/45
1 2 0 ,009.00
1 7 6 ,1 3 1 .9 7
2 3 2 ,1 3 1 .9 7
1 2 0 ,000.00
9 FAME OF CORPORATION
AND OFFICERS OR
EMPLOYEES
CALENDAR OR
FISCAL YEAR
ENDED
Q n p t r p
SALARY
COMMISSION
BONUS
QOMPENSAT I ON
TOTAL
IL L IN O IS ( C o n t.)
W. H. MIFER, IFCORPORATED
Jo h n s o n , G eorge A*
W i t h a l l , A. P .
MONTGOMERY WARD £ COMPANY, INC*
A very, S. L.
NATIONAL D IE CASTING COMPANY
Jo h n s o n , H. C.
NORRIS GRAIN COMPANY
L i p s e y , David. H .
NORTHWEST ENGINEERING COMPANY
H o u s to n , L . E»
REPUBLIC FOOD PRODUCTS COMPANY
C l a i r , J» M.
C. A . ROBERTS COMPANY
K a i s e r , ü* A*
ROCHE, WILLIAMS & CLEARY, INC*
P o r t e r , R ic h a r d A ,
SEARS ROEBUCK AND COMPANY
B a rro w s, .A.* s#
H o u s e r , T* Y .
Wood, R. E .
A . E . STALEY MANUFACTURING COMPANY
S t a le y , A. E. , J r .
SUPERIOR PACKING COMPANY
L o e w e n s te in , I r a
SWIFT AND COMPANY
H o lm e s, Jo h n
12/31/1*5
U9 , i Uo .
85,239.00
i7 U ,5 3 8 .U i
36,099.00
oq
50,000.00
12U,53S.U1
1/31/46
1,100.00
99,999.98
101,099.98
12/31/45
79,200.00
79,200.00
3/31/46
12,000.00
U ,15S.U0
123,371.89
. 139,530.29
50,000.00
100,000.00
12/31/45
50,000.00
12/31/45
26,100.00
12/31/^5
62,620.00
88,720.00
82» 506*SO
82,506.80
12/31/45
79,827.66
79,827,66
1/31/46
75 ,oco.oo
59,999- 9U
67,773.08
3 5 .0 00 .
2 0 .0 00 .
1 5 .0 00 .
U s ,000.00
50,000.00
00
00
00
110,000.00
7 9 ,9 9 9 ,9U
82,773.08
12/31/45
10/31/46
98,000.00
79,500.00
79,500.00
85,000.00
85,000,00
12/31/45
-P*
OO
10
HAMB OH CORPORATION
AND OFFICERS OR
EMPLOYEES
-
CALENDAR OR
FISCA L YEAR
ENDED
m M M T S ST OTT. ROMTS
OTHER
C0MPEN-
TOTAL
ILLIN O IS- ( C e n t .)
TRI BUHE COMPANY
C a m p b e ll, C. M.
R o s e , L . H*
CHICAGO TRIBUNE-HEW YORK HEWS
SYNDICATE, INCORPORATED
G o u ld , C h e s te r
G ray
G ra y
NEWS SYNDICATE COMPANY, INCORPORATED
C l a r k e , R» V»
F ly n n , F , M.
H o llis , R. C.
UNITED DRILL AND TOOL CORPORATION
K e a r in s , M, J .
VICTOR MANUFACTURING & GASKET CO.
V i c t o r , Jo h n H«
TEE WANDER COMPANY
Jo h n s to n , K art
M c M illa n , Ja m e s G .
12/31/to
i2 / 3 i/ to
71,^39.12
S2.S00.07
6,500.00
13,000.00
&
i2 / 3 i/ to
25,000.00
12/31/1+5
12/31/U5
77,939.12
95,S00.07
103.500.00
103.500.00
103,500*00
36.300.00
36.300.00
36.300.00
67,200.00
67,200.00
67,200*00
12/31/to
100,S71.S^
1 2 1 ,0 6 s.00
2 6 ,9 3 ^ 5 0
^2,676.00
73.937.31*
T S ,392.00
56,005.92
s i , 005.92
50*00
79,000.97
75,OOO.OS
3,950.69
30,000.00
39.999.96
57,697.15
96,161.91
27,697.15
136,161.67
to,331.59
75,351.38
115,682.97
INDIANA
MEAD JOHNSON AND COMPANY
Jo h n so n * Lam bert D .
12/31/^5
IOWA
THE REGISTER AND TRIBUNE COMPANY
M a r t in , H e n ry R . , J r *
12/31/U5
-
,
6,588.95
7 0 ,2 1 ? .to
76,801. to
-
FAME OF CORPORATION
AND OFFICERS OR
EMPLOYEES
CALENDAR OR
FISC A L YEAR
ENDED
11
-
SALARY
COMMISSION
BONUS
OTHER
COMPEN
SATION
TOTAL
KAFSAS
THE KAFSAS M ILL IE S COMPANY
Ja ck m a n , D. S .
M a g i l l , R. Ward
5/31/U6
1 2 ,000.00
12,000.00
/
73,013.90
73,013.90
85,013.90
85,013.90
LOUISIANA
H IGGIN S INDUSTRIES, INCORPORATED
H ig g in s * Andrew J .
12 / 3 1 /U5
33.333.33
S3,333.33
MARYLAND
ACACIA MUTUAL L IF E INSURANCE COMPANY
M ontgom ery, W illia m
COMMERCIAL CREDIT COMPANY
D u n can , A , E .
12/31/U5
150.00
75,000.00
12/31/^5
75,150.00
85,000.00
S5 ,000.00
MASSACHUSETTS
AMSRICAN BOSCH CORPORATION
H e s s , D o n a ld ?•
AMERICAN OPTICAL COMPANY
C o z z e n s , C. O*
THE ATLANTIC LUMBER COMPANY
F r e n c h , Edward V .
McHugh, Thomas J *
E . B . BADGER
SONS COMPANY
B a d g e r* E r a s t u s B ,
H a l l * W a lte r T*
P e t e r s , W illia m A , , J r .
&
12/31/U5
U5.000.00
35,000.00
80,000.00
12/31/U5
90,000.00
90,000.00
136.393.69
136.393.69
136,393.69
136,393.69
12/31/U5
12/31/U5
I S ,0 0 0 .0 0
IS,000.00
18,000.00
69.20U.97
69,204.97
69,204.97
1,323.3^
1,189.33
1,031.39
88,528.31
8S.39U.3O
£8,236.36
cn
0
12
FAME OF C0EFCH.iTI.C2T
A2JD OFFICERS OR
EMPLOYEES
CALENDAR OR
FISC A L YEAR
ENDED
-
SALARY
COM2'IIS SION
BONUS
OTHER
COMPEN
SATION
TOTAL
MASSACHUSETTS ( C o n t .)
H* P* CARVER CORPORATION
C a r v e r , H a r o ld P*
THE FIRST BOSTON CORPORATION
A d d in s e l l , H a rry M#
C o g g e s h a ll, Jam es J r ,
L a n s to n , A ubrey &•
Macom ber, Jo h n R*
P o p e , A l l a n M*
THE KEYSTONE CORPORATION OE BOSTON
C u s a c k , ¥• C.
Rehm, T h e o . A*
S h o l l e y , S , 1*
DR, FRANK Hi LAHEY
L a h e y , * D r , E ran k R .
MASSACHUSETTS INVESTORS TRUST
G r is w o ld , M e r r i l l
PACKARD M ILLS, INC*
H u bb ard , R a lp h K .
POTTER DRUG
CHEMICAL CORPORATION
B e s t , Sam uel M,
LAWRENCE T . RITCH IE COMPANY
R i t c h i e , Law rence T .
C .E . SPRAGUE & SON COMPANY
B o w d itc h , R. L ,
HOLLAND, H. B.
TRANSIT BUS SALES, INCORPORATED
S t e e v e s , H enry A .
&
3/31/46
1 ,000,00
$ 1 , 1 7 1 .3 2
48 , 500.00
110,671.32
12/3-1/45
I2/3I/45
45,000*00
3 6 ,000*00
27.504.00
40.500.00
45,000.00
4.950.00
9 .450.0 0
47.490.00
40,705.70
127,373.00
47.490.00
47.490.00
7 6 ,9 3 5 .6 6
87,273.^5
2 3 7 .0 3U. 1 5
U 6 ,1 1 1 . 7 3
92.490.00
76,705.70
154,877.00
87.990.00
92.490.00
76,985.66
138,335.18
246 ,4 8 4 .1 5
12/31/45
1 1 0 ,000.00
-1 1 0 ,000.00
3 7 ,3 7 3 .6 1
87,373- 6 1
12/31/45
12/31/45
20 ,000.00
107,512.79
2 5 ,000.00
73.507.35
98,507.85
7,800.00
■6 9 ,3 8 5 .4 2
7 6 ,1 8 5 .4 2
26,400.00
6 1 ,1 1 2 .7 9
12/31/45
12/31/45
12/31/^5
' 8 1 ,000.00
104,500.00
12/31/45
7 7 ,200.-00
7 7 ,200.00
Cn
- 13 NAME o f c o r p o r a t i o n
AND OFFICERS OR
EMPLOYEES
CADENEAR OR
FISCAL YEAR
ENDED
SALARY
COMMISSION
BONUS
OTHER
COMPEN
SATION
lOTAL
MASSACHUSETTS (Cont.)
UNITED SHOE MACHIEERY CORPORATION
2/2S/U6
Winslow, Sidney W., Jr.
U. S. BRAECH OF THE EMPLOYERS1 LIABILITY
ASSURANCE CORPORATION, LIMITED
I 2 / 3 1 /H5
Stone, Edward C.
100,000.08
100,000*05
81 ,000.00
122,226.33
203,226.33
200.00
370.00
100,200.00
900.00
900.00
1+00.00
350.00
90.900.00
100,900.00
97.1400.00
55 .3 5 0 .0 0
MICHIGAN
BOHN ALUMINUM & BRASS CORPORATION
Bohn, Charles B.
Markey, P. A*
CHRYSLER CORPORATION
HutchinsOn, B. E,
K e lle r , K. T.
Weckler, H. L.
Zeder, F. M.
12/31/^5
12/31/45
50,000.00
50,000.00
50,000.00
1+9,000.00
90,000.00
100 , 000.00
72 ,000.00
25,000.00
85,000.00
99 .370.00
The amounts shown above do not include any part of the payments by Chrysler Corporation
in I 9 U5 to F ir s t Adjustment C hrysler Management Trust or E xecutive C hrysler Management
T rust.
THE DOW CHEMI CAL COMPANY
Dov/, Willard H.
HARRY FERGUSON, INCORPORATED
Kyes, Roger M.
FORD MOTOR COMPANY
Bricker, M. L*
Craig, B. J.
Ford, Henry II
5/3I/I+6
12/31/^5
12/31/^5
100 ,000.00
100, 000.00
100 ,000.00
100, 000.00
57 ,5 6 9 . *42
136,62Í+. 92
87,569.^2
136,621+. 92
ll+o, 00I+. 21
ll+0,00l+. 21
cn
ro
lH -
käme of
corporation
and officers or
employees
Ca LENDà h . OR
FISCAL YEAR
ENDED
SALARY
COMMIS SION
OTHER
COMPENSATION
BONUS
TOTAL
MICHIGAN (Cont.)
FRUEHAUF TRAILER COMPANY
Fruehauf, Harvey C.
Fruehauf, Roy A*
GENERAL MOTORS CORPORATION
Anderson, Harry W.
Archer, Thomas P.
Armstrong, W illiam E.
Badgley, Ollie V , .
B rad ley, A lb ert
Brown, Donaldson
Burke, F ran cis L.
Codrington, George W#
Coyle, Marvin E,
Crawford, James M.
C u r tic e , Harlow H.
Donner, F red eric G.
D reystad t, N icholas
E a r l, H arley J.
Evans, Ronald K.
Goad, Louis C.
Godfrey, Edward R.
Hogan, Henry M.
H o lle r , W illiam E.
Hunt, Ormond E.
Johnson, Earle F.
K e tte r in g , Charles F.
K in g le r , Harry J.
I 2 / 3 I/H 5
.
12 /3 1/*5
70,000.00
H9,000.08
333-30
90 .000 .
59 .000.0 0 '
33 ,2 *1-9.96
100 .000.
100 .000.
33 ,890.01
*
5 0 ,000.00
100 .000.
33 ,666,65
90 .000.
5 U.636.99
60 .000.
7 5 .000.
6 5 .000.00
5 5 .H16 .6 3
H
3 0 , 0 0 0 . 0 0
52 , 953*68
o ,
00
7H.999.93
1 1 9 , 7 6 7 .
00
00
00
7 2 . 0 6 8 . 9 3
00
00
,
1 200.00
6 i,o H a . 15
97.555.93
8 8 . 6 3 5 . H 8
7 0 , 157 . U 0
6 6 , 9 7 1 .5 3
7 0 0 . 0 0
,
1 200.00
1 100.00
,
8 1 , 6 2 6 . 5 5
H
00
00
00
00
00
00
2.H00.00
3 , 3 9 6 . 0 5
6o
,
1 , 000.00
5 2 , 953 . 6 s
179,935*US
125,95^.39
1 2 6 ,9 7 1 .53
122,856.28
i H6,62 d . 55
132,816.56
88,729.3 7
2 2 8 , 5 0 3 . 1 5
12S.2H5.88
5 . 8 8
1 0 0 . 1 0 H . 6 3
I O I . 0H2.15
198.255.93
82, 062.70
1 0 8 . H 9 3 . H 5
H 8 . H 9 3 . H 5
6 8 . 2 H
17?
J-1j, Pn8 Q7
yj
110 , 599-78
599 . 7 S
127 . 50 3.15
2 3 H . 1 2 5 . H 0
7 7 . 1 8 8 .6 6
H 7 . 8 5 6 . 2 8
7H , 9 9 9 .9 3
166.099.93
IO H . 767.SO
7 5 . 371.66
6 , 6 2 2 . 2 5
6*5
H 3 . 3 9 6 . 0 5
00
93,286.9S
,
1 100.00
s o
H2.121.70
127.503.15
3 8 , 2 9 s .
^'»333.32
50 .000.
60 .000.
10 0 .000.
60 .000.
10 0 .000 .
70 .000 .
100, 000.00
7 9 , 0 0 0 .0 8
3 0 , 0 0 0 . 0 0
7 0 0 . 0 0
2 0 0 . 8 0 H . 6 3
122 , 95 3.68
cn
co
15 -
SAMS' Of CORPORATION
CALENDAR OR
AND OFFICERS OR
fISCAL YEAR
EMPLOYEES_________________ _______ENDED
SALARY
COMPII S SI ON
OTHER **
COMPEN
SATION
BONUS*
TOTAL
/
MI CHIOAF (Oont.)
GENERAL MOTORS CORPORATION (Cont.)
12/31 /'45
mj
s;
K u n k le , B ay ard D.
IlcC u e n , C h a r le s L ,
N e w i ll , Edward B ,
0 s h o r n , C y ru s R .
S k in n e r , S h erro d E ,
S lo a n , A l f r e d P . , J r .
S m ith , Jo h n Thomas
W i lli a m s ,W i lli a m C . , J r *
i l s o n , C h a r le s E .
o u n g , O r v i l l e W.
6 0 ,000.00
75, 000.00
40,333*70
46.333.31
60 ,000.00
200,000.00
100,000.00
5 5 ,000.00
1 5 0 ,000.00
'40 ,333 .3 0
136 , 529.15
7 6 , 529.15
.7 0
4 3 . 39 6.05
4 3 . 396.05
6 2 , 511.30
i 4
6 7 , 6 0 S
2
, 0
6
s . 9 3
7 6 , 5 2 9 . 1 5
1 5 2 . 9 9 0 . 1 5
, 6
c s . 7
0
8 3 , 729*35
89 , 7 2 9 .3 6
1 2 2 , 5 1 1 . 3 0 1 , 0 0 0 . 0 0
7
2
1 , 0 0 0 . 0 0
1 , 00 0 ,0 0
2 0 1 , 0 0 0 . 0 0
173 , 0 6 8 .9 3
Ì 31 , 52 9.15
1 0 3 . 9 9 0 . 1 5
7 8 , 6 3 1 . 9 5
3 s . 2 9 s . 6 5
I n c lu d e s th e t o t a l v a lu e o f Bonus Awards g r a n te d f o r 1 9 4 4 ,p a r t l y i n G e n e r a l M otors C o r p o r a tio n
Common s t o c k and p a r t l y i n c a s h , p a y a b le A ugust ,1 3 .
®he
p o r t io n o f th e
®
com-outed a t $6 7 .1 2 5 p e r s h a r e , th e c lo s in g m arket p r i c e o f G e n e r a l M otors C o r p o r a tio n C o.
s t o c k on A u gu st 13, 1945, a s e v id e n c e d h y th e New Y o rk S to c k E xchan ge*
* * *
* * C o v e rs a llo w a n c e f o r l i v i n g e xp e n ses
cn
" W
l6 -
NAME OE CORPORATION
AND OFFICERS OR
EIVIPLOYEES
CALENDAR OR
FISCAL YEAR
ENDED -
---------------- SALARY
COMMISSION
BONUS
30/000.00
58,300.00
OTHER
COMPENSAT ION
TOTAL
_______ _
MICHIGAN (Cont.)
HOLLAND FURNACE COMPANY
Cheff, P. T.
HUDSON MOTOR CAR COMPANY
Barit, A. E.
LYON, INCORPORATED
Lyon, G. A.
MONROE AUTO EQUIPMENT COMPANY
McIntyre, B. D.
McIntyre, C. S.
McIntyre, V. D.
NATIONAL BANK OF DETROIT
McLucas, W. S.
PALMER-BEE COMPANY
Bee, George A.
McBride, Jesse E.
REO MOTORS, INCORPORATED
Hund, Henry E.
SQUARE D COMPANY
Magin, F, V.
S. S> -KRBSGE COMPANY
Williams, R. R*
12/31/^5
2,1400.00
1 2 / 3 1 / 4 5
90,000.00
90,000*00
1 2 / 3 1 / 4 5
90,000.00
*40,000.00
50,000.00
6/30/46
1.619.92
1,560*00
1.819.92
82,363.11
82,123.19
82^383.11
80.563.19
80,563*19
80.563.19
1 2 / 3 1 / 4 5
33,650.00
50,000.00
1 2 / 3 1 / 4 5
37,38*4.80
26,169.60
12/31/45
90,700.00
83,650.00
110,773*65
81,211.23
73,388.85
55,01+1.63
*40,800.00
70,000*00
110,800*00
*45,000.00
72, i U7.59
117,1*47* 59
1 2 / 3 1 / 4 5
1 2 / 4 1 / 4 5
89,250.00
89,250*00
cn
cn
17 M M E 0? CORPORATION
AND OFFICERS' OR
EMPLOYEES
CALENDAR OR
FISCAL YEAR
ENDED
SALARY
COMMISSION
OTHER
COMPEN
SATION
BONUS
TOTAL
MINNESOTA
ARCHER-DANIELS-MIBLAND COMPANY
Collins, Henry W*
Smith, Werner
POWERS DRY GOODS COMPANY, INC.
Olson, Dodrick
THE J. R. WATKINS COMPANY
King, E. L. , Jr.
12/31/1+5
25,000.00
50 ,0 00 .OH
7 5 ,0 0 0 .oH
Ho,000.00
% , 100.00
83,100.00
1/31/Ì+6
36,000.00
12/31/U5
6H,000.00
100,000.00
60,000.00
Ho, 0 0 0 .0 0
100,000.00
85,000.OS
60,000.00
lH5,000.0S
21,000.00
79.030.15
100,030,15
39,000.00
71,230.50
MI SSOURI
ANHEU SER-BU SCE, IHCORPORATED
Busch, Adolphus, III
J. A. FOLGSR & COMPANY
At ha, R. E,
FOX MIDWEST AlC'SEMENT CORPORATION
Rhoden, Elmer C.
JAMES R. KEARNEY CORPORATION
Kearney, James R . , Sr.
LAWTON BYRNE BRUNER INSURANCE
AGENCY COMPANY
Farrington, T. L.
Lawton, C. S,
12/31/115
I2/3I/H5
12/31/1*5
12/31/1*5
7,800.00
118,030.50
•
75,000.00
i H, 6o 7. 6 3
s9.607.63
I2/3I/U5
77,973.71
109,352.H2
77,973.71
109,352. H2
en
en
te|gg|H
mi
■ m m
mmm
- IS -
NAME OF CORPORATION
AND OFFICERS OR
EMPLOYEES
CALENDAR OR
FISCAL YEAR
ENDED
"
SALARY
COMMISSION
BONUS
OTHER
COMPENTOTAL
SAT ION ___________ _
MISSOURI (Cont.)
THE MAY DEPARTMENT STORES COMPANY
Brunmark, H, J »
Dauby, Jerome';
Dauby, Nathan L.
Geller, David
Gries, Lincoln
May, Morton J,
May, Tom
Ro senberg, Sam
Salomon, R'red Z.
Strauss, Leonard
THE PULITZER PUBLISHING COMPANY
Pulitzer, Joseph
SOUTHERN COMFORT- CORPORATION
.Fouke, L . R.
I/31/U6
• 50,000.00
75,000.00
100,000.00
70,256.26
65,000.00
50,000.00
10,000.00
1^,000.00
20,000.00
100,000.00
32,500.00
23,000.00
10,000,00
20,000.00
67,500,00
77,000.00
90,000.00
80 ,000.00
25.00,
25.00
ICO . 00
150.00
50,00
125:. 00
175.00
225.00
12/31/^5
100,000.00
85.025.00
100,025.00
SH,256.86
25,100.00
.100,150.00
100,050.00
100,125.00
100,175.00
100,225.00
100,000.00
65,530.8!+
165,530,8^
5,000.00
21!+,750« 71+
10,000.00
175»06s.53
365,616.92
219,750,7^
175,068.53
375,616.92
I 2 / 3 I/H 5
Fouke, P* B,
Fowler, F. E . , Jr.
'ITEW HAMPSHIRE
V
EXETER MNUFACTURING COMPANY
Kent, Hervey
9/30/U6
16,000.00
60,000.00
50,000.00
25,000.00
76,000.00
NEW JERSEY
AMERICAN HOME PRODUCTS CORPORATION
Brush, Alvin G.
12/3l/'45
15,000.00
90,000.00
c_n
-4
- 19 -
NAME OP CORPORATION
AND OFFICERS OR
EMPLOYEES
CALENDAR OR
.FISCAL YEAR
ENDED
SALARY
BONUS
OTHER
' COMPEN
SATION
TOTAL
-
NEW JERSEY (Cont.)
BENGUE, INCORPORATED
Seltzer, Theodore
3 RISTOL-MYERS' COMPANY
Bristol, Henry P.
Bristol, Lee H*
Bristol, William M . , Jr.
HAHNE AND COMPANY
Buck, Junior C.
HOFFMANN-LA ROCHE, INC..
Bareli, E. C.
Barney, L. D.
Bohst, E. H.
Ritz, H.
JOHNSON & JOHNSON
Johnson, R. N.
Smi th, G. E.
NEW JERSEY WORSTED MILLS
Haltermann, Frederick W.
NIXON NITRATION WORKS
Nixon, Stanhope
THE PRUDENTIAL INSURANCE COMPANY
OF AMERICA
D ’Olier Franklin
THE REI SS-PREMIER"CORPORATION
Hirsch, Rudolph
COMMISSION
12/31/45
12/31/45
1/31/46
12/31/45
13,000.00
2^g,250.92
60,000.00
49,999.92
49,999-92
261,250.92
27.¿¥5.86
27,8¥5.86
-27,8¥5.g6
30,000.00
268.75
8 8 ,1 1 4 .6 l
77,845.78
78,114.53
70,000.00
100,000.00
2 6 s .75
102,936.¥5
77,107.46
150,000.00
82,373.45
12/31/45
75*000*00
ig ,5 o U .o o
28,000.00
7¥,U25.00
103,000.00
92,929-00
12,000.00
67,139.10
79*139*10
12/31/45
12/31/45
87,881.03
87*881.03
12/31/45
100,000.00
100,000.00
I2/3I/45
50,000.00
2 5 ,5 ¥ 7.i¥
75,547.14
cn
CD
mi; m
NAME OP CORPORATION
and officers or
EMPLOYEES
1«
CALENDAR OR
FISCAL YEAR
ENDED ____
JERSEY (Coni.)
THE SINGER MAMJPACTERI EG- COMPANY
Sir Douglas Alexander, Bart.
UNITED STATES PIPE AMD FOUNDRY COMPA1'!Y
.Russell, F. P. S.
1 2 /3 1 /U5
12(1)1/45
♦Added compensation amounting to $2 1 ,6 9 1 was paid
YARDLEY OP LOFL'ON, INCORPORATED
Pelt, Dudley P.
Smith, Cecil
'12/ 31/^5
NEW YORK
«7, N. ADAM & COMPANY
Holder, A. 0 .
AIR REDUCTION COMPANY, INC.
Adams, C. E.
ALLIED CHEMICAL & DYE CORPORATION
Atherton, H. F*
ALLIED STORES CORPORATION
Br o id y , Edward ¥.
Coons, Albert
Lawrie, Walter H**
McCarthy, C, E.
Puckett, B. Earl
P y k e , Robert W.
AMERICAN BRAKE SHOE COMPANY
Given, William B. , Jr.
1/31/itb
I2 /3 I/4 5
12/31/4 5
1/ 31/46
12/31/4 5
NAME 0? CORPORATION
AND OFFICERS OH
EMPLOYEES
CALENDAR OR
FISCAL YEAR
ENDED
SALARY
COMMISSION
BONUS
OTHER
COMPEN
SATION
TOTAL
NEW YORK (Cont.)
AMERICAN BROADCASTING COMPANY, INC.
La Roche, Chester J*
Woods, Mark
AMERICAN CAN COMPANY
Black, Carlyle H.
Figgis, Dudley W.
Sullivan, Maurice J,
! AMERICAN CYANAMID & CHEMICAL CORE.
Derby, H. L.
AMERICAN CYANAMID COMPANY
Bell, W. B.
Cooper, K. E.
AMERICAN FLANGE & MANUEACTURINGCOMPANY, INCORPORATED
Parish, Richard L.
AMERICAN LEAGUE BASEBALL CLUB
OE NEW YORE, INCORPORATED
MacPhail, L. S,
AMERICAN LOCOMOTIVE COMPANY
Nickerman, William C.
Fraser, Dnncan
AMERICAN TELEPHONE & TELEGRAPH CO.
Cooper, C. P.
Gifford, W. S.
THE AMERICAN TOBACCO COMPANY
Hahn, Paul M.
Hill, George W.
Riggio, Vincent
*Less:
12/ 3 1 / P
84,375.00
75.000.00
8 4 ,3 7 5 .0 0 s
8 5 ,0 0 0 .0 0
1 0 ,0 0 0 .0 0
12/31M
4 ,7 0 0 .0 0
4 ,0 0 0 .0 0
4 ,1 0 0 .0 0
8 5 ,0 0 0 .0 0
1 2 5 ,0 0 0 .0 0
150,000.00
12/31/P
8 9 ,7 0 0 .0 0
129,000.00
1 5 4 ,1 0 0 .0 0
4U.92S.0 0
36,065.62
8 0 ,993*62
75.000.00
43,200.00
1 2 4,S49.13
34,67S.4S
199,349.13
7 7 ,8 7 8 .4 8
12/31/45
11/30/U6
1 2 5 ,0 0 0 .0 0
125,000.00
12/3 1 / P
50,000.00
6 0 ,3 1 9 .6 1
110,319.61
12/31/1*5
12/31/p
6 4 ,3 7 5 .0 0
90,000.00
1 ,271*00
1 ,4 1 3 .0 0
8 5 ,6 4 6 .0 0
91,413.00
99,999.96
206,250.00
1,7 0 0 .0 0
3,300.00
101,699.96
2 0 9 ,5 5 0 .0 0
•
12/31/p
50,000.00*
1 2 0 ,0 0 0 .0 0
50,000.00
28,985.52
48,309.20
2 8 ,9 8 5 .5 2
7 8 ,9 8 5 .5 2
168,309.20
78,985.52 ^
Salary paid to Paul M. Hahn by The American Tobacco Gompany but billed to a subsidiary company.
.00
0
jH
22
AnrfT-p-p
NAME
and
oe
corporation
officers
EMPLOYEES
or
_________________
calendar or
fiscal
year
salary
commission
compen
sation
bonus
.. RINDED
TOTAL
NEW YORK (Pont.)
12/31/45
52,166.64
15 2 ,1 6 6 .6 4
100,000,00
12/31/45
cm
0
0
«
0
0
AMERICAN WEEKLY, INCORPORATED
Berkowitz, Mortimer
AMERICAN WOOLEN COMPANY
Pendleton, Moses
C. C. ANDERSON STORES COMPANY
Hiashaw, Ezra B.
ATHERTON t CURRIER, INCORPORATED
Atherton, J. W.
BANKERS TRUST COMPANY
Colt, S. Sloan
HERMAN BASCH & COMPANY, INC.
Hatten, Ernest
Vort, Paul William
BELL AIRCRAFT CORPORATION
Bell, Lawrence D.
Carmichael, James Y.
Whitman, Ray P.
125,000.00
1 2 5 .6 0 0 .0 0
1 /31/46
1 1 6 ,1 2 3 .4 9
101,123.49
15,000.00
12/31/4 5 '
12,000.00
7 5 .6 9 4 .6 5
63,694.65
12/31/45
3,950.00
1 0 4 ,0 5 0 .0 0
3,000.00
3,000.00
9 8 ,732*89
9S.73S.89
50.00 24,296.79
15.00
50.00 23,617.12
1 1 9 ,9 4 6 .7 2
7 5 *0 1 5 .0 0
SI,167. 16
100,100.,00
1 2 /31/45
2-4 ,9 9 9 .9 8
24,999.98
70,732.91
70,738.91
1 2 /31/45
94,999.99
75,000.00
5 7 ,5 0 0 .0 4
Included in column 5 is the contribution made "by the Corporation to a trust fund
which forms a part of a pension plan for the benefit of employees. The amount
included for Lawrence D. Bell is $2 3 ,3 9 6 .7 9 and for Ray P. Whitman is $2 2 ,117.12.
CD
}_i,
23 -
hams op
corporation
AIT OFFICERS OR
Slvir’LO YEL S
CALENDAR OR
FI SCAT YEAR
ENDED
SALARY
COMMISSION
BONUS
OTHER
COMPEN
SATION
TOTAL
fflSW YORK (Cont»)
BEST AIT COMPANY, INCORPORATED
LeBoutillier, Philip
BLUE BELL, INCORPORATED
Fox, J. C,
BOOK-OF-TKE-MOiTH CLUB, INC.
Schermali, Harry
BROCKWAY MOTOR COMPANY, INC.
Piroumoff, G. •S.
CENTRAL HANOVER B A M AND TRUST CO.
Gray» William S., Jr.
CHARLES STORES COMPANY, INC.
Hornstein, B. S,
THE CHASE NATIONAL BANK OF THE
CITY OF NEW YORK
Aldrich, Winthrop W.
Campbell, H, Donald
CHEMICAL BANK & TRUST COMPANY
Houston, Frank K.
CITIES SERVICE COMPANY
Jones, W. Alton
COHN-HALL-MARX COMPANY (NEW YORK)
Agate, Sanford S.
Copeland, Abbott J.
Deutsch, Melvin E.
Loewy, Edwin
Schwab, Jacob W.
I/31/U6
60,000.00
05,000.00
65O.OO
125,650.00
11/50/46
101,666.66
I2/31/U5
50,000.00
60,000.00
200.00
110,200.00
30,000.00
4 7 ,0 0 0 .0 0
20,000.00
97,000.00
100,000.00
159. ^
1 0 0 ,1 5 9 .4 4
30,000.00
1 7 4 ,3 2 0 .5 4
204,320.54
175,000.00
1 0 0 ,0 0 0 .0 0
7 ,7 0 0 .0 0
7 ,6 0 0 .0 0
1 8 2 ,7 0 0 .0 0
107,8 0 0 .0 0
I2/3I/U5
I2/31/U5
1 /3L/46
1 2 /3l/'45
1 2 /31/^5
75,000.00
7 8 ,4 5 0 .0 0
3,450.00
12/31/^5
150,000'. 00
5/30/U6
30,000.00
22,500.00
2 0 ,0 0 0 .0 0
25,000.00
100,000.00
2 0 ,0 0 0 .0 0
25,000.00
ISO. 00
150,180.00
^3,063.15
8 0 ,9 7 6 .8 1
3 7 ,9 8 0 .9 6
S9 .7 7 i.o6
93,063.15
103,476.81
82,980.96
114,771*06
1 0 0 ,0 0 0 .0 0
OD
ro
- zb -
KÄME OP CORPOPATIOE
A1TD OPPICERS OH
__________ EMPLOYEES_________________
CALENDAR OR
PISCAL YEAR.
EBBED
SALARY
COMMISSIOK
_____________________
BONUS
OTHER
COMPENSAT IOK
TOTAL
_____
KE¥ YORK (Pont*)
COLUMBIA BRQADCASTIUG SYSTEM, IITC.
Kesten, Paul W.
COLUMBIA PICTUPES CORPORATION
Briskin,. Irving
Cohn, Harry
Cohn, Jack
Hall, A 1
Hartman, Bon
Hayworth, Pita
Kahane, B. B.
Montague, Abraham
Schneider, Abraham
Spingold, il. 3 .
Van Upp, Virginia
Vidor, Charles
CO M E R C IAL INVESTMKT TRUST INC.
Dietz* Arthur 0 .
In addition, contributions were
12/31/^5
9 5 ,7 6 ^ .7 6
6/30/U6
76 ,000.00
206,000.00
. 117,000.00
139,063.33
129,000.00
117,000.00
15,600.00
13,000.00
6 , 233.33
5,200.00
1 0 0 ,0 0 0 .0 6
00
76,791* 67
6 1 ,0 0 0 .0 0
9 2 ,5l6 -6 7
69,6*45.63
117.000.
91,666.67
91,666.67
12/71/^5
00
117-,000 *00
7 6 ,79 1-67
61 ,000.00
6*4,263.3*1
6*4,6*45.S3
117,000.00
76 ,000.00
223,600.00
130.000.
139,063.-33
129.000.
120.00
1 0 0 ,1 2 0 .0 6
lade to an approved pension plan.
CD
00
25
CALENDAR OR
PISCAL YEAR
ENDED
OTHER
SALARY
C O M 3 SI OH
COMPEISATIOH
TOTAL
100,000.00
7,650.00
107,650.00
T5 »ooo.oo
1,000.00
76,000^00
0
0
0
OJ
RAME OP CORPORATIOH
AND OPPICERS OR
EMPLOYEES
BONUS
87,7^0.00
5,206.00
80,306.00
HEW YORK (Cont.)
CORSOLIDATED EDI SOR COMPANY OP T O r YORK,
INCORPORATED AND ITS APPILIATED COMPANIES
Tapscott, Ralph H.
CORN EXCHANGE BANK TRUST COMPANY
Sherer, Dunham
TEE CROWELL- COLLI ER PUBLISHING CO.
Beck, Thomas R*
CURT I SS-WRIGHT CORPORATION
Vaughan, G.
DAZIAR» S, INCORPORATED
Peinberg, George
Priedlander, Emil
DEVOE & RAYHOLBS COMPANY, INC.
Dabney, W. C.
Mathews, W» E.
Pangborn, E. L.
Phillips, E. S.
Prindle-, S, B.
L. S. DONALDSON COMPANY
Brouillette, T. R.
I2/31/U5
1 2 /31/^5
12/31/^5
75,000.00
12,500.00
12/31/^5
75,100.00
12/31/U5
g7,633.80
9 2 ,8 3 3 .8 0
87.633.80
9 2 .8 3 3 .8 0
1 1 /30/46
36.000.
36.000.
30.000.
50.000.
25.000.
00
00
0k
00
00
66,681.03
55.567.53
5 5 ,567* 53
81,^99.03
5 5 .5 6 7 .5 3
1 0 2,6 8 1 ,0 3
62,960,13
80,960.13
91.567.53
25,567.57
131,^99.03
20.567.53
1/31/U6
1 8 ,0 0 0 .0 0
CO
- 26 -
NAME OF CORPORATION
AND OFFICERS OR
EMPLOYEES_____
CALENDAR OR
FISCAL YEAR
ENDED
SALARY
COMMISSION
BONUS
OTHER
COMPEN
SATION
TOTAL
NEW YORK (Cont.)
DOUGHNUT CORPORATION OF Ai'iERICA
Levitt, A.
HERBERT DUELER, INCORPORATED
Wick, Alfred E*
THE DUPLAN CORPORATION
Geier, Ernest C.
H. DUYS & COMPANY, INC.
Steur, Jphn A. C.
1 2 /3 1 M
k f 30/itó
6 7 ,9 9 9 .9 2
5,220.00
3 7 ,9 9 9 .9 2
20,000.00
2 2 ,0 3 3 .4 9
5S,96g.SI
5/31/1+6
72,000.00
S6,222.30
97,000.00
’ 25,000*00
3/31/«
1 0 1 ,831.46*
1 0 1 ,8 3 1 .4 6
* Includes $1 0 ,0 0 0 .0 0 paid on account of expenses
EASTMAN KODAK COMPANY
Chapman, Altert K.
Flint, Charles K*
Hargrave, Thomas J.
Mees, C, E, Kenneth
Sievers, Herman C*
ETHYL CORPORATION
Weht, Earle W.
FAIRCHILD ENGINE & AIRPLANE CORP.
Ward, J. Carlton, Jr*
GENERAL CARLE CORPORATION
Palmer, D. R. G*
12/31/45
73.961.55
ëU,7U9.99
1 0 3 ,1 7 3 .0 9
67,115.3s
7 2 ,ii5.UU
1 4 ,0 2 2 .0 1
1 4 ,5 6 5 .0 0
23,8 3 4 .6 2
1 5 ,3 9 4 .7 1
1 7 ,1 1 9 .7 1
s7.9s3.56
79.31u.99
127,007.71
S3,010.09
8 9 .2 3 5 .1 5
60,000.00
4 3 ,3 9 3 .1 9
103.39S. 19
I2/31/45
12/31/^5
600.00
100.SSU.S5
101.USU.85
12/31/45
60,000.00
30,000'. 00
90,000.00
- 27 ~
CORPORATION
AND OFFICERS OR
EMPLOYESS
name of
CALENDAR OR
FISCAL YEAR
ENDED
SALARY
COMMISSION
BONUS
OTHER
COMPEN
SATION
TOTAL
31,875.00
129*625.00
FEW YORK (Cont.)
GENERAL ELECTRIC COMPANY
Wilson, Charles 1 .
GENERAL FOODS CORPORATION
Francis, Clarence
Igleheart, Austin S.
Young, Udell C.
GENERAL MOTORS ACCEPTANCE CORP.
Schumann, John J . , Jr*
.2/31/U5
97,750.00
-£/3i/1+5
130,000*00
115,000.00
8 5 ,0 0 0 .0 0
130,000.00
115,000.00
85,000.00
13/31/U5
6^ 000.00
39*953.31*
300*00
105.255.31
* Includes the total value of Bonus Award granted for lÿ+4 , partly in General Motors Corporation
Common stock and partly in cash, payable Augustr 1 3 , 19^5* The stock portion of the award was
commuted at $67*125 per share, the closing market price of General Motors Corporation Common
stock on August 13, 19^5 * as evidenced by the New York Stock Exchange. GIMBEL BROTHERS, INC.
Eckhouse, Joseph L.
Gimbel, Bernard F.
W. T. GRANT COMPANY
Fogler, Raymond H.
i/31/tó
Uo.ooo.oo
57*913.23
1 0 0 ,0 0 0 .0 0
1 /31/H6
60,000*00
70,000.00
97,913.23
100, 000.00
130,000.00
CO
CD
28
M M E OF CORPORATION
AND OFFICERS OR
EMPLOYEES
-
CALENDAR OR
FISCAL YEAR
SALARY
;
ENDED_________
COMMISSION
\
■" ' ,
OTHER
BONUS
COMPENTOTAL
_______ SAT ION______ ______ _
HEW YORK (Cont.)
THE GREAT ATLANTIC & PACIFIC TEA
COMPANY (NEW JERSEY)
C Adams, 0 « C.
Brooks, C. A,
Byrnes, W.
THE GROLIER SOCIETY, INC.
Harding, C. C*
2 /2S/U6
,
100 ,121.00
1 0 0 ,1 2 1 ,0 0
100 121.00
101,121.00
60.00
100 ,121.00
12/31/^5
5 , 200.00
8 0 ,5 1 2 .7 8
1 0 0 ,1 8 1 .0 0
2 7 ,444.86*
1 1 3 ,1 5 7 .6 4
6 , 7 1 5 .0 1
5 , 1 6 7 .1 1
20 , 405.90
1 0 6,715*01
1 0 5 *167.H
1 2 0 ,4 0 5 .9 0
* Additional commission accrued
GUARANTY TRUST COMPANY OF NEW YORE
Cleveland, J« Luther
Conway, W, Palen
Stetson, Eugene W*
HANDY AND HARMAN
Handy, C. W.
Niemeyer« G. H.
HARR I MAN RIPLEY & COMPANY, INC.
Davis, Pierpont Y.
Ripley, Joseph F,
I2/3I A 5
12 /31/45
12/31/45
1 0 0 ,0 0 0 .0 0
,
1 0 0 ,0 0 0 .0 0
100.0 0 0 ,0 0
96 . 000 .
96 *000.00
00
50 . 000 .
50 . 000 .
00
00
96 ,000.00
96 , 000.00
3 4 , 350 . 00 *
39 , 350 . 00 *
8 4 .3 5 0 .0 0
89 . 350.00
« The Additional Compensation Plan for officers is based on a fixed formula under the Plan
applied to earnings for the entire year. The payment to officers is made as soon as
practicable after January 1 following, when the earnings for the year have been ascertained.
NEW Y O R K MIRROR DEPARTMENT THY] H3 ARST CORPORATION
W l n c k i e l l , W a lte r
12/31/45
6 3 , 600.00
3 4 ,0 8 0 .9 5
9 7 ,6 8 0 .9 5
CD
- 29 name of
CALENDAR OR
FISCAL YEAR
ENDED
corporation
a nd opp iceps o r
EMPLOYEES
-------- —
................... ... — ---- OTHER
SALARY
COMMISSION
BONUS
COÏPENSATION
TOTAL
KEN YORK (Cont.)
HEARST MAGAZINES, INC.
Berlin, Richard E.
THE WILLIAM HENGERER COMPANY
Hecht, Harold M.
HEYDEN CHEMICAL CORPORATION
Armour, B. R*
HOYLAND STEEL COMPANY, INC.
Hoyland, Colin G.
INGERSOLL-RAND COMPANY
Doubleday, George
INT a C-LIE SERVICE CORPORATION
Pinover, Len S.
INTERNATIONAL BUSINESS MACHINES
Kirk, Charles A.
Nichol, Prederick
Watson, Thomas J.
♦Note:
I2/3I/U5
1/31/U6
12 / 3 1 /^ 5
20 * 000,00
1 2 /31/^5
CORP.
12 /31/^5
8 3 , 365.00
6 3 , 365,00
7 8 , 000,00
7 8 * 000.00
8 M 7 5 -0 0
SU ,U 75 .0 0
60 , 000.00
100 , 000.00
100 , 000.00
30 , 000,00
3 3 , 1+00.00
2*635.75*
5 ,3 3 1 .0 0 *
3 2 5 ,5 ^ 2 .9 ^ *
92 , 6 35 .75
138 , 73 1 .0 0
^ 25 , 5 ^+2 . 9U
r fees.
1 amounts paid as directors’
12 / 3 1 / 1+5
102 ,^ 99.92
7 6 , 666.72
1 0 2 ,^ 9 9 ,9 2
76 , 666,72
1 2 /3 1 /1+5
100 , 000.00
r ü + , 0 9 5.70
99 , 0 9 5.70
1 5 , 000.00
12/31/U5
The above compensations are not inclusive
INTERNATIONAL PAPER COMPANY
Cullen, R. J.
Hinman, J. H*
JOHNS-MANVILLE CORPORATION
Brown, Lewis H*
7 0 , 000,00
30 , 000.00
1 2 /3 1 /^ 5
1 5 8 ,7 7 9 .6 1
1 0 8 ,7 7 9 .6 1
50 , 000.00
96 , 000*00
2 , 300.00
98 , 300.00
CO
CO
30 M M E OE CORPORATION
AND OFFICERS OE
'e m p l o y e e s
CALENDAR OR
FISCAL YEAR
ENDED
SALARY
COMMISSION
OTHER
COMPEN
SATION
BONUS
TOTAL
NEW YORK (Cont. )
I2/31/H5
1/31/U6
87,393*73
7 9 ,9 0 2 .SU
‘ .7 9 .9 0 2 .SU7 9 ,9 0 2 .su
139,829.97
87,393-73
260.00
220#00
200.00
220.00
200.00
220.00
U9,ooo.oo
25,000.00
105,839*l8
5 2 ,9 1 9 .5 8
2U,000.00
1^0,978.31
8 7 .6 5 3 .7 3
SO, 122..SU
8 0 ,102.SU
SO,122.SU
i
Uo , 029.97
8 7 .6 1 3 .7 3
15U,S39. i 6
7 7 ,9 1 9 .5 8
6/30/U6
12/31/^5
-—1
1/31/U6
V.T1
0
.0
0
0
JOHNSON & HIGGINS
Davey, U. N.
Hall, tf. E.
Hunt, 1 . E.
'Keegan.,-J. S,
La Boyteaux, W. H,
Lowe, Henry W.
JORDAN MARSH COMPANY
Mitton, Edward R.
Thompson, Cameron S.
JÖSKE BROTHERS COMPANY
Calvert, James H.
JULIUS KAY SER & COMPANY
Mueller, T. ÏÏ.
KSNNECOTT COPPER CORPORATION
Stannard, S.. T.
KRAET EOODS COMPANY
Kraft, J. H,
Pound, G. C.
THE LANDER COMPANY, INC*
Oestreieh, Charles H.
i 6U,97S.
135,615.00
98,115.00
125,000.00
31
8 0 0 .0 0
125,800.00
12/31/U5
87,083.38
77,083.30
8 7 ,0 8 3 .3 8
77.083.30
75,570.33*
75,570.00
12/31/U5
* Includes salary and bonus,
V
12/31/45
79,999.92
3/31/36
16,500.00
21,000.00
25,000.00
133,015.29
S 3 ,2 S 5 .22
S1.011.UU
S i,0 S 6 .U 3
3 .3 3 3 .3 3
83,333.25
1 0 ,0 0 0 .0 0
1^3,015.29
9 9 ,7 8 5 .2 2
1 1 2 ,0 1 1.44
116,086.43
1 0 ,0 0 0 .0 0
1 0 ,0 0 0 ,0 0
69
LEINEN ê MITCHELL, INC.
Lennen, P. W.
LONGINES-WITTNAUER WATCH COMPANY, INC
Cartoun, M. E.
Guilden, Morris
Heinmuller, J. P* V.
Perlman, Samuel
- 31 NAME ÔF CORPORATION
AND OFFICERS OR
EMPLOYEES_____
CALENDAR OR
FISCAL YEAR
ENDED
SALARY
COMMISSION
:_______________________
B01U S
OTHER
COMPENSAT ION
TOTAL
-, -
56,3V*. OS
65,000,00
1*5,000.00
1*5,000.00
7 5 ,355.51*
135,000.00
8 7 ,212. 3**
7 6 ,4TJ, ï 4
NEW YORK (Cent,)
LORD & TAYLOR
Dawley, Ht E.
Roving, Walter
Shaver, Dorothy
Sims, Y an V.
R. H. MACY & COMPANY, INC,
Marks, Edwin I,'
Straus, Jack I.
MANUFACTURERS MACHINE & TOOL
.
CO MPANY, .INCORPORATED
Berger, Paul H.
MANUFACTUREES TRUST COMPANY
Gihson» Harvey D,
Yon.Elm, Henry C,
CARL MARKS & COMPANY, INC,
Marks, Carl
2j2tck 'Vb o
MAYFLOWER DOUGHNUT CORPORATION
Black, B, C,
MCCALL CORPORATION
Warner, William B #
METROPOLITAN LIFE INSURANCE COMPANY
Lincoln, Leroy A*
PHILIP MORRIS & COMPANY »LTD. , INC.
Lyon, A. E.
NATIONAL BISCUIT COMPANY
Tomlinson , RA E.
NATIONAL BROADCASTING COMPANY, INC.
Trammell, Niles
1/31/U6
17,011. V>
70,000.00
^2,212.3V
3 1 ,4 7 7.i4
12/31/V5
90,280.00
1 0 0 ,2 8 0 .0 0
12/31/^5
S3 »200,00
98,200.00
15,000.00
12/31/V5
i,,iHs.co
2,355.00
87,156.63
7 3 ,SH6 .2b
8S,305.o3
7b,201.2b
12/31/U5
200,000.00
lU,500a00
90,000.00
200,000.00
_ 10U,500.00
V), 500..00
35,000.00
si,500.00
75,000.00
62,7^7. 2b
12/31M
12/31/U5
s o o .00
12/31/^5
133,537.26
125,000.00
1 2 5 ,000*00
100,000.00
100,000.00
3/31/46
12/31/45
90,000.00
1,200.00
91,200.00
200.00
9 5 ,4 o s .33
12/31/45
, so,20s.33
15,000.00
O
32 SAME o e c o r p o r a t i o n
AND OFFICERS OR
EMPLOYEES
CALENDAR OR
FISCAL YEAR
ENDED
OTHER
COMPEN
SATION
)OTAL
99,999,S4
7 9 ,9 9 9 .9 2
12)4,9 9 9 .9 2
^,900.00
3 .7 0 0 .0 0
4 .9 0 0 .0 0
IO1*-.s99.sU
23*699.92
1 2 9,2 9 9 .9 2
1 2 0 ,0 0 0 .0 0
5'
4 0 .0 0
1 2 0,5^0 .0 0
SAIixiP-Y
COMMISSION
BONNS
NEW YORK (Cont.)
^HE NATIONAL CITY BANK OF
NEW YORK
Brady, William Gage, Jr.
.Burgess, W. Randolph
Rentschler, Gordon S,
national
dairy products
corporation
Van Bomel, L. A.
NATIONAL g y p s u m c o m p a n y
Baker, Melvin H.
THE NEW JERSEY ZINC COMPANY
- Hayes, J. E.
NEW YORK TELEPHONE COMPANY
Whitmore, Carl
THE NEW YORK TRUST COMPANY
Bierwirth, John E.
PARAMOUNT PICTURES, INC, ,
Balaban, Barney
Bracken, Edward V.
3 rackett, Charles
Butler, Prank
Crosby, Bing
Cummings, Robert
De Kavil land, Olivia
Donievy, Brian
Narrow, J"ohn V.
Freeman, Y. Frank
Ginsberg, Henry
Goddard, Pgaulette
Hackett , Albert & Frances Goodrich
Howard, Dorothy (Dorothy Lainour)
Jones, IPaul M*.
12/31/45
-
'/T*
1 2 /31/45
12/31/45
100,0 0 0 .0 0
1 0 0,0 0 0 .0 0
1 2 /31/^5
76,500.00
2,530.00
79.030.00
7)4,250.00
1,560.00
7 5 .8 1 0 .0 0
k 9900.00
29,316.67
1 2 /31/45
12/31/1+5
12/29/^5
156.000.
13)4,0^1.66
119.000.
117.000.
175.000.
1 1 0.0 0 0 .
206,9UU.
9 9 ,7 0 8 .3 1
132.333.33
130,000.00
129.523.33
90.000.
151.275.00
112.372.00
91.000.
156,000.00
13^,0^1.66
119,000.00
117,000.00
175,000.00
110,000.00
206,9)4^.145
99,702.31
1 3 2 ,3 3 3 .3 3
130,000.00
1S9 .5&3 . 33
90,000.00
1 5 1 ,2 7 5 .0 0
1 1 2 ,3 7 2 .0 0
91,000.00
—s|
00
00
00
00
00
00
00
- 33 MME OF CORPORATION
CALENDAR OR
OTHER
AND OFFICERS OR
FISCAL YEAR
SALARY
COMMISSION
BONUS
COMPENTOTAL
EMPLOYEES___________________ ENDED________________________________________ SATION___________
NEW YORK (Cont.)
PARAMOUNT PICTURES, IN C. ( C o n t .)
K eo u gh , A u s t in C .
L a d d , A la n W.
L a n .fie l d , S id n e y
L e i sen , M itc h e ll
MacGowan, K en n eth
M a r s h a l l, G eorge
M cC a re y , Thomas L e o
Mi H a n d , Raymond
M i l l e r , Setoh X* R e a g a n , C h a r le s M,
S ta n w y c k , B a r b a r a
T h o r n b u r g , B e t t y Ju n e ( B e t t y H u tto n )
T u g en d , H a r ry
T u n h e rg , K a r l 0*
W ild e r , Sam uel B i l l y
Z u k o r , A d o lp h
PHELPS DODGE CORPORATION
C a t e s , L o u is S .
PHELPS DODGE COPPER PRODUCTS CORP.
Brow n, W y lie
THE A. POLSKY COMPANY
M cC o rm ick , W, E .
RADIO CORPORATION OF AMERICA
F o ls o m , F ra n k M*
S a r n o f f , D a v id
12/29/45
5 , 1*00.00
7 8 , 000.00
1 0 7 . 000 .
00
108 , 3 3 3 .3 3
120 , 202.57
7 8 , 000.00
1 5 6 . 000 .
00
3 ^ 5 . 1*26.61
12 5 . 2 3 3 .3 3
1 3 2 , 1*0 0 .0 0
8 1 , 735 a 1*
11*0 , 000.00
1 0 2 . 5 2 3 .3 3
11*9 . 350.00
9 1 , 000.00
100 , 666.67
159 , 1*0 0 .0 0
150 , 000.00
1 ,1 0 0 .0 0
1 5 1 , 100.00
82 , 050.32
1 ,2 0 0 .0 0
2 3 , 250.32
7 8 , 000.00
1 0 7 , 000.00
102 , 3 3 3 .3 3
180 , 202.57
7 2 , 000.00
156 , 000.00
35 5 . ^ 26,61
i2 5 tS 3 3 .3 3
138 , 1*00*00
81,735.1**
l*}-0 , 000,00
102 , 5 2 3 .3 3
i**9 .3 5 0 .o o
9 1 , 000.00
100 , 666.67
10**, 0 0 0 .0 0
50 , 000,00
12/31/45
12 / 3 1 /U5
I / 3 1 /U6
1 2 /31 /^ 5
l 1*. 999 .92
67,329.29
8 2 , 329.21
7 5 .0 0 0 .0 0
1 0 0 ,0 0 0 .0 0
1 5 . 000.00
25.00
100 , 025.00
9 0 ,0 0 0 .0 0
—4
ro
3b NAME OE CORPORATION
AND OEEIC1RS OR
em ployees
CALENDAR OR
FISCAL YEAR
ENDED
SALARY
COMMISSION
BONUS
OTHER
.COMPENSATION
TOTAL
NEW YORK (Conte)
THE READER’S DIGEST ASSOCIATION, INC.
Cole, Albert L0
Payne, Kenneth W*
Wallace, DeWitt
THE ROLLMAN & SONS COMPANY
Jacobs, George S«
ROYAL TYPEWRITER COMPANY, INC.
Cooke, C. B.
Eaustmann, E, C*
RUSSELL, BURDSALL & WARD BOLT
AND NUT COMPANY
Ward, Evans
RUSSELL & STOLL COMPANY, INC*
Stoll, Albert E,
SAKS & COMPANY
Gimbel, Adam L.
THE E. & M. SCHAEEER BREWING CO, *
Schaefer,. E. M. E»
Schaefer, R. J.
SCHINE CHAIN THEATRES, INC,
Schine, J. M.
SENECA TEXTILE CORPORATION
Egger, Luis G.
Straus, Charles B.
SHELL OIL COMPANY, INC.
Belither, S*
Eraser, Alexander
SHELL UNION OIL CORPORATION
van der Woude, R. G. A,
12/31/^5
8 4 ,5 0 0 ,0 0
8 4 ,'500*00
9 9 *5 0 0 ,0 0
215.62
8 4 ,7 1 5 .6 2
8 4 .5 0 0 .0 0
9 9 .5 0 0 .0 0
1 8 ,0 0 0 ,0 0
6 0 ,873.20
7 8 ,8 7 3 .2 0
I/3I/I16
7 /3 1 / ^
80,750.00
9 7 »S2 5 .0 0
80.750.00
9 7 .8 2 5 .0 0
6 /30/46
22,500*00
10 5 ,2>+5 .2 7
i2 7 ,7>+5 .2 7
12/31/^5
52,000,00
2 8 ,8 0 8 .1 2
8 0 ,8 0 8 .1 2
1/31/46
60,000000
25,000.00
85,000.00
12/31/45
8 4 ,0 0 0 .0 0
1 0 8 ,0 0 0 .0 0
IbO.OO
1 8 0 .0 0
8 4 ,160.00
1 0 8 ,1 8 0 .0 0
S/31/46
1 0 2 ,200,4?
1 0 2 ,2 0 0 .4 7
6 /30/4 6 '
30,000.00
>+5 .999.9s*
8 i,oo+t.9 3
123,1+56.09
111,004.93
169,456.03
12/31/45
60,000,00
70,000.00
30.000.
30.000.
8 0 ,0 0 0 .0 0
30,000.00
00
00
90,000.00
100,000.00
12/31/45
110,000.00
co
- 35 -
MME OP CORPORATI ON
AITI) OFFICERS OR
EMPLOYEES
CALENDAR OR
FISCA L YEAR
ENDED
OTHER
COMPEN
SATION
TOTAL
60,000.00
52,002.75
1 1 2 ,0 0 2 .7 5
155.199.96
300.00
155. “+99.96
5 ,8 7 7 .7 3
1 0 ,6 5 2 .3 5
5 *395*00
6,65s.3k
72,734.27
110,658.35
9 5 *995*00
106,658.34
1 8 0 .0 0
100,179.92
SALARY
COMMISSION
BONUS
FEW YORK ( C o n t .)
SIM P LICIT Y PATTERN COMPANY,
INCORPORATED AITD SUBSIDIARY COMPANY
S h a p ir o , Jo s e p h M.
SIN CLA IR O IL CORPORATION
S i n c l a i r , H. F .
STANDARD O IL COMPANY
(IN C . IN NEW JER SEY)
A bram s, F . W.
G a ll a g h e r , R . W,
H a rd e n , O r v i l l e
H olm an,
STERN BROTHERS .
R io r d a n , W illia m 0*
TIME,INCORPORATED (NEW YORK)
S t i l i m a n , C h a r le s L .
THE TITCHE-GOETTINGER COMPANY
Brovm , W illia m J .
TOBIN PACKING COMPANY, IN C,
T o b in , F , M.
TODD SHIPYARDS CORPORATION
R e i l l y , Jo h n D ,
TUBIZE RAYON CORPORATION
B a s s il l, J . E,
i2/3i/“+5
12/31/U5
1 2 /31/^5
72,857.1“+
1 0 0 ,0 0 0 .0 0
90,000.00
1 0 0 ,0 0 0 .0 0
1/31/H6
“+9.999.92
50,000.00
50,000.00
30,613.33
80,613.33
1 8 ,0 0 0 .0 0
8 4 ,2 9 8 .1 3
102,292.13
61,250.00
9 0 ,0 0 0 ,0 0
151,250.00
12/31/“+5
l/3i/“*6
10 /31/46
12/31/^5
li5 ,7 7 6 .“+5
115,776. “+5
12/31/^5
7 5*000.00
7 *5 0 0 .0 0
161.28
22,661.22
~>J
36 M M E OF CORPORATION
AND OFFICERS OR
EMPLOYEES
CALENDAR OR
FISCAL YEAR
ENDED
--------SALARY
COMMISSION
BONUS
OTHER
COMPENTOTAL
SAT ION_____________
NEW YORE (Cont.)
TWENTIETH CENTURY-FOX FILM CORPORATION
Bâcher, William A,
Bacon, Lloyd
Boyer, Charles
Connors, Thomas J*
Cromwell, John
Cummings, Irving
Day* Richard Wé
Faye, Alice
Foy, Bryan
Cordon, Mack
Coulding, Edmund
Grahle, Betty
Hathaway, Henry
Haymes, Richard B.
Hoffenstein, Samuel
Kumherstone* Hi B*
James, Harry Hé
Jessel* Ueorge A*
King, Henry
Lang, Walter R.
Lighton; Louis D.
L u M t s c h , Ernst
MacMurray, Frederick
Mankiewicz, Joseph L,
Miranda, Carmen
Michel, William C'*
Mitchell, Thomas
Moskowitz, Joseph
Newman. Alfred
1 2 /29/^5
72,000.00
l6 5 .7 0 S.3 3
135,000.00
6,100.00
10k 90 0 0 ,0 0
93.500.00
96,333.25
7 8 ,0 0 0 .0 0
101.666.67
169,000.00
77,233*33
8 5 ,0 0 0 .0 0
208,000.00
130,000.00
1^3*333*33
81.250.00
87.250.00
121.666.67
110,500.00
96,666.66
131,
35
155.666.67
130.000.
203,525.66
182 . 000 .
115,000.00
73*702.33
152,516*67
72.500.00
93,862.68
78,000.00
165,708.33
135.000.
00
110,100.00
93*500*00
96,333.25
72, 000.00
101.666.67
169.000.
00
77,833*33
85 , 000 . 0 0 ’
2 0 2 .000.
00
130,000.00
1^3*333*33
8 1 ,2 5 0 ,0 0
8 7 ,2 5 0 .0 0
121.666.67
110,500.00
96,666.66
131,
35
155*666.67
130.000.
203.525.66
00
1 8 2 .0 0 0 .
00
6 ,so o .o o
—J
07
115,000.00
80,502.33
152.916.67
78,500.00
93,862.68
00
00
- 37 -
M M E OF CORPORATION
AND OFFICERS OR
EMPLOYEES
CALENDAR OR
FISCAL YEAR
ENDED
-------------------- a
SALARY
COMMISSION
BONUS
OTHER
COMPENSATION
TOTAL
.
NEW YORK (Pont,)
TWENTIETH CENTURY-FOX FILM
CORPORATION (Cont.)
Nolan* Lloyd B.
O'Hara, Maureen
Perlherg, William
Power, Tyrone
Preminger, Otto
Ratoff, Gregory
Schreiher, Lew
Seaton, George' E,
Skouras, Spyro s:P*
Stahl, John-M.
Tierney, Gene
Trotti, Lamar
Zanuck, Darryl F,
UNDERWOOD CORPORATION (DELAWARE)
Stowell, Leon C.
Wagoner, Phillip P.
UNION BAG & PAPER CORPORATION
Calder, Alexander
UNION PACIFIC RAILROAD COMPANY
AND AFFILIATED COMPANIES
Charske, F, W*
Jeffers, W, AM.
UNITED ARTISTS CORPORATION
Sears, Gradwell L»
WAH CHANG TRADING *CORPORATION
Li, K. C*
12/29/45
8 1 ,8 9 1 .6 7
1 9 0 .6 6 6 .6 7
182, 000.00
110,^ 00.00
131,000*00
150,500.00
87,000.00
156,000.00
1,600.00
2 0 0,0 0 0 .0 0
17 8 .9 1 6 .6 7
llU,9 l6 .6 6
1^9,520.83
260,000.00
12/31/45
12 / 31/4 5
12/31/45
78,190.00
139,190.00
35,061.0^
•8 5 ,0 0 0 ,0 0
75-, 000» 00
75-,óoo»oo
750.00
120', 811. Ck
3,875.00
210.00
78,875.00
75,210.00
12 / 31/4 5
130*000-. 00
1 2 /31/4 5
81,891.67
190,666.67
182,000-. 00
110*^00.00
131.000.
00
150,500.00
87,000.00
156.000.
00
201,600.00
178,916.67
iiU * 9 l6 .66
11+9,520.83
260,000.00
U*500.00
1 5 3 .S3 8 .55
23.B32.55
120,500.00
80.00
125,080.00
-n ]
CD
3S -
ÍE OF CORPORATION
AND OFFICERS OR
CALENDAR OR
FISCAL YEAR
EMPLOYEES
ENDED
SALARY
COMISSION
BONUS
OTHER
COMPEN
SATION
TOTAL
NEW YORK (Cont.)
WALLERSTEIN COMPANY, INC.
Graf, William
Wallerstein, Leo
12/31/45
Wa lw or t h company
Holton, W. B . , Jr.
12/31/45
WESTERN ELECTRIC COMPANY, INC*
Stoll, C. G*
THE WESTERN UNION TELEGRAPH COMPANY
Williams, A. N.
R. C. WILLIAMS & COMPANY, INC.
Jaburg, Hugo F,
Koerner, Irving A*
McMahon Joseph F.
Roer, Albert
F. W* WOOLVORTH COMPANY
Cornwell, À* L.
Crowther, H* S.
Deyo, C. W.
O ’Neil, H. E.
12/31/U5
8 1 ,0 0 0 .0 0
9 4 ,0 0 0 .0 0
21,000.00
10,000.00
60,000.00
8 4 ,0 0 0 .0 0
7 5 ,0 0 0 .0 0
4 5 ,0 0 0 .0 0
120,000.00
90,000.00
1,320.00
91,320.00
68,3 3 3-33
3 ,5 1 5 .0 0
7 6 ,8 4 8 .3 3
12/31A 5
4 /30/46
52,000.00
9,600.00
12/31/U5
50,000.00
5 7 ,9 2 8 .0 8
12,009*11
76,469.63
128,663.52
1 0 2 ,0 0 0 .0 0
7 9 ,3 3 7 .1 9
7 6 ,4 6 9 .6 3
1 2 8 ,6 6 3 .5 2
•
9 4 ,2 0 9 .0 1
8 0 ,4 8 4 .2 9
2 5 0 ,9 7 4 .5 0
8 7 ,6 7 5 .8 7
94.209.01
8 0 ,48 4 .29
2 5 0 ,9 7 4 .5 0
8 7 ,6 7 5 .8 7
NORTH CAROLINA
R. J. REYNOLDS TOBACCO COMPANY
Williams, S. Clay
1 2 /31/^5
,
100 000.00
100, 000.00
OHIO
TEE AMERICAN ROLLING MILL COMPANY
Hook, Charles R,
Sebald, W. W*
Verity, Calvin
12/31/45
82,693.OO
4 9 ,005*71
6 5 ,0 5 0 .6 2
1 4 8 ,3 3 8 .1 2
88,392.7s
117,566.72
6 5 ,6 4 5 .1 2
3 9 .3 8 7 .0 7
52,516.10
-nJ
NAME OP c o r p o r a t i o n
.AND OFFICERS OR
EMPLOYEES
CALENDAR OR
FISCAL YEAR
ENDED
SALARY
COMMISSION
BONUS
OTHER
COMPEN
SATION
TOTAL
OHIO (Cont.)
BREWING- CORPORATION OF AMERICA
Bohannon, J. A*
CHAMPION SPARK PLUG COMPANY
Stranahan, Frank I),
Rtranahan, Robert A*
THE CROSLEY CORPORATION
Cosgrove, Raymond C*
DAVID DAVIES/ INC.
JAMESON, Harry W.
EATON MANUFACTURING COMPANY
Eaton, J. 0 ,
THE FOREST CITY PUBLISHING COMPANY
Bellamy, Paul
Graham, Sterling E.
GENERAL MACHINERY CORPORATION
Rentschler, G. A*
THE B. F. GOODRICH COMPANY
Collyer, John L.
THE GRUEN WATCH COMPANY
Katz, Benjamin S*
ROBERT-HELLER £ ASSOCIATES, INC.
Heller, Robert
9/30
36,000^.00
103,10,1.06
67,101.06
12/31/45
120,000.00
170,000.00
120,000.00
170,000.00
1 2 /31/45
12 /3 1 /4 5 “
1 2 /31/45
4 9 ,999*92
4 0 ,0 0 0 .0 0
8 9 ,9 9 9 .9 2
1 8 ,0 0 0 .0 0
11 7.12S.73
1 3 5 .1 2 8 .7 3
30,000.00
90,000.00
60,000*00 *
12/31/45
1 2 /31/45
1 2 /31/45
3 /3^/46
17,950.00
4 0 ,0 0 0 .0 0
101,179.17
57,916.67
119,129.17
97,916.67
7 8 ,0 0 0 .0 0
1 0 0 .0 0
7 8 ,1 0 0 .0 0
j
1 0 0 ,0 0 0 .0 0
1 0 0 ,0 0 0 .0 0
4 2 ,0 0 0 .0 0
120,295.45
7 8 ,295.^ 5
12/31/45
7 5 ,0 0 0 .0 0
919.34*
75.919.3*
* Premium on life insurance - portion of Company’s contribution to Pension Trust.
INDUSTRIAL RAYON CORPORATION
Rivitz, Hiram S.
♦Note:
7 5 ,0 0 0 .0 0
12/31/45 .
3 3 .893.«*
This amount does not include an amount of $26,10b.lb paid by Industrial Rayon Corporation^
during 1945 into Industrial Rayon Corporation Employees’ Pension Fund Trust for the benefit of
this officer.
This amount was not available to this officer during the year 1945.
10.8 ,8 9 3.S4*
ko HAMB OB CORPORATION
, AND OFFICERS OR
EMPLOYEES
CALENDAR OR
FISCAL YEAR
ENDEL
SALARY
COMMISSION
BOWS
OTHER
COMPEN
SATION
TOTAL
OHIO (Cont*)
THE F. AND R. LAZARDS AND COMPANY
Lazarus, Simon
THE LINCOLN ELECTRIC COMPANY
Lincoln, J. F.
THE MIDLAND STEEL PRODUCTS COMPANY
Kulas, E. J.
THE PHILIP CARÉY MANUFACTURING CO.
King, R. S.
THE PROCTER & GAMBLE COMPANY
Barnes, F. M,
Br odi e, R* K,
Deupree, R. R*
THE STANDARD OIL COMPANY (OHIO)
Holliday, W. T.
THOMPSON PRODUCTS, INC.
Crawford, F* C.
THE TIMKEN ROLLER BEARING COMPANY
Umstatt-d, William E.
THE WARNER & SWASEY COMPANY
McDonald, L. D.
Stilwell, C, J.
THE WEATHERHEAD COMPANY
Weatherhead, AÀbert J., Jr*
1/31/1+6
100,000.00
100,000.00
1 2 /3 1 /U5
7 5 ,1487.1+1
12/31/1*5
9 9 ,)429.00
12/31/U5
7 8 ,8 7 2 .8 9
3 3 ,878*89
145,000,00
6/30/1*6
75.000.
75.000. 00
lQÓ,000.00
00
19.000.
19.000. 00
63,791.00
914.0 0 0 .
914.0 0 0. 00
1 6 3 ,7 9 1 .0 0
00
12/3X/1+5
120,000.00
120,000.00
1 2 /31/^5
5OO.OO
91,000.00
91,500.00
12/31/U5
iui+,563.32
ikbf563:32
12/31/1+5
35,000.00
*45,0 0 0 .0 0
50.000.
60.000.
143,^-00.00
140,000.00
85,000.00
105,000.00
00
00
12/31/1+5
8 3 ,1400.00
OKLAHOMA
CONTINENTAL OIL COMPANY
Moran, Dan
12/31/1*5
100,000.00
.
200.00
100,200.00
CD
00
4i
M M E OF CORPORATION
Ain) OFFICERS. OR
EMPLOYEES
CALENDAR OR
FISCAL YEAR
ENDED
-
SALARY
COMMISSION
BONUS
OTHER
COMPEN
SATION
TOTAL
PENNSYLVANIA
ALUMINUM COMPANY OF AMERICA .AND
AFFILIATED CORPORATIONS
Davis, Arthur V*
Gibbons, G. R.
Wilson, I. W.
ARMSTRONG CORK COMPANY
Prentis, H. W., Jr*
THE AUTOCAR COMPANY
Page, Robert P., Jr*
BETHLEHEM STEEL COMPANY (DELAWARE)
Mackall, Paul
BETHLEHEM STEEL COMPANY (PENNSYLVANIA)
Bent, Qp.incy
Berkeley, Norborne
Gross, J. M*
Grace, E. G,
Holton, C, R.
Homer, A* B,
Jacobs, M, L.
Larkin, J. M.
McMath, R. E*
Shick, F, A*
THE CURTIS PUBLISHING COMPANY OF
PENNSYLVANIA
Fuller, W* D*
ERIE FOUNDRY COMPANY
C u r r ie , D* A*
1 2 /31/^5
1 0 8 ,0 0 0 .0 0
7 5 ,4 0 0 .0 0
76,000.00
1 0 8 ,0 0 0 .0 0
7 5 ,4 0 0 .0 0
76,000.00
125,000.00
125,000.00
12/31/^5
12/31/^5
86,797.44
50,000.16
2 .0 S3.3H
90,000.00
59,760.00
147,760.00
90,000*00
50.000.
4 5 .0 0 0. 00
150,000.00
50.000.
4 0 .0 0 0.
50.000.
50.000.
60.000.
60.000.
59.760.00
4 7 .7 4 2 .0 0
4 7 .7 4 2 .0 0
71.645.00
4 7 .7 4 2 .0 0
59.760.00
4 7 .7 4 2 .0 0
4 7 .7 4 2 .0 0
59.760.00
59.760.00
149.760.00
9 7 .7 4 2 .0 0
92.742.00
2 2 1 .6 4 5 .0 0
9 7 .7 4 2 .0 0
99.760.00
9 7 .7 4 2 .0 0
9 7 .7 4 2 .0 0
119.760.00
119.760.00
12/3X/U5
12/ 31/^5
00
00
00
00
00
00
00
12/31/^5
3H.713.9H
77,197.14
77,137.lH
6/3O/U6
2 7 *1 7 5 .0 0
2s.5iu.H9
5 1 ,8 1 8 .1 0
107,5 3 ^ .5 9
OF CORPORATIOH
AND OFFICERS OR
EMPLOYEES ____ _
name
CALENDAR OR
FISCAL YEAR
ENDED
OTHER
SALARY
COMMIS SION
BONUS
COMPEN
SATION
TOTAL
PENHSYLYAHIA (Cortt.)
W eir* Ê . T .
THE PENNSYLVANIA RAILROAD COMPANY
Clement, M, W.
12/31/^5
62,500.00
75,000.00
13 7 ,5 0 0 .0 0
25,000.00
2 0 2,875*9^
2 2 7,S75.9I+
56,OOS.20
5 2 ,9 8 0 .7 2
23,991*20
2 7 ,0 1 9 .28
12/31/^5
03 03
O O
O O
O O
O .
O
.
Q O
O O
1/31/H6
1 2 /31/45
90,000.00
90,000.00
1 2 /31/^5
75.000.
50.000. 00
112,500.00
62.500.00
2 6 ,6 6 6 .6 4
9 3 .7 5 0 .0 0
00
0 0 0
0 0 0
. • .
0 0 0
0 0 0
GREAT LAKES STEEL CORPORATIOH
Fink, G. R*
ÏÏEIHTZ MANUFACTURING COMPANY
Meinel, William J*
JOSEPH HORHE COMPANY
Burchfield, W. H,
F r i e s e l l , W illia m H* » S r .
KOPPERS COMPANY, INC.
Williams» J. P.» Jr.
NATIONAL STEEL CORPORATIOH
Pink, G. R.
Millsop, T. E.
1 2 /31/45
785.00
110,000.00*
137,9 0 0 .0 0
7 6 ,9 6 6 .6 4
206,650*00
1 1 0 ,785.00:
* Because of restrictions imposed by Federal regulations, actually paid at the rate of $1 1 0 ,0 0 0
per annum although the salary is $12 5 »000»
PITTSBURGH PLATE GLASS COMPANY
Clause, R. L.
Higgins, H. B.
JACOB SIEGEL COMPANY
Siegel» Jacob
SMITH, KLINE & FRENCH LABORATORIES
Boyer, Francis
Kline, C. Mahlon
1 2 /31/^5
2 7 ,0 0 0 .0 0
2 7 ,6 0 0 .0 0
50,000.00
5 3 ,7 5 0 .0 0
1 /31/45
90.000.
90,000.00]
00
12/31/45
2 7 *5 0 0 ,0 0
30.000.
00
77.600.00
51.3 5 0 .0 0 1
66.550.00
72.600.00
94,050.00
102,600.00]
- 43 M M E 01 CORPORATION
AND OEEI CEE S OP.
EPLOYEES
CALENDAR OR
EISCAL YEAR
ENDED
SALARY
COMMISSION
BOEUS
OTHER
COMPEN
SATION
TOTAL
PENNSYLVANIA (Cont.)
TASTY BAKING COMPANY
Baur, P. J.
Morris, H. C.
JOHN WANAMAKER PHILADELPHIA
Shipley, Gharles R.
12/31/^5
1 1 3 .6 4 7 .0 9
1 1 3 .6 3 7 .0 9
1 1 3 ,6^7 .0 9
1 1 3 ,6 3 7 .0 9
1 /31/46
80,500.00
20,500.00*
60,000.00
*Note: ’’Def erred Bonuses payable in future years have not been taken into consideration in the
preparation of this schedule, nor have payments to Connecticut General Life Insurance
Company on account of premium on Group Annuity Contract of the corporation.1*
WEIRICH STEEL COMPANY
Millsop, T. E.
WE ST INGHOU SE ELECTRIC CORPORATION
Bucher, George -H*
Robert son, A. -W*
12/31/^5
3 3 ,6 6 6 .7 2
50.000.
00
95,000.00
150,025.00
45.000.
47.000.
1 ,8 0 0 .0 0
00
1,650.00
0c
8.3 ,6 6 6 .7 2
I2/3I/U5
14 1.8 0 0 .0 0
19.
8 .67.5 .0 0
RHODE ISLAND
BRADFORD DYEING ASSOCIATION (U* S. A. )
Summersby* George
LONSDALE COMPANY
Burton, Harry H*
11/30/H6
30.000.
00
55,000.00
85,000.00
4 0 .0 0 0.
00
7 0 ,2 7 3 .7 2
110,273.7s
62,712.80
1 1 1 ,4 6 8 .8 0
12/31/^5
SOUTH CAROLINA
ROCK HILL PRINTING & FINISHING CO.
Joslin, Archie 0 »
12/31/45
4 8 ,750*00
CO
PO
- 44
NAME OF CORPORATION
AND OFFICERS OR
EMPLOYEES
CALENDAR OR
EISCAL YEAR
ENDED
SALARY
COMMISSI03
BONUS
OTHER
COMPEN
SATION
TOTAL
TENNESSEE
TENNESSEE EASTMAN CORPORATION
Wilcox, P. S.
I2/3I/U5
76,^00.01
13,16^.13
S9,56U .ik
19,9 9 9 .9 2
88,986*11
60,000.00
79 ,999.92
8 8 ,9 8 6 .1 1
TEXAS
HUGHES TOOL COMPANY AND ITS
SUBSIDIARY - GULP BREWING COMPANY
Dietrich, Noah
Perelle, C. W.
HUMBLE OIL & REPINING COMPANY
Wiess, H. Co
POLLOCK PAPER & BOX COMPANY
Jacohs, Leslie L.
THE TEXAS COMPANY
Klein, Harry T.
Rodgers, W* S, S,
12 /31/^5
1 2 /31/^5
b 9 ,l7'
4 .00
9,663.9g
78 ,837 .9S
I2/31/U5
50,000.00
100 , 000.00
50,000.00
12/31/I+5
100 ,000.00
1 2 5 ,0 0 0 .0 0
100 ,000.00
125,000..00
100,000.00
100, 000.00
VERMONT
CHICAGO STOCK YARD'S COMPANY
Prince, Frederick Henry
E. B. & A. C. WHITING COMPANY
Unsworth, Thomas A,
I2/3I/U5
3/31 /I46
*+8 ,0 0 0 .0 0
75,000.00
123,000.00
VIRGINIA
NEWPORT NEWS SHIPBUILDING AND
DRY DOCK COMPANY
Ferguson, H. L.
*Note;
I2/3I/U5
1+0,000.00
85,50^35*
125 ,50*+.35
Incentive additional compensation for and in respect of services rendered in 19*+*+ paid in 1945.
CO
CO
A5
NAME OF CORPORATION
and
officers
op
EMPLOYEES __ _
CALENDAR OP
FISCAL YEAR
ENDED
SALARY
CO MHISSION
BONUS
OTHER
COMPENSATION
TOTAL
52,53^.56
1 2 7 ,53^-56
VIRGINIA (Con't±)
REYNOLDS METALS COMPANY
Reynolds, R. S.
12/3 1 /U5
75,000.00
WISCONSIN
THE ELECTING SPPAYIT COMPANY
Deutsch, S.
THE EALK CORPORATION
Ealk, Harold S.
WESTERN PRINTING & LITHOGRAPHING CO*
Benstead, H* M*
Voight, Elmer G*
Wadewitz, E* H*
Wadewitz, W. R*
12/3 1 /^5 .
12 /31/^5
18,923.20
68,360.00
27,283.20
26,000.00
68,567.07
9^*567.07
12/31/45
9.600.00
9.600.00
15,000.00
9.600.00
92,900*S2
1 0 5 ,9 5 7 .9 3
1^6,630*19
11^,7 3 7 .2 9
102,500.22
1 1 5 ,5 5 7 .9 3
161,630.19
12^,337.29
w aJ
- 1+6 NAKE OE COEPOEATION
AND Off! GEES OE
EMPLOYEES
CALENDAR OE
EX ùCAL YJiAE
ENDED
SALARY
COMISSION
BONUS
OTHEE
COMPEN
SATION
TOTAL
EEPOET OE PAYMENTS OE SALARY,.COMMISSION
BONUS OE OTHEE COMPENSATION PAIL IN
EXCESS OE $75-»OCO. 00 COMPILEL FROM
INCOME EETUENS, SCHEBUIE E-l, PILED
EOE THE CALENDAR YEAE I9U3 AND FISCAL
YEARS ENDED IN 19I+H
SUPPLEMENTAL NO. 3
Delaware
VICK CHEMICAL COMPANY
Preyer, % Y.
Ei chard son, H, $♦
6 /3 0 /'4^
6U,625*00
50,625.00
25.010.00
25.010.00
550.00
500.00
90,215.00
76U 3 5 .0 0
NEW YOEK
NE ST IE* S MILK PRODUCTS, INC*
Norton, D. E.
NOEPA ESSENTIAL OIL AND CHEMICAL
COMPANY, INCOEPOEATED
Kohl, Hermann J.
Rowse, V i n i am h *
*
1 2 /3l/’4 3
6s,750*00
9 8 ,7 5 0 .0 0
30,000.00
\
12/31/43
15,000.00
76,229.^5*
59,010*00
1 8 ,2 2 5 .0 0
91,229.45
7 7 ,2 3 5-00
Includes $2 1 ,5^2.U4 allocated as Traveling Expenses.
CD
cn
- 47
NAME OF CORPORATION
AND OFFICERS OR
EMPLOYEES
calendar or
FISCAL YEAR
ENDED
SALARY
COMMISSION
BONUS
OTHER
COMPENSATION
TOTAL
REPORT OF PAYMENTS OF SALARY, COMMISSION
BONUS OR OTHER COMPENSATION PAIR IN
EXCESS OF $7 5 ,0 0 0 .0 0 COMPILER FROM
INCOME RETURNS, SCHEDULE F-l, FILED
FOR THE CALENDAR YEAR 1944 AND FISCAL
' YEARS ENDED IN I9U5.
SUPPLEMENTAL NO, 2
ALABAMA
WATERMAN STEAMSHIP CORPORATION
Roberts, S. A,
9/30/Ù5
67,200.00
4 0 ,0 0 0 .0 0 ^
4 0 0 ,0 0
1 0 8 ,2 0 0 .0 0
CALIFORNIA
BANK OF AMERICA NATIONAL TRUST
AND SAVINGS ASSOCIATION
Giannini, L. M,
CONSOLIDATED VULTEE AIRCRAFT CORP,
Laddon, I* M.
Woodhead, Harry
DOUGLAS AIRCRAFT COMPANY, INC,
Douglas, Donald W,
FAMOUS ARTISTS CORPORATION (FORMERLY
THE FELDMAN-BLUM CORPORATION)
Feldman* Charles Kenneth
HEARST PUBLICATIONS, INCORPORATED
Hearst, William Randolph
12/31/44
75,000.00
4,698.00
79,692*00
n/30/^5
8 5 ,0 0 0 .0 0
85,000.00
6.25
6.25
85,006,25
85,006.25
116,000.00
4 0 0 .0 0
116,400.00
11/30/U5
6/50/U5
105,166.50
105,166.50
1 0 0 ,0 0 0 .0 0
1 0 0 ,0 0 0 .0 0
12 /31/44
CO
CO
- AS- OF CORPO EAT ICFI
AIE) OFFICERS OE
EMPLOYEES
käme
CALENDAR OR
FISCAL YEAR
ENDED
----- ---- SALARY ' COMMISSION'
7
BONUS
■OTHER
COMPENSATION
TOTAL
,
CALIFORNIA (Cont.)
NORTH AMERICAN AVIATION, INC.
Atwood, J. L.
Kindelberger, J. H.
STANDARE OIL COMPANY OF CALIFORNIA
Collier, Henry D.
* Includes an annuity of $3 *629*6
the Company1s Annuity plan*
9/3O/U5
25O.QO
25O.OO
■7 5 *0 0 0 ,0 0
140 ,000.00
13/31 fkh
123 ,555.20
123 *555 .20*
monthly paid
75 ,250.00
1'
4 0 ,25O.OO
r. Collier by Insurance Companies, under
CONNECTICUT
THE ITOMELITE CORPORATION
Abbott» J. Allan
I2/3I/UU
5,500.00
78,2^0.36
,7 2 ,7^0 .3^
FLORIDA
GIBBS GAS ENGINE COMPANY OF FLORIDA
Gibbs, George W.u.
1 2 /3 1 /'^
35,000,00
50,000.00
85,000,00
ILLINOIS
CRONAME, INCORPORATED
Coolidge, E* 0*
EARPSR-WYMAN COMPANY
Harper, Philip S.
LADY' ESTHER, LTD.
Bu-siel, Alfred
Busiel, Syma
W. H, MINER, INC* „
Withal 1 , A. P*
12/31/^
25.000.
0089,971.63
11^,971.63
I2/31/UU
m M i M
12 /3 1 / ^
96.000.
9d »000.00
00
50.000.
00 lHd ,'26^.03
96,000.00
96,000.00
12/31/U^
19^,26^.03
00
NAME OE CORPORATION
AND OFFICERS OR
employees ____
CALENDAR OR
FISCAL YEAR
ENDED
ILLINOIS (Cont.)
j. P. SEEBURG COPRORATION
Seeburg, J* R*
Seeburg, N. Marshall
VICTOR MANUFACTURING AND
GASKET COMPANY
Victor, John H.
THE WANDER COMPANY
McMillan, James G*
9 /30/45
1 2 /31/44
12/31/44
KANSAS
THE CESSNA AIRCRAFT COMPANY
Wallace, Dwane L.
Wallace, ^wight S.
9 /30/45
MARYLAND
COMMERCIAL CREDIT COMPANY
Duncan, A» E*
CEOViK CORK & SEAL COMPANY, INC.
McManus. Chaules E.
12/31/44
12/31/44
- 50 -
HAMB'O F CORPORATION
AND OFFICERS OH EMPLOYEES
CALENDAR OR
FISC A L YEAR
ENDED
SALARY
COMMISSION
BONUS-
OTHER
COMPEN
SATION '
TOTAL
MASSACHUSETTS
THE KEYSTONE CORPORATION OF BOSTON
Rehm, T . A .
S h o lle y , S. L.
LEVER BROTHERS COMPANY
C oun tw ay, F r a n c is A .
L a n n e fe ld , W a lte r E .
Lu clonan, C h a r le s
MASSACHUSETTS INVESTORS TRUST
.G r i s w o l d , M e r r i l l
THOMPSON WIRE COMPANY
Thom pson, G e o rge M*
UNITED SHOE MACHINERY CORPORATION
W in slo w , S id n e y W ., J r *
U . S . BRANCH OF THE EMPLOYERS’
L IA B IL IT Y ASSURANCE CORPORATION, LTD*
S t o n e , Edward C*
12 31
/
/ b k
6,600*00
12,60O * 00
7 8 ,^8 2 .5 3
I95»5 3 9 .07
1 2 7 . s 2 3.78
^2,5^1.25
2 0 8 ,1 3 9 .0 7
6/30/U5
30,000.00
78« 33 9*88
1 0 0 ,0 0 0 .0 S
35i»751+. 51
3 8 1 ,75^*51
7 8 ,3 3 9 .8 8
1 0 0 ,0 0 0 .0 8
I2/3I/UU
8^,628.33
.■su.62s.33
12/31/U^
100,000.00
100,000.00
100,000.0s
1 0 0 ,0 0 0 .0 8
2 /2S/H5
1
2
h
l
/
k
k
8 1 ,0 0 0 .0 0
121,703.36
202,703.36
MICHIGAN
THE KAYDON ENGINEERING CORPORATION
F r a u e n t h a l, A* H*
CHRYSLER CORPORATION
H u tc h in s o n , B . E.
K e lle r , K. T.
Z e d e r , F r e d M.
i
z
j
y
i
ß
k
SU,000.00
8^-,000. 00
12/31/1&
90,000.00
100,000.00
85,000.00
850.00
950.00
500.00
90,850.00
100,950.00
8 5 ,5 0 0 .0 0
The am ounts shown above do n o t in c lu d e any p a r t o f th e paym ents b y C h r y s le r C o r p o r a tio n in
I 9W to E x e c u t iv e C h r y s le r Management T ru st*
OO
CO
»
- 51 -
CALENDAR OR
FISCA L YEAR
ENDED
NAME OF CORPORATION
Al'TD OFFICERS OR
TUv'TPT.OYFPS
SALARY
OTHER
COMPEN
SATION
BONUS
C O M ISS IO N
TOTAL
MICHIGAN ( C o n t .)
12 / 3 1 / ^
DETREX CORPORATION
Emmett* R o b e rt A .
NASH-KELVINATOR CORPORATION
Mason* G e o rg e W.
PALMER-BEE COMPANY
B e e , G e o rge A .
9 / 30 /U5
75 * 500,00
25 , 000.00
50 , 500.00
1 2 5 , 000.16
12 5 , 000.16
12 / 3 1 / w
MINNESOTA
90 , 2 3 3.0 1
♦ A
i
i
0
1 / 3 1 /U5
POWERS DRY GOODS COMPANY, IN C,
O ls o n , D o d r ic k
6U , 000.00
36 , 000.00
100 , 000.00
MISSOURI
12 / 3 1 / to
|
o
ANHEUSER-BUSCH, INCORPORATE!)
B u g e h , A d o lp h u s , I I I
THE MAY DEPARTMENT STORES
B run m ark, W. J .
D a u b y , Je ro m e
D a u b y , N ath an L .
G e l l e r * D a v id
G r i e s , L i n c o ln
M ay, M orton J *
M ay, Tem
R o s e n b e r g , Sam
S a lo m o n , F r e d Z . S t r a u s s , Leo n ard
1 / 3 1 /U5
1 t o , 000 .0 8
50 . 000 .
7 5 . 000 . 00
100 , 000.00
69 , 8 ^ 7 . ^+1
6 5 . 000 .
50 , 000 . 0 ^
10 , 000.00
lU ^ O O .O O
20 , 000.00
100 , 000.00
3 2 ,t o 3 .9 6
2 3 . 000 .
1 0 . 000 .
19 , 999.92
00
08
6 7 * 500.00
7 7 . 000 .
90 . 000 . 00
7 9 ,0 t o *21
00
25.00
00 100.00
200,00
00
75 .0 0
200.00
250.00
10 0 , 000 . 0 ^
85 ., 000.00
100 * 025.00
8 3 ,8 U 7 vU l
8 5 , 100.00
1 00*200.00
9 9 ,9 9 9 .9 ^
100 , 075-00
1 0 0 ,2 0 0 .0 8
99 , 2 9 3.13
V- -*
- 52 -
CALENDAR OR
FISC A L YEAR
ENDED
NAME OE CORPORATION
AND OFFICERS OR
EMPLOYEES
SALARY
COMMISSION
BONUS
OTHER
COMPENSATION
TOTAL
15.000.
15.000.
00
00
1^5,000.00
1^+3,000.00
NSW JER SEY
P . BALLAHTINE
SONS
. *
B a d en h a u se n , C a r l W,
B a d en h a u se n , O tto A*
*
THE SINGER MANUFACTURING COMPANY
S i r D o u g la s A le x a n d e r , B a r t*
&
3 / 3 I/ U 5
130,000-00
128,000*00
12/31
/ k ’
k
,
100, 000.00
100 000.00
NEW YORK
B* ALTMAN
COMPANY
Burke, Jo h n S .
AMERICAN SMELTING
REFINING COMPANY.
G u e s s , H . A*
ANACONDA COPPER MINING COMPANY '
H o b b in s , Ja m e s R*
K e l l e y , C o r n e liu s F .
ATLAS CORPORATION
Odium , F lo y d B*
BELL AIRCRAFT CORPORATION
B e l l , Law rence 33*
W hitm an, R ay P*
&
&
/
I / 3 I/ U 5
30,000.00
75,000.00
90.00
105,090-00
12/31/UU
76.ss7.50
76,687.50
so, 000. 00
90,000.00
8 0 ,0 0 0 .0 0
90,000.00
1 2 / 3 1 / b k
1 2 / j l / k k
100.000.
X 2 / 3 l / k k
. .
100 000
100,000.00
00
00
50.00
50.00
6.7»083*35
'
2^,696.71“*
2 3 ,517.01*
12^ ,7^6.71
9 0 ,6 5 0 .3 6
'
* I n c lu d e d i s th e c o n t r ib u t io n made by th e C o r p o r a tio n to a t r u s t fu n d w hich form s a p a r t
O f a p e n s io n p la n f o r th e b e n e f i t o f em ployees* The amount in c lu d e d f o r Law rence D* B e l l
i s $2 3 *3 9 6 *7 l and f o r Ray P . Whitman i s $22,117*01*
CD
- 53 NAME OE CORPORATION
AUE 0 ITICEH5 OE
EMPLOYEES
CALENDAR OR
EISCAL YEAR
ENDED
SALARY
COMMIS SION
BOBU S
OTHER
COMPEN
SATION
TOTAL
■ HEW YORK ( C o n t .)
SLUE BELL, INCORPORATED
E ö x , J . C.
BRISTOL-MYERS COMPAHY - DELAWARE
B r i s t o l , H, p .
B r is to l, l : H i
B r i s t o l , w . M ;, J r .
CENTRAL HANOVER BANK & TRUST COMPAHY
G r a y , W. S*', J r ,
'COLUMBIA BROADCASTING- SYSTEM, IN C.
K e s t e n , P a u l 1^.
THE CROWELL-COLLIER PUBLISHING- CO,
B e c k , Dhonas H®
THE DIAMOND MATCH COMPANY
F a i r "burn, W, A.
T. M. DUCKE
SONS, INCORPORATED
E a r q u h a r , R* V*
G r a e s s i e , W, E ,
THE ELINTKOTE COMPANY
H arvey, I . J . , J r ,
GIMBEL BROTHERS, IN C,
G im b e l, B e rn a rd E ,
W, R . GRACE & COMPANY
I g l e h a r t , D, S ,
THE HEARST CORPORATION
W in c h e lljW a lt e r
HUROK ATTRACTIONS, IN C,
A n d e rs o n , M arion
&
Xl/30/^5
101,666.6U
12/31/^
60,000.00
^9.999.92
^9 i9 9 9 .9 2
S9 ,5US. 92
7 9 ,5US0SU
7 9 »5US»SU
2 9 ,5U6 .9 2
' 2 9 ,5USo92
29.5^.92
1 2 /3 1 M
1 0 0 ,159* ^
100,159;UU
12/31M
85,529*76
12/.31M
7 5 *0 0 0 ,0 0
5,000.00
2U0.Q0
S0 ,2U0 .0 0
12/31/uu
100,000.00
100,000.00
11/30/U5
3,120.00
3,120.00
150,219.51
S2 ,1S2 .59
1 5 3 *339*51
750.00
90,150.00
79.062.S9
12/31/uu
75*000.00
lU,U0Q.00
1/31/^5
100,000.00
100,000;00
12/31/UU
Us,000.00
3^.3 8 3 -3 3
12/31/UU
6U,Uoo.oo
3U.sU1.19
8 2 ,3 8 3 .3 3
9 7 .2^1.19
12/31/UU
120,551.19
CO
r\>
FAME OP GOPPOSAT'IOU
AUD OPPICESS OR
EMPLOYEES
CALENDAR OR
FISCA L YEAR
ENDED
OTHER
SALARY
C O M ISS IO N
BONUS
COMPEN
SATION
TOTAL
NEW YORK ( C o n t ,)
JOHNS-MANYILLS CORPORATION
Brow n, Lew is E*
CARL MARKS & COMPANY » IN C .
M a rk s, Carl
2^
12/3l/*4*4
■
*
12/31/4*4
7 7 , 000.00
l4 ,0 0 0 .G G
12/31/44
8 3 .8 2 4 .8 5
8 8 .8 2 4 .8 5
1 2 3 ,8 5 4 .3 7
88 .8 2 4 .85
12/31/44
68 , 750.00
8 8 ,8 2 4 .8 5
83,82*4.85
123,85^*37
88,82*4,85
9 8 ,7 5 0 .0 0
30 , 000.00
12/31/44
8 5 , 000.00
8 5 , 500.00
200 , 000.00
89 , 000.00
20 3 , 5OO.OO
0
0
.
0
0
3/31/4*5
8 5 *000.00
in in
m m
0
0
.
0
0
l
1 7 5 , 000,00
9 1 , 000.00
1 7 5 *000.00
^ «Â.I56
MCCAMPBELL & COMPANY, INCORPORATED
H u g h e s, Jo h n Chambers
M ahn ion , P ra n k D .
M cC am p b ell, L e a v e lle
S to rm , Raymo nd H*
NESTLE5S MILK PRODUCTS, IN C .
N o r to n , D. P .
NEW YORK L I PE INSURANCE COMPANY
H a r r i s o n , C eo rg e L .
REMINGTON RAND, IN C .
Knapp, S t a n le y M.
R an d , Ja m e s H . ,’ J r .
RUTHRAUPP
RYAN, IN C,
Ryan, F r e d e r ic k B*
RUSSELL, BURDSALL & WARD BOLT
AND NUT COMPANY
W ard, E van s
98 , 500.00
12/31/44
100 , 000.00
100 , 000,00
6/ 30/45
22 , 500.00
100 , 963,01
12 3 , *463. 01
CO
CO
- 55
HAKE» OH CORPORATION
A ID OFFICERS OP.
EMPLOYEES
calendar or
RISCAL YEAR
ENDED
SALARY
COMMISSION
BONUS
OTHER
COMPEN
SATION
TOTAL
NEU YORE ( C o n t .)
SIN CLA IR O IL CORPORATION
S i n c l a i r , E . U*
S i n c l a i r , H* P*.
STANDARD O IL COMPANY (INC* I I
NEW JER SEY)
G a lla g h e r , R , W.
H a rd e n , O r v i l l e
H o lm a n , E ,
P r a t t , W, E»
THORER
HOLLEIDER, INC*
M a h le r , C u rt
T U B IZE RAYON CORPORATION
B a s s ill, J* E.
R . T . VANDERBILT COMPANY, IN C.
S o m e r v i l le , A . A.
V a n d e r b ilt, R. T.
YOUNG & RUBI CAM, IN C .
® ubicam , Raymond
12/31fbk
7^.999*97
155.200.00
12/31M
100,000.00
9 0 .0 0 0 .
91,136.36
7 5 .0 0 0 .
00
00
550.00
60O.OO
75.5^9-97
155,800.00
11,605.0^
3,^27.00
3.3^3*96
5,860.00
111,805.04
93.^27.00
9^,480.32
g o ,s6 o .o o
&
10 ,000.00
169 ,722.00
175.000.00
55.000.00
56,^86. i+9
6 0 ^ 8 6 .^ 9
7,500.00
82,500.00
199.782.00
230,000.00
12/31/^
72,500.16
20,000.00
100 ,0 0 0 .0 0
7,500.00
92,500.16
OHIO
THE ELECTRIC AUTO-LITE COMPANY
M a r t i n , R oyce G .
THE G L ID D E ! COMPANY
J o y c e , A d r ia n D .
12/31/^
10/31/^5
96,000.00
U00.00
107,900.00
300.00
96,300.00
CO
42a.
-
FAME OP CORPORATION
AND OFFICERS OR
EMPLOYEES
CALENDAR OR
FISCAL YEAR
ENDED ,
56 -
SALARY
COMISSION.
* OTHER
COKPENSATION
BONUS
TOTAL
OHIO (Cont.)
THE GOODYEAR TIRE & RUBBER COMPANY
Litchfield, P. V*
Thomas, E. J.
THE LEBLOND ENGINEERING COMPANY
LeBlond, Harold
THE LINCOLN ELECTRIC COMPANY
Lincoln, J, F*
THE NATIONAL ACME COMPANY
Cha"oin, F, H..
THE STANDARD OIL COMPANY (OHIO)
Holliday, V* T*
THOMPSON PRODUCTS, INC.
Crawford, F. C,
1 2 /3 1 M
12/31fkb
12/31/1+1+
12/31/UM12/31/1+4
12 / 31 M
100, 000.00
52,000.00
7,200.00
81,311.67
3S.000.00
75,000.00
33,097.00
27, 977.00
175,000.00
91,097.00
95, 777.00
81,312.67
80 , 000.00
120, 000.00
1.00
U2 . 000,. OQ
120, 000.00
90,999.96
550.00
91,549*96
650.00
600.00
76,1+50.00
76,1+00.00
11+9,760.00
97,71+2.00
221, 61+5.00
92,71+2.00
97,71+2.00
99.760.00
97,71+2.00
97,71+2.00
119Í760.00
119,760.00
PENNSYLVANIA
THE BALDWIN LOCOMOTIVE WORKS
Brinley, Charles E*
Kelly, Ralph
BETHLEHEM STEEL COMPANY (PENNSYLVANIA)
Bent, Quincy
Berkeley, Norborne
Grace, E. G.
Gross, J* M,
Holton, C. R.
Homer, A. 3 .
Jacobs, M. L.
Larkin, J. M.
McMath, R. E.
Shick, F,' A.
12/31/41+
12/31/44
60,000.00
60,000.00
90,000.00
50,000.00
150,000.00
1+5,000.00
50,000.00'
40, 000.00
50, 000.00
50,000.00
60,000.00
60,000.00
15,800.00
15, 800.00
59,760.00
H7.7H2.00
71.6H5.00
H7.7H2.00
H7.7H2.00
59.760.00
H7.7H2.00
H7.7H2.00
59,760.00
59.760.00
CD
- 31 01 XQIEORATION
CAL^NDAB. .OR
AI'R 05Tlic2R3 OR
?X$CAL..TEAR
SALARY
SiMPLOYEES
........................
"ERRED-______
. .
— ;
“•
COMMISSION
'
BONUS
other.
COMPSNTOTAL
SATI0I7 ___________
TEXAS
THE TEXAS COMPANY
Klein, Harry T*.
Rodgers, W,. S. S,.
12/31/ ^
100,000.00
100,000,00
125 *000*.00
125,000*00
VIEST VIRGINIA,
HAZEL-ATLAS GLASS) COMPANY
Brady, A lfred 5V
12 /31/^
76,226,07
76,226.07
0O0
CO
CO
U n ite d S t a t e s S a v in g s Bonds Is s u e d and Redeemed Through J u l y 3 1 , 1947
( D o lla r amounts i n m i ll io n s
- — .................................................-
'
S e rie s A -D :
" S e r ie s A -1935 (m atured) . .
S e r ie s B-1936 (m atured) « .
S e r ie s C -1937
S e r ie s C-1938
S e r ie s D-1939 # . » v . • • • • • • •
- rounded and w i l l n o t n e c e s s a r i l y add t o t o t a l s )
Amount O u t s t a n d in g 2 /
Amount
Redeemed l /
Amount
Is s u e d l /
$
$
246
435
375
153
209
225
86
9
28
211
509
\
P e rce n t Redeemed
o f Amount Is s u e d
9 6 .4 7 ^
9 3 .9 5
6 3 .8 8
2 3 .1 5
2 0 .4 3
1 8 .6 4
S e r ie s D —
194-1 • • • * » • • • • • , *
255
463
587
661
1 ,0 2 3
1 ,2 0 7
521
T o ta l S e r i e s A-D . • • • • • « . »
4 ,7 1 7
1 ,7 2 9
2 ,9 8 8
3 6 .6 5
322
S e r ie s E —
194-5 *■• *. * * » * • • • • *
S e r ie s E -194-6 « . « . . . •...«• • *
S e r ie s E -194-7 (7 m onths)*«
1 ,4 6 5
6 ,6 3 1
1 0 ,8 5 1
1 2 ,6 8 2
9 ,9 0 5
4 ,3 4 4
2 ,2 4 4
1 ,1 4 2
4 ,3 6 8
6 ,4 6 1
7 ,4 7 0
6 ,0 8 5
2 1 .9 8
3 4 .1 3
4 0 .4 6
4 1 .1 0
3 8 .5 7
2 4 .1 9
7 .0 0
T o ta l S e r i e s E • • •««,.,... * . »•*
4 6 ,1 2 3
T o ta l S e r ie s A -E . . . . . . . . *
5 2,6 4 0
S e rie s E :
S e r ie s E —194-1 »•».••*♦•••»*•
1
g
1
/
814
982
435
2 ,2 6 3
4 ,3 9 0
5 ,2 1 2
3 ,8 2 0
3,2 9 3
1 ,0 5 1
2 ,0 8 7
157
----------------------- -------------------1 7 ,2 1 6
1
3 0 ,9 0 6
1 6 .5 1
n
3 5 .7 7
1 8 ,9 4 6
3 3 ,8 9 4
35.8 6
1 2 .4 2
1 4 .2 2
1 4 .2 1
1 0 .5 4
7 .0 6
3 .0 1
i
S e rie s F and G :
S e r ie s F and G -1941 « . . . « . . .
S e r ie s F and G-1942
S e r ie s F and G-1943
S e r ie s F and G-1944 *••.*.••<.
S e r ie s F and G-1945 • . . .....
S e rie s F and G -1946 « ... *- * *
S e r ie s F and G—1947 (7
months)
. . . . . . . . . , * , . *,...
1 ,5 3 0
190
3 ,1 8 5
3 ,3 5 7
3 ,6 9 0
3 ,1 4 3
2 ,9 9 3
453
477
389
222
90
1 ,3 4 0
2 ,7 3 1
2 ,8 8 1
3 ,3 0 1
2 ,9 2 2
2 ,9 0 3
1 ,6 4 3
2
1 ,6 4 1
.1 2
T o ta l S e r i e s F and G ..........
1 9 ,5 4 1
1 ,8 2 2
1 7 ,7 1 9
9 .32
111
135
-2 4
7 2,4 9 2
2 0 ,9 0 3
5 1 ,5 3 9
U n c la s s ifie d s a le s and r e
demptions . . . . . . . . . . . . . . •
T o ta l A l l S e r i e s
1/
2/
H
U
i
j
•
2 8*8 3.
In c lu d e s a c c r u e d d isc o u n t#
C u rre n t red em p tio n v a lu e s *
, , _
____ +
In c lu d e s m atured bonds w hich have n o t been p r e s e n e
or P
-I-ith t o t a l s
In c lu d e s S e r i e s A and B (m a tu re d ), and t h e r e f o r e does n o t a g r e
under i n t e r e s t - b e a r i n g d e b t on P u b lic D e b t S ta te m e n t#
O ff ic e o f F i s c a l A s s i s t a n t S e c r e t a r y * T re a s u r y Departm ent#-
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS
Tuesday, August 19'» 19^7
Press Service
No, S-435
Secretary of the Treasury Snyder announced today the
lifting of Treasury Department restrictions on the payment and
collection of checks, drafts and other payment instruments which
have been within enemy or enemy-occupied territory prior to
September 2, 19^5.
He stated that the principal purpose underlying the restric
tions on the negotiation of such instruments was to protect the
interests of persons who had been forced by the enemy, through
coercion or duress, to transfer or issue such instruments. How
ever, since nearly two years have elapsed since the enemies'
surrender, it is believed that a sufficient time has now been
allowed for such persons or their representatives to take steps
for their own protection.
Today's action was effected by the revocation of General
Ruling No. 5A.
Paragraphs 2(b) and 2(c) of the Ruling are now
included in General License No. 88, as amended.
oOo
TREASURY DEPARTMENT
W ashington
.FOR RELEASE,
T h u rsd a y , A u g u st 2 1 , 1947
P re ss S e r v ic e
N o . S -4 3 6
S e c r e t a r y o f t h e T re a s u r y Sn yder to d a y made p u b lic a second group
o f t a b u la t io n s w h ich w i l l a p p e ar i n t h e r e p o r t " S t a t i s t i c s o f Income
f o r 1944, P a r t 1 ." T hese d a t a , c o m p risin g t h r e e t a b l e s f o r i n d i v i d u a l
income t a x r e t u r n s and one t a b l e f o r t a x a b le f i d u c i a r y incom e t a x
r e t u r n s , a r e p re p a re d under t h e d i r e c t i o n o f C om m issioner o f I n t e r n a l
Revenue G eorge J . Schoenem an.
I n d i v i d u a l incom e t a x r e tu r n s
T a b le 1 p r e s e n ts in fo r m a tio n from t a x a b le i n d i v i d u a l r e tu r n s
c l a s s i f i e d by ty p e o f t a x , t h a t i s , r e t u r n s w ith n orm al t a x and su r
t a x and r e tu r n s w it h a l t e r n a t i v e t a x p a id on c a p i t a l g a in s h e ld more
than s i x m o n ths.
The norm al t a x r a t e i s 3 p e r c e n t on th e norm al t a x n e t in co m e ,
and th e s u r t a x r a t e i s 20 p e r c e n t on s u r t a x n e t incom e n o t o v e r
$ 2 ,0 0 0 i n c r e a s i n g a t g r a d u a te d r a t e s t o 91 p e r c e n t on s u r t a x n e t i n
come o v e r $ 2 0 0 ,0 0 0 . H ow ever, th e t o t a l t a x computed w ith o u t r e g a r d
to t a x c r e d i t s can n o t e x ce e d 90 p e r c e n t o f th e n e t in co m e. The
norm al t a x and s u r t a x a r e l e v i e d on incom e in c l u d i n g th e n e t g a in o r
a llo w a b le l o s s from s a le s o f c a p i t a l a s s e t s u n le s s th e a l t e r n a t i v e
t a x r e l a t i n g to th e g a in i s im p o sed .
R e tu rn s w it h norm al t a x and s u r t a x in c lu d e r e t u r n s show ing an
a l t e r n a t i v e t a x , r e f e r r e d t o i n S t a t i s t i c s o f Incom e a s o p t i o n a l t a x ,
p a id i n l i e u o f norm al t a x and s u r t a x . The o p t i o n a l t a x i s p r o v id e d
i n supplem ent T o f t h e C o d e , i n t h e form o f a t a x t a b l e s t a t i n g th e
t a x l i a b i l i t y f o r v a r io u s a d ju s t e d g r o s s incom e b r a c k e t s , and may be
used a t th e e l e c t i o n o f th e ta x p a y e r whose a d ju s t e d g r o s s incom e
from w h atev er so u rc e i s l e s s th a n $ 5 ,0 0 0 . The t a x t h e r e in i s com puted
a t th e same r a t e s a s a r e used f o r com puting th e t a x i n d e t a i l ; and
th e r e a r e a llo w e d th e n o r m a l-ta x e x e m p tio n , th e s u r t a x exem p tion s f o r
th e number o f p e r so n s w ith r e s p e c t t o whom s u r t a x e xe m p tio n s may be
c la im e d , and t h e stan d ard d e d u c tio n w hich i s 10 p e r c e n t o f th e amount
o f th e m id p o in t o f e a c h a d ju s t e d g r o s s incom e b r a c k e t . T h is m id p o in t
i s a ls o th e b a s e f o r th e o p t io n a l t a x c o m p u ta tio n .
R e tu rn s w ith a l t e r n a t i v e t a x a r e th o s e show ing an e x c e s s o f n e t
lo n g -te r m c a p i t a l g a in o v e r n e t s h o r t-te r m c a p i t a l l o s s , on w h ich th e
a l t e r n a t i v e t a x l i a b i l i t y i s l e s s th a n th e r e g u la r norm al t a x and s u r t a x
l i a b i l i t y computed on n e t incom e w hich in c lu d e s th e n e t g a in from s a le s
o f c a p i t a l a s s e t s . T h is a l t e r n a t i v e t a x , n o t e f f e c t i v e on s u r t a x n e t
income under $ 1 6 ,0 0 0 , i s th e sum o f ( l ) a p a r t i a l t a x computed a t t h e
r e g u la r r a t e s on n e t incom e redu ced f o r t h i s p u rp ose by th e e x c e s s o f
th e n e t lo n g -te r m c a p i t a l g a in o v e r n e t s h o r t-te r m c a p i t a l l o s s , and
(2 ) 50 p e r c e n t o f su ch e x c e s s .
-
z
I t sh o u ld be n o te d t h a t th e e f f e c t i v e t a x r a t e i n t h i s t a b le i s
computed on th e b a s i s o f a d ju s t e d g r o s s incom e* and i s n o t com parable
w ith th e e f f e c t i v e t a x r a t e shown i n fo rm er y e a r s .
T a b le
shows th e fr e q u e n c y d i s t r i b u t i o n o f a l l i n d i v i d u a l r e
tu r n s f o r each s p e c i f i c so u rc e o f in co m e , f o r e a ch ty p e o f t a x pay
m en t, and f o r th e t a x o verp aym en t, th e amounts o f w hich were t a b u la t e d
i n p a r t 1 , t a b le 1 o f a p r e v io u s r e le a s e d a te d Ju n e 2 5 , 1 9 4 7 , P r e s s
S e r v ic e N o. S -3 6 6 . T hese fr e q u e n c ie s w i l l b e shown s e p a r a t e ly , i n
th e r e p o r t , f o r e ach o f two ty p e s o f r e t u r n s , th o s e w ith sta n d a rd de
d u c tio n and th o s e w ith ite m iz e d d e d u c t io n s ; a l s o , f o r r e t u r n s w ith
ite m iz e d d e d u c t io n s , th e fr e q u e n c y d i s t r i b u t i o n o f r e t u r n s w i l l be
shown f o r e ach ite m o f d e d u c tio n ; a n d , f o r r e tu r n s w ith t a x o verp ay
m en t, th e fre q u e n c y d i s t r i b u t i o n w i l l b e shown s e p a r a t e ly f o r r e t u r n s
w ith re fu n d s c la im e d and f o r r e t u r n s w ith a r e q u e s t f o r c r e d i t on 1945
e s tim a te d t a x .
Z
T a b le 3 shows b y S t a t e s th e t o t a l number o f r e t u r n s , and amounts
o f s a l a r i e s and w a g e s, d iv id e n d s and i n t e r e s t , a d ju s t e d g r o s s in co m e,
and t a x l i a b i l i t y f o r in d i v i d u a l r e t u r n s w ith a d ju s t e d g r o s s in co m e .
The s e g r e g a t io n o f r e tu r n s b y S t a t e s and T e r r i t o r i e s i s d ete rm in e d b y
th e l o c a t i o n o f th e c o l l e c t i o n d i s t r i c t i n w hich th e r e t u r n was f i l e d ,
e x c e p t t h a t f o r th e D i s t r i c t o f C o lu m b ia , th e s e g r e g a t io n i s determ in ed
b y th e a d d re ss o f th e t a x p a y e r . R e tu rn s f o r th e T e r r i t o r y o f A la s k a
a r e f i l e d i n W ash in gto n ; how ever, th e sa m p lin g te c h n iq u e employed f o r
1944 does n ot p e rm it s e p a r a te t a b u l a t io n o f such r e t u r n s .
The a g g r e g a te amounts i n t h i s t a b l e , b u t n o t th e t o t a l number o f
r e t u r n s , d i f f e r from c o r r e s p o n d in g amounts f o r i n d i v i d u a l r e t u r n s w ith
a d ju s t e d g ro ss income p r e se n te d e lse w h e re i n t h i s r e le a s e and i n th e
p r e v io u s r e l e a s e . The d i f f e r e n c e i s l e s s th a n one p e r c e n t i n th e ca se
o f s a l a r i e s and wages and o f a d ju s t e d g r o s s inco m e; a n d , i n th e c a s e
o f d iv id e n d s and i n t e r e s t and o f t a x l i a b i l i t y , th e d i f f e r e n c e i s
a p p ro x im a te ly 1 .2 p e r c e n t and 1 .1 p e r c e n t , r e s p e c t i v e l y . T h is d i f
fe r e n c e i s th e r e s u l t o f th e u s e , f o r e a ch o f th e v a r io u s sa m p lin g
s t r a t a , o f an o v e r - a l l n a t i o n a l e x t e n s io n 'r a t i o f o r t h e p u rp ose o f
a l l t a b le s e x c e p t th e S t a t e t a b le and a d i s t i n c t e x t e n s io n r a t i o f o r
each S t a t e f o r th e purpose o f th e S t a t e t a b l e o n ly . No d i f f e r e n c e
o c c u r s betw een th e t o t a l number o f r e t u r n s w it h a d ju s t e d g r o s s incom e
b y S t a t e s and th e co r r e s p o n d in g number o f r e tu r n s i n o th e r t a b le s in a s
much a s th e n a t i o n a l u n iv e r s e f o r each s tra tu m u se d i n d e r iv in g th e
o v e r - a l l n a t i o n a l e x te n s io n r a t i o e q u a ls th e t o t a l o f th e S t a t e u n iv e rse s
f o r t h a t s tr a tu m .
In fo r m a tio n r e g a r d in g r e tu r n s in c lu d e d i n s t a t i s t i c s , req u irem en ts
f o r f i l i n g r e t u r n s , ch an ges i n incom e t a x la w , a d ju s t e d g r o s s in co m e,
d e d u c t io n s , e x e m p tio n s, t a x l i a b i l i t y , t a x p ay m en ts, c l a s s i f i c a t i o n
o f r e t u r n s , and a d e s c r i p t io n o f th e sa m p lin g te c h n iq u e w i l l be found
i n th e p r e v io u s r e l e a s e .
T a x a b le f i d u c i a r y incom e t a x r e tu r n s
T h ere w ere 9 2 ,3 6 9 t a x a b le f i d u c i a r y incom e t a x r e t u r n s , Form 1 0 4 1 ,
f i l e d f o r t h e incom e y e a r 1944 ‘ show ing n e t incom e t a x a b le t o t h e f i
d u c ia r y o f $ 3 5 7 ,0 1 6 ,6 4 2 and t a x l i a b i l i t y o f $ 1 3 1 ,0 7 7 ,7 0 4 . A s compared
w ith l a s t y e a r , th e r e i s a d e c r e a s e i n number o f r e t u r n s o f 4 ,7 8 7 , o r
4 .9 p e r c e n t ; a d e c r e a s e i n n e t incom e o f $ 1 8 ,7 4 8 ,9 6 4 , o r 5 .0 p e r c e n t ;
and a d e c r e a s e i n t a x l i a b i l i t y o f $ 9 ,3 1 7 ,9 3 3 , o r 6 .6 p e r c e n t .
I n th e f o llo w i n g com p arison o f 1944 and 1943 d a ta fro m t a x a b le f i
d u c ia r y r e t u r n s , th e t o t a l incom e f o r 1943 i s t h a t f o r t a x a b le f i d u c i a r y
r e tu r n s t a b u la t e d f o r S t a t i s t i c s o f Incom e f o r 1 94 3 , a d ju s t e d b y sub
t r a c t i n g th e r e fr o m th e n e t l o s s from s a le s o f c a p i t a l a s s e t s , n e t l o s s
from s a le s 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 t s , and n e t l o s s e s from
b u s in e s s , from p a r t n e r s h i p s , and from r e n t s and r o y a l t i e s .
T a x a b le f i d u c i a r y r e t u r n s , 1944 and 1943:
Sum m ary-data
(Money f i g u r e s i n th o u san d s o f d o l l a r s ) ________________
;
:
s
D e c re a se
: 1944 :
1943
: Number o r :Pers
: _______________: amount
:c e n t
Nfiimhfvp of* pfihnrna............
T o ta l 1
- - - ...............
N et incom e t a x a b le to th e
f i d u c i a r y ..................... .........
Tax l i a b i l i t y ( b e fo r e c r e d i t s )
9 2 ,3 6 9
655^625
9 7,15 6
2/687^786
4 ,7 8 7
3 2 ,1 6 3 ,0 5 2
4 .9 3
4 .6 8
557,017
1 31,078
2 /375,766
140,396
1 8 ,7 4 8 ,9 6 4
9 ,3 1 7 ,9 3 3
4 .9 9
6 .6 4
For f o o t n o t e s , see p .
The r e t u r n s in c lu d e d i n t h i s r e p o r t a r e o n ly t h e t a x a b le r e t u r n s
f i l e d f o r e s t a t e s and t r u s t s . T hese r e t u r n s a r e f o r th e c a le n d a r y e a r
e n d in g December 3 1 , 1 9 4 4 , f o r o th e r f i s c a l y e a r s e n d in g w it h in th e p e r io d
J u l y 1944 th ro u g h Ju n e 1 9 4 5 , and f o r p a r t y e a r s w ith th e g r e a t e r p o r t io n
o f t h e a c c o u n t in g p e r io d i n 1944. A n e g l i g i b l e number o f t a x a b le r e tu r n s
f o r e s t a t e s and t r u s t s f i l e d im p r o p e r ly on Form 1040 a r e i n c l u d e d . T en ta
t i v e r e t u r n s a r e n o t in c lu d e d and amended r e t u r n s a r e u se d o n ly i f th e
o r i g i n a l r e t u r n s a r e e x c lu d e d . S t a t i s t i c a l d a ta a r e c o m p le te ly t a b u la t e d
from e a c h t a x a b le f i d u c i a r y r e t u r n , p r i o r to a u d it b y t h e Bureau o f
I n t e r n a l R ev en u e.
A f i d u c i a r y r e t u r n , Form 1 0 4 1 , i s r e q u ir e d f o r an e s t a t e i f th e g r o s s
income i s $500 o r m ore; f o r a t r u s t i f th e n e t incom e i s $100 o r more o r
th e g r o s s incom e i s $500 o r more r e g a r d le s s o f th e n e t in co m e; and f o r
e v e ry e s t a t e o r t r u s t o f w hich a n y b e n e f i c i a r y i s a n o n r e s id e n t a l i e n . The
r a t e s o f t a x , th e p r o v is io n s r e s p e c t in g g r o s s incom e to be r e p o r t e d , th e
d e d u c tio n s w ith c e r t a i n e x c e p t io n s , and th e t a x c r e d i t s p r o v id e d f o r i n
d i v i d u a ls a p p ly a l s o to e s t a t e s and t r u s t s . D e d u ctio n s f o r c o n t r ib u t io n s
w ith o u t l i m i t a t i o n , and f o r am ounts d i s t r i b u t a b l e to b e n e f i c i a r i e s a r e
a llo w a b le i n com puting th e n e t incom e on w h ich th e f i d u c i a r y i s to b e t a x e d .
A c r e d i t o f $500 a g a i n s t th e n e t incom e o f a n e s t a t e and $100 a g a i n s t th e
- 4 -
n e t income o f a t r u s t i s a llo w e d f o r th e purpose o f com puting b o th th e
norm al t a x and th e su rtax « Tax l i a b i l i t y o f th e f i d u c i a r y * n o t b e in g
s u b je c t to c u r r e n t c o l l e c t i o n * i s due a t th e tim e th e r e t u r n i s f i l e d *
a f t e r t h e c lo s e o f t h e incom e year#
T o t a l in co m e, t a b u la t e d f o r t a x a b le f i d u c i a r y r e t u r n s f o r 1944*
i s th e sum o f d iv id e n d s and i n t e r e s t * th e n e t p r o f i t s from r e n t s and
r o y a l t i e s * from tr a d e o r b u s in e s s * fro m p a r tn e r s h ip * from s a l e s o f
c a p i t a l a s s e t s o r o f o th e r p r o p e r t y , t o g e t h e r w ith incom e from o th e r
f i d u c i a r i e s arid m is c e lla n e o u s incom e* m inus t h e n e t l o s s e s fro m r e n t s
and r o y a l t i e s , from tr a d e o r b u s in e s s * from p a r tn e r s h ip * and from
s a le s o f c a p i t a l a s s e t s o r o f o th e r p ro p e rty « T h is t o t a l incom e i s
c o n c e p t u a lly com parable w ith th e a d ju s t e d g r o s s incom e t a b u la t e d f o r
th e i n d i v i d u a l r e t u r n s f o r 1944* b u t i s n o t com p arable w it h th e t o t a l
incom e t a b u la t e d f o r t a x a b le f i d u c i a r y r e tu r n s i n fo rm er y e a r s when
lo s s e s r e p o r te d under income were t r a n s fe r r e d to d e d u ctio n s«
D a ta f o r so u rce s o f incom e* t o t a l in co m e , d e d u c tio n s * e xe m p tio n ,
and t a x a r e p r e se n te d i n t a b le 4« I n t h i s t a b l e , n e t p r o f i t s and n e t
l o s s e s r e p o r te d under incom e a r e t a b u la t e d i n ju x t a p o s it io n « When th ese
p o s i t i v e and n e g a tiv e amounts a r e com bined w ith th e o th e r ite m s o f i n
come* th e r e s u l t i s t o t a l in co m e. R e tu rn s i n t h i s t a b le a re c l a s s i f i e d
b y t o t a l income c l a s s e s b a se d on th e amount o f t a b u la t e d t o t a l in co m e.
The t o t a l incom e c l a s s i f i c a t i o n i s p r e s e n te d so t h a t d a ta from t a x a b le
f i d u c i a r y r e tu r n s may be com bined* i f d e s ir e d * w it h d a ta fro m in d iv id u a l
r e tu r n s « I n th e p u b lis h e d r e p o r t* d i s t r i b u t i o n o f d a ta i n t a b le 4 w i l l
b e shown a l s o b y n e t incom e c l a s s e s . No co m p o site d a ta f o r t a x a b le
f i d u c i a r y r e tu r n s and i n d i v i d u a l r e t u r n s w i l l b e shown f o r 1944 o r
su b seq u en t years#
Tabla 1. - Taxable individual returns for 1944, by adjusted gross ineoae classes and by type of taxi Nusber of returns, adjusted gross income, surtax exception,
tax liability before and after credits, tax credits, average tax, and effective tax rate
Adjusted gross ineoae
classes
___________
Total
nuaber of
taxable
returns
(Adjusted gross 1neons classes and aonev figures, except average tax, in thousands of dollars')
_______________________Taxable returns___________________________________ Returns with normal tax and si
Adjusted
Amount a t
Total
Number
Credits
Total
Average
Effective
Amount of Normal tax Credits
Normal tax
Adjusted
gross
surtax
tax
for
tax
tax 6/
tax rate
gross
and surtax for
of
surtax
and surtax
exonj>ineoae 4/
before
foreign
after
income 4/
(percent)
returns
before
after
foreign
tion 5/
eredita
tax paid
credits
based on
tion 5/
credits
tax paid’ credits
and tax
and tax
adjusted
paid at
groaa
paid at
source
ineoae
source
Taxable individual returns«
0,5 under 0.7S
2,045,206
1,387,580
0.75 under 1
2,950,919
2,586,289
1 under 1.25
8,477,486
8,921,519
4
1.25 under 1.5
8,512,445
4,825,898
1.5 under 1.75
8,459,860
5,614,142
1.75 under 2
3,403,802
6,874,683
7
2 under 2.25
3,130,449
6,643,168
2.25 under 2.5
2,870,005
6,811,467
9
2.5 under 2.75
2,786,617
7,807,911
2.75 under 8
10
2,514,455
7,222,747
8 under 3.5
11
4,188,166
18,878,818
S.S under 4
2,785,527
10,894,197
4 under 4.5
1,777,741
7,516,504
14
4.5 under 6
1,089,286
4,915,701
5 under 6
IS
988,071
5,057,083
16
6 under 7
•
417,756
2,698,021
17
7 under 8
220,512
1,645,762
8 under 9
18
151,108
1,279,043
9 under 10
19
111,991
1,060,155
20
10 under 11
88,911
931,857
11 under 12
67,593
775,780
12 under 18
57,875
715,970
28
IS under 14
46,086
620,510
24
14 undo* 15
88,568
558,495
15 under 20
2S
129,466
2,224,022
26
20 under 25
67,587
1,504, S U
25 under 80
27
88,485
1,049,789
28
80 under 40
41,610
1,480,927
29
40 under 50
20,422
907,988
80
SO under 60
11,844
645,768
60 under 70
81
7,258
468,959
70 under 80
4,668
848,712
82
80 under 90
8,068
259,874
84
90 under 100
202,711
2,185
100 under 150
SS
4,878
584,702
86
150 under 200
267,591
1,565
87
200 under 250
146,936
665
88
250 under 800
851
95,709
89
800 under 400
518
108,299
40
400 under 500
155
68,726
41
500 under 750
95,268
159
42
750 under 1,000
62
58,754
1,000 under 1,500
48
86
46,868
44
1,500 under 2,000
12
21,226
46
2,000 under 8,000
6
14,108
46
8,000 under 4,000
2
6,866
47
4,000 under 5,000
8
13,829
48
5,000 and over
__________ L. ______7-719
1
2
s
5
6
8
12
IS
21
22
88
Total taxable Individual
rotarne______________
For footnotes, see p. 11
42,854,468
114,761,885
1,645,474
2,689,601
8,824,746
8,537,841
8,687,396
8,832,444
8,741,190
3,722,221
5,780,315
8,565,983
6,099,517
4,277,725
2,763,607
1,591,894
1,893,377
591,101
293,682
196,S U
142,894
115,781
8S,924
72,269
57,676
47,994
161,466
82,581
46,888
48,759
25,556
18,265
7,910
5,086
5,219
2,228
4,904
1,495
625
528
296
144
148
50
86
15
4
5
5
1
28,788
U7,595
282,125
852,828
457,908
568,291
620,075
644,492
719,189
736,178
1,452,657
1,209,658
955,074
671,169
758,825
452,712
806,525
255,407
224,578
206,984
181,073
174,428
157,849
147,581
648,182
505,865
894,638
598,518
420,418
821,167
245,479
191,597
147,470
U8,550
861,128
174,840
96,U 2
65,650
75,477
48,825
66,604
87,668
31,861
15,215
10,159
4,918
9,610
4.801
10
7
10
5
17
52
62
78
95
83
84
64
55
49
86
67
70
66
46
185
105
80
86
51
663
892
210
466
627
697
187
374
481
806
676
295
150
157
164
125
157
327
185
55
118
76
100
28,773
U7,588
282,116
852,824
457,886
568,240
620,010
644,419
719,094
736,140
1,452,575
1,209,589
955,019
671,120
758,737
452,645
306,455
255,841
224,838
206,799
180,968
174,843
157,262
147,550
647,519
505,478
594,428
598,052
419,786
820,470
245,292
191,025
146,989
U8,224
860,446
174,045
97,968
65,498
78,318
48,200
66,467
57,556
81,678
15,178
10,046
4,843
9>5U
4.801
*14
40
67
100
152
167
198
225
258
295
851
484
557
646
815
1,084
1,890
1,690
2,008
2,826
2,677
5,089
8,416
8,826
5,001
7,484
10,262
14,878
20,556
27,058
53,819
40,922
47,989
55,874
73,968
U1,2U
147,313
186,591
230,548
510;971
418,034
602,197
853,644
1,264,832
1,674,350
2,421,665
5,170,175
4.801.886
2.15
4.55
5.92
7.51
8.16
8.91
9.38
9.46
9.84
10.19
10.86
11,64
12.71
18.65
15.00
16.81
18.62
19.96
21.16
22.20
23.33
24.35
25.34
26.42
29.U
53.60
37.57
41.79
46.28
49.68
52.81
.54.78
56.56
58.82
61.65
65.04
66.67
68.48
67.69
70.15
69.77
69.46
67.60
71.51
71.21
76.08
71.55
62.20
2,045,206
2,950,919
5,477,486
8,512,445
3,459,860
3,408,802
8,180,449
2,870,005
2,786,617
2,514,455
4,188,166
2,785,527
l,777j741
1,039,236
955,071
417,756
220,512
151,108
Ul , 991
88,911
67,595
57,875
46,036
38,563
125,812
57,629
30,587
51,174
14,459
8,016
4,685
2,974
1,900
1,294
2,685
888
822
174
141
62
67
51
18
4
2
1
1
1
1,837,580
2,586,289
8,921,519
4,825,895
5,614,142
6,874,683
6,648,168
6,8U,467
7,307,9U
7,222,747
15,878,818
10,594,197
7,516,504
4,915,701
5,057,085
2,695,021
1,645,762
1,279,048
1,060,155
981,857
775,780
715,970
620,510
558,495
2,155,208
1,280,945
829,288
1,070,401
641,216
486,708
802,928
222,097
161,778
122,998
820,184
141,875
71,074
47,525
47,591
27,276
89,961
26,408
22,409
7,567
4,799
8,019
4,088
■ 7.719
1.645.474
2,689,601
8,324,746
8,587,341
3,687,896
8,832,444
8,741,190
5,722,221
8,780,515
8,565,985
6,099,517
4,277,725
2,765,607
1,591,894
1,893,377
591,101
293,682
196,S U
142,894
U S , 781
85,924
72,269
57,676
47,994
158,295
71,866
57,655
87,526
17,169
9,286
5,281
8,880
2,108
1,409
2,748
814
810
167
188
59
67
26
16
S
1
1
1
1
28,788
U7,59S
282,125
852,828
457,905
568,291
620,073
644,492
719,189
736,178
1,452,657
1,209,655
955,074
671,169
758,823
452,712
806,525
255,407
224,578
206,984
181,073
174,423
157,349
147,581
625,030
428,809
312,508
450,882
800,476
221,160
161,908
125,089
94,46*
74,174
205,608
97,882
50,491
34,687
55,714
21,181
81,693
20,720
16,672
6,528
4,084
2,580
8,869
4.800.
51,606,896
18,224,728
8,827
16,216,401
888
14.18
42,802,475
112,182,487
51,552,721
14,961,864
—
10
7
10
5
17
52
62
73
93
85
84
64
55
49
86
67
70
66
46
185
105
80
86
81
554
142
68
549
855
543
46
528
188
244
825
201
77
88
112
55
U6
318
189
25
Average
tax ¡¡/
Effective
tax rate
(percent)
based on
adjusted
gross
28,773
U7,588
232,116
. 852,824
457,888
568,240
620,010
644,419
719,094
786,140
1,452,578
1,209,589
956,019
671,120
758,737
452,645
806,455
255,841
224,888
206,799
180,968
174,548
157,262
147,550
624,476
428,667
812,489
450,488
500,141
220,617
161,862
124,761
94,828
78,980
206,278
97,680
50,415
34,604
85,602
21,126
81,577
20,402
16,584
6,298
4,084
2,560
8,869
4.803.
*14
40
67
100
182
167
198
225
258
298
851
454
557
646
818
1,084
1,890
1,690
2,008
2,826
2,677
8,059
5,416
8,826
4,964
7,488
10j282
14,451
20,787
27,522
84,564
41,950
49,647
57,188
76,454
117,208
156,567
198',875
252,495
840,788
471,294
658,182
918,550
1,574,454
2,041)926
2,559,568
8)869)478
4.801.556
2.15
4.SS
5.92
7.81
8.16
8.91
9.88
9.46
9.84
10.19
10.86
11.64
12.71
18.65
15.00
16.81
18.62
19.96
21.16
22.20
28.88
24.85
25.84
26.42
28.98
88.46
87.68
42.09
46.81
50.52
58.48
56.17
58.81
60.11
64.11
68.81
70.98
72.81
74.81
77.45
79.02
77.26
75.78
85.48
85.10
84.79
88.45
62.20
5,558 14,955,806
854
18.88
_
21
Table 1. - Taxable individual returns for 1944, by adjusted gross Incone classes and by type of tax* Number of returns, adjusted gross income, surtax exemption,
tax liability before and after credits, tax crédita, average tax, and effective tax rate « Continued
(Adjusted gross income classes and money figures, except average tax, in thousands of dollars)
Adjusted gross income
classes 5/
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
Taxable individual returns:
Under 15
15 under 20
20 tinder 25
25 under 5050 under 40
40 under 50
50 under 60
60 under 70
70 under 80
80 under 90
90 under 100
100 under 150
*
150 under 200
200 under 250
250 under 500
500 under 400
400 under 500
500 under 750
750 under 1,000
1,000 under 1,500
1,500 under 2,000
2,000 under 5,000
5,000 under 4,000
4.000 under 5,000
5.000 and over
Total taxable individual
re^tyrqs
fbr footnotes, see pp.
Adjusted
gross
income 4/
Net
income
1
2
•
68,814
225,566
220,551
560,526
266,772
209,056
166,056
126,615
98,101
79,715
264,518
125,715
75.862
48,185
60,708
4L,451
55,505
27,547
24,454
15,859
9,509
5,547
9,291
• am
65,460
207,257
202,764
550,600
245,895
190,191
150,426
114,255
88,462
72,559
256,855
111,065
67,079
41,977
52,292
57,148
48,699
24,008
21,519
12,185
8,529
2,598
6,928
51,995
2,578,897
2,556,529
Number
of
returns
11
. eft
5,654
9,908
8,048
10,456
5,985
5,828
2,570
1,694
1,165
841
2,188
752
545
177
177
95
se
51
20
8
4
Excess of
net long»
tern ospitai
gain over
net short»
term capital
loss
Returns with alternative tax 8/
Alternative tax before
Amount
credits
of
Partial 50 percent
surtax
of excess
exemp
tax
capital
tion §/
gain
—
m
4,558
17,465
19,585
57,286
29,499
25,552
20,084
15,819
12,645
15,080
41,149
25,020
17,092
9,576
16,592
12,682
19,882
11,550
10,287
5,280
5,658
5,171
10,665
8,728
11,255
6,587
5,979
2,629
1,756
495
568,554
6
•
2,169
8,752
9,791
18,645
14,749
4
20,985
68,524
72,559
129,045
105,188
87,541
75,550
58,599
46,682
57,816
154,946
65,998
59,075
26,225
29,467
20,804
24,970
11,178
10,046
6,250
4,256
2,555
5,994
54,176
1,079,187
184,177
1,111
814
2,156
682
515
161
158
85
86
24
20
10
5
2
12,666
10,042
7,910
6,521
6,540
20,574
12,510
8,546
4,788
8,296
6,541
9,941
5,765
5,144
2,640
1,819
5
247
Alternative
tax
after
credits
—
109
250
141
117
292
154
141
46
545
62
552
95
75
124
52
70
•
25,045
76,806
81,989
147,569
119,645
99,855
85,450
66,262
52,661
44,294
155,168
76,414
47,548
50,889
57,711
27,075
54,891
16,954
15,145
8,880
5,962
2,284
6,141
•
16,506
7,752
10,187
14,140
19,997
26,085
52,465
59,116
45,280
52,669
70,918
104,591
158,625
174,515
215,056
291,126
579,247
546,261
757,247
1,110,051
1,490,561
2,285,766
5,070,526
•
55.49
54.59
57.17
40.95
44.85
47.76
50.25
52.55
55.68
55.57
S8.66
60.78
62.68
64.11
62.12
65.52
65.09
61.92
61.95
64.08
64.05
68.25
66.09
1,260,595
24,245
48.88
21
9
44
9
115
54
100
2,769
Average
tax 3/
Effective
tax rate
(percent)
based on
adjusted
gross
income
Credits
for
foreign
tax paid
and tax
paid at
souree
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
Tabl# 8. - Individual ratania for 1944, by taxable and nontaxable returns and b y adjusted gross income classes. Frequency distribution of returns for each specific
source of income and deduction, for each type of tax payment, and fcop tax overpayment
Adjusted gross income
classes J j
(Thousands of dollars)
1
e
8
4
S
6
7
8
9
10
U
18
IS
U
16
lfi
17
18
19
80
81
88
88
84
85
86
87
88
89
80
81
88
88
84
85
86
47
88
89
40
41
48
48
44
45
46
47
48
49
50
51
58
58
54
55
Taxable individual returns.
0.5 under 0.75
0.75 under 1
I under 1.85
1.85 under 1.5
1.5 under 1.75
1.75 under 8
8 under 8.85
8.85 under 2.5
8.5 under 8.75
8.75 under 8
8 under 8.5
8.5 under 4
4 under 4.5
4.5 under 5
5 under 6
6 under 7
7 under 8
8 under 9
9 under 10
10 under 1 1
I I under 18
18 under 15
18 under 14
14 under 15
15 under 80
80 under 8S
85 under 80
SO under 40
40 under 50
50 under 60
60 under 70
70 under 80
80 under 90
90 Under 100
100 under 150
150 under 800
800 under 850
860 under 800
800 under 400
400 under 500
500 under 760
750 under 1,000
1.000 under 1,500
1,500 xxider 8,000
8.000 under 5,000
8.000 under 4,000
4.000 under 5,000
5.000 and over
Total
number
of
returns
Salaries Dividends Annui
ties
and/or
and
interest and
wages
pensions
2,045,806
8,950,919
5,477,486
8,518,445
8,459,860
8,403,808
8,180,449
8,870,005
8,786,617
8,514,455
4,188,166
8,785,587
1,777,741
1,089,886
988,071
417,756
880,518
151,106
111,991
88,911
67,598
57,875
46,056
88,563
189,466
67,587
88,485
41,610
80,488
11,844
7,858
4,668
8,065
8,185
4,878
1,665
665
851
SIS
155
159
68
88
18
6
1,674,418
8,458,869
8,967,794
8,077,016
5,074,181
5,053,858
8,851,586
8,683,166
8,581,449
8,334,931
3,850,155
8,594,684
1,688,876
917,978
761,605
891,581
186,884
85,818
68,096
48,256
85,168
80,465
85,764
19,596
66,670
85,090
19,550
81,008
10,447
6,040
5,745
8,400
1,587
1,095
8,541
816
550
170
188
91
94
40
84
6
56
Total nontaxable
individual returns
57
Qrand total
Individual returns with ad
justed gross incoi» under
55.000
Individual returns with ad
justed gross incoi» of
For footnote, see p. 11
185,179 18,954
li,808
185,135
814.483 81,645
880,547 16,411
886,697 17,676
839,708 15,784
234.484 18,888
841,809 14,168
846,578 11,938
833,049 11/9.622
483,585 14,018
336,788 13,849
869,068 H/9,177
808,846 22/6,878
879,883 U/9,874
175,716 Jl/5,808
5,854
105,888
8,311
76,764
1,686
60,166
1,447
49,4£9
1,188
89,585
1,118
84,809
961
28,644
775
84,415
8,654
84,498
1,684
47,401
1,079
27,945
1,887
81,435
679
15,968
458
9,456
518
5,978
80S
8,879
155
8,609
104
1,806
866
4,198
1,368
600
884
895
140
149
61
57
18
8
8
4,767,087
3,573,398
40^ 6^
10,Ì8S
9,855
89,647
17,888
9,574
10.614
5,838
3,112
8,005
1,885
854
' 602
1,437
486
818
98
125
56
61
81
11,554
18,859
86,998
83,171
34,770
40,757
45,709
47,962
46,884
41,968
78,668
60,477
85,661
88,584
86,608
18,418
7,648
5,891
4.798
5,599
2,958
8,405
8,081
1.799
5,658
3,718
8,185
8,546
1,821
848
504
569
888
169
855
159
65
44
81
11
89
18,487
888,531
409,550 80,139
457,916 83,507
483,077 20,951
391,199 83,025
373,080 86,071
85,043
306,514
81,949
881,867
81,789
846,178
80,518
813,893
527,876 89,194
888,895 19,869
168,316 12,318
181,967 22/8,088
158,456 10,571
97,889 22/6,085
4,068
66,005
8,885
48,888
8.846
88,107
1.846
89,004
1,708
88,041
1,408
18,674
1,849
15,588
956
12,876
8,990
87,336
8,500
19,768
1,596
10,848
1,946
10,406
1,189
4,631
771
8,470
516
1,499
570
924
851
604
186
«24
498
900
179
315
84
126
54
57
47
59
88
86
51
15
18
8
4
2.991.218
.532.745
86,964
191,905
8,860,590 8,697,585
588,060
851,688
126,414
280,858
88,684
187,609
96,744
144,832
168,155
163,994
181,761
184,711
184,984
194,988
195,669
185,618
384,038
230,302
167,270
118,014
188,136
74,974
48,480
38,898
84.613
19,855
15,958
18,877
Partnership
8
8
1
1
Total taxable individ
ual returns
Nontaxable individual
returns 9/
No adjusted gross incoitelo/
Under 0.5
0.5 under 0.75
0.75 under 1
1 under 1.25
1.85 and over
Sales or exchanges Incoa«
Sales or exchanges of property other from
estates
of capital assets than capital
and
trusts
Met
Met
let loss
Ret loss
Met gain Met loss Met gain Met loss Met gain Met loss
Business or
profession
Rents and
royalties
84,533 ¿1/1,569
104,899 12/7,688
85,099
38,553 22/4,008
18,881 11/8,528
22/8.585
889,858
87,704
4.822.005
858.658
37,483
1
1
£2
2*047£821^659
531.495 1.062.962
(12) 11/9,453
17,155 12/8,886 (2/2,100.
89,885 13,508 1/3,609 22/2,561 18,456
55,681 16,641 2/3.840 22/2,811 ísleoi
36,198 15,151 2/3,492 22/8,661 11,871
ISj085
36,980 17,095 2/3,954 11/4.305
46,788 18,506 1/4,191 22/4,074 12,570
10,087
46,376
17,591 1/4,985 22/8,594
12,548
50,400 18,000 2/6.155 11/4,065
46,708 15,995 1/4,762 21/4,057 22/9,041
16,461- 1/5.912 22/2,434 11,884
40,687
80'681
89,486 1/8.575 12/5.445
83,992
15¡670
68,855 23,912 I A .7 7 7 22/4,068
56,105 18,469 (2/4,879 22/2,555 14,888
12,098
47,458 17,557 1/4.535 22/2,441
19'168
88,557 U/5.809 11/2,459
67,579
46,076 19,751 1/2.786 22/*,801 15,346
8',712
1,388
1,885
11,904
30,588
6,454
1,841
1,697
9,594
83,585
5,554
12/848
1,200
8,055
18,816
5,007
769
851
6,735
16,849
<098
ÇB5
808
5,670
18,457
5,645
548
621
5,095
11,558
sjzoi
509
4,151 ¿O/*0»
10^411
8,677
22/450
4,018
12/470
8,928
9,565
1,413
1,355
30,448 12,000
51675
917
657
9,224
18,505
5,885
558
887
5,408
11,307
4,785
680
389
6,870
15,505
81627
558
195
5,430
7,889
1,651
859
99
2,111
4,468
1,064
145
63
1,353
8,979
781
105
40
1,917
949
505
84
89
605
1,509
591
61
15
454
989
997
1544
39
1,056
8,531
5
575
17
55
354
758
186
855
5
165
354
95
16B
6
81
187
95
6
111
75
181
57
8
155
58
98
7
56
3
58
99
2
83
•
83
58
1
17
17
80
5
3
8
1
8
4
1
1
8
*
*
614,891 1,406,481
159,667
1,505,938
8,850,011 276,055 1,801,588 1,718,148
543,654 1,664,588 1,774,056
2,767,584
8,937,050 547,085 1,898,541 1,588,54«
8,945,380 574,365 1,958,158 1,499,891
8,955,998 405,066 1,976,551 1,596,980
409,775 1,788,597 1,517,486
8,779,895
400,195 1,595,758 1,846,048
8,559,857
8,535,461 398,393 1,546,858 1,816,817
385,705 1,583,655 1,107,108
8,304,583
8,797,977 718,098 8,854,514 1,858,910
628,754 1,498,850 1,869,910
8,564,606
793,468
971,669
544,066
1,599,551
457,888
594,190
594,510
899,994
548,455
583,147
587,461
740,915
154,085
279,716
306,540
877,575
55,109
168,997
124,578 176,780
55,859
113,502
78,408 188,748
86,866
84,870
97,531
55,408
81,057
66,856
79,445
43,506
15,965
50,788
61,819
51,006
13,65«
45,088
53,114
87,451
11,184
54,851
«8,905
81,149
8,951
89,884
56,839
17,861
51,800
96,818
185,885
59,574
15,439
51,458
65,573
50,818
9,581
88,607
57,654
17,848
10,567
50,917
40,868
18,559
5,885
15,004
80,186
9,084
2,976
8,780
1 1 ,6 6 6
5,198
1,815
5,591
7,164
5,816
1,156
5,50«
4,606
8,038
787
8,855
5,055
1,369
548
1,579
8,115
918
1,585
3,531
4,884
8,095
406
1,158
1,580
663
167
664
495
885
96
855
549
127
91
880
515
148
48
1 12
76
155
40
118
158
75
IS
47
58
88
10
88
38
15
8
4
8
12
6
4
8
6
4
8
1
4,
me
8
1
mm
5
5
1
1 _______ 2
75,858
105,854
125,555
189,688
1551186
140,846
136,477
128,075
188,461
113,368
808,651
150,304
96,818
66,504
55,800
88,599
15,474
8,819
7,178
5,988
4,549
5,885
3,41.2
8,744
9,483
5,698
5,377
3,846
8,118
1,196
835
548
587
844
665
857
109
57
64
56
43
18
,554784
81,887
5 22/1,369 22/*,550
7 22/4,108 115,487 8,601,880
499,859
58,500
12/4,588
104,196
1 1 /8,001
10,074
( 12)
66,958
11/6,519
(1 2 )
( 12)
11/7.066
39.753
( 12) _■ 22/2x650
22/1,791 W
311,837
57,809
44,985
8,320
6
16,116
15,499
174,116
5,533,851
30,189
59,596
56,753
18,587
13,797
18.573
176,979
-
-
46,854
8,654,933
533,035
180,806
79,050
55.834
3,488,712
48,769
18,548
5g9i2JO j-¿05í 75J.
74.526
590,658 4,997,549 498,194
715,919
58,266
697,857
291,558
77,075
36 195,84C 1,905,65! 57,756,085 5,950,27* 80,908,964 82,113,515
47,816
389,812
16,060
543,444
141,096
19,595
94 104,547
46,981
773,368 807,917
¿,¿¡95^087
454,804
|c▼erpayasnt
(refund, or
0redit on
1 £45 tax)
4 282.888 1.868.060 35.971.250 7.587.488 22.606.886 19.571.143
18,118 22/8,106
11,488
18,888
14,819 22/8,486 150,781 22/8,846
20,961
17,877 22/8,488
82,117
81,169 22/5,476
480,826 36,830
184,067 18,115
22
/ 6,215
10,538
22/1,864
190,840
10,955 22/9,058
88,364 22/8.656
22/4,950 22/5,571 11/1,864
79,807 22/5,866 22/3,570 (12)
58,887 22/8,008
( 12)
22A.896
11/4,215
(18)
22/8,588
44,768 11/8,425
88,960 22/1,896
02)
*11/4.014
44,643,941 39,849,688 3,709,150 881,815 8,847,645
8,467,554 1,666,378 1,118,853
22A.167
86,874
36,436 22/8,812
46,548 JA,««»
44,927 2/8.910
44,307 2/8,558
48,767 22/5,492
51.941 22/ 8,666
58,839 22/5,484
48,651 1/8,898
47,180 2/8,087
76,809 2/5,818
61,174 22/5,850
55,435 22/6,065
39,764 22/8,093
60,756 22/5,868
49,558 22A.593
1,306
36,675
1,070
89,850
1,068
85,406
800
80,047
598
16.941
537
14,306
18,187 22/478
10,976 22/648
1,475
38,585
968
83,078
547
15,615
693
15,947
406
8,390
866
5,039
178
3,076
189
1,983
87
1,817
55
168
8,060
64
640
86
847
18
128
16
185
16
51
15
39
8
14
8
9
1
4
1
8
Tax
IUymante B«lance
withheld cin 1944 cf tax
Iledere- 1Ida at
.Irne of
don of
intimated Hing
[IS______
Miscel
laneous
incoas
87,376
597,478
24O4O4TO2 £¡84454 £6£j68
30 898.387 2.042.196 39.304.461 7.764.461 82.606.286 22.859.855
156,54!
1,568,57! 1,834,184
1,697,26!
746,340
1
2
3
4
1(
U
1!
U
14
U
U
1
11
1
8
Z
B
2.
81
2
8l
2
%
2
3
5
5
5
5
5
5
3
5
8
4
1
Table 3. - Individual returns with adjusted gross income for 1944,
by States and Teritoriesj Number of returns, salaries and wages,
dividends and interest, adjusted gross income, and tax liability
(Money figures in thousands of dollars)
Dividends
Salaries
Number
and
and
of
interest 14/
wages 15/
returns
States and
Territories
572,ooe
Alabama
Arisona
Arkansas
California
Colorado
Connecticut
Delaware
Dis triât of Columbia
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New Tork
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
Texas
Utah
Vermont
Virginia
Washington 16/
West Virginia
Wisconsin
Wyoming
'Total
For
footnotes,
see
p-
XX
Adjusted
gross
income 4/
160,415
294,518
3,955,568
350,109
822,010
118,875
575,654
619,844
682,269
172,862
165,667
3,281,541
1,294,198
782,428
608,969
602,755
605,200
288,559
867,185
1,784,055
2,215,631
897,451
.261,609
1,199,251
167,008
415,774
55,601
184,451
1,829,218
122,992
5,599,607
761,289
160,511
2,874,184
500,026
488,183
5,698,751
297,295
572,504
159,583
694,255
1,947,800
194,344
106,967
775,479
896,870
480,479
1,105,294
78,948
9S7,6S2
289,359
595,841
8,083,058
561,808
1,925,982
268,558
775,419
1,088,185
1,121,884
570,150
205,546
6,954,457
2,458,547
909,405
890,732
969,431
1,008,409
488,573
1,808,055
3,750,289
5,204,857
1,507,575
572,121
2,091,575
270,715
497,652
111,716
510,555
4,184,581
190,867
12,599,595
1,155,225
155,086
6,273,252
799,714
9S2,558
7,514,188
595,085
549,982
151,609
1,105,028
5,127,092
579,080
160,084
1,415,962
1,801,088
925,144
1,890,191
142,467
1,185,411
18,529
384,422
9,187
581,338
11,799
502,111 10,649,860
824,968
55,737
2,325,585
122,765
539,264
30,445
956,456
56,475
1,554,019
71,655
1,421,516
45,657
476,099
9,648
551,087
5,789
8,702,045
275,268
5,144,033
69,117
1,665,954
56,964
1,360,582
24,529
1,228,999
53,549
1,318,078
35,144
608,188
27,664
2,211,779
80,084
4,466,782
221,599
6,257,695
145,914
1,890,787
58,573
525,596
10,405
2,725,663
108,022
373,608
6,652
860,095
20,960
154,10.
7,405
569,059
15,296
174,196
4,955,529
245,781
5,294
765,816 15,655,778
1,483,498
46,159
552,685
5,717
7,474,899
209,774
1,115,562
25,584
1,508,151
26,564
9,107,768
528,870
750,029
35,255
691,358
12,846
5,607
277,578
1,406,248
59,712
99,806
4,551,859
457,892
8,428
205,539
8,866
l,709,0ei
57,108
45,261
2,501,806
23,162
1,072,958
2,460,891
76,194
197,078
4,604
46,919,590
91,224,715
5,862,899 116,406,018
Tax
liabil
ity 15/
130,252
48,950
65,457
1JLy 544 4
l4
i4
t
110,086
564,464
68,106
151,275
222,794
177,956
72,651
57,054
1,297,781
402,950
190,061
163,259
134,683
167,444
69,985
510,888
624,644
909,432
257,650
59,698
557,419
45,542
97,511
25,419
59,289
705,508
25,455
2,435,681
163,057
52,856
1,055,280
135,151
190,522
1,228,122
105,401
64,716
25,124
159,812
559,973
49,717
21,791
208,124
551,918
112,127
500,865
26,006
16,054,025
Itole 4. - Tumble fiduciary « t u ™ for 1944, by totel income desees: Nueber of returns, sources of
Itole a.
x m o i e ixouoiary
e-cunt distributable to beneficiarles, net income, exemption, and tax liability
deductions, balance Income,
(Total income classes and money figures in thousands of dollars)
Taxable fiduciary returns:
Under 0.5
2 0.5 under 0.75
0.75 under 1
S
1 under 1.25
4
1.25 under 1.5
1.5 under 1.75
6
1.75 under 2
7
8 2 under 2.25
2.25 under 2.5
9
10 2.5 under 2.75
2.75 under 5
5 under 5*5
5.5 under 4
4 under 4.5
14
4.5 under 5
15
5 under 8
16
6 under 7
17
7 under 8
18
8 under 9
19
9 under 10
10 under 11
11 under 12
22
12 under 15
25
15 under 14
24
14 under 15
25
15 under 20
26
20 under 25
27
25 under 50
28
50 under 40
29
40 under 50
50
50 under 60
51
60 under 70
52
70 under 80
55
80 under 90
54
90 under 100
55
100 under 150
56
ISO under 200
57
200 under 250
58
250 under 500
59
500 under 400
40
400
under 500
41
500 under 750
42
750
under 1,000
45
1.000 under 1,500
44
1,500 undeV 2,000
45
2.000 under 5,000
46
5.000 under 4,000
47
4.000 under 5,000
48
5.000 and over
49
1
5
11
It
15
20
21
50
Total taxable fiduciary returns
51 Ihxable fiduciary returns with total in
coas under $5,000
52 Taxable fiduciary returns with total in
come of $5.000 and oyer______________
---- Total---Trade or busiRents and « 9 ¡alties 1 ^
number of and in
terest 18/
returns
mi
«ëTIÔto
6,615
7,955
7,215
5,918
5,019
4,542
5,648
5,454
2,890
2,576
2,505
4,155
5,575
2,945
2,451
5,909
5,119
2,505
2,015
1,655
1,597
1,154
1,046
855
807
2,741
1,627
1,065
1,245
776
452
505
149
157
102
275
98
50
28
24
14
25
1,502
2,725
5,541
5,614
5,824
5,961
5,757
4,098
5,874
5,867
5,751
7,851
7,570
7,565
6,952
12,880
12,122
11,299
10,182
9,528
9,004
8,010
8,194
6,609
7,109
28,297
21,480
17,512
25,676
18,956
12,406
10,765
5,959
8,157
. 5,604
19,690
8,844
6,510
4,564
4,419
2,802
10,577
205
1,025
1,225
1,247
1,149
1,186
1,159
1,202
1,060
949.
965
1,815
1,619
1,559
1,466
2,451
2,190
1,948
1,959
1,755
1,505
1,265
1,550
1,105
1,107
4,655
5,790
2,676
4,565
5,570
2,429
1,850
666
972
475
2,954
1,170
655
480
475
402
1,795
14
40
28
29
52
25
22
25
26
15
19
55
29
26
18
57
50
55
58
56
17
52
14
15
25
71
56
55
56
77
19
22
1
45
1
19
71
1
(54)
4
2
1,880
5,155
1,060
14
25
-
-
68,604
1.188
1
6.047
92,569
585.785
64,817
27,552
67,812
515,975
17,825
50,779
1
18
•
_
•
.
579
808
-
21
508
610
614
650
624
587
649
667
605
557
995
975
905
840
1,411
1,575
1,177
976
1,042
700
687
625
704
589
2,198
1,948
1,260
2,059
1*787
1,561
726
961
724
648
2,560
904
1,781
275
855
8
-
•
1,186
•
•
40.128
9,806
30,525
4
20
18
14
25
12
10
19
19
6
12
21
24
9
10
19
49
59
11
18
14
14
40
5
40
45
SS
19
61
49
70
9
9
22
7
US
10
15
16
6
—
5
-
55
128
186
206
171
225
235
272
290
267
254
649
518
558
615
1,225
1,272
1,149
1,285
1,028
1,054
1,010
849
1,200
995
4,465
5,608
2,858
5,199
4,618
5,206
5,025
1,147
955
512
2,059
1,465
155
1,145
585
276
—
-.
property other than llfrom
iduciapalpitai assets 25/
ries 24/
let loas
capital assets 22/
Partnership 21/
8
7
5
1
4
2
8
4
6
6
1
4
6
5
14
14
9
2
2
5
2
50
(54)
6
14
14
17
29
10
11
55
1
5
8
26
“
—
(54)
•
176
479
685
741
847
820
880
927
857
877
928
1,642
1,669
1,725
1,472
2,869
2,755
2,570
2,227
1,914
1,955
1.854
1,691
1,550
1,664
6,158
4,740
4,162
5.854
4,994
5,774
2,594
1,719
2,540
2,169
5,415
4,215
1,902
1,181
2,100
2,650
2,697
58
69
66
80
65
72
54
65
67
45
44
79
74
60
64
no
97
88
65
65
56
46
45
41
59
127
101
75
91
65
25
55
8
20
10
24
15
6
6
1
i
4'
*
“
1,556
69
_
•
2
29
44
59
40
55
56
28
22
27
55
47
47
47
59
74
44
48
66
27
12
52
24
25
16
58
51
55
20
10
14
21
25
5
(54)
50
55
4
7
19
5
10
5
4
18
14
20
9
8
8
11
16
27
18
8
7
4
25
6
2
18
6
14
64
20
14
58
5
7
19
4
2
21
•
IS
10
2
1
11
(54}
•
48
5
-•
-
-
-
income 26/
fi
Total income classes 17/
52
62
156
105
127
152
81
107
67
105
65
259
278
180
128
526
212
515
241
212
556
287
119
172
172
614
594
556
1,009
577
554
280
492
197
197
294
552
8
—
5
(54)
14
_
-■
12
149
179
182
215
189
211
172
151
167
171
520
276
279
250
484
461
406
525
297
201
229
525
206
150
1,018
622
581
815
556
156
597
94
108
140
544
196
74
59
45
15
184
1,915
4,957
6,271
6,616
6,889
7,054
6,826
7,525
6,855
6,775
6,617
15,595
12,611
12,509
11,618
21,470
20,227
18,719
17,115
15,677
14,616
15,265
15,054
11,269
11,678
47,174
56,540
29,044
42,762
54,608
25,528
19,565
11,022
15,545
9,716.
55,145
17,025
11,085
7,666
8,265
6,111
15,244
1
2
—
-
5,412
5,211
*
2
5
4
5
6
7
8
9
10
11
iz
IS
14
15
16
17
18
19
20
21
22
25
24
25
26
27
28
29
50
51
52
55
54
55
56
57
58
—
6.051
• 996
50,715
95,562
2,220
1,242
567
9.511
11.562
655.625
221
4,621
79
14,706
957
514
156
1,859
2,900
118,251
775
46,094
257
80,856
1,265
728
411
7,471
8,662
557,592
^516
1
For footnotes, see p. 11
o
CO
M b l* 4 . - Taxable fid u ciary returns fo r 1944, by to ta l incase classes» Hunber o f returns, sources o f
iao o M , to ta l ln coae, deductions, balance in case, amount d istrib u ta b le to b e n e ficia rie s, n et ineaae,
exemption, and ta x lia b ilit y - Continued
T otal lncoae classes 17/
Deduction fo r - _____________
Inter«» raxes 28/ liis c e l—
laneous
e st 27/
Total
deduotiona
tiona 29/
1
2
8
4
S
6
7
8
9
IO
11
12
18
14
IS
18
17
18
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
axable fid u ciary returns»
Under 0*8
0 .5 under 0.75
0.75 under 1
1 tinder 1 .2 5
1.25 under 1 .5
1 .5 under 1.75
1.75 under 2
2 under 2.25
2.25 under 2 .5
2 .5 under 2.75
2.75 under 5
5 under 5*5
5 .5 under 4
4 under 4 .5
4 .5 under 5
5 under 6
6 under 7
7 under 8
8 under 9
9 under 10
10 under 11
11 under 12
12 under 15
15 under 14
14 under 15
15 under 20
20 under 25
25 under 50
50 under 40
40 under 50
50 under 60
60 under 70
70 under 80
80 under 90
90 under 100
100 under 150
150 under 200
200 under 250
250 under 500
500 under 400
400 under 500
500 under 750
750 under 1,000
1.000 under 1,500
1,500 under 2,000
2.000 under 5,000
5.000 under 4,000
4.000 under 5,000
5.000 and oyer
51 Taxable
fiduciary returns with
total income under $5,000
Taxable
fiduciary returns with
5!
total Income of *5.000 and OTM £
footnot«
r>-
xx
Net in eons 51/
taxable
to the
fid»»cla ry
Amount
Tax
lla b ilof
it y ¿g/
surtax
exeaptio n 52/
665
2,690
2,562
1,866
1,524
1,261
1,061
976
804
688
656
1,051
824
705
578
922
725
574
465
581
312
264
229
190
179
587
356
214
264
158
91
69
34
29
21
61
23
12
7
5
5
S
228
377
622
736
791
854
810
904
839
842 1
802 ]
1,654
1,585
1,588
1,500
2,735
2,708
2,548
2,586
2,250
2,155
2,058
1,924
1,704
1,902
7,989
6,935
6}ûSi
9,54b
8,418
6,551
5,107
3,050
5,487
2,908
8,926
6,051
2,628
5,486
2,448
1,509
4,291
6
19
41
49
58
70
72
74
62
85
70
112
155
122
99
198
205
160
152
154
147
125
142
117
141
560
410
555
475
405
512
204
157
180
122
565
569
412
249
400
5
671
86
89
186
227
251
245
255
252
250
212
216
580
565
576
295
589
525
445
574
587
576
548
557
519
259
1,147
972
620
990
808
619
466
297
280
255
719
558
257
198
149
115
222
97
155
251
278
308
519
559
556
562
348
540
665
590
627
565
1,147
895
885
815
726
644
558
625
485
51*
2,168
1,514
1,579
2,205
1,520
1,010
1,164
553
700
598
1,959
869
550
470
456
182
455
140
242
459
555
597
632
664
682
654
644
626
1,157
1,090
1,125
957
1,954
1,625
1,486
1,519
1,?67
1,167
1,029
i,io e
921
915
5,675
2,897
2,332
5,670
2,731
1,941
1,834
987
1,160
752
3,225
1,575
999
917
1,005
298
1,546
1,774
4,715
5,812
6,062
6,292
6,422
6,162
6,645
6,201,
6,130
5,991
12,258
11,520
11,385
10,661
19,536
18,604
17,254
15,794
14,411
15,449
12,254
11,951
10,548
10,765
45,499
55,443
26,711
59,091
51,877
21,587
17,728
10,055
12,183
8,963
29,920
15,450
10,085
6,749
7,258
5,813
13,898
156
385
745
985
1,317
1,435
1,570
1,732
1,755
1,797
1,898
4,129
3,959
5,984
5,857
7,436
7,078
6,761
6,324
5,748
5,388
4,810
5,158
4,495
4,435
18,694
14,162
11,347
16,804
13,956
8,651
8,040
4,448
5,843
3,717
14,915
5,697
5,821
1,964
5,488
5,026
8,151
1,659
4,331
5,069
5,077
4,975
4,987
4,592
4,911
4,448
4,555
4,094
8,109
7,561
7,400
6,825
12,101
11,526
10,472
9,470
8,665
8,061
7,424
6,793
5,855
6,350
24,805
19,281
15,365
22,288
17,941
12,936
9,689
5,586
6,340
5,246
15,004
9,753
4,263
4,785
5,771
2,787
5,746
51
2
85
199
255
515
240
5,097
2,971
2,598
2,868
2,498
105
1
(34)
1,757
56
98
101
5.950_
2.166
8.784
(84) _
8.406
-
Total taxable fid u cia ry
returns
Balance Amount
ils t r lb in corns 50/ utable
to benefia ta rie s
8,251
16,045
30,705
54,981
600,642
243,625
357,017
23,844
131,078
1,075
5,590
5,559
10,222
108,009
29,659
78,550
17,668
14,127
7,158
12,455
25,147
44,759
492,655
ZL 3, 966
278,667
6,176
116,950
FOOTNOTES
l/ Total income for 1943, shown here, is the total income tabulated
from taxable fiduciary return? for Statistics of Income for 1943 adjusted
by substraoting therefrom the net loss from sales of capital assets, net
loss from the sales of property other than capital assets, and net losses
from trade or business, from partnership, and from rents and royalties..
19/ Net profit from rents and royalties is the excess of gross rents re
ceived over deductions for depreciation, repairs, interest, taxes, and other
expenses attributable to rent Income; and the excess of gross royalties over
depletion and other royalty expenses. Conversely, net loss from these sources
is the excess of the respective expenses over gross income received.
2/ Net income taxable to the fiduciary for 1943, shown here, is the
income tax net income reported, disregarding the deficit in income tax
net income reported on 1,253 returns showing only a victory tax on victory
tax net income.
20/ Trade or business profit or loss is the current year profit or loee.
(Net operating loss deduction is reported in miscellaneous deductions.)
5/ Adjusted gross income classes are based on the amount of adjusted
gross income (see note 4), regardless of the amount of net income or net
deficit when computed; returns with adjusted gross deficit are designated
no adjusted gross income and the else of the deficit is disregarded.
K / Adjusted gross income means gross income minus allowable trade and
business deductions, expenses of travel and lodging in connection with
employment, reimbursed expenses in connection with employment, deductions
attributable to rents and royalties, certain deductions of life tenants and
income beneficiaries of property held in trust, and allowable losses from
sales or exchanges of property. Should these allowable deductions exceed
the gross income, there is an adjusted gross deficit.
5/ The smount of surtax exemption includes that from returns with
the optional tax, wherein the exemption is allowed automatlcslly, as well
as that from returns on which the tax is computed. Surtax exemption is
|S00 for the taxpayer, $500 for the taxpayer's spouse if not dependent
upon another person, and $500 for each dependent with respect to whoa a
surtax exemption may be claimed. Such dependents must have received from
the taxpayer more than half their support for the year and must have had
less than $500 gross income during the year. Dependents include only dose
relatives which are specified by law.
6/ Average tax is computed on the total tax liability after deducting
the two tax credits relating to in00me tax paid at source on tax-free covenant
bods and to income tax paid to a foreign country or United States possession.
Such credits are allowed only on returns with itemised deductions.
T j Returns with normal tax and surtax are returns on which the normal
tax and surtax are computed by the taxpayer (long-form returns, Form 1040)
and returns with optional tax, paid in lieu of normal tax and surtax
(Forms W-2 and short-form returns, Fora 1040). Normal tax and surtax are
computed on income which includes the net gain or the allowable loss frca
sales of capital assets unless the alternative tax relating to the gain
is imposed.
8/ Returns with alternative tax are long-form returns, Form 1040, showing
an excess of net long-term capital gain over net short-term capital loss, on
which the alternative tax liability is less than the normal tax and surtax com
puted on net income which includes net gain'from sales of capital assets. Al
ternative tax is the sum of (1) a partial tax computed at the regular rates on
net Income, reduced for this purpose by the excess of net long-term capital
gain over net short-term capital loss, and (2) 50 percent of such excess.^
9/ Nontaxable returns are those with no adjusted gross income and
returns with adjusted gross income which when reduced by deductions,
standard or itemized, and exemptions result in no tax liability.
10/ The no adjusted gross income classification is for returns showing
other loss on line 4, page 1, Form 1040, equal to or in excess of salaries,
wages, dividends, and interest.
11/ The number of returns is subject to maximum sampling variation of
30 to 100 percent, depending on the number in the cell. (For description
of sample, see release dated June 25, 1947, Press Service No. S-366.)
12/ Number of returns in cell is subject to sampling variation of more
than 100 percent. Since the number is considered too unreliable for gen
eral use, it is not shown; however, it is Included in the totals. (For
description of sample, see release dated June 25, 1947, Press Service
No. S-366.)
13/ Salaries and wages include annuities, pensions, and retirement
pay not reported in the schedule for annuities and pensions, but exclude
wages of less than $100 per return from which no tax was withheld, reported
on Forma W-2.
14/ Dividends, domestic and foreign, and Interest before amortisation
of bond premium. This item includes both taxable and partially tax-exempt
Interest on Government obligations and dividends on share accounts in Federal
savings and loan associations, but excludes dividends and interest not
exceeding $100 per returns reported on Forms W-2.
15/ Tax liability after deducting tax credits relating to income tax
paid at source on tax-free covenant bonds and to income paid to a foreign
country or United States possession, allowed only on returns with Itemized
deductions.
16/ Includes Alaska.
Total income classes are based on the amount of total income tabulated
for taxable fiduciary returns for 1944 (see note 26). This classification
is, in general, comparable with the adjusted gross income used for dassification of individual returns for 1944.
W
18/ Dividends, domestic and foreign; interest on tax-free covenant bonds,
bank deposits, and corporation bonds before amortization of bond premium;
taxable and partially tax-exempt interest on Government obligations after
amortization of bond premium; and dividends on share eccounts in Federal
savings and loan associations. Dividends and interest include amounts re
ceived through partnership and other fiduciaries.
21/ Partnership net profit or loss excludes partially tax-exempt Interest
on Government obligations, dividends on share accounts in Federal savings
and loan associations issued prior to Kerch 28, 1942, and net gain or loss
from sales of capital assets. In computing partnership profit or loss
charitable contributions are not deductible and the net operating loss
deduction is not allowed.
22/ Net gain from sales or exchanges of capital assets is the amount
taken into account in computing net income whether or not the alternative
tax is imposed. Net loss from such sales is the amount reported as a
deduction in computing net Income. Each is the result of combining net
short- and long-term capital gain and loss and the net capital loss
carried over from 1942 and/or 1943. Deduction for the loss, however, is
limited to the amount of such loss, or to the net income computed without
regard to gains and losses from the sales of capital assets, or to $1,000,
whichever is smallest. Sales of capital assets include worthless stocks,
worthless bonds if they are capital assets, nonbusiness bad debts, and each
participant's share of net short- and long-term capital gain and loss tow
be taken into account from partnerships and common trust funds.
23/ Net' gain or loss from sales or exchanges of property other than
capital assets is that from the sales of (1) property used in trade or
business of a character which is subject to the allowance of depreciation,
(2) obligations of the United States or any of its possessions, a State
or Territory or any political subdivision thereof, or the District of
Columbia, issued on or after Kerch 1, 1941, on a discount basis and payable
without Interest at a fixed maturity date not exceeding one year from date
of issue, and (3) real property used in trade or business.
24/ Income from fiduciaries excludes partially tax-exempt Interest on
Government obligations, dividends on share accounts in Federal savings
and loan associations issued prior to Kerch 28, 1942, and net gain or loss
from sales or exchanges of capital assets received from common trust
funds. The net operating loss deduction is allowed to estates and trusts
generally and is deducted in computing the income to be distributed.
However, in the case of a common trust fund the net operating loss deduc
tion is not allowable, but each participant's share of prior year income
and losses of the fund is taken into account in determining his own net
operating loss deduction.
25/ Kiscellaneous income includes taxable income from sources other than
those provided for on the return form.
26/ Total income is the sum of the positive items of income minus the
net loss from rents and royalties, net loss from trsde or business, net
loss from partnership, and net losses from sales of capital assets end of
property other than capital assets. Although it is not comparable with
the total income tabulated in prior years when losses reported under income
were transferred to deductions, it is, In general, comparable to adjusted
gross income tabulated for individual returns for 1944.
-27/ Interest is that paid on debts, mortgages, ar.d bank loans; it does
not include interest reported in schedules for business or rent Income, nor
interest on indebtedness incurred to buy tax-exempt securities, single
premium life insurance, or endowment contracts.
28/ Taxes paid Include State Income taxes, certain retail sales taxes, and
real estate taxes except those levied for improvements which tend to
increase the value of property. This deduction for taxes does not include
Federal income taxes; taxes on shares in a corporation which are paid by
the corporation Without reimbursement from the taxpayer; taxes deducted
in the schedules for business and rent income; nor income taxes paid to
a foreign country or possession of the United States if any portion thereof
is claimed as a tax credit.
29/ Kiscellaneous deductions include the net operating loss deduction,
amortizable bond premium on corporation bonds, losses resulting from war,
fire, storm, shipwreck, or other casualty or from theft, not covered by
insurance Of otherwise, and other authorised deductions for which no Separate
provision is:made en the return farm.
50/ Balance Income is the amount of income before the deduction of
the amount distributable to beneficiaries; it is the excess of total In
come over total deductions.
51/ Net income taxable to the fiduciary is the net income after sub
tracting from the balance income the amount distributable to beneficiaries.
52/ Surtai exemption is $500 for each estate and $100 for each trust.
53/ Tax liability before deducting tax credits relating to income
tax paid at source on tax-free covenant bonds and to income tax paid to
a foreign country or United States possession. The amount of these two
tax credits is not available.
34/ Less than $500.
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Wednesday, August 2 0 , 19h 7 •
Press Service
No. S- of
Secretary of the Treasury Snyder today announced the offering, through
the Federal Reserve Banks, of 7/8 percent Treasury Certificates of Indebted
ness of Series H-19U8 , open on an exchange basis, par for par, to holders of
Treasury Certificates of Indebtedness of Series H-19U 7, in the amount of
$2,3Ul,0 0 5,0 0 0 , which will mature on September 1 , 19U7 . Cash^ subscriptions
will not be received.
The certificates now offered tail be dated September 1 , 19U7, and will
bear interest from that date at the rate of seven-eighths of one percent per
annum, payable with the principal at maturity on July 1 , 19l|8 . They will be
issued in bearer form only, in denominations of $1,000, $5,000, $10,000,
$100,000 and $1,000,000.
Pursuant to the provisions of the Public Debt Act of 19Ul, as amended,
interest upon the certificates now offered shall not have any exemption, as
such, under the Internal Revenue Code, or laws amendatory or supplementary
thereto. The full provisions relating to taxability are set forth in the
official circular released today.
Subscriptions will be received at the Federal Reserve Banks and Branches,
and at the Treasury Department, Washington, and should be accompanied by a
like face amount of the maturing certificates. Subject to the usual reserva
tions, all subscriptions will be allotted in full.
The subscription books will close for the receipt of all subscriptions
at the close of business Friday, August 2 2 .
Subscriptions addressed to a Federal Reserve Bank or Branch or to the
Treasury Department, and placed in the mail before midnight August 2 2 , will
be considered as having been entered before the close of the subscription
books.
The text of the official circular follows:
UNITED STATES OF AMERICA
7/8 PERCENT TREASURY CERTIFICATES OF INDEBTEDNESS OF SERIES H-19i*8
Pa-bed and bearing interest from September 1 , 19k7
19i*7
Department Circular No, 812
Due July 1 , X9JU8
TREASURY DEPARTMENT,
Office of the Secretary,
Washington, August 2 0 , lpl*7.
Fiscal Service
Bureau of the Public Debt
I.
OFFERING OF CERTIFICATES
1.
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 certificates of indebtedness of the United States,
designated 7/8 percent Treasury Certificates of Indebtedness of Series H-19l*8 ,
in exchange for Treasury Certificates of Indebtedness of Series H—19l*7 , maturing?
September 1 , 19l*7 .
II,
DESCRIPTION OF CERTIFICATES
1.
The certificates will be dated September 1 , 191*7, and will bear interest
from that date at the rate of 7/8 percent per annum, payable with the principal
at maturity on July 1 , 191*8 . They will not be subject to call for redemption
prior to maturity.
2.
The income derived from the certificates shall be subject to all taxes
now or hereafter imposed under the Internal Revenue Code, or laws amendatory
or supplementary thereto. The certificates shall be subject to estate, in
heritance, 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
nereof by any State, or any o£ the possessions of the United States, or by any
local taxing authority.
9
*
v
, 3 » The certificates will be acceptable to secure deposits of public moneys,
ney vail not be acceptable in payment of taxes.
ihn non ^
eL S ertifiCateS wil1 be issued in denominations of $1,000, $5,000,
tered form100*000 ^
^1,000,°00, The certificates will not be issued in regis-
Trpa«^* nhe c®rtificates will be subject to the general regulations of the
tificatesDePartme^ 9 n°W °r hereafter Prescribed, governing United States cerIII.
SUBSCRIPTION AND ALLOTMENT
and at\v,fUm SCriptl0nS wil1 be received at the Federal Reserve Banks and Branches
D ^ artment^ Washington. Banking institutions generally may
and t h e ^ !
Ptl£nS f?r account of customers, but only the Federal Reserve Bartfcs
asury Department are authorized to act as official agencies.
submit
107
-
2
-
2 • The Secretary of the Treasury reserves the right to reject any sub
scription, in whole or in part, to allot less than the amount of certificates
applied for, and to close the books as to any or all subscriptions at any time
vdthout noticej 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.
PAYMENT
1.
Payment at par for certificates allotted hereunder must be made on or
before September 2 , 19l±7j or on later allotment, and may be made only in
Treasury Certificates of Indebtedness of Series H-19li7j maturing September 1,
19h7> which will be accepted at par, and should accompany the subscription.
The full y e a r ’s interest on the certificates surrendered will be paid to the
subscriber following acceptance of the certificates.
V.
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 certificates allotted, to make delivery of certificates
on full-paid subscriptions allotted, and they may issue interim receipts pend
ing delivery of the definitive certificates.
2 . The Secretary of the Treasury may at any time, or from time to time,
prescribe supplemental or amendatory rules and regulations governing the offer
ing, which will be communicated promptly to the Federal Reserve Banks.
JOHN W. SNYDER,
Secretary of the Treasury.
Secretary of the Treasury Snyder and Acting Secretary of
State Lovett announced today that consultations which have
taken place between the Governments of the United States and
the United Kingdom have resulted in an understanding between
the two,governments concerning emergency action being taken
by the United Kingdom Government to stop the excessive drains
to which its dollar resources have been subjected in recent
weeks*
This understanding is embodied in the attached letters
exchanged by the Rt, Hon* Hugh Dalton, Chancellor of the
Exchequer and Secretary of the Treasury, John W. Snyder:
* # # * *
Treasury Chambers
Great George St.
London, S.W. 1
August 20, 19^7
Dear Mr. Secretary,
H.M. Government have to inform the United States
Government that they have found it necessary to take
immediate stringent measures to counter the recent ex
cessive drain on their dollar resources. Unless this drain
is checked at once H.M. Government will be unable to pursue
the objectives of the international monetary and economic
policy of which the Anglo-American Financial Agreement is
a signal expression. Accordingly the system of transferable
accounts will be modified at the close of business today,
August 20, so as to make it possible effectively to control
dollar outpayments*
This action is of an emergency and temporary nature
which H.M. Government consider to be within the intentions
and purposes of the Financial Agreement and which they
hope will enable them to take appropriate action to assure
that the limited dollar resources of the United Kingdom
are available for the purposes contemplated by the Financial
2
Agreement and are not diverted to other ends. H.M,
Government wish to indicate, however, that developing
circumstances will probably make necessary consultations
between the two governments concerning the application
of section 8(ii) of the Financial Agreement in certain
cases in which exceptional features exist.
By these means H.M. Government believe that it will
be possible to work out in consultation with the United
States Government and within the framework of the Financial
Agreement and of the International Monetary Fund Agreement
a constructive policy which will be best suited to changes
in the situation as they appear and which will lead towards
the objectives laid down in both those Agreements.
The restrictions now contemplated should not be
interpreted as in any degree Indicating a modification of
H.M. Government’s oft-expressed view as to the desirability
of maintaining full and free convertibility of sterling.
As a long-run objective, such convertibility is an
Indispensable element in British financial policy. The
steps presently being taken are to be regarded as purely
emergency in character.
H.M. Government also wish to state that payments
between the United Kingdom and the United States will not
be affected by the action which is being taken.
H.M. Government appreciate that in the circumstances
which have arisen, provision is made in section 8(ii)(b)
of the Financial Agreement for consultation prior to
agreement if the Governments of the United Kingdom and
the United States are to continue to Invoke the provisions
of Article XIV section 2 of the Articles of Agreement of
the International Monetary Fund, H , M , Government would not
propose to notify any further withdrawals, beyond those
already notified, from the line of credit, until the con
sultation contemplated as above has been carried out.
Yours sincerely,
/s/ Hugh Dalton
Honorable John, W, Snyder
Secretary of the Treasury
Washington, D. C.
110
- 3 -
August 20, 19^7
My dear Chancellor:
It is appreciated that the action described in the
first paragraph of your letter is of an emergency and
temporary nature, and is deemed by you essential to afford
the United Kingdom Government an opportunity for institutin
measures to protect the system of convertibility from abuse
which endanger its survival.
W OQ
The United States Government acknowledges the United
Kingdom Governments letter of August 20 and takes sympa
thetic note of the grave drains to which its dollar resources
are currently being subjected. These drains have run at a
rate greatly in excess of the normal flow of current trans
actions with consequent peril to the re-creation of the
multilateral payments system which is a major objective of
the Anglo-American Financial Agreement.
The United States Government notes with satisfaction
the assurance of the United Kingdom Government that it will
be possible to work out the proposed action within the
framework of the Financial Agreement. It also notes with
satisfaction the intention of the United Kingdom Government
to consult with this Government respecting any action which
it may propose in accordance with section 8(11) of the
Financial Agreement.
The United States Government notes the statement in
the final paragraph of your letter.
Sincerely yours,
/s/ John W. Snyder
Secretary of the Treasury
Right Honorable Hugh Dalton
Chancellor of the Exchequer
Treasury Chambers
London, England
<y-
oOo
TREASURY DEPARTMENT
Washington
f.:
FOR RELEASE, MORNING NEWSPAPERS,
Friday# August 22, 1947
_
press Service
N o . S-433
The Secretary of the Treasury, by this public notice#
invites tenders for $ 1 ,300,000#000, or thereabouts, of 92-day
bills, for cash and in exchange for Treasury bills maturing
Aupust 28, 1947, to be issued on a discount basis under comv
petitive and non-competitive bidding as hereinafter provided.
The bills of this series will be dated August 28, 1947# sna
will-mature November 28, 1947# when the face amodnt will be
payable without Interest.
They will be issueJ;,*n
only, and in denominations of $1,000, $5#000? $10,000, $10Q000,
$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
daylight saving time, Monday, August 25# 1947. Tenders will
not be received at the Treasury Department, Washington. Each
tender must be for an even multiple of $1,000, and in the
case of. competitive tenders the price offered must be ex
pressed on the basis of 100, with not more than three deci
mals , e.g., 99.925. Fractions may not be used. It is
urgdd that tenders be made on the printed 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 incorpo
rated banks and trust companies and from responsible and
recognized dealers in investment securities. Tenders from
others must be accompanied by payment of 2 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
i/hich 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 ex
pressly 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.
Subject to these reservations,
ban-competitive tenders for $200,000 or less without stated
price from any one bidder will be accepted in full at the
average price (in three decimals) of accepted competitive
bids. Settlement for accepted tenders in accordance with
the bids must be made or completed at the Federal Reserve
Bank on August 28, 1947# in cash or other immediately
available funds or in a like face amount of Treasury bills
maturing August 28, 19^7. Cash and exchange tenders will
receive equal treatment. Cash adjustments will be made for
differences between the par value of maturing bills accepted
in exchange and the issue price of the new bills.
The income derived from Treasury bills, whether interest
or gain from the sale or other disposition of the bills, shall
not have any exemption,1 as such, and loss from the sale or
other disposition of Treasury bills shall not have any special
treatment, as such, under the Internal Revenue Code, or laws
amendatory or supplementary thereto. The bills shall be sub
ject to estate, inheritance, gift or other excise taxes,
whether Federal or State, but shall be exempt from all ^ax-:
ation 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 intéfcest* Ünder\Sections ^2 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,
arë- sold shall not be considered,to accrue until such bills
shall be sold, redeemed or otherwise disposed of, add 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 terns of the Treasury bills and
govern the conditions of their issue. Copies of the circu
lar may be obtained .from any Federal Reserve Bank or Branch.
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS
Friday, August 22, 19^7
Press Service
No, S-439
The Chairman of the National Advisory Council,
Secretary of the Treasury Snyder, announced that a joint
session of the National Advisory Council and the United
Kingdom Delegation to the Anglo-American Financial dis
cussions was held in the afternoon of August 21, in the
Conference Room of the Treasury Building in 'Washington.
At this meeting, Sir Wilfrid Eady, the head of the
United Kingdom Delegation, outlined to the Members of the
National Advisory Council a general forecast of the
British balance of payments for the remainder of this year
and the first half of 19^8. In the course of the discussion
exploratory consideration was given to the effect of
recent events on British export and impart prospects. It
was recognized that the estimates had to take account of
British export capacity concerning whicfcnit was possible
to be fairly optimistic, as well as factors largely beyond
the control of the United Kingdom,
The full picture of the United Kingdom's financial
prospects for the period under review will not be clarified
for perhaps another few weeks. It was possible, however,
to explore in some detail such aspects as market prospects
for British exports, international prices, and Britain's
general import program with particular reference to the
problem Involved in maintaining food imports adequate both
as to total amount and variety. In the course of this
phase of the discussion, Sir Wilfrid Eady outlined for the
general information of the members of the National Advisory
Council prospects for improvement in British coal production
to the point where coal exports might once more reach the
pre-war volume and thus play their Important role in the
British balance of payments.
Further joint meetings are contemplated.
oOo
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS
Saturday, August 23» 1947
Press Service
No. S-440
Secretary Snyder said today that he was greatly pleased
with the cooperation which the Treasury is receiving from
banks and other financial institutions throughout the country
in making arrangements for the cashing of Armed Forces
Terminal Leave Bonds.
The Secretary stressed the fact that
banks and other financial institutions acting as official pay
ing agents for the Treasury will cash the bonds at their full
face amount plus accrued interest at 2-1/2$ from the date of
the bond to the last of the month in which payment is made
(but not beyond maturity), and that the bonds will be cashed
without any fee or other cost to the veterans.
There is no
need, therefore, for any veteran to cash his bond any place
at a discount or to pay a fee of any kind for its cashing.
Veterans not in immediate need of cash should hold
their terminal leave bonds as long as possible because they
will continue to draw interest at 2-1/2$ (until maturity)
and can be cashed immediately upon request at any bank or
other financial institution which is authorised to act as
an official paying agent for the Treasury.
Since there are
16,000 such banks and financial institutions, one or more
can be found in almost any community.
Secretary Snyder said that he was highly pleased that
many banks are advising veterans to hold on to their terminal
leave bonds until they are in actual need of cash; at thé
same time he cautioned stores and others against accepting
these bonds in payment for merchandise because they are not
transferable, and authorized paying agents of the Treasury
will not redeem the bonds for anyone except the person whose
name is inscribed on the bond.
oOo
TREASURY DEPARTMENT
Washington
FOR IMMEDIATE RELEASE,
Friday, August-22 1947,
Press Service
No. S-441
The Chairman of the National Advisory Council, Secretary
of the Treasury Snyder, announced that a joint session of the
National Advisory Council and the United Kingdom Delegation
to the Anglo-American Financial discussions was held this
afternoon.
Sir Wilfrid Eady, the head of the United Kingdom Delega
tion, explored with the Members of the National■Advisory Council
problems arising from the foreign trade programs of the United
Kingdom Government. It was conclude^ that further consideration
should be given to all aspects of these problems by the joint
technical working committees.
It is not expected that further joint meetings of the
National .Advisory Council and the United Kingdom Delegation
will be necessary at this time in connection with the current
discussions as Sir Wilfrid Eady and Mr. Cameron Cobbold are
returning to London over the week-end to report progress of
the conference to their Government and to discuss policy
requirements. Other members of the British Delegation are
remaining to continue technical discussions next week.
These discussions form part of a series of consultations
and the two Governments will be in continued communication, with
the expectation that high level discussions will be resumed at
an appropriate time.
0O0
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS, •
Tuesday, August 26, 1947.______ ___
*
Press Service
No. S-442
The Secretary of the Treasury, by this public notice,
invites tenders for $1,300,000,000, or thereabouts, of 9 1 -day
Treasury bills, for cash and in exchange for Treasury bills
maturing September 4, 19^7* to be issued on a discount basis
under competitive and non-cômpetitive bidding as hereinafter,
provided.
The bills of this series will be dated September.A,
1947, and will mature December 4, 1947/ when the face a m o u n t . 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., Easterndaylight saving time, Friday, August 29, 1947*
Tenders will
not be received. aN
t' the Treasury Department, Washington. . Each,
tender must bé for an even multiple of $1,000, and in the case
of competitive/tenders the price offered must-: be expressed, on
the basis of Î0Ô, with’not-more than three decimals, e. g /,
99.925.
Fractions may not be used.. It is urged that tenders
be made on thé 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 2 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 o-r reject any or all tenders, in whole or in part, and
his action in any such respect shall be final.
Subject to these
reservations, non-competitive tenders for $200,000 or less
without stated price from any one bidder will be accepted in full
at the average price (in three decimals) of accepted competitive
bids.
Settlement for accepted tenders in accordance with the
bids must be made or completed at the Federal Reserve Bank on
September' 4, 1947, in cash or other immediately available funds
in a like face amount of Treasury bills maturing September 4,
T947. Gash and exchange tenders will receive equal treatment.
2
Cash adjustments will be made for differences between the par
value of maturing bills accepted in exchange and the issue price,
of the new bills.
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 the Internal Revenue Code, or laws amendatory
or supplementary thereto. 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. amount1of 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 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 salé-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.
oOo
116
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Tuesday, August 26, 19*17.
Press Service
No. S-443
The Secretary of the Treasury announced last evening that
the tenders for $1,300,000,000, or thereabouts, of 92-day
Treasury bills to be dated August 28 and to mature November 28,
1947, which were offered August 22, 1947, were opened at the
Federal Reserve Banks on August 25.
The details of this issue are as,follows:
Total applied for
Total accepted
Average price
$1,717,996,000
1,301,679,000 (includes $18,698,000
entered on a non-competitive basis
and acoepted in full at the average
price shown below
99.8o8 Equivalent rate of discount
approx. 0.752/0 per annum
Range of accepted competitive bids: .
High
- 99.825 Equivalent rate of discount
approx. 0.685$ per annum
Low
- 99.805 Equivalent rate of discount
approx. 0.763$ per annum
(88 percent of the amount bid for at the low price
was accepted)
Federal Reserve
Total
Total
D i s t r i c t_____
Accepted
Applied for
Boston
$
New York
1,385,000
1 ,609,553,000
12 ,000,000
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St, Louis
Minneapolis
Kansas City
Dallas
San Francisco
1,675,000
3.353.000
855,000
67 ,189,000
1 200.000
2.445.000
5.195.000
2 .680.000
10,466,000
.
TOTAL
f i ,717 ,996,000
0
O0
$
1 ,3 8 5 ,0 0 0
1,240,733,000
1 ,0 0 0 ,0 0 0
1 ,5 6 3 ,0 0 0
3.353.000
855,000
30 ,'889,000
1 .200.000
2.410.000
5 .195.000
2 .630.000
10,466,000
$ 1 , 301 , 6 79,000
TREASURY DEPARTMENT
Washington
FOR IMMEDIATE RELEASE,
Wednesday, August 27« 19¿7
Press Service
No. S-4 4 4
Secretary Snyder said today latest reports from the drive against tax
evaders featured numerous cases developed against operators of black markets in
automobiles, meat, textiles, and liquor.
Commissioner of Internal Revenue George J. Schoeneman advised the Secretary
that, among the thousands of cases -which produced record-breaking additional
taxes as a result of the enforcement efforts in the last fiscal year, were the
following:
A mi d w e s tem group of liquor dealers has been assessed 41,445,000 for evasion
of tax on profits from black market sales of liquor in their own states and from
sales to bootleggers in the dry state of .Mississippi. Criminal prosecution also
is contemplated.
Numerous investigations of used car dealers’ transactions during the time
when OPA price ceilings were in effect indicate that payment of "side-money 11 and
other devices to violate the OPA price ceilings were general throughout the country.
Frequently, the over-ceiling payments were omitted by the dealers from their income
tax returns, and agents are finding these cases extremely profitable to the govern
ment* The latest case developed was one in which a dealer reported only 412,000
taxable income in three years, whereas agents discovered at least 4100,000
additional profits, against which tax and penalties will be assessed.
In one large city recently, a new car dealer’s franchise was revoked by the
factory after the dealer was convicted of income tax evasion.
An eastern textile black marketeer recently was assessed over 493*000.
A large case against a meat black marketeer is developing in a northern state.
Other large and interesting cases among recent reports include:
A southwestern fruit company faces criminal charges and has been assessed
4843,000 for failure to report profits from one of its principal imports of tropical
fruits. The company’s main business was bananas, and this business was shown on the
books. The books, however, failed to mention huge profits from certain other fruits
which also were imported in volume.
A western contractor is being billed for over $500,000 on concealed profits
made during-the war in handling army contracts aid in selling and renting construc
tion equipment to other contractors. Among the devices he used for concealing his
income was the fake sale of heavy road equipment to his daughters and the subsequent
payment of "rent" to the daughters for use of the machines.
Two cases of attempted bribery of tax investigators were discovered recently,
tn one case, a certified public accountant was convicted by a jury after only three
ainutes deliberation. The other case, involving a women undertaker, is pending.
118
- 2Alcohol Tdx agents report a recent case in which they raided a mountain
moonshine still* One operator was arrested and handcuffed to a tree* while the
agents chased tile second operator« "When the agents returned., they found the first
operator had been able to reach an ax and to chop down the tree* They followed
him to a new liquor cache before rearresting him*
In one southern city a small merchant, found evading several thousand dollars
of income tax, complained that "the big fish get away"* .asked to explain this
statement, he named a nearby dealer, who has been assessed $3^,000 as a result*
A western purchasing agent was found to owe more than $100,000 of income' tax
and penalties after investigation of "kickbacks" he got from war contractors.
Investigation of an Atlantic coast textile processor disclosed he failed to
report $677*000 of income from the sale of "remnants", derived from fulfilling war
contracts*
The estate of a former sheriff of a western county was found to include over
$125,000 of profits from contracts for feeding prisoners of his county jail, very
little of which had been reported in income tax returns* The sheriff had received
a fixed amount per prisoner, but used only a fraction of the fee for the actual
purchase of the food*
Over $70,000 of unreported fees were discovered upon investigation of a
fashionable surgeon in a large eastern city.
-oOo-
\
19
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Friday, August 29 j 19^7________
Press Service
No. S-4^5
Secretary Snyder announced today that Italy has been
added to the list of countries whose blocked accounts may
be ¿released under the certification procedure of General
License No. 95. The unblocking of Italian assets in the
United States is provided for in the overall financial
agreement recently concluded between the United States
Government and the Government of Italy,
Today’s step was taken after an exchange of letters
between Ivan M. Lombardo, Chief, Italian Economic Delegation,
and Secretary Snyder similar to those written in connection
with the defrosting of the countries previously named in
that license. Copies of the letters are available at the
Federal Reserve Bank of New York. The Italian Government
has not yet designated the agency which will carry out the
investigative and certifying responsibilities under the '
letter of assurances and General License No. 95.
oOo
f
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Saturday, August 30 j 1947»______
120
Press Service
No. S-446
John W. Snyder, Secretary of the Treasury, announced today
the findings and recommendations of part one of the report of
the special interagency committee on the hazards'of ammonium
nitrate. The special committee was convened upon recommendation
by the Commandant, United States Coast Guard, following the
preliminary findings of the Coast Guard Board of Investigation
at Texas City.
The first part of the report covers the hazards of trans
portation of ammonium nitrate fertilizer on board vessels. The
second and third parts, to be completed at a later date, will
cover respectively the hazards in land transportation and the
results of chemical and physical tests of ammonium nitrate
fertilizer. Inasmuch as public safety is the primary objective
of the interagency committee and all indications point to the
particular vulnerability of ammonium nitrate fertilizer when
handled or transported on board vessels, any further delay in
announcing the first part of the report is not believed desirable
under existing conditions. Experiences and study indicate the
explosive hazard of ammonium nitrate fertilizer in normal land
transportation is negligible.
The interagency committee is comprised of eighteen members
who represent interested agencies in the handling and trans
portation of ammonium nitrate fertilizer from a national view
point. The committee has representation from the Departments
of Treasury, War, Navy, Interior, Agriculture and Commerce, the
Army-Navy Explosives Safety Board, the Interstate Commerce
Commission, the Maritime Commission, and the Bureau of Explosives
The first report was signed by 14 members of this special com
mittee. Three members are not available for signature: one
member declined to approve.
Each of the two explosions at Texas City was precipitated
oy a dissimilar chain of events. The SS GRANDCAMP explosion
iwhich occurred first) was the direct result of excessively
high temperature and pressure caused by fire in the hold loading
ammonium nitrate fertilizer and the subsequent failure to apply
«5.
introduction of steam as an extinguishing agent, closing
oi hatches and sealing of hold ventilators. The SS HIGHFLYER
explosion (16 hours later) resulted from fire and the possible
contamination of ammonium nitrate with sulphur. Sulphur was
iiLthe SS HIGHFLYER h°id adjacent to ammonium nitrate,
tv! cc RIGHFLYER hatch covers and tarpaulins were blown off by
t granDCAMP explosion.
It is presumed that burning embers
re later carried over the open hatches of the SS HIGHFLYER.
-
2-
The ammonium nitrate-fertilizer of the type involved in
the SS GRANDCAMP explosion consists of approximately 95$
ammonium nitrate.
It is not of itself unstable at a temperature
below 200°F. It is not of itself readily ignitible, but when
mixed with a combustible material, it is a vigorous and strong
supporter of combustion.
It has a melting point of 336°F. at
which temperature it gives off gaseous products which are both
combustible and toxic.
Temperatures at or above its melting
point are critical.
Ammonium nitrate fertilizer is not classed as an explosive
in Coast Guard regulations. It is properly included in such regulations governing transportation of ’’Explosives and Other
Dangerous Articles on Board Vessels,” as an oxidizing material.
The most common hazard to ammonium nitrate fertilizer in
marine transportation is fire involving combustible containers
or adiacent combustible material that may be present in the
hold. On both the SS GRANDCAMP and the SS HIGHFLYER the fertilizer
substance was contained in 6 -ply paper bags and was dunnaged
with both,wood and paper in the hold. Under such circumstances
fire may be caused by, but not limited to, open flame, sparks,
burning embers, live cigarettes, cigar butts, pipe ashes,
oxyacetylene burning s.nd welding, electrical grounds and short
circuits contamination by or contact With substances capable
of heating spontaneously and igniting, and other causes.
The initiating cause of the fire on the SS GRANDCAMP is
undetermined, but the Coast Guard investigating board at Texas
City was of the opinion that it was caused by the careless
disposal of cigarette butts. The interagency committee accepts
the findings of the Coast Guard board that smoking regulations
were disregarded on the SS GRANDCAMP and therefore concurs that
the primary cause of the disaster was the carelessness of men
smoking.
Samples of the ammonium nitrate fertilizer from the SS
GRANDCAMP were free from any contaminating material. Aboard
the SS HIGHFLYER, on the other hand, the presence of sulphur
dust, bulk sulphur in the hold adjacent to that of ammonium
nitrate, and the possibility of burning and molten sulphur
having found its way into the lower hold containing the ammonium
nitrate cargo, leads the committee to accept the presence of
sulphur as a contributing cause to the' rapid decomposition of
the fertilizer substance. This belief was later substantiated
by laboratory tests of ammonium nitrate with a 10$ mechanical
mixture of sulphur. These tests demonstrated conclusively the
ability to completely detonate ammonium nitrate with sulphur
as a contaminant. The exact minimum percentage of sulphur
contaminant necessary for complete explosion has yet to be
determined. Further tests will be continued inasmuch as sulphur
is a common article of marine commerce.
3
Extensive tests have shown that ammonium nitrate fertilizer
will not heat spontaneously, it is not affected by friction
nor normal impact encountered in transportation, and in the
absence of confinement and pressure of gasses as products of^
fire it will consume all combustible material and the fire will
then cease without explosion.
Ammonium nitrate is a stable
substance at temperatures below 200° P . It is necessary to change
its chemical stability in order to effectuate an explosion.
Its chemical stability (of large quantities) can be altered by
(1) fire under confinement in a compartment which lends itself
to the retention of heat and the building up of pressure, and
(2) contamination with sulphur or other substances and subsequent
ignition by fire.
The committee recognizes the above hazards in connection
with ammonium nitrate fertilizer.
But the committee also
recognizes that there are hundreds of different substances
possessing minor or major hazards moving in^commerce every day.
These substances are used for the preservation of life, safe
guarding of health, compounding medicines, heating, lighting,
cooking, cleaning, transportation, preservation of foodstuffs
and for other creature comforts.
The economy of the nation is
influenced to a considerable degree by substances having
dangerous characteristics which form a part of normal life.
And the number of these dangerous substances is likely to
increase in years to come.
To prohibit the handling and^trans
portation of any dangerous article or to impose restrictions
of such severity as to make its transportation economically^
impossible, would eliminate all hazard in connection therewith.
Such procedure, however, would not be a practicable solution
to the problem at hand.
The committee agrees that the program of relief of devastated
countries and the economy of the American farmer will be adversely
affected if ammonium nitrate fertilizer is not utilized.^ Inas
much as ammonium nitrate has proved to be an excellent nitrogen
fertilizer, the committee feels that with proper precautions and
adequate supervision of all phases of loading, stowage^and
transportation on board vessels, ammonium nitrate fertilizer
can be transported with reasonable safety.
The principal hazard
to guard against on board vessels is fire.
To further the interests of safety in the transportation of
ammonium nitrate fertilizer on board vessels, the committee
makes pertinent recommendations to the effect that:
(1) the U.S. Coast Guard promulgate a requirement of regula
tions that vessels loading or unloading ammonium nitrate
fertilizer cargo provide a fire watch.
(2) the U.S. Coast Guard initiate suggestive methods of p r e
venting fires and extinguishment of fire on vessels having on
board or loading or unloading ammonium nitrate fertilizer.
123
4
(3) as an interim measure of safety,, the loading or
unloading of a m m o n i u m nitrate fertilizer cargoes on or from
vessels be done at facilities or anchorages designated by the
Coast Guard.
(4) because federal authority and state authority are con
stitutionally separate, municipal port authorities should
secure the passage of local ordinances designed to prevent
smoking at waterfront facilities and to set up authorized
smoking areas in the vicinity of such facilities, and
(5) since a virtual "no man's land” exists between Inter
state Commerce Commission and Coast Guard regulations governing
the transportation of dangerous articles by land and water
respectively, it would' be appropriate for the Coast Guard to
recommend certain suggested practices and safeguards as
protection against fires, and procedures for extinguishment of
fire involving ammonium nitrate fertilizer stored in warehouses
on piers, wharves and other waterfront facilities.
The committee believes that safety cannot be attained by
written regulation alone and that the dissemination of informa
tion regarding practices.to attain safety should be a continuing
function on a cooperative basis between all persons concerned.
oOo
124
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS
Tuesday, September 2, 1947
Press Service
No. S-447
Secretary Snyder announced today the appointment of
three tax consultants who will assist the Treasury in carry
ing on its program of analysis and study of the Federal tax
system.
In testifying before the House Committee on Ways and
Means on May 19, Secretary Snyder stated that the Treasury
Department was conducting studies throughout the entire
field of Federal taxation and was considering a number of
possible tax revisions. The technical staff of the Treasury
has under way studies on more than twenty major subjects of
Federal taxation. The results of several of these technical
studies have already been published and others will follow as
they are completed.
The three tax consultants who will advise the Secretary
on tax matters are: Professor William C. Warren, tax attorney
and member of the faculty of the Columbia Law School;
Dr. Carl Shoup, tax economist and member of the faculty of
the School of Business Administration, Columbia University;
and Mr, Harold V. Amberg, Vice President and General Counsel
of the First National Bank of Chicago.
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TREASURY DEPARTMENT
Washington
s
Press Service
No. 3-448
FOR IMMEDIATE RELEASE.
Friday, August 29, 1947«
The Secretary of the Treasury today announced the
subscription and allotment figures with respect to the
current offering of 7/8 percent Treasury Certificates of
Indebtedness of Series H-1948, to be dated September 1,
1947,
Subscriptions and allotments were divided among the
several Federal Reserve Districts and the Treasury as
follows:
Total Subscriptions
Received & Allotted
Federal Reserve
District
$
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Treasury
36, 631,000
1,483,573,000
37.717.000
33.880.000
1 2 ,8 0 7 ,0 0 0
49.906.000
257,764,000
41,470,-000
51.408.000
76.294.000
.
3 0 1 3 1 .0 0 0
95,540,000
1,227,000
TOTAL
-0 O 0
$2,208,348,000
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,Tuesday, September 2, 19U7«_____
Press Service
'
tj0
3 -4 4 9
Secretary of the Treasury Snyder today announced the offering, through the
Federal Reserve Banks, of 1 percent Treasury Notes of Series B-19U8, open on an
exchange basis, par for par, in authorized denominations, to holders of 1 - 1/2
percent Treasury Notes of Series A-19U7, in the amount of $2,707,289,000, or
1-l/U percent Treasury Notes of Series C-19U7, 'in the amount of $1,687,2i|ii,000,
both maturing September 15, 19U7.
The notes now offered will be dated September 15, 19U7, and will bear inter
est from that date at the rate of one percent per annum. As in the case of the
certificates offered by the Treasury during the past year, interest on the note
now offered m i l be paid ?fith the principal at maturity on October 1, 19U8, The
notes will be issued in bearer form only, in denominations of $1,000, $5,000,
$10,000, $100,000" and $1,000,000.
Pursuant to the provisions of the Public Debt Act of 19Ul, as amended,
interest upon the notes navi offered shall not have any exemption, as such, under
the Internal Revenue Code, or laws amendatory or supplementary thereto. The full
provisions relating to taxability are set forth in the official circular, released
today.
Subscriptions will be received at the Federal Reserve Banks and Branches,
and at the Treasury Department, Washington, and should be accompanied by a like
face amount of the maturing notes. Subject to the usual reservations, all sub
scriptions will be allotted in full.
The subs«ription books will close for the receipt of all subscriptions at the
close of business Thursday, September U.
Subscriptions addressed to a Federal Reserve Bank or Branch or to the
Treasury Department, and placed in the mail before midnight September U, will be
considered as having., been entered before the close of the subscription book3.
The -text of the official circular follows:
127
UNITED STATES OF AMERICA
1 PERCENT TREASURY NOTES OF SERIES B-19U8
Dated and bearing interest from September 15, 19U7
Due October 1, 19U8
TREASURY DEPARTMENT*
Office of the Secretary*
YiTashington* September 2, 19U7.
19U7
Department Circular No. 813
Fiscal Service
Bureau of the Public Debt
I.
OFFERING CF NOTES
1 . 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 notes of the United States, designated 1 percent Treasury
Notes of Series B-19U8, in exchange for 1-1/2 percent Treasury Notes of Series
A-19i*7i or 1-l/k percent Treasury Notes of Series C-19U7* both maturing Septem
ber IS, 19U7.
II.
DESCRIPTION OF NOTES
1. The notes vd.ll be dated September 15, 19U7* and will bear interest from
that date at the rate of 1 percent per annum* payable with the principal at matu
rity on October 1* 19U8. They will not be subject to call for redemption prior
to maturity.
2. The income derived from the notes shall be subject to all taxes now or
hereafter imposed under the Internal Revenue Code, or laws amendatory or supple
mentary thereto. The notes 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 notes vdll be acceptable to secure deposits of public moneys.
will not be acceptable in payment of taxes.
They
U. Bearer notes vdll be issued in denominations of $1,000, $5*000* $10,000,
$100,000 and $1,000,000. The notes vdll not be issued in registered form.
5. The notes will be subject to the general regulations of the Treasury
Department, now or hereafter prescribed, governing United States notes.
III.
SUBSCRIPTION AND ALLOTMENT
1. Subscriptions wall 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.
Sii ;
- 22.
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 notes 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 reserva
tions, all subscriptions will be allotted in full. Allotment notices will be sent
out promptly upon allotment.
IV.
PAYMENT
'
«
1 . Payment at par for notes allotted hereunder must be made on or before
September If, 19U7* or on later allotment, and may be made only in Treasury Notes
of Series A-19l4-7> or in Treasury Notes of Series C-19U7j both maturing September
l5j 19k7> which will be accepted at par, and should accompany the subscription.
V.
GENERAL PROVISIONS
1. As fiscal agents of the United States, federal Reserve Banks are author
ized 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 Re
serve Banks of the respective Districts, to issue allotment notices, to receive
payment for notes allotted, to make delivery of notes on full—paid subscriptions
allotted, and they may issue interim receipts pending delivery of the definitive
notes.
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.
,JOHN W. SNYDER,
Secretary of the Treasury.
S
\
129
TREASURY DEPARTMENT
Washington
FOR RELEASE/ MORNING NEWSPAPERS,
Saturday, August 30, 1947.
Press
Service
No. S-450
The Secretary of the Treasury announced last evening that
the tenders for $ 1 ,300,000,000, or thereabouts, of 9 1 -day hills
to be dated September 4 and to mature December 4, 1947, which
were offered August 26, 1947, were opened at the Federal Reserve
Banks on August 29.
The details of this issue are as follows:
Total applied for - $1,682,730,000
Total accepted
- 1,302,030,000 (includes $18,684,000 en
tered on a non-competitive basis and
accepted in full at the average price
shown below)
Average price
- 99.806 Equivalent rate of discount
approx. 0.766$ per annum
Range of accepted competitive bids:
of $100,000)
(Excepting one tender
High
- 99.815 Equivalent rate of discount
how
approx. 0.732$ per annum
- 99.804 Equivalent rate of discount
approx. 0,775$ per annum
(50 percent of the amount bid for at the low price was accepted)
Federal Reserve
District
Total
Applied for
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas'
San Francisco
»
2 , 1 6 0 ,0 0 0
1,577,941,000
2 1 , 6 7 5 ,0 0 0
740.000
675.000
1 ,1 1 0 , 0 0 0
41.316.000
1-,740,000
2.395.000
27.405.000
2.575.000
2.998.000
TOTAL
$1,682,730,000
Total
Accepted
2,160,000
1,221,941,000
11.675.000
740.000
675.000
1 ,1 1 0 , 0 0 0
26.716.000
1.740.000
2.395.000
27.405.000
2.475.000
2.998.000
$1,302,030,000
TREASURY DEPARTMENT
Washington
j?OR RELEASE AFTERNOON NEWSPAPERS
Wednesday,. .September 10, 1947
;
.
Press Service
No, S-451
The Treasury Department today issued a study entitled .
-‘Federal Estate- and Gift Taxes: A Proposal for Integration
and for Correlation with the Income Tax”, prepared Jointly
by the Treasury tax staff and an Advisory Committee on Estate
and Grift Taxation + The members of the Committee are attorneys
who have specialised in Federal tax practice1, and include
George K. Bowden of Chicago, Illinois; Jesse R. Fillman of
New York City; Lawrence E. Green of Boston, Massachusetts;
Dean Erwin N. Griswold of Harvard Law School; and Harry J.
Rudick of New York City. The study marks the completion of
three years of work on this project*
The purpose of the study has been the formulation of an
equitable and workable method of taxing transfers of proper&y
during life and at death, and taxing the Income from such
property. The study contains an examination of the existing
estate, gift, and related income tax laws, an analysis of the
defects in such laws, and a group of recommendations for their
revision. The study emphasizes the fact that it is not con
cerned with specific revenue goals and that the proposed legis
lative changes are recommended Irrespective of their effect
upon the revenue.
The study Is divided into four main parts: (l) an appraisal
of the existing system of taxing transfers; (2) a summary of
the recommended changes in the. system; (3) a general discussion
of the problems involved and the recommendations made; (4) de
tailed explanations and illustrations of the proposed legisla
tive revision.
The major changes in present law proposed in the study
are as follows:
(l) Elimination of the gift and estate taxes in favor of
a single transfer tax. The adoption of a single transfer tax,
the study points out, would end the present overlapping of
gift and estate taxes under which a taxpayer who has paid a
gift tax Is frequently required at his death to pay an estate
tax upon the same property with a credit for the gift tax.
The study proposes that only one transfer tax shall be paid
either during life or at death, depending on when the gift is
completed. The method for computing the transfer tax would
be similar to that now employed in computing the gift tax.
2
.
(2) Establishment of a single'taxable event for purposes
of both the income and transfer tax* The study states that
the adoption of a single taxable.event would correlate the in
come tax with the transfer tax so that if a gift of property
is completed during the transferor’s life, he would thereafter
be freed from further income tax liability on the income from
such property.
In some cases under present law, it is pointed
out, a person may continue to be liable for tax on the income
from property which he has given away and on which he has paid
a gift tax.
(3) Adoption of an apportionment system. The study .
points out that at present, the law contains no provisions for
apportioning the income tax of a grantor on trust Income b e
tween the grantor and the trust. Because a proportionate share
of the burden of such tax should be borne by the Income which
produces the tax, the study recommends that a system of apportiorsnent should be made an integral part of the proposed
revision.
(4) The study points out that the change from existing
rules to those which are proposed will involve a transition
problem, A method is suggested for applying the new rules to
existing transfers in an equitable manner.
The study discusses the relations of the Integrated trans
fer tax and its correlation with the income tax to transfers
terminable by persons other than the transferor, joint tenant,
cies and tenancies by the entirety, powers of appointment, and
life insurance.
Other topics mentioned are the credit for
state taxes, property previously taxed, life estates and the
transfer tax, and effects on estate tax conventions.
Copies of the study have been sent to the Congressional
Committees concerned with tax ra&tters as an aid in their con
sideration of the problems in this area of the tax law.
oOo
13
*rFEDEBAD ESTATE AMD GIFT TAXES’*
The above-named study, released by the Treasury Department
On September 10 , 19^7» is not available for distribution by the
Department,
It may be purchased from the Superintendent of
Documents, U, S. Government Printing Office* Washington 25, D; C*
at 35 cents per copy.
132
TREASURY DEPARTMENT
Washington
Press Service
No. S-452
FOR IMMEDIATE RELEASE
Wednesday, September 3* 19^7
Secretary Snyder announced today the employment of
the firm of McKinsey and Company of New York, Management
Consultants, to make a sufvey and study of the operations
of the Customs Service,
The work to he undertaken by this firm is a continu
ation of the program of Secretary Snyder to make management
studies of all units of the Treasury Department for increased
efficiency and for reducing the costs of operations*
Most
of these studies are made by internal groups within the
Treasury but the Customs study will be made both internally
and by an outside firm.
Secretary Snyder said that it Was his desire and
purpose to see that the Treasury Department in all of its
units operates as efficiently and as economically as any
business organization.
oOo
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Friday, September 5 $ 19^7
.
Press Service
No« S-453
The Secretary of the Treasury, by this public notice,
invites tenders for $1,300,000,000, or thereabouts, of 91 -day
Treasury bills, for cash and in exchange for Treasury bills
maturing September 11, 1947V to be issued «n a discount basis
under competitive and non-competitive bidding as. hereinafter*provided, The bills of this serleSvwill'.be.dated September 11,
194$, and will mature December 11,. ¿947, when the facel.amount
willjbe payable without interest. They will be issued in \ ’
bearer form only, and in denominations of $1,000, $5*000,
$10*000, $100*000,^$500;d00i and $1,000,000 (maturity value)..
; u.
. Tenders will be received at Federal.Reserve Bajnks and
Branches up to the closing hour, twO o ’clock p.ra., Eastern
daylight saving time, Monday, September 8, 1947..r Tenders will
not be received at the Treasury Department, Washington. Each
tender must: be for an even multiple of $1,000, and/in the case
of competitive tenders 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:r
Branches on application therefor.
’
. •;
-V
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 2 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 pub
lic announcement will be made by the’"Secretary of the Treasury,
of the amount and price range of accepted bids. Those ;submitt
ing 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 it* any such respect shall be final. Sub-* f
Ject to these reservations, non-competitive tenders for
$200,000 or less without stated price from any one bidder will
be ..accepted in full at> the siyOrage price (in>three decimals)
of accepted competitive bids. Settlement for accepted tenders
in accordance with the bids must be made or completed at the
Federal Reserve Bank on September 11, 1947, in cash* or other
immediately available funds or in a like, face amount,..of .Treasury
bills maturing September 11, 1947* Cash* and exchange tenders
will receive equal treatment. Cash adjustments will be made for
differences between the par value of.maturing'bills accepted in
,exbhange and the issue price .of the new bills.*
The income derived from Treasury bills, whether Interest
or gain from the sale or other disposition of the bills, shall
hot 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 the Internal Revenue Code, or laws
amendatory or supplementary thereto. The bills shall be sub
ject to estáte, inheritance, gift or other excise taxes,
whether Federal or State, but shall be exempt from all taxation
now or hereafter imposed on the principal of 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)(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, re
deemed 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. 4l8, 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,
TREASURY DEPARTMENT
134
Washington
FOR IMMEDIATE RELEASE
Friday, September 5* 1947
Press Service
Wo, S-454
Secretary of the Treasury Snyder today released further
details with respect to the 2-1/2 percent nonmarketable bonds
for which subscriptions will be invited the latter part of
this month. These bonds are designated 2-1/2 percent Treasury
Bonds, Investment Series A-1965. The minimum denomination
will be $5#000.
The bonds will be dated October 1, 1947, and will mature
October 1, 1965. They may not be called for redemption by the
Secretary of the Treasury prior to maturity, but holders will
be given the optidn of redeeming them on and after April 1,
1948, on the first day of any calendar month, on one month's
notice in writing, at fixed redemption values, as shown on the
attached table.
These bonds will be available for subscription only by
or for account of the following organizations and funds doing
business in the United States, its territories, and possessions:
1,
2.
•3.
4.
5.
6.
7.
8.
Insurance companies
Savings banks
Savings and loan associations and building and
loan associations, and cooperative banks
Pension and retirement funds, including those
of the Federal, State and local governments
Fraternal benefit associations
Endowment funds
Credit unions
Commercial and industrial banks holding savings
deposits or issuing time certificates of deposit
in the names of individuals, and of corporations,
associations, and other organizations not operated
for profit.
Subscriptions from or for account of such investors (except
commercial and industrial banks) will be limited to an amount
(adjusted to the next higher multiple of $5*000) not in excess
of 25 percent of the increase in the amount of net assets 1 /
1/ Net assets, for this purpose, means the amount of total
assets less outstanding indebtedness for borrowed money, and
total assets of insurance companies means the total admitted
assets calculated in accordance with the laws of the States
in which the company is organized or licensed.
135
-
2
between December 31* 1946, and June 30, 1947* as shown by the
financial statements of the subscribers, or $250,000, which
ever is greater. Copies of the financial statements, certi
fied %o by a public accountant or by a responsible officer of
the subscriber, must accompany each subscription for more than
$250,000, or should be furnished to the Federal Reserve Bank
to which the subscription will be presented prior to the
submission of such subscription.
Subscriptions from commercial and Industrial banks
eligible to subscribe hereunder will be limited to an amount
(adjusted to the next higher multiple of $5*000) not, in ex
cess of 25 percent of the increase in the combined amount of
time certificates of deposit (but only those issued in the
names of individuals, and of corporations, associations, and
other organizations not operated for profit), and of savings
deposits, between December 31* 1946, and June 30, 1947* as
certified
an officer of the subscribing bank, or $25,000,
whichever is greater.
In addition to the bonds allotted to the above classes of
subscribers, the Secretary of the Treasury reserves the right
to make an allotment of these bonds to Government investment
accounts.
The Secretary stated that he planned to open the subscrip
tion books on Monday, September 29* but that the full terms of
the offering and the official circular would probably be made
available a week earlier. The subscription books will probably
remain open for a week or ten days, although the Secretary will
reserve the right to close the books as to any or all subscrip
tions at any time without notice. Deferred payment subscrip
tions will not be received. Qualified depositaries will be
permitted to make payment by credit for bonds allotted to
themselves and their customers.
The Secretary reiterated his statement of August 13 that
further offerings of securities suitable primarily for insti
tutional investment needs will be made available whenever the
situation warrants such action.
0O0
136
2-1/2 Percent Treasury Bonds — Investment SeriesA-19 6 5
Table of Hedemption Values and Investment Ylelds
Table showing: (l) How 2-1/2 percent Treasury Bonds, Investment Series
(paying a current return at the
rate of 2-1 / 2 percent per annum on the purchase price, payable semiannually) change in redemption value, by denomi
nations, during successive half-year periods following issue; (2 ) the approximate investment yield on the purchase
price from issue date to the beginning of each half-year period; and (3 ) the approximate investment yield on the
current redemption value from the beginning of each half-year period to maturity. Yields are expressed in terms
of rate percent per annum, compounded semiannually.
Maturity Value.
Issue Price..... .
Period after issue date
first 1 /2 year .......
1/2 to i year.......
1 to 1-1 /2 years .....
1-1 /2 to 2 years.....
:(2 ) Approximate
: investment
: yield on
$5 ,0 0 0 .0 0 $1 0 ,0 0 0 .0 0
: purchase
price
> from issue
: date to
(l) ^Redemption values during each half-year period : beginning
: of each
: half-year
. period
Percent
Not redeemable ....
$4,940.00 $ 9,880.00 $ 9 8 ,8 0 0 .0 0 $ 9 8 8 ,0 0 0 .0 0
.io
4,889.90
9,779.80
97,798.00
977,980.00
.30
4,845.15
9 ,6 9 0 .30
96,
9 0 3 .0 0
969,030.00
.44
$5 ,0 0 0 .0 0
$1 0 ,0 0 0 .0 0
:
$1 0 0 ,0 0 0 .0 0 Î $1 ,0 0 0 ,0 0 0 .0 0
:
$1 0 0 ,0 0 0 .0 0 * $1 ,0 0 0 ,0 0 0 .0 0
2 to 2-1 /2
2-1 /2 to 3
years.....
years.....
3 to 3-1/2 years....
3-1/2 to 4 years.....
4,8 1 0 .1 5
4,779.60
4,754.30
4,733,55
9 ,6 2 0 .3 0
9,559.20
9,508.60
9,467.10
95,592.00
95,086.00
9 4 ,6 7 1 .0 0
962,030.00
955,920.00
950,860.00
946,710.00
4 to 4-1/2 years .....
**-1/2 to 5 years.... .
5 to 5-1/2 years.....
5-1/2 to 6 years.....
4,714.55
4,695.90
4,681.05
4,667.35
9,429.10
9,391.80
9 ,3 6 2 .1 0
9 ,3 3 4 .7 0
94,291.00
93,918.00
9 3 ,6 2 1.00
9 3 ,3 4 7 .0 0
942,910.00
939,180.00
936,210.00
933,470.00
6 to 6-1/2 years ........
6-1/2 to 7 years... .
7 to 7-1/2 years....
7-1/2 to 8 years ........
4,657.00
4,646.80
4,639.55
U,6 3 5 .2 5
9,314.00
9 ,2 9 3 .6 0
9,
2 7 9 .1 0
9,
2 7 0 .5 0
93,i4o .oo
9 2 ,9 3 6 .0 0
9 2 ,7 9 1 .0 0
9 2 ,7 0 5 .0 0
8 to 8-1/2 years.....
8-1/2 to 9 years .....
9 to 9-1/2 years.... .
9-1/2 to 10 years .....
4 ,6 34 .0 0
4,655.85
U,640.90
4,649.15
9 ,2 6 8 .0 0
9,
2 7 1 .7 0
92,680.00
9,281.80
9,298.30
9 2 ,7 1 7 .0 0
10 to 10-1/2 years... ,
10-1/2 to 11 years ......
11 to 11-1/2 yearB ......
11-1/2 to 12 years ......
4,655.40
4,664.40
U,6 7 6 .3 0
4,691.05
12 to 12-1/2 years ......
12-1/2 to 13 years...
13 to 1 3 -1 /2 years...
13-1jd to 2.4 years ......
9 6 ,2 0 3 .0 0
.6 1
.75
.88
1.00
1.10
1.18
:(3) Approximate
: investment
: yield on
* ■ current
s redemption
* value from
: beginning
1 of each
* half-year
< period to
: maturity
Percent
2 50 2.59
2 .6 6
2.73
2.80
2.85
2.91
2.95
1.33
3.00
3.05
3.10
3.15
931,400.00
929,360.00
927,910.00
927,050.00
1.40
1.46
1.52
1.58
3.19
3.24
3.29
3.33
92,818.00
92,983.00
926,800.00
927,170.00
928.Ì80.00
929,830.00
1.64
1.70
1.76
li82
3.37
3.40
3.43.
3.46
9,310.80
9,328.80
9 ,3 5 2 .6 0
9,382.10
93,108.00
93,288.00
93,526.00
93,821.00
931,080.00
932,880.00
935,260.00
938,^10.00
1.87
1 .9 2
1.97
2.02
3.50
3.53
3.55
3.57
4.708.85
4,722.75
4,739.15
4,758.05
9.417,70
9,
4 4 5 .5 0
9,
4 7 8 .3 0
9 ,5 1 6 .1 0
94,177.00
94,455.00
94,783;00
95,161.00
941,770.00
944,550.00
947,830.00
951,610.00
2 .0 7
3.59
14 to 14-1/2 years ......
Ih-1/2 to 15 years ......
15 to 15-1/2 years....
15-1/2 to 16 years...
4,779.60
4,803.85
4,830.85
4,860.75
9,559.20
9 ,6 0 7 .7 0
9 ,6 6 1 .7 0
9 ,7 2 1 .5 0
P5,592.00
96,077.00
96,617.00
97,215.00
955,920.00
960,770.00
966,170.00
972,150.00
2 .3 5
3.70
3.71
3.70
3.68
lo to 16 -1 /2 years ...
1.7 years '...
17 to 17 -1 12 years ......
17-1/2 to 18 years ....
4,884.00
4 ,9 0 9 .50
4 ,9 3 7 .2 5
4 ,9 6 7 .4 0
9 ,7 6 8 .0 0
9,819.00
9 ,8 7 4 .5 0
9,934.80
97,680.00
98,190.00
98,745.00
99,348.00
976,800.00
981,900.00
987,450.00
993,480.00
2.38 •
2.41
2.4U
2.47
3.71
3.75
3.79
3.831
$5 ,0 0 0 .0 0
$10,000.00
$100,000.00
$1,000,000.00
!<^miTY VALUS (ig years
from issue date)....
1 .2 6
2.11
2.15
2.19
2 .2 3
2.27
2.31
2.50
3 .6 2
3.65
3.68
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Tuesday, September 9*1947_____
Press Service
No. S-455
The total assets o f national banks on June 30, 1947*
amounted to more than $83*000,000,000, it was announced today
by Comptroller of the Currency Preston Delano. The returns
from the call covered the 5*018 active national banks in the
United States and possessions. The assets were $1,400,000,000,
or lj percent less than those reported by the 5*013 active
banks on December 31* 1946, the date of the previous call, and
$2,600,000,000, or 3 percent, less than the amount reported by
the 5*018 active banks as of June 29* 1946.
The deposits of national banks on June 30, 1947* were
more than $77*000,000,000, a decrease of $ 1 ,600,000,000, or
2 percent, since December and a decrease of $3*000,000,000*
or nearly 4 percent, since June 1946.
Demand deposits of individuals, partnerships, and corporations of $44,700,000,000 showed a decrease of nearly 2 per
cent since December, but an increase of 5 percent in the year.
Time deposits of individuals, partnerships, and corporations
of $18,500,000,000 were 3 percent more than in December, and
8 percent more than in June 1946. United States Government
deposits were $868,000,000, which was a decrease of 53 percent
since December and a decrease of 89 percent since the previous
June, due principally to the withdrawal of War loan accounts.
Deposits of States and political subdivisions were
$4,500,000,000, which was 10 percent more than in December and
14 percent more than in June a year ago. Fostal savings de
posits were $2 ,800,000, certified and cashiers’ checks were
$1,200,000,000, and deposits of banks $7*400,000,000.
Loans and discounts at the end of June 1947 were
$18,800,000,000, which was an increase of $1,500,000,000, or
nearly 9 percent, since December 1946, and $4,300,000,000, or
nearly 30 percent, since June 1946. Commercial and industrial
loans of $9*000,000,000 were up 6 percent and 48 percent since
the close of the previous December and June, respectively.
Real estate loans of $4,200,000,000 were 19 percent more than
in December and 54 percent more than in June of the previous
year. Consumer loans to individuals of $2,600,000,000 were
nearly 25 percent more than six months previously and 81 per-
cent more than a year ago. The percentage of loans and dis
counts to total deposits on June 30, 1947* was 24.30, in com
parison with 21.90 on December 31* 1946, and 18.01 on June 29*
1946.
138
2
-
Investments by the banks in United States Government
obligations (including $6,000,000 guaranteed obligations) ?n
June 30, 1947 amounted to $39*400,000,000. This was a decrease
of $2,400,000,000 since December 1946, and a decrease of
$8,000,000,000 since June 1946. Other bonds, stocks, and secu
rities held of $4,900,000,000, which included obligations of
States and political subdivisions of $2,900,000,000, showed an
increase of $150,000,000 since December, and an increase of
$400,000,000 since June of last year.
Cash of $1,000,000,000 and reserves with Federal Reserve
Banks of $10,600,000,000, a total of $11,600,000,000, was
$100,000,000 less than In December, but $350,000,000 more
than in June 1946.
The unimpaired capital stock of the banks on June 30,
1947, was $1,771,000,000, including $28,000,000 of preferred
stock. Surplus was $2,330,000,000, undivided profits
$875,000,000, and reserves $333*000,000, or a total of
$3*538,000,000. Total capital accounts of $5*309*000,000
were $150,000,000 more than In December and $435*000,000 more
than In June of the previous year.
0O0
3
Statement showing comoarison of principal items of assets and liabilities of active national banks
* as of June 30 , 1947, December 31 , 1946, and June 29, 1946
fin thousands of dollars)
D e c, 3 1 *
Ju n e 30 *
1947
:
5 ,018
ASSETS
Com m ercial and i n d u s t r i a l l o a n s . . . . . . . $ 9 , 043,562
Lo an s on r e a l e s t a t e . . . . . . . . , . . . * . . . . . 4 , 228,135
Consumer lo a n s to i n d i v i d u a l s . . . . . . . . . 2 , 669 , 11 **
A l l o th e r lo a n s , i n c l u d i n g o v e r d r a ft s . 2 , 269.195
T 0*bell lOdJIS« »••••*•
• » • * • • • * . I S , 810,006
U . S . G-overnment s e c u r i t i e s :
D i r e c t o b l i g a t i o n s . . . . . . . . . . . . . . . . . 39 * ^ 19.227
6 ,3 7 8
O b li g a t i o n s f u l l y g u a r a n te e d ................
T o t a l U . S , s e c u r i t i e s . . . . . • . . • • .3 9 ,4 2 5 ,6 0 5
O b li g a t i o n s o f S t a t e s and p o l i t i c a l
s u b d iv i s io n s . ..................................................... ..... • . 2 ,9 0 0 ,9 8 1
O th e r b o n d s , n o t e s , and d e b e n t u r e s ..• . 1 , 8 9 6 ,733
C o r p o r a te s t o c k s , i n c l u d i n g s t o c k s
o f F e d e r a l R e se rv e b a n k s .. ........................... .
155 ,338
. , 378,657
. 188,663
988,288
.10,623,726
, 783,534
Total securities..... .......... .
44
Total loans and securities...*... 763
Currency and coin»................... .
Reserve with Federal Reserve Banks...
Balances with other banks. ..¿*
...; . 7
Total cash, balances with
other banks, including reserve
balances and cash items in
process of collection........... •19
.
Other assets............... .
Total assets....... ..... .
, 395,548
829,049
.83.Ui3.26O
;
1946
;
Ju n e 29»
1946
: In c r e a s e or ■d e c re a s e : In c r e a s e or d e c r e a s e
: s in c e D ec. 31, 1946 : s in c e Ju n e 2 9 , 1946
: P ercent :
Amount : P e r c e n t
: Amount
.1 0
5 ,0 13
5 ,0 1 8
5
$ 8 , 547,060
3 , 543,788
2 ,1 4 3 ,7 1 4
3 ,0 7 5 ,2 0 5
1 7 ,3 0 9 ,7 6 7
$ 6 , 119,662
2 ,7 4 7 ,9 8 4
1 ,4 7 3 .3 8 9
4 ,1 5 7 ,4 0 6
l 4 , 498 ,4 4 1
$ 496,502
6 84,347
525,400
- 206,010
1 ,5 0 0 ,2 3 9
5 .8 1 -$ 2 ,9 2 3 ,9 0 0
1 ,4 8 0 ,1 5 1
2 4 .5 1 1 , 195.725
- 6 .7 0 -1 ,2 8 8 ,2 1 1
8 .6 7 4 , 311.565
4 l.8 3 5 .7 5 2
7 ,7 8 0
4 1 ,8 4 3 ,5 3 2
4 7 , 465,4 75
7 ,4 o i
4 7 ,4 7 2 ,8 7 6
- 2 , 416,525
- 1 ,4 0 2
-2 ,4 1 7 ,9 2 7
- 5 .7 8 -8 ,0 4 6 ,2 4 8
-1 8 .0 2
-1 ,0 2 3
- 5 .7 8 - 8 ,0 4 7 ,2 7 1
2 ,6 5 9 ,5 9 8
1 .9 8 6 ,3 2 7
2 ,4 5 4 ,2 6 5
1 ,9 4 5 ,9 4 6
241,383
- 89,594
1 4 3 ,6 5 4
. ,1,979
153,359
46, 642, 816”
52, 016,741
66 , 515,182
805,575
-2,264,159
- 763,920
“ 63,952,583
-106,433
1,094,721
- 12,844
10,636,570 10,458,494
8 , 335,876
- 552,342
7 , 397,782
20, 067,167
830,513
84, 850,263
-671,619
- 1,464
35,993,054 -1,437,003
18, 661,851
816,021
1 9 .3 1
9.08
446,716
-49,213
-4*51
1.29
11,684
-4.85 - 7 , 638,084
- 1.19 - 3, 326,519
-9.72 182,713
- .1 2
16 5,232
-6.63 385,752
- 3.35
-.1 8
- 1.69
733,697
13,028
- 2 , 579.794
4 7 .7 8 53*86
8 1 .1 5
- 3 0 .9 9
2 9 .7 4 “
-1 6 .9 5
- 1 3 .8 2
-1 6 .9 5
18.20
- 2.53
8*13
-i 4. 68
- 5 .0 0
22,68
1.58
5.21
3.93
I.60
- 3 .0 0
f—A
CO
CD
h
Comparison of principal items of assets and liabilities of national banks — continued
(in thousands of dollars)
•
.
i
^
June 30»
19^ 7 '
;
Dec. 31»
19*46
LIABILITIES
Deposits of individuals, partner
ships and corporations;
Demand,.......... .......... $*4*4,751,010 $¡+5 , 522,709
1 s . 0 31.75 6
Time...... ................. .- 18 , 556,606
2 , 91+1+.
2,80*4
Postal savings deposits.............
Deposits of U. S. Government;
1 , 556,516
6 11,322
War loan and Series E bond accts..♦
284,025
Other United States Gov’t deposits.
256,727
Deposits of States and political
¡+,125,722
subdivi sions,.................... ¡+, 562,716
8,170,921+
Deposits of banks.
.........*..*•
7,¡+33.963
Other deposits (certified and
1 ,2 2 2 ,0 0 1
1 ,3 5 5 ,2 4 3
cashiers’ checks, etc.)....... .
7 9 ,0 4 9 ,8 3 9
Total deposits...........* .... 7 7 , 397,149
Bills payable, rediscounts and other
27,.S6o
20,047
liabilities for borrowed money....
630,578
6 7 9 ,5 7 1
Other l i a b i l i t i e s . ••••••*..*.
Total liabilities, excluding
• 7 9 ,7 0 0 ,t o
capital accounts............ . 72,10*4,580
CAPITAL ACCOUNTS
Capital stock;
4 1 ,7 8 9
Preferred stock.... ........ .
28 »359
1
,7
1
4 ,8 3 2
Common stock......... ............ 1 ,7 4 2 ,5 1 2
1
,7
5
6 ,6 2 1
. 1 ,7 7 0 ,8 7 1
Total...... .... ....... .
2
,2
7
5 ,8 8 4
Surplus...... ...... .
■ 2 *3 2 9.9 5 1
Undivided profits................
S7I+.79S
785,558
333,o6o
Reserves..................... .....
331,736
Total surplus, profits and
3 ,3 9 3 ,1 7 8
reserves........ ......... ....., 3 ,5 3 7 ,2 0 9
5 ,3 0 2 ,6 2 0
Total capital accounts.........
5 ,1 4 9 ,7 9 9
Total liabilities and capital
8 3 , 4 1 3 , 260.
accounts............... ..
8*4,850.2 6 3
Ratio of loans to total deposits........
‘ 21 . 90? '
NOTE: Minus sign denotes.decrease.
*
June 29»
19*46
•
! Increase or decrease•Increase or decrease
. since Dec. 31, 19*46 Isince June 29» 19*46
; Percent
: Percent; Amount
Amount
$^ 2 , 560,021
17,173*992
2 ,8 9 2
-1 7 7 1 .6 9 9
5 2 4 ,8 5 0
- 1 .7 0
2 .9 1
-*4. 76
$ 2 ,1 9 0 ,9 2 9
1,'382,608
-8 8
5 .1 5
8 .0 5
-3.0*4
7 , 4 31,239
262,175
- 945,194
-2 7 ,2 9 8
- 6 0 .72
~9 . 6 l
- 6 , 819 ,917
- 5 ,4 4 s
-9 1 .7 7
- 2 .0 8
4 , 006,759
4 3 6 ,9 9 4
-7 3 6 ,9 6 1
10 .5 9
- 9 .0 2
5 55,957
-3 8 2 ,8 2 4
-*4.90
-1 3 3 .2 4 2
1,2*40,887
“ s o t I4914,758 - 1 , 652,690
- 9 .8 3
- 2.09
—I S y806
- 3 ,0 9 7 ,6 0 9
- 1 .5 2
- 3 .2 5
7 ,8 1 3
4 8 ,9 9 3
3 2 .9 7
7 .7 7
3 ,4 1 9
7 9 ,2 9 3
13-99
8 1 , 1 1 9 ,4 7 7 - 1 ,5 9 5 .8 8 4
- 2 .0 0
- 3 ,0 1 4 ,8 9 7
- 3 .7 2
-32.1*4
1 .6 l ;
.8 1
2 .3 2
I I .3 6
.*40
- 19.065
1 06,447
8 7 ,3 8 2
-*40/20
. 6 .5 1
229,729
86,039
10.9*4
. *4.26
3 .0 9
347,721
*435,103
10.90
- 1.69
- 2 , 579 ,79 4
- 3 .0 0
7 ,8 1 6 ,7 8 7
2*4, *4*41
600,278
4 7 ,4 2 4
1 , 636,065
1 ,6 8 3 ,4 8 9
2 ,1 0 0 ,2 2 2
788 ,7 5 9
3 0 1,10 7
3 ,1 9 0 ,0 8 8
4 ,8 7 3 ,5 7 7
-l 4o
- 13.4 30
2 7,6 8 0
1*4,250
54,067
8 9 ,2 4 0
1 ,3 2 4
1 *4*4,631
158,881
8 5 ,9 9 3 ,0 5 4 - 1 , 4 37,0 0 3
1 2 .0 1 $
31,953
13.88
1 3 .2 1
5 .19
10.91
10 .6 1
8.93
O
STATUTO HI DEBT LIMITATION
AS OF AUGUST 31. 19A7
---------------- 2---
- ,
.
September 9* 1947
141
Section 21 of the Second Liberty Bond Act, as amended, provides that the face
amount of obligations issued under authority of that Act, and the face amount of
obligations guaranteed as to principal and interest by the United States (except
such guaranteed obligations as may be held by the Secretary of the Treasury), “shall
not exceed in the aggregate $275*000,000,000 outstanding at any one time. For
purposes of this section the current redemption value of any obligation issued on a
discount basis which is redeemable prior to maturity at the option of the holder
shall be considered as its face amount.1'
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
$275*000,000,000
Outstanding August 31, 1947
Obligations issued under Second Liberty Bond Act, as amended
Interest-bearing
Treasury bills........ ..... . $ 15*734*959*000
Certificates of indebtedness
25*025,443*000
Treasury n
o
t
e
s
13»784.104*800 $ 54*544*506,800
Bonds
Treasury........ ........ .
119*322,876,450
Savings (current rederrp* value) 51*663*868,268
Depositary............... •*
328,430* 000
Aimed Forces Leave........
1,864*993*175
Special Funds
Certificates of indebtedness 14*467,100,000
Treasury n
o
t
e
s
.
14*753*369*OOQ
Total interest-bearing.... ......... .
Matured, interest-ceased......... .
Bearing no interest
War savings stamps•••••»•••..
66 ,479*883
Excess profits tax refund bonds
15*821,867
Special notes of the United States:
Internat'l Bank for Eeconst*
and Development series.*..
315*785*000
I n t e m a t 11 Monetary Fund series 1.673» 000* OOQ
Total.
....... .
Guaranteed obligations (not held by Treasury)
Interest-bearing
Debentures: F.H.A. ...........
34*271,336
Demand obligations: C.C.C. ...
38,789 »656
Matured, interest—ceased.
173*180,167,893
29.220,469.000
256,945*143*693
205*611,741
2.071.086,750
259r221,842,184
73,060,992
6.003,550
79*064,542
2g*.3m*.9C^x22|
Grand total outstanding.
.....
Balance face amount of obligations issuable under above authority, •.
Reconcilement with Statement of the Public Debt — August 31* 1947
(Daily Statement of the United States Treasury, September 2, 1947)
Outstanding
Total gross public debt........ .
Guaranteed obligations not owned by the Treasury.....•••••••••*
Total gross public debt and guaranteed obligations........... *
Deduct - other outstanding public debt obligations
not subject to debt limitation
260,097,131,993
79.06A.5A2
260,176,196,535
875.289.809
259.900.906.726
142
TREASURY DEPARTMENT
Washington
FOR IMMEDIATE RELEASE
Monday,September 8, 1947
Press Service
No. s-457
The Bureau of Customs announced today that the sup
plemental quota on cotton having a staple of 1-3/8 inches
or more hut less than 1-11/16 inches prescribed in the
President's Proclamation No. 2734 of June 9, 1947, which
opened oh June 14 and was filled by entries and withdrawals
for consumption filed during the period June 16 to 23, will
reopen at 12 noon, E.S.T., on September 15 for the entry of
approximately 755,000 pounds.
The Bureau of Customs determined from an examination
of the cotton presented for entry under this quota that ap~
proximately 755,000 pounds described as being of the proper
staple length was in facd; over 1-11/16 inches and was there
fore not subject to any import restrictions.
oOo
143
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS
Tuesday,, September 9, ,1947
Press Service
No. S-458
The Secretary of the Treasury announced last evening that
the tenders for $1,300,000,000, or thereabouts, of 91-day
Treasury bills to be dated September* 11 and to mature December 11/
1947, which were offered September 5, 1947, were opened at the
Federal Reserve Banks on September 8,
The details of this Issue are as follows:
Total applied for - ¿1,654,445,000
Total accepted
- 1,302,890,000 (includes $24,686,000 entered
on a non-competitive basis and accepted in
full at the average price shown below)
Average price
-
Equivalent rate of discountt approx.
per annum
Range of accepted competitive bids: (Excepting one tender of
$390,000)
(51 percent of the amount bid for at the low price was accepted)
Federal Reserve
___ District
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. JLouis
Minneapolis
Kansas City
Dallas
San Francisco
Total
Applied Tor
$
885,000
$,544,010,000
11,980,000
3,802,000
$
885,000
1 ,211 ,9 5 0 ,0 0 0
2 ,650,000
50 ,162,000
2.465.000
4.550.000
14.759.000
3.660.000
13.317.000
1,980,000
3,892,000
2 ,115,000
2 ,650,000
40.672.000
2.465.000
4.550.000
14.759.000
3.655.000
13.317.000
$1,654,445,000
$1,302,890,000
2,115,000
TOTAL
Total
Accepted
0O0
TREASURY DEPARTMENT
144
Washington
FOR IMMEDIATE RELEASE
Wednesday, September 10, 1947
Press Service
No. S-459
The Bureau of Customs announced today preliminary figures showing the
quantities of wheat and wheat flour entered, or withdrawn from warehouse, for
consumption under the import quotas established in-the President's proclamations
of May 28, 1941, as modified by the President's proclamation of April 13, 1942,
and April 29, 1943, for the 12 months commencing May 29, 1947, as follows:
Country
of
Origin
Wheat flour, semolina,
crushed or cracked
wheat, and similar
wheat products
Imports
Established:
Imports
Established :
Quota
:]¡Hay 29, 1947,' to
Quota
; M a y 29, 1947,
• to Aug. 30, 1947
Aug. 30, 1947
Whe at
Canada
China
Hungary
Hong Kong
Japan
United Kingdom
Australia
Germany
Syria
New Zealand
Chile
Netherlands
Argentina
Italy
Cuba
France
Greece
Mexico
Panama
Uruguay
Poland and Danzig
Sweden
Yugoslavia
Norway
Canary Islands
Romania
Guatemala
Brazil
Union of Soviet
Socialist Republics
Belgium
795,000
—
-
- (pounds)
(Pounds)
7
3,315,000
—
2 4 ,0 0 0
571,887
10,700
—
-
13,000
-
1 3 ,0 0 0
8 ,0 0 0
-
(Bushels)
(Bushels)
•
-
100
- ^
-
100
100
-
-r
-
100
2 ,0 0 0 '
100
-
—
—
.1 ,0 0 0
.-
-
—
100
—
-
-
—
—
-
1 ,0 0 0
100
100
100
—
-
800,000
7
100
*-o Q q *t
75,000
1 ,0 0 0
5 ,0 0 0
5 ,0 0 0
1 ,0 0 0
1 ,0 0 0
1 ,0 0 0
14,000
2 ,0 0 0
12 ,0 0 0
1 ,0 0 0
1 ,0 0 0
1 ,0 0 0
1 ,0 0 0
1 ,0 0 0
1 ,0 0 0
1 ,0 0 0
1 ,0 0 0
1 ,0 0 0
1 ,0 0 0
—
—
—
4 ,0 0 0,000
-
-
-
-
—
—
532,587
145
TREASURY DEPARTMENT
Washington
FOR IMMEDIATE RELEASE
Wednesday. September 10. 194-7
Press Service
No, S-460
The Bureau of Customs announced today preliminary figures shovdng
the imports for consumption of commodities on which quotas were
prescribed by the Philippine Trade Act of 194-6, from January 1, 194-7,
to August 30, 1947, inclusive, as follows:
Products of
Philippine Islands
Buttons
:
:
Established Quota
Quantity
850,000
: Unit of
: Quantity
Gross
: Imports as of
: August 30,1947
64,551
Cigars
200 ,0 0 0,000
Number
3,137,7®
Coconut oil
443,000 ,0 0 0
Pound
15,931,456
Cordage
6 ,00 0 ,0 0 0
H
1,521,719
Rice
1 ,0 4 0,000
II
50
1 ,904 ,0 0 0,000
11
6 ,50 0,000
It
Sugars, refined )
unrefined)
Tobacco
L
—
—
762,671
146
TREASURY DEPARTMENT
Washington
FOR IMMEDIATE RELEASE, '
Wednesday» September 10. 1947.
Press Service
No« S-461
The Bureau o,f Customs announced today preliminary figures showing the
imports for consumption of"commodities within quota limitations provided for
under trade agreements, from the beginning of' the quota periods to August 30,
1947, 'inclusive, as follows:
|||
(
Commodity
•
: Unit ¡.Imports as
•_____Established Quo t a __ :
of
¡of Aug-, 30,
¡Period and Country Q uantity ¡Quantity:
1947
Whole milk, fresh
or sour
Calendar year
3*000,000
Gallon
4*450
Cream, fresh or sour
Calendar.year
1 , 50 0,000
Gallon
1*159
Fish, fresh or frozen,
filleted, etc., cod,
haddock, hake, pollock,
cusk, and rosefish
Calendar year
23*906,423
Pound
90,000,000
60 , 00 0 ,0 0 0
Pound Quota Filled
Pound ' Quota Filled
White or Irish potatoes:
certified seed
other
12 months from
.Sept. 15, 1946
16,032,127
Cuban filler tobaqco unstaamed or stemmed (other
than cigarette leaf tobacco)
and scrap tobacco
Calendar year
Red cedar shingles
Calendar year
1,380,300
Square
1,237*695
Molasses and sugar sirups
containing soluble non
sugar solids equal to
more than 6% of total
soluble solids
Calendar year
1,500,000
Gallon
473*505
Pound
(■unstemmed
22,000,000 equivalent)
Quota
Filled
TREASURY DEPARTMENT
Washington
.
147
FOR IMMEDIATE RE,LEASE,
'
Wednesdayf September 10, 1947
Press Service
No • £-4-62
The Bureau of Customs announced today that preliminary data on imports of
cotton and cotton waste chargeable to the quotas established by the President’s
proclamation of September 5* 1939? as amended, for the period September 20, 19 46 ,
to August 30, 1947, are as follows:
COTTON (other than linters)
(In pounds)
Country of
Origin
Under l-l/8” other
than rough or harsh
under 3/4”
Imports Sept*
Established 20, 1946 , to
Aug. 30, 1947
Quota
Egypt and the
Anglo-Egyptian
783*816
Sudan.
247,952
Peru.......... ..
British India...•
2,003,483
China........... .
1,370,791
Mexico..........
8,883,259
Brasil............
618,723
Union of Soviet
Socialist Republies.....
475*124
Argentina.........
5*203
Haiti..... ......
237
Ecuador
9,333
Honduras
752
Paraguay.... .
871
Colombia.
.
124
iPaq......... .
.
195
11 1 , 1 1 v :
British East
2 ,2 4 0
Africa........... .
Netherlands East
71,388
Indies......... .
Barbados.... . • •• •
—
Other British.
West Indies 1/... .
2 1 ,3 2 1
Nigeria.......... .
5*377
Other British
West Africa 2/... .
1 6 ,0 0 4
Other French
Africa 3/ ...... . .
689
Algeria and Tunisia
Kuwait........... •
14,516,882
1/
2/
2/
U
5/
1-1/8" or more
but less than
1-11/16” U
Imports Sept*
20 , I946 , to
Aug. 30,. 19.4.7
1 1 ,6 3 0
36 ,41 5 ,1 7 4
247,952
1,167,578
344
8,88 3,259
618,723
9*209,346
-
Imports Sept« 20,
1946, to August
30, 1947
42,998,823
—
—
—
-
31*900
' :•*
-
—
—
—
—
-
-
-
—
<5 -
-
“
-
-
—
-
-
-
—
—
—
-
—
—
237,600
10 ,95 9,915
45 * 656,4 20
43,236,423
25,348
5,081
—
-
Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago«
Other than Gold Coast and Nigeria*
Other than Algeria, Tunisia, and Madagascar.
Established Quota
45*656 * 420 «
Established Quota - 70,000,000.
*See Footnote next page*
Less than 3/4“
harsh or rough 5/
I ! '
S
I
*
- 2 -
148
.
COTTON WASTES
(In pounds)
COTTON CARD STRIPS made from cotton having a staple of less than ,1-3/16 inches
in length, COMBER WASTE, LAP WASTE, SLIVER WASTE, AND ROVING WASTE, WHETHER
OR MOT MANUFACTURED OR OTHERWISE ADVANCED IN VALUE: Provided, however, that
not more than *33 ~l/3 percent of the quotas shall be filled by cotton wastes
other than 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
United Kingdom. •.«•«
Canada.
France..............••
British India......
Netherlands.........
Switzerland........
Belgium........
Japan...
China............. •.
Egypt..............
Cuba.
Germany. ........... .
Italy...............
Totals
•
•
; Established
: TOTAL QUOTA
Total imports
Sept. 20, 1946,
to Aug. 30,1947
. _
4,323,457
239, 690
227,420
69,627
68,240
44,388
69 ,757
—
69,627
—
—
-*
—
38 ,559
341,535
17,322
8 ,1 3 5
6 ,5 4 4
7 6 ,3 2 9
6 ,3 4 7
21,263
5,482,509
Established
33-1/3% of
Total Quota
Imports
Sept. 20,1946 to
Aug. 30, 1947 1/
1,441,152
—
75,807
—
22,747
1 4 ,7 9 6
— ■
— ■
12,853
—
—
—
—:
—
—
25,443
7,088
145,731
1 , 59 9,886
1/
Included in total imports, column 2 .
*
The Presidents proclamation of June 9, 1947, prescribed a supplemental
quota of 23 , 094*000 pounds of cotton having a staple of 1- 3/S inches or
more but less than 1- 11/16 inches in length for the period June 14 to
September 20 , 1947 *
-oOc-
—
—
—
T*
—
—
—
—
—
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS
Friday, September 12, 1947
’ '
Press Service
No. S-463
The Secretary of the Treasury, by this public notice,
invites tenders»for $1,300,000,000, or thereabouts, of 9 1 -day
Treasury bills, for cash and in exchange for Treasury bills
maturing September 18, 1947* to be issued on a discount basis
under competitive and non-competitive bidding as hereinafter
provided. The bills of this series will be dated September 18,
1947, and will mature December 18, 1947# 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
daylight saving time, Monday, September 15, 1947» Tenders
will not be received at the Treasury Department, Washington.
Each tender must be for an even multiple of $1,000, and In
the case of competitive tenders the price offered must be ex
pressed 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 trhst companies and from responsible and recognized
dealers in investment securities. Tenders from others must be
accompanied by payment of 2 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 p u b
lic announcement will be made by the Secretary of the Treasury
of the amount and price range of accepted bids. Those submitt
ing 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.
Su b
ject to these reservations, non-competitive tenders for
f200,000 or less without
stated price from any one bidder will
be accepted In full at the average price (in three decimals)
2
of accepted competitive bids.
Settlement for accepted tenders
in accordance with the bids must be made or completed at the
Federal Reserve Bank on September 18, 1947, in cash or other
immediately available funds or in a like face amount of
Treasury bills maturing September 18, 1947. Cash- and exchange
tenders will receive equal treatment.
Ca s h adjustments will
be made for differences between the par value of maturing bills
accepted in exchange and the issue price of the new bills.
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 f rom the sale or' *
other disposition of Treasury bills shall not have any special
treatment, as such, under, the Internal Revenue Code, or. laws,
amendatory or supplementary thereto. The bills shall besub?,
ject to estate, inheritance, gift or other excise taxesr . . •V , .
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)(1) of the Internal Revenue Code, as
amended by Section 115 of the Revenue Act of 1941, the a m o u n t '
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, con
sideration as capital assets.
Accordingly, the owner of
^
Treasury bills (other than life insurance companies): issued here
under need include in his income tax return only the difference
between the price paid for such bllls> whether bn 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.
oOo
150
TREASURY DEPARTMENT
Washington
FOR IMMEDIATE RELEASE
Friday , September 12, 1947
Press Service
No. S-464
The Secretary of the Treasury today announced the sub
scription and allotment figures with respect to the current offer
ing of 1 percent Treasury Notes of Series B-1948, to be dated
September 15, 1947, open to holders of Treasury Notes of
Series A-1947 and Series C-1947, both maturing September 15,
1947.
Subscriptions and allotments were divided among the
several Federal Reserve Districts and the Treasury as follows:
Federal Reserve
District
Series A-1947
Notes exchanged
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Treasury
$
Total
78 ,760,000
1,309,137,000
72.375.000
96.427.000
37.683.000
87.353.000
340.018.000
.
92 699.000
Total
Exchanges
Series C-1947
Notes exchanged
$
40.298.000
673.095.000
85.071.000
58.874.000
.
39 826.000
41.450.000
240.589.000
.
56 838.000
33,600,000
$
1195058,000
1 ,982 ,232,000
157.446.000
.
155 301.000
77,509,000
128,803,000
580 ,607,000
1,805,000
117 558.000
620,000
149.537.000
127.565.000
183.814.000
110.555.000
313.374.000
2,425,000
$2,577,709,000
$1,510,517,000
$4,088,226,000
93.965.000
104.062.000
67.609.000
.
195 816.000
0 O0
79.752.000
42.946.000
.
151
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS
Monday, September 15, 1947
During the month of
Press Service
No, S-465
ugust, 1947# market transactions
in direct and guaranteed securities of the Government for
Treasury investment and other accounts resulted in net
sales of $308,111,500, Secretary Snyder announced today.
0 O0
152
TREASURY DEPARTMENT
Washington
Press Service
No* S-466
FOR RELEASE, MORNING NEWSPAPERS
Tuesday, September 16, 1 9 4 7 ___
The Secretary of the Treasury announced last evening
that the tenders for $1,300,000,000, or thereabouts, of 9 1 -day
Treasury bills to he dated September lS and to mature December 1.8,
1947, which were Offered September 12, were opened at the Federal
Reserve Banks on September 15.
The details of this issue are as follows:
Total aoplied for - $1,519, ^9^ ,000
/
Total accepted
I;3.02,309,000 (includes $25,267,000 entered
on a non-competitive basis and accepted in
full at the average price shown below)
Average price
- 9 9 * 7 9 7 Equivalent rate of discount approx.
0.802f per annum
Range of accepted
totfling Ì 270,000)
High - 99*812 Equiv* rate of discount approx* 0.744f per annum
Low. - 99.795
M
M
0.81 If, ”
"
(85 percent of the amount bid for at the low price was accepted)
Total,
Applied for
Federal Reserve
District
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St, Louis
Minneapolis
Kansas City
Dallas
San Francisco
TOTAL
$
1 ,36.0,000
1,420,557,000
11 ,965^000
3,660,000
3 ,650,000
Total
Accepted
$
1 ,360,000
' 1 ,233,302,000
765,000
3,660,0003,650,000»'
^,975,000
22.260.000
3.350.000
17.177.000
2.185.000
3.360.000
6.520.000
4.940.000
21 .960.000
$1,519,494,000
$1 ,302,309,000
3.350.000
35.377.000
2
.260.000
3.560.000
.
6 520.000
0 O0
153
TREASURY DEPARTMENT
V/ashing ton
FOR IMMEDIATE RELEASE
September 15* 19^7
Press Service
No/ S-^67
The Bureau of Customs announced today that the quotas
on cotton and cotton waste prescribed in the President's
Proclamation No. 2351 of September 5* 1939# as amended,
will open on September 22, 19^7 9 since September 20 falls
on Saturday.
Arrangements have been made for the simultaneous pr e
sentation of entries of all such cotton and cotton waste
at 12:00 Noon, Eastern Standard Time, or its time equivalent
in other time belts, on September 22.
No priority rights
will exist at the opening of the quotas by reason of the
cotton having been presented for entry during a previous
quota period.
oOo
1 C
X
v.
TREASURY DEPARTMENT
Washington
'■
r - :V
< Vfti
’•
.
■ /'
-
J
\
^
'
>
■
■
f
FOR IMMEDIATE RELEASE
'
Wednesday, Sept. 1 7 / 1947
i
V "*
$ * ? 'r \ h / ' ' "
Press Service
No. S-468
The Bureau of Customs announced today that entries
and withdrawals for consumption of cotton having a staple
length of 1-3/8 inches or more hut less than 1 '-11/16
inches totaling 35*414,228 pouhds wera presented at the
opening of the quota at 12 noon, e.s.t., on September 1§
for the unused balance of 909*000 podnds of the supple
mental quota prescribed in the President's Proclamation
No, 2734 of June 9 f] 1947.
As a result of the great amount of such cotton prey,’
,*i '• '«. .. .;
ly
v ■•
. 1
sented only 2.567 percentum of each fntry may be released
All cotton not permitted release under the above-referred
to quota may be presented for entry at 12 noon e.s.t.,
September 22, 1947* the opening of the regular quota of
45*656,420 pounds of cotton having a staple of 1-1/8
inches or more but less than 1-11/16 prescribed in the
iresident's Proclamation No. 2351 of September 5* 1939*
as amended.
0O 0
-,
,,L. ;
TREASURY DEPARTMENT
• \ ' Washington
'FOR' RELEASE^,.MORNING" NEWSPAPERS,
:F riday, Sep tj&înber 19, 1947
;
J
' t.x ' ~
j•’ ,
‘
,R ÿ » -Service'
No, S-469
* The Secretary.of the Treasury, by this public notice,
invites tenders foi? $1,100,000,000, or thereabouts, of 92-day
Treasury bills,-for cash and in exchange for Treasury tills
maturing September 25, 19^7 ¿.to be is sped on a discount basis
under competitive and non-competitive, bidding'as hereinafter
provided, . The bill’s, of this series will -be dated September 25,
I947, and will mature December 26, 1947, when the face amount
will be payable without interest, They will be issued in .
bearer form only, a n d .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
daylight saving time, Monday, September 2 2 , ;1947. Tenders \
will not be. received at the Treasury Department, Washington.
Each tender must be for an even multiple of $1,000, and in
the case.of .compétitive tenders the price offered must be
expressed on the basis of 100, with not more than three deci
mals, 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 responsibly and recognized
dealers in investment securities.
Tenders from others must be
accompanied by payment of 2 percent of the face amount of
Treasury.bills applied for, unless the tenders are accompanied
,bÿ an e xpiassl^aràhty of payment by an incorporated bank/or
trust company,
jV
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
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.
Subject to these reservations, non-competitive tenders
for $200,000 or less without stated price from any one bidder
will be accepted in full at the average price (in three decimals)
2
of accepted competitive bids. /Settlement for accepted-tenders
in accordance with the bids must he made or completed at the
Federal Reserve Bank on September 25# 19**7# in cash or other
immediately available funds or in a like face amount of ,
Treasury bills maturing September 25# 19**7. Cash and exchange
tenders will receive equal treatment. Cash adjustments will
be made for differences between the par value of maturing bills
accepted in exchange and the issue price of the hew b i l l s •
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 sh.all not have any special
treatment, as such, under the Internal Revenue Code, or laws
amendatory or supplementary thereto. The bills shall be sub
ject to estate# Inheritance# gift or other.excise taxes#
whether .Federal or State, but shall be exempt from all taxa
tion now or hereafter imposed on the principal or interest
thereof by any State, or any of the possessions of the United
State's, or by any local taxing authority. For purposes of
taxatioh the amount of discount at which Treasury bills are
originally sold by the United States shell be considered to
be interest. Under,Sections b2 and 117(a)(l)iof the Internal
Revenue Code# as amended by Section 115 of the 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 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 ibsue 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.
' ...V;
:
.
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 B r a n c h . *
oOo
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Monday, September 22, 19l;7«
Press Service
No. S - ^ 7 0
Secretary of the Treasury Snyder today announced the offering, through the
Federal Reserve Banks, of 1 percent Treasury Certificates of Indebtedness of
Series J-19U 8 , open on an exchange basis, par for par, to holders of Treasury
Certificates of Indebtedness of Series J-19i;7 , in the amount of $ 1 ,1;39 ,5 6 3 ,000,
which will mature on October 1 , 19U 7 . Cash subscriptions will not be received.
The certificates now offered will be dated October 1 , 19hl, and vri.ll bear
interest from that date at the rate of one percent per annum, payable with the
principal at maturity on October 1 , I9I4.8. They will be issued in bearer form
only, in denominations of $1,000, $5,000, $10,000, $100,000 and $1,000,000.
Pursuant to the provisions of the Public Debt Act of 19ul, as amended, in
terest upon the certificates now offered shall not have any exemption, as such,
under the Internal Revenue Code, or laws amendatory or supplementary thereto.
The full provisions relating to taxability are set forth in the official cir
cular released today.
Subscriptions will be received at the Federal Reserve Banks and Branches,
and at the Treasury Department, Washington, and should be accompanied by a like
face amount of the maturing certificates. Subject to the usual reservations,
all subscriptions will be allotted in full.
The subscription books 'will close for the receipt of all subscriptions at
the close of business Wednesday, September 21;.
Subscriptions addressed to a Federal Reserve Bank or Branch or to the
Treasury Department, and placed in the mail before midnight September 21;, will
be considered as having been entered before the close of the subscription books
The text of the official circular follows:
UNITED STATES OF AMERICA
1 PERCENT TREASURY CERTIFICATES OF INDEBTEDNESS OF SERIES J-1 ?U 8
Dated and bearing interest from October 1 , 19k7
19U 7
Department Circular No; 8l6
Due October 1 , 1 ?L 8
TREASURY DEPARTMENT,
Office of the Secretary,
Washington, September 22, 19U7
Fiscal Service
Bureau of the Public Debt
I.
OFFERING OF CERTIFICATES
1 . 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 certificates of indebtedness of the United States, desig
nated 1 percent Treasury Certificates of Indebtedness of Series J-I9I48, in
exchange for Treasury Certificates of Indebtedness of Series J-19U 7,'maturing
October 1 , 19U7 .
II.
DESCRIPTION OF CERTIFICATES
1 * The certificates will be dated October 1 , X9hl> and will bear interest
from that date at the rate of 1 percent per annum, payable with the principal
at maturity on October 1 , 19U8• They will not be subject to call for redemption
prior to maturity.
2. The income derived from the certificates shall be subject to all taxes
now or hereafter imposed under the Internal Revenue Code, or laws amendatory
or supplementary thereto. The certificates shall-be subject to estate, in
heritance, 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 certificates will be acceptable to secure deposits of public moneys.
They
Trill not
be acceptable in payment of taxes.
k * Bearer certificates will be issued in denominations of $1,000, $f>,000,
$10,000, $100,000 and $1,000,000. The certificates will not be issued in regis
tered form.
5>. The certificates m i l be subject to the general regulations of the
Treasury Department, now or hereafter prescribed, governing United States cer
tificates.
III.
SUBSCRIPTION AND ALLOTMENT
1 . Subscriptions Trill be received at the Federal Reserve Banks and Branches
and at the Treasury Department, Washington. Banking institutions generally may
-
2
-
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 pmount of certificates applied
for, and to close the books as to ary 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.
PAYMENT
1. Payment at par for certificates allotted hereunder must be made on or
before October 1, 19U7* or on later allotment, and may be made only in Treasury
Certificates of Indebtedness of Series J-l9h7, maturing October 1, 19h7, which
will be accepted at par, and should accompany the subscription. The full year’s
interest on the certificates surrendered will be paid to the subscriber fallow
ing acceptance of the certificates.
V.
GENERAL PROVISIONS
1. As fiscal agents of the United States, Federal Reserve Banks are author
ized 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 Re
serve Banks of the respective Districts, to issue allotment notices, to receive
payment for certificates allotted, to make delivery of certificates on full-paid
subscriptions allotted, and they may issue interim receipts pending delivery of
the definitive certificates.
2. The Secretary of the Treasury may at any time, or from time to time,
prescribe supplemental or amendatory rules and regulations governing the offer
ing, Y/hich will be communicated promptly to the Federal Reserve Banks.
A. L. M. WIGGINS,
Acting Secretary of the Treasury.
United States Savings Bonds Issued and Redeemed Through August 31* 19^7
(Dollar amounts in millions - rounded and will not necessarily add to totals)
..... 1#— in■»—ffwit1■"
Series A-D:
Series A-1935
Series B-1936
Series C-1937
Series C-1938
Series D-1939
Series D-I9 H0
Series D-19Hl
JLT.«igMfif
f Amount
Issued l/
(matured) .. $
(matured)* ..
m .....
•
.... ...
............
............
Total Series A - D ........
Series E:
Series E-19Hl
Series E-I 9H 2
Series E-I 9 H3
Series E-I 9 HH
Series E-I 9 H 5
Series E-I 9H 6
Series S-I 9 H 7
1 Amount Out- i Percent Redeemed
Amount
of Amount Issued
Redeemed \J . standing 2./ ■
9
26
2H 6
$
3/
663
^37
399
15 H
1,025
211
Sl4
1 ,2 1 0
523
227
87
983
455
4 ,7 2 6
1 ,7 6 1
2 ,9 6 6
i , m
6 ,63 s
1 0 ,S6 l
. 327
2 ,2 9 2
$
255
^63
587
:
96
9 H.3 S
67*97
23.23
20.59
I 8.76
189
509
16 .63
3 7 .2 6
22.31
9,909
4 ,34 s
2.534
1,095
206
1Ü39
4,347
6 ,Hl8
7,418
6,027
3,253
2,328
Total Series S ...........
Us, U 5Ì+
1 7 .5 2 4
30,930
3 6 .1 7
Total Series A - E ........
53 ,180
19,285
33.895
3 6 .2 6
1,530
3.186
3.358
1,337
.2 ,724
2,871
3,290
3.144
2,993
193
H62
HS 7
1*00
232
102
2,891
1 2 .6 1
l H .5 0
l U .5 0
1 0 .SH
7 .3 8
3 .Hi
1,809
H
1,805
.2 2
1 9 .710
1 ,880
1 7 .8 3 0
9 .5 4
............
.... .......
............
............
............
............
(8 months),.
Series F and 0:
Series F and G-I9 H1 »» •• •*
Series F and G-1§H2 ......
Series F and G-I9 H3 ......
Series F and G-I9 H H .....
Series F and G-I9 H 5 ......
Series F and G-I.9 H 6 .....
Series F and G-I 9 H 7 (8 .
months) ................
Total Series F and G- .....
Unclassified sales and redemptions ...............
f,li%
1 2 ,6 9 8
5 ,2 8 0
3 ,8 8 2
3 .6 9 1
2 ,9 1 2
;
3 4 .5 3
Uo .9 1
Hi. 56
3 9 .1 8
25.18
-
8.13
I
lH 2
115
•
1
-2 6
i
2 9 .1 8
Total All Series H/ ......
21 ,3 0 6
7 3 .0 0 6 . ;
51 .699
—
•
___ ___
”l
Includes accrued discount.
Current redemption values.
Includes matured bonds which have not been presented for payment.
Includes Series A and B (matured), and therefore does not agree with totals
under interest-bearing debt on Public Debt Statement.
Office of Riscal Assistant Secretary - Treasury Department.
*4
O
A
160
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Monday, September 22, 1917.
Press Service
No. 5-d! 71
Secretary of the Treasury- Snyder today released the official circular,
governing the offering of a new series of Treasury bonds, designated Invest
ment Series A-I 965 . Regulations governing this new series of bonds are
contained in Treasury Department Circular No, 815, which is also released
today.
The Secretary said that the subscription books, which will open Septem
ber 29 , will probably remain open for a week or ten days, although the right
is reserved to close the books as to any or all subscriptions at any time'
without notice.
Pursuant to the provisions of the Public Debt Act of 1941.» as amended,
interest upon the bonds now offered shall not have any exemption, as such,
under the Internal Revenue Code, or laws amendatory or supplementary thereto.
The full provisions relating to taxability are set forth in the official
circular.
Subscriptions will be received at Federal Reserve Banks and Branches
and at the Treasury Department, Washington, and must be accompanied by pay
ment in full at par and accrued interest, if any, for the amount of bonds
applied for, as well as by financial statements to support subscriptions
in excess of $25 0,000 from eligible subscribers other than commercial and
industrial banks.
The texts of the official circulars governing the offering and contain
ing the regulations follow:
161
UNITED STATES OF AMERICA
2-1/2 PERCENT TREASURY BONDS, INVESTMENT SERIES A-196$
Nontransferable
Dated and bearing interest from October 1, 1947
1947
Due October 1, 196$
TREASURY DEPARTMENT,
Office of the Secretary,
Washington, September 22, 1947-
Department Circular No. 814
Fiscal Service
Bureau of the Public Debt
I.
OFFERING OF BONDS
1. The Secretary of the Treasury, pursuant to the authority of the Second
liberty Bond Act, as amended, invites subscriptions, beginning September 29, 1947,
at par and accrued interest, through the Federal Reserve Banks, for nontransferable bonds of the United States, designated 2-1/2 percent Treasury' Bonds, Invest
ment Series A-I 965 . The amount of the offering is not specifically limited.
2. These bonds will be available for subscription only by or for account of
the following organizations and funds doing business in the United States, its
territories and possessions:
1.
2.
3.
4.
5f
6.
7.
8.
Insurance companies
Savings banks
Savings and loan associations and building and loan
associations, and cooperative banks
Pension and retirement funds, including those of the
Federal, State and local governments
Fraternal benefit associations
Endowment funds
Credit unions
Commercial and industrial banks holding savings deposits or
issuing time certificates of deposit in the names of indi
viduals, and of corporations, associations, and other
organizations not operated for profit*
3« Subscriptions, from or for account of such investors (except commercial and
industrial banks) will be limited to an amount (adjusted to the next higher multi
ple of $ 5 ,000 ) not in excess of 2 $ percent of the increase in the amount of net
assetal/ between December 31 , 1946, and June 30, 1947, as shown by the financial
statements of the subscribers, or $2$0,000, whichever is greater.
Copies of the
financial statements, certified to by a public accountant or by a responsible
officer of the subscriber, must accompany each subscription for more than $250 ,0 0 0 ,
i/ Net assess, for this purpose, means the amount of total assets less outstand
ing indebtedness for borrowed money, and total assets of insurance companies means
no total admitted assets calculated in accordance with the laws of the States in
^nich the company is organized or licensed*
2
or should be furnished to the agency to which the subscription will be presented
•prior to the submission of such subscription.
Subscriptions from commercial and industrial banks eligible to subscribe
‘hereunder will be limited to an amount (adjusted to the next higher multiple of
$5 ,000 ) not in excess of 25 percent of the increase in the' combined amount of time
certificates of deposit (but only those issued in the names of individuals, and of
corporations, associations, and other organizations not operated for profit), and
of savings deposits, between December 31* 1916, and June 30, 1917* as certified by
an officer of the subscribing bank, or $2 5 ,000 , whichever is greater.
5* In addition to the bonds issued to the above classes of subscribers, the
Secretary of the Treasury reserves the right to issue these bonds to Government
investment accounts.
II.
DESCRIPTION AND TERMS OF BONDS
1. The bonds will be dated October 1, 1917* and will bear interest from that
date at the rate of 2-l/2 percent per annum, payable semiannually.
They will
mature and be payable at face value on October 1, 1965. The bonds may not be
called for redemption by the Secretary of the Treasury prior to maturity.
They
may be redeemed prior to maturity, on and after April 1, 1918* at the owner’s
option, on the first day of any calendar month, on one month's notice in writing,
at fixed redemption values, as shown in the table at the end of this circular.
They will not be redeemable at par prior to maturity. Interest will be paid by
check drawn to the order of the registered owner.
Interest will cease at maturity,
or, in case of redemption before maturity, at the end of the interest period next
preceding the date of redemption. A table of redemption values appears on each
bond, and the difference between the face amount of the bond and the redemption
value fixed for any period represents an adjustment (or refund) of interest.
Accordingly, if the owner exercises his option to redeem a bond prior to maturity,
the investment yield will be less than the interest rate on the bond*
2. The income derived from the bonds shall be subject to all taxes now or
hereafter imposed under the Internal Revenue Code, or laws amendatory or supple
mentary thereto. 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 not be acceptable to secure deposits of public moneys.
They will not be entitled to any privilege of conversion. They will not be trans
ferable, and will be payable only to the owner named thereon except as otherwise
provided in the regulations governing Treasury bonds, Investment Series. Accord^gly* they may not be sold, discounted, hypothecated as collateral for a loan,
or pledged as security for the performance of an obligation or for any other
purpose,
The bonds will be issued only in registered form, and in denominations
of ‘.¡>5*000, $10,000, $100,000 and $1,000,000 (maturity values). Partial redempion in ^multiples of the minimum denomination, at current redemption value, will
o permitted. In case of partial redemption the remainder will be reissued in
authorized denominations.
163
- 3 5.
The bonds will be subject to the regulations of the Treasury Department,
now or hereafter prescribed, governing Treasury bonds, Investment Series. The
current regulations are contained in Treasury Department Circular No. 815*
III.
SUBSCRIPTION, ALLOTMENT AND PAYMENT
1 . Subscriptions will be received at the Federal Reserve Banks and Branches
and at the Treasury Department, Washington. Banicing 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 must be accompanied by payment in full for the amount of bonds applied for,
as well as by financial statements where required, unless such statements have
been previously filed by the subscriber. Payment must be made at par and accrued
interest, if any, on or before October 1, 1917, or on later allotment.
One day’s
accrued interest is ¡¡£>.08831 per $1,000. Any qualified depositary will be per
mitted to make payment by credit for bonds 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.
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 reserva
tions, and to the limitations on subscriptions prescribed in Section I of this
circular, all subscriptions will be allotted in full. Allotment notices will be
sent out promptly upon allotment. .
IV.
GENERAL PROVISIONS
1» As fiscal agents of the United States, Federal Reserve Banks are autnor—
ized 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 ariy time, or from time to time, pre
scribe supplemental or amendatory rules and regulations governing the offering,
which will be communicated promptly to the Federal Reserve Banks.
A. L. i:. L O G I N S ,
Acting Secretary of the Treasury.
2-1/2 Percent Treasury Bonds — Investment SeriesAJL965
Table of Redemption Values and Investment Yields
Table showing: (l) How 2-1/2 percent Treasury Bonds, Investment Series A-l$65(paying a current return at the
rate of 2-1 / 2 percent per annum on the purchase price, payable semiannually) change in redemption value, by denomi
nations, during successive half-year periods following issue; (2 ) the approximate. investment yield on the purchase
price from issue date to the beginning of each half-year period; and (3 ) the approximate investment yield on the
current redemption value from the beginning of each half-year period to maturity. Yields are expressed in terms
of rate percent per annum, compounded semiannually.
(2 ) Approximate (3 ) Approximate
investment
investment
yield on
yield on
purchase
current
redemption
price
value from
from issue
beginning
date to
of each
beginning
(l) Redemption values during each half--year period
half-year
of each
period to
half-year
period
maturity
Percent
Percent
Not vAdaemable .....
2 .5 0
.1 0
$4 ,940.00 $ 9,880.00 $ 98,800.00 $ 988,000.00
2.59
2.66
97,798.00 , 977,980.00
9,779.80
4,889.90
O?
.44
969,030.00
4,845.15
96,
903.00
9,
690.30
2.73
96,
203.00
2.80
962,030.00
.6 1
9,
620.30
4,810.15
95,592.00
955,920.00
.75
9,559.20
2.85
4,779.60
.88
950,860.00
95,086.00
9,
508 .60
2.91
4,754.30
1.00
946,710.00
9,467.10 _9U.67 i.OO
2.95
4,733,55
3 .0 0
942,910.00
1.10
94,291.00
9,429.10
4,714.55
1.18
93,918.00
939,180.00
9,391.80
3.05
4,695.90
936,210.00
I.2 6
93,621.00
3.10
4,681.05
9,362.10
93,347.00
933,470.00
9.
3 3 4 .7 0
1 .3 3
3.15
4,667.35
93.i4o.oo
931,400.00
i.4o
9,314.00
4,657.00
3.1?
3.24
929,
360.00
1.46
92,
936.00
9,293.60
4,646.80
92,791.00
927,910.00
9,279.10
1 .5 2
3.29
4,639.55
927,
0 50.00
92,705.00
1.58
9,270.50
3.33
4,635.25
1.64
92,680.00
926,800.00
9,
268.00
4,634.00
3.37
3.40
92,717.00
927,
17 0 .0 0
1.70
9,271.70
4,635.85
928,180.00
92,818.00
1.76
9,281.80
4,64o.90
3.43
92,983.00
lj82
3.46
929,830.00
4,649.15
9,298.30
931,080.00
3.50
93,108.00
9,310.80
1.87
4,655.40
93,288.00
932,880.00
I.9 2
9,328.80
4,664.40
3.53
93,526.00
935,260.00
4,
6 76 .30
9.
3 5 2 .6O
1.97
3.55
93,821*00
938.SlO.OO
2.02
9,382.10
3.57
4,
6 9 1.0 5
94,
1 7 7 .0 0
94l.770.00
2 .0 7
9,417.70
3.59
4,708.85
944,550.00
94,
4 5 5 .0 0
2.11
3 .6 2
9,445.50
4,722.75
94,783.00
947,830.00
9,478.30
2 .I5
3.65
4,739.15
3.68
9 51,
6 10 .0 0
95,
1 6 1 .0 0
9,
5 1 6 .1 0
2 .I9
4,758.05
9,559.20
95,
592.00
955,920.00
4,779.60
3.70
2.23
96,
0 7 7 .0 0
960,770.00
4,803.85
2.27
9,607.70
3.71
966,170.00
96,
6 17 .0 0
3.70
9,661.70
4,830.85
2 .3 I
972,150.00
3.68
97,
2 15 .0 0
9,721.50
2.35
4,860.75
97,680.00
976,800.00
2.38
9,768.00
4,884.00
3.71
2.41
981,900.00
98,190.00
9,819.00
4,
909.50
3.75
2.44
98,745.00
987.450.00
9,874.50
3.79
4,
9 3 7 .2 5
2.47
99,348.00
993,480.00
4,967.40
9,934.80
3.831
Maturity Value........ •• $5 ,000.00 : $1 0 ,000.00 : $1 0 0 ,000.00 : $1 ,000 ,000.00
$5 ,000.00 : $1 0 ,000.00 : $10 0 ,000.00 » $1 ,000 ,000.00
Issue Price... .
Period after issue date
to 1 year....
1to 1-1/2 years ..
1-1/2 to 2 years.. ...
2to 2-1/2 years ..
2-1/2 to 3 years..
3to 3-1/2 years..
3-1/2 to 4 years.. ...
4to 4-1/2 years..
4-1/2 to 5 years .....•••
5to 5-1/2 years..
5-1/2 to 6 years .....
6to 6-1/2 years .....
6-1/2to 7 years .....••a
7to 7-1/2 years .. •••
7-1/2 to 8 years.. ...
8to 8-1/2 years ..
8-1/2 to 9 years .....
9to 9-1/2 years ..
9-1/2to 10 years ....
10 to 10-1/2 years ...
10-1/2to 11 years ...
11 to 11-1/2 yearB ...
11-1/2 to 12 years ...
12 to 12-1/2 years .,.
12-1/2 to 13 years ...
13 to 13 -1 / 2 years ...
13-1/2 to l4 years ......
14 to 14-1/2 years ...
14-1/2 to 15 years ...
15 to 15-1/2 years ...a ••
15 -1 /2 to 16 years ..
....
16 to 16 -1 /2 years ...
16-1/2 to 1 7 years ..,
17 to 1 7 -1/ 2 years ...••*
17 -1/
2to 18 years ......
Maturity valus (ig years
from issue date).,..••t $5,000.00 $10,000.00 $100,000.00 $1,000,000.00
1/2
2 .5 0
TABLE OF CONTENTS
SUBPART A;
Sec.
Sec.
Sec.
Sec.
REGISTRATION AND LIMITATION ON HOLDINGS.
3 2 6 .I.
326.2.
326.3.
326.U.
SUBPART B:
LIMITATION ON TRANSFER AND JUDICIAL PROCEEDINGS.
Sec. 326.3.
Sec. 326.6.
SUBPART C:
Relief in case of loss, etc.
INTEREST
Sec. 326.8.
SUBPART E:
Judicial proceedings (judgment creditors, trustees
in bankruptcy, receivers of insolvents’ estates, etc.)
Evidence necessary
LOST, STOLEN, MUTILATED, DEFACED, OR DESTROYED BONDS.
Sec. 326.7.
SUBPART D:
General
Restrictions
Forms of registration
Not transferable
Interest
GENERAL PAYMENT AND REDEMPTION PROVISIONS.
Sec.. 326.9. Payment, redemption, partial redemption
Sec. 326.10. Form and execution of requests for payment
Sec.. 3 2 6 .ll, Nonreceipt or loss of checks issued in payment
SUBPART F:
GENERAL REISSUE AND DENOMINATIONAL EXCHANGE:
Sec. 326.12.
Sec. 3 2 6 .1 3 .
SUBPART G:
PAYMENT AND REISSUE TO ORGANIZATIONS, FUNDS, AND TRUSTEES.
Sec. 326.1U.
Sec. 326.13.
Sec. 326.16.
Sec. 326.17.
SUBPART H:
Payment to corporations or unincorporated associations
Reissue or payment to successors of corporations; un
incorporated associations, and funds— Dissolution
Payment to trustees
Reissue In the name of a succeeding trustee
PROCEDURAL RULES.
Sec. 326.18.
Sec. 326.19.
SUBPART I:
Reissue
Denominational exchange
Explanation
Correspondence, certificates, notices, and forms
FURTHER PROVISIONS.
Sec. 326.20.
Supplements, amendments, or revisions
166
REGULATIONS GOVERNING TREASURY BONDS, INVESTMENT SERIES
19U7
Department Circular No. 815>
TREASURY DEPARTMENT,
Office of the Secretary,
Washington, September 22, 19h7
Fiscal Service
Bureau of 'the Public Debt
Pursuant to section 1 of the Second Liberty Bond Act, as amended (31 Ü.S.C.
7^2), the following regulations applicable to Treasury Bonds, Investment Series
are promulgated by the Secretary of the Treasury. Regulations governing other
United States Bonds (including United States Savings Bonds) are not applicable
to Treasury Bonds, Investment Series, except as «thermse specifically provided
in this circular.
Sec. 326.1. General.— Treasury Bonds, Investment Series, are issued only in
registered form in substantially the forms of registration set forth in section
326.3. The name and post office address of the owner will be inscribed thereon
at the time of issue. No designation of an attorney, agent, or other representa
tive to request or receive payment on behalf of the owner, nor any restriction on.
the right of such owner to receive payment of the bond, pther than as provided in
these regulations, may be made in the registration or otherwise.
Sec. 326.2.
Restrictions.—
(a) Eligible investors.— The bonds may be issued upon subscription only to
the following organizations and funds doing business in the United States, its
territories and possessions:**■ (1 ) insurance companies, ^ 2 ) savings banks, (3 ) sav
ings and loan associations and building and loan associations and cooperative
banks, (I4.) pension and retirement funds including those of the Federali State, and
local governments, (5 ) fraternal benefit associations, (6 ) endowment funds, (7)
credit unions, (8 ) commercial and industrial banks (but only to sqch extent and
under such conditions as may be provided, specifically in official circulars govern
fng the offering of these securities).
(b) Limitation on amounts.— Subscriptions ml-1 be limited as specified in the
official circulars governing each offering of the bonds.
Sec. 326.3. Forms of registration.-*-Substantially the following forms #f
registration are suggested and should ordinarily be used in requesting the issue'
of the bonds:
1 The Secretary of tho frbääufy fèsslHtéS
ment InveStfttérit MöÖuritSi
right te ìésiih those Bends t 6 Severn-
167
-
2
-
(a ) Organizations (corporations and unincorporated associations).— In the
name of any eligible organization using in each case the full legal name of the
organization^ without mention of any officer or member by name or title, followed
by the words ”an unincorporated association” , or ”a
______ ___________
cor-»
(place of incorporation)
poration” (as the case may be)» The reference to the place of incorporation may
be omitted for organizations incorporated under Federal lav;, for example, national
banks, and when the place of incorporation is part of the organization’s legal
name.
(b) Endowment fund s ,— Where the endowment funds consist in whole or in part
of the general funds of the organization the bonds may be registered in accordance
with the provisions of subsection (a), except that the place of incorporation need
not be designated in the case of schools, colleges, and universities.
The paren
thetical reference ” (
Endowment Fund)” should be inserted in the regis
tration in such case. In the case of an endowment fund held in trust for a
special purpose the provisions of subsection (c) should be followed .- 5
(c)
Private pension and retirement funds, and endowment funds held in trust.—
In the name and title of the trustee, or in the names and title of all the trus
tees if there are more than one (accompanied by an adequate identifying reference
to the trust) except that (1 ) registration in the title alone of the trustees is
permitted, if they are authorized to act only as a board, for example:
’’Board of
Trustees of Western College in trust for the Library Endowment Fund under article,
III of its charter” and (2) all of the trustees need not be named if they'are too
numerous to be designated in the inscription by names and title, for example:
’’John H. Schneider, Second National Bank, et al, trustees under indenture dated
July 2, 19U2, for the Employees’ Retirement Fund of the Acme Manufacturing
Company, a Delaware Corporation” . Wherever the name of a corporation appears in
the registration the place of incorporation should be included.
.(d) Public pension and retirement funds.— In the full title of the fund as
adopted under the applicable State law, city ordnance, or other authority consti
tuting the fund or in a short title for the fund (if desired) as shown, respec
tively, by the following examples: ’’Board of Trustees of the Public School
Retirement System of Missouri”, or ’’Missouri Teachers’ Retirement System” . If a
public officer holds legal title to the fund in trust the following form of regis
tration is preferred ’’Treasurer, Green City, Wisconsin, in trust for the Police
and Firemen’s Pension Fund” .
SUBPART B:
Sec. 326.U.
LIMITATION ON TRANSFER AND JUDICIAL PROCEEDINGS
Not transferable.— The bonds are not transferable, and are
W
' ■ - ■ ..
c Except that where title to the property of an organization is vested in trustees
the bonds may be registered in the title of the trustees or board of trustees (as
the case may be) if desired, for example:
’’Trustees of Jamestown Lodge No. 1000,
Northeastern Fraternal Benefit Association.”
where the endowment fund as such is incorporated, registration may be in the
form prescribed in subsection (a) as in the case of any other corporation.
168
-3
-
payable only to the owners named thereon except in the case of authorized reissue
or as otherwise specifically provided in these regulations. They may not be sold,
discounted, hypothecated as collateral for a Isan, or pledged as security for the
performance of an obligation or for any other purpose.
Sec. 326.S>. Judicial proceedings (judgment creditors, trustees in bankruptcy
receivers of insolvents» estates, etc.).— A claim against an owner of a bond w i l l
be recognized when established by valid judicial proceedings and payment (but not
reissue) will be made upon presentation and surrender of the bond, except as
follows:
(1) No such proceedings will be recognized if they would give effect to
an attempted voluntary transfer inter vivos of the bond.
(2) Those acquiring bonds under this section, with the exception of a
trustee in bankruptcy or a receiver of an insolvent's estate, will be limited
to payment at the redemption value current 30 days after the termination of
the judicial proceedings or'current at the time the bond is surrendered for
redemption, whichever is smaller.
Sec. 326.6. Evidence necessary.— To establish the validity of judicial pro
ceedings there must be submitted a certified copy of a final judgment or decree of
court and of any necessary supplementary proceedings. A trustee in bankruptcy
should submit proof of his authority in the form of a certificate from the referee
showing that he is the duly elected and qualified trustee, together with a cer
tificate from the clerk of the United States District Court of the particular
district, under seal, showing the incumbency of the referee and authenticating his
signature.
SUBPART C;
LOST, STOLEN, MUTILATED, DEFACED, OR DESTROYED BONDS
Sec. 326.7. Relief in case of loss, theft, mutilation, defacement, or de
struction .— Under the provisions of Sec. 8 , 50 Stat. U 6l, as amended (U.S.C. I 9I4O
Ed., title 31* Sec. 738a) and the regulations in Treasury Department Circular No.
300 , as amended, relief either by the issue of a substitute bond or by payment may
be given in case of the loss, theft, mutilation, defacement, or destruction ef a
bond. In any such* case immediate notice of the facts, with a full description of
the bond, should be given to the Treasury Department, Division «f Loans and
Currehcy, Washington 25, D. C.
SUBPART D:
INTEREST
' V
Sec. 326.8. Interest.— Each bond bears interest at a specified rate computed
on the face amount of the bond and payable semi-annually beginning six months from
the date of the bond. Interest vail be paid on each interest payment date by
check drawn to.the order of the registered owner in the same form as the inscrip
tion on the bond. Full advantage of interest at the rate specified may be secured
only if the bond is held to maturity. If the bond is redeemed before maturity,
the difference between the face or full maturity value and the current redemption
value then payable ;ih accord&h&b With the table printed on each bond Will represent
- u -
an adjustment of interest to the rate appropriate for the shorter term, as set
forth in the tahle attached to the circular announcing the offering of the bonds.
(a)
Change of address.— An owner should promptly notify the Treasury Depart
ment, Division of Loans and Currency, Washington 2£, D. C., of^any change in the
address for delivery of interest chocks. The notice should refer to all bonds for
which it is desired that the address be changed and should describe ^each .bond by
date, series, serial number, maturity value, and inscription appearing on the face
of the bond.
(b) Reissue during interest period.— If a bond is reissued between interest
payment dates, interest for the entire period will be paid on the next^interest
payment date to the owner in whoso name the bond is reissued. Ordinarily, if a
bond is received for reissue less than one month prior to an interest payment dace,
reissue cannot be effected until after such interest payment date.
(c)
Termination of interest.— In case of redemption prior to maturity^ in
terest will cease on the last day of the interest period next preceding the date
of redemption. For example, if a bond on which interest is payable on April 1 and
October 1 is redeemed on December 1, 19U3, interest will cease on October 1, 19H3,
and no adjustment will be made on account of the failure to receive interest for
the period from OctoberVI to December 1, 19U3. In case of autnorized reissue, the
interest on the original bond will cease on the last day of the interest period
next preceding the date of reissue and interest on the new bond will begin on the
following day. The same rules shall appl3r in case of partial redemption or partial
reissue with respect to the amount redeemed or reissued.
(d)
Loss or nonreceipt of check.— If an interest check is not received within
a reasonable time after an interest payment date or is lost after receipt, the
Treasury Department, Division of Loans and Currency, Washington 25>, D. C., should
be notified of the facts and should be given information concerning the amount,
number and inscription of the bond, as well as a description of the check, if
possible, in case of loss after the check is received. Appropriate instructions
will then be given.
SUBPART S:
Sec. 326,9.
GENERAL PAYMENT AND REDEMPTION PROVISIONS
Payment, redemption, partial redemption.—
(a)
Payment at maturity.— Pursuant to its terms a bond of the Investment
Series will be paid at or after maturity at its full face or maturity value, but
only following presentation and surrender of the bond for that purpose.
(b)
Redemption before maturity.— A bond may not be called for redemption by
the Secretary of the Treasury prior to its maturity but may be redeemed in whole
or in part on one month's notice in writing on the first day of any month not less
than six months from the issue date at the appropriate redemption value as shown
in the table printed on the bond. The owner's option to redeem may be shown by
a signed request for payment or express written notice and payment will be made as
of the first day of the first month following by at least one full calendar month
170
- 5 -
the date of receipt 'éf notice by the Treasury Department, Division of Loans and
Currency* Washington 25 * D. C., or by a Federal Reserve Bank. If express notice
is given, the bond must be surrendered to the same agency to which the notice is
given not less than 20 days before the effective redemption date.
(c)
Partial redemption.— Partial redemption in multiples of the minimum de
nomination, at current redemption value, will be permitted upon presentation and
surrender of the bond to a Federal Reserve Bank or to the Treasury Department,
Division of Loans and Currency, Washington 25 , D. C., all in accordance with this
Subpart. In any case in which partial redemption is desired the request for pay
ment should be modified by adding to the first sentence thereof the words nto the
extent of $
(maturity value) and reissue of the remainder” . In case of
partial redemption the remainder will be reissued in authorized denominations as
of the original date. Sec. 326 .10 . Form and execution of requests f<
;nt.— IJnlc ss otherwise
authorized in a particular case a request for payment of a bond whether made prior
toj at, or after maturity must be executed on the form appearing on the back of the
bond to be surrendered and ordinarily will not be accepted if executed more than
six months before the date of the receipt of the bond for redemption. The request
must be executed by the registered owner or by such other person as may be en- .
titled to request payment under the provisions of these regulations. The signature
must be affixed in the presence of one of the officers authorized to certify
requests, who should thereafter complete the request by signing over his official
title in the appropriate place and impressing the required seal and giving the
date of execution.
(a) Certifying officers.— The following officers are authorized to certify
requests for payment:
(1 ) At bank s, trust companies and branches.-rA.ny officer of any bank or
trust company incorporated in the United States or its organized territories,
or domestic or foreign branch of such bank or trust company including those
doing business in the organized territories or insular possessions of the
United States and the Canal Zone under Federal charter or organized under
Federal law; any officer of a Federal Reserve Bank or Branch, a Federal Land
Bank and Federal Home Loan Bank. Certification by any of these officers
should be authenticated by a legible impression of the corporate seal of the
bank or trust company.
(2 ) United States officiafs.— Judges, clerks and deputy clerks of United
States courts, including llhited States courts for the organized territories,
insular possessions and the Canal Zone.
(3 ) Treasury Department.— Certain officers of the Treasury Department at
Washington, D. C.
(b) Instructions to certifying officers.— Certifying officers should require
positive identification of persons signing requests for payment and will be held
-
6-
171
fully responsible therefor.
In all cases a certifying officer must affix to the
certification his official signature, title, address, and seal and the date of
execution. If a certifying officer does not possess an official seal that fact
should be made knovm. and attested. A n officer of a bank or trust company who ex
ecutes the request for payment in behalf of the bank or trust company should not
certify his own signature.
It should be certified by another officer.
(c) Presentation and surrender.— After the request for payment has been duly
signed by the owner and certified as above provided, the bond should be presented
and surrendered to a Federal Reserve Bank or to the Treasury Department, Division
of Loans and Currency, Washington 25, D. C., at the risk and expense of the owner,
and for such ovmer’s protection the bonds should be forwarded by registered mail
if not presented in person. Payment will be made by check drawn to the order of
the registered owner or person shown to be entitled to the bond and mailed to the
address given in the request for payment.
Sec. 326.11 Nonreceipt or loss of checks issued in payment.— If a check
issued in payment of a bond surrendered for redemption is not received within a
reasonable time, or in case such check is lost after receipt, notice should be
given to the same agency to which the bond was surrendered for payment with infor
mation concerning the amount, number and inscription of the bond, as well as a
description of the check, if possible, in case of loss after the check is received.
Appropriate instructions will then be given.
SUBPART F:
Sec. 326.12.
GENERAL REISSUE AND DENOMINATIONAL EXCHANGE
Reissue.—
(a) When permitted.— Reissue of a bond in a different name or in a different
form of registration will be made only in the following instances:
(1 ) to correct an error in the original issue upon appropriate request
supported by satisfactory proof of such error;
(2) To show a change in the name of an owner upon the owner’s request
supported by satisfactory proof of the change of naipe;
(3) As otherwise specifically provided in these regulations,
(b) Requests for reissue.— Requests for reissue should be made on appropriate
forms, which may be obtained from any Federal Reserve Bank or from the Treasury
Department, Division of Loans and Currency, Washington 25, D. C., and should be
signed by the persons authorized under these regulations to make such requests.
A request for reissue must be signed in the presence of and be certified by an
officer authorized under Subpart E to certify requests for payment.
(c) Date of bonds on reissue.— The new bonds will be of the same series, will
bear the same date, and will have the same rights and privileges as the bonds
surrendered.
¿.1 -
Sec. 326.13. De nominai ional exchange »— Exchange as b 0 tween authorized denota
inations will not be permitted except in cases of partial redemption or authorized reissue.
SUBPART G:
PAYMENT AND REISSUE TO ORGANIZATIONS> FUNDS, AND TRUSTEES
Sec. 326.1U. Payment to corporations or unincorporated associations.— A bond
registered in the name of a corporation or an unincorporated association '»/ill be
paid to such corporation or unincorporated association upon request for payment on
its behalf by a duly authorized officer thereof. The signature to the request
should be in the form, for example, "Horizon Life Insurance Company, by William
A. Smith, President", or "Weatherton Fraternal Benefit Association by John Jones,
Treasurer". A request for payment so signed and duly certified will ordinarily be
accepted without further proof of the officer's authority.
See. 326.1^. Reissue or payment to successors of corporations, unincorporated
associations and funds.--Dissolution.—
1
(a) Reissue or payment to successors.— A bond registered in the name of a
corporation or an unincorporated association or fund which has been succeeded by
another corporation or unincorporated association or fund by operation of lav/ or
otherwise, as the result of merger, consolidation, reincorporation, conversion,
reorganization, or in any manner whereby the business or activities of the original
organization or fund are continued without substantial change, will be paid to, or
reissued in the name of, the successor upon appropriate request on its behalf and
satisfactory proof of lawful successorship.
(b)
Dissolution.— -If the organization or fund has been dissolved before re
demption of the bonds, the persons acquiring title to the assets of the organiza
tion or fund including the bonds will be entitled only to the redemption value of
the bonds current 30 days after the date of dissolution, or at the time the bonds
are presented and surrendered for redemption, whichever is smaller.
In most cases
it will be simpler for the organization or fund to present the bonds for redemp
tion prior to dissolution.
Sec. 326.16. Payment to trustees.— A bond; registered in the name of a trustee,
or otherwise belonging to a trustee in his capacity as such, will be paid to the
rustee upon his request. A request for payment before maturity must be signed by
all acting trustees unless, by express statute or decree of court or by the terms
of the instrument under which they are acting, some one or more of them may
properly execute the request. A request for payment at maturity signed by any «ne
or more acting trustees will be accepted, but payment will be made to all. If the
bond is registered in the names of trustees who are still acting, no further evi
dence of authority will be required.
In other cases the request for payment must
be supported by evidence as specified below:
Trustees— by title only.— If tlie bond is registered in the titles with
out the names of the trustees, satisfactory proof of their incumbency must be
urmshed, except in the case of public officers.
173
-
8
-
(b) Succeeding trustees.— -If the trustees in whose names the bonds are regis
tered have been succeeded by other trustees, satisfactory proof of successorship
must be furnished.
(c) Boards, public bodies, etc.— If the trustees consist of a board or public
body, or are otherwise empowered to act as a unit, a request for payment before
maturity must be signed in the name of the board or other body by an authorized
officer or agent 'thereof or by all members of the board or other body. A request
executed by an officer or agent must be supported by a duly certified copy of a
resolution of the board or other body authorizing such action or by a duly certi
fied copy of the trust instrument or excerpt therefrom showing the authority for
such action, except that in the case of a public board or other public body a
request signed in its name by an authorized officer thereof and duly certified will
ordinarily be accepted without further proof of his authority. A request signed
by all members of a private board or other private body acting as trustee must be
supported by a duly executed certificate of incumbency.
(d)
Corporate trustees.— If a public or private corporation or a political
such as a State or county, is trustee, a request for payment must be signed
in the name of the corporation or other body as trustee by an authorized officer
thereof . A request for payment so signed and duly certified vd.ll ordinarily be
accepted without further proof of the officer’s authority.
body,
Sec. 326.17. Reissue in the name of a succeeding trustee.— If a trustee in
whose name a bond is registered has been succeeded by another, the bond will be
reissued in the name of the succeeding trustee upon appropriate request and satis
factory proof of successorship.
SUBPART H:
PROCEDURAL RULES
Sec. 326,18, Explanation.— Rules of a procedural nature pertaining to payment
or reissue and relief on account of loss, theft, etc., have been set forth in the
foregoing subparts with the substantive rules to which they apply. Other procedural
rules are set forth in the follov/ing sections.
Sec. 326 ,19 . Correspondence, certificates, notices, and forms.— The Treasury
Department, Division of Loans and Currency, Washington 25 , D. C., is charged with
all matters concerning Treasury Bonds, Investment Series. In the sane connection
the Federal Reserve Banks, as Fiscal Agents of the United States, and their
Branches, are utilized. Correspondence regarding transactions within the scope of
these regulations, certificates of ciourt and other certificates required hereunder,
notices of intention to redeem and the like (vrhich must be in writing) and any
other appropriate forms or documents should be addressed accordingly .(and where
necessary the bonds should be presented and surrendered therewith), except that any
specific instructions given elsewhere in this circular for addressing particular
transactions should be observed. Notices or documents not so submitted, or on
file in the Treasury Department elsewhere than with the Division of Loans and
Currency, Washington 2£, D. C., will not be recégnized, Appropriate forms for
use in connection with transactions may be obtained from any Federal Reserve Bank
or from the Treasury Department, Division of Loans and Currency, VJashington 2 $ ,
1
174
- 9 -
(a) Additional proof— Bond of indemnity.— The Secretary of the Treasury in
any case arising under.these regulations may require such additional proof as he
,«dy Consider necessary or advisable in the premises; and may require a bond of in
demnity with satisfactory sureties, or an agreement of indemnity, in any case
where he may consider such a bond or agreement necessary for the protection of the
interests of the United States.
(b) Federal»Reserve Banks.— Usually transactions will be expedited by the use
of the Federal Reserve Banks^-, as Fiscal Agents of the United States, and their
Branches.
SUBPART I:
FURTHER PROVISIONS
Sec. 326.20.
Supplements, amendments, or revisions.--The Secretary of the
Treasury may at any time or from time to tine prescribe additional, supplemental,
amendatory, or revised rules and regulations governing Treasury Bonds, Investment
Series. *
A. L. M. WIGGINS,
Acting Secretary of the Treasury.
The Federal Reserve Banks are located at Boston, New York, Philadelphia, Cleve
land, Richmond, Atlanta, Chicago, St. Louis, Minneapolis, Kansas City, Dallas, and
San Francisco.
175
TREASURY DEPARTMENT
Washington
FOR IMMEDIATE RELEASE
Friday, September 19» 1947
Press Service
No, S-472
The Treasury Department announced today the employment
of Ebasco Services, Inc,, management consultants of 2 Rector
Street, New York, N.Y., to make a study of the policies and
operations of the United States Coast Guard,
The Second Supplemental Appropriation Act of the Eightieth
Congress provided authority and funds for the survey and speci
fied that the firm to conduct it should be chosen by the
Secretary of the Treasury and the Chairmen of the House and
Senate Appropriations Committees,
The announcement of the
selection of the Ebasco company follows consultation and agree
ment among these officials, after careful analysis of a number
of bids and proposals.
The survey will commence on Monday, September 22, 19^7,
according to the contract signed today.
It is the intention
of the Treasury Department that the study be completed as
expeditiously as possible in order that the Appropriations
Committees of the Senate and House may have the benefit of
its conclusions in considering the Coast Guard appropriation
for the fiscal year 19 ^9 *
oOo
176
TREASURY DEPARTMENT
WASHINGTON
FOR RELEASE, MORNING NEWSPAPERS
Tuesday, September 23, 1947___
Press Service
No. S-473
The Secretary of the Treasury announced last evening
that the tenders for $1 ,100 ,000,000, or thereabouts, of 9 ^-day
Treasury bills to be dated September 25, 19^7, and to mature
December 26, 1947, which were offered September 19, 1947, were
opened at the Federal Reserve Banks on September 22.
The details of this issue are as follows:
Total applied for - $1,364,389,000
Total accepted
- 1,102,179,000 (includes $31,127,000 entered
on a non-competitive basis and accepted in
full at the average price shown below)
Average price
Range of accepted competitive bids: (Except for three bids
totaling $500 ,000)
High - 99»815 Equiv. rate of discount approx. 0 .724$ per annum
Low - 99.790
M
M
”
"
"
0.822$ "
n
(58 percent of the amount bid for at the low price was accepted)
Federal Reserve
District
Bos ton
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
TOTAL
Total
Applied for
*
9,642,000
v1 ,232 ,43.7,000
,
,
11 850,000
1 .690.000
10 025,000
1 .815.000
46.205.000
2 ,790,000
4.880.000
6
.815.000
Total
Accepted
*
*
6,642,000
nrsi-r
998 ,027,000
1 1 .508.000
1 .690.000
7 .025.000
1 .715.000
2 7 .365.000
2 .790.000
rs
^ , 5 9 7 ,0 0 0
6 .815.000
1 2 .520.000
1 2 .655.000
2 3 .585.000
21.485.000
$1,364,389,000
$1 ,10 2 ,179,000
0O0
177
TREASURY DEPARTMENT
Washington
FOR IMMEDIATE RELEASE
Wednesday, September 24, 1947
Press Service
No. S-474
The Bureau of Customs announced today that the global
quota of 45,656,420 pounds of cotton having a staple of
1 -1/8 inches or more but less than 1 -1 1 / 1 6 inches was more
than filled by entries and withdrawals for consumption
filed at the opening of the quotas, 12:00 Noon, Eastern
Standard Time, on September 22, 1947. 48,310*890 pounds
of such cotton, of which approximately 95 per centum was
of Egyptian origin, was offered for entry. The Bureau
authorized collectors of customs in the ports where entry
was made to release 94.5054 per centum of each entry to
the importer of record.
The quotas of 8,883,259 pounds for Mexico and 618,723
pounds for Brazil of cotton having a staple of less than
1-1/8 inches (other than rough or harsh cotton of less
than 3/4 inch and other than linters) were also over
subscribed. 47,858,368 pounds of such cotton from Mexico
were presented for entry, thus permitting the Bureau to
authorize the release of but 18.5615 per centum of each
such entry. Brazilian cotton in the amount of 992,396
pounds was presented and the Bureau authorized the re
lease of 62.3463 per centum of each entry.
Imports for consumption of the kinds of cotton waste
subject to the quotas prescribed in the President's Pro
clamation No. 2351 of September 5, 1939, as amended, from
Russia exceeded slightly the amount permitted entry from
that country and approximately 99 per centum of eaph entry
of such cotton wastes presented was authorized release.
0O0
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS
Friday, September 26, 1947
Press Service
No. S-475
V ihe. Secretary of the Treasury, fey thl s public notice,;
;
invites tenders for $1 /300 ,000,000, or thereabout9 , of 92 -day
Treasury bills,, fpr caàh and-in eicdhange ;for Treasury bills r
maturing ‘bet.obër ¿,/l9 4 7 > to be •issued pn a d'iscouht basis
under competitive- ë&d, lion-competitfve.bidding*.as hereinafter
provided♦ Thé bills! o f this serie>, UÏ11 be dated: October 2/
1947, and: Will mâture January 2, 1948, When thé face amount
will bp payable without interest,. T^ey will, be Issued in
bearer fd m only, arid in denomlnatibps .$f .$.1 ,000, .$5 -,'0.
0 0 ,‘
$1 0 ,000, $10 0 ,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.in., Eastern . ;
Standard Time, Monday, September 29, 1947. Tenders will not
be received at thé. Treasury Department,.Washington. Each
tender must be for an even multiple of $1 ,000, and in the
case of competitive tenders the price offered must be expressed
on the basis of 100 , with not. more than three decimals./ e.gv,
99.925. Fractions may not be used. It is urged that tenders
be made on thé printed forms and forwarded in the special
envelopes which will be supplied by Federal Reserve Batiks or
Branches on application therefor.
/
Tenders will’Ape 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 2 percent of the face amount of
Treasury bills/appïiéd for, unless the tenders are accompanied
by an express guaranty of payment by àn incorporated bank or
trust company.
, ^
.
' Immediately after the closing hour^ tenders will be
;
opened at the Federal Reserve Banks'and Branches, fo11owing _
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 acdeptanceor
rejection thereof. The Secretary Of.the Treasury expressly j
reserves the right to accept or reject any of all tenders, in
whole or in part, and his action in any such respect shall be'
final. Subject to these reservations, non-competitive tenders
for $200,000 or less without stated price from any one bidder
will be accepted in full at the average price (in three decimals)
of accepted competitive bids. Settlement for accepted*tenders
in accordance with the bids must be made or completed at the
Federal Reserve Bank on October 2, 1947* in cash or other im
mediately available funds or in a like face amount of Treasury
bills maturing October 2, 1947* Cash and exchange tenders
will receive equal treatment* Cash adjustments Will be made
for differences between thé par value ;of maturlngr!bills Jaccepted in exchahge and the issue price of the new‘
/bills.
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 the Internal Revenue Code, or laws
amendatory or supplementary thereto. The bills shall be sub
ject to estate, inheritance, gift or other excise taxes,
whether Federal or State,, but shall be exempt from all tax
ation now or hereafter imposed on thé. 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 shâll be considered to
be- interest. Under Sections 42 and 117;
(a){l) of the Internal
Revenue Code, as amended by Section 115! bf 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 thé 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. 4l8, 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*.
179
TREASURY DEPARTMENT
COMPTROLLER OP THE CURRENTY
Washington
FOR RELEASE, MORNING NEWSPAPERS
Monday, September 29* 1947____
Press Service
No. S-476
Comptroller of the Currency Preston Delano announced today
that the national banks in the United States and possessions
reported net operating earnings of $3 1 9 *182,000 for the six months
ended June 30, 1947, an increase of $1,708,000 over the first half
of 1946.
Adding to the net operating earnings profits on securities
sold of -$3 5 *907*000 and recoveries on loans and investments, etc.,
previously charged off of $39 *328 ,000, and deducting therefrom
losses and charge-offs of $53*436,000 and taxes on net income of
$99 *283 ,000, the net profits before dividends for the six months
ended June 30, 1947 amounted to $241,698,000, which at an annual
rate amounts to 9.11 percent of capital funds. This figure of
net profits before dividends was $38 *895*000 less than the amount
reported for the six months ended June 30, 1946,
The principal items of operating earnings in the first half
of 1947 were $312,727,000 from interest on U.S. Government obli
gations and $5 1 ,848,000 interest and dividends on other securities,
a total of $364,575,000, which was a decrease of $48,278,000 com
pared with the corresponding period in 1946; $328 ,829*000 from
interest and discount on loans, an increase of $10 2 ,6 1 9 *000, and
$40 ,203,000 from service charges on deposit accounts, an increase
of $7,193,000. The principal operating expenses were $245*417,000
for salaries and wages of officers and employees and fees paid to
directors, an increase of $36 ,962,000 over the first half of 1946,
and $80 ,583,000 expended in the form of interest on time and sav
ings deposits, an increase of $10,592,000. Gross earnings of
$836,128,000 were reported for the six month period of 1947* This
represents an increase of $7 1 *913*000 over the gross earnings for
the first six months in 1946. Operating expenses, excluding
taxes on net income, were $516,9^6,000 as against $446,741,000
for the first half of 1946.
Cash dividends declared on common and preferred stock
totaled $86,640,000 in comparison with $7 8 ,108,000 in the first
half of 1946. The annual rate of cash dividends was 3.26 per
cent of capital funds. The cash dividends to stockholders in
the first half of 1947 were 35.85 percent of the net profits
available. The remaining 64.15 percent of net profits, or
$155 *058 ,000, was retained by the banks in their capital ac
counts.
On June 30, 1947, there were 5*018 national banks in oper
ation, the same as on June 30* 1946,
180
-
2
-
• EARNINGS, EXPENSES, AND DIVIDENDS OF NATIONAL BANKS IN THE SIX
MONTH PERIODS ENDED JUNE 30, 19/47 AND JUNE 30, 1946, AND THE
YEAR ENDED DECEMBER 31, 1946
(Amounts in thousands of dollars)
:
:
:
6 months ended
: June 30,
June 30,
:
1946
1947
Capital stock, par value: 1/
Preferred...........
...
428,359
C o m m o n • • • • • • •
•••••••%► • • •... 1,742.637
TOTAL CAPITAL STOCK.................. ... 1,770,996
... 5,308,680
Capital funds l/................ ....... .
Earnings from current operations:
Interest and dividends:
On U.S. Government obligations........ . ...
...
On other securities............ .
Interest and discount on loans........... ...
Service charges on deposit accounts....... ...
Other service charges, commissions, fees,
and collection and exchange charges..... ...
Trust department
Other current earnings..... .............. ...
*
TOTAL EARNINGS FROM CURRENT
OPERATIONS. *................ .
Current operating expenses:'
Salaries and wages:
Officers........................... .
Employees other than officers.......... ...
Fees paid to directors and members of
executive, discount, and advisory
committees..•••••••.... ................
Interest on time deposits (including
savings deposits
...
Taxes other than on net income
Recurring depreciation on banking house,
furniture -and fixtures...... . *......... ...
Other current operating expenses.......... ...
TOTAL CURRENT OPERATING EXPENSES.’..;.
NET EARNINGS FROM CURRENT OPERATIONS........ ...
I
312,727
51,848
328,829
¥47,424
1.636,253
1,683,677
4,873,577
361,602
5 1 ,2 5 1
: Year ended
: Dec. 31,
1946
:
441,789
1,714,982
1,756,771
5,149,799
701,612
102,614 .
507,212
69,387
4 0 ,2 0 3
226,210
33,010
26,092
26,075
2 5 ,5 5 2
2 3 ,3 3 6
50,877
42,731
52,766
50,399
89.524
836,128
764,215
1,573,514
83,983
157,117
74,546
130, 071
158,789
284,834
4,317
3,838
8,206
80, 583
28,861-
69,991
26,633
144,514
10,N871
.151,214
516,946
319,182
10,821
130,841
446,741
317,474
54,319
23,265
277,645
951,572
621,942
181
EARNINGS, EXPENSES, AND DIVIDENDS O F NATIONAL B a NKS IN THE SIX
MONTH PERIODS ENDED JUKE 30, 1947 iND JUNE 30, 1946* AND THE
YEAR ENDED DECEMBER 31* 1946 - Continued
(Amounts in thousands of dollars)
:
6 months e n d e d ____ : Year ended
: June 30,
: dune 30*
-*
Dec« 31*
:
1947
:' 1946
:
1946
Recoveries:
On securities,•
.......... ...........
On loans«........ ......................
All other,.... ............... ............
TOTAL RECOVERIES........ ....... .....
Profits on securities sold or redeemed.... .
TOTAL RECOVERIES AND PROFITS ON
SECURITIES SOLD OR REDEEMED.......
Losses and charge-offs:
On securities.
....... ....... ..
On loans«. • .......... ......................
All other..... ................. «..... .....
TOTAL LOSSES AND CHARGE-OFFS........ .
PRO PITS BEFORE INCOME TAXES«............ .....
Taxes on net income:
Federal....... ....... ...... ........ ......
State......... .............. .............
TOTAL TAXES ON NET INCOME...........
NET PROFITS BEFORE DIVIDENDS............ .....
$13,001
14,548
X-L, (/V
39,328
35,907
$17,530
23,865
-UnJJUO
55*703
72,967
$33,816
41,313
,uiu
104*139
110,518
75.235
128,670________ 214.657
26,146
15,797
11,493
35,302
74,620
9,890
44,520
18,356________ 36,569
155*709
63,548
680,890
382,596
5 3 ,4 3 6
340,981
93,772
5,511
99,283
241, ¿98
95,829
6,174
102,003
174*454
11,538
185,992
280,593
49 4,898
Dividends declared:
On preferred stock.... .................. .
On common stock:
Cash dividends .........................
Stock dividends,.... ........ .
TOTAL DIVIDENDS DECLARED............
734
1*374
2,427
85,906
18,821
105*461
76,734
19,305
97*413
167,7 p2
28,165
198,294
Number of banks 1/ ..................... ----
5,018
5,018
5*013 .
Percent
9.11
Percent
11.51
Percent
9.61
Annual
To
Annual
To
rate of
capital
rate of
capital
net profits:
.....
funds 1/ ........ .
cash dividends:
funds l/................. ....
1/ At end of period.
oOo
3.26
3.21
3.30
op
TREASURY DEPARTMENT
Washington
Press Service
No. -47?
FOR IMMEDIATE RELEASE
Friday, September 26, 1947
The Bureau of Customs announced today that due to some
adjustments »in the data on the amounts of cotton presented
for entry at the opening of the quotas, Press Service No.
3.474 of September 24, 1947, has been amended to read as
follows:
The global quota of 45,656,420 pounds of cotton having
a staple of 1 -1/8 inches or more but less than 1-11/16 in
inches was more than filled by entries and withdrawals for
consumption filed at the opening of the quotas>12:00 Noon,
Eastern Standard Time, on September 22, 1947. 4«,977,io0
pounds of such cotton, of which approximately 96 per centum
was of Egyptian origin, were offered for entry. The Bureau
authorized collectors of customs In the ports where entry
was made to release 93*2198 per centum of each entry to the
importer of record.
The quotas of 8,883,259 pounds for Mexico and 618,723
pounds for Brazil of cotton having a staple of less than
1 -1/8 inches (other than rough or harsh cotton of less than
3/4 inch and other than linters) were also oversubscribed.
51,645,356 pounds of such cotton from Mexico were presented
for entry at the opening moment of the quota, thus permitt
ing the Bureau to authorize the release of but 17*2005 P®-£
centum of each such entry. Brazilian cotton ih the amount
of 992,396 pounds was presented and the Bureau authorized
the release of 62.3463 per centum of each entry.
Imports for consumption of the kinds of cotton waste
subject to the quotas prescribed in the President’s Procla
mation No. 2351 of September 5, 1939, as amended, from
British India exceeded slightly the amount permitted entry
from that country and approximately 99 par centum of each
entry of such cotton wastes presented was authorized
released.
0O0
183
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS
Tuesday, September 30* 1947
Press Service
No. S-478
The Secretary of the Treasury announced last evening that
the tenders for $1,300,000,000, or thereabouts, of 92-day Treasury
bills to he dated October 2, 1947, and to mature January 2, 1948,
which were offered on September 2o, 1947, were opened at the
Federal Reserve Banks on September 29.
The details of this issue are as follows:
Total applied for - $1,617*358,000
Total accepted
- 1,301,548,000 (includes $24,892,000 entered
on a non-competitive basis and accepted in
full at the average price shown below)
Average price - 99.791/ Equiv. rate of disc, approx, 0.817$ per annum
Range of accepted competitiwebbids (excepting two tenders totaling
$150 ,000 )
High - 99.815 Equiv. rate of discount approx. 0.724$ par annum
Low - 99*788
”
"
"
"
"
0.830$ M
"
(75 percent of the amount bid for at the low price was accepted)
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Total
Accepted
Total
Applied for
Federal Reserve
i District
550,000
1 ,508 ,869,000
12 ,855,000
$
3.385.000
3 .6 2 5 .0 0 0
1 , 0 2 5 ,0 0 0
42.616.000
1,820,000
6,855,000
$
550,000
1,229,594,000
2 ,230,000
3 ,360,000
3 ,625,000
1 , 0 2 5 ,0 0 0
19 ,366,000
1 ,820,000
6 ,805,000
22 992.000
8.247.000
4.434.000
20,492,000
$1,617,358,000
$1,301,548,000
8.247.000
4.519.000
.
0O0
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS
Tuesday* September 30» 1Q47
Press Service
S-479
The Treasury Department announced today the revocation
of General License No* 50 which* authorized certain trans
actions prohibited under the freezing regulations if such
transactions were by, or on behalf of, the Government of
Switzerland or the Banque Napionale Suisse.
This action,
taken in agreement with the Government of Switzerland, was
provided for in the defrosting arrangement which led to
the inclusion last November of Switzerland and Liechtenstein
in General Licenses Nos. 9^ and 95.
oOo
..TREASURY DEPARTMENT
Washington
(The following address by A. Lee M. Wiggins,
Under Secretary of the Treasury, at the
annual convention of the American Bankers
Association, at Atlantic City, New Jersey,
is scheduled for delivery at 11:00 A»M.,
Eastern Standard Time, Wednesday, October 1,
19477" and is for release at that time„)
Three years ago it was my pleasure to address the annual
convention of the American Bankers Association as your retir
ing president, Today, after an interval of three years, I
return as an official of the Government to continue the dis
cussion of some of our national problems.
Through the past eight months, I have been able to
observe at first hand the operations of Government and have
participated in handling some of the problems of Government.
That experience confirms, strengthens, and deepens the
conviction that I have expressed to you on other occasions,
namely* that democratic government, as conceived and wrought
by the American people, is the best system of human relation*
ships yet devised by man* It continues to be the last best
hope of man.
Too much are we inclined to emphasize the weaknesses of
democratic processes, the wastes in our system of checks and
balances, the failures that result from political influences,
the unbalanced weight of powerful minorities in the determin
ation of national policies, and the give and take and compro
mise on legislative programs, and to consider these things as
evidence of weakness in the basic structure of democratic
government.
Some of them, no doubt, constitute a price for. democracy.
But, more important to me, are they .the evidence of a flexi- •
bility which constitutes the strength of democracy. Democratic
government, as we understand it and as it has true value, must
operate In an environment of freedom. When men are free to
think as they please, to differ as they will, and to seek to
translate their views into policies of government, there neces
sarily follows a flexibility that responds to the changing
needs of national life. It is this flexibility that assures
the strength and permanence of democratic government.
S-480
186
2
It is now more than two years since the end of our armed
conflict. The readjustment from war to peace has ever been a
difficult period. Much of the world has made little progress
in that adjustment. In this country, we have moved further
and more quickly than any of us dared hope. The shift from
wartime production to peacetime has been a marvel of industrial readjustment. There has been a minimum of disturbance
in the field of finance. In spite of the necessity of vast
operations in financing Government during the war, our finan
cial machinery was adequate and has handled^a Government debt
in an amount undreamed of prior to the war. And, in spite of
continuing high costs of Government, most of which is attri
butable to the war, we have achieved a balanced Federal budget
within two years of the end of the conflict.
Furthermore, the flexibility of democratic government has
made possible the restoration of many of the freedoms in our
economic life that were taken away under the stern necessity
of regimentation for war. Many Government controls have been
removed, some perhaps too quickly, but all through the opera~
tion of democratic processes. Throughout much of the world,
this has not happened, but, on the otjrer hand, the powers of
the state have further increased and the freedoms of the in
dividual have been further restricted.
If we examine our postwar economyvin terms of prewar,
we discover several important developments. The Federal
Reserve Board's index of industrial production is now 67
percent higher than the average for the year 1939♦ Although
industrial production is only a portion of total production
In the economy, we find from available evidence that the
total output of goods and services - including agriculture
and elsewhere in the economy, as well as in industry - has
risen nearly proportionately.
But purchasing power has risen even more than production,
Our national Income has increased 173 percent; deposits In
commercial banks have increased 1.62 percent; and the total
liquid assets held by individuals have risen about 250 percent
since 1939. Purchasing power has outrun production. Prices
have gone up all along the line. The most fundamental prices
of all - those paid by consumers - have gone up about 60 per
cent since 1939.
Today our major economic problem at home is to make sure
the dollar size of the economy does not further outrun its
physical size,
In solving this problem, we are confronted with major
difficulties both on the side of supply and on the side &€’
demand,
On the side of supply, we find that our economy is now
almost fully employed. This is true of both our labor force
and our physical plant. This leaves but one way in which
production can be substantially increased promptly, and that
is through greater^production per individual employed.
On the side of domestic demand, our major difficulty is
impatience. Large backlogs still remain from the war period
and there is the purchasing power to make them effective,
while consumers seem to be unwilling to wait for the regular
course of production to catch up with their orders.
$.
The situation calls for restraint on the part of Govern*ment, consumers, business, and labor - restraint in spending,
restraint in pricing policies, restraint in wage demands, re
straint in tax policies. If we will exercise this restraint,
the present combination of factors can result in a long con
tinuing period of prosperity; if we do not, it can result
only in further inflation.
We accomplish little, if anything, by merely writing up
price tickets. We cannot create prosperity in this country
merely by writing up higher and higher price tickets, whether
on wages, on commodities, or on profits. Although our economy
is now geared to a higher ration of dollars to the volume of
production than before the war, and no doubt will continue
above the prewar relationship, a continuation of the write-up
of more and more dollars must inevitably lead to a top-heavy
dollar structure.
The pressure of the dollar against goods arises not only
from this unbalance but also because of the desperate short
age of goods throughout the world. We hear much of the dollar
shortage, but that is a mere symbol of the shortage throughout
the world of goods that require dollars to produce. While we
are consuming in this country the largest volume of production
in our history, in many of the countries of Europe consumption
is on a starvation level. This is particularly true as to
food. With reasonable temperance in eating and careful avoid
ance of waste of food, we can feed millions of hungry people.
We are today confronted with the practical urgent neces
sity for taking proper action in dealing with this situation.
In our domestic economy we cannot afford to allow the pressure
of dollars against goods to rise to the point that it will en
danger our whole economy, At the same time, we must face in
our conscience the stark requirements of hungry people in
other nations. As we face the realities of the world situation
188
-
ft
-
we know .deep down in our hearts that aside from any generous
impulse, our own long-term self-interest requires a partici
pation in meeting the needs of other peoples. Whether we like
it or not, we now realize that we cannot maintain an island of
prosperity in the midst of a sea of adversity.
Our resources are not unlimited. We would he foolish to
tear down and give away our own house through generous impulses.
We must remain strong, because not only is our continuing
strength necessary to preserve this Nation but a strong America
is the best hope of the world. We must find proper balance be
tween the head and the heart.
We must be as generous as long-term self-interest will
permit. This means that we must share our production of the
necessities for maintaining life with many peoples throughout
the world until they are able to survive through their own
production, America has never turned a deaf ear to hunger
and cold and disaster. This does not mean that we should ac
cept the responsibility of working out their problems, but we
have a clear duty to provide food and fuel to prevent starva
tion and death. To many nations that do not have current
means with which to repgy, we must also provide productive
equipment and loans with which to pay for such equipment.
Such loans, being for productive purposes, could and should be
on a sound and solid basis. Generosity and loans need not be
mixed. There is a limit to what we may be able ta give, but
the limits of loans for productive enterprise can be multiplied
through Government and by private capital. There is immediate
and urgent need in both fields, and prompt action is necessary
if some nations are to avoid the twilight of disintegration.
I have discussed only the economic side of our inter
national problems, but we cannot close our eyes to the politi
cal side. The world revolution of the past half century finds
fertile fields among many peoples whose economies have been
wrecked, who are living in wretchedness and who face hopeless
ness and despair. Such is the breeding ground of communism.
We find it difficult here in America, where the individual is
his own master and where we are surrounded by abundance, to
understand why many people in many nations give up their birth
right and surrender their souls to systems of government under
which freedom disappears and the individual becomes the slave
of the state. I think the answer is that hunger, fear, hopelessness and a familiarity with death break down the will, de
stroy ambition and weaken resistance. It is a surrender to
futility. Under such conditions, freedom becomes a mockery
and a government of free men an idle dream. As this poison
189
- 5
-
spreads throughout the world, it destroys freedom everywhere
and gets into the bloodstream of civilization, \fe have no
choice but to fight its spread with all the tools we have.
However, argument, facts, and enlightenment are not enough
in barren soil. That soil must be fertilized through provis
ion of the basic necessities of life, from which may follow
renewed hope and courage.
It is easy to surrender our spirit to a sense of hopeless
ness as to the future of many parts of the world. I do not
subscribe to the inevitability of any such conclusion. On the
other hand, it is my deliberate conviction that to the further
most part of the world today there beckons an opportunity
within grasp in the foreseeable future of the greatest advance
in the standard of living and well-being for the most people
in the shortest period of time in the history of the World, ,
To realize that opportunity, there are three requirements.
The first is for the countries of the world to utilize the ex
perience of this Nation in multiplying per capita production.
This means, first of all, hard work and the production of goods.
It means also the multiplication of human production through
the use of mechanical energy. Second, it requires the coopera
tion of free men under bystems of government that will release
the springs of incentives. The third requirement is sound and
stable governments of integrity that will invite world-wide
Investment and trade. Under such conditions, capital and man
agement know-how will flow to the four corners of the earth.
I
do not mean to say that this opportunity will be grasped
throughout the world. At the present, it appears that many
people in many nations are more interested in internal strife
and in efforts to promette political idealogies that restrain
the energies of men, that remove their incentives and destroy
their hopes than are willing to work with one another to re
build their national life and improve their well-being. Many
are tired and discouraged and see no hope for the future.
Others are imprisoned by a ruthless minority of a police state.
Our opportunity is in doing all we,can to keep the spark of
their hope alive ,
Perhaps we are too much inclined to see the destructive
forces at work throughout the world and to look only at the
dark side of the picture. There is no more thrilling epic of
courage and heroism in the long tragic fight of man for free
dom than we find in many df the nations of Europe.today.
6
Men and women in erery land are pouring out their last ounce of
resistance against the tides that would engulf them. They
still carry the torch of freedom in the face of cyclonic winds
that would extinguish the light forever. Their bodies are
wracked under the heels of tyrannic despotism, but their spirits
do not yield. They lift their eyes to the hills from whence
cometh help, if help is to be had. Throughout the world,
America stands today not only as a symbol of hope and the in
spiration for freedom but as a land and people with the means
that can make possible the translation of the dreams of millions
of people into reality.
In our own country there are some who profess to see across
the horizon indications of trouble ahead in our own economic
progress. The best insurance against such trouble is to recog
nize these threats and to take timely action. The basic factors
in our economy show that we can support a1high level of produc
tion and consumption for a substantial period ahead. There is
a large backlog of accumulated individual savings and corporate
surplus, an unsatisfied demand for goods that will require
years to fill, and there continues a dynamic growth of our pro
ductive economy. We have discovered secrets of production
during the war period through the ingenuity of our workers and
the wider use of mechanical power that astonished us and seemed
a miracle to the rest of the world. Our large purchasing
power is widely distributed among the people. Demands for our
products multiply throughout the world and the continued flow
of trade is essential for them and most Important for us.
If failure comes, it will be through our failure to
properly harness and direct the forces that make It possible
to stabilize a high national income for years to come. It
may also come from the race of the various segments of our
economy to secure a larger share of the fruits of our produc
tion through trying to put the highest possible price tickets
on their share.
In achieving a sound, continuing economy, the financial
policies of Government will play an important part. In par
ticular, this means the management of the public debt, the
size and character of the Government budget, and the policy
of taxation followed.
The policy of debt management has been specifically
directed toward a reduction in money supply through the liquid
ation of bank-held Government debt. There have been three
phases of debt management since, the beginning of the war. The
first was the period in which vast sums were raised through
the issuance of new securities to provide funds for war purposes.
7
191
The second phase began with the end of the Victory Drive,
which resulted in large Treasury balances in the banks. These
balances were used largely to retire bank-held Government debt.
We are now in the third phase, in which Government balances
are kept at peacetime operating level, and, with the achieve
ment of a balanced budget, there is no need for additional
i*unds. Debt management now consists of reducing the total
debt through the use of a budget surplus, and the transfer
of the^debt through the sale of securities to non-bank holders,
including trust funds of Government, and using the proceeds to
further reduce the bank-held debt. During the period from
February, 1946, to date, in which the gross outstanding debt
was reduced 21 billions of dollars, the bank-held debt, during
the same period, was reduced $24 billions, the difference re*
suiting from the shift of ownership.
I need not say.to bankers that the policies pursued in
debt management have an important effect upon the entire finan
cial community, including the money markets, bank earnings,
returns on long-term investments, as well as on the pockets of
the taxpayers. All of these are important considerations and
must be constantly weighed. Bankers have been fully cooperative
with Government in debt management programs that were in the
public interest, including the sale of Government securities to
the public and even including policies that resulted in lower
bank earnings. We must not, at this time let up in our efforts
to distribute more of the debt into the hands of the public,
I am convinced that the Federal Government and the Federal
Reserve System, with their high degree of cooperation, not only
have the essential powers but the machinery and the know-how
for the sound management of the public debt under any conditions
that may arise. So long as the public debt remains at high
levels, these powers should and must be exercised. They should
be exercised to permit so far as possible, a degree of freedom
in the money markets and in the investment markets. However,
the major consideration must be the effect of such management
on the economy of the Hation as a whole.
Budgetary expenditures of the Federal Government have been
reduced from more than $100 billion for the fiscaj year ending
June 30 , 1945, to a current budget estimate of $37 billion for
the year ending June 30 , 1948. This is a cut of two-thirds
within a three-year period. Most of the reduction was in items
for war purposes. Of the present budget of $37 billion of ex
penditures, about three-fourths of the total are for purposes
related directly to war, the effects of war, or efforts to pre
vent a future war. This leaves 26 percent of the current budget
for all Government programs, of which the share of general
192
8
Government is only 4 percent. The President has been most
vigorous in his efforts to reduce budget expenditures. In
the current budget, he made a reduction of $5.5 billion
from the estimates submitted to him by the various departments.
As part of the readjustment plan, the President not only recom
mended recision of $65 billion of appropriations, but set
limitations which reduced expenditures substantially below the
appropriations made by Congress.
There are times and conditions under which Government
expenditures should be made to conform to a pre-determined
level of revenue, but in the present state of world affairs,
we are confronted with the practical necessity of measuring
the requirements in terms of the national interest and pro
viding the revenues to meet those requirements.
In spite of the continuing efforts being made to reduce
the cost of Government, the budget will remain relatively high
in terms of prewar budgets. An outlay of $23 billion, or
nearly two-thirds of the total budget, is now required for the
three items of expenditures for national defense, veterans and
interest on the public debt.
This leads to a consideration of taxes. Any tax program
must start from the budgetary requirements of Government. As
suming a balanced budget, the cost of Government must be pro
vided through current taxes. The second consideration is a
surplus to be used to retire the public debt. What the amount
of this debt retirement should be will vary under different
conditions and becomes a matter of judgment. It would seem to
me proper to use a relatively simple formula: That in times
of a high level of income, and particularly in times of infla
tionary pressures, larger payments should be made on the debt.
Under adverse conditions, little, If any, can be paid.
Whatever Government Income there may be above budgetary
requirements and proper application to reduce the debt, the
excess should be used for tax reduction.
For the past year and longer, both the Treasury Department
and the appropriate committees of Congress have had under study
our tax structure. It is generally recognized that the exist
ing tax structure was designed to finance the war to the larg
est extent possible out of current income. It has as its major
objective the production of maximum revenue. It is no reflec
tion on the policies pursued to achieve that objective to
recognize that certain other considerations were of less impor
tance. The result has been that Inequities have crept into our
tax laws and some of the burdens of our present tax structure
are ill-designed for peacetime conditions and objectives.
9
193
The Secretary of the Treasury, testifying before the
Committee on Ways and Means of the House of Representatives on
May 19* 19^7, said: "I should like to repeat my firm conviction
that at this time we have a unique opportunity to modernize
the Federal tax system. We are nearing lower peacetime levels
of Government expenditure and continuing high levels of national
income and production. A period of tax reduction is approach
ing." He concluded his presentation by saying: "The development
of a sound postwar tax system constitutes one of the most im
portant steps toward the assurance of continuing prosperity in
this country. If production is to continue to increase, if the
American standard of living is to improve In the future as it
has in the past, the tax system must yield the needed revenue
without impeding business and work incentives, without restrict
ing investment and without weakening consumer markets."
The application of these sound principles of taxation to
basic tax laws that shall constitute a peacetime tax program
for America is by no means an easy one nor will it be possible
to find full agreement everywhere on any tax revision program.
The problem is largely an economic one and judgment must be
applied in the determination of probable economic effects, not
only of varying rate schedules but in the many fields of tax
ation. It is in these fields of judgment that differences of
opinion will arise.
The objective of tax revision is clear. While every
consideration should be given to the particular needs of every
segment of our economy and to the effect of every tax, both as
to rate and structure, and every effort made to achieve the
most equitable distribution of the load, the controlling ob
jective must be to raise the revenue required in such ways
that the results will be in the best interest of our national
economy as a whole. In achieving that objective, self-interest
must give way to general welfare.
The bankers have an important part in dealing with the
problems I have discussed. Their actions and attitudes will
have a direct effect in finding the correct answers.
On the Inflationary front, the banks have a potent Instru
ment in the creation of loans. Bank deposits have increased
from the prewar level almost proportionately to the increase
in national income. Further increases through loans made for
speculative purposes create no productivity and merely add to
the volume of deposits. Consumer loans promptly flow into the
spending stream. While the volume of consumer loans in propor
tion to national income is well within bounds, the rapid in
crease of such loans adds inflationary pressure to the spending
-
10
-
stream. With the termination of controls on consumer credits
on November 1, the bankers must accept the serious responsibilit^rcfor the policies they pursue. The bankers have a
definite obligation in exercising their powers to create de
posits, to examine carefully the effect of all loans on our
current national economy.
Under our monetary system, banks are able to create reserves
through the sale of Government securities to Federal Reserve
banks. Through the use of such reserves, private credits may
be multiplied seven-fold. This power of multiplication of credit
imposes a serious responsibility upon the banks in terms of the
uses for which such credits are made.
A third responsibility of bankers is in the interest of
preserving our private enterprise system. We must not confine
our efforts in this direction merely to lip service. We should
recognize that the kind of private enterprise system that will
survive is one in which there is a free play of competition
that will restrain both prices and profits. In a period of
shortage of goods, heavy demand, and a plentiful supply of dol
lars, competitive factors have not had free play. In some
cases the facilities to produce actually become a temporary
monopoly. The result has been higher prices and higher profits
than would be possible under free competition and a full supply
of goods. The banks themselves have been largely free from
excessive prices and the hire of the dollar remains the lowest
wage in our economy, but the bankers can have an important in
fluence in restraining those who place their own immediate
profit above the national good.
On many occasions I have pointed out trends toward state
socialism in this country and have warned bankers that if the
Nation should be propelled in that direction, we might find
the banking system among the first targets. I have now come
to the conclusion that this will not, of necessity, be the
case. So long as our dual system of chartered banks remains
strong and continues to perform the high degree of public
service that commands the confidence and respect of the American
people, so long as bankers place national welfare above private
profit, so long as our banking system consists of thousands of
units scattered across the land and are not allowed to become
concentrated In a few large branch banking systems or holding
company systems, so long as the bankers themselves fulfill the
responsibilities of leadership that their positions of trust
require them., so long can banking in this country escape the
designs of any who would socialize our American economy.
-
n
-
The crowning responsibility of the bankers, as of every
one else, is to participate in Government. This democratic
government of which I speak is not merely made up of a legis
lative, judicial, and administrative system. It consists of
free men and women of whom every individual is a part of
government and for which every individual is responsible for
the success of that government and for its failure. As an
administrator working in Washington, I have tried to discover
what our Gqvernment really is. I look across the street from
my office to the White House and ask myself if the ^resident
Is really Government. The answer unmistakably is that he is
not, but that he is merely one of 140 million people who,
through the processes of government, ha3 been handed certain
responsibilities and ".duties. So is a member of Congress and
a judge on the bench; so are you and every other citizen of
this Nation. Of course, all have different assignments and
different duties to perform, but every one of us, under the
democratic concept of the rights of the individual, also have
our own individual responsibilities and are eqqally a part of
this thing we call democratic government.
In the face of all of the difficulties of this complex
society in which we find ourselves and of the desperation and
conflicts in which much of the world finds itself, X re-affirm
my faith in the principles on which this Nation was built and
on the vigor and courage and capacity and vision of the men
and women of America and on their zeal and devotion in the
cause of freedom, not only for ourselves but to the uttermost
parts of the earth.
0O0
196
TREASURY DEPARTMENT
Washington
Press Service
No. S-481
FOR IMMEDIATE RELEASE
Tuesday, September 30, 1947
The Secretary of the Treasury today announced the
subscription and allotment figures with respect to the
current offering of 1 percent Treasury Certificates of
Indebtedness of Series J-1948, to be dated October 1,
1947.
Subscriptions and allotments were divided among^the
several Federal Reserve Districts and the Treasury as
follows:
Federal Reserve
District
Total Subscriptions
Received & Allotted
$
Boston
New York'
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Treasury
59,341,000
629.559.000
31.653.000
53.989.000
.
19 190.000
39.030.000
205.669.000
50.435.000
46.792.000
91.141.000
36.308.000
89.734.000
1,028,000
$1,353,869,000
TOTAL
0 O0
TREASURY DEPARTMENT
Washington
FDR RELEASE MORNING NEWSPAPERS,
Monday, October 6 , 194-7______ _
Press Service
The Treasury Department today made public a study entitled
“Federal Retail Excise Taxes,” presenting factual data and analyses
intended for use in appraising the present taxes on retail sales of
furs, jewelry, luggage and toilet preparations. The study,‘prepared
by the Treasury’s Division of Tax Research, is one of a series bearing
on proposals for postwar tax revision. It does not make policy
recommendations•
a section of the study is devoted to each of the four excises.
The history of each tax is traced and the revenue yields are indicated*
Analytical discussions cover the economic oackground of the industries
concerned, the effects of the tax on profits, on business costs and
competition,- and on consumers, and technical and administrative problems
which the taxes involve.
Taxes on the four groups of articles were first imposed during
World War I, and have been in effect for varying periods since then.
A rate of 20 percent of the retail price was applied to the four groups
by the Revenue Act of 1943, and this rate remains in force.
Revenues from the four taxes for the fiscal year 1947 wer^es
furs,
497 , 500,000 $ jewelry, ^236 ,600 ,000 $ luggage, &>84 ,c>00 ,000 $ toilet
preparations, $95,500 ,000 .
# #
<The study points out that the wartime demand for furs showed a
great increase, and profits for the industry apparently were very
favorable, but that as supply and demand conditions become more normal,
the present relatively high rate of tax may be expected to affect
profits significantly.
Effective April 1, 1947, an important change y.*as made in the
application of the tax to fur-trimmed articles. Prior to April 1 the
20 percent tax was payable on all fur—trimmed articles of which fur
was the component of chief value; since April 1 it ..has been payable on
fur-trimmed articles only if the value of the fur is more than three
times the value of the next most valuable component.
Since cloth coats may be substituted for fur coats, the tax tends
to discriminate against producers and sellers of fur coaos, particularly
those in the lower price ranges. The present tax treatment of furtrimmed coats results in a disadvantage to the all^fur coat and neck
piece industry, since it results in most, fur-trimmed coats being
tax-free.
-
2
-
Consumer expenditures for furs appear to constitute an increasing
proportion nf fam ily income as the size of the income increases.
Consequently the tax, to the extent that it increases fur prices to
consumers, falls more heavily on the higher income groups.
#
&
*-
The excise tax on jewelry applies to a wide range of articles;
Jewelry proper and clocks and watches are the chief items of the tax
base. The tax exempts silver-plated flatware. The rate lor watches
selling for not more than $ 6 $ and alarm clocks selling for not more
than
is 10 percent instead of 20 percent.
The demand for most items subject to the jewelry tax is for the
purpose of personal adornment, though such articles as clocks and vetches
are considered essential. Wartime expenditures for jewelry greatly
exceeded pre-war expenditures. There has been no indication of a post
war decline in retail sales.
After supply and demand have become adjusted to peacetime conditions
the. present rate of tax may have a,significant effect on profits, since
purchases of most items v/ould probably be reduced substantially by the
tax.
The rate shift from 10 percent to 20 percent at the $5 and $65
levels for alarm clocks and watches respectively has adverse competitive
effects on some producers. A larger proportion of domestic than imported
watches probably sells for more than $65 and is taxed at 20 percent.
Data for 1941 family expenditures and income indicated that the
proportion of income spent for jewelry, watches, clocks, and silver and
silver-plated ..ware was approximately the same for all income groups
between $500 and $5,000. Average expenditures for these items in the
1941 income group below $500 represented a considerably lower proportion
of income.
The study notes that suggestions
jewelry items selling below a certain
character generally would lead to tax
administrative difficulties. When an
competitive inequities may result.
have been made for an exemption on
amount. Exemptions of this
avoidance and involve serious
exemption is based on selling price,
The luggage tax applies to the products of three industrial groups,
for the most part. One group produces women’s pocketbooks, handbags
and purses, another small leather goods,' and the third luggage proper,
or suitcases, trunks and travel bags. There is some overlapping of
products.
- 3 There are 'indications that the travel luggage industry faces problems
of over— expansion and conversion« As conditions of supply and demand
become more normal* the present rate of tax may affect profits signifi
cantly# In view of the apparent over-expansion during the war* it will
,
probably be some time before supply becomes adjusted to a lower level of
consumer purchases# Under these conditions the present tax woula exert a
downward pressure* on prices and profits of producers and distributors#
Consumer expenditures for handbags appear to represent a substantially
larger proportion of family income as the size of the income increases#
Data for 1941 indicated that the income groups from $>3 ,0 0 0 to $>$,000 spent
roughly 50 percent more in relation to income for handbags than did the
income classes below $2 , 000 #
-X- *
The tax on toilet preparations affects all income groups# Imposition
of the 20 percent tax did not seem to affect sales to any appreciable
extent# Under high employment and income conditions this tax is not
expected to have a serious effect on the profits of the industry#
On the basis of 1941 family expenditures and income, the proportion
„of income spent for toilet preparations seems to be about the sane for
all income groups below $ 5*000 #
On the point of the relative desirability of a tax on toilet
preparations at the retail and the manufacturing levels* the study states
that administrative problems under the retail tax are on the whole much
less serious arid the uniform retail price basis is more equitable in its
application to producers and sellers with varying forms of business
organizations, than the manufacturers’ tax formerly imposed#
FEDERAL RETAIL EXCISE TAXES
Part I
-
Excise Tax on Purs
Part II
-
Excise Tax on Jewelry
Part III
-
Excise Tax on Luggage
Part IV
-
Excise Tax on Toilet Preparations
Division of Tax Research, Treasury Department
October 1947
federal Retail Excise Taxes
One of the important questions in tax revision concerns
the changes to "be made in the extensive list of excise taxes*
This study is one of a series on the commodities and services
subject to excise tax* The purpose of the studies is to make
available data on tax rates, revenue and the economic back
ground of the industry and to discuss the effects of the tax
on profits, on business costs and competition and on consumers.
The administration of the tax and the principal technical
problems that arise are also condideredj The studies are not
intended to make policy recommendations but to provide infor
mation and analyses which would be useful in appraising the
desirability of changing or eliminating the taxes involved*
The study was initially prepared in the Excise lax Section
of the Division of Tax Research; In its preparation valuable
assistance and suggestions were received from other members
of the Treasury tax staff, including consultation with
members of the Office of Tax Legislative Counsel on legal
matters and of the Bureau of Internal Revenue an administrative
matters.
The general aspects of excise taxes were considered by a
committee composed of the technical tax staffs of the Treasury
Department and the Joint Committee on Internal Revenue Taxation
The detailed analysis of the individual taxes, however, has
been prepared independently and reflects only the views of the
Treasury tax staff.
Division of Tax Research
TJ, S. Treasury Department
October 1947
202
FEDERAL RETAIL EXCISE TAXES
PART I
I•
-
Excise Tax on Furs
D escription of the tax
The tax applies to sales at retail of all articles made of fur on
the hide or pelt, and articles of which such fur is the component
material, hut only if such fur component is more than three times the
value of the next most valuable component material, l/
The tax is payable by every person who sells at retail any of the
taxable articles. Where a pelrson produces an article from fur
furnished, directly or indirectly, by a customer and the article is for
the use of such customer, and not for resale, it is considered a sale
at retail.
The exemptions provided under this tax are (a) sales for the
exclusive use of State or local governments and (b) sales for export.
II.
Changes in the tax since 1918
A tax on furs was levied under the Revenue Act of 1918, The tax
rates and the effective dates of changes since that Act are shown below:
Changes in tax rates since 1918
Revenue : Effective :
Act
date
:
1918
A p r ,1, 1919
Rate
10 $ of mfrs.
sales price
! Effective *
: Revenue :
Rate
:
date
:
Act
..... i-11" 1
3$ of mfrs.
June 25
1936
sales price
1921
Jan.l, 1922
Repealed
1938
July 1
Repealed
1932
June 21
10$ of mfrs,
1941
Oct. 1
10$ of re
tail sales
price
sales price
1934
May 10
a/
1943
A p r . 1,
1944
20$ of re
tail sales
price
a/ Section 608 of the Revenue Act of 1934 exempted from the tax articles
selling for less than $75. Repealed by section 810(b) of the Revenue
Act of 1936.
y
Prior to the Excise, Tax Apt of 1947, effective April 1, 1947, all
articles of which fur was the component material of chief value were
taxable.
203
- ii TABLE OF CONTENTS
PART I I I
E x c is e Tax on L u g g a g e . . . . . ............
P ag e No»
42
X*
D e s c r ip t io n o f th e t a x ..........................................* ..........................
42
XX.
Changes i n t a x s in c e 1918 . . . . . . ............ • ........................................... *•
42
III.
Revenue c o l l e c t i o n s 1942-1947................................................
43
IV .
Econom ic backgroun d o f th e in d u s t r y .............................................. .. f
A.
C h a r a c te r o f su p p ly .....................................
B*
C h a r a c te r o f demand
C . O u tlo o k f o r th e i n d u s t r y .....................'• • • .............................
43
43
47
48
V.
E f f e c t s o f th e t a x
...................................................................................
A . On p r o f i t s .................................................. .. ............... ..
B . On b u s in e s s c o s t s and c o m p e titio n . . . . . . . . . . . .
C* On consum ers .............................................................
52.
52
52
54
V I.
A d m in is t r a t io n and c o m p l i a n c e ..................... ........................................
54
V II*
T e c h n ic a l problem s
A . The tre a tm e n t o f sm a ll le a t h e r goods ..................... ..
B . T im in g o f t a x r a t e ch an ges .... ................................................
55
55
PART IV
-
E x c is e Tax on T o i l e t P r e p a r a t io n s . . . . .
56
I*
D e s c r ip t io n o f th e t a x . . . . . . . . . . . ............
56
II.
Changes i n th e t a x s in c e 1914 ....................................................
56
Ill*
Revenue c o l l e c t i o n s 1936—1947 ............................................................. ...
57
IV«
Econom ic background o f th e i n d u s t r y ............ ................ ................. ..
A. C h a r a c te r o f s u p p ly ..........................................................................
B.
C h a r a c te r o f demand ...................................................................... ..
C* O u tlo o k f o r th e i n d u s t r y .................. ......................... ..
58
58
64
65
V*
E f f e c t s o f th e t a x
* . .» ..........................
A* On p r o f i t s ............ ................. ...
B , On b u s in e s s c o s t s and c o m p e titio n ..............................*
C , On consum ers .................................................... ..
65
65
66
66
V I , . Administration and compliance ........ ........
67
V II,
67
67
T e c h n ic a l problem s * ..................................................................................
A* T reatm en t o f s a le s to b e a u ty and b a r b e r sh o p s.
B , The d e f i n i t i o n o f t o i l e t p r e p a r a tio n s . . . . . . . .
C . x T im in g o f t a x r a t e ch an g es ,
.
.
V I I I , R e l a t i v e d e s i r a b i l i t y o f f e t ä i l and m a n u fa c tu r e r s 1 t a x
(Continued)
68
69
*
69
- iii TABLE OF CONTENTS
TABLES
Page No*
PART I
1
2
-
Excise Tax on Furs»
Value of imported raw and dressed fur and fur
manufactures, 1929 - 1 st. quarter, 19^-7 *...*♦..... ♦
3
Sales of fur articles, estimated from tax collections,
..... ...... .....
19 U 2 - 19 U 7 .........I;.
3
k
5
6
7
8
9
10
11
PART XI
5
Value;of products of the fur goods industry, and
disposable income, 1925 - 1939 .................... * •
7
Fur-trimmed coats produced, by manufacturers 1
price class, 19*4-6 .............. ................. .
11
*
Untrimmed cloth coats produced, hy manufacturers’
price class, 19*46 ................ ..... ........... .
12
Number of Womens, Misses* and Juniors’ coats
produced,: 1937 ~ ISkS .'........ ; ;;
....... .
13
United States imports for consumption of raw and
undressed furs (except black and silver fox) by
country of o r i g i n ..................... ........ .
l6
Number, value and prices of principal raw furs
imported, for selected years ............ ........ .
17
United States imports for consumption of silver or
black fox furs, by country of origin, 1939 - 19^5
IS
Value of pelts taken on silver fox and mink farms,
United States, 1939 ............ ......................
20
Production of silver fox pelts in the United States,
1929 - 19^5 ............................... ...... .....
21
- E x c i s e Tax on Jewelry:
1
Domestic production of jewelry, at manufacturers’ ■
prices, 1939 ...........................................
2b
2: ■
Distribution of jewelry manufacturing establishments
by number of wage earners, 1939 ............... ......
28
3
Value of imports of jewelry and similar items ,*•,,,,
29
k
. Apparent consumption of watches by type, 1 9 3 1 - 1 9 ^ ».
3^
(Continued)
205
- iv -
TABLE 03? CONTENTS
TABLES
PaeeNo*
5
6
7
Consumers* expenditures for jewelry and watches
as percentage of disposable incbiSd ............................
3^
Index of sales of jewelry and silverware by
department stores reporting to Federal Reserve
Board ............ ........... ......................
35
Sales of jewelry stores ......... ....... 3&
PART III - Excise Tax on Luggage:
1
2
3
U .
5
6
PART IV «
Value at manufacturers* prices of women*s handbags,
luggage and miscellaneous cases produced in 1939
*+*+
Number of establishments and wage earners in
women’s pocketbook, luggage and small leather goods
industries, 1 9 3 9 ..... ...................... .
U6
Taxable sales and index of department store sales
of handbags and luggage, lQ^-1 t 19^6
U9
Index of sales of luggage by department stores
reporting to Federal Reserve Board
$0
Index of sales of handbags and small leather goods
by department stores reporting to Federal Reserve
B o a r d ...............................................
31
Sales of handbags, small leather goods and
luggage estimated from tax collections, April I9 UU
March I9 U7 ....... ........................ ...... ....
53
Excise Tax on Toilet Preparations:
1
Production of principal toilet preparations, 1939 *•
2
Number of establishments in the perfume, cosmetic
and other toilet goods industries, by number of
wage earners, 1939
.... 60
3
Sales of toilet preparations, estimated from tax
collections, I9 U 2 - I9 U 7 ..........................
62
Price indexes for medium priced and inexpensive
face powder and cleansing cream, 1935 ** 1st. quarter,
1 9 ^ 7 .......................... ............... .
63
U
59
FEDERAL RETAIL EXCISE TAXES
TABLE OF CONTENTS
PART I
I.
-
Excise Tax on Fur 6
Description of the tax .......... .
II
•
............... .....
Page No»,
1
Changes in the tax since 1918 *... . v*w iH ....... .
1
III,
Revenue collections 1936—1947 ................. ...... .
2
IT,
Economic background of the i n d u s t r y ..... . ...........
A»
Character of supply
2
B, .Character bf demand
C, Outlook for the industry U-,....................
2
4
6
T*
Effedts of the tax •
i ......... ............... .
A. On profits .....** J.. m ....... **ii *...........
B*. On competition . i, m i »n; .V...¿.**** ,..........
Ci
On consumers 4 *,,.1 4 1ft*. * ♦4
.
f
6
6
8
S
TI•
Administration and compliance . iv 4 i
9
Til*
Technical problems
....... ................................... 9
A* The treatment of fur-trimmed coats and lower
priced fur coats ............ ........... ......
9
B, Timing of tax rate c h a n g e s .... ........ r\ .
14
Appendix
-
.. * i* .. *. j i * i.,.. t
Structure of the Fur Industry .,..........
PART II
-
Excise Tax on Jewelry .........
15
23
1»
Description of the tax ............................
23
II*
Changes in the tax since 1917 ......
23
III,
Revenue collections 1936-1947 ..........
24
IT*
Economic background of the industry .
.
.
A. Character of supply ...........................
1, Structure of the industry ............. .
2 , Wartime changes
....... ..
3, Summary ,—
...... .
B. Character of demand ...........................
C. Outlook for the industry .............. .......
25
25
25
32
32
TI,
Effects of
A.
B.
C.
the tax .......... .......... ................ .
On profits r.
^
.,
On business costs and competition .......
On consumers .........
Administration and compliance
TII* Technical
Af
B,
C;
D*
......................
problems ..... ......
Exemptions and differentialrates t...... T, *tf
The treatment of sales at auction
The treatment of ornamented articles t.r...,.Tf
Timing of tax rate changesf
t
.
.
T.
(Continued)
32
33
37
37
38
38
39
39
39
40
40
41
207
-
III.
2
-
Revenue collections 1936-1947
This tax produces approximately the same amount of revenue as is
obtained from each of the taxes on luggage and toilet preparations and
about one-half the revenue from the jewelry tax. Annual collections
are shown below:
Collections, fiscal years 1936-1947
(In millions)
Fiscal year «
*
1936
1937
1938
$
1939
1940
1941
IV,
Collections
5’
•
t*
*
Fiscal year
3.3
5.9
5.3
1942
1943
1944
•4
.2
1945
1946
1947
a
’
♦
*
Collections
$
19.7
44,2
58.7
79.4
91,7
97.5
Economic background of the industry
A.
Character of sup-ply
The production of fur or fur-trimmed garments involves the trapping
or raising of the fur-bearing animals; the dressing, dyeing and blend
ing of the pelts; and the cutting, blocking, fitting and sewing of the
processed furs into garments, 1/
More than half of the raw furs used in the United States normally
are imported. The value of imports increased during the war and immediate
postwar years but has recently declined,
(Table l) Domestic furs are
obtained largely from trapping, although silver fox farming has grown
to be the principal source of such furs and some mink furs are produced
on farms.
Imported and domestic furs are generally dyed, dressed, and
blended in the United States by processors who are mostly small-scale
operators. The manufacture of fur garments is carried on in small
shops and profits tend to be low,
1/ See Appendix,
"Structure of the Fur Industry,"
T a b le 1
Value of imported raw and dressed fur and
fur manufactures, 1929
1 st# quarter, 19^7 1 /
v alu e
(In thousands)
1929
1930
1931
1932
$
1933
1934
1935
125,253
6 8 ,6 0 6
53,860
2 8,495
3 7 .^ 7
4 0 ,6 6 4
53
1936
86*178
4 5 ,8 3 7
1937
193 s
1939
I9U0
19Ul
19^2
I9U3
I9UU
I9U5
I9 UÔ
t-l6i
81,609
55*471
7 9 i 811
108,984
69,231
9°if35
125,890
i 4âjoôo
2/
218,000 g)
1 st* quarter 1946 7,/
1 st* quarter 1947 3./
60,843
25,291 2/
Treasury Department, Division of Tax Research
Source:
Through 1944, Statistical Abstract of^the United States,
1946 , p. §0 6 . Dor calendar 1945» 1946, and 1 st, quarter
1947, estimates of the United States Tariff Commission,
For 1st, quarter 1946, U, S, Department of Commerce,
Bureau of the Census, United States G-oneral Reports of
Merchandise, May 1946,
1 / Data, for years 1929-1933 are for general imports, i.e., total
imports for the year.
Subsequent to 1933 daSva are for imports
for consumption which equals general imports*, plus imports with-*
drawn from warehouses, minus imports stored, in warehouses*
About 95 percent of the value is represented by raw^ unprocessed
furs,
2/ Estimated,
Jj General imports; excludes fur manufactures.
209
_ u _
In all phases of the industry supply does not appear to he very
responsive to price changes* Raw fur production is largely beyond the
control of individual producers» the trappers, and fur farmers* The
labor force engaged in trapping probably does not Vary greatly in normal
times*. Although the manufacture of fur garments requires relatively
small amounts of capital* the labor force in the industry tends to be
inflexible because of habitual family employment in this area*
It
appears that a change in demand for fur garments resulting from a change
in the excise tax could not be expected to affect production greatly
for some time* It seems more probable that a change in demand would,
for. the short-run at least, be reflected in the prices received by distributors,
processors and producers*
B*
Character of demand
In general, consumer expenditures on fur garments represent a
larger proportion of income in the higher income groups than in the
lower income groups* l/ Purchases by the former are probably more
frequent and are in the higher priced lines* Certain types of furs
sell at very high prices but, in terms of numbers, most fur garments
are sold to consumers in the middle and lower income groups* Por 19^3
it was estimated that approximately 65 percent of fur coats (exclusive
of fur-trimmed coats) retailed for less than $200 and probably 80 per
cent at less than $300 . 2j
Most of the fur and fur-trimmed coats are priced higher than cloth
coats. A relative increase in the price of fur coats tends to induce
consumers to shift to cloth coats* Moreover, since furs are durable
goods some consumers will defer purchases when prices are considered
too high. Weather and style also are important factors in the timing
of demand.
The demand for fur good 3 increased during the war along with the .
rise in the level of national income* Sales, as indicated by tax
collections, reached a peak in 19 ^ 3 » declined somewhat in 19 ^ >
recovered slightly in 19*49» arid approached the 19'43 level in 19^(v (Table 2 )
The decline in I9 UU apparently was in part a result of the
increase in the excise tax from 10 percent to 20 percent# "*jj It also
appears that there was ”over-buying” in 19 ^ 3 » since sales in that year
1/ See p* 8 below*
"
2/ Office of Price Administration,
There are indications that other factors contributed to the decline*
since the production of non-taxable cloth coats, according to the Census
Bureau j decreased by 6 percent from 19^+3
19^*
21Q
- 5 Table 2
Sales of fur articles, estimated from
tax collections, 1942 - 1947 1/
!
•
Month
1942
1
Amount (In thousands)
1943
1944
;
:
♦
1»
’
•
1945
1946
$ 366,580
$ 549,430
$ 425,275
$ 443,870
$ 494,970
January
February
March
April
May
June
37,810
35,050
25,230
15,170
8,960
7,270
57,980
47,730
46,010
f 29,440
16,710
16,550
72,060
43,920
48,430
30,215
5,515
7,215
60,385
44,700
31,695
21,710
12,465
14,700
69,095
45,505
31,490
25,960
13,565
15,895
July
August
September
October
-November
December
8,510
23,450
37,160
39,160
59,260
69,550
21.080
30,740
49,930
58,420
76,420
98,240
9,540
18,340
31,855
41,270
58,530
59,385
16,690
18,060
40,455
49,540
59,200
74,270
18,145
26,170
50,205
46,6l5
75,595
76,730
Total
2.
Month
Total
January
^ ebruary
March
April
May
June
July
August
September
October
November
December
♦
1947
!
»
$ 66,070
43,095
33,245
23,332
12,226
13,587
Percentage change from same month of previ.ous year
19421943
+
50 i
+ 53
* + 36
+ 82
+ 94
+ 86
+ 128
+ 148
+ 31
+ 34
+ 49
+ 29
+ 41
i
:
19431944
- 22 fo
+ 24
-
8
+ 5
+ 3
- 67
- 56
-
55
40
36
29
23
40
:
:
19441945
;
ï
1945194:6
;
;
19+61947
+ 12 j>
-
- 16
+ 2
- 35
- 28
+ 126
+ 104
+ 14
+ 2
- 1
+ 20
+ 9
4 8
- 4
- 5
+ 6
- 10
- 10
-15
^
+
+
+
+
+ 9
4 45
+ 24
- 6
+ 28
4 3
+
4 7°
75
2
27
20
1
25
2/
2/
2/
Treasury Department, Division of Tax Research
Source: Treasury Bulletin»
1J Estimated by assuming current month’s collections apply to past
month’s sales. Excludes excise taxes.
2/ Not comparable with figures for months prior to April 1947 because of
change in law relating to taxability of fur*-trimmed coats.
1co icolex
1*
- 6 -*
211
were unusually high in relation to the level of inchme. 1J
It is difficult to interpret the effect of the wartime changes
in the tax rate on demand, "because of the large changes in level of
income and abnormal consumption patterns. J2/ However, it seems that
price increases normally would substantially reduce the number of fur
garments sold* Moreover, changes in prices of such garments may have
a relatively greater effect on sales of lower priced garments because
of the possible substitution between fur and cloth garments#
C,/ Outlook for the industry
In late lhh6 prices of fur coats fell sharply and clearance
sales were widespread for the first time since the beginning of the war*
Moreover, these sales occurred during the peak of the business season*
This situation appears to have resulted from a number of factors* With
the lifting of price control, prices were marked up, particularly on
the more expensive merchandise, and apparently buyer resistance developed.
In addition, the unusually warm weather during the fall season resulted
in the postponement of purchases, In view of the fact that the style
factor tends to limit sales to a given season- and that the season*s
supply had already been largely produced, the industry was faced with
the problem of either carrying stocks into-the subsequent year , or of
stimulating buying.by lowering prices* Although sales, as indicated
by tax collections, declined in January and February below the level
of th© same months of previous year, they increased slightly in March#
Although fur sales may be expected to continue substantially
above pre-war levels in view of the higher level of national income,
there is no clear indication of the future relationship between sales
and the level of income. The value of fur goods produced decreased
by more than 30 percent between 1925 and 1939» although the level of
disposable income changed very little, (Table 3 )
V.
Effects of the tax
A *. On profits
Wartime profits for the industry were apparently very favorable
as demand increased greatly* The tax may have reduced profits somewhat
1/ Comparison with sales of jewelry, which usually follow the same
cyclical pattern as furs, seems to support this view*
2 f There is very little pre-war information on this point#
¿/ Corporation returns of the fur industry showed a net loss of $159,000
in 1939 and a net income of $Ut2 million in 19^3* Over 60 percent of
the returns reported no net income in 1939 compared with less than
20 percent in 19^3* (Statistics of Income, Part 2, Table z )
. 7
212
•
Table 3
Value o f products o f the fu r goods industry,
and disposable income, 1925 - 1939
#*•
§
Amounts
•
Year
j
i Value of
; * products 1 / j
;
« (Millions )
Disposable
income 2 /
(Billions)
1925
1927
1929
1931
$ 25H .3
299*0
277.6
16 U .7
$ 7 0 .6
1933
1935
1937
so, 5
UU .5
1^3*8.
1 5 5 .6
56.3
69 «2
1939
log.O
6 7 .7
s
Indexes (1925 = 100 .0 )
* (
,
• Disposable
* Value of
•
income 2 /
! products 1J
•
t
•
7U.I
7 9 .6
5 9 .6
1 0 0 .0
117 .s
1 0 9 .2
6h.g
1 0 0 .0
1 0 5 ,0
3 1 .7
5 6 .5
6 1 .2
6 6 .1
6 ^ ,0
7 9 .7
96*0
9 5 .9
112.7
gU.U
Treasury Department, Division of Tax Research
Sources; Production, Sixteenth Census of the United S ta te s,
M anufactures,n Vol. I I , Dart 1*
Disposable income, 1929 - 1939» 11Survey of Current business,»
May I 9U2 , A pril I 9UU; 1925 , 1927» estimates of Department of
Commerce,
l/ In manufacturers* p rices,
2/ Disposable income represents income payments less personal taxes.
~ Department of Commerce data on income and expenditures used in
this study are those issued prior to the revisions published in
•’National Income” , Supplement to Survey of
y
’
"because of its tendency to reduce the demand.
In the absence of the
tax, further pressure would have been exerted on price ceilings.
As supply and demand conditions become more normal in the future*
the present relatively high rate of tax may be expected to affect
profits significantly.
Sales are likely to he substantially lower
because of the tax. This in turn will tend to lOWef prices to
distributors, processors and producers of raw furs. As a result of
the difficulties experienced during the 19^ 6- 19^7 selling season,
the industry has been undergoing a readjustment, and Under these
conditions the effect of the tax on the profits Of the industry may
be serious.
B.
On competition
The tax affects the competitive position of different producers
and sellers. Since cloth coats m a y b e substituted for fur coats, the
tax tends to discriminate against producers and sellers of fur coats,
particularly those in the lower price ranges.
The present treatment
of fur-trimmed coats results in a considerable disadvantage to the
specialized manufacturers and distributors of all fur coats and
separate fur articles such as neck-pieces. 1/
C,
On consumers "
.
Pur purchases constitute a relatively small proportion of total
consumers* expenditures. Expenditures for low priced fur coats have
a small effect o n ‘the Consumers' Price Index of the Bureau of Labor
Statistics. 2 l
Consumer expenditures for furs appear to constitute a substantially
larger proportion of family income as the size of the income increases.
Eor l$Ul- indicated expenditures on fur and fur-trimmed coats.in the
income class from $3,000 ~ $5,000 were more than twice as,large in
relation to income 'as such expenditures in the $1,000 - $2,000*income
class and more than three times as high as the expenditures in' the
If See pi 10 below,
2/ The weight given fur garments in .the Index was .1 in 1939? *2 in
I9 U 5 . The weights are based on the proportion ox furs to total
purchases during 1936 -1939 » and the price changes on rabbit-coats
since then.
„v
2/ Based on Bureau of L§bor Statistics, "Family Spending and Saving
in Wartime,” Bulletin Wo, 322, April 19^5’
» Bureau of Agricultural
Economics, "Rural. Family Spending and Saving in Wartime,"
Miscellaneous Publication Wo. 520, June 19 U 3 .
- 9 income class below $ 1 *000 * Consequently’» the tax$ to the extent thao
it increases fur prices to consumers, falls more heavily on the higher
income groups®
214
Expenditures on furs rise and fall more than proportionately
with changes in disposable income. \/ Thus, the tax has the effect
of withdrawing relatively more purchasing power from the income
stream in periods of high business activity than in periods of low
business activity.
VI f, Administration and compliance
It appears that there are approximately 1 0 ,0 0 0 taxpayers (mostly
retail stores) filing returns under this tax; However, many of these
taxpayers, such as department stores, do not file returns solely be
cause of the fur tax» since they are required to file returns under
the other retail taxes on luggage, jewelry* and toilet preparations.
The tax presents no unusual administrative difficulties, but
some evasion is stimulated by the existing high rate* There is a
limited amount of evasion of the tax on fur-trimmed coats in connection
with determining the value of components in the coats, but this is
not believed to be serious*
Although record-keeping imposes some burden on retailers, the
volume is not great because of the large unit sales; Some retailers
have experienced difficulty in securing information on the value of
components from manufacturers but the latter have generally been
cooperative.
VII*
Technical problems
The principal technical problems which arise under this tax aret
A,
1.
The treatment of fur-trimmed and lower priced fur coats*
2.
The timing of a change in the tax rate so as to
minimize disturbance to the industry*
The treatment of fur-trimmed coats and lower priced fur coats
In taxing fur articles,, it is necessary to establish a rule for
the purpose of determining when a garment made partially of fur and
partially of other .materials is to be taxable. From the imposition
of the tax on furs in 1918 until the passage of the Excise Tax Act
of 1947, all acts taxing furs have provided that articles whose
component material of chief value is fur on the hide or pelt were
taxable. Effective April 1 , 19^7» the law was amended to provide that
such articles are taxable only if the value of the fur is more than
l/ Based on Department of Commerce data, The data, indicate that a.
1—percent change in the level of disposable income may result in a
1*5 percent change in expenditures for furs. Disposable income
represents income payments less persona,! taxes. Department of^commerce
> data on income and* expenditures used in this study are those, issued
prior to the revisions published in ^National Income1*» Supplement to
Survey of Current Business, July 19 '7•
215
-
10
-
three times the value of the next most valuable component material.
The amended law has the effect of exempting most fur-trimmed
coats, l/ This raises questions of equity regarding the competitive
position of producers of fur and fur-trimmed coats and the consumers
of the respective articles. The present provision has the effect of
exempting fur-trimmed garments in which the value of the fur component
may exceed the value of the fur in the lower priced all-fur coats. 2 J
It also results in a substantial loss in revenue compared with the
”chief component rule” previously in effect and may entail increased
administrative difficulties and possibilities of evasion. The former
rule probably exempted most of the lower priced fur-trimmed coats and
in general the fur—trimmed coats that were taxable probably were
priced higher than most of the untrimmed cloth coats.
In order to reduce the discrimination indicated above, proposals
have been made to exempt both fur and fur-trimmed articles selling
below a certain price. Previous experience with this type of exemp
tion indicates that it would not be satisfactory to the industry and
would be difficult to administer. The Revenue Act of 193* provided
for an exemption of $75 (on the basis of the manufacturers sales
price). Fo3.loxiri.ng the enactment of the exemption, the producers of
raw furs contended that it forced down the prices received for their
furs and they supported repeal of the exemption in 193°* 3/ ^porience
showed that the exemption also afforded a broad fie3.d of tax evasion,
and increased substantially the difficulties encountered in administer
ing the law and the cost of administration. The incentive to tax
evasion probably would be much stronger under the existing 20—percent
1j Even with a cost for the cloth shell as low as $10, a non-taxable
garment could be produced With a fur set costing $30* After allow
ing for other costs and the manufacturer’s mark-up, the fur-trimmed
coat with the cloth shell costing $10 would probably be priced at
$75 or more by the manufacturer. With a higher cost for the cloth
shell a non-taxable coat could be made at a price above which
apparently very few fur—trimmed coats are produced* (See Tables U,
5» and 6 attached,for data on production of fur—trimmed and untrimmed
cloth coats.)
2 j Moreover, separate fur pieces are taxable under the present pro
vision, while the same fur attached to a garment is likely to be
exempt,
3/ Congressional Record, Vol. SO, p. 9105. The exemption was repealed
in the 1936 act, at which time the rate was reduced from 10 percent
to 3 percent.
216
-
11
-
Table 4
Par-trimmed coats produced, by manufacturers 1 price class, 1946
1/
(Thousands of coats)
:
Month :
Total
rM
Price class
$76,00;: Price
J Under 1$ 22 ,00- :$29.00- $39,00-* $59.00- *
and i
:unknown
• $ 22«00 ; 29.00 i 39,00 t 59.00 1 76.00 1
f
*
f over ;
•
%
Total
1,679
116
162
275
529
285
284
28
January
February
March
April
May
June
53
23
19
27
57
143
19
6
1
2
4
9
5
5
2
6
2
5
9
2
2
1
6
5
3
5
14
24
2
2
2
8
22
19
13
3
4
July
August
September
October
November
December
298
353
296
265
109
36
16
14
29
36
23
15
5
52
62
51
38
16
48
58
56
58
55
5
68
2
1
2
1
2
8
11
4
8
4
15
12
6
5
2
3
4
13
46
93
113
101
94
38
13
21
6
52
52
23
5
Treasury Department, Division of Tax Research
Source!
Bureau of the Census, Pacts for Industry, Series M67H.
1J Includes Junior, Misses 1 and Womenls coats»
2/ Less than one thousand,.
if
2
217
-
12
~
Table 5
Untrimmed cloth coats produced,
by manufacturers1 price class, 19^6 ¿/
(Thousands of coats)
•
•
•
Price class
Total * Under :$11.00-!$l6.00-:$22.00-!$29.00-J$39,oo; Price
*$1 1 .00 ? 16 .0 0 * 22.00 s 29.00 * 39.00 ; and :unknown
!
J
;
«
•
*
• over i
Month
Total
19,980
1,852
5 ,10 2
5 ,5 4 3
3,8 0 5
January
Pebruary
March
1,942
2,035
2,483
210
600
6 H0
261
30U
322
15 U
15s
SUl
568
581
665
April
May
June
2 ,16 2
358
1,174 • 172
Skz
588
181
1,4 9 0
298
20U
360
July
August
September
1,705
U15
UU7
195
215
October
November
December
191
283
2 ,1 1 3
193
100
128
151
312
338
• 313
U36
113
84
67
333
3 1U
2^U
520
1,8 0 5
1 ,^51+
531
k0 2
370
1.503
93
2 &k
361
343
240
296
25 s
25^
217
26U
1,2 0 5
360
62
S7
91
70
89
81
50
55
lk
23
22
Ik
115
162
151
11
lk 2
179
110
3
3
15 1
81
2
Bureau of the Census, Facts for Industry. Series
M$7H,
1 ,0 9 1
1 ,1 3 6
67
58
322
256
Treasury Department, Division of Tax Research
Source;
85
1/ Includes Junior, Misses’ and Women's coats.
5
218
- 13
T a b le 6
Humber of Women’s, Misses’ and Juniors’
coats produced, 1937 - 19 ^
(In thousands)
•
Year
’
*
»:■ *
Total
s Fur-trimmed
*
»
*
•
t
Untrimmed
1937
16,731
1/
1/
1939
1 7 ,2 6 7
i/
1/
19 U3
2^,032
3,255.
20,777
19 UU
21,738
2 ,2 6 5
19 .^ 73
19^6
21,659
1 ,6 7 9
19 ,9 2 0
Treasury Department, Division of Tax Research
Source:_ Bureau of the Census, Sixteenth Census of the United
States, ’’Manufactures,” Vol. II, Part 1, p . h38;
Facts for Industry, Series M67B,
1/ Hot available.
219
- 14 -
retail tax than it was under the iO-percent manufacturers’ tax in
1934.
B*
Timing of tax rate changes
Retail sales of fur coats are highly seasonal, the largest
number of coats being purchased by consumers during the fall and
winter months. Advance notice of a tax reduction during these months
would tend to induce postponement of buying. A postponement of buy
ing until the next season might result in a permanent loss in sales
and a reduction in the profits of the industry. The time when a tax
reduction would have the least adverse effect on the industry is
during the seasonal low point of consumer sales in the late spring
months.
Appendix
Structure of the Fur Industry
There are three principal stages in the production of fur
garments!
(a) the production of the raw furs^ (b) the dressing
of the fursf- and (c) the cutting, trimming and sexving of these furs
into the completed garment#
In the case of fur— trimmed coats the
furs are usually cut and fitted by fur manufacturers into nsets”
which are then sold to coat makers for assembly into the complete
co at •
A,
Raw fur -production
Data from the Fish and Wildlife Service and the Tariff Commission
indicate that normally over one-half the furs used in the United States
are imported. During the war the proportion of imported furs may
have increased, as labor and material shortages reduced domestic pro
duction.
1,
Imports
Total imports of all furs and fur manufactures were valued at
$126 million in 1929 . Imports dropped sharply after that year but^
rose again during the war when imports from practically all countries
increased, (Tables 1 ,7 ) Hoy&ver»data on the principal furs imported
indicate that the actual volume of imports declined during the war,
(Table S) The value of imports in the first quarter of 19^7 w as
less than half the imports during the first quarter of 19^-6.
There have been important changes in the imports of different
types of furs. Large increases have occurred in recent years in
imports of muskrat, caracul, lamb and sheep,
Silver fox imports were
placed under a quota by agreement with Canada in December 1939» whereby
the maximum imports of such furs were set at 1 0 0 ,000 . Imports from
Canada declined by 20 percent in number of skins between 1939 ®hd
I9U5, but the value almost doubled. Norwegian imports virtually
ceased after German occupation.
Imports from the Soviet Union became
important during the war, but almost vanished by 19^5* (Table 9)
2 . Domestic production
Data on domestic furs taken from wild animals are scanty. The
Fish and Wildlife Service estimates the catch during the 1 9 ^ -^ 5 season
221
- lG Table 7
United States imports for consumption of raw and undressed furs
(except black and silver fox) by country of origin
•
•
Country
*•
•
•
•
Total
Afghanistan 2 j
Argentina
Australia
British India
Canada
China
Prance
Iran (Persia)
Japan
Hew Zealand
Soviet Union
Sweden
Turkey
Union of South Africa
United Kingdom
All other
Value of fur imports
19*+0
;
19^5 1 /
$ 73.651.56k
$ 1 U3 ,1+7^,260
1 2 ,SG3 ,6 S2
3 1 ,7 2 3 .1 5 1
8 ,296,302
1 ^,6 39,310
3 .1 5 3 .S66
2 1 ,52 6 ,2 2 7
2.15U.U55
5 ,8 15,2 2 2
1,018,57S
1 0 ,693,730
6,287,034
2.U73.38U
2,OlU,958
1,129,887
1 ,1*28,567
9I+.8 ^
4 1^6.6
4 285*1
4 1 7 6 .H
4 209.6
4 1 0 1 *3 .
«■f—
-
53*5
3,810,865
4
8 9 .1
2 ,9 9 1 ,671*
4 10 9 .U
4
4
4
4
103 .U
222,983
1*6 9 ,9 10
7 ,759 ,76 2
2,781*,1*01
2 6 ,325,^ 18
1 ,66U,S19
1 ,0 92 ,8^+9
1 6 *636,.331
3 ,793,020
U, 10 2,68 7
6 ,56 U ,12 0
4
60.0
12,9^2,32^
United States Tariff Commission*
1/ Preliminary«
2/
4
1 ,15 1,2 6 8
Treasury Department, Division of Tax Research
Sources
•
'• Percentage
changes
i
I9 U0 data are for nother Asia. 0
6U6.6
13 2 .6
1 1 5 .0
4 36 .U
- *7 -
222
Table 8
Number, value and prices of p rincipal raw
furs imported, for selected years 1 J
Item
: Number of skins:
Value
: Price per skin
Mink
1936
1937
1938
1939
191ft
19^6
2/
85 8,k76
720,292
760,702
999,201
3% ,091
655.752
$ 3,1*37,660
3,233.2^7
2.507,657
3,210,337
6,302,575
6 ,k2 0 ,gkk
$ k .o o
k .i k
3 »30
3.21
18.26
9.79
1 2 2 ,3 5 k ,2 ft
115,290,1+60
72,937.69^
109,966,17k
96,176,000
120,02U,O65
20,921,056
1 9 . 699 . 5 s 9
6,903,^50
3,331,602
20,953,858
31,166,330
♦ l6
.17
.09
.03
.22
.26
102,ik5
105,3ko
12 0,S59
156,359
69.718
2k6,852
1.U77.268
2.177,1*35
1,886,586
2,290,157
2,131,727
10,186,013
Ik .k 6
20.67
15.61
1U.65
30.5g
k i . 26
U65,Ui7
277,361*
51^,231
66g,2lO
l,8 k 3 ,6 o o
2,983,191
671,123
355 , 65 s
k09,okk
623,k02
3,1*33,232
7,1*51,953
l .k k
1.23
.3 0
.93
1.36
2.50
2.797,235
5,230,39^
7 ,i5 7 ,5 3 g
15,966,k20
1*1 , 323 , 1*71*
73.835.212
5 .7 1
7.90
10.32
2,072,032
5,031,197
s , 16 0,56g
1,762,1*53
5,617,713
13.957,796
5/
Coney and rabbit 3/
1936
I937
193g
1939
I9UU
I9U6 2/
Marten
1936
1937
193g
1939
19to
19^6 2/
Muskrat
1936
1937
1938
i t
19^6 g /
Persian lamb k/
{ caracul )
1939
19Ï*
19U6 2/
lamb and sheep bj
(except Persian and
caracul )
1939 •:
1 9 ft
19^6 2/
.85
•So
1.71
Treasury Department, Division of Tax Research
Source* Compiled by the U. S• T a r iff Commission from S t a t is t ic s of the
U, S. Department of Commerce.
1 / Imports for consumption.
2/ January through November, Preliminary,
3/ Reported in pounds. Converted at the rat© o f 5 skins to the pound.
Ü J No separate data availab le prior to 1939 *
¿ / Not comparable with previous years sinoa no imports were reeeived
of the bheap Chinese and Japanese furs dtt^iftg IQkk,
223
- 18
Table 9
United States imports for consumption of s ilv e r or black fox furs,
by country of o r ig in , 1939 - 19^5
Year
.0
♦
s
•
Total
;
Canada
*
1.
1939
l 9ho
I 9hi
19 H3
19 H5 1 /
133.851
7 6 , 12 *+
9UJU 0
99.958
70,338
851*+37
3*+,807
71.373
73.391
6s ,ih s
?.
1939
19 U0
19 U1
19^3 ,
19 U5 1 /
:
5
j
; Norway :
: Sweden
•
j* Union «
•
A ll
other
Number of p e lts
35,293
38,888
13,581+
~
1+68
9*+3
210
iU,S7*+
26,1+21
~
Total value (d o lla rs)
2 ,U6g , i 6U 1 , 1+66,870
51+1 ,6 8 1
1 4U02,239
1,873,566 1.516,723
2,6U5,979 2,320.737
2 , 666 , 96s 2 , 1+7 1 , 18 *+
?
♦
••
770,280 12,99*+
825,523
2,523
60,890 i9*+,973
322 , sgU
23,532
-r
193
1,799
*+.09*+
133
2,215
11,9^5
h20
9,135
5.187
26 , 1+1+5
212,833
13
7
2/
86,980
1,78 7
167,197
6,067
lh.ooo
561
55
Pftrnpmtaste increase or decrease in Quantity from 1939.
1939
1940
19^1
19 U3
19^5 1 /
-
^3 $
29
25
^7
- 59 i
l6
- lU
- 20
* 10 $
-6 2
—
- 99
-r- 73 j> ■* 832
+l*+77
+•2021
+ 2702
31
-4* lohs
Treasury Department, Division of Tax Be search
Source?
IT. S. Department o f Commerce*
1/ Preliminary*
gl Value of imports is the foreign value.
- 97 #
23
- 100
- 100
224
- 19 -
at between $75 and $100 million« 1/ Louisiana, Michigan, Wisconsin
and Minnesota were the most important producing States in the order
named* 2/
In 1939, the only year for which complete data are availaole
on fur farming, the total value of silver fox and mink pelts taken
on farms was $8*3 million, of which over one-third came from Wisconsin,
11 percent from Michigan, and 7 percent from Minnesota. (Table 10)
The production of farm-raised silver fox pelts reached a peak of
approximately 350,000 in 1939 and has since decreased to about
200,000.
(Table ll) Of the total value of $5*9 million of silver fox
pelts taken in 1939, 38 percent came from Wisconsin, 15 percent from
Michigan, 7 percent from Colorado, and 6 percent from Minnesota.
(Table 10 )
B.
Fur dressing
Raw fur skins or pelts that have been cleaned, cut and cured,
or otherwise prepared, are known as dressed fur skins. All raw furs
must be dressed, not only to prepare them for manufacture into fur
goods but in order to preserve them* Some skins are also dyed to
provide uniformity of color or to improve appearance.
Most furs,
whether domestic or imported, are dressed in the United States primarily
because most undressed furs are admitted duty-free, while dressed furs
are dutiable.
Industry reports indicate that there were a total of 235 raw fur
processors in the United States in 1942, of which 185 were located in
the New York metropolitan area. Most of the processors work under
contract and operations are small-scale. In 1939, over half the
establishments had less than 21 wage earners and only 3 had over 250
wage earners. 3 / The eight leading firms did 39 percent of the total
.business of the industry in 1935. 4/
l/ Fish and Wildlife Service, "Annual Fur Catch of the United States,"
Wildlife Leaflet 276, July 1945.
2/ Ibid.
3/ Sixteenth Census of the United States, "Manufactures," 1940, Vol* I,
p. 136.
4J National Resources Committee, The Structure of the American Economy,
Part 1, p* 244.
225
-
20
-
Table 10
Value of p e lts taken on s ilv e r fox and mink farms,
United S tates, 1939
(In thousands)
gtate
Total
Wisconsin
Michigan
Minnesota
Colorado
*
•■
a
Total
*
:
S ilver fox
:
Mink
$ 8,327
$ 5,897
$ 2 tH30
2,998
2,232
858
350
>+25
766
73
2U9
931
399
Oregon
Hew York
Washington
Utah
Hog
32S
290
2H3
Vermont
Iowa
I llin o is
Idaho
Pennsylvania
Massachusetts
C alifornia
A ll other
172
110
17
235
m
179
111
78
192
190
lg2
157
2*
121
lOQ
136
169
69
152
lH6
128
9U1
109
H3
89
17
165
57
ill
7H9
&t
21
192
Treasury Department, D ivision of Tax Research
Source;
Sixteenth Census of the United States? A gricu ltu re,
United States Summary, Third Series, Table 39*
226
Table 11
Production of s ilv e r fox p e lts in the United S tates, 1929 - 19^5
Tear
J
f
Humber of p e lts
1929
1930
1931
1932
1933
70,000
85,000
110,000
130,000
150,000
193 U
1935
1936
1931
1938
170,000
185.000
200,000
275,000
300,000
1939
19^0
19^1
19^2
19^3
19 hU
19 U5
350,000
210,000
215,000
205,000
185,000
165,000
210,000
Treasury Department, Division of Tax Research
Source;
U. S. Tariff Commission, based on estimates
of the, Dish and Wildlife Service*
227
-
C.
22
-
F u r-g arm en t m a n u fa c tu rin g
The manufacture of fur garments is also carried on in small estab
lishments*
11A fur coat factory is a man with a needle and thread*
Even by New Y o rk s ta n d a r d s , where th e c r a f t has re a ch e d i t s h ig h e s t
d ev e lo p m en t, i t r e q u ir e s l e s s than $200 o f c a p i t a l to e q u ip a f u r m a n u fa c tu rin g s h o p .0 1/
Of the 2,175 establishments reported in 1939» 222 or over 10 ? e£~
cent, had no wage earners, while 1 ,19 2 , or over half, had less than 6
wage earners* 2/
The 3 largest firms accounted for only 3 percent of
the total output in 1935* 3/ Competition is apparently very keen*
V
Fortune, January 195&» P* 120
Sixteenth Census of the United States, Manufactures," 19^-0,
Vol. I, p. 136 .
3/ Ihe Structure of American Economy, pp* 25^-259»
228
- 23 -
PAST
I•
II
-
Excise Tax on Jewelry
Uescript ion of the tax
The tax applies to sales at r e t a il of the following a r tic le s :
a ll a r tic le s commonly or commercially known as jew elry, whether real
or im itation; p earls, precious and semi-precious stones, and imita
tions thereof; a r tic le s made o f, or ornamented, mounted or f it t e d
with, precious metals or im itations thereof; watches and clocks and
cases and movements therefor; gold, gold -plated , s ilv e r , or s te rlin g
flatware or hollow ware and s ilv e r -p la te d hollow ware; opera glasses;
lorgnettes; marine glasses; f ie ld glasses; and binoculars.
The tax is payable.hy the person who s e lls at r e t a il any of the
taxable a r t ic le s .
The p rin cip al exemptions provided under the tax are as follows:
1 , Sales o f apy o f the a r tic le s for (a) relig io u s
purposes, (b) exclusive use by State and lo c a l governments, and
X c ) f o r export,
2 « Sales of the follow ing a r t ic le s : Surgical instruments;
watches designed for use by the blind; frames and mountings for
eyeglasses; fountain pens, pen cils and pipes i f the only parts
of these items which consist o f precious metals are e sse n tia l
parts not used for ornamental purposes; buttons, in sign ia , cap
devices, e tc , prescribed for use in connection with uniforms of
the armed forces of the United States.
II,
Changes in the tax since 1917
A. tax was le v ie d on jew elry under the Revenue Act o f 191? and a tax
was imposed on clocks, wa-tches and binoculars under the Revenue Act of
1918. The tax rates and e ffe c tiv e dates of changes since then are
shown below*
Changes in tax rates since 15ft7
Revenue Act
»
•
[ Effective date ,
9
«
Rate
1917
Oct. 3
3 $ of mfrs, sales price a/
ISIS
Eeb. 2U, 1919
5$ of retail sales price
192 U
July 2
1926
Eeb. 26
Repealed
1932
June 21
10$ of mfrs, sales price
193 U
May 11
1936
June 23
Repealed
I.9 UI
Oct. 1
10$ of retail sales price
19^3
April 1, I9 UU
20 $ of retail sales price
i/
¿/
§J
¿/
a/ Excluding clocks, watches, binoculars»
\J Excluding silver-plated flatware, watches selling for $60 or
less, and all other items selling for
or less»
of Excludirg articles (other than watch or .clock parts) selling
for less than $ 3 *
d/ Excluding all articles selling for less than $ 25 *
_e/Alarm clocks selling for not more than $5 and watches selling
for not more than $ 6 5 , taxed at 10 percent.
ill*
Revenue collections 193^— 1 9 ^
This tax is the most productive of the four retail excises and
yields approximately the same amount of revenue as is obtained from
each of the taxes on transportation of persons and transportation of
property. Annual collections are shown below?'
230
- 25 Collections, fiscal years 1936 - 1947
(in millions)
Eiscal year
1939
1940
1941
IV*
Fiscal year
Collections
*t
H
•
to
1936
1937
1938
j
,7
•4
—•
•»
-
1942
1943
1944
1945
1946
1947
*
*
Collections
$
41.5
88.4
113.4
184.2
223.3
236,6
Economic background of the industry
The principal items in the tax base are jewelry proper and clocks
and watches. (Table l) Since the various items under this tax are
produced in different industries, it is difficult to indicate their
relative importance in the tax base. However, it appears that, in 1939,
jewelry (including precious stones) may have amounted to about half
of the total. Clocks and watches probably represented about one-third
of the total. Gold and silverware and plated ware (excluding tax-exempt
silver-plated flatware) constituted the bulk of the remaining tax base,
with small amounts attributable to jewelry and instrument cases, field
and opera glasses, pens, pencils, pipes, buttons, and other articles
made of or ornamented with precious metals or imitations thereof.
A.
Character of sup-ply
1*
Structure of the industry
The production of items taxed as jewelry is carried on by a number
of different industries with varied structures and merchandising
policies. The three principal industries are described below;
Jewelry« Including precious stones; Aside from the precious stones
and imitations used for settings, jewelry is largely supplied by domestic
manufacturers* Although there may be important differences with respect
to individual products, the character of the industry is generally
competitive,
l/ The production of precious-metal jewelry requires a
¿7 National Resources Committee, The Structure of the American Economy,
Part 1, June 1939, pp* 262-263,
231
- 26 Table 1
Domestic production of jewelry, at
manufacturers’ prices, 1939
(In millions)
Item
Total
i
1J
Amount
$ 235#8
Clocks, clock movements and parts
Watches, watch cases, materials and parts
28.3
61.2
Jewelry
Precious metal
Costume jewelry
96*1 2/
62.2 2 /
33.9
Jewelry cases, and instrument cases, etc,
Silver-ware, plated ware, and solid
gold ware 2 /
field glasses and opera glasses, etc.,
(non-prismat ic)
16.7
33*3
.2
Treasury Department, Division of Tax Research
Source:
Sixteenth Census of the United States,
"Manufactures," 1940.
J Excludes silver-plated flatware, valued at $ 25*4 million*
2/ Excludes value of precious stones not set in establishments
included in Census definition of manufacturing establishments#
1
high degree of skilled craftsmanship and is carried on in relatively
small plant èi (Table 2 ) Costume jewelry is usually produced from cheap
metals, copper, brass, tin and steel* and thus lends itself to mass
production methods and the use of unskilled labor* Xn 1939 the valu-®
of costume- jewelry production was about one-half as large as the value
of precious^metal jewelry production. At that time most of the produc
tion was in small establishments* 'Table 2 )
The production of this
type of jewelry increased rapidly during the war, but the extent of
the increase is not known. While production problems of the preciousmetal industry are to some extent the same as those of costume jewelry,
and the two industries are located in the same general area» very few
firms produce both kinds of jewelry* l/
Practically all precious stones and imitations ar q imported %] and
account for the greatest proportion of total jewelry imports* (Table 3 '
The supply of precious stones is generally controlled by producers,
particularly in the case of diamonds* The cutting of these stones
is usually done prior to importation, although cutting increased in
the United States during the war. The producers of mountings do not
ordinarily set the stones in the mountings. This is usually done by
specialists, but it may be done by the retail jeweler* The preciousstone jewelry purchased by the consumer, therefore,' represents the
combination of two products produced under substantially different
conditions.
Clocks and watches: Practically all clocks and clock-type watches
sold in the United States are domestically produced* but a substantial
portion of jewelled-type watches is imported* (Table U)
Most of the
imports consist of movements which are assembled in the United States*
Domestic production is highly concentrated.
Xn 1939 there were 7^
establishments in the industry, including those assembling imported
movements. Practically all domestic jewelled-type watches are produced
by four concerns.and most of the clock-type watches are produced by the
same number of producers* 3/ The same concerns do not produce both
1/ The Census classification is based on the material used*
However,
costume jewelers used silver to a substantial extent during the war*
2/ There was considerable expansion in domestic production of synthetic
and imitation precious stones during the war*
3/ U. S. Tariff Commission, Watches, War Changes in Industry Series
Ho, 20 , 19^-6 , p* 6 * Clock-type watches are watches with nonjewelled escapements, usually sold in drug and variety stores.
233
- 28 Table 2
Distribution of jewelry manufacturing establishments
by number of wage earners, 1939
Numoer of
wage earners
Total
:
1*
Total
628
380
152
50
86
51 100
101 250
251 500
501 - 1, 000
1,001 and over
48
29
6
10
1 «
6 21 -
5
20
50
51 - 100
101 - 250
251 - 500
501 - 1 ,0 0 0
1,001 and over
150
2
6
16
15
16
90
470
10
7
4
3
4
-
89
106
47
17
13
9
4
37
41
25
9
5
8
2
8
210
63
34
15
4
-
2
22
12
4
2
3
7
Value of product s (In thousands)
$262,750
0
886
”
2*
Total
289
102
5
Silverware
and
plated
ware
42
74
20
.
Number of establiLshments
1,441
0
1 6 21 -
Clocks
and
watches
Jewelry,
î Watch- : Costume
» precious
* cases ; jewelry '*
metals
1,720
13,609
25,560
28,052
34,277
29,513
87,890(x)
2/
42,129
$84,846
2/
523(x)
1,229
4,257
8,176
5,420
23,112(x)
2/
42,129
$9,792
$33,922
416
567
1,184
1,153
2,063
4,409
-
264
1,403
5,329
5,028
3,456
5,446
12,996(x)
2/
$71,419
1,395
10,610
16,248
14,166
13,245
9,767
5,988(x)
w
$62,771
61
656
2,187
3,418
8,248
6,818
41,385(x)
n
Treasury Department, Division of Tax Research
Source!
Sixteenth Census of the United States, "Manufactures," Vol* I*
1/ Includes assemblers of imported parts and movements*
2/ In cases where any figure for a size group cannot be given separately
without disclosing data for individual establishments, it has been
combined with the group where an (x) appears*
w
234
- 29 -
Table 3
Value of import# of Jewelry and similar items
(In thousands)
Year
Average
1931-35
'
Precious metals,
Jewelry and
plated
ware i f
:
;
;
:
Clocks, ]
watches, *
etc.
\
Precious
stones
and
imitations 2/
$ 5.9US
$ 3-,^57
$ 18,997
63,351
9,01*2
10,275
72,315
11,963
7,231
10,13g
13,1*78
7*+,Uo 6
8,312
12,083
13,670
Total
$ 28,1*02 '
Average
1936-40
1939
I9UO
19^1
I9U 2
19U3
19HU
69,505
86,917
152,630
162,375
1H.95H
,U08
?U,256
Uh,678
1 7
¿*7,101
UU,o3h
50,21U
1*8,796
hs,6s6
50,576.
9^,082
100,320
Treasury Department, Division of Tax Besearch
Source;
Statistical Abstract of the United States, I9U 5, 19^6*
1/ Excludes gold and silver in ore, bullion or coin.
2/ Includes pearls.
235
- 30 -
Table b
Apparent consumption of watches by type,
1931 - 1 9 ^
Year
1931
1932
1933
1931+
1935
1936
1937
1938
1939
I 9 UO
19 Ul
19^2
19 U3
19 ^U
Total
7,3
5.6
6 .3
9 ,2
10 .U
1 U.5
15*2
1 1 ,8
1 3 ,6
15*5
18*1
13 .5
9 .6
s.U
Number (in m illions)
Domestic
S
movements
• Imported
J swelled •
Clocks » move-»
* ments
watches of;
type
q u ality : watches :
If
1 .0
.5
.6
1 ,0
1,3
1 .8
2 .1
5-5
U.6
5 ,2
7,3
7.9
0.9
,u
.b
s Watches containing
s imported movements,
• as percentage of
•
m^ ,
: Total
•
Tot a l . e t c h e s
; consumption.^ q u ality
12 ,3 1°
7 ,1
6 ,3
9*2
11*5
15 ,2
20, b
U7 .U #
UU.U
70.8
6 1 ,7
61,4
62.3
7^.6
8 U.2
83.1
10 .5
9*9
.9
1 .2
2 .2
3 .1
iii.
2.9
3 ,5
28.8
21*3
2 . 2
7,0
8 ,8
9 .8
2 . 6
1 1 . 2
^•3
23.8
39,3
23,3
l.U
1 .8
us
1 .5
iX
6
.U
.1
.1
5 .3 g /
S.O 2/
6.9 2/
2 2 * 6
2 2 . 1
ho.o
1+7 .u
U8.0
55,0
59.6
Treasury Department, Division of Tax Research
Sources
U, S. T a r iff Commission, Watches, War Changes in Industry,
Series No. 20 , I 9U6 , p. l 6 ,
/ Measured by number of movements reported.
imports by unknown smuggled amounts,
2 / Preliminary,
1
Figures understate actual
types of watches, hut the producers of clock-type watches also produce
clocks* The industry has indicated that substantially all of the clocks
are produced by twelve manufacturers. Zj Most of them make both the
electric and spring-wind type of clock*
The lower priced Jewelled watches, most of which are imported,
compete to a certain extent with the higher priced clock*-type watches.
Domestic jewelled watches are predominantly in the higher price ranges.
Part of the imported watches also sell in the higher price ranges, but
probably substantially more than half are sold in the medium and lower
price ranges.¿'The number of importers of watch movements increased to
over 500 during the war, when imported watches rose to 82 -oercent of the
total in I9 UU compared with less than JO percent prior to 19^0.
(Table b)
While domestic production of jewelled— type watches was continued during
the war, the production of clock-type watches virtually ceased.
Competition between the large domestic producers of clocks, watches
and assemblers of imported movements takes the form of advertising of
brand names, and little price competition is evident among them* Most of
the price competition arises from the smaller assemblers of watches with
imported movements* Retail sales of domestic clocks and watches are
usually made at prices suggested by manufacturers, but there is some
price cutting when retail sales are low* The proportion of domestic
jewelled watches sold directly to retailers by manufacturers and assemblers
has increased substantially* 4/
gilver and other ware;
Taxable silverware and plated ware
constitutes one of the smaller components of the jewelry tax base,
Production is fairly concentrated, the four leading firms making
57 percent of the total product in 1935, while the 8 leading firms
1/ Testimony of Clock Manufacturers Association of America, before
the House Ways and Means Committee, June 9, 191+7 *
2/ Watches, p* 9* Por the years 1939-,,^li the Tariff Commission
estimates that three-fourths of the domestic watches retailed for
more than $3 2 .50 ; one-fourth between $11 and $3 2 .50-7 and that
one-half of the imported watches retailed between $17.90 and
$32.50.
¿/
P* 7* Only about 5 percent of the total of the Swiss move
ments imported in the United States before the war were completely
cased. During I9 U 3-UU, however, J8 percent of the foreign
movements were imported already cased*
it/ Ibid,
p.
7
,
237
- 32 -
made 68 percent of the total product, if The large firms are old,
established companies whose appeal to customers is more on the basis
of the reliability of trade name than on the basis of price. Most of
the silver-plated flatware and sterling silver flatware are produced
by the same manufacturers.
Silver-plated flatware, exempted from the
present tax, in 1939 exceeded in value the production of silverware
and other plated ware*
2*
Wartime changes
During the war domestic production for civilian use of most of
the items in the tax base was sharply curtailed because a large number
of plants were converted to war work and also because of restrictions
on the use of materials and labor shortages. 2/ Imports increased in
value and quantity but domestic production declined, and most manufac
turers rationed their sales to dealers* Least affected were makers of
costume jewelry, since they could use wood, feathers, glass,and other
materials as the availability of metals was reduced.
Silver was relative
ly abundant and was used extensively. However, even producers of such
products rationed the supply to dealers.
3,
summery
It would appear that the supply is more flexible for some articles
in the tax base than for others.
In the case of precious stones,
domestic clocks and watches, and silver and other ware, there is a
substantial degree of concentration of production* Producers of these
articles would tend to meet a reduction in demand by making adjust
ments in supply rather than by cutting prices. The manufacturers of
jewelry, particularly costume jewelry, appear to compete more largely
on a price basis and would tend to meet a reduction in demand by
lowering prices.
B*
Character of demand
Some of the items subject to the jewelry tax are considered essen
tial. Por example, most adults need some sort of clock or wa.tch. The
demand for most of the items in the tax base, however, is for the pur
pose of adornment, Persons in the higher income groups tend to spend
1/ National Resources Committee, The Structure of the American
Economy , pp, 2^-U~2'45.
2/ The value (at manufacturers' prices) of clocks and waotches produced
declined from $89*5 million in 1939
$6^*2 million in 1 9 ^ , in
spite of higher prices in the later year. Jewelry production declined
from $113 million to $h0.1 million; silverware and plated-waro from $62,8
million to $UO,g million* (Bureau of the Census, Sixteenth Census; and
Eacts for, industry,
Series 5Q~3'*
238
- 33 -
proportionately more on jewelry than do persons with lower incomes. %]
Because of the optional nature of the expenditure, the durability and
high unit prices of many articles, the demand for most of the products
is probably sensitive to price changes. The lower priced costume
jewelry has become an article of mass consumption, and the demand for
this type of jewelry may be substantially less sensitive to price changes
than the demand for precious-metal jewelry.
The demand for jewelry increased sharply during the war. Estimated
consumer expenditures in 1945 were approximately twice as high as in
1941, (Table 5) the increase exceeding the rise in disposable income.
A substantial part of this increase reflects the excise tax which was
not imposed until late in 1941, Although no accurate adjustment can be
made for the amount of tax, 2/ it seems clear that sales (exclusive of
tax) also increased by more than the increase in the level of income,
Monthly reports of sales of jewelry stores indicate that there was
some pre-tax buying before the tax changes in 1941 and 1944, and also
that sales decreased immediately following the changes.
(Tables 6 and 7)
In each case, however, sales subsequently increased to new high levels,
In view of the rapid increase in income and abnormal consumption
patterns during the war, it is not possible to determine the extent to
which the existence of the tax may have reduced sales or prices net of
tax. Production was limited on many items and higher prices (net of
tax) might have been realized on the limited supplies, if the tax had
not been in effect.
C♦
Outlook for the industry
Supplies of jewelry, plated ware, and clocks and watches are ex
pected to increase rapidly in 1947, Clock production already exceeds
the pre-war rate. Zj Production of approximately 8 million clock— type
watches is scheduled for 1947 (about 3 million below 1941), and manu
facturers of jewelled watches expect record production for the year, 4/
Since imports of Swiss movements may be expected to continue at a high
level, 5/ the total supply of watches may approximate demand at current
1/ See p. 38 below*
2/ Be cause of exemptions and differential rates it is not possible to
derive sales figures from tax collections.
3/ U. S, Department of Commerce, Domestic Commerce, January 1947, p. 38.
4/ Watches. op. cit,, p. 3.1,
5J In order to aid the reconversion of domestic watchmakers, the United
States prevailed upon the Swiss Government to limit shipments here to
7,7 million movements for the year ending March 31, 1947, This
quota, however, is only about 1,5 million below peak shipments (1945).
239
Table 5
Consum ers1 e x p e n d itu r e s f d r je w e lr y and w atch es
a s p e r c e n ta g e o f d is p o s a b le income 1/
Year
Expenditures
for jewelry
and watches
(in millions)
1929
1930
193X
1932
1933
193 *+
$ 530
Ugi
30 s
2U 5
2 U0
260
1937
307
1935
1938
1939
19U0
19^1
19*+2
19 U3
19UU
19U 5
19 U6
5 6 .3
6 5 .2
69*2
6 2 ,9
6 7 .7
296
3 U1
3 88
72*9
88.7
505
619
goo
900
1 ,0 0 0
1 ,1 1 6
2/
gj
2/
2/
Percentage of
di sposable
income
(In billions)
$ 7 9 .6
70*7
59*6
U 5 .6
U U .5
51.0
162
187
1936
Disposable
income
1 1 0 .6
12U .6
137 .*+
1 3 9 .6
lUb.O
.6 7 $
,6 g
*52
•5^
.3 6
>37
•U3
,Uo
M
.5 0
*53
•57
.5 6
,6U
.6 6
•72
.76
Treasury Department, Division of Tax Research
Source:
U. S. Department of Commerce, Survey of Current Business,
and unpublished estimates of the Department,
1/ Excludes expenditures for repairs*
2/ Unpublished estimates*
Includes excise and sales taxes.
240
- 35 Table 6
Index of sales of jewelry and silverware by department stores
' reporting to l’edera! Reserve Board 1/
1»
Month *
•
Total
January
February
March
April
May
June
July
August
September
October
November
December
2.
t
Month '
*
Total
Index (Average monthly sales, 1941 » 100)
1941
1942
*
•
:
•
5
1943
*
1945
1944
*
•
t
1946
100
114
136
150
173
220
56
63
70
74
86
90
59
74
121
92
125
291
67
71
79
83
88
94
71
89
114
128
157
329
80
94
99
109
116
116
95
106
128
145
201
349
90
113
158
91
120
113
87
113
134
156
230
389
105
118
146
112
154
146
112
124
145
183
256
477
127
155
173
189
208
195
145
182
196
225
305
535
Bercentage change from same month
19411942
î
*
4* 14 fo
:
1944-
;
;
1945
:
f
?
+ 19 $
+ 10
<f>
:
January .
February
March
April
May
June
+ 20
■+ 13
+ 13
+ 19
+ 32
4- 25
4- 13
+ 20
+ 60
4- 12
4- 2
4- 4
♦f 31
4- 32
4* Ü3
- 17
4* 3
- 3
July
August
September
October
November
December
+ 20
4- 34
- 8
4- 7
+
+
+
+
20
6
39
26
13
+ 19
4- 12
+ 13
+ 28
4- 6
5
8
4- 14
4> 11
+
+
*
1947
5
134
153
178
180
213
previous year
19431944
19421943
}
-JL-
19451946
+ 15
4- 27 i
+ 17
4- 4
— 8
4* 23
+ 28
4- 29
4- 21
4- 31
4- 18
4- 69
4- 35
4* 34
4- 29
4* 10
4- 8
4- 17
4- 11
4* 23
4- 29.
4- 47
4- 35
4- 23
4- 19
4- 12
:
:
Treasury Department, Division of Tax Research
Source; Federal Reserve Bulletin»
1/ Includes Federal excise taxes except where stores report such
taxés separately*
19461947
4- 6 $
- 1
+ 3
- 5
4* 2
- 36 Table 7
Sales of jewelry stores
1*
Month
Total
587
$ ,
2.
Month *
•
Total
1944
$ 753
$ 964
$ 981
$ i. 071
i, 240
40
39
41
44
50
54
51
54
58
63
72
74
58
61
89
52
70
70
59
57
68
62
82
82
77
74
82
89
99
101
67
69
72
80
99
205
59
66
72
80
98
206
72
73
72
88
110
246
84
91
86.
96
116
¿45
48
55 .
58
68
75
181
40
47
60
37
47
139
July
August
September
October
November
■December
1947
1946
1945
1943
30
30/
31
36
44 ’
46
January
February
March
April
May
June
Amount«(In millions)
1942
1941
1/
$ 71
71
79
61
97
96
Percentage change from same month, previous year
19411942
î
:
19421943
4
28
4
4
33
30
32
22
14 '
17
4
4
4
4
4
January
February
March
April
May
June
.+
4»
+
4*
+
July
August
September
October
November
December
+ 20
+ 17
■— 3
4 84
4 60
4 30
+
28 i>
28
39
42
43
44
4 37
4
4
4
1943- ' î
:
1944
U
;
40
26
24
4 18
.4 32
4 13
i
"
2 i
4.,•14
4 13
4 53
- 18
- 3
- 5
- 12
4
0
0
- 1
4
1
19441945
4
9 $
2
— 7
i .- 24
4 19
4 17
4 17
4 22
+ 11
0 ,
4 10
4 12
4 19
•'
19451946
$
|
19461947
+ 16
4 31
■ + 30
4- ¿31
4 44
*+• 21
4 23
4
4
4
4
4
-
8 i>
4
4
9
2
5
17
25
19
19
6
*
Treasury Department, Division of Tax Research
Sources
Survey of Current Business»
& Less than .5 percent,
1J Includes charges for jewelry repairs* Excludes Eederal excise taxes
except where reporting stores do not state tax separately*
242
- 37 prices plus tax. The costume jewelry industry apparently has "been able
to obtain necessary materials, and the development of mass production
methods may speed up production. 1J
Sales of jewelry stores during the second half of 19^5
the .
first half of I9 U 6 were considerably higher than would be expected in
view of the level of disposable income during these periods* 2/ More*«
over, there has been no indication of a decline in retail sales* 3 /
Consumer expenditures fluctuate widely with changes in the. level of
income, but prior to the war there was no clear evidence of an upward
trend in consumption in relation to income*
V,
Effects of the tax
A,
On profits
The tax probably curtailed price increases (net of tax) and profits
to some extent during the war, since price controls'on jewelry were not
very effective and supplies were limited. However, profits'were apparently
well above those of pre-war years. ]+/
After supply and demand have become adjusted to peacetime conditions
the present rate of tax may have a significant effect on profits* Purchases
of most of the items in the tax base normally would probably be reduced sub
stantially by the tax* Industry adjustments to any reduction in purchases
will differ depending upon the nature of the supply for different articles*
In the case of precious stones, clocks, som© types of watches and silver
and other ware, producers appear to be in a position to meet a reduction
in purchases, at least in part, by curtailing output. The limitation of
1/ «Costume Jewelry,11 Fortune. December 1946,
2/ Paradiso, Louis J *t «Retail Sales and Consumer Income Since V-J Day,«
Survey of Current Business. October 1946.
3/ Tax collections during the first four months of 1947 were about the
same as in the corresponding period of 1946, However, changes in tax
collections are not necessarily proportionate to changes in the volume
of sales*
4/ Het income of jewelry manufacturers filing corporation income tax re
turns (excluding costume jewelry) rose from $3*7 million in 1939 to
$31,2 million in 1943? net income of clock and watch makers rose from
$9.6 million to $22.5 million, (Statistics of Income, Part_.J3, Table 2)
However, a good part of the capacity of both types of manufacturers
was devoted to making war goods, and it is impossible to segregate
jewelry and watch profits*
- 38 -
243
output would tend to maintain uiiit profit margins, but the reduction in
volume of sales would lower aggregate profits. The producers of jewelry,
particularly costume jewelry, do not appear to be in a position to limit
output to a substantial extent and would tend to lower prices. An
adjustment of this type is likely to result in a relatively greater re
duction in aggregate profits than where the industry is able to limit
output. The sales and profits of retail dealers would also be affected
by the adjustments made by the producers of the different articles, but
the adjustments made at the retail level would vary depending upon competi
tive conditions.
B,
On business costs and competition
The tax is imposed upon some items entering into business costs,
but the amount is probably not appreciable.
The tax may have adverse competitive effects on producers in
certain price areas. This is especially noticeable in the case of
clocks and watches, since the tax rate for alarm clocks selling for
over $5 and watches selling for over $65 is twice as high as the tax
on articles selling below these prices, A larger proportion of domestic
than imported watches probably sells for over $05 and the differential tax,
therefore, tends to discriminate somewhat against the domestic producer.
C,
On consumers
Consumer expenditures for jewelry are considerably larger than^
for furs, luggage or toilet preparations and are given some weight an
the Consumers' Price Index of the Bureau of Babor Statistics. If
Data for 19^1 family expenditures and income indicated that the
proportion of income spent for jewelry, watches, clocks, and silver
and silver-plated ware was approximately the same for all income groups
between $500 and $5,000. Average expenditures in the income group
below $500 represented a considerably lower proportion of income. 2,
Expenditures for jewelry appear to fluctuate much more than disposable
income, if, Consequently, this tax has the effect of withdrawing relatively
more purchasing power from the income stream in periods of high business
activity than in periods of low business activity,
Since, in the construction of the Index, changes in prices of jewelry
are assumed to be the same as changes in the prices of certain other
items, the effect of the excise tax does not enter in the computation.
2f Based on Bureau of labor Statistics, "Family Spending and Saving in
Wartime," Bulletin No* 822, April 1945; Bureau of Agricultural Economics,
"Rural Family Spending and Saving in Wartime," Miscellaneous Publication
Ho, 520, June 1943.
3 / Based on Department of Commerce data. The data indicate that a 1-per
cent change in level of disposable income may result in a 1,7-percent
change in expenditures for jewelry. See also Table 5.
244
- 39 -
VI.
Administration and compliance
Approximately 100,000 returns are filed under this tax. However,
many of these taxpayers, such as department stores, do not file returns
solely "because of the jewelry tax since they sell other items subject
to tax, such as luggage, cosmetics, and furs,;
The tax presents some administrative difficulties because of the
wide variety of items covered.
Classification problems arise in some
areas, but they are not extensive. The necessity of record-keeping for
small sales adds to the compliance burden of taxpayers.
VII,
Technical problems
The principal technical problems which arise under this tax are?
A.
1.
The use of exemptions and differential rates.
2.
The treatment of sales at auction.
3.
The treatment of articles ornamented with precious
metals or imitation precious metals.
U.
The timing of a change in the tax rate so as to minimise
disturbances to the industry,
Exemptions and differential rates
Suggestions have been made for a dollar exemption on jewelry items. 1/
Exemptions of this character generally would lead to tax avoidance and
involve serious administrative difficulties. Under a price exemption one
of the common methods of avoiding the tax is to split sales into units.
Eor example, in the ca,se of jewelry, precious stones might be sold
separately from the mountings, or silverware may be sold by the piece
instead of in sets. Previous administrative experience with price exemp
tions under the jewelry tax has been unsatisfactory, 2/
An exemption-based on the selling price of articles may result in
competitive inequities. On articles priced slightly above the exemption
level, the sellers may have to absorb the tax or even discontinue sale
of the article, The effect will depend on the exact character of the
T / Testimony of the Jewelry Industry Tax Committee b e f o r e ^ h e House
Ways and Means Committee, June 11, 19^7,
2/ Price exemptions were provided under the Revenue Acts of I92 U, 1932
and 193 *+* (See table on rates, p. gU above)
245
- HOexemption* The competitive effect is more serious where the tax applies
to the total sales price of articles priced above the exemption level
than where the exemption is such that the tax applies only to the excess
of the price over the amount of the exemption* if The latter type of
exemption, however, results in a larger revenue loss.
The present differential tax rates on clocks and watches illustrate
the competitive problems created by a price exemption. Under present
law, alarm clocks selling for not more than $5 and watches selling for
not more than.$65 are taxable at 10 percent, while the respective articles
selling above these prices are taxable at the full rate of 20 percent. 2J
The 20-percent rate applies to the total price and not to the excess
over $5 or $ 65 * As a result, the tax is substantially higher on the
clock or watch selling slightly above these prices than on those selling
at or below such prices. This presents pricing problems for producers
and may discriminate against particular producers. For example, most
of the imported watches are in the lower*-price range and are subject to
the 10-percent rate.
Since domestic producers concentrate more oh higherpriced watches, a larger proportion of their product is subject to the
higher rate.
B,
The treatment of sales at auction
In general, under present law,, sales by auctioneers or other agents
who are not also engaged in retailing articles for their own account are
not subject to tax. This situation often places established retail
jewelry dealers at a competitive disadvantage and results in a substantial
loss of revenue.
It appears that the present law does not cover this
question*
C*
The treatment of ornamented articles
Under present law, articles ornamented with precious metals or
imitations thereof are taxable.
In the case of fountain pens and pencils,
it has been contended that this discriminates against the use of gold,
silver- and gold-filled materials because producers may u s e other materials,
such as stainless steel, and make a. tax-free article. 3 / Numerous articles
1/ The exemption proposed by the Jewelry Industry Tax Committee provides
for excluding from the tax base the first $25 on the price of all
articles*
£/ The 20-percent rate applies to all of the non^alarm type clocks*
This discriminates against both the sellers and purchasers of those
types of clocks,
3/ Testimony of the Jewelry Industry Tax Committee before the House
Ways and Means Committee, June 11, I9 H 7 *
24G
- 41 -
are ornamented with precious metals and the ornamentation usually
results in a substantially higher—priced article* The exemption of
articles with a small amount of ornamentation would create administra
tive difficulties and in order to prevent tax avoidance, it is adminis
tratively necessary to provide for the inclusion of these types of
articles; otherwise the ornamentation might represent most of the value
of the article. Under present law, pens and pencils are not taxable
where only the essential parts consist of precious metals. Extension
of this rule to other types of articles probably would not be feasible,
P.
Timing of tax rate changes
Purchases of jewelry are highly seasonal, about 25 percent of the
sales occurring in November and December* Advance notice of a ta^c
reduction during these months would induce some postponement of pur
chases and, if purchases were postponed until the following season,
the industry might suffer nonrecoverable losses in sales* The time
when a tax; reduction would have the least adverse effect on the industry
is during the seasonal low point of sales in the late summer months#
PART III
I,
247
Excise Tax on Luggage
Description of the tax
The present tax applies to sales at retail of the following
principal groups of articles:
1 , Trunks, valises, travelling bags, suitcases, satchels,
overnight bags, hat boxes for use by travellers, beach bags,
bathing suit bags, brief cases, made of leather or imitation
leather, and salesmen's sample and display oases.
2, Purses, handbags, pocketbooks, wallets, billfolds,
and card, pass, and key cases,
3, Toilot cases, bags and kits (without regard to size,
shape, construction or material from which made) for use in
carrying toilet articles or articles of wearing apparel.
The tax is payable by every person who sells at retail any of the
taxable articles,
The exemptions provided under this tax are (a) sales for the
exclusive use of State or local governments, and (b) sales for export,
II.
Changes in tax since 1918
A tax on luggage was levied under the Revenue Act of 1918. The
tax rate and the effective dates of changes since that act are shown
below:
Changes in tax rates since 1918
Revenue : Effective :
Act
:
date
:
1918
May 1, 1919
Rate
•t
10$ of retail
Revenue ; Effective :
Act
:
date
1941
Oct, 1
sales price a/
1921
Jan.l, 1922
5$ of mfrs,
sales price b/
1924
July 2,1924
Repealed
Rate
10$ ©f mfrs.
sales price
1943
Apr. 1,1944
20$ *f ye*
tail sales
price
pocketbooks, etc. over $7,50 eaeh,
b/ On trunks over $35 each? on suitcases, etc, over $25 each; on purses,
pockethooka, etc, oyer $5 eaeh,
248
* 43 III *
Revenue collection^ 1942-1947
Collections from this tax yield approximately the same amount of
Revenue as is obtained, from each of the taxes on furs and toilet
preparations* and approximately one-half the revenue derived from the
jewelry tax. Annual collections are shown below:
Collections» fiscal years 1942 - 1947
(In millions)
Fi seal year
*
*
•
Collections
*'*
*•
Fiscal year ?
Collections
#
2 .8
1945
1943
5.7
1946
81.4
1944
13,1
1947
84.6
1942
$
a/
$
73*9
a/ Tax changed from a manufacturers 1 to a retail tax effective
April 1 , 1944, and extended to cover handbags, wallets and
similar articles.
IV*
Economic background of the industry
The principal items in the tax base are women’s handbags, pocketbooks, purses, suitcases and travel bags. The manufacturers 1 value of
women’s handbags, etc. in 1939 was slightly larger than the value of
luggage and other miscellaneous cases. (Table l)
A.
Character of supply
The articles in the tax base are produced in several different
industries; the principal ones are:
(l) women’s pocketbooks, handbags
and purses, (2 ) small leather goods', and (3) luggage. There is
apparently some overlapping in the articles produced by these industries
and the Census classification has changed from time to time. The
industries are included in the broad classification of leather and
leather products but a substantial portion of the.reported production
is from materials other than leather.
Women’s pocketbooks. handbags and purses: The women’s pocketbook
industry is considered part of the women’s', misses’, and children’s
apparel goods industries. As in the case of the other industries in
this group the number of enterprises is relatively large and the size
249
- m
-
Talkie 1
Value at manufacturers’ prices of women’s handbags,
luggage and miscellaneous cases produced in 1939 ¿ /
;
Product
Value.
(In millions)
*
*
#
$ 1 0 1 .1
Total
Women’s nocketbooks, handbags,
■purses, etc.
Suitcases and travel bags
Billfolds and wallets
Trunks
Brief cases
Satchels, Boston bags, hat boxes,
etc.
Key cases
Sample cases
A ll other
§1 iHi
2/
ho 7
2 1 ,g
8.$
4,0
. 3*3
2 .S
1.7
1.5
1 .8
Treasury Department, Division of Tax Besearch
Source:
Sixteenth Census of the United States, ”Manufaetures,
Vol. XX, Part 2, l g W T p p . 5»7 and 6 5 .
l/ Covers only articles produced in industries classified by the
~ Census as,” "Suitcases, brief cases, bags, trunks and other
luggage” ; "Women* s pocketbooks, handbags, and purses” ; and ”-Small
leather goods.” . Does not includetaxable items, such as knap
sacks, duffle-hags, etc., produced in other industries.
2/ Includes some items not taxable.
of individual firms is typically small. (Table 2) In 1935 the four
leading firms produced only 8 percent of the total output of the indus
try, the 8 leading firms only 16 percent. 1 /
Only a limited amount of capital investment is required to enter
the industry. The ease of entry results in keen competition and
generally low profits. 2/ Most of the firms in the industry specialize
in making bags selling at low, medium or high price lines. Handbag
makers do not generally make other products, and usually confine their
production either to fabric or leather bags. There is little evidence
of control by manufacturers over retail selling prices and brand names
are uncommon. Bargain sales were common in retail stores before the war
and have again become evident.
Small leather goods: The structure of the small-leather-goods
industry is similar to that of the women*s pocketbook industry, but the
humber of firms and value of products is substantially smaller. (Table 2)
The principal products are billfolds, wallets, card and key cases.
Some
effort is now being made to introduce brand names, especially in the case
of m e n ’s wallets and billfolds. For the most part, however, the items
are of the nature of novelties, changing from season to season and with
styles.
Luggage: Production in,the luggage industry is somewhat more con
centrated than in the women’s pocketbook and small-leather-goods in
dustries.
In 1935 the 4 largest producers accounted for 17 percent of
the total output, the 8 largest for about 26 percent. 3/ There are,
however, a relatively large number of small shops.
(Table 2) The ease
of entry and the competition among firms prevent industry control of
supply and prices, Mosb of the large firms make all price lines of
luggage but the small firms generally specialize in bags requiring a
large degree of handwork and selling at higher prices.
Some of the
larger producers sell under brand names which are nationally advertised,
but the products of the industry are not generally marketed on a brand
basis.
Production expanded sharply during the war in spite of restrictions
on the use of leather and metalt The number of workers in the women’s
handbag industry increased from 14,000 in 1939 to approximately 25,000
in 1946, and the number of establishments from 286 to about 550. 4/ The
supply of handbags was increased also by means of increased imports,
l/ Temporary National Economic Committee, Monograph No. 21, Cpmpetit,ion
and~ Monopoly in American Industry. 1940, p. 29. For this year the
Census classification included card cases with women’s pocketbooks,
2/ Ibid, p. 45.
1/ Ibid, p. 29.
4/ Hearings Before Committee for Reciprocity Information, January 16,
1947*, p. 162.
251
Table 2
Dumber o f .establishments and wage earners, in
womèn’s pocketbook, luggage and small
leather goods industries, 1939
$
i
||pBÊ
1.
Total number of establishments
Total number of wage earners
Average number per establishment
0
5
20
50
o
o
rH
r
rH
to
101
251
501
1»001
’ 329
8,326
118
3,615
49
25
31
Distribution of establishments by number of wage earners
286
Total
250
500
- 1,00Q
- 2,500
Small
leather
goods
1286
14,048
W omen’s pocketbooks,
handbags and -purses
Dumber
*
. Percent
of
,
of
establish *
.
total
ments
Jiimber of
wage earners
1 6 21 -
Industry totals
:Women’s pocket-! Suitcases, brief :
cases and other :
:books, handbags:
luggage
i
:
and -purses :
Item
2.
i • ■' 8 *
6
66
78
58
33
36
8
1
1 0 0 .0 .
2 .1 $
:Suitcases, brief cases: Small leather goods
:
: and other luggage
V
Dumber
*
Dumber
. Percent '
*
of
t Percent
of
:
of
j
•
establish- * - of
establish
.
total
\
’
•
f
ments
'* total
ments
♦
f
329
11
23.1
27.3
20.3
11.5
105
116
55
26
1 2 .6
2 .8
15
.—
.3
1
100 r0
3.3 $
31.9
35.3
16.7
7.9
4.6
■
—
.3
118
3
34
45
15
2.5 i
28.8
38.1
12.7
12
1 0 .2
7
5.9
1.7
—
2
—
treasury Department, Division of Tax Research
Source:
1 0 0 .0
Sixteenth Census of the United States. ’’Manufactures,n yol, I,
Part 2 , ppT 157, 161, 165.
- U7 -
252
principally from Argentina. 1/ The number of establishments in the
luggage and small-leather-goods industries also rose, but exact figures
are not available. 2 / Imports of luggage also increased. 3/
In most respects the character of these industries is such that
supply can be expected to be rather responsive to price changes. The
wartime experience presents evidence of a rapid adjustment to meet an
increase in demand. The substantial expansion in the industry occurred
despite wartime restrictions. The principal factor contributing to the
flexibility of expansion seems to be the ease of entry into the business.
It has been stated that "the industry requires little capital, small
knowledge, and a little bit of machinery." 4/ There is less evidence
regarding the rapidity with which supply is reduced in response to a
reduction in demand, The low level of profits in these industries under
normal conditions would indicate that once firms have entered the industry
they 'attempt to continue in business for sometime after reduced prices
or volume result in losses.
B . Character of demand
The demand for women’s handbags is in part necessitous because of
its function as a container for numerous and assorted articles of
personal use. However, it has tended to become a part of the costume,
and represents a substantial element of adornment somewhat similar to
costume jewelry. The demand for luggage is generally complementary to
the demand for travel. The items in the tax base are durable goods, and
purchases can be postponed whenever prices are considered too high.
Consumer expenditures on handbags represent a larger proportion of income
in the higher income groups than in the lower income groups. 5/ Data
are not available for luggage, but the nature of the items suggests that
the distribution of expenditures may be similar.
The demand for these taxable items increased so sharply during the
war that it outstripped supplies in spite of the expansion in facilities
and employment. A large part of the output of the travel luggage and
small leather goods was sold to the Government and through Post Exchanges.
i f
2/
}J
&/
5/
5/
Total value of imports of children* s and women’s leather handbags
increased from $163,000 in 1939 to $U,U million in 19^5« Imports
from Argentina, consisting mainly of bags made of reptile leathers,
amounted to $3.6 million .in 19^-5* (U. S. Tariff Commission)
In 1939 the total number of such establishments was U5 O; by 19^7
there were 500 establishments in the Luggage and Leather Goods
Manufacturers Association of America plus an unknown number not
members of the Association. (Hearings, p. 181)
From $75!+,000 in 1939 to $2 .9 million in 19 I+U. (U. S, Tariff
Commission)
Hearings, p. 182
See below, p. 5^*
hearings, (Sales through Post Exchanges are made free of tax.)
*
- us
With the end of the war and the removal of restrictions on the use of
materials, sales to civilians increased.
The increase for all the items
in the tax hase between 1945 and 1946 amounted to about 13 percent, but
it was substantially higher on luggage proper.
(Table 3) Although
removal of restrictions on travel stimulated the demand for luggage, at
the same time military sales of luggage declined sharply.
The wartime experience with the changes in tax rates is difficult
to interpret because of the restrictions on supplies, large changes in
the level of the national income, and tax-free sales to members of the
armed forces at Post Exchanges. However, in 1944, the year when the
present tax rate became effective, department store luggage sales, in
cluding tax, were 9 percent below those of 1943, while handbag sales
were only 3 percent above 1943.
(Tables 4 and 5) Exclusive of tax,
it appears that the decline in luggage sales was about 15 percent and
that sales of handbags declined by about 12 percent. l/ There was some
recovery in sales in 1945 but sales exclusive of tax did not reach the
1943 level, although the level of income had increased. The nature of
the demand for items in the tax base and the decline in sales after the
wartime tax increases suggest that normally the higher prices resulting
from the tax would reduce demand substantially.
Qi
Outlook for the industry
There are indications that the travel luggage industry faces problems
of over-expansion and conversion. The large wartime demand by members of
the armed forces has diminished rapidly. Although civilian sales have
increased sharply, primarily because of increased travel, this increase
may not compensate entirely for decreased military demand. It has been
reported that some firms have closed down, but part of this has been due
to the necessity of conversion to the use of leather, which is again
becoming available. Because of the decreased military demand and because
of the desire of dealers to clear their stocks of goods made of substitute
materials, prices of travel luggage have been falling.
Sharpest drops
occurred in the highest price lines, some items being slashed by 50
percent in December 1946. 2/
Similar reports of plant closings have been made on the women’s
pocketbook and small-1eather-^goods industries. 3/
1/ There had been large increases in department store sales in 1943.
These sales figures do not reflect, of course, any increase that
may have occurred in sales at Post Exchanges.
2/ Hearings.
3/ Statement submitted to the House Committee on Ways and Means, June
6 , 1947, by the Pocketbook Workers’ Union, Hew York.
254
~ ^
-
Tali)le 3
Taxable sales and index of department store sales ef
handbags and luggage f l^Hl - I9 H 6
Year
•
5
Index of department store sales
*Taxable s a l e s ,■ (Average monthly sa le s, 19^1=100) 2/
;
to ta l 1 /
Handbags
*
Duggag©
(M
illions) *
4"
191+1
100
100
I 9U2
1/
119
120
19 U3
1/
150
lH6
I 9UU
1/
155
132
19^5
$ 382.8
170
lU7
I 9U6
U32.6
196
223
Treasury Department, Division of Tax Research
Source;
For taxable sales, Treasury Bulletin; for department
store sales, federal Reserve Bulletin,
1f Based on collections of Federal excise taxes*
Does not include
Federal excise tax*
2/ Includes Federal excise taxes except when store reports such
excise separately*
¿/ Prior to April 1 , I9UU, the tax was levied on manufacturers’
sales and applied only to luggage.
255
- 50 -
Table *4
Index of sales of luggage by department storos reporting to
Federal Reserve Board 1/
1.
Index (Average monthly sales, 19*41=100)
19142
Year
19*41
Total
100
120
1*46
57
53
59
59
97
127
11*4
62
56
67
January
February
March
April
May
June.
July
August
September
October
November
December
;
19 US
; 19*47
105
S7
113
125
99
163
75
121
1*46
126
125
113
116
15 s
252
89
87
108
131
1*43
I32
109
150
176
I89
15*4
186
2*47
270
107
'128
9*4
122
115
1*4*4
119
122
1*46
325
132
2*43
122
163
302
238
1*47
23*4
179
125
112
162
263
129
185
332
*47*4
Percentage change from. same month of previous year
4
9
4
0
+^7
+ 2
- 2
+ 7
September
October
November
December
i
223
166
4 1*4
June
July
August
19^5
1*47
122
4 20
January
February
March
April
May
:
132
157
176
19*42
Total
19*4*4
;
126
1 9 ‘1 " % 19*42- ;
Year
19^3
75
99
12*4
66
96
270
R.
;
•t.20
■4 39
+ 7*4
4 52
4 20
: 19*43
$
:
19*43i M
TV
'
19*4*4-"" n g ï ï s : 19*46
19*45
,4 11 Ì
4 22 i
-
4 69
4102
4 S7
4 bS
+ 59
4 *42
4 36
4 13
- 17
- 12
+ 30
4
- *41
- 23
- 17
- 2*4
- 13
- 5
- 5
4 *4R
0*7
4 27
4 27
-
3
6
4 *4
- 25
4
9 $
4
*4
4
*4
2
- 12
- 3*4
-1 7
0
- 1
4 11
4 17
4 32
+
52 $
+
37
4 51
+
39
4
*42
4 61
4 60
4 62
+ 62
4 S7
4 60
4 26
: 19)467 "
1
19*47
+ 17 %
4 1
4 10
4 7
+ 9
4 *43
Treasury Den?trtment, Divi sion of Tax Research
Source:
Federal Reserve Bulletin,
7/ Includes Federal excise taxes except inhere stores report such taxes
separately.
.
- 51 -
Table 5
Index of sales of handbags and small leather
goods by department stores reporting to
Federal Reserve Board 1/
1.
Index (Average monthly sales, 192+1=100)
;
19U2
19^3
:
19 W
; 19^5
i
; 19^7
Tear
; 19^1
Total
100
119
150
155
170
196
53
S5
117
96
S9
5H
69
109
102
115
267
53
60
llU
120
102
102
67
3*+
131
136
lUS
311
71
103
12*+
177
133
136
97
110
157
160
196
339
36
105
212
122
133
126
S9
113
157
15s
203
350
ss'
106
220
113 ;
163
l6 l
112
122
l66
179
216
333
103
127
19>
2b l
197
139
119
'156
133
191.
232
January
February
March
April
May
June
July
August
September
October
November
December
{
19^
101
ll6
203
19U
193
bio
2 . Percentage change from same month of previous year
Year
-, 192+1 : 19U2
Total
+ 19
January
February
March
April
May.
June
July
August
Soptember
October
November
December
+ 20
+ 13
+ 3^
+ 3
4* 6
+ 15
+ 2b
+ 22
+ 20
t 33
+ 29
+ 16
%
r l$ b 2 -~ ~ 7 T W : 19W: 19^3
+ 26
i
+
3%
4* 21
+ 32+
4* 2
+ 72
4- 71
+ 9
4* 2+3
- 31
0
4- JO
« 7
+ 33
- 3
4* b $ .
4* 3
+ 31
0
+ 20
•- 1
4- 13
4” 6
+ 32
+ 3
4* 9
: I9 W - ' : 192+5 -"
: 19 U3 ': 19^§
4* 10
4* 2
+ 1
4- b
3
4* 23
+ 23
4* 26
+ sr
4- 6
4- 13
4- b
4* +1
fo
+ 15
4- 17
+ 20
- 12
+102+
4* 21
4- 17
4- 6
4- 23
• 4-13
4- 7
4* 7
4- 6
: 192+6: 192+7
$
- .2
**
fa
J
4- 7.
- 19
— 2
Treasury Department, Division of Tax Research
Source: Federal Reserve Bulletin«,
1/ Includes Federal excise taxes except where stores report such taxes
separately.
There has been no indication of a significant reduction in the
dollar volume of retail sales compared with 19^+6. (Table 6 ) However,
this may partly reflect higher prices and lower physical volume. Unless
further substantial increases in national income occur, the volume of
business may not be sufficient to utilize the capacity developed during
the war. Prior to the wartime expansion, consumer expenditures on
luggage had tended to decline in relation to the level of disposable
income. 1/
V.
Effects of the tax
A.
On profits
Wartime profits for the industry were apparently very favorable as
demand increased greatly. 2/ Because of the shortage of supplies price
ceilings were imposed on the taxable items during the war but probably
were not fully effective. To the extent that the price ceilings were
effective the tax probably did^not affect profits very appreciably.
As conditions of supply and demand become more normal the present
rate of tax may affect profits significantly. The level of purchases
is likely to be substantially lower because of the tax. This tends to
reduce prices to producers. The extent of the reduction will depend on
the adjustments made in the industry.
In view of the apparent over—
expansion of the industry during the war, it would probably be some
time before ■supply would become adjusted to the lower level of consumer
purchases. Under these conditions the present tax would exert a
downward pressure on prices and profits of producers and distributors.
B.
On business costs and competition
Businesses purchase some luggage and' to that extent the tax raises
general business costs, but the total amount of such expenditures is
probably small.
The principal items in the tax base serve a specific function for
which there are no close substitutes - Within the industry those producers
whose production is more largely in the lower price lines may be less
affected, because the tax increases the absolute price difference between
the loiter and high priced goods.
1/ According~to data of the Department of Commerce, expenditures for
luggage in 1929, when disposable income was about $80 billion,
totalled $97 million; in 1941, when disposable income was $89 billion',
luggage expenditures were only $68 million.
2/ Although separate profit data on these industries are not available,
industry representatives have indicated that the business was highly
prosperous during the war years (Hearings)
258
*
:
- 53 Table 6
Sales of handbags, small leather goods and luggage
estimated from tax collections, 192+2+ - 19^7 l/
v
Month
Total
January
February
March
April
;
(in millions)
192+24
■ -
2/
2/
2/
2/
May
June
July
Augus t .
$ 260
27.6
25.4
September
October
November
December
30.5
29.7
32+.6
*+5-7
22.9
;
192+5
f
192+6
;
19^7
$ 362.6
$■ 2+32.6
2+3 .2+
2 1 .1
50.3
23.9
2 7 .U
21-1 . 7
' $ 5^-1
2 0 .6
33-7
38.5
30.5
35.9
29.9
3 1 .2
.2 7 .1
33-8
31. 6 ■
1 9 .2<
3^.0 ■
30.5
30 .u
5 0 .1
-
2 6 .1
35.6
36.0
26,3
36.2+
29.3
3 7 .>+
2+9.6
Treasury Department, Division of Tax Research
Sourcet
Treasury Bulletin.
1/ Estimated by assuming current month’s tax collections apply to prior
month’s sales. Excludes amounts paid for Eederal excise tax.
2/ Estimates for retail sales prior to May 1 9 ^ cannot be made because
tax was on manufacturers’ sales prior to April 1, 192+2+.
- 5 1» -
C♦
259
On consumers
Purchases of handbags and luggage constitute a relatively small
proportion of total consumer expenditures and they are not an important
element in the cost of living. Handbags, however, are given some weight
in the Consumers 1 Price Index of the Bureau of Labor Statistics. 1/
Consumer expenditures for handbags appear to represent a substantially
larger proportion of family income as the size of the income increases. 2 /
Data for 1941 indicated expenditures on handbags in the income class
from $3,000 to $5,000 were roughly 50 percent higher in relation to
income than such expenditures in the income classes below $ 2 ,00 0 . Ho data
on the distribution of expenditures by income groups are available for
other products in the tax base. The character of the demand for the other
products, however, suggests that the expenditures for them are also
relatively greater in the higher income groups.
Expenditures for both handbags and luggage appear to fluctuate more
than disposable income. 3/ Consequently, this tax has the effect of
withdrawing relatively more purchasing power from the income stream in
periods of high business activity than in periods of low business activity.
V I . Administration and compliance
It appears that there are approximately &§>,000 taxpayers filing
returns under this tax. However, many of these taxpayers, such as
department stores, do not file returns solely because of the luggage tax,
since they are required to file returns under the other retail taxes on
jewelry, furs and toilet preparations.
The tax on luggage raises substantial classification difficulties,
largely as a result of the extension of the tax in the 1943 act to card,
pass, and key cases and adoption of the catch-all phrase "toilet cases
and other cases, bags and kits (without regard to size, shape, con
struction or material from which made) for use in carrying toilet articles
or articles of wearing apparel." The necessity of record-keeping for
small sales adds to the compliance burden of the taxpayers.
l/ Since, in the construction of the Index changes in the prices of
handbags are assumed to be the same as changes in the prices of
wearing apparel, the effect of the excise tax does not enter in
the computation,
2/ Based on Bureau of Labor Statistics, "Family Spending and Saving
in Wartime," Bulletin N o t 822, April 1945; Bureau of Agricultural
Economics, "Rural Family Spending and Saving in Wartime," Miscel
laneous Publication Ho, 520, June 1943.
3/ Data of Department of Commerce indicate that a l~percent change in
disposable income will induce a 1 .4~percent change in handbag
purchases, and a 1 .8-percent change in luggage purchases.
- 55 -
VII.
260
Technical problems
The principal technical problems which arise under this tax are:
1.
The treatment of small leather goods.
2.
The timing of a change in the tax rate to minimize
disturbance to the industry.
A.
The treatment of small leather goods
The catch-all phrase ,f--- and other cases, bags and kits (without
regard to size, shape, construction or material from which made) for use
in carrying toilet articles or articles of wearing apparel” and the
inclusion of card and pass cases have resulted in considerable adminis
trative and compliance difficulty.
Under the catch-all phrase such cases as comb, manicure, and
toothbrush cases, etc. are taxable. However, since these cases are not
usually sold separately from the product contained therein, the dealer
has to determine the percentage of total value attributable to the case.
Thus, on a comb and case selling for 10 cents, the collection by the
dealer of a tax on the small portion of the price represented by the
case involves a considerable amount of work in relation to the revenue
involved.
The difficulty with regard to card and pass cases arises from the
fact that many items, while primarily used for other purposes, can also
be used as card and pass cases. Thus, small picture frames could be^
designed to hold cards and passes, as could some check holders distributed
by banks. In view of the possibility of alternative uses, manufacturers
and retailers are not always certain whether such items are taxable.
Furthermore, firms making non-taxable items which can be made to serve the
purpose of card and. pans cases would have a competitive advantage over
those making products that are taxable.
The coverage of the tax could probably be redefined to avoid some
of the inequities and difficulties that now arise.
B.
Timing of tax rate changes
The major seasonal peak for sales of the principal taxable items
occurs in December, with secondary peaks in A p m l and June. Advance
notice of a tax reduction during these months would induce some^post
ponement of purchases and, if many purchases were postponed until the
following season, the industry might suffer nonrecoverable losses in
sales, A tax reduction geared to the seasonal low point of sales during
the late summer months would minimize the postponement of purchases.
261
- 56 -
PART
Xm
IV
~
Excise Tax on Toilet Preparations
Description of the tax
The tax applies to sales at retail of perfumes, essences,
extracts, toilet waters, cosmetics, petroleum jellies, hair oils,
hair dyes, aromatic cachous, toilet powders and any similar substances
to be used or applied for toilet purposes.
The tax is payable by every person who sells at retail any
of the taxable articles* The sale of toilet preparations to per
sons operating barber shops, beauty parlors, or similar establish
ments, for use in the operation thereof, and not for resale, is
considered a sale at retail*
The exemptions provided under this tax are (a) sales for the
exclusive use of State or local governments, and (b) sales for export*
II,
Changes in the tax since 191^-
À tax on toilet preparations was levied under the Revenue Act
of 19lU* Such items as toilet soaps and toothpastes, which were
taxable under earlier acts, have been excluded from the tax base
since the Revenue Act of 193^* The tax rates and the effective
dates of changes since the 191 ^ act are shown below*
262
- 57 -
Changes in tax rates since 19 lU
Revenue Act
*
Effective date
*
Rate
•
191*+
Oct. 22
Stamp tax
a/
19 x6
Sept. 9
Repealed
1917
Oct. 3
2$ of mfrs. sales price
1918
May 1, 1919
1¿ per 25/ or fraction of retail
saleé price b/
1921
Jan. 1, I922
Repealed
1932
June 21
10$ of mfrs. price
1932
July 1
Tax on toilet soaps, etc, repealed
I9 U0
July 1
11$ of mfrs. price
19 Ul
Oct, 1
10$ of retail price
19 U3
Apr, 1 , lqUU
20$ of retail price
cj
a/ Per sale price not over 5 cents, l/S of 1 cent; over 5 cents
and not over 10 cents, 2 /S of 1 cent; over 10 cents and not
over 15 cents, 3 /2 of 1 cent; over 15 cents and not over 25
cents, 5/2 of 1 cent; each additional 25 cents or fraction
thereof, 5/2 of 1 cent*
b/ Toilet soaps and toilet soap powders, 3 percent of manufac
turer's sale price, effective February 2 5 » 1919 *
0/ 5 percent on toothpastes, toilet soaps, etc.
Ill*
Revenue collections 1936^19^-7
This tax produces approximately the same amount of revenue
as is obtained from each of the taxes on luggage and furs, and less
than half the
yiold from the jewelry tax*' Annual collections
are shown below?
Collections, fiscal years 1936-19^7
(In millions)
Fiscal year
1936
Collections
«•
[\
1
Fiscal year
1 3 .3
19'42
1937
193 g
IS. 3
19^3
191+u
1939
l9*+0
19 U 1
1 1 .5
$
1 6 .3
7«S
6 .7
19^5
19*!6
19^7
’
Collections
$
22.R
32.7
a/
S6 . 6
95.6
95.5
a/ Effective Oct. 1 , I9 Î+I, rate changed from 11 percent on manufactarer’s price to 10 percent of retail price. Figure includes
collections from both retail and manufacturers’ tax.
17.
Economic background of the industry
The principal items in the tax "base are:
Toilet creams, which
in 1939 accounted for about l 6 percent of the total manufacturersr
value of toilet preparations; face powder, which accounted for about
13 percent; and perfumes and toilet waters, which together accounted
for 13 percent.
The remainder consists of various preparations, most
of which individually account for a small fraction of the total.
(Table l)
A.
Character of supply
The toilet preparation industry varies from small, home shops to
large producers whose products are distributed nationally and inter
nationally.
(Table 2) Capital investment in the industry is small
and n e w firms can enter the field without difficulty if the operations
are on a small scale. However, growth usually requires considerable
outlay for advertising and promotion.
1j A relatively few plants
1/ Advertising and promotion costs constitute about 25 percent of
the total costs of the industry, according to Standard and Poor’s,
Industry Surveys, ’’Drugs and Cosmetics,” August 2 3 , 19 ^ 6 , Part 2 .
264
- 59 Table 1
Production of principal toilet preparations, 1939 l/
(In millions of dollars)
Product
Total
Creams, other than shaving cream
Pace powders
Perfumes
Toilet waters
Pace lotions
Talcum powders
Hair dressings
Lipsticks and lip rouges
Deodorants
Hair tonics
Manicure preparations
Shampoos, containing soap
Other toilet powders
Other rouges
Hair dyes
.
■
Hath salts
Depilatories
Other toilet preparations
|
Value
j
$ 122*9
19*4
15.4
8 .6
*•*
^*8
7.3
8,9
8*1
5 .6
4*9
4.7
4.6
3.4
- 2*3
Percent of
total
1 0 0 .0 i
15.8
12.5
7.0
6.3
6 .2
6 .0
5.6
5.0
4*6
4.0
3.8
3.7
.
2*8
1 .8
1.4
^*2
1 .0
*4
15.0
1 2 .2
.3
Treasury Department, Division of Tax Research
Source*.
Sixteenth Census of the United States,
1940, Vol, II, Part 1.
1/ At manufacturers’ prices.
”Manufac tur es,”
265
- 6o
Table
2
fencer of establishments in thé perfume, cosmetic
and 6 the* toilet goods industries, by number of
wage earners* 1939
dumber of
wage earners
;
:
NUmbei* 6f
establishments
Percent of
total
;
:
100.0 i
539
Total
0
28
5
1 -
5
314
58
6 -
30
104
19
21 -
50
46
9
51 -
100
21
4
101 -
250
19
4
251 -
500
6
1
1-
*
501 - 1,000
,
Treasury Department, Divi sion of Tax Research
Sour ce;
*
Sixte enth Census of the United States, HHanufactures,” 1940,
V o l . I, p* 48,
Less than ,5 percent.
*
266
therefore account for a substantial proportion of the en tire output*
In 1935, the four largest firms produced one-quarter of the to ta l
product, while the eight large st companies accounted for 41 percent
of the t o ta l, l / These firms manufacture a wide lin e of products
covering p r a c tic a lly the entire t o il e t goods f ie ld . 2/
Manufacturers of nationally advertised a r tic le s issue stipu lated
lis t .p r ic é s for most of th e ir items and the Fair Trade a c ts , e ffe c tiv e
in most S tates, provide for maintenance of these prices on re-sa le s
of the a r t ic le s . These prices are not always maintained by r e ta ile r s
and sales at reduced prices ere not infrequent. However, r e ta ile r s
who desire to emphasize p rice appeal have concentrated upon private
brands which are not price-maintained. The advertising of these
r e ta ile r s may emphasize reduced p rices, and frequently carries d etailed
technical comparisons designed to show that the product bearing the
p rivate brand is equivalent to the n ation ally advertised, p ric e maintained a r t ic le . 3/ Prices and costs vary widely in th is f ie ld .
The ingredients are usually a small element of to ta l cost and repre
sent a decreasing proportion of the to ta l for the higher priced. ,
products, U/ A dvertising and s e llin g expenses and cost o f containers
account p rin c ip a lly for the wide differences in prices of sim ilar
a r tic le s .
The wartime expansion in production of t o i l e t preparations
indicates a substantial degree o f f l e x i b i l i t y in supply. The output
of the industry, as measured by taxable sa les,
increased during
the war by approximately 5^ percent, (T^ble 3 )
During th is period
the Bureau of Labor S t a t i s t ic s ' Price Index far cold creams and face
poxtfders increased by only the amount of the tax. 6/ (Table h) The
expansion that took pla.ee during the war seems to have resulted from
1/ National Resources Committee, The Structure of the American
Economy, Part 1 , "Basic C h a ra c te ristics,” June 1959, pp. 256- 257 .
Zf Based on examination of the products o f the firms reported on
in Moody’ s In d u stria ls, 19^6»
?
Temporary National Economic Committee, 76 th Congress, 3**J Session,
In vestigation of Concentration of Economic Power, Monograph 1 ,
"Price Behaviors and Business P o lic y ,” 19^1*
U/ In an examination of over J O products, i t was found that the
ingredients in no case constituted as much as 20 percent of the
r e t a il s e llin g p rice (THSC, Monograph 1 , p* 62.)
J^/ Imports increased, but accounted for only a small fractio n o f domes
t i c consumption. (U, S. T a r iff Commission)
6/ The Index i s based on the p rices of n atio n ally advertised brands
and does not necessarily r e fle c t changes in discounts or in sales
at reduced p rices. Moreover, concealed p rice increases resulted
from necessary wartime substitutions in both ingredients and con
tainers and reduced-quantities per package.
a a
CD
- 62 Table
3
•; * ;
Salcs of toilct prcparations.
estimated from tax collcctions, 19^2-19^7 il
(In millions)
Month
: iq'42
Sotal
$ 310.7 $ 373-1
January
February
March
April
May
June
July
August
September
October
November
December
* 19^3
r\
2 1 .$
25.6
3 0 .2
20 .5
3 5 .H
2 1.1
20.9
2 1 ,-3 '
2 0 .S
•7*7
p { .VJ
25.7
31.3
25.7
$kl
25.5
2 7 .s
✓> •y
23 . 1
2 3.0
23.^
2 Ì .3
27.^
Uj.6
63.5
v
: 19 H i
y
• i9*+5
/
$ UoU.3
$ H60.7 $ H52.2
: iqUij.
t*
Uo.s
26.-0
35*®
2 7 .2
oc
¿0 .7f
?q .5
3 O .9
27-1
3 1.2
3 2 .6
3 5 .0
r
o".~[
r
3O
5H . 1
71 .It
3 2 .1
3 3 .7
33-9
3 5 .1
56.9
2 5 .1
3 5 .H
33-3
35.5
65.0
65.7 S of.
^^.K
29 .9
■
3 4 .1
31.5
33*0j
3S.5
3 2 .7 .
3 3 .1
Ho .3
39-1
37*3
32.5
38.3
3 1 .0
*41•d
55.9
Treasury Department, Divi sion of Tax B.es<earch
Source:
T.rcnasury Bulletin*
Sales are estimated from collections by■assuming that collections
for a specified month, are all derived frem salcs of the. preceding
month. Does not include amounts' paid xor .Federal excise taxes.
268
Table 4
Price indexes for medium priced and inexpensive face
powder and cleansing cream, 1935 - 1st, .quarter, 1947 if
(10*5 - 1939 = 1 0 0 )
: Face i: Cleansing ::
::
:
cream
:
' : powder ;
::
:
100.1
100,6
99.6
100.0
1935
1936
1937
1938
Month
and
year
Cleansin
;: Face
dream
!
; powder *
:
100.5
100.4
100.6
99.7
1943
1939
* March
June
September
December
99.2
99.2
99.2
99.2
99.1
99.1
99.1
98.0 x
March
June
September
December•
109.5
110,2
110.2
110.2
109.9
110.5
110.5
111.1
110.2
120.2
* 120,2
120,2
111.7
121.8
121.8
121,8
120.2
120.2
120.2
120.2
121.8
121.8
121. S
121.2
119.5
119,5
120.2
120.2
121.2
121.2
121.2
121.2
119.5
121.2
1944
1940
March
June
'September
December
99.2'
99.2
99.2
99.2
98.0
97.4
97 .4
97.4
March
June
September
December
March
June"
September
December
99.2
99.2
99.2
104.4
97.4
97.4
97,4
107.6
March
June
September
December
to a>
1945
1941
1946
1942
March
June
September’
December
109.5
109.5
109.5
109.5
108.7
109,3
109.3
109.3
March
June
September
December
to co w co
Month
and
year
1947
March
Treasury Department, Division of Tax Research
Source:
Bureau of Labor Statist ics.
if Indexes computed on basis of retail price including
Federal excise tax.
269
- 64 -
mors intensive use of exxsting facxlxtxes, rather than from new entrxes
into the "business* The scarcity of raw materials, especially glycerin
and ethyl alcohol and containers, made entry into the field difficult, 1/
Prom the information available on the structure of the industry
and the wartime changes in production and prices it would appear that
changes in demand would "be reflected partly in a change in the volume
of output and partly in price changes. There are indications that
producers of nationally advertised brands would tend to meet a reduc
tion in demand by making adjustments in supply rather than enter into
outright price cutting* Producers of non—advertised brands, on the
other hand, would tend to lower prices in response to a reduction in
demand.*
B*
Character of demand
The demand for toilet preparations arises primarily from the desire
to increase personal attractiveness.
Social attitudes have made the use
of these articles common among all income groups* Consumer expenditures
data for families with incomes below $5,000 indicate that purchases of
toilet preparations by the higher income groups are no greater in rela
tion to income than in the lower income groups* 2j These social and
expenditure patterns suggest that demand, cloes not vary proportionately
more than a given change in price.
During the war, demand rose sharply*
In part, this may have
represented an increased need for such articles because of the large
increase in social contacba and increased use by men in the armed
forces. The imposition of the higher rate of tax, effective April 1,
1944, does not seem to have affected sales to any appreciable extent.
Only for a few months of that year did sales fall below the same months
in 1943. (Table 2)
The effect of the tax may have been offset to
some extent by increases in income and. the decreased availabxlity of
other consumer goods* *$/ Nevertheless, the effect on sales was much
less apparent than in the case of the other retail excises.
if The number of corporation income tax returns from the drug and
toilet preparations industries decreased from 2,532 in 1940 to 2,379
in 1943.
(Statistics of Income, Part 2 ) ,
2/ See below, p. 66.
3/ The strong upward trend in the use of toilet preparations which
seems to have developed before the war may also have offset to
some extent the effect of the tax.
270
-
C.
65 -
Outlook for the industry
The industry was apparently able to satisfy most of the demand
during the war and since the wartime shortages in materials have
largely "been eliminated, it should he able to supply all products
of the quality desired by consumers. Although the capacity of the
industry is not determinable, there are no indications that facilities
have been expanded beyond the current level of demand.
As indicated above, some of the wartime expansion in demand
may have been abnormal. However, a strong upward trend in the use of
toilet preparations appears to have developed prior to the war.
Moreover, data on taxable sales in I9U 7 (Table 3 ) do not indicate
any substantial decline.
V.
Effects -of the tax
A.
On profits
Sales rose sharply during the war and although there was a
shortage of materials, the industry appeared to be able to meet most
of the demand. Prices remained practically stationary except for
increases due to the tax, but profits before taxes of three major
producers more than doubled. Xj The absence of pressure for revision
of ceiling prices would indicate that producers were generally satis
fied with their profit position. The'tax, therefore, does not seem
to have affected profits substantially.
Under high employment and income conditions this tax is not
expected to have a serious effect on the profits of the industry.
The apparent small effect of the increase in tax rate during the war
indicates that demand is not very responsive to price changes* The
trend for use of cosmetics, perfumes, toiletries, etc. is generally
upward. The reduction in purchases that does result from the tax
probably is not reflected in appreciably lower prices to producers.
The producers of national brands, which probably account for the bulk
of the business, presumably would attempt to curtail output in case
of .reduced purchases by consumers. The tax may stimulate price reduc
tions on non-branded products and thus lower the profits of such pro
ducers more than in the case of producers of nationally advertised articles
The sales and profits of retail dealers would also be affected by the
adjustments made by the producers of the different articles, but the
adjustments made at the retail level would vary depending upon competitive
conditions.
1/ Net income of the drug and toilet preparation manufacturers filing
corporation income tax returns increased from $51 million in 1939
to $226 million in 1943. (Statistics of Income. Part 2 )
L*
On business costs and competition
In general, most competing products appear to be included in
the tax; base,
Since most large producers have a fairly complete
line of products in different price ranges, the tax probably does
not introduce very serious adverse competitive effects among such
producers,
beauty shops and Oarber shops, which are large users of toilet
preparations, may have some difficulty in adjusting pi’ices to reflect
the increased cost arising from the tax* The amount of preparations
used is not a large proportion of the cost of the services and the tax,
the ref ore, cannot conveniently be added to the price.
Some adjustment
is possible through changes in the amount or kind of preparations used.
However, it is doubtful whether the full amount of the tax would be
reflected in adjustments of tfai s character and beauty and barber shops
may find it necessary under certain conditions to absorb the tax in
whole or in part, particularly during periods of low income.
C,
On consumers
Toilet preparations are included in the Consumere1 Price Index
of the Bureau of Labor Statistics, While expenditures for toilet
preparations are relatively unimportant Compared with the expendi
tures for axl items included in the Index, the price increase
resulting from the tax does increase the total Index slightly* 1/
On the basis of 19Ú1 family expenditures and income, the pro
portion of income spent for toilet preparations seems to be about
the same for all income groups under $5,000, g/ To the extent that
the tax^ is reflected in prices to consumers, it would appear to bear
as heavily on the low income groups as on the high income groups,
Pre-war data indicate that expenditures fluctuated somewhat less than
changes in disposable income»- ü/ Thus the tax has the effect of withdraw^
ing relatively less purchasing power from the income stream in periods of
high business activity than during periods of low business activity.
2J If the full amount of ’the tax is reflected
'
in prTces^thcTT ' d & h £ ' " ' :
“
would be increased by ,03 point,
2j Based on Bureau of Labor Statistics, "Family Spending and Saving in
Wartime," Bulletin Ho. 822, April 1945; Bureau of Agricultural
Economics, "Rural'Family Spending and Saving in Wartime," Miscellaneous
Publication Ho, 520, June 1943. P.epresents expend!tures for cold cream,?
powder, nail polish-and perfume,
3/ Department of Commerce data indicate that a 1-percent change in disposable income would result in a 0.6-percent change in expenditures.
- 67 VI.
272
Adm ini strati on and coiiipIian.ee
Approximately 150,000 returns are filed under this tax. However,
many of these taxpayers, such as department stores, do not file returns
solely "because of the toilet preparations tax, since they are required
to file returns under the other retail taxes, such as luggage, jewelry
and furs.
Record-keeping for taxpayers adds to the cost of compliance because
of the large number of sma,ll sales. This burden is also reflected in the
auditing of such records b y the Bureau of Internal. Revenue, especially
with respect to small stores. In order to minimize this difficulty, the
Bureau allows dealers to pay the tax on the full retail price of the
merchandise purchased at the time of the purchase.
Some difficulty arises in the determination of the items subject to
the tax, but most of the taxable items can be determined by checking
against a list, of taxable items prepared by the Bureau showing both type
of goods and brand name.
In this way, the taxable items have become
generally known to the trade.
VII.
Technical problems
The principal technical problems arising under this tax are:
A.
1.
The treatment of sales to beauty and barber shops.
2.
The definition of toilet preparations in certain
causes.
3.
The timing of a change in the tax rate so as to
minimize disturbance to the industry.
Treatment of sales to beauty and barber shops
Under the retail tax on toilet preparations there has been some
question regarding the treatment of sales to beauty and barber shops.
Some of these shops, particularly beauty parlors, purchase preparations
for resale to their patrons as well as for use in the business. Under
present law, purchases by such concerns for their own use are taxable at
the time of purchase; purchases for resale are taxable when resold or, if
used in the business, at the time the article is first set apart for
such use. l/ In administering these provisions the Bureau of Internal
Revenue ha„s required wholesalers or manufacturers making tax-free sales
to obtain evidence of intended resale, by securing exemption certificates
from the purchasers.
This requirement, which is commonly imposed under
the Federal retail excise taxes where sales are ma.de for resale, is con
sidered essential to the protection of the revenue, The industry has
objected to this reauirement on the grounds that the penalty clause in
the exemption certificate discouraged purchases for resale and hence pre
vents the promotion of sales to consumers through beauty and barber shops.
1/ The present provision was adopted in the Revenue ActT of 19i2~a-T the
suggestion of industry, Under the prior law all sales of toilet
preparations to beauty and barber shops were taxable. Resa.les to
consumers by such shops were also taxable, but on such sales a
credit was allowed equal to the amount of tax paid at the tine of
first sale to the beauty and barber shop.
~
273
- 6s Partly to meet this problem, it has “been suggested, that purchases
of toilet preparations by beauty and barber shops for their use be exempted
from the tax. 1./ This proposal assumes that if such purchases were ex
empted from tax, exemption certificates would not be, required on purchases
by beauty and barber shops for resale. However, the proposed change
would not necessarily eliminate the need for requiring exemption certifi
cates on such purchases. Where non-taxable and taxable sales are made
by the same person, it is necessary to establish administrative rules for the transactions involved in order to determine whether or not the articles
are disposed of as intended. This is the purpose of exemption certificates.^/
For this reason, exemption certificates on sales to beauty and barber shops
probably would be required under the proposed exemption. The exemption
certificates might be required on sales for use in the business or on both
types of sales, and in either of these cases all'shops would be involved,
whereas under present law only those making purchases for resale are re
quired to furnish certificates.
Another reason given for the proposed exemption is that the present
tax adds to the cost of operations of beauty and barber shops. As indicated
above, 3/ these shops may, under certain conditions, find it necessary
to absorb the tax in whole or in part. However, to the extent that the
patrons, of these shops would benefit from the exemption, it would be
inequitable from thé point of view of the home users of toilet preparations.
At the present time purchases for use by beauty and barber shops are ac
corded some advantage because they are taxed on the basis of the price
paid by the shops, which is usually substantially below the price of
toilet preparations .sold to consumers by retail dealers.
Jt*
The definition of toilet preparations
Claims for exclusion of certain products from the scope of the' tax
have been made on the basis that they have a medicinal, stimulating or
curative value. For example, baby oils and powders have been alleged
to be medical necessities for babies. However, where these products
are held out for use as toilet preparations, exemption would"afford
opportunity for widespread avoidance of the tax. It appears that such
products as baby oils are utilized primarily for their cleansing and
•skin softening effects. Moreover, they can be used by adults in the same
manner as other skin-conditioning and sun-tan oils and are advertised
for such use. The exemption of products of this character would place
»imony by «Joseph Reck, Counsel, Natxonal Bgauty and Barber
Manufacturers* Association, "before the Ways and Means Committee
June 10, 1947,
2/. The possibility of dispensing with exemption certificates by provid
ing that the articles be labeled to indicate whether they are for
resale has also been considered and found to be impracticable.
3./
p* 66 above.
69 manufacturers of other types of oils and powders at a competitive
di sadvantage.
Under the present statute, aromatic cachous are considered a
toilet preparation, hut only a few products are taxable under this
provision of the Act. They compete with products that are not
aromatic cachous and are not taxable.
This results in a serious
competitive disadvantage for these products.
C.
Timing of tax rate changes
Retail sales of toilet goods are highly seasonal, about 30 per
cent of the sales occurring in November and December. Advance notice
of a tax reduction during the peak sales period might result in
considerable postponement of buying and, perhaps, some permanent
loss of sales to the industry.
The tax reduction would result in
the minimum postponement of purchases if made at a time substantially
prior to or following the peak season.
Till.
Relative desirability of retail and manufacturers1 tax
Prom 1932 to 19^1 the tax on toilet preparations was levied at the
manufacturers’ level, but since the Revenue Act of 19^1 it has been
imposed on a retail basis. Principally because of the compliance burden
the retail tax imposes on drug stores, it has been suggested that the
tax again be levied at the manufacturers’ level. 1/ The manufacturers’
tax was changed to a retail tax in 19^1 because of the serious inequi
ties and administrative difficulties involved. Very substantial dif
ferences in tax resulted from the differences in organizational forms
and merchandising practices of different firms in the industry. Manu
facturers that produced a preparation and packaged it themselves had to
pay tax on the full value of the packaged product. On the other hand,
toilet preparations sold in bulk form to other firms for packaging were
taxable only on the value of the preparations. Under these conditions
packaging and merchandising costs, which in many cases represented a
high proportion of the value of the product, escaped the tax. The
G-overnment also encountered numerous problems in determining the basis
on which the tax was to be paid, and extensive litigation developed.
Although the retail form of tax involves a much larger number of tax
payers and imposes a substantial compliance burden, particularly on
small retailers, the administrative problems under the retail tax are
on the whole much less serious and the uniform retail price basis is
more equitable in its application to producers and sellers with varying
forms of business organization.
ly Testimony of George H. Rrates, Washington Representative of The
National Association of Retail Druggists, before the House Ways
and Means Committee, June 10, 19^-7•
g 74
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